44037-014: Shaanxi Weinan Luyang

Resettlement Plan

August 2018

PRC: Shaanxi Weinan Luyang Integrated Saline Land Management Project

Prepared by the Weinan Municipal Government for the Asian Development Bank. This is an updated version of the draft originally posted in August 2016 available on https://www.adb.org/sites/default/files/project-document/190362/44037-014-rp-04.pdf

NOTES (i) The fiscal year (FY) of the Government of the People’s Republic of China and its agencies ends on 31 December. “FY” before a calendar year denotes the year in which the fiscal year ends, e.g., FY2019 ends on 31 December 2019.

(ii) In this report, "$" refers to United States dollars.

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

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

Updated Resettlement Plan for the Shaanxi Weinan Luyang Integrated Saline Land Management Project

Project Number: 44037-014 August 2018

Loan 2980-PRC / Grant 0331-PRC: Shaanxi Weinan Luyang Integrated Saline Land Management Project

Prepared by Weinan Municipal Government for the Asian Development Bank. This is an updated version of the resettlement plan posted in August 2016 available on http://www.adb.org/sites/default/files/project-document/174073/44037-014-rp-04.pdf.

ADB Financed Project

Updated Resettlement Plan Of

Shaanxi Weinan Luyang Integrated Saline Land Management Project

Weinan Project Management Office August 2018

ENDORSEMENT LETTER

Notes on this RP Updating

L2980/G0331-PRC: Shaanxi Weinan Luyang Integrated Saline Land Management Project is supporting the WMG to implement environmental and social improvements in the Luyanghu area. The project comprises a $100 million loan (L2980), a $2 million grant (G0331) from the Global Environment Facility (GEF), and a $350,000 technical assistance (TA8293) grant for wetland and water bird management.

The RP (2012 version) was formulated in accordance with the data of project feasibility study report (FSR). The updated RP (2015 version) was based on preliminary design, which optimized the design of the original scheme and changed the data of the original feasibility study scheme. The RP was updated in 2016 to account for changes since the preliminary design stage.

According to the latest implementation progress and the cancellation/adjustment of some civil work packages following the detailed design, the LAR types and impact scope have changed compared with the updated RP (2016 version). Specifically, due to a separate government-funded program named Guanzhong Water Scheme (GZWS) in the project area, 3 civil works packages under the project (ADB-SS-CD-01-02 and -03, and ADB-SS- CW-02; total value $16.4 million) were canceled in December 2017 to avoid the conflict with the GZWS. For the same reason, the package ADB-SS-CW-07 has been decreased in the length of canal rehabilitation from 16.6km to 7km. Compared with the updated RP of 2016, the permanently occupied land of the project decreased from 5,501.72 mu to 4,516.98 mu, and land acquisition types, data of affected population, etc., have changed. Due to the changes of project scope and further identification of land ownership and impact category, affected cultivated land is decreased from 2,432.65 mu to 226.34 mu, whereas the amount of affected non-arable land such as wasteland and saline/alkaline land (salt pan) reduced from 3,069.07 mu to 2,892.71 mu.

Meanwhile, the Water Resource Bureaus of Pucheng County Government and Fuping County Government who directly manage the existing canals in project area, have now participated in the project implementation and played an important role for the land type identification and land compensation of canals under component 1.

As a result of the further identification of land ownership and impact category, it’s found that the identification of land type, land utilization manner and compensation arrangements under component 1 should be updated based on facts, relevant regulations and local practices of canals management.

Therefore, Weinan PMO has further updated the RP in 2018, with the assistance of resettlement specialist, to incorporate above mentioned changes.

This updated RP 2018 mainly covers further identification of land ownership, land utilization manner, LAR impacts, applicable compensation and resettlement policies, restoration measures, organizational structure, resettlement budget, resettlement implementation schedule, etc. See details in Table 1.

Table 1 Overview of the RP Updating

Information Original RP (2012) Updated RP (2015) Updated RP (2016) Updated RP (2018) Remarks on Updated RP 2018 Further identified the land ownership along the main and branch canals under Component 1 during this updating. The land along main and branch canals under Output 1 is identified as state-owned land as buffer zone. However, some farmer households have planted crops on these PLA (Collective land), lands in buffer zone for a long time. During PLA (Collective PLA (Collective Identification of land PLA (Collective land), SLO (State-owned land the dredging and rehabilitation of these land), land), types TLO occupation), and canals, the land in buffer zone will be TLO TLO TLO occupied for civil works. The Canals Management Office under water bureau is committed that the affected farmers can continue to plant crops after the completion of construction as usual as they did in past. Meanwhile, young crops compensation will be paid to affected HHs for the temporary loss of young crops during construction. 854 mu arable land 692 mu arable land 2432.65 mu arable land Changes due to the cancellation of some Area of collective land 226.34 mu arable land and and 1,733.8 mu and 1,895.8 mu and 3069.07 mu non- civil work packages and the further acquisition (mu) 2892.71 mu non-arable land non-arable land non-arable land arable land identification on land ownership and type. Area of State-owned land 1397.93 mu of the State- Further identification on land ownership No applicable No applicable No applicable Occupation (SLO) (mu) owned land occupation and type Affected 1,545 affected 1,455 affected 17,232 affected persons population/households 11,123 affected persons in AHs and APs decreased due to reduced persons in 365 persons in 343 in 3,698 affected due to land acquisition 2,344 affected households1 LAR scope. affected households affected households households and resettlement 4,864.27 mu arable 3,820.17 mu arable land and 2,843.33 land and 2,843.33 Area of temporarily 2,042.5 mu arable land 242.5 mu arable land and no TOL will be compensated and recovered mu non-arable land, mu non-arable land, occupied land (mu) and no non-arable land non-arable land by the contractors. 7,707.6 mu land in 6,663.5 mu land in total total

1 Many are affected by loss of young crops on state-owned land, see details in table 2-3.

Information Original RP (2012) Updated RP (2015) Updated RP (2016) Updated RP (2018) Remarks on Updated RP 2018 45 affected persons 45 affected persons and 10 affected and 10 affected 175 affected persons 175 affected persons and 35 Demolition impacts of households with households with and 35 affected affected households with Demolition of warehouse buildings used 2 temporarily buildings 955 m2 temporary 955 m2 temporary households with 19326 18326.62 m temporary for salt pan operation 2 building building m temporary building building No changes. cultivated land cultivated land compensation compensation CNY CNY 28500 yuan/mu in cultivated land cultivated land 28500 yuan/mu in Pucheng County, CNY 31063 compensation CNY compensation CNY Pucheng County, CNY yuan/mu in Fuping County, 27000 yuan/mu, 27000 yuan/mu, 31063 yuan/mu in compensation rates of salt pan compensation CNY salt pan salt pan Fuping County, salt pan collective land acquisition 5000 yuan/mu compensation CNY compensation CNY compensation CNY young crops compensation: 5000 yuan/mu 5000 yuan/mu 5000 yuan/mu CNY 1000yuan/mu in young crops Pucheng County and CNY compensation CNY 1,300 yuan per mu in Fuping 1000yuan/mu Young corps will be compensated during young crops compensation occupation of state-owned land along the CNY 1,000 yuan per mu in main and branch canals. After compensation rates of Pucheng County and CNY construction completion, famers are state-owned land No applicable No applicable No applicable 1,300 yuan per mu in Fuping allowed to continue planting crops on the occupation (SLO) County if there is loss of land in buffer zone as usual as they did in young crops past, and they promise to avoid any impact on the operation of canals. decreased due to the reduced physical CNY 87.963 million CNY 73.646 million CNY 105.28 million impacts and changes land utilization resettlement budget CNY 61.98 million yuan yuan yuan yuan manner

Executive Summary E1. Project Background

1. Shaanxi Weinan Luyang Integrated Saline Land Management Project is located on the north bank of the Weihe River and within the Pucheng County in the eastern Weinan City of Guanzhong Plain of Shaanxi Province. The Project is financed by ADB which consists of 4 Components: (1) Saline soils rehabilitation: including Rehabilitation of Luoxi drainage system and improved resilience to climate change of agro-ecosystems; (2) Flood risk management: improve flood storage capacity, prevent flood disaster, and ensure people’s life and property; (3) Wetland ecosystem conservation: improve and protect local wetland ecosystem; (4) Capacity development and project implementation support: institutional strengthening and project management support. The implementation period of the project was originally 5 years, that is, from 2013 to 2018, but extended to December 2020 in 2017. The total investment is 165 million dollars, of which, 100 million dollars is loan from ADB.

E2. Land Acquisition and Resettlement Scope

2. The land acquisition and resettlement (LAR) will affect 43 administrative villages, and 6 town/townships in Pucheng County and Fuping County, including a total of 2,344 households with 11,123 persons affected. Of the affected peoples, all of them will be affected by land occupation, in which 35 households with 175 persons will be affected by both land occupation and demolition of temporary buildings. 3. A total of 4,516.98 mu of land will be permanently occupied by the project, including acquisition of 226.34 mu of rural cultivated land and 2,892.71 mu of rural waste land, and 1,397.93 mu of the State-owned land occupation in the buffer zone of existing canals. 4. The project will involve demolition of 18,326.62 m2 of temporary building structures including brick concrete, brick-wood, earth wood housing, and simple house structures. All the buildings are non-residential utilized for warehouse or salt production. 5. No enterprises and public institutions or shops are involved in land acquisition and house demolition. In addition, scattered trees, poles, wires, tombs, enclosures, water wells and other ground ancillary facilities will be affected. In the implementation area of the project, no ethnic minorities are affected.

E3. Resettlement Principles and Entitlements

6. The updated resettlement plan (RP) is prepared according to the People’s Republic of China’s Land Administration Law (2004) and the related national, provincial, and municipal policies and regulations, as well as in compliance with ADB’s Safeguard Policy Statement (2009). On the basis of the above-mentioned regulatory and policy requirements and in consultation with local governments, the resettlement principles established for the project are that (i) land acquisition and involuntary resettlement should be avoided or minimized where feasible by developing and comparing a series of design alternatives; (ii) compensation be paid and other resettlement entitlements provided before physical or economic displacement. Compensation and entitlements provided must be adequate to allow those affected to at least maintain their pre-project standard of living, with the prospect of improvement; (iii) land temporarily occupied and the period for disruption are to be kept to a minimum; (iv) all affected persons (APs), titled and non-titled, and renters and/or contractors are to be taken into consideration; (v) RP should be prepared and implemented in accordance with state land rehabilitation policy, national economic and social development plans, and ADB’s SPS; (vi) all those affected will be adequately informed about eligibility, compensation rates and standards, livelihood and income restoration plans, and project timing; (vii) RP should be coordinated

i with regional development, economic development, and environmental protection; (viii) practical and feasible measures should be formulated to restore the affected items; (ix) a preferential policy and assistance will be provided to vulnerable groups in such things as employment; and (x) close monitoring and timely actions will be carried out to identify and resolve any problems.

7. According to Notice on Average Standard of Unified Annual Output Value and Integrated Land Price on Land Acquisition of Shanxi Province (2010) and Notice on Land Acquisition and Implementation Scheme for Ecological Environment Project, Dredging and Rehabilitation of Main Desalination Drainage Channels in Weinan Luyanghu Modern Industries Development Zone (2014), the compensation rates for the rural collective land compensation and resettlement allowance are: CNY 28,500 yuan (Pucheng County) or CNY 31,063 yuan (Fuping County) per mu for farmland, and CNY 5,000 yuan for waste land with salt pans. The compensation rate for young crops is CNY 1,000 yuan (Pucheng County) or CNY 1,300 yuan (Fuping County) per mu. According to the Notice on Land Acquisition and Implementation Scheme for Ecological Environment Project, Dredging and Rehabilitation of Main Desalination Drainage Channels in Weinan Luyanghu Modern Industries Development Zone (No.53 document issued on April 9, 2014 by the Office of Pucheng County Government), the compensation rates for farmers’ young crops losses in one year is CNY 1,000 yuan (Pucheng County) or CNY 1,300 yuan (Fuping County) per mu during the occupation of the State-owned land in buffer zone of canals, and the compensation for ground attachments will be paid accordingly if applicable.

8. According to replacement cost, the compensation standard of the buildings (simple structure) on the salt pans or along the channel is 500 yuan per square meter. People who work in salt pans can build new temporary buildings with original building materials.

E4. Resettlement and Restoration

9. Based on the socioeconomic survey and public participation on affected groups, APs’ livelihood restoration measures mainly include: (i) with monetary compensation, APs can engage in non-farming activities, such as transportation or small businesses or tourism services, etc., (ii) local governments will help APs to adjust agricultural planting structure, and provide planting instruction and technical trainings to expand greenhouse planting area, develop household level animal breeding industry, so as to improve economic incomes; (iii) during the project construction, the PMO will give priority to APs’ employment in the project and to provide nearby enterprises’ employment information, so as to increase their income sources; (iv) during APs’ livelihood restoration process, the PMO will organize APs to accept skill/technical trainings, and ensure all affected laborers receive at least one session of planting and/or non-farming technical training; and(v) local governments will help APs to apply for minimum living guarantee or pension insurance, to make poor families have guarantee on their future income. In addition, after construction completion of canals dredging and rehabilitation, affected famers are allowed to continue their plantation on the land in buffer zone as usual as they did in past, and they also promise to avoid any impact on the operation of these canals.

E5. Information disclosure and Public participation

10. As a vital social activity for land acquisition, resettlement and compensation, information and consultation should be well-prepared with the aim to make every affected person acquainted with the significance, processes, appropriation, compensation, appeal and the way of settlement and problems existing in the project construction and consultation shall be carried on in advance.

11. From 15 May, 2012 to the middle of 2018, 20 significantly affected villages held villager representatives meetings to discuss and confirm the resettlement policy and compensation rates in the RP. The final updated RP will be printed and distributed to affected villages and posted on the website of ADB.

E6. Complaints and Grievances

12. During the preparation of the RP, public participation was encouraged. However, there could be some unforeseen issues during implementation despite such process. In order to effectively settle the issues and ensure the smooth implementation of the Project construction and land acquisition, an effective and transparent channel for lodging complaints and grievance has been established. The aim is to respond to appeals of the APs timely and transparently. Grievances about the Project may be from permanent or temporary land occupation. Correspondingly, the PMO, PIO, resettlement implementing agency, and the affected town governments and village committees will coordinate and handle grievances and appeals arising from resettlement. The APs may file appeals about any aspect of resettlement, including compensation rates. All complaints and their resolution will be recorded by the PMO.

E7. Organization Structure

13. The Executing Agency (EA) of the project is Weinan Municipal Government (WMG). The implementation agency is the Weinan Luyanghu Modern Industrial Development Zone Management Committee. The IA has set up a project management office (PMO), which is in charge of organizing, applying for ADB’s loan, coordinating LAR, monitoring and inspecting the payment of usage of the compensation for land acquisition and resettlement. WMG has established a leading group for land acquisition and resettlement (LAR) to organize and implement the LAR.

E8. Budget for land acquisition and resettlement

14. All the cost incurred during land acquisition and resettlement is included in the total budget of the project. In the general budget, direct resettlement costs include compensation for PLA, TLO, the demolition of temporary building and ground attachments, as well as planning and monitoring costs, administrative costs, training costs and contingencies, etc.

15. The general resettlement budget of the Project is CNY61.98 million yuan, including compensation for rural land acquisition of 49.635 million yuan or 80.08% of the budget, compensation fees for temporary land occupation of 0.630 million yuan or 1.02% of the budget, land taxes of 4.02 million yuan or 6.49% of the budget, indirect costs of 7.44 million yuan or 12.00% of the budget.

E9. Implementation Schedule

16. The project construction commenced in 2015. Land acquisition and resettlement commenced in April 2014 and most of the resettlement activities will be completed by 2019. However, rehabilitation of livelihoods may take longer to complete. The PMO has set milestones to ensure timely and effective implementation of the resettlement activities.

E10. Monitoring and Evaluation

17. Detailed requirements for both the internal and external monitoring and evaluation

iii

(M&E) are included in the RP. The PMO will submit an internal monitoring report semiannually to ADB. Furthermore, the PMO engaged an independent external resettlement monitoring agency Shaanxi Kexin Consulting Company to undertake external monitoring of the RP implementation from 2015 until the end of 2017. The PMO intended to engage the Northwest A&F University to conduct the external resettlement monitoring and evaluation from August 2018 onwards, and the communication and agreement process is underway. A baseline study was conducted before the LAR began and the first monitoring report was submitted in July 2015. Until project completion, semi-annual monitoring reports will be prepared and submitted for ADB’s review. After completion of the LAR, annual evaluation reports will be submitted to ADB for 2 years or longer if there are any remaining issues.

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

ABBREVIATIONS

ADB Asian Development Bank AP Affected Person AH Affected Household DMF Design and monitoring framework EA Executing Agency FGD Focus group discussion FSR Feasibility Study Report GEF Global Environment Facility GZWS Guanzhong Water Scheme HH Household IA Implementation Agency LAR Land Acquisition and Resettlement LNWP Luyanghu National Wetland Park LEF land-expropriated farmer M&E monitoring and evaluation MIS management information system PAM project administration manual PIO project implementation office PLG project leading group PMC project management consultant PMO project management office PPMS project performance monitoring system PRC People’s Republic of China SGAP social and gender action plan SPG Shaanxi provincial government SPS Safeguard Policy Statement TA technical assistance WRB Water resource bureau WFB Weinan finance bureau WLMIDZMC Weinan Luyanghu Modern Industry Development Zone Management Committee WMG Weinan municipality government

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 Renminbi YUAN currency unit

NOTES (i) The fiscal year of the Government of the People’s Republic of China and its agencies ends on 31 December. (ii) In this report, "$" refers to US dollars.

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

CONTENTS

Notes on this RP Updating ...... i Executive Summary ...... i 1 PROJECT OVERVIEW ...... 1 1.1 Background and Description of the Project ...... 1 1.1.1 Background of the Project ...... 1 1.1.2 Components and Identification of Resettlement Impacts ...... 1 1.1.3 Summary of Resettlement Impacts ...... 6 1.2 Social and Economic Benefits from the Project ...... 6 1.3 Estimated Resettlement Budget and Implementation Plan ...... 7 2 PROJECT LAR IMPACTS ...... 8 2.1 Types of LAR Impacts ...... 8 2.2 Methodology and Procedures in identification and assessment of LAR impacts ...... 8 2.3 Permanent Land Occupation ...... 9 2.4 Temporary Land Occupation ...... 16 2.5 Demolition of Rural Temporary Buildings ...... 17 2.6 Affected Vulnerable Groups ...... 17 2.7 Affected Women ...... 18 2.8 Affected Infrastructure and Ground Attachments ...... 18 3 SOCIOECONOMIC ANALYSIS OF AFFECTED AREA ...... 19 3.1 Socioeconomic Profile of the Project Area ...... 19 3.1.1 Socioeconomic Profile of the Affected Counties ...... 19 3.1.2 Socioeconomic Profile of the Affected Towns ...... 19 3.1.3 Socioeconomic Profile of the Affected Villages ...... 19 3.2 Socioeconomic Status of the Affected Population (2016) ...... 20 3.2.1 Analysis of Household and Female Population ...... 20 3.2.2 Age Structure ...... 20 3.2.3 Educational Level ...... 21 3.2.4 Housing Conditions ...... 21 3.2.5 Household Income and Expenditure ...... 21 3.3 Social and Gender Analysis ...... 23 4 LEGAL FRAMEWORK AND POLICIES ...... 24 4.1 Laws, Regulations and Policies Applicable to Resettlement ...... 24 4.2 Abstract of ADB Policies ...... 25 4.3 Main Differences Between ADB Policy and PRC Laws ...... 27 4.4 Cut-Off Date of Compensation ...... 27 4.5 Compensation Rates ...... 28 4.5.1 Compensation Rates for Acquisition of Collective Land ...... 28 4.5.2 Compensation Rates for Affected Young Crops during the State-owned Land Occupation ...... 29 4.5.3 Compensation Rates for Temporary Land Occupation ...... 29 4.5.4 Compensation Rates for Rural Temporary Buildings ...... 30 4.5.5 Compensation Rates for Attachments and Infrastructure ...... 30 4.5.6 Rates of Other Costs ...... 31 4.5.7 Vulnerable Groups ...... 31 4.6 Entitlement Matrix ...... 32 5 RESETTLEMENT AND INCOME RESTORATION ...... 36 5.1 Resettlement Objectives ...... 36

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

5.2 Principles for Resettlement and Restoration ...... 36 5.3 Restoration Programs of Collective Land Acquisition ...... 36 5.3.1 Cash compensation (CNY/per mu) and distribution ...... 36 5.3.2 Agricultural improvement ...... 37 5.3.3 Employee Engagement ...... 37 5.3.4 Training ...... 38 5.3.5 Social security system ...... 38 5.4 Restoration Program for State-owned Land Occupation ...... 38 5.5 Restoration Program for Temporarily Occupied Land ...... 41 5.6 Compensation for Temporary Building Demolition ...... 41 5.7 Resettlement Program for Infrastructure and Ground Attachments ...... 42 5.8 Assistance Measures for Vulnerable Groups ...... 42 5.9 Protection of Women’s Rights and Interests ...... 42 6 PUBLIC PARTICIPATION AND GRIEVANCE REDRESS ...... 44 6.1 Public Participation ...... 44 6.1.1 Completed Public Participation Activities at Project Preparation and RP Preparation and Updating Stages ...... 44 6.1.2 Participation Plan at the Project Implementation Stage ...... 48 6.2 Grievances and Appeals ...... 49 6.2.1 Grievance Redress Mechanism ...... 49 6.2.2 Recording, Tracking and Feedback of Grievances and Appeals ...... 50 6.2.3 Contact Information for Grievances and Appeals ...... 50 7 ORGANIZATION STRUCTURE AND RESPONSIBILITY ...... 51 7.1 Resettlement Implementing Agencies ...... 51 7.2 Assignment of Responsibilities ...... 51 7.3 Staffing and Equipment ...... 53 7.3.1 Staffing ...... 53 7.3.2 Equipment ...... 54 7.4 Capacity Enhancing Measures of Resettlement Agencies ...... 54 7.4.1 Resettlement management staff training plan ...... 54 7.4.2 Measures for improving resettlement agencies ...... 54 8 RESETTLEMENT BUDGET ...... 56 8.1 Estimated Budget ...... 56 8.2 Annual Investment Plan ...... 57 8.3 Disbursement and Management of Resettlement Funds ...... 57 8.3.1 Management of Resettlement Funds ...... 57 8.3.2 Disbursement of Resettlement Funds ...... 57 9 RESETTLEMENT IMPLEMENTATION PLAN...... 59 9.1 Principles for Resettlement Implementation ...... 59 9.2 Resettlement Implementation Schedule ...... 59 10 MONITORING AND EVALUATION ...... 61 10.1 Internal Monitoring ...... 61 10.1.1 Scope of Internal Monitoring ...... 61 10.1.2 Methodology of Internal Monitoring ...... 61 10.1.3 Interval and Reporting of Internal Monitoring ...... 62 10.2 External Monitoring ...... 62 10.2.1 Scope and Methodology of External Monitoring ...... 63 10.2.2 External Monitoring Reporting ...... 64 10.3 Post-Resettlement Evaluation ...... 64 APPENDIXES ...... 65

III

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

List of Tables Table 1 Overview of this update ...... i Table 1-1 Basic Information of the Project ...... 2 Table 1-2 Summary of Resettlement Impacts ...... 6 Table 2-1 Permanent land occupation impact breakdown according to packages ...... 10 Table 2-2 Summary of Land Occupied Permanently for the Project ...... 12 Table 2-3 PLO Impact by Land Type and Affected villages ...... 14 Table 2-4 Land Loss Rate Distribution of Affected Households ...... 16 Table 2-5 Temporary Land Occupation for the Project ...... 16 Table 2-6 Temporary Building Demolition for the Project ...... 17 Table 2-7 Details of affected vulnerable groups ...... 17 Table 2-8 Summary of Affected Ground Attachments ...... 18 Table 3-1 The Social and Economic Situation of the Affected Towns (2016) ...... 19 Table 3-2 The Social and Economic Situation of the Affected Villages (2016) ...... 20 Table 3-3 Sample Households Income and Expenditure (in 2016 year) ...... 23 Table 4-1 Compensation rate for acquired collective land ...... 28 Table 4-2 Compensation rate for temporary building ...... 30 Table 4-3 Replacement cost analysis on temporary building ...... 30 Table 4-4 Compensation Standards for the Ground Attachments ...... 31 Table 4-5 Rates of Resettlement Taxes and Fees ...... 31 Table 4-6 Entitlement Matrix ...... 33 Table 5-1 Direct Created Jobs by the Project ...... 37 Table 5-3 Summary of Skill Training Plan ...... 38 Table 6-1 Summary of Public Opinions (2016) ...... 47 Table 6-2 Public Participation Plan ...... 48 Table 6-3 Registration Form of Grievance and Appeals ...... 50 Table 6-4 Agencies Accepting Grievances ...... 50 Table 7-1 Staffing of Resettlement Agencies ...... 53 Table 8-1 Resettlement Budget ...... 56 Table 8-2 Annual Resettlement Investment Plan ...... 57 Table 9-1 Resettlement Milestones ...... 59 Table 10-1 Sample Schedule of Resettlement Progress ...... 61 Table 10-2 Sample Monitoring Form ...... 62 Table 10-3 Reporting Schedule of External Monitoring & Evaluation ...... 64

List of Figures Figure 1-1 Construction Sites for the Project in 2016 ...... 4 Figure 1-1 Construction Contents of the Project in 2018 ...... 5 Figure 2-1 General Main Channel before rehabilitation ...... 15 Figure 2-2 Linji Branch Channel before rehabilitation ...... 16 Figure 3-1 Age Distribution ...... 21 Figure 3-2 Education Distribution ...... 21 Figure 4-1 LAR information disclosure and cut-off date announcement ...... 28 Figure 4-2 Meeting minute of the establishment of rehabilitation fund for vulnerable groups ...... 32 Figure 5-1 Statement on Land utilization manner for the canals rehabilitation and Commitment of agricultural production after civil works completion by Canals Management Station ...... 41 Figure 6-1 The meeting minutes in Luyang Village on canals rehabilitation ...... 45 Figure 6-2 The meeting minutes in Zhulei Village on canals rehabilitation ...... 45 Figure 6-1 Appeal and Complaint Procedures ...... 50 Figure 7-1 Organization Chart of the Relevant Resettlement Implementation Agencies ...... 51 Figure 8-1 Flowchart of Resettlement Fund Disbursement ...... 57

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

1 PROJECT OVERVIEW 1.1 Background and Description of the Project 1.1.1 Background of the Project

1. In 2009, the State Council of People’s Republic of China (PRC) approved the Guanzhong Tianshui Economic Zone to strengthen the development of the western region. Weinan Municipality, located in the east of Guanzhong Plain, is striving to improve local livelihoods and environment, attract high-tech industrial investment, promote local tourism, and create job opportunities in the Luyanghu area. Shaanxi Weinan Luyang Integrated Saline Land Management Project (L2980/G0331-PRC) supports the Weinan Municipality in implementing natural environment and rural livelihoods improvements for the Luyanghu area. The project area is within the Weinan Municipality, Shaanxi Province. The resident population of Weinan is 5.38 million and the area is 13,100 km2. The transport is convenient with the area, which is called a main cross of Shaanxi connecting with eight provinces. In 2017, the GDP of Weinan was CNY 165.66 billion, an increase of 8.3% over the previous year. The three industries increased 4.8%, 9.5% and 8.2% respectively. The disposable income per capita of the urban residents in Weinan was CNY 29808 yuan, rising CNY 2323 yuan. The net income per capita of the rural residents was CNY 10260 yuan, rising CNY 845 yuan. The two figures are a bit lower than those of Shaanxi Province.

2. Specifically, the Project is constructed in Weinan Luyanghu Modern Industrial Development Zone (WLMIDZ), which consists of 7 towns in Pucheng County and Fuping County with an area of 124.24 km2. It’s a young development zone approved by Shaanxi Province Government in August 2007, and the population is about 64.3 thousand in 35 villages. WLMIDZ is surrounded by a tableland area, flat and open, with deep soil, sufficient light and heat resources as a traditional agricultural growing area. From the 1960s onwards, in order to solve the irrigation and drainage of the area, the central and local governments have invested in the Longyang pumping irrigation area, Luohui west irrigation area, Qunying pumping irrigation area, Donglei Phase II Yellow River pumping irrigation area. According to the topographical features and disaster situations, they have built the Luoxi drainage system for Lubo Shoal and the return water works in irrigation area and other water conservancy facilities, playing an important role in the promotion of regional agricultural production. Low-lying terrain, occlusion, and poor drainage are the main reasons to cause the soil salinization in WLMIDZ, which is the obstacle of the local socioeconomic development and environment protection.

1.1.2 Components and Identification of Resettlement Impacts

3. The project comprises of four outputs: (i) saline soils rehabilitated; (ii) flood risk management implemented; (iii) wetland ecosystem conservation established, comprising (a) support for LNWP development, and (b) promotion of tourism, livelihood, and employment opportunities for local communities; and (iv) capacity development and project implementation support provided. The construction area can be seen in Figure 1-1.

Output 1 Saline soils rehabilitated will reduce soil salinity over approximately 212 km2 and increase productivity and climate resilience of approximately 186 km2 of agricultural land. It has two components: (i) rehabilitation of Luoxi drainage system, and (ii) support for improving resilience to climate change of agro-ecosystems. Output 2 Flood risk management implemented will improve flood storage capacity of Luyanghu area to reduce flood risks to local residents. It includes (i) construction of Tianlu lake (approximately 130 ha), connecting Tianjiao lake in the west, a middle main channel, and a central main channel; and (ii) construction of approximately 18.6 km of dike with road around Tianlu lake. The integrated and innovative approach combining flood risk management with

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project drainage system rehabilitation and wetlands ecosystem conservation will contribute to reduced flood risk for the Luyanghu area. Output 3 Wetland ecosystem conservation established has two components: (i) support for LNWP development; and (ii) promotion of tourism, livelihood, and employment opportunities for local communities. The wetlands conservation will reverse ecosystem degradation caused by agricultural encroachment and other pressures associated with the increasing population within the project area. Output 4 Capacity development and project implementation support provided has two components: (i) institutional strengthening, and (ii) project management support during project implementation. The first will support capacity development and training of WMG and WLMIDZMC staff in ADB project management procedures, technical design and implementation, and safeguard supervision and monitoring.

4. The project and the GEF grant were approved on 17 December 2012. The investment cost of the Project is estimated at $165.2 million, of which $100 million is from the ordinary capital resources of ADB. The Weinan Municipal Government also received a $2 million grant from the land degradation focal area of the Global Environment Facility (GEF) to support the work on sustainable land management. A summary profile of the Project is listed in Table 1-1.

Table 1-1 Basic Information of the Project 1 Country People’s Republic of China (PRC) 2 Grant No. 0331-PRC 3 Loan No. 2980-PRC 4 Project Shaanxi Weinan Luyang Integrated Saline Land Management Project 5 Borrower Ministry of Finance of the PRC Weinan Municipal Government (WMG) 6 Executing Agency A PMO formed to act on behalf of the WMG Weinan Luyanghu Modern Industrial Development Zone Management Implementing 7 Committee (WLMIDZMC) Agency A PIO formed to act on behalf of the WLMIDZMC 8 Total Estimated Cost USD 165.2 million 9 ADB Loan USD 100 million Source: ADB website.

5. The main types of resettlement impacts of the Project are collective land acquisition, state- owned land occupation, temporary land occupation and the demolition of temporary buildings. All the land acquisition and resettlement (LAR) impacts are induced by the Component 1 Saline Soils Rehabilitation and Component 2 Flood Risk Management.

6. The Project is categorized as A for involuntary resettlement following the criteria laid out in the Safeguard Policy Statement (SPS 2009). To mitigate negative impacts of economic and physical displacement, the Project prepared a draft resettlement plan (RP) during project preparation phase in 2012. Based on the preliminary design and DMS conducted in April 2015, an updated RP was submitted to ADB for review in August 2015 and the updated RP was approved by ADB and uploaded on the website of ADB in September 2015. In March 2016, the RP was updated again in July 2016 based on the detailed design. However, the updated RP in 2016 could not accurately estimate land acquisition data for the rehabilitation of Luoxi drainage system under the Component 1 since the Land Bureau of Weinan Luyanghu Modern Industry Development Zone Management Committee lacked the direct administration power of affected towns and villages and it had inaccurate land ownership database. Further, due to the conflict with Guanzhong Water Scheme (GZWS) some packages in Component1 changed or cancelled resulting in significant changes in impacts on LAR. Hence, the RP has been

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project updated again in 2018 based on the reduced LAR scope due to the cancellation of some contracts and changes in land use types.

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Figure 1-1 Construction Sites for the Project in 2016

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Figure 1-2 Construction Contents of the Project in 2018

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

1.1.3 Summary of Resettlement Impacts

7. According to the latest updated LAR data in 2018, the construction of saline land rehabilitation in Component 1 and Tianlu Lake with a total of 7 km dike and road in Component 2 will incur permanent land occupation of 4,516.98 mu, including acquisition of 226.34 mu of rural cultivated land and 2,892.71 mu of rural waste land, as well as occupation of 1,397.93 mu of the State-owned land in the buffer zone along existing canals; and demolition of 18,326.62 m2 of temporary buildings. The saline land rehabilitation of Component 1 will incur temporary land occupation (TLO); and the total amount of TLO will be 242.5 mu. The wetland ecosystem conservation of Component 3 will not involve land acquisition and resettlement (LAR). A total of 11,123 persons in 2,344 households will be affected by land occupation and demolition of rural temporary buildings. The affected areas include 41 villages in 5 towns of Pucheng County and 2 villages in 1 town of Fuping County, Weinan Municipality. Based on the previous survey, there is no ethnic minority affected within the project area.

Table 1-2 Summary of Resettlement Impacts County Pucheng Fuping Amount Towns 5 1 6 Villages 41 2 43 Subtotal 3119.05 0 3119.05 Collective Where: cultivated land Permanent land 226.34 0 226.34 Land Acquisition Non-cultivated land Occupation 2892.71 0 2892.71 (mu) State-owned land Occupation (SLO) 1219.93 178 1397.93 Total 4338.98 178 4516.98 Temporary Construction and workers’ camp 57 0 57 land Construction road occupation 118.35 0 118.35 (mu) Site for spoil from main canals 67.15 0 67.15 Total 242.5 0 242.5 HD(m2) Temporary building demolition 18326.62 0 18326.62 HHs 2124 220 2344 LA Population 10167 956 11123 Demolition of rural HHs 35 0 35 temporary buildings Population 175 0 175 Directly HHs 35 0 35 affected Both LA and HD Population population 175 0 175 HHs 2124 220 2344 Subtotal Population 10167 956 11123 HHs 2124 220 2344 Total Population 10167 956 11123 Source: Detailed Measurement Survey (DMS).

1.2 Social and Economic Benefits from the Project

8. Improvement of soil salinity will increase farmers’ income. After this project is completed, the existing visible water elevation will be reduced a lot, and the groundwater level within the area will be significantly reduced, to make the saline soil effectively controlled. More than 50,000 farmers will benefit from the management. 6

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

9. Prevention of waterlogging will protect people’s lives and property. The masses in the shoal area and downstream of irrigation area suffered from heavy losses in life and production. Once the project is completed, it will prevent waterlogging, effectively eliminate the hazards of floods in Xihan Railway, Xiyu Expressway, Weipu Expressway and Weiqing Highway and other important transportation routes, so as to ensure the safety of people's lives and property, to promote harmonious development and social stability in economic and social development of the drainage area, and to play its regional resource advantages. The service area of this Project is 418km2, and 144 villages of 10 towns in Pucheng and Fuping County will be benefited from it.

10. Restoring of the wetland ecosystem and laying the foundation for the development of tourism and other industries. The project is planned, through returning low quality fields or wasteland to lakes, construction of artificial wetlands and recovery measures for wetland ecology, etc., to protect and recover the Luyang Lake wetland ecological system, so that wetlands can effectively bring about a variety of ecological, economic and social benefits in flood storage and alkali removal, water conservation, purification of water quality, landscaping and provision of wetland. Meanwhile, by taking full advantage of existing tourism resources in the project area, Luyang Lake wetland will be built as an important eco-tourist attraction in Shaanxi Province.

11. Complying with the regional development planning. The construction objectives of this project are fully consistent with the Planning for Development of Guanzhong - Tianshui Economic Zone. Luyang Lake is located in the central hinterland of the Eurasian Continental Bridge, a link to connect Guanzhong - Tianshui Economic Zone with the Comprehensive Experimental Zone for Coordinated Development of Shanxi, Shaanxi and Henan Yellow River Golden Triangle Region. After the completion of the project, it will greatly improve the Luyang Lake’s ecological environment, greatly enhance the environment for the development of agriculture, tourism, commerce, services in the project area, and strengthen the Luyang Lake’s tie function and radiation effects in the above regions.

1.3 Estimated Resettlement Budget and Implementation Plan

12. The estimated resettlement costs of the Project are CNY CNY61.98 million yuan, accounting for 5.69% of gross investment, all from domestic counterpart funds.

13. The Project loan became effective on June 27, 2013. It was planned originally to be completed on June 30, 2018, with a construction period of 60 months. Due to the slow progress, the loan closing date has been extended to 31 Dec 2020. Up to the middle of 2018, 2 packages of Component 1 and 5 packages of Component 2 are completed or under construction. The LA and HD commenced from April 2014 and will substantially complete in 2019.

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

2 PROJECT LAR IMPACTS 2.1 Types of LAR Impacts

14. According to the field survey and analysis, the LAR impacts of the project are categorized as: • Land acquisition / occupation loss; • Temporary building demolition loss; and • Other direct and indirect impacts.

2.2 Methodology and Procedures in identification and assessment of LAR impacts

15. In April 2012, the WLMIDZC appointed Design Institute to prepare the Feasibility Study Report of the Project. During September-October 2012, the survey team of Shaanxi Academy of Social Sciences conducted a survey on the socioeconomic profile of the project area, and resettlement impacts according to the Feasibility Study Report, and a sampling socioeconomic survey covering household population, impacts of LA, household economic status, and expected resettlement modes. The main survey methods were as follows: (i). Door-to-door questionnaire survey: A door-to-door questionnaire survey was conducted in the project area, with the aim of: (1) learning the potential positive and negative impacts of the Subproject; (2) learning local residents’ attitude to, expectations for and suggestions on the Subproject; and (3) learning the public participation and opinions of local residents. (ii). Focus group discussion (FGD): The aim was to: (1) collect the APs’ awareness of, attitude to and expectations for the Subproject; and (2) learn the main modes of information disclosure in the affected towns and villages, and promote public participation. 3 town-level FGDs were held, including one FGD with women and two ordinary FGDs. (iii). In-depth interview: The aim was to further learn the APs’ production and living conditions, positive and negative impacts of the Project on them, potential risks, and their attitude to, expectations for and suggestions on the Project. Women, old people, and staff members of public institutions were interviewed in depth. (iv). Key informant interview: Key informant interviews were conducted with heads of the women’s federation, poverty reduction office, ethnic and religious affairs bureau, land and resources bureau, LA and HD management office, civil affairs bureau, statistics bureau, and labor and social security bureau at the county level, and village heads at the village level, with the aim of learning the stakeholders’ comments and suggestions on the Subproject.

16. During May-June 2016, the task force conducted a supplementary survey on the Project area based on the land ownership identified by Land Bureau of Weinan Luyanghu Modern Industry Development Zone Management Committee and LAR impacts during implementation.

17. During May-July 2018, the PMO, assisted with the Water Resources Bureau and Land Bureau of Pucheng County, held a series of villagers meeting in the affected villages in terms of the canals rehabilitation, land ownership, land utilization manner and applicable compensation policies. Through the consultation, the key findings are as follows:

1) Almost all villagers knew that the current status of the canals were poor and the agricultural production was not good due to poor irrigation systems. It’s widely agreed that the project’s implementation of the canals rehabilitation would benefit directly and significantly the local areas and HHs. 2) The villagers and village committees acknowledge the buffer zone boundaries of canals, which were the state-owned land alongside the main canals and branch canals. 3) Some crops currently cultivated by the APs in the scope of buffer zone will be affected by the canals rehabilitation temporarily during civil works, and the farmers’ young crops losses will be compensated as per relevant regulations and local practices.

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

4) When the canals rehabilitation completed, the Canals Management Office under water bureau is committed that the affected farmers can continue to plant crops as usual as they did before, and local farmers also promise to avoid any impact on the operation of these canals.

2.3 Permanent Land Occupation 18. Due to the civil works of Component 1 Saline Soils Rehabilitation and Component 2 Flood Risk Management, the Project will occupy 4516.98 mu land and demolish temporary building in saltpan or along the branch sides. The details can be seen in Table 2-1.

19. The land to be occupied includes collective land in Pucheng County and Fuping County and state-owned land in the buffer zone along cannels (but partly cultivated by local farmers in a long period), involved 43 villages in 6 towns. The details can be seen in 20. Table 2-2.

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Table 2-1 Permanent land occupation impact breakdown according to packages Component/Package Description Sub-package Status Impact Area (mu) A. Works (13 packages) 4516.98 I. Saline Soils Rehabilitation (8 packages) 1676.27 ADB-SS-CD-01-01 Completed PLA2 221.34 ADB-SS-CW-01 Rehabilitation of Central Main ADB-SS-CD-01-02 Cancelled SLO 0 ADB-SS-CD-01-03 Cancelled SLO 0 Rehabilitation of Branch and Secondary Branch under SLO ADB-SS-CW-02 Cancelled 0 the Central Main ADB-SS-CW-03 Rehabilitation of East Main and its Secondary Branch Under construction PLA & SLO 134.61 ADB-SS-CW-04 Rehabilitation of Middle Main and its Secondary Branch Under construction PLA & SLO 99.32 ADB-SS-CW-07 Rehabilitation of West Main and its Secondary Branch Contract to be awarded SLO 478 ADB-SS-CW-08-01 Contract to be awarded SLO 70 Rehabilitation of West Main including structures, ADB-SS-CW-08 ADB-SS-CW-08-02 Contract to be awarded SLO 506 management office, and on-farm works ADB-SS-CW-08-03 Contract to be awarded SLO 167 GEF-SS-CW-09 Saline Soil management Ongoing No LAR 0 GEF-SS-CW-10 Shelter belt establishment Ongoing No LAR 0 II. Flood Risk Management (3 packages) 2840.71 ADB-FM-CW-01-01 Pre-project 0 ADB-FM-CW-01 Excavation of Tianlu-Tianjiao Lakes Connection Completed ADB-FM-CW-01-02 acquired 0 ADB-FM-CW-02-01 Completed PLA 358.5 ADB-FM-CW-02-02 Completed PLA 395 ADB-FM-CW-02 Excavation of Tianlu Lake ADB-FM-CW-02-03 Completed PLA 439 ADB-FM-CW-02-04 Completed PLA 320 ADB-FM-CW-02-05 Completed PLA 300 ADB-FM-CW-03 Construction of lake road and dike Contract to be awarded PLA 1028.21 III. Wetland Ecosystem Conservation (2 packages)

2 The excavation width of Central Main is about 40 meter, which goes beyond the buffer zone boundary of main canals, therefore this package acquired the collectively land for construction. 10

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Component/Package Description Sub-package Status Impact Area (mu) ADB-WE-CW-01 Construction of Wetland Management Facilities Ongoing No LAR 0 GEF-WE-ME Wetland Management Ongoing No LAR 0 B. Goods (2 packages) I. Saline Soils Rehabilitation (1 package) ADB-SS-ME-01-01 Shopping No LAR 0 ADB-SS-ME-01 Office equipment for management offices ADB-SS-ME-01-02 No bidding No LAR 0 ADB-SS-ME-01-03 No bidding No LAR 0 II. Wetland Ecosystem Conservation (1 package) ADB-WE-ME-01 Equipment for Public Education Ongoing No LAR 0 C. Consulting Services (8 packages) I. Saline Soils Rehabilitation (5 packages) GEF-SS-CS-01 Soil Management Specialist Ongoing No LAR 0 GEF-SS-CS-02 Rural Business Development Specialist Ongoing No LAR 0 GEF-SS-CS-03 Eco-compensation Specialist Ongoing No LAR 0 GEF-SSTS-01 Field Schools Establishment Ongoing No LAR 0 GEF-SSTS-02 Alternative Livelihoods Ongoing No LAR 0 II. Wetland Ecosystem Conservation (1 package) GEF-WE-CS-01 Wetland Management Specialist Ongoing No LAR 0 III. Capacity Development (2 packages) ADB-CD-CS-04 Project Management Consultants Ongoing No LAR 0 GEF-CD-CS-01 Monitoring and Evaluation Specialist Ongoing No LAR 0 D. Training and Study Tours (6 packages) IV. Capacity Development (6 packages) ADB-TS-TST-01 Training on drainage system management skills Preparation No LAR 0 ADB-TS-TST-02 Training wetland management skills Preparation No LAR 0 ADB-TS-TST-03 Overseas study tour on saline soil improvement Preparation No LAR 0 ADB-TS-TST-04 Overseas study tour on wetland management Preparation No LAR 0

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Component/Package Description Sub-package Status Impact Area (mu) ADB-TS-TST-05 Domestic study tour on saline soil improvement Preparation No LAR 0 ADB-TS-TST-06 Domestic study tour on wetland management Preparation No LAR 0 Note: PLA= permanent land acquisition (of rural land); SLO= state-owned land occupation.

Table 2-2 Summary of Land Occupied Permanently for the Project Pucheng County Fuping County Rural State- Rural No. of State- PLO Package Works Town No. of cultivated owned waste subtotal Village owned subtotal Villages land land land s land ADB-SS-CW-01 Central Main Dangmu 6 169.34 0 52 221.34 0 0 221.34 East Main Dangmu 2 0 16.67 0 16.67 0 0 16.67 Dujia Branch Dangmu 2 0 22.6 0 22.6 0 0 22.6 Gaomi Branch Dangmu 1 25.42 0 0 25.42 0 0 25.42 Jiangji Branch Dangmu 1 0 27.16 0 27.16 0 0 27.16 ADB-SS-CW-03 Mindi Branch Dangmu 1 0 6.8 0 6.8 0 0 6.8 Dangmu 2 0 8.4 0 8.4 0 0 8.4 Tongyi Branch Longchi 1 0 1.8 0 1.8 0 0 1.8 Longyang 3 0 25.76 0 25.76 0 0 25.76 Chenzhuang 2 0 7.75 0 7.75 0 0 7.75 Middle Main Dangmu 1 31.58 0 0 31.58 0 0 31.58 Daobei Branch Chenzhuang 2 0 8.33 0 8.33 0 0 8.33 ADB-SS-CW-04 Dongchen Branch Chenzhuang 2 0 18 0 18 0 0 18 Neifu Branch Chenzhuang 1 0 20.96 0 20.96 0 0 20.96 Sibu Branch Chenzhuang 1 0 5.5 0 5.5 1 108 5.5 Xichen Branch Chenzhuang 2 0 7.2 0 7.2 0 0 7.2 Jingyao 1 0 60 0 60 0 0 60 ADB-SS-CW-07 West Main Longyang 3 0 310 0 310 0 0 310 Liuji 0 0 0 0 0 0 0 108 ADB-SS-CW-08 Donglei Branch Jingyao 2 0 80 0 80 0 0 80

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Pucheng County Fuping County Rural State- Rural No. of State- PLO Package Works Town No. of cultivated owned waste subtotal Village owned subtotal Villages land land land s land Dongxing Branch Dangmu 2 0 54 0 54 0 0 54 Dongxing First Branch Chenzhuang 4 0 57 0 57 0 0 57 Dongxing Secondary Chenzhuang 1 0 56 0 56 1 70 56 Branch Dongzhang Branch Jingyao 2 0 74 0 74 0 0 74 Jingyao Branch Jingyao 2 0 77 0 77 0 0 77 Mingde Branch Jingyao 2 0 70 0 70 0 0 70 Shijia Branch Liuji 0 0 0 0 0 0 0 70 Tianshuijing Branch Jingyao 3 0 117 0 117 0 0 117 Xujiazhuang Branch Jingyao 1 0 36 0 36 0 0 36 Zhongjia Branch Longyang 2 0 52 0 52 0 0 52 ADB-FM-CW-02 ADB-FM-CW-02-01 Dangmu 1 0 0 358.5 358.5 0 0 358.5 ADB-FM-CW-02-02 Dangmu 1 0 0 395 395 0 0 395 ADB-FM-CW-02-03 Dangmu 1 0 0 439 439 0 0 439 ADB-FM-CW-02-04 Dangmu 1 0 0 320 320 0 0 320 ADB-FM-CW-02-05 Dangmu 1 0 0 300 300 0 0 300 ADB-FM-CW-03 Dangmu 2 0 0 1028.21 1028.21 0 0 1028.21 Total 413 226.34 1219.93 2892.71 4338.98 2 178 4516.98

3 Some villages were affected by more than 2 packages that the total number exists duplicate cases, and the actual affected villages are 43 in the two affected counties. 13

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

21. About 4,338.98 mu of land will be occupied permanently in Pucheng County, including 226.34 mu of rural cultivated land, 2892.71 mu of rural waste land, and 1,219.93 mu state-owned land, affecting 2,124 households with 10,167 persons in 41 villages in 5 towns. Only 178 mu of the State-owned land will be occupied in Fuping County, which are all cultivated by the APs temporarily, affecting 220 households with 956 persons in 2 villages in Liuji Town. See Table 2-3.

Table 2-3 PLO Impact by Land Type and Affected villages State- Rural Rural owned waste subtotal County Town Village cultivated AHs APs land land (mu) land (mu) (mu) (mu) Pucheng County 226.34 1219.93 2892.71 4338.98 2124 10167 Chenzhuang Dongchen 0 14 0 14 50 241 Fuxin 0 15 0 15 12 57 Lijiazhuang 0 15 0 15 11 52 Neifu 0 23.96 0 23.96 135 656 Sanli 0 15 0 15 15 74 Sibu 0 18.45 0 18.45 83 400 Wujiazhai 0 56 0 56 50 238 Wujiazhuang 0 12 0 12 10 49 Xichen 0 11.33 0 11.33 30 150 subtotal 9 0 180.74 0 180.74 396 1917 Dangmu Fanjia 0 0 2247.54 2247.54 38 177 fuhua 29.44 0 0 29.44 28 147 Jiangji 0 53.66 0 53.66 152 734 Linji 18.29 0 0 18.29 65 324 Linjia 0 19.17 0 19.17 130 616 Luyangnan 89.59 0 593.17 682.76 50 247 Luyangxin 65.84 27 52 144.84 175 834 Mindi 0 8.8 0 8.8 10 50 Wujiazhuang 0 27 0 27 25 120 Xiaodong 5.9 0 0 5.9 6 28 Xiaoxi 17.28 0 0 17.28 15 71 subtotal 11 226.34 135.63 2892.71 3254.68 694 3348 Jingyao Donglei 0 40 0 40 40 189 Dongxing 0 32 0 32 35 151 Dongyao 0 60 0 60 65 314 Ganquanfang 0 40 0 40 40 190 Gaodu 0 24 0 24 30 144 Mingde 0 46 0 46 60 281 Nanbeibu 0 37 0 37 50 237 Tianshuijing 0 53 0 53 45 212 Wangjia 0 50 0 50 60 286 Xichang 0 37 0 37 45 211 Xizhang 0 27 0 27 30 143 Xujiazhuang 0 36 0 36 35 150 Zhaizi 0 32 0 32 30 142 subtotal 13 0 514 0 514 565 2650 Longchi Zhangjia 0 1.8 0 1.8 6 28

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

State- Rural Rural owned waste subtotal County Town Village cultivated AHs APs land land (mu) land (mu) (mu) (mu) subtotal 1 0 1.8 0 1.8 6 28 Longyang Fuwang 0 89 0 89 110 527 Handi 0 3 0 3 15 82 Shizhang 0 13.26 0 13.26 15 82 Tongyi 0 9.5 0 9.5 18 91 Zhaojia 0 120 0 120 130 610 Zhaojiazhuang 0 30 0 30 25 117 Zhongjia 0 123 0 123 150 715 subtotal 7 0 387.76 0 387.76 463 2224 Fuping County 0 178 0 178 220 956 Liuji Caoguan 0 108 0 108 150 622 Shijia 0 70 0 70 70 334 subtotal 2 0 178 0 178 220 956 Total 6 43 226.34 1397.93 2892.71 4516.98 2344 11123

22. As the land acquisition/occupation for canals rehabilitation is linear, the number of affected villages and households is large, but impacts are limited in household.

Figure 2-1 General Main Channel before rehabilitation

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Figure 2-2 Linji Branch Channel before rehabilitation 23. In terms of individual household level land loss rate, among the 2,344 households affected by PLO, AHs will lose less than 10%. See table 2-4.

Table 2-4 Land Loss Rate Distribution of Affected Households No Administration The Distribution of the Loss Rate of Farmland of Subtotal Area of Project Households Acquired Land in the Project(Household) ≤6% 6%—7% 7%-8% ﹥8% 1 Dangmu Town 587 58 43 6 694 2 Jingyao Town 5 85 400 75 565 3 Chenzhuang Town 345 50 1 0 396 4 Longyang Town 332 71 42 18 463 5 Longchi Town 6 0 0 0 6 6 Liuji Town 143 77 0 0 220 Total 6 1418 341 486 99 2344 Proportion (%) 60.49% 14.55% 20.73% 4.22% 100.0%

2.4 Temporary Land Occupation 24. About 242.5 mu of land will be occupied temporarily, which are totally for Component 1 in Pucheng County. The planned period of occupation will be two years. See Error! Reference source not found..

Table 2-5 Temporary Land Occupation for the Project Utilization Current Site Amount Occupation situation (mu) time Construction and workers’ farmland Along the main and branch 57 2 years camp canals Construction road farmland Along the main and branch 118.35 2 years canals

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Site for spoil from main farmland Along the main canals, east 67.15 2 years channels and lakes of Jingcheng village

2.5 Demolition of Rural Temporary Buildings 25. In the implementation stage, almost all the APs are contractor on salt pans with temporary building demolished. All the non-residential houses were used for salt production, management, and warehouse for the tools. Besides, the main channels rehabilitation will demolish some simple house or mud-wood house used for production tools storage. Totally, 35 households with 175 persons will be affected by demolition of rural temporary buildings, while they are affected by permanent land occupation. See table 2-6.

Table 2-6 Temporary Building Demolition for the Project Component Package No. sub-package Amount (m2) I. Saline Soils Rehabilitation ADB-SS-CW-01 0 ADB-SS-CW-02 0 ADB-SS-CW-03 450 ADB-SS-CW-04 350 ADB-SS-CW-07 600 I. Saline Soils Rehabilitation Subtotal 1400 II. Flood Risk Management ADB-FM-CW-02 ADB-FM-CW-02-01 3906.47 ADB-FM-CW-02-02 559.58 ADB-FM-CW-02-03 992.55 ADB-FM-CW-02-04 2483.66 ADB-FM-CW-02-05 4028.79 ADB-FM-CW-03 4955.57 II. Flood Risk Management 16926.62 Total 18326.62

2.6 Affected Vulnerable Groups 26. Among the affected households, there are 19 vulnerable households with 70 persons to be offered with subsistence allowances by the government. The 19 vulnerable group households include 5 disabled households, 10 low income households and 4 five-guarantee households. They will be entitled to special support as AHs. And the Project Office confirmed that 0.5% of the total resettlement budget will be used as the special rehabilitation fund for the vulnerable group.

Table 2-7 Details of affected vulnerable groups Village/County Name Population(person) category Linjia, Pucheng Cheng Youcang 4 Disabled Linjia, Pucheng Wu Jiyuan 3 Disabled Linjia, Pucheng Song Xiannian 4 ill Linjia, Pucheng Yang Wuxi 2 Old and weak subtotal 4 households 13 persons Donglou, Pucheng, Weinan Wei Baozhu 4 Disabled Donglou, Pucheng, Weinan Cui Jilin 4 Disabled Donglou, Pucheng, Weinan Chang Qingyu 3 Old and weak Subtotal 3 households 11 persons Chitou, Pucheng Li Xiangquan 4 Disabled Chitou, Pucheng Li Zhiming 3 Ill Chitou, Pucheng Li Sanxi 5 old and weak Subtotal 3 households 12 persons Shuinan, Pucheng Wang Xinhong 4 Old and weak Shuinan, Pucheng Liu Jungang 4 ill Shuinan, Pucheng Liu Panxin 4 Disabled Shuinan, Pucheng Liu Heping 3 Old and weak subtotal 4 households 15 Fujia, Pucheng Wang Yali 4 ill Fujia, Pucheng Wang Daimin 4 ill 17

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Fujia, Pucheng Wang Haisheng 3 Old and weak Fujia, Pucheng Zhao Wenyuan 3 Old and weak Fujia, Pucheng Li Huamin 5 Disabled subtotal 5 households 19 persons Total 19 households 70 persons 2.7 Affected Women

27. In the population affected by the Project, no widowed, divorced or abandoned woman was found among the respondents. The affected women enjoy the same rights as men, including land contracting, education receiving, family planning and election. Most of the female labor respondents think that they have the same autonomy in production and management as men, and may elect to get employed or do small business independently.

28. The impact of the Project on women’s income is due to the acquisition/occupation of cultivated land, while per capita crop cultivation income is 1,000-1,500 yuan, accounting for 8% of household income. Boys and girls have equal opportunities in education, showing no gender- related difference.

29. According to the survey, women have the same concerns as those of men: (a) Compensation rates should comply strictly with the state laws and policies; (b) Compensation fees should be disbursed directly to the AHs. Women have the following needs that are different from those of men: (a) Women expect both cash compensation and land reallocation; (b) Women want skills training in fruits cultivation, stockbreeding and handicrafts; and (c) Women also expect to participate in village-level management.

2.8 Affected Infrastructure and Ground Attachments

30. The Project will affect 12 types of attachments, namely enclosing walls, fences, cement grounds, telegraph poles, streetlamps, junction boxes, transformers, tombs, wells and trees. See 31. Table 2-8.

Table 2-8 Summary of Affected Ground Attachments Item Unit Amount Brick enclosure m 2000 Grown fruit tree tree 1218 Grown tree tree 600 Water closet each 100 Young fruit tree tree 696 Young tree tree 3000 water cellar each 80 well each 70 concrete pole each 300 chimney each 50 transformer each 30 power line m 3000

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

3 SOCIOECONOMIC ANALYSIS OF AFFECTED AREA 3.1 Socioeconomic Profile of the Project Area

3.1.1 Socioeconomic Profile of the Affected Counties 32. Pucheng County, located in the northeast of Weihe River Plain, 110 kilometers away from Xi'an, with a total area of 1584 square kilometers and a total population of 760,000, the location of National Time Service Center, has 24 townships and 359 administrative villages. Primary industry is dominated by grain, fruit, animal husbandry and greenhouse facilities at Pucheng County, which has 1.68 million mu of arable land and above 0.65 billion kilograms of grain total output. Besides, Pucheng County is the key county of high-quality fruit industrialization and known as pear. The secondary industry is dominated by energy and chemical industries, agriculture related industries, fireworks, processing etc. The tertiary industry is dominated by tourism, catering and logistics.

33. The county’s regional GDP was more than 18.15 billion yuan in 2017, up 8.1% year on year. Rural residents’ per capita net income was 10,097 yuan, up 9.2% year on year; total retail sales of social consumer goods 7.7 billion yuan, up 13.2% year on year.

3.1.2 Socioeconomic Profile of the Affected Towns 34. Dangmu Town is located in 15 kilometers south of Pucheng County. The widest span from east to west is 12 kilometers, and the longest span from south to north is 11 kilometers. The total area of this town is 94.73 square kilometers. The town’s jurisdiction includes 16 administrative villages, 162 village groups, 11,312 households, 44,880 persons, the total cultivated land area of 94,730 acres. The industry is dominated by breeding industry, facility agriculture and manufacturing and services in the town. The town’s regional GDP was 0.819 billion yuan in 2016, up 10.0% year on year. Rural residents’ per capita net income was 11,567 yuan, up9.4% year on year. Table 3-1 The Social and Economic Situation of the Affected Towns (2016)

) n ld of No on) uan Per Per Per Net The HHs Town y of Per Capita Capita Capita Income Number Number Average Average Area(ten Area(ten (mu/pers Househo Farmers( populatio Farmland thousand of People Farmland 1 Dangmu 11312 44880 9.47 4.0 2.24 11567

2 Jingyao 21774 83380 16 3.8 1.92 10140

3 Chenzhuang 6790 27553 5.08 4.1 1.84 13700

4 Longyang 7177 27267 5.58 3.8 2.05 13510

5 Longchi 9084 36208 7.2 4.0 1.99 18297

6 Liuji 10105 42322 6.8 4.2 1.60 10570 Source: Pucheng Year Book 2017 and Fuping Year Book 2017.

3.1.3 Socioeconomic Profile of the Affected Villages 35. The LAR of this project will affect six administrative villages in Dangmu Town, Weinan City, with a total population of 2,359 households, 10,736 people.

36. According to the survey, there is no scale business enterprise in the 6 villages affected by the project, and the villagers only have some temporary business income, such as the income of nitrate production using local natural conditions. With the development of the project, local farmers' income structure is changing, with the proportion of agricultural income declining, the proportion of income of independent business and service industry and other tertiary industries increasing. Table 3-2 summarizes the social and economic situation of the affected villages.

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Table 3-2 The Social and Economic Situation of the Affected Villages (2016) Total The Total Total Poor Per capita Affected Cultivate Industrial Number of Population Male Female Persons/ Income in Villages d Area Structure Households (Persons) Household Rural Area (MU) Go out to work, independent Chitou 657 2796 1425 1371 78/28 5500 7332 management and farming Go out to work, independent Shuinan 364 1494 784 710 51/13 3800 6631 management and farming Go out to work, independent Linjia 574 2595 1326 1269 88/30 5000 8094 management and farming Go out to work, independent Fanjia 254 1317 672 645 46/13 6000 7906 management and farming Go out to work, independent Fujia 243 1241 631 610 42/12 4449 7700 management and farming Go out to work, independent Liujia 267 1320 684 636 50/11 4562 7505 management and farming Go out to work, independent 6 2359 10763 5543 5220 355/107 29311 7528 management and farming Source: Investigation.

3.2 Socioeconomic Status of the Affected Population (2016) 3.2.1 Analysis of Household and Female Population 37. The PMO, with the assistance of consultants, conducted a sample survey of 1,500 households, accounting for 6% of the total number of households in the 9 sample villages, accounting for 15.5% of all 71 affected villages.

38. In the 1,500 households surveyed, the total number of population is 7,235, the labor 4,842. These people are all Han Nationality, and the number of female is 3,400 accounting for 47% of total respondents.

3.2.2 Age Structure 39. Among the 1,500 households, 7,235 persons, the number of people under the age of 16 accounts for 17.8%, between 16 and 39 34.2%, between 40 and 59 34.6%, over 60 13.4%.

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

under 16 16‐39 40‐59 over 60

Figure 3-1 Age Distribution 3.2.3 Educational Level 40. Among the 1,500 households, 7,235 persons, literacy in primary school or below accounts for 21.2%, middle school 32.9%, high school 33.3%, college or above 12.6%. Figure 3-2 illustrated the education background of sample people.

primary school or below middle school high school College or above

Figure 3-2 Education Distribution 3.2.4 Housing Conditions 41. The structure of sample house were major brick-concrete structure and brick-wood structure, with a total housing area of 376,500 m2, or 251 m2 per household on average and 52 m2 per capita. 18.4% households with an area of under 100 m2, 33.4% with an area of 100 -150 m2, 34.6% with an area of 151-300 m2, 10.8% with an area of 301-450 m2, 2.9% with an area of over 451m2.

3.2.5 Household Income and Expenditure 42. The surveyed households have an average annual per household income of CNY 35,000 and an average annual per capita income of CNY 3,125. The income of farmers in the agricultural accounts for a large proportion, and this is consistent with the local industrial structure. Women generally are engaged in farming or handicraft industry, while male labor farming or going out to work.

43. The surveyed households have an average annual household expenditure of CNY 29,000, with household operation expenses CNY 5,000 (17.2%) per household, living consumption expenses CNY 20,000 (69%) per household, other expenses CNY 4,000 (13.8%) per household. The

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

44. Table 3-3 illustrated the sample households income and expenditure.

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Table 3-3 Sample Households Income and Expenditure (in 2016 year) Item Proportion Per Household Per Capita （%） Income Income （Yuan/Household）（Yuan/Person） Agriculture income 43 15000 3125 Forestry income 0 0 0 Animal husbandry income 0 0 0 Industrial income 0 0 0 Construction industry income 0 0 0 Transportation business income 0 0 0

income Service industry income 0 0 0

HH Other non-agriculture income 3.4 1200 250 Outgoing labor income 51 18000 3750 Collective distribution income 0 0 0 Property income 2.7 800 167 Subtotal 100 35000 7292 Household operation expenses 17.2 5000 1042 Living consumption expenses 69 20000 4167

HH Other expenses 13.8 4000 833 Subtotal 100 29000 6042

3.3 Social and Gender Analysis

45. After the implementation of the project, the affected persons will lose some land, but they can get relevant compensation and improve the living standard through the implementation of the project. In the affected area, the women do most of the housework, so the improvement of the living condition and the environment will lessen their labor. And they can get more job chances because of the improvement of the living condition. Of course, in the socioeconomic survey of the affect to the women, it is shown that both the men and the women concern the just and in-time compensation. 46. Moreover, the income from agriculture is only the 26.51% of the total household income, and the women undertake 72% of the agricultural work, that is, the women earn 3976 yuan every year. After the implementation of the project, the women will lose a small portion of their income but they will get more job chances through more business activities.

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

4 LEGAL FRAMEWORK AND POLICIES 4.1 Laws, Regulations and Policies Applicable to Resettlement

47. The LAR policies of the project have been developed in accordance with the relevant laws, regulations and policies of the PRC, and ADB policies, including:

Policies of ADB

• Safeguard Policy Statement, June 2009

Laws, regulations and policies of the PRC

(1) The Land Administration Law of the People’s Republic of China. (Amended at the Eleventh Session of the Standing Committee of the Tenth National People’s Congress on August 28, 2004; and effective as of then) Main contents: formulations on land ownership, land using overall plan, farmland protection, land for construction, supervision and inspection, legal responsibility, including land expropriation compensation, subsidy standard for relocation, and relocation way of relocated people. (2) Regulations on the Protection of Basic Farmland (No.257 Decree of the State Council of The People’s Republic of China on December 27, 1998) Main contents: in line with Agriculture Law of the People’s Republic of China and the Land Administration Law of the People’s Republic of China, concrete formulations for the country’s protection of basic farmland, including delimitation, protection, supervision and management, legal responsibility, and so on. (3) Interim Regulations of Farmland Use Tax of the People’s Republic of China (No. 511 Document of the State Council issued on December 1, 2007 and effective on January 1, 2008) Main contents: formulations about tax contribution standard and contribution range of state construction occupied farmland (4) Decision on Furthering Reform of Land Management of the State Council (Guofa [2004] No. 28, October 21, 2004) Main contents: In order to use the land properly, to protect the legal rights of the peasants whose land is expropriated, to maintain social stability, and to perfect the land expropriation and resident relocation system, the decision puts forward the guide principle and way to perfect the compensation of land expropriation. The decision asks all the county, city and province governments to take useful measures to make sure that the peasants’ living standard will not decrease after their land is expropriated, and that according to laws in force, the land compensation, relocation compensation, ground attachment and young crop compensation are paid in full and in time. If according to laws in force, after the payment of land compensation and relocation compensation, the peasants whose land is expropriated cannot maintain the original living standard , and their social security can not be paid , the province , autonomous region and municipality government should agree to add relocation compensation. If the sum of land compensation and relocation compensation reaches the legal upper limit, but the peasants whose land is expropriated couldn’t remain the living standard as before, the local people’s government can provide subsidy with the state-owned land income. The government of province, autonomous region and municipality should work out and promulgate the standard of output value or price of land. The land expropriation should be the same price for same land. The national key construction project should take the expense of land expropriation into its budget. (5) Notice on Printing the Suggestions for Completing Compensation and Relocation System of Land Expropriation by the Ministry of Land Resources of People’s Republic of China (Guotuzifa [2004] No. 238, November. 3, 2004,) Main contents: In order to put forward how to carry through ”The Decision of the State Council on Deepening the Reform and Strictly Enforcing Land Administration” especially aiming at some problems during the land acquisition compensation and relocation system. 24

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

(6) The Property Law of the People’s Republic of China. (Order of the People’s Republic of China No. 62, in effect as of October 1, 2007) Main contents: The present Law is enacted with a view to maintaining the basic economic system of the state, protecting the socialist market economic order, clearly defining the attribution of the property, bringing into play the utilities of the property and safeguarding the real right of the right holder. The civil relationships incurred from the attribution and utilization of the property shall be governed by the present Law.

Relevant policies of Shaanxi Province and Weinan Municipality

(1) Regulations on the Implementation of the Land Administration Law of the People’s Republic of China in Shaanxi Province (adopted at the Twelfth Session of the Standing Committee of the Ninth Provincial People’s Congress on November 30, 1999, and effective on January 1, 2000) Main contents: in line with the Land Administration Law of the People’s Republic of China, and the reality in Shaanxi Province, concrete formulations on the land administration in Shaanxi Province. (2) Detailed Implementation Regulations on Regulations on the Protection of Basic Farmland of Shaanxi Province (No. 30 Decree of the People’s Government of Shaanxi Province on April 4, 1996) Main contents: in line with the Land Administration Law of the People’s Republic of China, Regulations on the Protection of Basic Farmland by the State Council, relevant laws and regulations, and the reality in Shaanxi Province, concrete formulations on the protection of the basic farmland in Shaanxi Province. (3) Regulations on Land Acquisition for Construction Project of Shaanxi Province. (No. 78 document issued and effective as of January 8, 2002 by Shaanxi Provincial Government). Main contents: to regulate the land acquisition in Shaanxi Province. According to The Land Administration Law of the People’s Republic of China and Regulations on the Implementation of the Land Administration Law of the People’s Republic of China of Shaanxi Province, the regulations puts forward the principal and method to protect, explore and use land reasonably, and to guarantee construction land environment and to balance the land use and supplement. (4) Notice on the Average Standard of Unified Annual Output Value and Section Comprehensive Land Price on Land Acquisition in Shaanxi Province (No. 36 document issued on April 13, 2010 by the Office of Shaanxi Provincial Government) Main contents: Publish the standard of the unified annual output value (UAOV) of all the cities in Shaanxi Province. Publish the times of UAOV for land acquisition and resettlement allowance of all the cities in Shaanxi Province. Put forward that the principle on land acquisition compensation should be based on same price of same farmland, coordination and balance, and openness. (5) Notice on Land Acquisition and Implementation Scheme for Ecological Environment Project, Dredging and Rehabilitation of Main Desalination Drainage Channels in Weinan Luyanghu Modern Industries Development Zone (No.53 document issued on April 9, 2014 by the Office of Pucheng County Government) (See appendix 1) Main contents: propose compensation and resettlement policy for land acquisition. 4.2 Abstract of ADB Policies

48. The objectives of ADB's SPS are (i) If possible, involuntary resettlement should be avoided; (ii) If resettlement is unavoidable, all feasible options should be explored and the scope of resettlement should be as small as possible; (iii) Ensure that the displaced persons have the same economic and social conditions before and after the project; and (iv) Improve the living standard of displaced poor and other vulnerable groups.

49. Involuntary resettlement is an important part of the project design and resettlement plans. Planning and implementation should take into account the following basic principles: (1) Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning 25

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

through a survey and/or census of displaced persons, including a gender analysis, specifically related to resettlement impacts and risks. (2) Carry out meaningful consultations with affected persons, host communities, and concerned nongovernmental organizations. Informally displaced persons of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs. Pay particular attention to the needs of vulnerable groups. Support the social and cultural institutions of displaced persons and assist the local population in the resettlement area. (3) Improve or at least remain, the livelihoods of all displaced persons through (i) land- based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible. (4) Provide physically and economically displaced persons with needed assistance, including the following: (i) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required. (5) Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards. In rural areas provide them with legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing. (6) Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status. (7) Ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of non-land assets. (8) Prepare a resettlement plan elaborating on displaced persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. (9) Disclose a draft resettlement plan, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders. (10) Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of the project’s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation. (11) Pay compensation and provide other resettlement entitlements before physical or economic relocation. Implement the resettlement plan under close supervision throughout project implementation. (12) Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and whether the objectives of the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports. 26

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

4.3 Main Differences Between ADB Policy and PRC Laws 50. The main differences between ADB policy and RPC Laws and solutions to fill gaps are as followings.

Compensation for land

Difference: ADB policies require that compensation should be at replacement cost. PRC standards are based on average annual output value (AAOV). Solution: Cash compensation is the preference of most people. Therefore, cash compensation at replacement cost (sufficient to replace income from affected land). Further technical support to monitor the income of seriously affected households, especially those in vulnerable groups, and local governments’ assistance to those in need.

Compensation and resettlement of vulnerable groups

Difference: ADB policies require that special assistance is granted to all vulnerable groups, especially seriously affected households faced with impoverishment. PRC provisions do not require social analysis, and compensation is based only on the amount of loss. Solution: Special funds are available to assist the vulnerable groups, who are identified during the DMS. The funds are part of the general resettlement budget. All measures have been specified in the RP.

Consultation and disclosure

Difference: ADB policies require APs are fully informed and consulted as soon as possible. PRC provisions have improved the transparency of disclosure and compensation. However, APs still play a weak role in project decision-making, and the disclosure period is usually too short. Solution: Consultation has been conducted. From 15 May to 15 July 2018, 21 affected villages held villager representatives meeting to discuss the resettlement policy and compensation rates in the updated resettlement plan. The representatives have already included female, vulnerable groups, the elderly and so on. The PMO agrees to disclose the updated RP to APs as required by ADB. And will continue during the project implementation.

Lack of legal title

Difference: ADB policy require to ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of non-land assets. According to PRC laws, no compensation should be provided for the acquisition of illegally owned land. Solution: For an ADB financed project, all APs, whether lawful or not, whether having ownership or right of use, will be provided with compensation for non-land assets or assistance. The PMO compensates the APs induced by the loss of young crops on state-owned land.

Resettlement monitoring, evaluation and reporting

Difference: ADB requires that internal and external resettlement monitoring be conducted. However, there is no such requirement in PRC laws (other than reservoir regulations). Solution: Internal and external resettlement monitoring systems have been established for the project, and this has been included in the RP. The requirements for internal and external monitoring reporting are specified in the RP

4.4 Cut-Off Date of Compensation

51. The updated cut-off date for the eligibility for compensation is July 30, 2018, which has been

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project disclosed in the project area during DMS. Any newly claimed land, newly built house or settlement in the project area by the APs after this date will not be entitled to compensation or subsidization. Any building constructed or tree planted purely for extra compensation will not be counted in.

Figure 4-1 LAR information disclosure and cut-off date announcement

4.5 Compensation Rates 4.5.1 Compensation Rates for Acquisition of Collective Land 52. The collective land to be acquired is compensated in monetary compensation according to the Notice on the Average Standard of Unified Annual Output Value and Section Comprehensive Land Price on Land Acquisition in Shaanxi Province (2010) and Notice on Land Acquisition and Implementation Scheme for Ecological Environment Project, Dredging and Rehabilitation of Main Desalination Drainage Channels in Weinan Luyanghu Modern Industries Development Zone (2014). In the light of the social and economic development strength and features within the Project area, the compensation rate for collective farmland is CNY 28500 Yuan/mu in Pucheng County, CNY 31063 Yuan/mu in Fuping County, including land compensation and resettlement allowance. The compensation rate for young crops in farmland is CNY 1000 Yuan/mu in Pucheng County, CNY 1300 Yuan/mu in Fuping County as the average annual output of the land before expropriation in the first three year. Besides, the young crops in greenhouse is CNY 5000-6000 Yuan/mu. The compensation rate for saltpan is CNY 6900 Yuan/mu, including construction subsidy, land compensation and resettlement allowance.

53. In addition, the land compensation and resettlement allowance of arable land is paid directly to the affected villages by bank transfer, and then the village committee allocate the compensation depends on the representative meeting, while only the land compensation of saltpan to the affected villages. The other compensation is paid directly to the APs by personal bankcard.

Table 4-1 Compensation rate for acquired collective land Land Type Arable Land Saltpan Receiver Pucheng Fuping young crops (CNY/mu) 1000 1300 - APs construction subsidy (CNY/mu) - - 1000 APs land compensation (CNY/mu) 28500 31063 5000 village committee resettlement allowance (CNY/mu) 900 APs Subtotal (CNY/mu) 29500 32363 6900

54. According to the State policy, Article 47 in Land Administration Law of PRC (Revised on 28 August 2004), the land compensation and resettlement allowance for arable land should be 6 to 28

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

10 times and 4 to 6 times the average annual output value (AAOV) respectively, and the compensation rate for the other type land is prescribed by the provincial government. According to the relevant regulation, Regulations on the Implementation of the Land Administration Law of PRC in Shaanxi Province (effective on January 1, 2000), Article 29 instructs that compensation rate for young crops is 40%---90% of AAOV, the land compensation for the other type land is 1 to 4 times AAOV of moderate arable land, while the resettlement allowance is 1.2 to 3.6 times. The UAOV of Pucheng County is CNY 1286 Yuan/mu which replace the AAOV from May 2010, so the compensation rate for young crops is 77.8% of UAOV. Moreover, the compensation rate for arable land is equivalent 22.2 times of UAOV, while the saltpans is about 4.59 times which lies in the valid range.

55. In accordance with ADB policy requirements, the proposed standards should be at least equivalent the replacement cost. Since there is no market value for collective land in the PRC, compensation rates for acquisition of collective land are based on the gross UAOV of the land category times a multiple. Basically, the net income from farmland is typically 30% to 50% of the of the gross output value after deducting production costs. This is supported by evidence of low lease rates for idle farmland (i.e., the person with the land use right doesn’t expect much income from the land and can earn much more from off-farm employment). This means the proposed multiple of farmland for the Project is 22, which is equivalent to 44 years of net income at least.

56. Based on the interview with the APs, the AAOV of saltpan is CNY 560 Yuan/mu (8 tons multiple 70 Yuan/ton), and the cost including electricity, fuel, rent, transportation is about CNY 360 which brings CNY 200 in profit. This means the proposed compensation rate for saltpan is equivalent to 29 years of net income at least. APs suffering partial loss would receive compensation, which can be used to improve their remaining farmland, or converting to plant cash crops, or seek off-farm employment or save in a bank and earn enough interest to cover the net income loss.

4.5.2 Compensation Rates for Affected Young Crops during the State-owned Land Occupation 57. For the land in the buffer zone along the canals, it’s defined in accordance to relevant regulations as the state-owned land for the water facilities protection. The protection boundaries were confirmed as follow, both sides 10m far from main canal, 6m of branch canal, 4m of tiny canal, management station, within 3m of external fence, and 10m around buildings. It is not allowed to pile up straw, debris or rubbish in protection area; dredging sand and soil, and permanently building in protection area. When protection area is out of construction, local farmers can plant seasonal crops which will not cause negative impacts on the canal operation. During project implementation, the compensation for economic loss of APs shall only be made in accordance with actual loss assessment for ground attachments after negotiation with affected people. However, considering current situation and historical reasons, after negotiation with APs, PMO decided to make compensation for the affected villagers based on the young corps compensation standard of the collective land.

58. According to the Notice on Land Acquisition and Implementation Scheme for Ecological Environment Project, Dredging and Rehabilitation of Main Desalination Drainage Channels in Weinan Luyanghu Modern Industries Development Zone (2014), the compensation rates for the young crops during state-owned land occupation are CNY 1,000 yuan (Pucheng County) or CNY 1,300 yuan (Fuping County) per mu, and the compensation for ground attachments will be paid accordingly if applicable.

4.5.3 Compensation Rates for Temporary Land Occupation 59. According to the Notice on Land Acquisition and Implementation Scheme for Ecological Environment Project, Dredging and Rehabilitation of Main Desalination Drainage Channels in Weinan Luyanghu Modern Industries Development Zone (2014), temporary occupied land will be

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project compensated for at local AAOV, namely CNY 1,000 Yuan/mu annually. The period of TLO of the Project will be two years.

60. PMO will supervise and the contractor will take charge of restore the temporarily occupied land after the expiry of the above period, and relevant costs will be included in the general budget of the Project.

4.5.4 Compensation Rates for Rural Temporary Buildings 61. The temporary building demolition will be compensated in accordance with the Notice on Land Acquisition and Implementation Scheme for Ecological Environment Project, Dredging and Rehabilitation of Main Desalination Drainage Channels in Weinan Luyanghu Modern Industries Development Zone (2014). Most of the temporary buildings are used for saltpan production and warehouse along to the saltpans. The affected saltpan producers can utilize the construction materials of their previous building for their new temporary building construction.

Table 4-2 Compensation rate for temporary building Compensation Structure grade Unit Remark rate Brick-concrete I Yuan/m2 800 with decoration Brick-concrete II Yuan/m2 700 Brick-wood I Yuan/m2 700 with decoration Brick-wood II Yuan/m2 600 Mud-wood Yuan/m2 450 Simple Yuan/m2 85 asbestos shingle Cave-house Yuan/m2 500

62. It’s calculated that the price of replacement cost for brick-concrete building is about 500 yuan/m2. The following is an example of the construction cost of temporary building.

Table 4-3 Replacement cost analysis on temporary building name site Building time type area Distance to county Mr.F Dangmu town of, Pucheng 2010.8 simple 60 m2 18KM Material fee cement：380 yuan/ton（including fare）× 15 ton= 5700 yuan, purchase place: Pucheng County brick：0.4yuan/ each（including fare）× 40000 = 16000 yuan sand：50yuan/m3（including fare）× 24m3=1200yuan purchase place: Pucheng County stone：60yuan/m3×18m3=1080yuan, purchase place: purchase place: Pucheng County wood：860yuan/m3（including fare）×3m3=2580yuan Polycarbonate cover：22yuan/m（0.7m wide）（including fare）×75m=1650yuan other material：1200 yuan（nail, wire, power charge） water and power material ：540yuan cost of labor（not including owners’ labor） skilled labor ：50yuan/m2×60 m2=3000yuan Total price：27250yuan Average price not including service fee：454.1yuan/ m2

4.5.5 Compensation Rates for Attachments and Infrastructure 63. Ground attachments on the permanently and temporarily acquired land will be compensated based on replacement cost and in accordance with the Notice on Land Acquisition and Implementation Scheme for Ecological Environment Project, Dredging and Rehabilitation of Main Desalination Drainage Channels in Weinan Luyanghu Modern Industries Development Zone (2014). The compensation rates are shown in Table 4-4. The affected professional facilities, such as transformer, water conservancy, power supply, telecommunication, road and so on will be compensated according to the replacement price after appraisement.

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Table 4-4 Compensation Standards for the Ground Attachments

Item Unit Unit Price Cool house Yuan/m2 120 Tree Yuan/tree 5 - 80 Garden Yuan/mu 1000 - 3000 Plant nursery Yuan/mu 3500 - 6500 Brick Wall (2.0 m) Yuan/m 70/130 Cattle Livestock Shed Yuan/m2 85 Simple livestock shed Yuan/m2 115 Earth-built Canal, Pool Yuan/m3 25 Greenhouse Yuan/m2 25/30 Hand-operated Well Yuan/set 600 Brick well Yuan/hole 5,000 Motor-pumped Well Yuan/hole 12,000 Grave Yuan/set 1,000/1,500 Tobacco stove Yuan/set 1,500 Glauber salt stove Yuan/set 30,000 Earth-build canal Yuan/m 100 Fish pool Yuan/ m2 5/15 Brick-concrete cellar Yuan/set 4,000 Brick-mud cellar Yuan/set 500 Electricity pole Yuan/pole 300

4.5.6 Rates of Other Costs 64. See details in Table 4-5.

Table 4-5 Rates of Resettlement Taxes and Fees No Item Rate Basis Received by 1 Farmland occupation tax 6670 Yuan/mu SPG [2009] No.141 LRB 2 Land reclamation fee 15008 Yuan/mu SLRB [2015] No.11 LRB 3 New construction land use fee 6670 Yuan/mu CZ [2006] No.48 LRB 4 LAR administration fee 2% of land acquisition JF [1992] No.597 LRB 5 Skills training costs 1% of direct costs 6 Administrative costs 3% of direct costs IA 7 RP preparation costs 0.3% of direct costs design institute 8 External M&E costs 0.5% of direct costs external agency 9 Rehabilitation fund for 0.5% of direct costs vulnerable group 10 Contingencies 10% of direct costs

4.5.7 Vulnerable Groups

65. Vulnerable groups affected by the Project are also entitled to the following preferential policies: (i) Laborers in vulnerable households will be provided with occupational training, and employment information and guidance in order to increase their job opportunities. (ii) During project construction, laborers in vulnerable households will have priority in being employed for unskilled jobs. 31

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

(iii) A rehabilitation fund will be established in cooperation with the relevant bureaus; this fund will be listed separately in the resettlement budget.

Figure 4-2 Meeting minute of the establishment of rehabilitation fund for vulnerable groups

4.6 Entitlement Matrix

66. The entitlement matrix has been established in accordance with the applicable policies in this chapter, as shown in Table 4-6.

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Table 4-6 Entitlement Matrix

Type of Degree of impact Affected people Rights Compensation policies and rates impact （1） The AP can choose cash compensation or land redistribution. （2） The APs receiving all compensation if their village cannot redistribute the left land for them (the land redistribution need to get 2/3 of whole villagers agree); 3119.05 mu （3） The affected villages can keep the compensation farmland：28500 yuan/mu (Pucheng),31063 collective land in the village when they redistribute same area yuan/mu (Fuping) Permanent 1828 persons, 377 (including 226.34 farmland for the APs to develop village public wasteland with salt pan：5000 yuan/mu; acquisition households,7 mu of rural facilities, or share it to all villagers construction subsidy 1000 yuan/mu of collective villages of Dangmu cultivated land and （4） the compensation for young crop will be young crop: 1000 yuan/mu (Pucheng),1300 land town 2,892.71 mu of rural compensated to the land user yuan/mu (Fuping) waste land) （5） At least 300 households with 1,500 members will get training on garden plant seedling produce and fruit tree care （6） During project construction, it is estimated around 300 unskilled jobs are available, while 140 jobs during operation （7） Each AP will get at least one skill training. （1） The APs will receiv young crop compensation for the affected crops on the land in buffer zone of main and branch canals; 9295 persons, Occupation （2） The APs are allowed to continue plant crops Affected young crops: 1000 yuan/mu 1967 households, of the state- 1397.93 mu after completion of civil works of canal dredging (Pucheng),1300 yuan/mu (Fuping) 36 villages of 6 owned land and rehabilitation as usual as they did, under towns the supervision of Canal Management Station of Water Resource Bureau to avoid impacts on the operation of canals. （1） Affected village: receiving temporary occupied Temporarily Farmland 2000yuan/mu/2 years APs; compensation occupied 242.5 mu waste land 600 yuan/mu/2 years （2） Affected persons: receiving young crop land Affected villages Compensation for young crop：600 yuan/mu compensation and salt-pan compensation

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Type of Degree of impact Affected people Rights Compensation policies and rates impact （3） Affected persons: if construction contractors Reclaim cost: farmland, 600 yuan/mu, waste don’t reclaim or Aps is not satisfied the reclaim land：220 yuan/mu 4 quality, the reclaim cost will be given to the Aps to restore the land. Brick-concrete 800 yuan/ m2 Brick-concrete 700 yuan/ m2 Demolition 18326.62 m2 175 persons, 35 （1） Market assessment, replacement price as Brick-wood 700 yuan/ m2 of temporary building, households, 5 compensation for demolished temporary Brick-wood 600 yuan/ m2 temporary most of them related villages of Dangmu building Mud-wood 450 yuan/ m2 building with salt pans town Simple 85 yuan/ m2 Cave-house 500 yuan/ m2 The compensation rates for land acquisition and （1） 0.5% of the total budget about CNY 251,331 house demolition are the same as above. yuan as special fund targeting the vulnerable group; The rehabilitation fund for vulnerable groups will （2） Giving priority to vulnerable groups in be spent in the payment for training, social Vulnerable 19HHs with 70 resettlement measures insurance, medical assistance, and financial groups persons （3） Including eligible vulnerable groups in MLSS as assistance to the APs. The exact amount that a priority each AP will receive depends on the status of （4） Providing rural medical assistance to eligible vulnerable households. The local government vulnerable groups has committed itself to improve all the vulnerable groups’ livelihood before 2020. （1） 50—60% training chances （2） Get relevant information, participate the resettlement plan preparation The compensation rates for land acquisition and Women （3） providing medical care to the affected women house demolition are the same as above. （4） promoting health condition of affected women and children The compensation for ground structures or attachments Ground is paid to proprietors. attachments Owners Compensation will be paid at replacement cost or such Details are provided in Section 5.7 of the RP. and public facilities restored by the demolisher to the original size facilities and standard.

4 Occurred only when the construction agency don’t restore the temporary occupied land. 34

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Type of Degree of impact Affected people Rights Compensation policies and rates impact APs will receive the following support for the following: Agricultural improvement (300 households with 1,500 members get training on garden plant seedling produce and fruit tree care) Employment and related training (300 unskilled jobs during construction, and during operation 140 jobs with Loss of APs with Livelihoods about 20 persons for maintaining the road, 20 persons livelihoods/income livelihoods impact for planting trees, 20 cleaning service, 50 persons for logistics, 30 persons for spoil soil transportation) Training on planting, agricultural machinery and marketing. APs with the remaining farmland less than 0.3 mu will be enrolled in the social security/pension system.

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

5 RESETTLEMENT AND INCOME RESTORATION 5.1 Resettlement Objectives

67. The objective of this RP is to develop an action plan for restoration for those affected so that they benefit from the Project, and their living standard is improved or at least restored to the pre- project level.

5.2 Principles for Resettlement and Restoration

68. According to the applicable laws and regulations of the PRC and ADB’s SPS and policy requirements on involuntary resettlement, the following basic principles will apply to the resettlement work of the Project: • Implement resettlement and the applicable compensation policies properly to improve or at least restore the production level and standard of living of the affected residents; • The affected persons shall be fully consulted for livelihood restoration programs; • The planning layout shall be determined on the principle of “facilitating production, housing and living conditions”; and • Resettlement shall be combined with the local urban development, resources development, economic development and environmental protection programs. Feasible measures shall be designed to restore and improve the affected persons’ production level, incomes, housing and standard of living, and create necessary conditions for their further self-development

5.3 Restoration Programs of Collective Land Acquisition

69. The land acquisition impact is limited; none of affected households (AHs) experience a loss over 10%. The income restoration plan formulated is based on the willingness of the APs, impact degree and the feasibility of the potential options in each village. During the field consultation, cash compensation, agricultural resettlement with or without land readjustment, arranged jobs during the project construction and operation, assistance to non-farming employment and self- employment, social insurance approaches were discussed.

5.3.1 Cash compensation (CNY/per mu) and distribution

70. The affected villages will be compensated in cash based on the standards discussed in Section 4, where compensation rates for cultivated land is CNY 28,500 yuan in Pucheng County, CNY 31,063 yuan in Fuping County, other waste land CNY 5,000 yuan per mu respectively (refer to Table 4-1). The land compensation distribution from village to APs has two scenarios: 1) If the land acquisition is a relatively large amount and the village has not enough reserved land to be allocated to APs, which is common in the project area, 100% of the compensation will be distributed to APs directly. 2) If the land acquisition amount is small and the village has enough reserved land (e.g. returned from a household which has moved to the urban area) to be allocated to APs to cover their land loss fully, then the APs will be allocated land and the compensation will be reserved for village infrastructure maintenance or improvement. Young crops compensation rate is CNY 1,000 yuan or CNY 1,300 yuan, of which 100% will be paid to the affected households. This compensation will be added to the overall compensation standard of the AH.

71. The compensation rate is very competitive compared the current land lease price. According to the current land-leasing price in the project area, plain dryland, which is the main cultivated land type, is CNY 500-700 depending on location for convenience of transport. The Project compensation for plain dryland per mu is more than CNY 28,500 that is worth of 40 years land leasing price at the existing higher rate of CNY 700. For the households who lose farmland, they mainly plant wheat, corn and some vegetables. In Weinan, they can harvest twice a year. The annual output value of wheat is 660 yuan per mu, and 770 yuan per mu for maize. Within the

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project project area, because of saline and alkaline, the output value is only 70% of that of the other areas. At the meantime, according to the investigation, the cost of planting grain crop is about 300 yuan per mu. So, for the households who plant grain crops, the output value is about 1000 yuan per mu, and the net income from the farmland is about 700 yuan per mu. Due to limited land acquisition per household and high compensation rate, most of APs are not worrying about loss caused by land acquisition.

72. Since the amount of acquired land is limited and some villages still has abundant un-allocated farmland (Fujia village, 150mu un-allocated farmland, Linjia 750 mu un-allocated farmland, Chitou 200 mu un-allocated farmland, Donglou 700 mu waste land can be reclaimed to farmland）. This can ensure the possibility to redistribute farmland to APs. However, to ensure that the affected households use the compensation in a rational manner, PMO and other related agencies will provide guidance and required training. The following are restoration options and assistance measures for permanent land acquisition

5.3.2 Agricultural improvement

73. Some AHs chose agriculture restoration, which will use the cash compensation to improve the remaining land by increase of fertilizer use or change grain crops plantation to cash crops plantation such as tomato, pear, grape, fruit trees, and garden plant seedlings which require intensive labor, greenhouse facilities and capital investment. It is estimated that a plantation of tomato and fruit will generate income of about CNY 2,000-3,000 per mu compared to that of CNY 1,000 of grain plantation. It is an increase of about 100% to 200% a year. It will be easy for the chosen household to offset their economic loss caused by land acquisition.

74. For the garden seedlings and fruit tree plantation, training will be provided. For other crop plantation types, training is not desired by APs because most household have such skills already. It is estimated that about 300 households with 1,500 members need training on garden plant seedling produce and fruit tree care.

5.3.3 Employee Engagement

75. During the construction of the project, in order to maintain and raise villagers’ living level, the affected villages and the implementation agency reach an agreement. PMO committed to give priority to employing APs for the project generated job opportunities. During project construction, it is estimated around 300 unskilled jobs are only available, and during operation 140 jobs with about 20 persons for maintaining the road, 20 persons for planting trees, 20 cleaning service, 50 persons for logistics, 30 persons for spoil soil transportation. Their preferential treatment shall be implemented according to the provisions of Labor Law. All interested in the jobs will receive training. It is estimated a total of 150 APs will be trained. In order to take affected women into consideration, if the women are willing, they are encouraged to take part in the construction and implementation of the project. According to the estimate, the above measures will bring at least 600,000 yuan of wages to the affected persons in total. Table 5-1 summarizes the direct project created job opportunities. Table 5-1 Direct Created Jobs by the Project Income Estimated annual position amount Employment time employee Working time Yuan/day income（yuan） After the beginning earthwork 30 Local 5 days/week 80 30000 of the project villagers Food and drink 50 Has begun with priority 5 days/week 50 12000 After the beginning Road caring 20 given to 3 days/week 50 10000 of the project land Gardening 20 Has begun acquisition 3 days/week 50 12000 Sanitation work 20 Has begun APs 5 days/week 50 12000 total 140 600,000

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

5.3.4 Training

76. Systematic skill training will be provided to the affected families annually and at least 50% women will be included. Based on the need of local industry structure, local governments will provide training on planting, agricultural machinery and marketing in order to make each family gain relevant employment skills. When the project is finished, the affected persons should receive skill training at least three times. See Table 5-2.

Table 5-2 Summary of Skill Training Plan

Year Target Scope Agency responsible Budget Gardening plant seedling plantation, fruit tree or other new cash crop plantation, PMO, women’s About CNY 1200 620,883 handicraft produce, farm federation, labor female and social security yuan included in 2015-2019 and 500 machinery, motorcycle or other bureau, agriculture project RP budget male vehicle repair, stonecutter, in addition to local painter, concrete worker, and forestry government fiscal waterproofing worker, masonry bureaus, township funds. worker, house decoration government, GEF worker, etc. consultants

77. In addition, the GEF consultants will carry out the training or workshop such as field school, alternative livelihood, rural business development, ecotourism, and wetland management, which will have direct benefits to the APs and indirect benefits to the region from the tourism operation.

5.3.5 Social security system

78. WLMIDZC printed and distributed Regulations on Social Pension Subsidy Issue Method for the Villagers Losing Land (Proposed Regulation). The regulation was in effective since January 1, 2011. The affected villagers of the project can enjoy the social pension subsidy issued by WLMIDZ. The main contents of the regulation are as follows: (i) For the villagers who is land-expropriated farmers (LEF) in the WLMIDZ, the social pension is mainly paid as social pension subsidy. (ii) Eligibility: a) those who have land use rights contract when the rural collective land is acquired; b) the farmland per capita is less than 0.3 mu (including 0.3 mu); 3) the male is 60 years old or older and the female is 55 years old or older. (iii) Subsidy standard: CNY 120 yuan per month for those who comply with the requirement. (iv) Disbursement procedure: The Human Resources and Social Securities Bureau of WLMIDZ will apply for subsidy to the Financial Bureau on 26 each month, and the Financial Bureau transfer the fund in full amount before 10 the next month. The Human Resources and Social Securities Bureau should disburse the subsidy to beneficiaries before 15.

79. Through the social security system, the APs who is elderly and hard to earn money from non- agricultural activities can improve their life and get sustainable protection.

5.4 Restoration Program for State-owned Land Occupation

80. During May-July 2018, the PMO, assisted with the Water Resources Bureau and Land Bureau of Pucheng County, held a series of villagers meeting in the affected villages in terms of the canals rehabilitation, land ownership, land utilization manner and applicable compensation policies. Through the consultation, the key findings are as follows:

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

1) Almost all villagers knew that the current status of the canals were poor and the agricultural production was low due to poor irrigation systems. APs widely support PIO implementing the canals rehabilitation which will benefit directly and significantly the local areas and HHs. 2) The villagers and village committees acknowledge the buffer zone boundaries of canals, which are the state-owned land alongside the main canals and branch canals. 3) Some crops currently cultivated by the APs in the scope of buffer zone will be affected by the canals rehabilitation temporarily during civil works, and the farmers’ young crops losses will be compensated as per relevant regulations and historical practices. 4) When the canals rehabilitation completed, the Canals Management Station under water bureau is committed that the affected farmers can continue to plant crops as usual as they did in history, and local farmers also promise to avoid any impact on the operation of these canals.

81. Besides compensation for the affected young crops, the Canals Management Station of Water Resources Bureau and the APs both agreed that the canals rehabilitation will directly benefit the local farmers, and the construction will be implemented in slack farming season and minimized the impact. After the rehabilitation, the APs can come back cultivating the vacant land within the buffer zone of canals under the management of Canals Management Station of Water Resources Bureau.

Translation: Statement on the land issues related to the Lubotan alkali drainage canals rehabilitation by Pucheng County Alkali Drainage Canals Management Station

1. Construction background

Lubotan alkali drainage canal system (LADCS) in Pucheng County is constructed intermitted by the local government since 1958, and the excavation for the alkali drainage canals resumed in 1969 and October 1971, and finally completed in May 1974 with the function that emitting the alkalinity into Luohe River. In the Spring of 1978, the government commenced on the Irrigation with Flood Works through inverting siphon Luohe River to Lubotan land by the Luohui Canal with a length of 9.35 km. On 1st July 1978, the saline-alkaline land with an area of 40 thousand mu in Lubotan sustainable improved by diverting the sand and soil from Luohe River. Due to the construction of alkali drainage canals, a large number of non-farming saline-alkaline land converted into the arable

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

land with a higher productivity, and the quantity of the arable land resources and the amount of agricultural income of farmers increased significantly. Due to the growth of aquatic plants and the sediment of sand, the alkali drainage canals must be dredged every three years according to the regulatory requirements. In fact, a systematic and overall dredging haven’t been executed because of the inadequate fund and maintenance in more than 40 years since the completion of canals. At present, many canals pooled with silt and water plants causing a severely difficulty in alkali drainage, and serious impact on the agricultural production and livelihood of local farmers, even property and safety due to flooding and waterlogging. Therefore, the villages and farmers living along the alkali drainage canals in Lubotan, always appeal and request the local township governments and county government to timely dredging the drainage systems and are willing to cooperate positively. 2. Management System

LADCS organized and constructed by the government, and the Alkali Drainage Canals Management Station (ADCMS) established as a subordinate of Pucheng County Water Resources Bureau in 1974 to take charge of the overall management and maintenance of the canals. According to the grade of canals, the main canals administered by ADCMS, the branch canals administered by the township governments, the tiny canals administered by the village committees. 3. Management scope

The management scope of LADCS is defined in accordance with the relevant laws and regulations, including Water Law of the People’s Republic of China (issued on 27th August 2009), Regulation of the People’s Republic of China on the Administration of River Courses (issued on 8th January 2011), Shaanxi Province Water Conservancy Administration Regulation (issued on 27th November 2014), Scope of Water Conservancy project management and protection in Pucheng County (issued on 29th June 2015). The specific regulations include: (1) Article 43 in Water Law of the People’s Republic of China: For water projects other than those prescribed in the preceding paragraph, the scope of project protection and the duties of protection shall be delimited according to the provisions of the people's governments of provinces, autonomous regions, and municipalities directly under the Central Government. (2) Article 20 in Regulation of the People’s Republic of China on the Administration of River Courses: the local people's governments at or above the county level are responsible for the delineation of the specific management scope of river courses. (3) Article 13 in Shaanxi Province Water Conservancy Administration Regulation: the people's governments at or above the county level are responsible for the delineation of the scope of management and protection of the state-owned water conservancy according to water conservancy design requirements. (4) Provision 3 of Article 5 in Scope of Water Conservancy project management and protection in Pucheng County: The protection area of general main canals, main canals, branch canals, tiny canals are delimited according to the opening line, respectively,12 meters, 10 meters, 6 meters, 4 meters. 4. Land use patterns for the canals rehabilitation

During the previous partial dredging on LADCS, the sludge typically stacked in rows along the protection area of the canals. After the canals repaired, some farmers gradually occupied the land within the protection area to cultivating crops, but the production was still lower than normal level. The cultivation not only brought slightly impact on the canals, but also increased the income of farmers, which is not prohibited by the ADMS. However, these activities do not change the land property right as the state-owned land and administrative privileges. In the long process of alkali drainage canals management, the ADCMS and the farmers formed the consensus and traditions that include: (1) the farmers along the canals are the direct beneficiaries of dredging project, they urgently hope that the ADCMS carry out regular drainage works every 3 years to improve the quality of farmland and agricultural products; (2) during the construction period of alkali drainage, the farmers who occupied the land within the protection area should positively cooperate the contractors with departing the land for construction on time; (3) the ADCMS should decide the construction commencement as much as possible in the slack season, shorten the construction period as much as possible during the implementation of the drainage works, which could avoid or reduce the crop losses for farmers; (4) if the losses of young crops are inevitable that meaningful consultations should be carried out with the APs and disburse appropriate compensation based on the consultation and actual facts; (5) when the canals rehabilitation is completed, the APs can come back cultivating the vacant land within the protection area of canals under the management of ADCMS. The actual cultivated land by the APs would not change, and the land ownership as well.

5. Land use patterns for the ADB project

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Because of the ADB project, the LADCS with a 40 years history will be systematic rehabilitated for the first time, which is a response to the demand of the local farmers and a great chance to directly improve the quality of land and agricultural products. Based on the relevant laws and regulations, historical experience and practice in consultation with the farmers, the ADCMS took part in the ADB project in the implementation stage, and will follow the traditional procedures described above to negotiate with the APs on land issues within the protection area, disburse the compensation for young crops to the APs according to the actual situation. After the canals rehabilitation is completed, the APs can come back cultivating the vacant land within the protection area of canals under the management of ADCMS. The actual cultivated land by the APs would not change, and the land ownership as well The land use patterns mentioned above are formed after the sufficient consultations among the township governments, village representatives, farmers and the ADMS, which got the reconfirmation and ensuring the smoothly project construction. Pucheng County ADMS August 10, 2018 Figure 5-1 Statement on Land utilization manner for the canals rehabilitation and Commitment of agricultural production after civil works completion by Canals Management Station

5.5 Restoration Program for Temporarily Occupied Land

82. In order to reduce inundated farmland area, measures of raising land elevation and restoring the land planting ability later will be taken. Land planting restoration measures, including backfilling, raising, irrigation and drainage facilities recovery, are prepared based on different usages of the temporary land occupation, and to restore the farmland gradually to original production capacity.

83. Planning scheme for land planting recovery measures is as follows: (1) Topsoil stripping: determine the thickness of the topsoil stripping according to the necessity of the characteristics of soil and surface soil fertility to the local crops before construction. Topsoil after stripping still has a good fertility, which needs special care. (2) Land parcel elevation: Raise land elevation after the topsoil stripping. The soil used for elevation is from Luyanghu area excavation soil. According to the early stage of the EIA report, reservoir water quality is for class III, and due to long-term immersion in water, the elevation used expanding excavation soil, there is no soil pollution problem. Block lifting height is generally at about 2 m, and the specific lifting height is determined according to the actual situation of field plots. (3) Topsoil recovery: Cover the stripping topsoil and make level after the completion of the block lifting. Combine with the deep tillage in the process of leveling, make irrigation and drainage facilities construction in order to achieve the goal of soil improvement. Considering land leveling and slope protection construction work amount, the investment is 400 Yuan/mu. (4) Planting recovery: within 3 years of land recovery after block lifting, deep tillage should be made, and meanwhile, increase organic fertilizer input every year so that the soil fertility gradually reaches or exceeds the original production levels, with organic fertilizer investment cost at 200 Yuan/mu.

84. Based on the above analysis and calculation, the land reclamation cost for the temporary land occupation is 600 Yuan/mu.

5.6 Compensation for Temporary Building Demolition 85. During the implementation of the project, the villagers’ residential houses will not be affected, but there are 18,326.62 m2 temporary building need to be demolished, and 175 villagers in 35 households will be affected by the demolition. The affected buildings are small and comprise mainly storehouse and work shed. The PMO negotiated with the affected persons and then decided to compensate based on replacement cost and without depreciation. The affected households can use the compensation freely to either rebuild structures or invest the funds elsewhere. After the negotiation with each affected household, the construction of the project will not affect the affected households seriously. The ground attachment within the acquired area is

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project salt pan, building for saltpeter (brick and wood building), facilities for saltpeter (pump, transformer, and wire), scattered trees, young crops, and so on.

5.7 Resettlement Program for Infrastructure and Ground Attachments

86. For production and living facilities affected by the Project (electric wires, cables and telegraph poles mainly), the design agency conducted an extensive survey on possible impacts on local residents’ production and livelihoods at the design stage by means of FGD and questionnaire survey. Most of the opinions collected during the survey have been incorporated into the project design, and the design agency has designed engineering measures for these facilities accordingly.

87. Special facilities affected by the Project (telegraph poles, electric wires, streetlamps, transformers, junction boxes) will be relocated by their proprietors with compensation according to their agreements with the government. Restoration measures for demolished facilities must be planned ahead, and suited to local conditions so as to be safe, efficient, timely and accurate, with minimum adverse impact on nearby residents. Affected special facilities will be demolished according to the construction drawings without affecting project construction and with minimum amount of relocation. Affected pipelines will be rebuilt before demolition (or relocated) without affecting daily livings of residents along such pipelines (including those not to be relocated).

5.8 Assistance Measures for Vulnerable Groups

88. A support fund for vulnerable groups of CNY 256,001 yuan will be established under the project to support vulnerable groups affected by the project. The main affected vulnerable groups are the poor, single parent family and women-led family, Wubao (five-guarantee households), households affected by disability and illness. A series of additional measures have been put in place to help them in livelihood restoration and relocation restoration.

(i) Giving priority to vulnerable groups in resettlement measures • Priorities will be given in obtaining replacement land through allocation of reserved land, or through land transfer if the vulnerable AH chooses to restore their income through agricultural measures; • The households with a labor force will be given priority in skill training and priorities given in provision of arranged jobs by the project and local government. • Eliminating zero employment of poor households (with a labor force) is the target of government poverty alleviation; it will also be the target of this project. • Include all eligible AH into LEF endowment insurance. The new rural endowment insurance will be an optimal option for the AH on a voluntary basis. • Provide preference loan to the significantly affected households if necessary in developing non-farming business, such as purchasing vehicles for transport business, operating repair shops, developing other income generating business.

(ii) Including eligible vulnerable groups in MLSS as a priority 89. According to the MLSS policy of Weinan Municipality for rural residence, eligible vulnerable groups affected by the Project will be included in the MLSS in time and receive MLSS benefits so as to ensure that the per capita net income of each rural AH is not less than CNY 2,500 yuan a year and the per capita income of each urban AH is not less than CNY 395 yuan/month.

(iii) Providing rural medical assistance to eligible vulnerable groups 90. Rural medical assistance will be provided to eligible vulnerable groups to solve their difficulty in receiving medical care. Weinan Municipality Government will provide medical assistance for the rural residents in line with the policies.

5.9 Protection of Women’s Rights and Interests

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

91. PRC has put the Protection Law of Women and Children of PRC in practice, which means that PRC government takes women’s rights and interests seriously. The law regulates that men and women have the same rights, women should not be looked down upon, and women’s rights and interests should not be deprived.

92. The measures taken to promote women’s development, the affected women have the right: i) Cash compensation or improvement of the quality of remaining land, and crop restructuring; ii) will receive compensation fees for land acquisition; iii)at least 50% of trainees of skills training will be women; iv) During construction, at least 30% of unskilled job opportunities will be offered to women in priorities; v) Employment arrangement for 200 female Aps; iv) Providing assistance together with the civil affairs department.

93. The protection of their rights and interests in the Project include: (1) Employment and business startup support At the RP preparation stage, women in the project area took an active part in the impact survey, and were consulted about ideas on income restoration programs. Women support the Project, and think the Project will improve drainage system and have moderate impact on the livelihoods of some APs. In addition, they expect cash compensation, job opportunities from the Project, and training on fruit cultivation, agritourism, stockbreeding and so on. Priority will be given to female labor in terms of skills training so as to ensure that their economic status and income. 1,000 person-times of APs will be trained, in which not less than 500 person- times (50%) will be provided to female labor. During project implementation, at least 30% of women will obtain unskilled jobs. In addition, women will receive equal pay for equal work like men do. However, employment of child labor is prohibited. To promote the business startup and employment of women, the Pucheng and Fuping County Women’s Association will organize business startup skills training and offer a series of subsequent services. With the reduction of land after LA, women will have more time and effort for business startup and have priority in applying for business startup funds. (2) Women’s equal rights in participating in the development of and making decisions on resettlement programs Women will receive relevant information during resettlement, and be able to participate in resettlement consultation. A special FGD for women will be held to introduce resettlement policies and improve their awareness. Women will have equal rights in attending, and speak and make decisions at village and group congresses to discuss resettlement programs, and not less than 30% of attendees will be women.

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

6 PUBLIC PARTICIPATION AND GRIEVANCE REDRESS

94. According to relevant policies of ADB and the PRC, provincial and municipal regulations on LAR, it is very necessary to conduct public consultation and encourage active participation of APs in project preparation and implementation stages in order to lay a solid foundation for the resettlement work, protect the lawful rights and interests of the APs, reduce grievances and disputes, and realize the resettlement objectives properly. Consultation has been fully highlighted during preparing RP, and organizing implementation.

6.1 Public Participation

6.1.1 Completed Public Participation Activities at Project Preparation and RP Preparation and Updating Stages

95. For all the information: affected population involved in the discussion of all the important issues during the preparation and updating phases of the resettlement plan. The PMO organized design agencies, RP preparation agency, local communities and APs to conduct public consultations and meetings from December, 2011 to July 2018. 96. In February 2012, with the help of consultants of the PPTA, RP preparation agency conducted socio-economic survey in the project area, and made the consultation with affected people on understanding and opinions of construction of the project as well as the development impacts of project to people. The design optimization to minimize impact of LAR was discussed too.

97. In May 2016, the PMO accompanied with the survey team of Shaanxi Academy of Social Sciences conducted a complementary survey on the LAR impact and the attitudes of the local residents living close to the alkaline drainage canals. The public strongly supported the project especially the canals rehabilitation which could improve the agricultural productivity. In terms of the land utilization impacts, the APs will be less affected by the cultivated land acquisition, and they’re satisfied with the compensation standards/ rates in line with applicable regulations and policies.

98. In July 2018, the Pucheng County Water Resource Bureau organized the negotiation meetings with the representatives of affected villages to discuss the canals rehabilitation and compensation (see meeting minutes in figure 6-1 and appendix 1).

99. The consultations included: (1) Forums. Understand the possible impacts of the project to the local inhabitants, consult the local cadres for specific suggestions and recommendations on implementation, and consult on the further identification of land ownership involved in the project scope. (2) Impact survey. The detailed information on population, houses, farmland, facilities, and affected groups is obtained on the basis of final design; understand the features of affected area on population, social and cultural and other aspects, the possible positive and negative impacts to the local inhabitants and their suggestions on the project. (3) Village committees were interviewed to understand the population and distribution of the village, social and economic development; (4) Conduct a socio-economic survey on the affected people with a questionnaire to gather household information and identify the basic situation of the affected HHs, perceptions and understanding of the project, the demand for loss compensation and future development of training.

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Luyang Village alkaline canal layout

A Statement of Fact The 3rd group of Luyang Village in Jingyao Town, has about 150 mu land located in the east of Nan’erzhen Road and the south of the village. Due to the low terrain and lack of alkaline drainage facilities, the floods often cause disasters, affecting the income of farmers and incurring strong responses and requests to build alkaline drainage ditch in a length of 300 meters for the village.

Luyang Village Committee July 12, 2018

Figure 6-1 The meeting minutes in Luyang Village on canals rehabilitation

Meeting Minute Topic: Discussion on the Alkaline drainage canals planning in Zhulei Village Time: July 14, 2018 Venue: Village committee Host: Lei Wenshe Recorder: Zhu Yongjun Zhu Shuangsuo, Lei Weishe, Zhu Yongjun, Li Xiaodang, Li Yongshe, Zhu Jianhui, Zhu Participant: Xinhu, Su Shuiping, Yuan Dingwang, Lei Zhicai, Zhu Shuiding, Zhu Xishi, Feng Ronghua, Lei Jinxian, Lei Runsheng Attendance Absentee Contents: Lei Wenshe: According to the information by the Water Resource Bureau, please express your opinions or propose a plan on the alkaline drainage canals in our village. Please speak below. Zhu Jianhui: The groundwater has risen, and the alkaline drainage canals must be repaired in our group. My opinion is that the scope of the rehabilitation should cover all the land from the south to the north of the railway. Zhu Xinhu: Our group request the same opinion that the rehabilitation scope must cover the land from the south to north of the railway. Su Shuiping: I agreed with the rehabilitation. Yuan Dingwang: I agreed with the rehabilitation. Lei Zhicai: I suggested that the rehabilitation scope should cover the land from the piggery to railway.

Figure 6-2 The meeting minutes in Zhulei Village on canals rehabilitation

100. Through public participation and meetings, as well as socioeconomic survey, it is found that the affected households’ concerns focused on the following aspects:

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

(1) For compensation issues, affected villagers who are planting crops pay more attention to the impacts of land occupation in buffer zone along canals. Overall, the affected farmers pay attention to the applicable compensation policy and standard firstly, and then they hope that the compensation can be in place in time. (2) For income restoration, the affected households hope that they can continue to plant crops after completion of civil works along cans as usual, and the local government will carry out a number of training on aspects as fruits planting, factory working and small business. Besides, the APs wished to get priority to the job opportunities during the project construction, etc. (3) 92.3% of the surveyed households have learnt the grievance and redress mechanism (GRM). According to the interview with villagers, most villagers like to solve general problems by themselves (with village committees). Most of concerns are as follows: getting government support for some special industries, for example, low-interest loans, and approval of preferential policies on catering services and relevant procedures, etc. (4) The project construction period shall be promptly released, and inform residents living in the vicinity of the construction sites.

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Table 6-1 Summary of Public Opinions Question Answer 1 Answer 2 Answer 3 Answer 4 Answer 5 Answer 1 Result Answer 2 Result Answer 3 Answer Result (%) Answer Result Answer (%) (%) 1 2 (%) 3 1 Are you aware that the Yes 83.53 Not clear 11.65 No 4.82 — — — — Project will be built? 2 Do you approve of the Yes 88.28 No 3.19 Don’t care 8.53 — — — — construction of the Project? 3 To what extent will the No 95.14 Slight 4.86 Serious - Very serious - — — unsound infrastructure affect your life and work? 4 Possible benefits of the Improving 97.17 Improving 85.63 Increasing job 75.43 Promoting 71.77 — — Project for you living working opportunities physical and environment environment mental health 5 Adverse impacts of the No adverse 72.19 Affecting 17.36 House demolition 3.45 Land 2.74 Other 4.46 Project on you impact traffic may cause acquisition economic losses. may reduce income. 6 Do you know the Yes 96.14 Somewhat 3.86 No - — — — — compensation and resettlement policies for land acquisition and building demolition? 7 Do you know the Yes 92.37 No 7.63 — — — — — — means of appeal when your lawful rights and interests are infringed on during land acquisition and building demolition? 8 Do you think the Urban- Yes 92.46 No — Not clear 4.15 — — — — villages reconstruction is acceptable?

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

101. Based on the above discussion, the PMO responds to the requirement as following measures: (1) The land ownership along the buffer zone of canals will be seriously checked and further -identified by the Pucheng County Land Resource Bureau and Water Bureau. If the arable land outside the buffer zone of main or branch canals with a property right of collective land will be occupied permanently, the affected villages and/or AHs will receive the compensation at a rate of CNY 28500 yuan/mu in a manner of collective land acquisition. (2) Regarding the land with crops within the buffer zone of main and branch canals, which was identified by the local government departments and local villager committees as the state-owned land, the APs will receive the compensation for their temporary losses of young crops at a rate of CNY 1000 Yuan/mu in Pucheng County and CNY 1300 Yuan/mu in Fuping County. And the APs can continue to utilize the vacant land in the buffer zone as usual as they did under the management of Water Resources Bureau. (3) The PMO will help the APs to rent the land in somewhere for operating saltpans. (4) In terms of the income restoration plan, the PMO will collaborate with the labor and social security bureau to design and implement the plan according to the public participation with APs. The PMO will require the contractors to make it a priority to engage the APs during the project construction.

102. Due to the RP updated for several times over the past 3 years, some HHs will be no longer affected by LAR of this project and no longer entitled to entitlements stipulated in table 4-6. On basis of FGDs in project area, they will directly benefit from the rehabilitated and improved alkali drainage canals through the expected increase in agriculture productions. Therefore, HHs who are no longer affected by LA (as well as other local farmers in project areas) strongly support the project.

6.1.2 Participation Plan at the Project Implementation Stage 103. With the development of the project preparation and implementation, the PMO, the township / street, village / community will undertake further public participation and consultation, including: discussion of land acquisition compensation standards; offered contents of training for the affected people; announce the problems encountered during project construction and the ways to solve; listen to the opinions and expectations of affected people during project implementation process; announce compensation standards, complaint channels; understand the implementation of the resettlement plan, affected people’s livelihoods restoration, etc.

Table 6-2 Public Participation Plan Purpose Method Time Agency Participants Topic Distribute final Disclose 2018 updated RP in Announce compensation updated RP and August PMO, relevant offices All APs standards, complaints and information 2018 WLMIDZ and booklets to appeal channels, etc. booklets all AHs Disclose 2018 ADB August ADB updated RP website 2018 Announce land Affected village PMO, LRB, acquisition April Announce the scope of land bulletin board / the affected notice and 2014- All APs acquisition area, village villages’ compensation 2019 compensation rates meetings cadres policies • Finding out anything PMO, DI, omitted to determine the LRB, the final impacts DMS result 2014- Field survey affected All APs • Preparing a list of lost land verification 2019 villages’ & assets cadres • Preparing a basic compensation agreement 48

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Determination PMO, LRB, Discussing the final income village meeting 2014- of income town and All APs restoration program and the (many times) 2019 restoration plan village officials utilization of compensation April PMO, LRB, LAR 2014- All affected Sign agreement and disburse Field work the affected Implementation December households compensation villages 2018 PMO, LRB, • Resettlement progress April the affected Resettlement and impacts Household 2014- villages, the sampling Monitoring & • Payment of compensation interview December external APs Evaluation • Information disclosure 2019 monitoring • Livelihood restoration, etc. agency 6.2 Grievances and Appeals 6.2.1 Grievance Redress Mechanism

104. Since public participation is encouraged during the preparation and implementation of this RP, no substantial disputes are expected to arise. However, unforeseeable circumstances may arise during this process. In order to address issues effectively, and ensure the successful implementation of project construction and LA, a transparent and effective grievance redress mechanism has been established. The basic grievance redress mechanism is as follows: Stage 1: If any AP is dissatisfied with the RP implementation, he/she may file an oral or written appeal to the village committee orally or in writing. In case of an oral appeal, the village committee shall handle such appeal and keep written records. Such appeal should be solved within 2 weeks. Stage 2: If the AP is dissatisfied with the disposition of Stage 1, he/she may file an appeal to the town government after receiving such disposition, which shall make a disposition within 2 weeks. Stage 3: If the AP is dissatisfied with the disposition of Stage 2, he/she may file an appeal to the WLMIDZ Committee after receiving such disposition, which shall make a disposition within 2 weeks. Stage 4: If the AP is dissatisfied with the disposition of Stage 3, he/she may file an appeal to the Municipality PMO after receiving such disposition, which shall make a disposition within 2 weeks. The AP can also appeal to the Municipal PMO at any time.

105. At any time, the AP may also bring a suit in a civil court in accordance with the Administrative Procedure Law of the PRC. Affected persons can decide to go through the legal system directly or may decide not to use project level grievance channels. An aggrieved person may also express grievance to the external monitor, who would then report it to PMO and IA. Alternatively, the aggrieved person(s) may submit a complaint to the ADB project team to try to solve the problem. If good faith efforts are still unsuccessful, and if there are grievances that stemmed from a violation of ADB’s safeguard policy, the affected persons may appeal directly to ADB in accordance with ADB’s Accountability Mechanism (2012)5t.

106. All grievances, oral or written, will be reported to ADB in internal and external resettlement monitoring reports.

107. All agencies will accept grievances and appeals from the affected persons for free, and costs so reasonably incurred will be disbursed from contingency costs. The above appeal channel will be notified to APs at a meeting or otherwise, so that APs are fully aware of their right of appeal. Mass media will be utilized for publicity, and opinions and advice about resettlement will be compiled into messages for study and disposition by the resettlement agencies. PMO will keep records of the grievances and actions taken and on request these records will be made available for review by the ADB missions.

5 For more information, see http://www.adb.org/site/accountability-mechanism/main. 49

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Figure 6-3 Appeal and Complaint Procedures 6.2.2 Recording, Tracking and Feedback of Grievances and Appeals

108. During the implementation of the RP, the resettlement agencies should register and manage appeal and handling information, and submit such information to the PMO in writing on a monthly basis. The PMO will inspect the registration of appeal and handling information regularly, and will prepare a registration form for this purpose, as shown below. Table 6-3 Registration Form of Grievance and Appeals Accepting Agency: Date: Location: Appellant Appeal Expected Solution Proposed Solution Actual handling

Appellant (signature) Recorder (signature) Notes: 1. The recorder should record the appeal and request of the appellant factually. 2. The appeal process should not be interfered with or hindered whatsoever. 3. The proposed solution should be notified to the appellant within the specified time.

6.2.3 Contact Information for Grievances and Appeals

109. The resettlement agencies will appoint persons chiefly responsible to accept and handle grievances and appeals.

110. Due to the RP and the cut-off date of entitlement updated for several times over the past 3 years, some HHs will be no longer affected by LAR of this project and no longer entitled to entitlements stipulated in table 4-6. According to the pubic consultation and M&E reports, there is no complaint or appeal because of changes of cut-off dates and subsequent changes of entitlement so far.

Table 6-4 Agencies Accepting Grievances Agency Responsible person contract Weinan PMO Zhang Tao 0913-3338068 WLMIDZ Committee Lian Jian 0913-3338283 Resettlement Implementing Agency Li Tianjiang 13992357888 Dangmu Town Wang Jun 13992313253

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

7 ORGANIZATION STRUCTURE AND RESPONSIBILITY 7.1 Resettlement Implementing Agencies

112. The Weinan Municipality Government (WMG), which is the executive agency (EA), has established appropriate agencies and strengthened the capacity to ensure successful project and resettlement implementation. The agencies responsible for the planning, management, implementation and monitoring of the project’s resettlement activities are: • Project Leading Group (PLG) • Weinan Luyanghu Modern Industrial Development Zone Management Committee (Implementation Agency, WLMIDZMC) • Weinan Project Management Office (PMO) • Project Implementation Office (PIO) • Luyanghu Land Resources Bureau (LRB) • Luyanghu Labor and Social Security Bureau • Pucheng County Water Resources Bureau (WRB) • Fuping County Water Resources Bureau (WRB) • Township Government • Affected Village Committees • Design Institute • External Monitoring and Evaluation Agency

Project Leading Group (PLG)

Design Weinan Luyanghu Modern Institute Industry Development Zone Committee (IA) Project Management Office Project Implementation (PMO) Office (PIO)

Internal Land Water Labor and Social M&E Resources Resources Security Bureau Bureau Bureau External M&E Agency

Township government

Land Acquisition Affect Persons Affected Villages

Figure 7-1 Organization Chart of the Relevant Resettlement Implementation Agencies

7.2 Assignment of Responsibilities

(1) Project Leading Group • Responsible mainly for the decision-making and leadership of the Project, coordinating the departments of Weinan Municipality Government related to the Project. 51

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

(2) WLMIDZC • Responsible for organization, coordination and policy formulation of the LAR of the project; review and approval of resettlement plan; supervising resettlement internal monitoring; leading the project construction and solving major problems that occur during the resettlement implementation. (3) Weinan PMO • Entrusting the design institute to define the project impact scope; • Organizing the socioeconomic survey; • Organizing and coordinating the preparation of the RP; • Implementing the policies in the RP; • Coordinating the implementation of the RP according to the construction schedule; • Directing, coordinating and supervising resettlement activities and their progress; • Organizing and implementing internal monitoring, selecting an external M&E agency, and coordinating with external M&E agencies; • Reviewing monitoring reports; • Coordinating and handling conflicts and issues arising from implementation; • Coordinating and handling disputes and appeals; • Resettlement document management; • Reporting resettlement progress, fund use and implementation quality to ADB regularly; • Assisting ADB officers and specialists working on the project sites during the project preparation and implementation; • Communicating with external M&E agency; • Coordinating income restoration measures of affected people; • Organizing public participation and consultation activities; • Inspecting progress of LAR; • Resettlement information management; • Submit external monitoring report to ADB; and • Training resettlement staff. (4) Project Implementation Office • Signing contracts with the contractors and suppliers; • Implementing the construction schedule; • Disbursing funds and supervising the use thereof; • Signing temporary land occupation agreement with affected villages; (5) Luyanghu Land Resources Bureau • Conducting physical survey and recording, and investigating baseline of land acquisition and house demolition; • Formulating compensation standards for land acquisition and house demolition, and apply it for approval of relevant government departments; • Handling project land use application procedures and applying land use planning license and land use construction license. (6) Luyanghu Labor and Social Security Bureau • Coordinating public participation and consultation activities; • Implementing income restoration measures of affected people. (7) Pucheng County Water Resources Bureau • holds the management rights to the canals within Pucheng County; • coordinate LAR for Component 1 on the use of the state-owned land; • supervise and implementing the construction schedule for Component 1. (8) Fuping County Water Resources Bureau • holds the management rights to the canals within Fuping County; • coordinate LAR for Component 1 on the use of the state-owned land; • supervise and implementing the construction schedule for Component 1. (9) Township Government • Participating in the survey of the project, and assisting in the preparation of the RP; 52

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

• Participating in the disbursement and management of land compensation to APs; • Organizing public participation, and communicating the resettlement policies; • Organizing skills training for APs; • Implementing, inspecting and recording all resettlement activities within its jurisdiction; • Supervising LAR and reporting the information to the LRB and PMO; • Coordinating and handling conflicts and issues arising from its work； • Handling disputes and appeals during the resettlement plan implementation. (10) Village Committees • Participating in the socioeconomic survey and DMS; • Organizing public consultation, and communicating the policies on LAR; • Paying and managing relevant funds of affected households; • Reporting the APs’ comments and suggestions to the competent authorities; • Reporting the progress of resettlement implementation to the PMO; • Providing assistance to vulnerable households. (11) Design Institute • Reducing impacts of LA and resettlement of the project through design optimization; • Identifying the scope of LA and resettlement.

(12) External Monitoring and Evaluation Agency • During the implementation of the resettlement plan, monitoring and evaluation of the implementation and LAR activities regularly twice a year； • Monitoring progress, quality, funding for resettlement, and give advices; • Verifying the data and conclusions of the internal monitoring reports; • Submitting monitoring and evaluation report every six months to PMO and ADB.

7.3 Staffing and Equipment

7.3.1 Staffing

113. To ensure the successful implementation of the resettlement work, the EA/IA will ensure with full-time staff trained and experienced in implementation of the RP who will be assisted by required staff and will provide adequate resources. Each agency is composed mainly of 3 to 6 administrative staff members and specialized technicians, all of whom have certain professional and management skills, and considerable experience in LA, HD and resettlement. A smooth channel of communication has been established. See Table 7-1.

Table 7-1 Agencies Staffing for Resettlement Agency Person responsible Workforce Composition WLMIDZC Shi Xiaopeng 3 Civil servants PMO Liang Bo 3 Civil servants PIO Chen Xuan 2 Civil servants Weinan Financial Bureau Jia Hongjun 2 Civil servants Luyanghu LRB Zhang Tao 3 Civil servants Pucheng WRB Wang Hongwei 4 Civil servants Fuping WRB Jing Tao 2 Civil servants Resettlement Wang Jun 6 Civil servants implementing agencies Township governments 6 Civil servants Village committees 71 Village officials External M&E Agency 6 Experts

114. The resettlement agencies of the Project have many years of LA and HD experience from domestic construction projects, and are familiar with the applicable domestic regulations, but are handling the resettlement work of an ADB-financed project for the first time. Although they have

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project a certain understanding of ADB’s resettlement policy and requirements, measures will still be taken to improve institutional capacity.

7.3.2 Equipment

115. All resettlement agencies have been provided basic office, transport and communication equipment, including desks and chairs, PCs, printers, telephones, facsimile machines and vehicles.

7.4 Capacity Enhancing Measures of Resettlement Agencies

116. In order to implement resettlement successfully, the resettlement staff must be trained under a program developed by the PMO.

7.4.1 Resettlement management staff training plan

117. The Weinan PMO will take the following measures to enhance institutional ability to better implement resettlement plan, guarantee the benefits of affected persons and meet the overall planning of project schedule, and build personnel training and human resources development system of Pucheng and Fuping County resettlement agencies, as well as village officials. Training intends to take the form of specialist seminar; each agencies set up technical training course, or study tour on other resettlement projects, and site training by technical and managerial staffs.

118. Training content includes:  Principles and policies of ADB’s involuntary resettlement;  Latest changes of national land acquisition and resettlement policy, international resettlement experience; • Resettlement implementation plan design; • Resettlement implementation progress management and working procedure; • Issues that need attention during resettlement implementation; • Resettlement financial management; • Resettlement project quality control; • Resettlement information system; • Resettlement monitoring and evaluation; • Resettlement project management.

7.4.2 Measures for improving resettlement agencies

• Leadership responsibility system: the county leader shall be in leading position and the leaders of government relevant departments to form a strong leadership. • Well-defined responsibilities: clearly define the duties and responsibilities of resettlement agencies of all levels, and strengthen supervision and administration according to the requirements of ADB and relevant laws and regulations of the country. • Equipped with high-quality staff: gradually enhance the capacity of resettlement agencies of all levels, especially professional technical force, the staff shall have certain special skill and managerial quality, and is required to have strong overall point of view, policy level, professional skill, especially mass work experience, and strengthen the technical equipment such as computer, monitoring device, transport, etc. • Select staff strictly and strengthen business technical training, and carry out training for administrative staff and technical staff to improve their business ability and management ability. • Guarantee appropriate number of woman cadres to give full play of woman during resettlement implementation process.

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

• Establish database and strengthen information feedback to make sure the information channel is smooth, significant problems shall be solved by resettlement leading group decision & solution. • Strengthen reporting system, and intensify internal monitoring, solve problems in time. • Establish external monitoring and evaluation mechanism, and early warning system. • Bring the public participation and supervision into play: open all resettlement information to the public and the society, and accept the supervision of the public at any time.

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

8 RESETTLEMENT BUDGET 8.1 Estimated Budget

119. In the general budget, direct resettlement costs include compensation for PLA, TLO, the demolition of temporary building and ground attachments, as well as planning and monitoring costs, administrative costs, training costs and contingencies, etc.

120. The general resettlement budget of the Project is CNY61.98 million yuan, including compensation for rural land acquisition of 49.635 million yuan or 80.08% of the budget, compensation fees for temporary land occupation of 0.630 million yuan or 1.02% of the budget, land taxes of 4.02 million yuan or 6.49% of the budget, indirect costs of 7.44 million yuan or 12.00% of the budget. The general resettlement budget will be included in the overall costs of the Project. See Table 8-1 for details. Table 8-1 Resettlement Budget

Compensation Rate Cost Rate NO. Item Unit Amount Unit Number CNY'000 % A Permanently occupied land mu 4516.98 49,635.15 80.08% A1 permanently occupied land mu 4516.98 49,635.15 A1.1 Farmland mu 226.34 yuan/mu 28500/31063 6,450.69 A1.2 Waste land（salt pan） mu 2892.71 yuan/mu 5,000 14,463.55 State-owned land (only for A1.3 Mu 1397.93 yuan/mu 1000/1300 1,763.91 young crop losses) A2 Ground attachments 26,957.00 A2.1 Young crop mu 226.34 yuan/mu 1000/1300 4,570.38 A2.2 Salt-pans construction subsidy mu 2892.71 yuan/mu 1000 2,892.71 A2.3 Tree tree 1814 330.6 A2.3.1 Wood tree tree 1218 yuan/tree 100 121.8 A2.3.2 Fruit tree tree 696 yuan/tree 300 208.8 A2.3 Temporary buildings m2 18326.62 yuan/m2 500 9,163.31 A2.4 Special facilities 10,000.00 B Temporarily occupied land mu 242.5 630.50 1.02% B1 farmland mu 242.5 yuan/mu 2,000 485.00 B4 Restoration of farmland mu 242.5 yuan/mu 600 145.50 A+B 50,265.65 81.10% C Subsidy for vulnerable group (A+B) 0.50% 251.33 0.41% D Other costs 7,439.32 12.00% D1 RP preparation (A+B) 0.30% 150.79 D2 Administration (A+B) 3.00% 1507.96 D3 Skill training (A+B) 1.00% 502.65 D4 External monitoring (A+B) 0.50% 251.32 D5 Contingency (A+B) 10.00% 5026.56 E LA Tax/fees 4,024.69 6.49% E1 Farmland reclamation fee mu 226.34 yuan/mu 6,670 1,509.69 E2 Farmland occupation tax* mu 226.34 yuan/mu 15,008 0.00 Newly incremental construction E3 mu 226.34 yuan/mu 6,670 1,509.69 land fee E4 LA administration fee (A+B) yuan/mu 2.00% 1,005.31 Total 61,980.98 100.0% Note: The farmland occupation tax (3.40 million yuan) is to be waived since the project is categorized as public interest project 56

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

8.2 Annual Investment Plan 121. All resettlement funds of the Project are from Weinan Municipality local counterpart funds. Before or during project construction, the civil works and resettlement plan will be implemented in stages in order not to affect the production and livelihoods of the AHs. See Table 8-2.

122. The basic resettlement cost (disbursed to the APs and affected villages) is around 50.3 million in total, of which 38.4 million have been paid to the APs as of July, 2018, accounting for 76%. The rest LAR budget is mostly compensation for young crops with less financial pressure to the PMO. Table 8-2 Annual Resettlement Investment Plan

Year 2015 2016 2017 2018 2019 Total Investment (1000 yuan) 20000 15000 10000 10000 6,980.98 61,980 Percent (%) 32.3% 24.2% 16.1% 16.1% 11.3% 100.0% 8.3 Disbursement and Management of Resettlement Funds 8.3.1 Management of Resettlement Funds 123. During the project implementation, Weinan Municipality Government will pay the compensation funds to relevant entities or individuals according to the compensation policies and standards confirmed in Updated Resettlement Plan. The disbursement flow is as follows:

Weinan Municipality Government

WLMIDZC

Project Implementation Office (PIO)

Township government Construction cost Young crops Resettlement allowance Attachments compensation Attachments compensation Land compensation Resettlement allowance

Saltpan Affected Compensation Farmland Acquisition APs Villages allocation Acquisition APs

Figure 8-1 Flowchart of Resettlement Fund Disbursement 8.3.2 Disbursement of Resettlement Funds

124. Resettlement funds must be disbursed in strict conformity with the applicable state laws and regulations, and the policies and compensation rates specified in the Updated RP. Land compensation fees and resettlement allowances will be paid directly to the affected villages, and then allocated the compensation based on the villager representatives meeting; compensation fees for young corps will be paid directly to the APs; compensation fees for infrastructure and ground attachments will be paid to the entities and individuals concerned.

125. In order that resettlement funds are available timely and fully to ensure the restoration of the production level and living standard of the AHs, the following measures will be taken: • All costs related to resettlement will be included in the general budget of the Project. • Land compensation fees and resettlement allowances will be fully paid before LA to ensure that all APs are compensated/resettled properly. • Compensation fees for temporary building will be paid to the AHs after the signature of compensation agreements and prior to demolition.

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

• Financial and supervisory agencies will be established at different levels to ensure that all funds are fully and timely available. • The budget is an estimate of resettlement costs, which may vary due to any variation in the DMS results. The budget will be revised as necessary in consideration of contingencies.

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

9 RESETTLEMENT IMPLEMENTATION PLAN 9.1 Principles for Resettlement Implementation

126. According to the project implementation schedule, the Project will be constructed from 2013 to 2020. In order that the resettlement schedule links up the construction schedule of the Project, land acquisition began in December 2012 and will end in December 2018, while income restoration will continue until the project completion. The basic principles for resettlement implementation are as follows: • LAR should be completed at least 1 months prior to the commencement of construction, and the starting time will be determined as necessary. • During resettlement and project implementation, the APs shall have opportunities to participate in the Subproject. Before the commencement of construction, the range of LAR will be disclosed, the RIB distributed and public participation activities conducted properly. • All compensation fees will be paid to the affected proprietors directly and fully within 3 months of approval of the resettlement and compensation program. No organization or individual should use compensation fees on their behalf, nor should compensation fees be discounted for any reason.

9.2 Resettlement Implementation Schedule 127. The general resettlement schedule of the Subproject has been drafted based on the progress of project construction, LA and HD, and resettlement preparation and implementation. The exact implementation schedule may be adjusted due to deviations in overall project progress. See 128. Table 9-1.

Table 9-1 Resettlement Milestones Agencies No Task Target Time Status responsible 1 Information Disclosure Disclosure (through RIB) of final 1.1 APs PMO, LRB Aug 2018 updated RP 1.2 Disclosure of the original RP ADB’s website IA, PMO and ADB Oct. 2012 Completed 1.3 Disclosure of the: first updated RP ADB’s website IA, PMO and ADB Aug. 2015 Completed 2016 updated RP ADB’s website IA, PMO and ADB Aug. 2016 Completed 2018 updated RP ADB’s website IA, PMO and ADB Aug. 2018 2 RP and Budget Oct. 2012 Approval of RP and budget and Aug 2.1 budget WNG Ongoing (including compensation rates) 2016, Aug 2018 Relevant documents and All affected Oct. 2012- 2.2 PMO comments villages Dec. 2020 3 DMS All affected land 3.1 Conduct DMS PMO, LRB, DI 2014-2018 and attachments 3.2 Final RP based on the DMS Final RP PMO, DI Aug 2018 4 Compensation Agreement 4.1 Sign the LAR agreement with APs APs PMO, PLG 2014-2018 Ongoing APs, affected 4.2 Pay the compensation PMO, LRB 2014-2018 Ongoing villages 5 Resettlement and Rehabilitation Town governments, 5.1 Trainings to the APs APs 2014-2019 labor &social security bureau

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Agencies No Task Target Time Status responsible Town Advice on income restoration, governments, 5.2 APs 2014-2019 commerce and work labor &social security bureau Identifying vulnerable households Civil affairs 5.3 and implementing assistance Vulnerable group 2014-2018 bureau, PMO measures PMO, contractor, APs engagement at the 5.4 APs labor &social 2014-2019 construction stage security bureau 6 Capacity Building Villages, town Establish resettlement office at 6.1 government, PMO 2014-2018 Done different levels PMO, PLG Resettlement training to all staff of 6.2 All staff PMO, PMC 2015-2018 Ongoing resettlement offices 7 Monitoring and Evaluation Establish and operate internal 7.1 M&E PMO 2014-2019 mechanism 7.2 The external monitoring contract PMO 2014-2018 Ongoing external M&E 7.3 Baseline survey 2015-2016 agency Twice 7.4 Internal social monitoring report Semi-annually IA, PMO every year Twice 7.5 External social monitoring report Semi-annually external every year PMO and external 7.6 Resettlement completion report One Mar, 2020 M&E agency 8 Public consultation IA, PMO Ongoing IA, PMO, village 9 Grievance redress Ongoing committees 10 Compensation Disbursement 10.1 Disbursement to IA Initial funds Annually 10.2 Disbursement to villages most funds IA Ongoing IA, village 10.3 Disbursement to households most funds Ongoing committees IA, PIO, PMO, 11 Civil works 2014-2019 contractors

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

10 MONITORING AND EVALUATION 10.1 Internal Monitoring

129. In order to ensure the successful implementation of the RP and realize the objectives of resettlement properly, land acquisition and resettlement activities of the project will be subject to periodic M&E according to ADB’s resettlement policy requirements, including internal and external monitoring.

10.1.1 Scope of Internal Monitoring

130. Internal monitoring will cover the following: (1) Organizational structure: setup, division of labor, staffing and capacity building of resettlement implementation and related agencies; (2) Resettlement policies and compensation rates: development and implementation of resettlement policies; actual implementation of compensation rates for different types of impacts (PLA, TLO, HD, relocation of entities and professional facilities), with particular focus on compliance with the rates in the RP and reasons for deviations; (3) LA, HD and resettlement progress: overall and annual schedules, resettlement agencies and staffing, LA and HD progress, construction progress of special facilities, progress of other resettlement activities (see Table 10-1 for the format). (4) Resettlement budget and implementation thereof: level-by-level disbursement of resettlement funds, fund use and management, disbursement of compensation fees to proprietors, holders of land use rights and land users, village-level use and management of compensation fees, supervision and auditing of fund use; (5) Employment and resettlement of APs: main measures of resettlement, employment and resettlement of APs in entities, resettlement of vulnerable groups, effectiveness of resettlement; (6) Restoration of professional facilities (power and water supply, communication and traffic facilities, and pipelines, etc.); (7) Grievance redress, public participation and consultation, information disclosure, and external monitoring: appeal channel, procedure and agencies; key points of appeal and handling thereof, key activities and progress of public participation and consultation, RIB and information disclosure, external M&E agency, activities and effectiveness; (8) Handling of relevant issues in the Memorandum of the ADB Mission; and (9) Existing issues and solutions. Table 10-1 Sample Schedule of Resettlement Progress Agency: Reporting date: (MM/DD/YY) Resettlement activity Unit Planned Completed Cumulative Proportion Total Completed Fund allocation Permanent land acquisition Temporary land occupation Temporary building demolition Prepared by: Signature of person responsible: stamp:

10.1.2 Methodology of Internal Monitoring

131. For internal monitoring, a normative, smooth resettlement information management system should be established among the PMO, PMC and resettlement agencies concerned to track and reflect the progress of resettlement, including the progress, quality and funding of resettlement, and collate and analyze such information. 132. The following measures will be be taken in the Project to implement internal monitoring: 61

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

(1) Normative statistical reporting system The PMO, WLMIDZ will develop uniform report forms to reflect the progress of disbursement of resettlement funds, LA and HD. Such forms will be submitted monthly. Table 10-2 Sample Monitoring Form Updated Completed Completed Total Item RP Actual RP to date in total percentage Area (mu) PLA AHs APs Area (mu) TLO AHs APs Area (m2) HD AHs APs Compensation (Yuan)

(2) Regular or period reporting Information on issues arising from resettlement will be exchanged in various forms between the resettlement agencies and the external M&E agency. (3) Regular meeting During resettlement implementation, the PMO will hold resettlement coordination meetings regularly to discuss and handle issues arising from project and resettlement implementation, exchange experience and study solutions. (4) Inspection The PMO will conduct routine and non-routine inspection on the resettlement work of the IA and the resettlement agencies, handle resettlement issues on site, and verify the progress of resettlement and the implementation of resettlement policies. (5) Exchange of information with the external M&E agency The PMO will keep routine contact with the IA and the external M&E agency, and take findings and opinions of the external M&E agency as a reference for internal monitoring.

10.1.3 Interval and Reporting of Internal Monitoring 133. Internal monitoring is a continuous process, in which comprehensive monitoring activities will be conducted semiannually. Internal monitoring reports will be submitted by the resettlement agencies to the IA and PMO. The PMO will compile relevant data and information, and submit an internal monitoring report to ADB semiannually.

10.2 External Monitoring

134. The PMO engaged Shaanxi Kexin Consulting Company as the external M&E agency from April 2014 until the end of 2017. The PMO intended to engage the Northwest A&F University to conduct the external resettlement monitoring and evaluation from August 2018 onwards, and the communication and agreement signature process is underway. The external M&E agency should: • have participated in similar tasks, have rich experience in socioeconomic survey, and understand ADB’s policy on involuntary resettlement, and the state and local regulations and policies on resettlement; • be able to conduct socioeconomic survey independently, have good communication skills; and • include a certain percentage of females. The external M&E agency will conduct follow-up M&E of resettlement activities periodically, monitor resettlement progress, quality and funding, and give advices. It shall also conduct

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project follow-up monitoring of the APs’ production level and living standards, and submit M&E reports to the PMO and ADB.

10.2.1 Scope and Methodology of External Monitoring (1) Baseline investigation 135. The external monitoring agency will conduct the required baseline investigation of village groups, from which, the baseline information of the production and livelihoods levels of the APs will be acquired, including the levels of livelihoods, production and income. The investigation of production and living levels will be conducted on semi-annual basis to follow up the changes of the APs in this connection. This is to adopt the methods of typical sample follow-up survey, casual interviewing and site visit, etc. to acquire necessary relevant information. Accordingly, the statistical analysis will be made on this basis, and thus the evaluation will be made.

(2) Periodic Monitoring & Evaluation 136. During the implementation of the RP, the external M&E agency will conduct periodic follow-up resettlement monitoring semiannually of the following activities by means of field observation, panel survey and random interview: • To check if the land acquisition, housing demolition, compensation, and relocation and economic rehabilitation is carried out according to RP. • To ensure if the activities are completed that should be completed before the construction. • To verify the general target of land acquisition, housing demolition and resettlement compensation, rehabilitation and implementation degree of RP. • To assess if the compensation amount matches the property loss and whether the APs can restore or improve their original income levels. • To assess how satisfied the APs are with the land acquisition, housing demolition, compensation, relocation, economic rehabilitation and living conditions. • Satisfaction degree of APs about land acquisition and resettlement and quality and quantity of any redistribution land. • Satisfaction degree of APs about location of resettlement and difference of environment with the original location, when applicable. • Satisfaction degree of APs about compensation standard and method of dismantled houses, buildings, ground attachments. • Satisfaction degree of APs about the compensation rates • In the course of acquisition and resettlement, whether relevant institutions and local government consulted fully with and assisted APs and whether any forced/rushed dismantling and resettlement happened. • Supervision on fund flow of land acquisition and resettlement. • Assess whether local people have benefitted from the project • Assess if the female APs are compensated/resettled properly and what is the effect of the project to local gender status • Assess if the vulnerable groups are compensated/resettled properly, and if additional assistance have provided to them and if their livelihoods are better than before • Assess if IA and EA organized effective participation/consultation with the affected persons; if the APs are satisfied with these and what aspects they want to improve • Other issues, as applicable.

137. The external M&E agency will attend public consultation meetings held during resettlement implementation to evaluate the effectiveness of public participation.

(3) Grievance redress 138. The external M&E agency will visit the affected villages and groups periodically, and inquire the PMO and resettlement 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. 63

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

10.2.2 External Monitoring Reporting

139. The external M&E agency will submit monitoring or evaluation reports to ADB and PMO semiannually. See Table 10-3. Table 10-3 Reporting Schedule of External Monitoring & Evaluation No. Report Date 1 Baseline survey report June 2014 2 Monitoring & Evaluation Report (Issue 1) July 2015 3 Monitoring & Evaluation Report (Issue 2) January 2016 4 Monitoring & Evaluation Report (Issue 3) July 2016 5 Monitoring & Evaluation Report (Issue 4) January 2017 6 Monitoring & Evaluation Report (Issue 5) July 2017 7 Monitoring & Evaluation Report (Issue 6) October 2018 8 Monitoring & Evaluation Report (Issue 7) April 2019 9 Monitoring & Evaluation Report (Issue 8) October 2019 10 Resettlement Completion Report March 2020

10.3 Post-Resettlement Evaluation

140. After project implementation, the PMO (or through the external M&E agency) will apply the theory and methodology of post-resettlement evaluation to evaluate the Project’s resettlement activities on the basis of M&E to obtain successful experience and lessons in LA and HD as a reference for future work. A post-resettlement completion report will be submitted to ADB (see above schedule for the external M&E agency reports).

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

APPENDIXES Appendix 1: Notice on Land Acquisition and Implementation Scheme for Ecological Environment Project, Dredging and Rehabilitation of Main Desalination Drainage Channels in Weinan Luyanghu Modern Industries Development Zone (No.53 document issued on April 9, 2014 by the Office of Pucheng County Government)

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Appendix 2: Meeting minutes on the canals rehabilitation and losses compensation in 2018

All the villages agreed with the PMO on the canals rehabilitation and compensation, the consultations usually include two parts, one is the layout of canals rehabilitation, the other is the agreed keynotes. Takes Tianshuijing Village for example on meeting minutes.

Village Meeting Minutes of the Tianshuijing Village in Pucheng County

On July 13, 2018, a villagers meeting held in the Tianshuijing Village Committee to discuss the land acquisition issues for the construction of ADB loan Shaanxi Weinan Luyang Integrated Saline Land Management Project, and finally formed the conclusions as follows:

According to the policy “Interim Regulations on Alkali Remove and Drainage Engineering in Pucheng County”, the protection area of alkali drainage canals is not allowed to pile up straw, sundries, rubbish, not to dig sand or take the soil, not to establish the permanent structures. The local villagers can grow seasonal crops when the protected areas are stand idle and not under construction. The cultivated land is essential and the most important resources to the agricultural production. The fertility of cultivated land directly impacts the sustainable development and food security in agricultural sector. The quantity and quality of the cultivated land directly impact the agricultural industrial structure, land productivity and the quality of agricultural products. The construction and maintenance of alkali-discharging canals can improve the crop production in a larger area, which is eager by the villagers as a project for people's well-being.

The land acquisition will meet the requirements based on the actual construction scope of land utilization and machinery workings. The village committee promised that the issues related to the crops and attachments involved in the boundary of works area will be positively cooperated and unconditionally solved.

Pucheng County Jingyao Town Tianshuijing Village Committee July 13, 2018

Participants signature: Dang Guanghui, Wu Zhenlong, Liu Shuangfang, Kou Hu Wu Dingben, Chang An’min, Wu Baimao, Lv Xinli Wang Wen’ge, Wu Baifan

Tianshuijing Village 1 Tianshuijing Village 2

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Luyang Village Yuanwang Village 1 Yuanwang Village 2

Yuanren Village Changjia Village 1 Changjia Village 2

Wujiazhai Village Yanwang Village 1 Yanwang Village 2

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Xincheng Village Mingde Village 1 Mingde Village 2

Pule Village Zhulei Village 1 Zhulei Village 2

Wangzi Village 1 Wangzi Village 2

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Jingxi Village 1 Jingxi Village 2

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Record 1: FGD records in Yuanren Village on land occupation and compensation

Date: August 10, 2018; Friday Place: Yuanren Village Committee Subject：Land occupation and compensation in Yuanren Village Participants: Shi Maicheng, Ren Jianli, Ren Tianmin, Ren Dongyang, Ren Tianlong, Ren Jinyun, Ren Baixiao, Ren Jianke, Wang Donghong, Ren Yunhai, Ren Shengli, Ren Laihua, Ren Huangyong, Lian Xiuying, Li Shuying, Zhu Xiuying, Wang Tongzhu, Ren Shuangliang, Liang Bo, Meng Yongshan Organizer and Recorder: He Zhiyang

1. The staff of Water Resources Bureau introduced the detailed plan on canals rehabilitation, which was limited in the scope of protection area as much as possible. To minimize the impact on local farmers, the construction will be priority implemented in slack farming season. Any impact on the corps and attachments will be addressed with the compensation. 2. Villagers expressed their desire on a normal function of alkaline drainage canals, and they believed that it can bring job and business opportunities for local residents, and promote the agricultural productivity in local arable land. 3. Villagers agreed with the further identification of land ownership of the land in the buffer zone of main and branch canals, and the occupation manner of the state-owned land. Villagers expressed their satisfaction to applicable compensation rates of young crops and ground attachments during land occupation. After civil works completion, AHs can continue to plant crops on the vacant land in buffer zone as usual as they did. 4. According to the management system of the different canals, the main canals administered by the Water Resource Bureau, the branch canals maintained by the local town governments, the tiny canals maintained by the local village committees. The ADB project only includes the main canals and branch canals, therefore the tiny canals will be repaired when the village committees voluntary solve the land occupation issues. 5. The female villagers also strongly support the project construction and satisfied with the implementation plan and compensation. They considered some safety signs and measures established for the kids living around the canals.

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Record 2: FGD records in Wujiazhai Village on land reclaim and compensation Date: August 10, 2018; Friday Place: Wujiazhai Village Committee Subject：Land occupation and compensation in Wujiazhai Village Participants: Li Xiaoling, Zhu Xinhu, Xiang Xiuxiu, Hui Xiumiao, Ning Hongying, Chen Xi’an, Yang Fengqiao, Ma Yindi, Liu Yali, Zheng Yalai, Shi Yafu, Wu Jindao, Ma Chunsheng, Wang Genghua, Chen Zhonggui, Chang Junping, Liang Bo, Meng Yongshan Organizer and Recorder: He Zhiyang

1. The staff of Water Resources Bureau introduced the detailed plan on canals rehabilitation, which was limited in the scope of protection area as much as possible. To minimize the impact on local farmers, the construction will be priority implemented in slack farming season. Any impact on the corps and attachments will be addressed with the compensation. 2. Villagers realized the serious status on the canals which were lack of systematic rehabilitation and treated only where the waterlogging occurred. They are delighted that the rehabilitation works will be systematically and comprehensively implemented by the ADB project. 3. Villagers agreed with the further identification of land ownership of the land in the buffer zone of main and branch canals, and the occupation manner of the state-owned land. Villagers expressed their satisfaction to applicable compensation rates of young crops and ground attachments during land occupation. After civil works completion, AHs can continue to plant crops on the vacant land in buffer zone as usual as they did. 4. Villagers concerned the rehabilitation may incur some impact on the railway, bridges, box culverts, which can’t be solved by the Wujiazhai Village Committee. The PMO and

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Water Resource Bureau will take charge of the coordination with railway department and infrastructure repair. 5. The villagers can come back cultivating the vacant land within the protection zone under the management of Water Resource Bureau.

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Appendix 3: Public consultation and participation minutes on LAR in December 2015 I. Complain about the operation and treatment mechanism 1. Complain processing mechanism In order to effectively solve the problems related to LAR, and ensure the successful implementation of the project construction and land acquisition, Weinan PMO shall establish a transparent and effective complaint and grievance procedures. Relevant organizations will receive free about the appeal of the affected people and their complaints. Affected households and persons can appeal to any aspect of LAR affairs, including compensation standard and so on. The complaint channels and accepting institutions, including name of the head, location, and telephone numbers, will be released to affected persons through meeting, notice and resettlement information booklets, to make them fully understand their right to appeal on LAR affairs. 2. Performance evaluation Based on the field visits in affected villages, and the discussion with Weinan PMO, PIO, RIA and external monitor, no written appeal has been received until now. However, PMO also introduced that scattered and small problems, such as DMS and ownership of land and assets, can be resolved quickly in village and/or town level. II. Main findings of the public consultation and complaints In order to know well about the attitude and satisfaction level of affected persons, social consultants conducted focus discussion groups in relevant villages. Main findings are briefly summarized as bellow: 1. Opinions of Village Committees and villagers affected by land acquisition of the project （1）Villagers agreed WLMIDZC to acquire land in their villages for development and construction, they believed that it can bring job and business opportunities for local residents, and promote the rapid growth of regional economy. （2）The land compensation of the first three package (ADB-FM-CW-02-01 to 03) of Tianlu Lake Excavation has been paid to the village committees. Specifically, Fanjia Village Committee received CNY 6,370,100 for the compensation of 1,274.02 mu land, Chitou Village committee received CNY 2,965,850 for the compensation of 593 mu. （3）Compensation fund has not yet been allocated to villagers from village account. This fund will be distributed to all of the villagers after the allocation program is approved by the meeting of villagers or representatives of villagers. （4）Existing problems or difficulties Villagers of Fanjia Village thought that the land acquired should not be treated and compensated as wasteland since salt ponds can bring income to their households. They hope local government can provide land compensation with a similar rate of farmland. They said that the output of salt ponds is about 10 tons per mu annually, and the market price is about 50 to 80 yuan per ton, the cost is about 100 yuan per mu every year, so the net income of salt ponds is about 600 yuan per mu annually. They said the existing land compensation rate of salt ponds (5,000 yuan per mu) was not acceptable. Villager representatives from Chitou Village also expressed the similar attitude and opinion to the compensation standards. （5）expectations of the village committee and villagers They hope local government can provide more assistances to villagers through increasing subsidies and policy support, such as finance support for rural roads construction, sanitation and environment protection, etc. Another suggestion is the finance support for the public cultural events, especially for rural women in villages, e.g. facilities and clothes for their square dance. 2. Attitudes and opinions of WLMIDZC and Weinan PMO The land compensation rate of salt ponds is not high, but it’s compliant with the compensation policy of local government and the updated RP approved by ADB. Salt ponds

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project cannot be identified as farmland according to the Land Management Law of PRC. WLMIDZC made their efforts to explain the compensation policies to villagers, and promised to implement all the livelihood restoration measures agreed in updated RP.

Record 1: FGD records in Fanjia Village on land acquisition and compensation

Date: December 8, 2015; Tuesday Place: Dangmu township government Subject：Land acquisition compensation and resettlement in Fanjia Village Participants: Fan Wenge Secretary of Fanjia village Branch of CPC Liu Shuangjin Director of Supervision board of Fanjia village Zhou Zhaopeng villager representative Yan Peng villager representative Lian Jian Staff of Land Management bureau of WLMIDZC Chen Mingtao Staff of Weinan PMO Organizer and Recorder: Wang Hengbo Assistant of social specialist

1. Villagers agreed WLMIDZC to acquire land in their villages for development and construction, they believed that it can bring job and business opportunities for local residents, and promote the rapid growth of regional economy. 2. Villagers expressed their satisfaction to compensation rate of ground attachments during land acquisition. 3. Beside the compensation of ground attachments provided to affected households, Fanjia Village Committee received CNY 6,370,100 for the compensation of 1,274.02 mu land of salt ponds. 4. Land compensation fund has not yet been allocated to villagers from village account. This fund will be distributed to all of the villagers after the allocation program is approved by the meeting of villagers or representatives of villagers. 5. Potential problems （1）Villagers of Fanjia Village thought that the land acquired should not be treated and compensated as wasteland since salt ponds can bring income to their households. They hope local government can provide land compensation with a similar rate of farmland. They said that the output of salt ponds is about 10 tons per mu annually, and the market price is about 50 to 80 yuan per ton, the cost is about 100 yuan per mu every year, so the net income of salt ponds is about 600 yuan per mu annually. They said the existing land compensation rate of salt ponds (5,000 yuan per mu) was not acceptable.

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

（2）The land acquisition compensation fund is kept in account of Fanjia village committee, however there may be a big problem during the distribution of this fund due to the unsatisfied land compensation rate.

Record 2: FGD records in Chitou Village on land acquisition and compensation

Date: December 8, 2015; Tuesday Place: home of Mr. Li Jiangming Subject：Land acquisition compensation and resettlement in Chitou Village Participants: Li Xiaolong Secretary of Chitou village Branch of CPC Li Jiangming Director of Supervision board of Chitou village Yin De’an Village Officer Zhao Chuncao (female) Deputy director of the women’s federation of Chitou Village Lian Jian Staff of Land Management bureau of WLMIDZC Chen Mingtao Staff of Weinan PMO Organizer and Recorder: Wang Hengbo Assistant of social specialist

1. Villagers agreed WLMIDZC to acquire land in their villages for development and construction, they believed that it can bring job and business opportunities for local residents, and promote the rapid growth of regional economy. 2. Beside the compensation of ground attachments provided to affected households, Chitou Village committee received CNY 2,965,850 for the compensation of 593 mu land of salt ponds. 3. Land compensation fund has not yet been allocated to villagers from village account. This fund will be distributed to all of the villagers in the groups affected by land acquisition. 4. The villagers believed the land acquisition compensation rate of salt ponds was too low to make up their loss. 5. Chitou village committee had confidence to smoothly promote the fund distribution in next steps. 6.Suggest：(1) They hope local government can provide more assistances to villagers through increasing subsidies and policy support, such as finance support for rural roads construction, sanitation and environment protection, etc. (2)Another suggestion is the finance support for the public cultural events, especially for rural women in villages, e.g. facilities and clothes for their square dance.