Hubei Enshi Qing River Upstream Environment Rehabilitation Project

Resettlement Plan (Draft)

Project Number: 47048-002 January 2015

People’s Republic of China: Hubei Enshi Qing River Upstream Environment Rehabilitation Project

Prepared by the Enshi Tujia and Miao Autonomous Prefecture Government for the Asian Development Bank

CURRENCY EQUIVALENTS (as of 31 October 2014) Currency unit – Yuan (CNY) CNY1.00 = $0.1635 $1.00 = CNY6.1145

ABBREVIATIONS ADB – Asian Development Bank AP – affected persons ETMAP – Enshi Tujia and Miao Autonomous Prefecture PMO – project management office PRC – People’s Republic of China RP – resettlement plan WWTP – wastewater treatment plan

NOTE In this report, "$" refers to US dollars.

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

RESETTLEMENT PLAN & DUE DILIGENCE REPORT

HUBEI ENSHI QING RIVER UPSTREAM ENVIRONMENT REHABILITATION PROJECT

Financed by ADB

(Enshi City Section)

Enshi City ADB Loan Project Leading Group November, 2014

CURRENCY EQUIVALENTS (As of 20 Oct. 2014) Currency Unit – yuan (CNY) CNY1 = $0.1634 $1 = CNY6.118 ABBREVIATION AAOV Average Annual Output Value ADB Asian Development Bank AH Affected HH AP Affected Person CNY Abbreviation for yuan, PRC’s currency DDR Due Diligence Report DI Design Institute DMS Detailed Measurement Survey EMA External Monitoring Agency ECPMO Enshi City Project Management Office EUCIC Enshi Urban Construction and Investment Co. Ltd. EPDRC Enshi Prefectural Development and Reform Commission EMDP Ethnic Minority Development Plan ERSM External Resettlement and Social Monitoring ETMAP Enshi Tujia and Miao Autonomous Prefecture EMG Enshi Municipal Government Enshi Tujia and Miao Autonomous Prefecture Project Management EPPMO Office FSR Feasibility Study Report HH Household HEQRUERP Hubei Enshi Qing River Upstream Environment Rehabilitation Project LAB Land Administration Bureau LA&R Land Acquisition and Resettlement LAO Land Acquisition Office LLF Land-Loss Farmer LPMO Local Project Management Office M&E Monitoring and Evaluation mu Chinese land area unit of measure: 1 mu = 0.0667 ha NGO Non-Government Organization PMO Project Management Office PPTA Project Preparation Technical Assistance

PRC People’s Republic of China RIB Resettlement Information Booklet RMB Renminbi—another word for the PRC Currency, the yuan RP Resettlement Plan SES Socioeconomic Survey TOR Terms of Reference

WF Women’s Federation WS Water Supply WTP Water Treatment Plant WWTP Wastewater Treatment Plant

Contents

EXECUTIVE SUMMARY ...... 1 A. PROJECT OVERVIEW AND MAIN IMPACTS ...... 1 B. POLICY FRAMEWORK AND ENTITLEMENTS ...... 1 C. INFORMATION DISCLOSURE, PUBLIC PARTICIPATION AND COMPLAINT ...... 4 D. RESETTLEMENT AND LIVELIHOOD RECOVERY ...... 4 E. ORGANIZATION ...... 5 F. COST AND SCHEDULE...... 6 G. MONITORING AND EVALUATION ...... 6 1 PROJECT OVERVIEW ...... 7 1.1 PROJECT BACKGROUND ...... 7 1.2 ENVIRONMENTAL POLLUTION CHALLENGE AGAINST QING RIVER BASIN ...... 8 1.3 NECESSITY OF PROJECT CONSTRUCTION ...... 8 1.4 PROJECT DESCRIPTION AND OVERVIEW OF APSRESETTLEMENT IMPACTS ...... 9 1.4.1 Enhanced flood management ...... 9 1.4.2 Urban Wastewater treatment works ...... 14 1.4.3 Comprehensive river improvement works ...... 14 1.4.4 Project affected area and Overview of APsResettlement Impacts ...... 20 1.5 SOCIAL AND ECONOMIC BENEFITS OF THE PROJECT ...... 23 1.5.1 Environmental benefits ...... 23 1.5.2 Social benefits ...... 23 1.5.3 Economic benefits ...... 23 1.5.4 Ecological benefits ...... 24 1.5.5 Energy-saving benefit ...... 24 1.6 PROJECT INVESTMENT AND IMPLEMENTATION PLAN ...... 24 1.7 MITIGATION MEASURES FOR RESETTLEMENT IMPACTS ...... 25 1.8 OBJECTIVES OF THE RESETTLEMENT PLAN ...... 27 2 LAND ACQUISITION AND RESETTLEMENT SCOPE ...... 28 2.1 COLLECTIVE LAND ACQUISITION ...... 28 2.1.1 Collective land acquisition ...... 28 2.1.2 Analysis on impacts caused by collective land acquisition ...... 28 2.2 PERMANENT OCCUPATION OF STATE OWNED LAND ...... 29 2.3 TEMPORARY LAND OCCUPATION BY THE PROJECT ...... 29 2.4 RURAL HOUSE DEMOLITION ...... 30 2.5 LAND ATTACHMENTS ...... 32 2.6 VULNERABLE GROUPS AFFECTED BY THE PROJECT ...... 33 3 SOCIAL-ECONOMIC INFORMATION AND PROFILE ...... 34 3.1 CITIES/COUNTIES/TOWNS AFFECTED BY THIS PROJECT ...... 34 3.2 INVESTIGATION AND ANALYSIS ON VILLAGES AFFECTED ...... 34 3.3 SAMPLING SURVEY ...... 38 3.3.1 Sampling proportion ...... 38 3.3.2 Population of sampled HHs ...... 38 3.3.3 Income and employment of sampled HHs ...... 40 3.3.4 Expenditure of sampled HHs ...... 40 3.4 GENDER ANALYSIS ...... 41 3.5 HOUSE DEMOLITION ...... 43 3.6 ETHNIC MINORITY ...... 43 3.7 VULNERABLE GROUPS ...... 45 3.8 CONCLUSION ...... 45 4 INFORMATION DISCLOSURE, NEGOTIATION AND PARTICIPATION ...... 46 4.1 PUBLIC PARTICIPATION AND NEGOTIATION ACTIVITIES LAUNCHED SO FAR ...... 46 4.2 FEEDBACKS FROM PUBLIC PARTICIPATION AND NEGOTIATION OPINIONS ...... 48 4.3 PLAN OF NEGOTIATION WITH AFFECTED PERSONS IN NEXT STEP ...... 52 4.4 METHODS FOR AFFECTED PERSONS’ PARTICIPATION IN NEGOTIATION DURING IMPLEMENTATION

53 4.5 POLICY DISCLOSURE AND DISCLOSURE PLAN OF RESETTLEMENT INFORMATION BOOKLET .... 54 5 GRIEVANCE REDRESS MECHANISM ...... 55 5.1 METHODS FOR COLLECTION OF DISSATISFACTION AND COMPLAINTS ...... 55 5.2 COMPLAINT AND APPEAL PROCEDURES ...... 55 5.3 PRINCIPLES FOR HANDLING COMPLAINTS ...... 56 5.4 CONTENTS AND METHODS ON REPLYING TO COMPLAINTS ...... 57 5.4.1 Contents of replying to complaints ...... 57 5.4.2 Methods of replying to complaints ...... 57 5.4.3 Recording, tracking and feedback of complaints and appeals ...... 57 5.5 CONTACT METHOD FOR EXPRESSION OF COMPLAINTS AND APPEALS ...... 58 6 LEGAL FRAMEWORK ...... 60 6.1 RELEVANT POLICIES AND PRINCIPLES OF PROJECT RESETTLEMENT ...... 60 6.2 COMPENSATION STANDARDS ...... 63 6.2.1 Land and property losses will be compensated according to the following principles ...... 63 6.2.2 Land compensation standards and use ...... 63 6.2.3 Demolition, compensation and resettlement policies and standards for rural houses and ancillary facilities...... 65 6.2.4 Compensation of state-owned land ...... 69 6.2.5 Compensation policy and standards for temporarily occupied land ...... 70 6.2.6 Compensation standards for attachments and scattered trees ...... 70 6.3 SUPPORTING MEASURES FOR VULNERABLE GROUPS ...... 72 6.4 SUPPORTING MEASURES FOR WOMEN ...... 73 6.5 PENSION SECURITY FOR LAND-LOST FARMERS ...... 73 6.6 APPROPRIATION OF COMPENSATION FUND AND SCHEDULE ...... 73 7 RIGHTS, SUPPORT AND REVENUES ...... ERROR! BOOKMARK NOT DEFINED. 7.1 QUALIFICATION FOR ENTITLEMENT TO COMPENSATIONS ...... 75 7.2 SUPPORT ...... 75 7.3 REVENUES ...... ERROR! BOOKMARK NOT DEFINED. 8 RELOCATION AND RESETTLEMENT OF RESIDENCES ...... 81 8.1 RESIDENTS RESETTLEMENT SCHEME ...... 81 8.1.1 Willingness for resettlement ...... 81 8.1.2 Schemes for resettlement ...... 82 8.1.3 Analysis to replacement price ...... 82 8.2 CONCLUSIONS ...... 83 9 INCOME RECOVERY ...... 84 9.1 BACKGROUND OF VILLAGES INVOLVING PERMANENT LAND ACQUISITION ...... 84 9.2 SUMMARY TO RESETTLEMENT MEASURES ...... 85 9.2.1 Resettlement measures ...... 85 9.2.2 Income recovery plans for relatively severely affected villages ...... 90 9.3 SKILL TRAINING FOR AFFECTED PERSONS ...... 93 9.4 GENDER ISSUES DURING RESETTLEMENT ...... 94 9.5 SUPPORT TO VULNERABLE GROUPS ...... 94 9.6 EMPLOYMENT IN RELATION TO THE PROJECT ...... 97 9.7 CONCLUSIONS ...... 97 10 RESETTLEMENT BUDGET AND FINANCIAL PLAN ...... 98 10.1 CONSTITUTION OF RESETTLEMENT FUND ...... 98 10.1.1 Land Compensation Fees ...... 98 10.1.2 Compensation Fees for Demolition and Relocation ...... 98 10.1.3 Compensation Fees for Special Restoration and Reconstruction ...... 98 10.1.4 Administration Fees ...... 98 10.1.5 Other resettlement-related fees ...... 99 10.1.6 Contingency fees ...... 99 10.2 RESETTLEMENT BUDGET ...... 99

10.2.1 Budget ...... 99 10.2.2 Resettlement Fund Receivers and Fund Flow ...... 104 10.3 APPROPRIATION, MANAGEMENT AND MONITORING OF RESETTLEMENT FUND ...... 105 10.3.1 Appropriation of Resettlement Fund ...... 105 10.3.2 Management and Monitoring of Resettlement Fund ...... 106 11 ORGANIZATIONAL ARRANGEMENT ...... 107 11.1 ORGANIZATIONAL ARRANGEMENT ...... 107 11.2 RESPONSIBILITIES OF ORGANIZATIONS ...... 108 11.2.1 Enshi City ADB Loan Project Leading Group ...... 108 11.2.2 Enshi ADB Loan Leading Group Office (Enshi Urban Construction and Investment Company) 108 11.2.3 Enshi Land and Resources Bureau ...... 109 11.2.4 Implementing agencies for project resettlement ...... 109 11.2.5 Government (township) office...... 110 11.2.6 Village (neighborhood) committee ...... 110 11.2.7 External monitoring agency ...... 110 11.2.8 Contacts of relevant agencies ...... 110 11.3 ORGANIZATIONAL PERSONNEL AND EQUIPMENT FOR RESETTLEMENT AT ALL LEVELS ...... 111 11.4 MEASURES FOR STRENGTHENING INSTITUTIONAL CAPABILITIES ...... 112 12 PROJECT SCHEDULE ...... 115 13 MONITORING AND EVALUATION ...... 119 13.1 INTERNAL MONITORING ...... 119 13.1.1 Objectives and purposes of internal monitoring ...... 119 13.1.2 Executive procedure of internal monitoring ...... 120 13.1.3 Contents of internal monitoring ...... 121 13.1.4 Internal monitoring methods ...... 123 13.1.5 Organization and personnel allocation of internal monitoring ...... 125 13.1.6 Responsibilities of internal monitoring organization ...... 125 13.1.7 Cycle and report of internal monitoring ...... 126 13.2 EXTERNAL MONITORING ...... 126 APPENDIX 1 RESETTLEMENT INFORMATION BOOKLET ...... 128 APPENDIX 2 RELATED LAWS AND RULES ...... 135 APPENDIX 3: MEETING MINUTES ...... 144 APPENDIX 4: DUE DILIGENCE REVIEW FOR CONSTRUCTION LAND OF ENSHI HONGMIAO WWTP ...... 146 APPENDIX 5 PERMANENT COLLECTIVE LAND ACQUISITION ...... 148 APPENDIX 6 INFLUENCE OF THE PROJECT ON RURAL COLLECTIVE LAND (GROUPS) ...... 155 APPENDIX 7 CHANGES BEFORE AND AFTER LAND ACQUISITION ...... 163 APPENDIX 8 LAND ACQUISITION LOSS CALCULATION ...... 169 APPENDIX 9 ANALYSIS FOR RISK-FREE INCOME FOLLOWING THE COMPENSATION FOR LAND ...... 174 APPENDIX 10 REPLACEMENT PRICE OF HOUSE DEMOLITION ...... 178 APPENDIX 11 BASIC INFORMATION OF RESETTLED HOUSEHOLD ...... 179 APPENDIX 11 OUTLINE OF EXTERNAL MONITOR AND EVALUATION ...... 180 1. Objective of external monitoring ...... 180 2. External monitoring agency and monitoring personnel ...... 180 3. Responsibilities of external monitoring agency ...... 181 4. External monitoring method and procedure ...... 181 5. Main contents of external monitoring ...... 182 6. Reporting system for external monitoring...... 184

Executive Summary

A. Project overview and main impacts

Hubei Enshi Qing River Upstream Environment Rehabilitation Project (HEQRUERP) includes 4 components which comprise engineering works as well as non-structural measures: (i) improved pollution control at Enshi and Lichuan Cities; (ii) enhanced flood management; (iii) improved capacity of wastewater management; and (iv) strengthened project management capacity. The project covers Enshi and Lichuan Citiesof Hubei Province. The planned total investment of the project is CNY1434.4813 million and the construction duration is from June 2015 to June 2020. The Enshi City ADB Loan Project Leading Group prepared the Resettlement Plans (RPs) for two subprojects of Enshi City (hereinafter referred to as “the project”). This RP covers the Enshi subproject. There will be a total of about 154-kilometers (km) of interceptors and new sewer pipes installed in Enshi municipality, plus an existing WWTP expanded to provide an additional capacity of 30,000 m3/d, and a new WWTP of 50,000 m3/d, including advanced treatment and disposal of about 102 tons/d of sludge.

According to social surveys, the impacts of the subproject are mainly caused by enhanced flood management and WWTP components. The resettlement impacts of this subproject mainly include permanent collective rural land acquisition, permanent acquisition of state-owned land and rural house demolition. 691.1 mu of land will be permanently occupied in the project, including 599.4 mu of collective land and 91.7mu state-owned land; 1373.95 mu of land will be temporarily occupied (including 1133.20 mu of state-owned land and 240.75 mu of unutilized collective land). Total 688 HHs with 2788 persons will be affected by permanent land acquisition. Total 6478m2 of rural housing will be demolished, affecting 19 HHs with 73 persons. The project will affect Longfeng Town, Xiaoduchuan Street Office, Wuyangba Street Office, Liujiaoting Street Office (villages and town), including 24 villages (communities) of Enshi city. The RP will be updated based on detailed design and census of affected persons and resubmitted to ADB for approval prior to displacement of affected persons.

B. Policy framework and entitlements

The RP is in accordance with The Law of Land Administration of the People’s Republic of China (2004), the State Council's Decision on Deepening the Reform of

Land Management (GF [2004] No.28) and other laws and regulations, as well as relevant policies on land acquisition, resettlement in Enshi city, Enshi Tujia and Miao Autonomous Prefecture, Hubei Province and ADB’s Safeguard Policy Statement (June, 2009). According to the above policies, and in consultation with local governments and affected persons (APs), the resettlement principles of the Project are: 1) Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning through a survey and/or census of displaced persons, including a gender analysis, specifically related to resettlement impacts and risks. 2) Carry out meaningful consultations with affected persons, host communities, and concerned nongovernment organizations. Inform all 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, especially those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensure their participation in consultations. Establish a grievance redress mechanism to receive and facilitate resolution of the affected persons’ concerns. Support the social and cultural institutions of displaced persons and their host population. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase. 3) Improve, or at least restore, 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. Ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of nonland assets. 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 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 displacement. 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. The land acquisition compensation includes land compensation fee, resettlement subsidies, and compensation for young crops. The compensation standards are calculated at the region-based comprehensive land price regulated by the Hubei provincial policy. These prices have been assessed as equivalent to replacement value of the affected land.

All houses will be compensated at the replacement price, including compensation for buildings, attachments and others. The compensation price will be evaluated and confirmed by the affected persons. The households which choose property right exchange are according to the evaluation of the main architecture of the legal area, and exchange with new resettlement houses. The compensation for young crops, trees and other facilities will be directly paid to the affected persons.

The duration of temporary land occupation usually lasts 2~3 months, which will be compensated for a minimum of 6 months or the actual period if longer. The construction contractor is responsible for land reclamation and the according budget is listed into the construction cost. The cut-off date of the project is June 30, 2014; affected persons have been notified.

C. Information disclosure, public participation and complaint

Before Nov. 30, 2014, the resettlement policy and compensation standards has been issued on Enshi News Network and through other media; the main impacts, compensation standards, resettlement measures, complaint and appeal channels will be publicized by community leaders or on other public occasions; by Sep. 30, 2014, the draft Chinese RP had been prepared by Enshi City ADB Loan Project Leading Group Office and disclosed on other public places for reviewing. In addition, the Resettlement Information Booklet (RIB) will be distributed to the APs or groups at least 3 months before land acquisition and house demolition. The first draft and the updated version of this RP, including the Chinese version will be published on ADB’s website after its approval.

The public consultation is an important part during preparations of RP. From November, 2013 to November, 2014, a series of consultation activities were organized for affected persons, resettlement organizations, design institute and other stakeholders of the project. The affected persons participated in the preparation for RP through socio-economic survey and impacts investigation, and future consultation will be arranged during execution of the RP. A Grievance Redress Mechanism (GRM) is established for affected persons to deal with any complaints during land acquisition and resettlement affairs, which including 4 major reporting channels: (1) resettlement organization or local resettlement office; (2) implementing agency for sub-project; and (3) Enshi City ADB Loan Project Leading Group. All agencies will accept grievances and appeals from the APs for free, and costs reasonably incurred will be disbursed from the subproject contingencies.

D. Resettlement and livelihood recovery

To minimize the negative impacts on affected APs and restore their livelihood and living standards, the measures of reconstruction and resettlement are already included in the RP. Professional organization makes preparations for resettlement measures and income recovery based on social and economic survey, analysis on

affected persons and resettlement experience in similar projects. These measures include monetary compensation, uniform resettlement houses, living subsidies for affected persons, and social security funds provided by local security system for all eligible persons. The skill training (including swine production, ways of increasing average land productivity, guidance on employment at non-agricultural job, opportunities for project employment, and non-monetary support, etc.) is also provided for affected persons. Based on the types of lost land, monetary compensation is provided for the collective land 599.4 mu that is permanently acquired. For temporary land acquisition, 1697.0 mu is to be temporarily occupied during project construction, where 1295.2 mu of constructed roads on sewage treatment pipes will not produce any income and loss, and the rest will be compensated for temporary land occupation. 19 HHs affected by demolition and relocation of houses can select monetary compensation or property transfer at will.

Vulnerable groups and women. There are 19 HHs, totally 73 vulnerable people will be affected. All these people need special care during resettlement. These HHs will be supported according to the relevant policies. Standard for Category 1: 160 yuan/person-month; Category 2: 120 yuan/person-month; Category 3: 80 yuan/person-month; Category 4: 45 yuan/person-month. Besides land acquisition compensation policy, women also enjoy the following supporting measures with priority. (1) Have priority to get a job. The project needs about 400 laborers. The daily wage of skillful worker engaged in labor is 120 yuan. (2) Have priority to obtain agricultural and non-agricultural technical training. In this project, 400 person-times of agricultural and non-agricultural technical training will be carried out. The number of female trainees shall be at least 50% of the total number of trainees. (3) Affected women may obtain relevant information during resettlement and take part in public consultation before and during resettlement. (4) During implementation of resettlement, specific women’s forum will be held to introduce relevant resettlement policies so as to improve their awareness. (5) The compensation agreement must be signed by both husband and wife.

E. Organization

The Enshi City ADB Loan Project Leading Group bears all responsibilities for execution of the land acquisition and RP; the Enshi City project implementing agency (Enshi Urban Construction Investment Co., Ltd - EUCIC) undertakes the preparations and execution of RP of the project, including planning, execution, capital arrangement,

land acquisition, report of RP. EUCIC undertakes the resettlement consultation, execution, timely distribution of compensation. To ensure that the project can proceed smoothly, the director for land acquisition and resettlement shall participate in the training on resettlement organized by Enshi City ADB Loan Project Leading Group. Based on the schedule of project preparations and construction, the resettlement schedule is confirmed. The RP will be updated based on the latest design and measurement survey, which will be reviewed and approved by ADB before signing the contract for civil works.

F. Cost and schedule

The total budget for land acquisition and resettlement of the project is CNY67.8766 million, amounting 7.98% of the total project investment CNY850.1646 million for Hubei Enshi Qing River Upstream Environment Rehabilitation Project(Enshi Section). As to meet construction requirements of the project, the progress of resettlement shall accord with the progress of the project, the land acquisition and house demolition and relocation of houses starts from April, 2015 and completes at the end of March, 2018.

G. Monitoring and evaluation

The RP includes a detailed plan for internal and external monitoring and evaluation. Enshi City ADB Loan Project Leading Group is the internal resettlement agency and will submit the internal monitoring report to ADB semi-annually. Before the start of construction, Hubei Enshi Urban Construction Investment Co., Ltd. will engage an external resettlement monitor as independent external monitoring agency to conduct independent resettlement monitoring. The baseline survey will be conducted before land acquisition and house demolition; the first monitoring report (including baseline survey) is to be submitted in April, 2015. The monitoring reports will be submitted semi-annually during the resettlement process and submit annual evaluate report for 2 years after the resettlement. M&E costs will be included in the resettlement budget.

1 Project Overview

1.1 Project Background

Enshi Tujia and Miao Autonomous Prefecture (hereinafter referred as the ETMAP) is located in the southwest part of Hubei Province, between the eastern Wuling Mountain and Daba Mountain of Yunnan-Guizhou Plateau, connected to Yichang, Hubei in the east, Xiangxi Autonomous Prefecture, Hunan in the south, Qianjiang area of Chongqing to the west and Wanzhou District of Chongqing to the north, Shennongjia forest to the northeast. It has jurisdiction over Enshi City, Lichuan City, Jianshi County, Badong County, Xuan’en County, Laifeng County, Xianfeng County and Hefeng County. It was founded on August 18, 1983 and the only minority autonomous prefecture in Hubei as well as included in the area of national western development.

Enshi City is the capital of ETMAP, which is the political, economic, cultural center and traffic hub of the whole prefecture; it is also the city of selenium in China and one of the 9 ancient historical cities in Hubei Province. It is located in the southwest part of Hubei Province, upstream Qing River, at longitude 109°4'48"-109°58'42" east, latitude 29°50'33"-30°39'30" north, the land area is 3,972 sq.km, with jurisdiction over 16 villages, towns, streets, the registered population is 808,600 and the resident population is 763,000 (by the end of 2012, Statistical Yearbook 2013 for Hubei Province), Tujia, Miao and Dong people amount to 38.5% of the total population. The agricultural economy is gradually developing into industrialization, forming of "one product for one village". The industrial and business sectors have evolved into a diversified, distinct and open system with industrial and business enterprise. The economic development environment is further optimized and the framework of a mid-sized city is basically formed.

The average net income of rural residents in 2012 is 4,619 yuan per capita, the average living expenditure of rural residents is 4,137 yuan; the disposable income of urban residents is 16,993 yuan per capita and the average living expenditure of urban residents is 12,833 yuan.

1.2 Environmental Pollution Challenge against Qing River Basin

Qing River originates from Qiyue Mountain in Lichuan City of Enshi Tujia and Miao Autonomous Prefecture, flows from the west to the east via Enshi, Xuan’en, Jianshi, Badong, Changyang and into Yangtze River in Yidu. The total length is 423km and the area of watershed is 17,322km2, it is the mother river of ETMAP. With the multi-stage development of Qing River Shuibuya-Geheyan-Gaoba power plants, multiple-stage reservoirs were created which reduced the flow rate in Qing River Reservoir, decreased water exchange and self-purification; in addition, with rapid industrial and economic development and urban construction, the water quality in Qing River is gradually deteriorated due to domestic and industrial pollution, pollution from non-point sources, waste pollution, aquaculture and tourism development. Currently, the water quality in downstream range of urban area in Lichuan, downstream range of Xianfeng District, Zhongjian River is Category IV, the water quality in downstream range of urban area in Jianshi is Category V.

There are mainly 3 causes for the water pollution: the first is industrial pollution and medical wastewater, mainly from mines, chemicals, food manufacturing, tannery, medical wastewater and other highly-concentrated organic wastewater, some manufactures directly discharge industrial wastewater into Qing River; the second is domestic sewage in urban and rural areas. There is basically no treatment measure for domestic sewage and domestic waste in the 35 towns along the river except for the county seats. In addition, some houses constructed along the river do not meet the requirements of " 20m away from the dike".

1.3 Necessity of Project Construction

(1) Respond to the national policy of western development, implementing the spirit in national poverty alleviation planning for Wuling Mountain section, carrying out Hubei's strategic policy of "2 Circle and 1 Belt" and execute Enshi's "12th Five-Year Plan". (2) Protect natural environment, improving urban infrastructure, raising urban functions and image, facilitating Enshi to develop in a healthy and continuous manner and achieving the objective of economic take-off in Enshi. (3) Change the closed and backward situations in minority area, establishing innovative and open image of Enshi representative of minority area, urging national solidarity and achieving the objective of common prosperity of all ethnic groups.

1.4 Project Description and Overview of APs Resettlement Impacts

1.4.1 Enhanced flood management

(1) Interception sewage pipeline New sewage pipeline is based on the alignment of original sewage pipeline, along Qing River mainstream upstream side and four tributaries in Enshi city (Daishui River, Gaoqiao River, Longdong River, and other branch channel). As some rivers in urban area have already built partial sewage pipelines, the works in the project will be connected with some pipes and channels while considering urban drainage and sewage pipeline planning.

Gaojing River is the branch of Gaoqiao River, there are residential houses on the bank and the houses in some areas are constructed above the river. The sewage is directly discharged into the river, resulting to the deterioration in color and odor which needs regulation urgently. In order to avoid house demolition and relocation, no slope protection is considered and the sewage pipes are arranged as the main regulation method. The work quantities of sewage pipelines in urban area of Enshi are shown in Table 1-1. The total area impacted temporarily is 557.9 mu.

Figure 1-1 project location

Table 1-1 Work Quantities of Interception Sewage Pipeline in Urban Area of Enshi Temporar y Sewage Area River Start Point Finish Point Length(m) constructi Area(mu) on Width(m) Crossing at Jinzi Road and Crossing at No.19 road and No.30 road 8583 10 128.68 Longfeng Avenue Longfeng area Daishui River Crossing at planned No.19 road and No.30 The other band of Daishui 58 10 0.87 road River Crossing at Jinzi Road and Longfeng Avenue Hongmiao WWTP 572 10 8.58 Gaoqiao Junction at Gaoqiao River and Junction at Gaoqiao River and Zhizixi 3238 10 48.55 River Gaojing River Gaoqiao Junction at Gaoqiao River and Junction at Gaoqiao River and Gaojing River 72 10 1.08 Gaoqiao River River Gaojing River area Junction at Gaojing River and Gaojing River Junction at Gaojing River and Gaoqi Avenue 3166 10 47.47 Gaoqiao River Gaoqiao Junction at Gaoqiao River and Gaojing River Gaoqiao River pumping station 227 10 3.40 River Junction at planned No.24 Road and Sha Junction at Sha River and 1928 10 28.91 Qingshulin River Longjiawan Sha River area Junction at Longdong River Junction at Sha River and Longjiawan 5273 10 79.06 and Longjiawan

Temporar y Sewage Area River Start Point Finish Point Length(m) constructi Area(mu) on Width(m) Longdong Junction at Longdong River Junction at Longdong River and Sha River 2399 10 35.97 River and Yulong River Right bank of Qing River at 1320 10 19.79 Group 3 of Qifengba Village Lishui Garden of Hongqi 1948 10 29.21 Community Right bank of Qing River at Right bank of Qing River at Lishui Garden of Hangkong Avenue and 2991 10 44.84 Hongqi Community Qing River Shizhou Avenue Qing River area Right bank of Qing River at Hangkong Gaoqiao River pumping station 2651 10 39.75 Avenue and Shizhou Avenue Right bank of west Qing River at Lvyuanguan Right bank of west Qing River 234 10 3.51 WWTP at Lvyuanguan WWTP Right bank of west Qing River at Lvyuanguan Right bank of west Qing River 234 10 3.51 WWTP at Lvyuanguan WWTP Gaoqiao River pumping station to Qing River Gaoqiao River pumping station Dashaba WWTP 2318 10 34.75 Dashaba WWTP

Temporar y Sewage Area River Start Point Finish Point Length(m) constructi Area(mu) on Width(m) Total 37212 557.90

(2) New sewer pipelines The project plans to install sewage mains and branch pipes for Longfeng Town, Qingshulin section, Longdong River section (including 3 branches, branch of Longdong River, Yulong River, etc. in Hubei Minzu University), north section of Gaoqiao River, separated sewage system is to be used and the sewage in new urban area is collected and delivered to the WWTP for treatment. The total length of new sewage pipes of the project in Enshi is 61,474m with ancillary facilities, including sewage pipe shaft, overflow shaft, and siphon shaft across river. The work quantities of new sewers in urban area of Enshi are included in Table 1-2. The total area impacted temporarily is 737.32 mu.

Table 1-2 Work Quantities of New Sewers in Urban Area of Enshi Area Branch Pipe Dia. (mm) Length(m) Width(m) m2 mu 400 33963 8 271704 407.35 600 20702 8 165616 248.30 Pipe line 800 4945 8 39560 59.31 Subtotal 59610 8 476880 714.96 φ1000 1132 8 9056 13.58 φ1250 591 8 4728 7.09 Inspection Well φ1500 141 8 1128 1.69 Subtotal 1864 8 14912 22.36 Total 61474 8 491792 737.32

1.4.2 Urban Wastewater treatment works

This component of the project includes: (1) the expansion of Hongmiao WWTP is 40,000 m3/d with effluent standard of class 1A, occupying 87.3 mu land which has been acquisitioned already. See APPENDIX 4 for a due diligence review of this. (2) New Dashaba WWTP is 40,000 m3/d with effluent standard of class 1A, occupying 76.7 mu land. (3) Newly-built Gaoqiao River pumping station covers a land area of 4 mu.

1.4.3 Comprehensive river improvement works

(1) Dredging works The comprehensive river improvement works is planned for upstream Qing River,

Daishui River, Gaoqiao River, Longdong River, Sha River and some secondary tributaries in urban area of Enshi city, mainly including river dredging, river ecological restoration, construction of riverside platform, construction of ecological area, etc. The total dredging length is 51,058m, the total dredging area is 2,384,925 m2 and the total dredging volume is 607,877m3. Environmentally-friendly dredging method is to be used. As the rivers are narrow and deep in the project areas, the land-based environmentally-friendly dredging is preferable. Dumper trucks are used to deliver the sludge from the rivers to designated site. Low pond, valley or borrow pit is used to dispose the sludge from the rivers. This area is required to be abandoned land or greening site in urban planning with good geological conditions and low water permeability. The area temporarily required for disposal of dredged materials is 28.49 mu. This will not impact any persons. The work quantities of Riverbank Remediation for Qing River and branches are included in Table 1-3.

Table 1-3 Dredging Quantities for Qing River and its Tributaries in Enshi city area Dredging Dredging Average Dredging Dredging No. Name of River Range of River Length(m) Area(m2) Depth(m) Volume(m3) 1 Qing River Xiakou Bridge to Lianzhu Bridge 14307 1716835 0.28 480714 Shuangyantang Village to estuary of Qing 2 Daishui River 7193 374036 0.15 56105 River 3 Branch of Daishui River Jinlong Bridge to estuary of Daishui River 687 4466 0.1 447 Jiupangou

Affected ditch of Daishui 50m upstream of Jianshe Avenue to estuary 4 287 1148 0.1 115 River branch of Daishui River Source of Longdong Village to estuary of 5 Longdong River 9334 121342 0.25 30336 Longdong River 6 Yulong River Estuary of Yulong River to Jinshan Avenue 1206 3015 0.2 603 Estuary of Sha River, Longdong River to 7 Sha River 10220 64386 0.3 19316 source 8 Longjiawan Estuary to 1.92km upstream 2096 4192 0.32 1341 9 Gaoqiao River Yueliangyan substation to estuary 1927 48753 0.1 4875 10 Gaojing River Liangcha River to estuary 3801 46752 0.3 14026 Total 51058 2384925 607877

(2) Riverbank Remediation for rivers Different types of slope protections are to be built along Enshi section of Qing River, Gaoqiao River, Longdong River (including 3 branches, branch of Longdong River, Yulong River, etc. in Hubei Minzu University), Daishui River, Sha River and Longjiawan. As for the improvement works for Longjiawan, as Longjiawan is the branch of Sha River and the flow rate is relatively slow. The main regulation methods include Riverbank Remediation and intercepting sewage pipework. The improvement works for Yulong River is increased. Yulong River is the small branch of Longdong River with slow flow rate and narrow width. The land acquisition, demolition and relocation on both banks are already completed and the area is included in the new campus of Hubei Minzu University as an internal river. The main work scope is Riverbank Remediation. The slope protection quantities for mainstreams and tributaries in urban area of Enshi are included in Table 1-4. The total area impacted permanently is 445.73 mu, of which 48.3 mu was for the Hubei Minzu University.

Table 1-4 Work Quantities of Riverbank Remediation for Qing River in Urban Area of Enshi Length Length Average Average Area of Area of of of Width Width Left Right Total Area No. Name of River Work Scope Left Right of Left of Right Bank Bank Bank Bank Bank Bank m m m m2 m m2 m2 mu Shuangyantang Village to 1 Daishui River 7187 7193 5 35935 5 35965 71900 107.8 estuary of Qing River Branch Jiupangou Jinlong Bridge to estuary 2 687 662 3 2061 3 1986 4047 6.1 of Daishui River of Daishui River Jianshe Avenue to estuary 3 Xiangshuigou, Daishui River 287 286 3 861 3 858 1719 2.6 of Daishui River Hongqi Bridge to estuary 4 Upstream Qing River 4620 4234 7 32340 7 29638 61978 92.9 of Daishui River Shiziyan (No.2 Middle 5 Downstream Qing River School) 610 762 7 4270 7 5334 9604 14.4 to Lianzhu Bridge Source to south gate 6 Longdong River 4038 4012 4 16152 4 16048 32200 48.3 of Minzu University Back of Wuyang Middle 7 Longdong River 0 138 3 0 3 414 414 0.6 School Longdong River to Jinshan 8 Yulong River 1206 1203 3 3618 3 3609 7227 10.8 Avenue

Length Length Average Average Area of Area of of of Width Width Left Right Total Area No. Name of River Work Scope Left Right of Left of Right Bank Bank Bank Bank Bank Bank m m m m2 m m2 m2 mu 9 Sha River Full length 10220 10216 4 40880 4 40864 81744 122.6 10 Longjiawan Estuary to 2km upstream 2096 2089 3 6288 3 6267 12555 18.8 Estuary to Yueliangyan 11 Gaoqiao River 1927 1927 3 5781 3 5781 11562 17.3 substation 12 Gaojing River Shinan Mindu section 395 389 3 1185 3 1167 2352 3.5 Total 33273 33111 149371 147931 297302 445.73

(3) Ancillary facilities for Riverbank Remediation The ecological environment of Qing River will be significantly improved after dredging and ecological restoration and it will provide conditions for residents on both banks to enjoy the waterfront environment. In addition to dredging and ecological restoration, the project plans to build ancillary facilities for slope protection at junction of Daishui River, Qing River, Sha River and Longdong River. The ancillary facilities for comprehensive river improvement works in Enshi are included in Table 1-5. The total area impacted permanently is 77.334 mu.

Table 1-5 Ancillary facilities for Qing River Rehabilitation in Enshi city Area Location Type 2 m mu Red line areas for Ancillary facilities on ecological functions, 6569 9.849 Daishui River wetland on river areas Ancillary facilities on Small riverside 2707 4.058 Sha River platform Artificially expanded Wide water area on water area with 36287 54.403 Sha River wetland Ancillary facilities at Ecological area 6019 9.024 Longjiawan Total 51582 77.334

1.4.4 Project affected area and Overview of APs Resettlement Impacts

The project will affect Longfeng Town, Xiaoduchuan Street Office, Wuyangba Street Office, Liujiaoting Street Office (village and town), including 24 villages (communities). The affected areas of the project are summarized in Table 1-6.

Table 1-6 Project Affected Areas No. Sub-project contenct Range Land Use Qing River, Daishui River, Intercepting Temporarily occupied Longdong River, Gaoqiao sewage network land 557.90 mu Intercepting River, Gaojing River 1 sewage pipe Longfeng Town, Temporarily occupied New sewers Qingshulin, Longdong land 737.32 mu River, Gaoqiao River Land area 87.3 mu, Service area about Hongmiao WWTP land acquired in 2013, Wastewater 19.5km2 2 no problem left treatment Service area about 28.9 Dashaba WWTP 76.7 mu km2 Qing River, Daishui River, Longdong River, Gaoqiao Temporarily occupied River dredging River, Gaojing River, Sha land 28.49 mu River, Longjiawan, Yulong River Riverbank Acquisition of collective Ditto Comprehensi Remediation land 445.73 mu ve river Red line areas for 3 improvement ecological functions, Land area 9.84 mu works wetland on river areas

Ancillary facilities Small riverside platform Land area 4.05 mu

Artificially expanded water Land area 54.4 mu area with wetland Ecological area Land area 9.02 mu

In total, 690.8 mu land is permanently occupied in the project, including acquisition of 599.4 mu collective land and transfer of 91.7mu state-owned land; temporary construction land will occupy 1,373.95 mu (1133.20 mu of state-owned land, 240.75 mu of collective land that is not used). There are 688 HHs with 2,788 people affected by land acquisition; 19 HHs with 80 people are affected by demolition and relocation of house, and the total floor area of relocated houses is 6,478 m2. In total, 707 HHs are affected by permanent land acquisition and relocation, with 2,868 people. The

main APs resettlement impacts by type and component are summarized in Table 1-7.

Table 1-7 Main APs Resettlement Impacts in Project Urban Ecological Sewage Ancillary Category Type Unit sewage Rehabilitation WWTP Total pipe facilities network Work Affected QTY 1 1 1 1 1 1 area Town/ street QTY 4 4 4 1 1 4 Village/ QTY 12 5 22 3 3 24 community Group QTY 39 30 61 4 3 65.0 Acquisition Total Mu 0.0 0.0 444.1 74.7 80.7 599.4 of collective Incl.: arable Mu 0.0 0.0 187.0 30.7 17.9 235.6 land land State-owned Mu 0.0 0.0 0.0 4.4 87.3 91.7 land Temporary Total Mu 557.90 737.30 78.75 0.0 0.0 1374.0 land Incl.: arable Mu 180 0.00 3.0 0.00 0.00 183.0 occupation land Relocation Residential M2 0 0 0 0 6478 6478 of house Non-residential M2 0 0 0 0 0 0 Affected HHs HH 0 0 634 34 20 688 for acquisition Affected persons for QTY 0 0 2580 135 72 2788 acquisition Affected HHs for relocation HH 0 0 0 0 19 19 of house Affected persons for QTY 0 0 0 0 80 80 Directly relocation of affected house persons HH for land acquisition and HH 0 0 0 0 0 0 relocation People for land acquisition and QTY 0 0 0 0 0 0 relocation Non-residential QTY 0 0 0 0 0 0 Population QTY 0 0 0 0 0 0 Total no. of HH HH 0 0 634 34 39 707 Total no. of QTY 0 0 2580 135 152 2868 people Number of Short-term HH 180 0 5 0 0 185 HHs affected Total persons QTY 720 0 20 0 0 740 Population

1.5 Social and economic benefits of the project

The main benefit of the project after implementation is to improve residents’ living environment and tourism environment, enhance the city image, and accelerate social and economic development.

1.5.1 Environmental benefits

Through the comprehensive implementation of this project, the water quality of Qing River will be obviously improved which is expected to be improved from class V to class IV in the near term and to be improved to class III gradually in the long term. Residents’ living environment will be greatly improved and ecological environment along the entire Qing River basin will be obviously improved, thus realizing overall sustainable development.

1.5.2 Social benefits

(1) Promote regional economic development in the minority nationality area. (2) Promote regional social development progress in the minority nationality area. (3) Promote development of the minority nationality area.

1.5.3 Economic benefits

(1) Components generating direct income Wastewater treatment and sludge treatment are revenue generating projects which will produce certain economic benefits directly. Based on ordinary wastewater treatment charging standard of 0.80 yuan/m3 of Enshi and the ordinary sludge treatment charging standard of 300 yuan/ton in Hubei, additional income of about CNY32.12 million for wastewater treatment will be generated and additional income of about CNY20.08 million for sludge treatment will be generated every year. Besides, the operation and maintenance of the WWTP, the sludge treatment plant, the rainwater regulation and storage system and the new sewer network will increase about 600 new opportunities for employment.

(2) Components not generating direct income For the industrial structure of Enshi, the third industry mainly based on tourism and service has been developed to be the pillar industry of Enshi. In 2011, 16,582,700 tourists were received in Enshi in total, and increase by 56.1% compared to previous year; the comprehensive tourism income was CNY8.645 billion, increased by 70.8%;

tourist foreign exchange income was USD 38,578,000 million, increased by 16.6%.

1.5.4 Ecological benefits

Comprehensive rehabilitation of Qing River will largely restrain the load of pollution entering Qing River. Meanwhile, combining ecological restoration measures, the river ecosystem will be rebuilt and repaired so as to gradually recover the river’s ecological balance and the water’s self-purification capacity. Then, great contribution will be made for the improvement of living environment of Enshi and Lichuan, especially the improvement of water ecological environment. Besides, the improvement of Qing River water ecological environment will also promote the improvement of the overall ecosystem and will be beneficial for restoring the habitats of migrant birds, fish and all kinds of plants and fauna. Therefore, great ecological benefits will also be created through this project.

1.5.5 Energy-saving benefit

Energy-saving technology will be extensively applied for this project, mainly including: (1) For the layout of sewage pipeline, terrain factor will be fully considered to reduce deep pipeline burying and power ascending, thus reducing system energy consumption; (2) The sewage treatment system will adopt energy-saving equipment; automatic control system will be adopted for precise control of equipment start and stop so as to reduce energy consumption; (3) River water will be treated by ecological means which will basically not need additional energy consumption; (4) Under reasonable conditions, interface for reuse of discharged water of the WWTP is reserved, thus providing technical basis for water saving in the later stage.

1.6 Project investment and implementation plan

The total investment of the project (including Enshi and Lichuan) is proposed to be CNY 1442 million (equivalent to USD234.01 million). ADB loan amounting to USD 100 million (about 620 million yuan) , accounting for about 42.73% of the total project investment; counterpart fund amounting to USD134.01 million （ CNY821.4813 million） will be provided by the Governments, accounting for about 57.27% of the total project investment, which will be composed of government financial budget and self-raised funds.

1.7 Mitigation Measures for Resettlement Impacts

Based on the engineering construction project site selection principles and ADB’s safeguard policy requirements for involuntary resettlement, careful site selection and optimized works have been co-carried out by Enshi City ADB Loan Project Leading Group and the design institute, with the assistance from local land resource bureaus and local water resource bureaus, to minimize the amount of land acquisition and house demolition. Besides, various measures on the compensation to persons affected by land acquisition have been developed so as to minimize impacts of the project. All pipelines will be constructed along existing roads. During construction, reasonable construction plan will be adopted to reduce the temporary impacts on residents’ transportation. Construction duration and construction time will be rationally arranged to reduce the impacts on people around. The pipeline construction does not involve land acquisition and house demolition.

Through various measures, the land acquisition area of the project can be minimized. Measures for impact alleviation are specified in Table 1-8. Through design optimization, the collective land acquisition will be reduced by 763 mu, land acquisition impacts can be reduced by 974 HHs with 3974 persons, the transfer of state owned land can be reduced by 452 mu and the cost of land acquisition and resettlement can be reduced by 172.22 million yuan. The comparison results before and after optimization is shown in table 1-9.

Table 1-8 Mitigation Measures for Resettlement Impacts Subproject Measures to reduce land acquisition Sewage Bury pipelines in the ecological rehabilitation work scope to avoid the interception increase of land acquisition and house demolition pipeline Urban sewage Use existing roads for new sewers construction without land New sewers acquisition and house demolition Ecological Cancel Qingshulin New Area component, thus reducing land Rehabilitation acquisition by 20,000m2; cancel Linjiang Square in the east of Work Dongmen Bridge, thus reducing land acquisition by 1,500m2 WWTP Adjust the position and optimize the scheme Ancillary facilities Reduce land acquisition

Table 1-9 Comparison Results Before and After Scheme Optimization New Category Unit Old scheme D-value scheme Affected area QTY 1 1 0 Towns/ streets QTY 4 4 0 Villages/ communities QTY 24 12 12 Groups QTY 65 39 26 Collective Total mu 599.5 1362.0 -763 land Where: Arable land mu 235.6 729.3 -494 acquisition State owned land mu 91.7 543.9 -452 Temporary Total mu 1373.95 3325.4 -1951 land Where: Arable land mu 183.00 210.7 -28 occupation

House Residence ㎡ 6478 3364 3114 demolition Non-residence ㎡ 0 1200 -1200 HHs affected by land HH 688 1662 -974 acquisition Persons affected by person 2788 6762 -3974 land acquisition HHs affected by HH 19 12 7 house demolition Person affected by person 80 52 28 house demolition HH affected by both Directly land acquisition and HH 0 9 -9 affected house demolition person Population affected by both land person 0 36 -36 acquisition and house demolition Non-residence QTY 0 1 -1 house Affected person by Non-residence person 0 10 -10 house demolition

New Category Unit Old scheme D-value scheme Total number of HHs HH 707 1662 -955 Total affected person 2868 6762 -3894 population

Costs yuan 67876519 240101455 -172224936

1.8 Objectives of the Resettlement Plan

The policy for the compensation and resettlement of affected persons is prepared based on PRC laws, local regulations and ADB’s Safeguard Policy Statement (2009). The RP is mainly to recover the income and living standard of affected persons after land acquisition, ensure reasonable compensation for them and ensure that their productivity and living standard will not be reduced than the level before. Special attention shall be paid for needs of people in exceptional poverty and vulnerable groups affected by demolition and resettlement. The primary objective of the RP is to alleviate adverse consequences of this project and to provide help for the resettlement, income and livelihood recovery of affected persons. Through compiling the RP, enable reasonable compensation for the loss of affected persons mainly by means of (i) selecting resettlement place near to the original living place; (ii) providing additional help for relocation and resettlement.

To achieve objectives of the RP, Enshi prefectural leading group organized the project social impacts survey and a series of public participation activities from December 2013 to August 2014 and the RP was prepared on this basis.

2 Land Acquisition and Resettlement Scope

2.1 Collective land acquisition

2.1.1 Collective land acquisition

The project will acquire 599.4 mu of collective land, including 235.6mu of rural arable land, 49.3355 mu of garden land, 76.202 mu of forest land (open forest land) and 197.21 mu of water area and water conservancy facilities (water level of pond and river). 688 HHs will be affected by land acquisition, involving 2788 persons in total. For subprojects, ecological restoration subproject will involve 444.1 mu of land acquisition which will affect 634 HHs and 2580 persons; affiliated facilities will involve 74.7 mu of land acquisition which will affect 34 HHs with 135 persons; WWTP subproject will involve 80.7 mu of land acquisition which will affect 20 HHs with 72 persons.

See Appendix 5 for detailed information on permanent collective land acquisition.

2.1.2 Analysis on impacts caused by collective land acquisition

According to appendix 5, ecological restoration, waste water treatment and ancillary facilities involve arable land acquisition, affecting 65 village groups in total. Among them: collective land acquisition by the ecological restoration subproject will affect 61 village groups; waste water treatment will affect 3 village groups; ancillary facilities will affect 4 village groups. See appendix 6.

According to investigation statistics, arable land of HHs for which land acquisition is involved is 12442 mu and arable land collected is 235.6 mu. The land acquisition ratio of the project (at the group level) ranges from 0%~ 23.3%. See the impacts of the project on rural collective land as shown in table 3-2.

This project will affect 688 HHs for collective land acquisition, including 2788 persons in total. Among the 688 affected HHs, 70.64% of them (486 HHs) have the impact proportion of less than 10%; 29.36% of them (202 HHs) have the impact proportion of

10%~30% and are considered significantly affected. No farmer will lose all arable lands due to this project.

For these affected HHs, the average arable land per capita will decrease from 0.36 mu to 0.27 mu (25% loss).

See appendix 7 for land change before and after land acquisition.

Per capita income of people in villages affected by land acquisition is 3000~8000 yuan. The agricultural income accounts for 5%~48%; the income loss ratio is 0%~19.26%. Impacts of land acquisition are analyzed in appendix 8. According to the analysis result, income loss ratio is less than 20%, but since land has social security function, affected persons will have psychological impact on land acquisition, especially HHs with large area of land loss. Stable employment and income source shall be ensured so as to ensure that their income level will not be decreased.

Villages largely affected include Sanlongba Village, Shuangyantang Village, Longfeng Village, Xiaolongtan Village, Jinziba Village, Shuyuan Community and others which will be attached with great importance in the income recovery process. For more details, please refer table 9-4.

2.2 Permanent occupation of state owned land

The project will involve permanent occupation of state owned land amounting to 91.70mu. See details in table 2-1.

Table 2-1 Permanent Occupation of State Owned Land State owned land Subproject mu Enhanced flood management 4.40 WWTP 87.30 Total 91.70

2.3 Temporary land occupation by the project

Sewage treatment plants, new sewers, sewage interception pipeline and ecological restoration subprojects of the project will involve temporary land occupation. This

project will occupy 1373.95 mu of land temporarily (including 1133.20 mu state owned land and 240.75 mu unutilized collective land). Sewage interception pipeline will temporally occupy 335.00 mu of unutilized collective land; the construction and production of new branch sewers will temporarily occupy 737.3 mu. All these areas for temporary occupation are for road construction and will not involve land acquisition and house demolition. Costs for road restoration have been included in the project budget; ecological restoration subproject will occupy 78.75mu of land temporarily. See table 2-2 for temporary land occupation of the project. (For details about the policy, please refer to chapter 7).

Table 2-2 Temporary Land Occupation of the Project

State owned land for Unutilized collective Region Total road use land mu mu mu Sewage interception 377.90 180.00 557.90 pipeline

New branch sewers 737.30 0.00 737.30 Enhanced flood 18.00 57.75 78.75 management

Total 1133.20 237.75 1373.95

2.4 Rural house demolition

Rural house demolition will be required for the wastewater treatment subprojects. The total construction area of rural houses to be demolished will be 6,478m2 with 19 HHs and 80 persons affected. The impact ratio is 8.2% of the village. They should be resettled due to environmental protection distance2 requirements for WWTP. See details in table 2-3 and table 2-4.

2 150 m away from the WWTP which is determined by the EIA, within this area, all house have been demolished.

Table 2-3 Rural Houses for Demolition Housing site area Brick- Brick- Sub- Popula- Village Group HH concrete wood Total project tion m2 mu m2 m2 Dashaba Tanjiaba Dashaba 16 64 3202 4.80 5038 0 5038 WWTP Village Hongmiao Hongmiao 3 16 600 0.9 1440 0 1440 WWTP Village Total 19 80 3801.9 5.7 6478 0 6478

Table 2-4 Proportion of Affected Residence Proportion Number Total Demolition Number of AP of HH Subproject Village Group of HHs population area affected HHs affected HH People m2 HH People ％ Dashaba Dasha Dashaba 110 378 5038 16 64 14.5 WWTP ba Hongmiao Hong Zhakou 123 500 1440 3 16 2.4 WWTP miao Group Total 233 878 6478 19 80 8.2

2.5 Land attachments

Land attachments affected by the construction of the project are as shown in table 2-5. Table 2-5 Land Attachments and Indoor Attachments Urban Enhanced Sewage sewage - flood Ancillary Name Unit interception WWTP Subtotal New manage- facilities pipeline sewers ment Transfor Set 0 0 1 0 2 3 mer Telegrap Stick 0 0 30 16 0 46 h pole Tree pc 0 0 100 30 0 130 Cement m2 0 0 0 240 0 240 floor Telepho HH 0 0 0 19 0 19 ne AC HH 0 0 0 19 0 19 Cable TV HH 0 0 0 19 0 19 Broadba HH 0 0 0 19 0 19 nd Ammeter HH 0 0 0 19 0 19 Water HH 0 0 0 19 0 19 meter

2.6 Vulnerable groups affected by the project

Among HHs affected, there are 19 vulnerable HHs (73 persons in total). They shall be especially cared in the resettlement process. See table 2-6. Table 2-6 Vulnerable Groups Affected subproject Town/street Type HH People Minimum rural Longfeng Town 7 28 living standard3 Xiaoduchuan Minimum rural 2 7 Ecological Street living standard restoration Wuyangba Minimum rural 6 23 Street living standard Liujiaoting Minimum rural 2 7 Street living standard Liujiaoting Minimum rural WWTP 2 8 Street living standard Ancillary Minimum rural Longfeng Town 0 0 facilities living standard Total 19 73

3 2300 yuan/year

3 Social-economic information and profile

3.1 Counties/Towns affected by this project

Enshi (county level city) governs three streets, 4 towns and 9 townships: Wuyangba Street, Xiaoduchuan Street, Liujiaoting Street, Cuijiaba Town, Longfeng Town, Banqiao Town, Baiyangping Town, Sancha Township, Xintang Township, Hongtu Township, Shadi Township, Tunbao Township, Taiyanghe Township, Baiguo Township, Bajiao Dong Minority Township and Shengjiaba Township. There are 34 urban neighborhood committees and 172 village committees. The administrative area is 3,972 km2. At the end of 2012, the total population of the city was 808,600. In 2012, the total GDP of the city was 12.31 billion yuan with per capita gross regional production of 16151 yuan. Among them, the primary industry added value of 2.275 billion yuan; the secondary industry added value of 4.74 billion yuan; the tertiary industry added value of 5.295 billion yuan. In 2012, the urban per capita disposable income of the city was 16,993 yuan, the per capita consumer spending was 12,833 yuan and the per capita living space was 36m2. In 2012, per capita net income of rural persons was 4619 yuan, the per capita consumer spending was 4137 yuan and the per capita living space was 52m2. This project will affect Wuyangba Street, Xiaoduchuan Street, Liujiaoting Street and Longfeng Town of Enshi. See social-economic impacts of the project as shown in table 3-1.

Table 3-1 Social-Economic Profile of the Project Affected Area Urban Populati Financial Rural per capita Land area GDP resident on income net income income City/ district 100 10,000 100 million Km2 million yuan yuan persons yuan yuan Entire city 3972 80.86 123.10 41.45 4619 16993

3.2 Investigation and analysis on villages affected

Administrative villages or urban neighborhood/community committees affected by this project include Sanlongba Village, Shuangyantang Village, Longfeng Village, Sanhe Village, Longfeng Community, Xiaolongtan Village and Xiangjia Village of Longfeng

Town, Dalongtan Village, Qifeng Community and Daguanyuan Community of Xiaoduchuan Street Office; Chengxiangjie Community, Guanpo Community, Shuyuan Community and Toudaoshui Village of Liujiaoting Street Office; Fengxiangping Village, Fenghuanglu Community, Jinziba Village, Guihuayuan Community and Gengjiaping Village of Wuyangba Street Office.

The river environmental renovation project will affect villages along the river and river banks within the community jurisdiction. Land for acquisition accounts for a low proportion of total land areas of related villages and groups and the impacts on land acquisition HHs will be relatively low. Xiaoduchuan Street, Liujiaoting Street and Wuyangba Street involved are urban areas. Most populations are urban persons with low proportion of agricultural income. Their main source of income is being engaged in industry, being employed by urban plants or commercial enterprises, or being engaged in individual operation, private enterprise, etc. Limited impacts will be caused by land acquisition on living and income level of AP. Within the project impacts scope, the agricultural production income proportion of all villages under various streets and Longfeng Town is lower than 50% since they are near to downtown area. Agricultural income is mainly from the production of vegetable, rice, fruit trees and breeding industry. Family income mainly relies on non-farm work, or individual business operation. For non-farm work, they are mainly engaged in construction, factory employment or service work in supermarkets, shopping malls and restaurants in downtown area. See detailed situation of various villages in Chapter 10 (10.1) and in the annex “symposium records”.

Within the affect scope of the project, garbage of various villages and communities near to the downtown area are mainly disposed by means of centralized collection and treatment. Centralized garbage treatment is not implemented for a few villages and pollution is caused at certain degree. Domestic sewage is not subject to uniform treatment. The majority of domestic sewage is directly discharged to rivers without treatment, thus leading to river ecological damage, but some villagers build biogas digester. Sewage is treated and reused through the biogas digester. Visiting of various villages has been conducted for random investigation and interview of villager or cadres. Since this is a river environment governance project which is beneficial to environmental improvement, it is supported by surrounding population and no objection has been received. In particular, according to random investigation of affected inhabitation, in spite of acquisition of part of their land, this project is also welcomed due to its environmental benefit and ecological benefit. They hope that this

project can be implemented as soon as possible. The wills and opinions of affected persons are shown in table 3-2A; see investigation results as shown in table 3-2B. Table 3-2A Investigation on Opinions of Affected Persons No. Contents Single answer

1 Do you know the “Qing River Upstream Environment Rehabilitation and Ecological ① Yes ② A little ③ No Conservation Project- ADB Loan Utilizing Project”? 2 Do you agree with the construction of this project? ① Yes ② No ③I don’t care ④ No idea 3 Will this project increase employment opportunities ① Yes ② No ③ for local persons? No idea 4 Will this project improve local environment? ① Yes ② No ③ No idea 5 Will this project protect the culture of the minority? ① Yes ② No ③ No idea 6 Will this project promote local economic ① Yes ② No ③ development as a whole? No idea 7 Will this project promote the development of local ① Yes ② No ③ tourism? No idea 8 Will this project improve environmental protection ① Yes ② No ③ awareness of local persons? No idea 9 Will it bring benefits for the improvement of ① Yes ② No ③ investment environment? No idea 10 Will it bring benefits to people in poverty? ① Yes ② No ③ No idea 11 Will it bring benefits to women? ① Yes ② No ③ No idea 12 How will it affect your family life? ① Become better and better ② Become worse and worse ③ No change ④ No idea 13 Generally speaking, will you get benefits from this ① Beneficial ② project? Damaged ③ No idea

Table 3-2B Questionnaire Survey Result Analysis

No./ Option ① ② ③ ④

1 90% 10% 0% - 2 100% 0% 0% 0% 3 95% 0% 5% -

No./ Option ① ② ③ ④

4 100% 0% 0% - 5 90% 0% 10% - 6 100% 0% 0% - 7 100% 0% 0% - 8 100% 0% 0% - 9 100% 0% 0% - 10 100% 0% 0% - 11 95% 0% 5% - 12 100% 0% 0% 0% 13 100% 0% 0% -

A total of 64 questionnaires were distributed and all of them were recovered, including 58 valid questionnaires, accounting for 91% of the total copies of questionnaires distributed. Main targets of questionnaire survey are Enshi persons or villagers in the scope of the project, including governmental officers, personnel of project implementation agencies, ordinary persons or farmers of land for acquisition for this project. According to questionnaire survey results, 90% respondents know that Qing River rehabilitation project is implemented with the support of ADB loan and 100% of respondents support the implementation of this project. Respondents hold optimistic attitude on employment increase, environmental improvement, protection of minority culture, promotion the development of tourism, and promotion of local economic development for Enshi through this project. This project is highly recognized. Respondents agree that this project has positive role on improving inhabitant’s environmental protection awareness and improving investment environment. As for the role to improve benefit for the vulnerable groups, especially women and people in poverty, most respondents also hold positive attitude. As for the impacts of the project on themselves and their families, all respondents said that they can benefit from this project.

Some respondents not only completed the questionnaire, but also proposed expectations and suggestions on the implementation of this project. Their views are summarized as below: (1) Environmental governance project will benefit the nation and the people and should be wholeheartedly supported; (2) This project shall be implemented as soon as possible to improve environment and

save the mother river; (3) The scope of watercourse renovation shall be further expanded; (4) Watercourse renovation and sewage treatment shall be implemented together with domestic waste treatment for better effect; (5) It is necessary to further improve environmental protection awareness of persons and villagers to avoid entering the vicious cycle of “environmental governance- pollution- governance”; (6) Improve the environment of Enshi, strengthening ecological protection and improving the reputation of Enshi ecological tourism.

3.3 Household sampling survey

3.3.1 Sampling proportion

Ecological restoration subproject, WWTP and ancillary facilities construction of the project will affect Longfeng Town, Xiaoduchuan Street, Liujiaoting Street and Wuyangba Street. 112 HHs were surveyed, which is 19% of the total affected HHs.

3.3.2 Population of sampled HHs

The total population of sampled HHs is 481, including 285 laborers, accounting for 60% of the total population. Among laborers, 122 persons are engaged in agriculture, accounting for 43% of total number of laborers; 67 are non-farm workers, accounting for 24% of total number of laborers. Other laborers work in township enterprises, city business enterprises or individual operation. See population of sampled HHs in table 3-3. Table 3-3 Population of Sampled HHs Total Agricult Non-far Sample Labor Percent Percent Town/ populati Male Female ural m City d HH force % % street on labor worker HH People People People People People % People % Longfeng 60 244 122 122 137 62 45 41 30 Town Wuyangb 40 163 81 82 109 46 42 16 15 Enshi a Street Xiaoduch uan 4 42 21 21 20 7 34 6 31 Street

Liujiaotin 8 33 16 16 19 7 38 4 20 g Street Total 112 481 240 241 285 122 43 67 24

Based on the age structure results, 17.88% of affected persons are 0-17 years old; 68.16% are 18-50 years old and 13.96% are more than 50 years old. See age structure of AP in Table 3-4. Table 3-4 Age Structure of Sampled HHs 0-17 18-50 50 above Subtotal City Town/ street People People People People Longfeng Town 44 166 34 244 Wuyangba Street 29 111 23 163 Xiaoduchuan 8 29 6 42 Enshi Street Liujiaoting Street 6 22 4 32 Total 86 328 67 481 Percent % 17.88% 68.16% 13.96% 100.00%

Based on education background results, 8.0% of them are illiterate, 33% of them are primary school graduated, 58% of them are middle school graduated and 1% of them are university graduated. See education background situation structure of sampled HHs in table 3-5. Table 3-5 Education Background Structure of Sampled HHs Primary Middle Town/ street Illiterate University Subtotal City school school People People People People People Longfeng Town 19 80 141 2 244 Wuyangba 13 54 95 2 163 Street Enshi Xiaoduchuan 3 14 24 0 42 Street Liujiaoting 3 11 19 0 32 Street Total 38 159 279 5 481 Percent % 8.00% 33.00% 58.00% 1.00% 100.00%

3.3.3 Income and employment of sampled HHs

Per capita income of sampled HHs ranges from 3,887 yuan to 4,385 yuan. Agricultural income of sampled HHs ranges from 505 yuan to 1,245 yuan, accounting for 13%~32% of the total income; employment income ranges from 2,467 yuan to 3,508 yuan, accounting for 68%~87% of the total income. See income situation of sampled HHs in Table 3-6. Currently, sampled HHs are mainly engaged in planting. Most laborers have non-farm work with stable income. See their type of work and planting species in Table 3-7. Table 3-6 Income of Sample HHs

Agricultural Employment Percent Percent Subtotal (yuan) Street / income (yuan) income (yuan) City town Per Per Per Total % Total % Total capita capita capita Longfeng 303542 1245 32% 645027 2647 68% 948568 3892 Town Wuyangba 142993 877 20% 571971 3508 80% 714964 4385 Street Enshi Xiaoduchu 21223 505 13% 142031 3382 87% 163254 3887 an Street Liujiaoting 27001 844 21% 101575 3174 79% 128576 4018 Street Total 494759 1029 25% 1460604 3038 75% 1955362 4067

Table 3-7 Types of Farmland and Non-farm Work Farmland type Non-farm Work type Rice, vegetables, fruit Workers, cook, repair, cement plant, brickfield, plastic factory, trees, corns, lotus root, machine repair, supermarkets, electrician, driver, shipping driver, etc. woodworking

3.3.4 Expenditure of sampled HHs

The per capita expenditure of sample HHs is 2,873 yuan, 42.55% for food, 7.11% for clothes, 14.95% for inhabitation, 6.66% for house facilities, 7.38% for health care, 7.99% for traffic and communications, 9.33% for education, culture and entertainment and 1.07% for other commodity services.

3.4 Gender analysis

In the 112 sampled HHs, there are 481 persons in total, including 241 women, accounting for 50.1% of the total, among these 18.3% are 0-17 years old, 68.6% 18-50 years old and 12.8% more than 50 years old. See age structure of women in sampled HHs in table 3-8. Table 3-8 Age Structure of Women Affected 0-17 18-50 More than 50 City Town/ street Subtotal People People People Longfeng 24 83 15 122 Town Wuyangba 13 57 11 82 Street Enshi Xiaoduchuan 4 14 3 21 Street Liujiaoting 3 11 2 16 Street Total 44 165 31 241 Percent % 18.3% 68.6% 12.8% 100.0%

Based on the education background, 12.4% of affected women are illiterate, 42.5% of them are primary school graduated, 45% of them are middle school graduated and 0.5% of them are university graduated. See education background situation of sampled women in table 3-9. Table 3-9 Education Background Structure of Affected Women Primary Middle Illiteracy University Subtotal City Town/ street school school People People People People People Longfeng 15 51 55 1 122 Town Wuyangba 10 35 37 0 82 Street Enshi Xiaoduchua 3 9 9 0 21 n Street Liujiaoting 2 7 7 0 16 Street Total 30 102 108 1 241 Percent % 12.4% 42.5% 45.0% 0.5% 100.0%

According to the survey and analysis, most women are engaged in agriculture, accounting for 43~70% of agricultural income; employment income accounts for 20~50% of total income. Generally speaking, women’s income accounts for 25~30% of total household income. See income structure of women in table 3-10. Table 3-10 Income Structure of Women Agricultural Employment Share of Total City Town/ street income income HH income % % % Longfeng Town 70 20 25.5 Wuyangba 50 35 27.1 Street Enshi Xiaoduchuan 43 50 29.1 Street Liujiaoting Street 45 45 28

See opinions on resettlement of different gender of affected persons in surveyed HHs in table 3-11. Table 3-11 Opinions on Resettlement Male Female Item Primary Secondary Primary Secondary 1 Just compensation Primary Primary 2 Prompt compensation Primary Primary 3 Social integration Secondary Secondary 4 Replaced land for farming Secondary Secondary 5 Income loss Primary Primary 6 Future employment Primary Primary 7 Children’s education Primary Primary 8 Compensation for land Secondary Primary acquisition 9 Separation form children Primary Primary and relatives

To sum up, the education background of women in affected area is relatively lower than men. Judging from employment situation, more than 50% women are engaged in housework and agricultural production at home. Some work in private enterprises or production/ service business units in the city.

As a river environment rehabilitation project, it can directly improve river water quality and environmental quality along the river. It will improve residents’ living conditions and health conditions and is expected to generate ecological and environmental benefits. According to the survey, affected persons, including women, hold active attitude for this project and they will actively cooperate with land acquisition necessary for this project to promote early implementation of the project to improve environment and benefit local people.

According to the survey, villagers are highly concerned reasonable compensation for necessary land acquisition. All affected villagers among surveyed families agree with land acquisition. They believe that resettlement compensation will be made in fair way and agree with compensation standard. Of course, higher compensation standard will be welcomed.

3.5 House demolition

Due to environmental protection distance requirements4, 16 HHs shall be demolished for Dashaba WWTP. They are persons in Dashaba Group, Tanjiaba Village. They have stable non-agricultural income. The land nature of their houses is collective land. For houses to be demolished, they have been well prepared psychologically.

Land for Hongmiao WWTP has been acquired, but according to the environmental protection scope for WWTP expansion, 3 HHs shall be dismantled. All of them are Tujia people. The total area of their houses is 1,440m2. Due to the construction of Longfeng Avenue, they have already signed the house demolition agreement for own transition. The resettlement place is Xiaolongtan Garden. The estimated construction period of this garden is 2 years.

3.6 Ethnic Minority

Enshi Tujia and Miao Autonomous Prefecture mainly has Han, Tujia and Miao nationalities, about 45% for Han, about 46% for Tujia and about 6.5% for Miao. The total minority population in Enshi City accounts for 38.5% of its total population. Within the project impacts areas, the proportion of minority population in various towns and streets ranges from 16% to 51%. Specifically, in Longfeng Town within the project impacts scope, Tujia people account for about 12% and Miao people account for

4 150 m away from the WWTP which is determined by the EIA, within this area, all house have been demolished.

about 4%; in Xiaoduchuan street office, Tujia people account for about 38% and Miao people account for about 7%; in Liuiaoting street office, Tujia people account for about 50% and Miao people account for about 1%; in Wuyangba street office, Tujia people account for about 24% and Miao people account for about 2%.

Tujia and Miao people have a long history in Enshi. They are good at singing and dancing and have many Tujia folk songs and dances full of local characteristics. Tujia people love folk songs, including love songs, wedding songs, waving songs, labor songs and asking songs, etc. Waving dance, Youyang folk songs and Youyang epic songs have been elected as national intangible cultural heritage. Tujia and other minorities keep their own native characteristic folk culture. For example, "girl’s meeting” is known as Tujia’s valentine's day. “Mid-month festival”, also known as “ghost festival” has similar customs of Han. In addition to preserving native characteristic folk culture, Tujia is also well integrated with Han to form local characteristic manners and customs. Tujia has its own language. Tujia language is not only the common language used by local Tujia people, but also a common dialect used by local Han and other minority people. In spite of deep integration of Han, Tujia, Miao and other minorities in Enshi, Tujia and Miao's traditional clothes are commonly worn. Many minorities still maintain the habit of wearing clothes with national feature. After long term historical development, marriage among Han and Tujia, Miao and other minorities is very common. All nations here get along with each other harmoniously.

In addition to basic political rights stipulated by the constitution and other laws and regulations, Tujia, Miao and other minorities also enjoy preferential policies on national autonomy and others and enjoy legitimate rights on education, culture, employment, family planning, economic development and others. According to social-economic survey for resettlement, there is certain amount of minority families being affected. Therefore, great attention has been paid for listening to opinions and suggestions of the minority in project argumentation and implementation process. Since this project is mainly located at downtown area and suburb area, minority here has close customs, living style, economic condition, language and culture to Han people. This project will not have adverse impacts on cultural customs of the minority.

As an environmental embankment project, it will improve river water quality and river ecological environment; it will actively promote ecological environment protection in

minority area, improve environment quality and further improve Enshi’s competiveness on ecological environment tourism and minority characterized tourism. It will promote the development of tourism here, promote local economic development of the minority and improve income level of the minority.

In social-economic survey process, all minority people expressed that they would actively support this project so as to improve river environment and benefit the public.

3.7 Vulnerable groups

In the project area, there are some vulnerable groups with living difficulties and low income. They will be given with minimum living welfare, be regularly surveyed, updated and subsidized according to the policy. Enshi Government will also actively create employment opportunities to ensure basic life standard of such families.

3.8 Conclusion

(1) More than 95% AP support the implementation of the project. (2) Agricultural income of affected persons accounts for less than 50% of their total income. (3) Most of affected laborers have non-farm working experience and relatively stable income. (4) Land acquisition does not have significant impacts on long-term stable livelihood of affected persons. (5) This project has more positive impacts other than impacts on the development of minority. For impacts caused by land acquisition, appropriate policy will be developed to ensure no decrease of living standard. (6) Fair and reasonable compensation and resettlement are highly concerned by affected persons. (7) Affected persons are concerned about the resettlement sites. (8) Affected persons are concerned about the implementation of endowment insurance for land lost farmers. (9) Affected persons are concerned about the source of construction investment.

4 Information Disclosure, Negotiation and Participation

In order to establish resettlement work in the project on a practical and reliable basis, maintain the legitimate rights and interests of resettled persons and resettled HHs, and reduce dissatisfaction and disputes, this project attaches great importance to the participation and negotiation of these resettled persons. RP is prepared based on full negotiation with affected persons and through information disclosure. During the planning, design and implementation of decision-making of this project, Enshi City ProjectLeading Group, each subproject resettlement office and Tongji Architectural Design (Group) Co., Ltd. (design institute) utilize opportunities like social and economic investigation and social impact assessment and investigation to join hands with each consulting organization to extensively publicize the basic conditions of this project, solicit opinions from various groups of affected persons, and negotiate issues commonly concerned by various means. The results of public participation and negotiation have provided a basis for perfection of resettlement scheme.

4.1 Public participation and negotiation activities launched so far

As for major topics involved in RP stage, the resettlement office of the project organizes design institute, consulting organizations, local resettlement department and AP to publicly release information for negotiation by various means. The main information disclosure and negotiation activities so far are shown in Table 4-1.

Table 4-1 Main Activities of Information Disclosure and Negotiation Activities on Resettlement Number of Contents of public participation and No. Time Participants participan Organizer negotiation ts (person) Tongji Architectural Design (Group) Co., Ltd.,Enshi 2013-02-14 to Optimization of project design Enshi City Project Leading 1 City Project Leading Group and representatives of 20 2013-09-30 scheme Group affected persons Tongji Architectural Design (Group) Co., Ltd.,Enshi 20131202-2013122 Identification of quantity of land Enshi City Project Leading 2 City Project Leading Group and representatives of 53 0 acquisition and house demolition Group affected persons Tongji Architectural Design (Group) Co., Ltd.,Enshi 20131202-2013122 Enshi City Project Leading 3 Negotiation of compensatory policy City Project Leading Group and representatives of 53 0 Group affected persons Tongji Architectural Design (Group) Co., Ltd.,Enshi 20140119-2014012 Investigation of resettlement Enshi City Project Leading 4 City Project Leading Group and representatives of 12 2 scheme Group affected persons Relevant departments of Enshi in charge of land, water conservancy, Tongji Architectural Design (Group) Co., Ltd.,Enshi 20140216-2014022 Enshi City Project Leading 5 etc. negotiate with each other City Project Leading Group and representatives of 15 1 Group concerning floor occupancy and affected persons organization structure of the project. Tongji Architectural Design (Group) Co., Ltd.,Enshi 20140401-2014040 Enshi City Project Leading 6 Dashaba WWTP City Project Leading Group and representatives of 12 5 Group affected persons

The delegation of ADB authenticated the contents of this project after March 2013. Tongji Architectural Design (Group) Co., Ltd. and Enshi City Leading Group interviewed relevant affected persons. The following conclusions were drawn after multiple interviews:

Firstly, the interviewees adopted positive evaluation on the construction of this project and had relatively high expectations on various positive impacts possibly brought by this project. For example, over 95% of persons were in favor of construction of this project. Most people thought this project could increase the number of jobs, improve the local environmental quality, promote local economic development, drive the development of local tourism, improve the local investment environment, and benefit local females who can improve their family lives due to this project. Meanwhile, they also thought that the government ought to accelerate the construction progress of this project.

Secondly, it was also discovered in these interviews that the affected persons paid great attention to resettlement, especially compensation standards and resettlement policies. Furthermore, they were also wondering where such huge investment came from.

Based on these conditions, Enshi City Leading Group and other relevant organizations will adopt various means including issuance of Resettlement Information Booklet, posting a notice to publicize land acquisition and house demolition policy and holding villager representative meetings during preparation and implementation of the project to introduce the conditions of the project, intensively publicize national land acquisition and house demolition policy and specific measures adopted by Enshi, and make relevant information of the project public so as to practically carry out resettlement policy.

4.2 Feedback from public participation and negotiation opinions

Tongji Architectural Design (Group) Co., Ltd. and Enshi City Leading Group launched social and economic investigation among affected persons from December 2013 to May 2014. They classified and summarized opinions and suggestions put forward by affected persons, timely fed back them to engineering design institute, and fully considered and absorbed these opinions and suggestions when preparing RP. Table 4-2 shows the feedback of public participation and negotiation opinions so far.

Table 4-2 Opinions and Feedback from Public Participation and Negotiation Cause and consequence of Item Problem Improving measures problem

The information is not smoothly Determine the scope of impacts as soon as possible and timely communicated. Most affected persons Impacts the HHs involved in inform the affected persons to make it convenient for resettled Land acquisition haven’t acquired information of the land acquisition and house HHs to timely rebuild houses again. and house project from formal channels especially demolition from timely arranging demolition for relatively accurate time of land their lives Meanwhile, it is recommended to utilize extensive approaches to acquisition and house demolition. spread information related to the project to enable them to have deep and sufficient understanding of the project. The payment and issuance of compensation are related to the The department in charge of resettlement shall announce The persons care about the payment future opportunities of HHs relevant compensation standard before project construction to and issuance of compensation. involved in land acquisition and enable the people to know fairly well. house demolition to earn a living. Compensation costs It is recommended to strictly implement system and financial disclosure, i.e. disclosure of compensation standard, measured Some persons are worried that quantity, evaluation grade, etc. After determination of Issuing form of compensation compensation cannot be issued compensation items, the participation and supervision of affected in full amount or intercepted. persons shall be accepted. Compensation is directly issued to the AP by means of bankbook.

Cause and consequence of Item Problem Improving measures problem Project construction impacts Project construction impacts traffic. Properly optimize construction scheme. persons going out. Since construction vehicles will Public facilities and During project construction, the construction of greenbelts at two generate relatively big noise environment sides of roads is also considered. Sound proof wall can also be Noise pollution during construction, the normal set in special road sections to lower noise. Measure are included work and rest of villagers living in the Environment Management Plan. near the road will be impacted. Transportation facilities It is recommended to add construction roads in densely Some ancillary facilities convenient for Ancillary facilities convenient for pedestrians to populated places or places with schools to make it convenient for people shall be built. cross roads shall be provided. the travel of people at two sides. Issue Resettlement Information Booklet and establish channels for suggestions, complaints and feedbacks. For example, Enable the affected persons to complaint telephone line and suggestion box. Establish a Let the population affected by the enjoy project interests so as to negotiation system and constantly hold forums participated by Mass participation project take part in each process of the enhance the initiative of local representatives of project management office, street office and project. government in each level and village committee as affected persons to negotiate local people. countermeasures against problems together. A project level grievance redress mechanism will also be established (see Chapter 5). The original land acquisition is relatively The proposed design has reduced land acquisition. Further Meeting discussion Optimize scheme design. abundant reductions may be possible during detailed design.

Cause and consequence of Item Problem Improving measures problem Resettlement scheme of Dashaba Resettlement issue of 16 HHs in On-the-spot survey Resettle these HHs in Miaowan. WWTP Dashaba Group

4.3 Plan of negotiation with affected persons in next step

With the continuous advancing of project preparation and implementation work, Enshi City Project Leading Group will launch further negotiation activities. The main negotiation contents include: (1) Specific opinions of affected persons on project design Before construction, each subproject unit shall inform affected persons along the line of project design condition and specific impacts by various means. When construction starts, Enshi City Project Leading Group will conduct project optimization design. (2) Compensation for resettled HHs and arrangement of payment progress (3) Impacts avoiding and recovering measures for enterprise (4) Recovery of affected functions during construction stage (e.g. power supply and water supply) (5) Other problems concerned by affected persons.

The schedule of next-step negotiation between project implementing unit and affected persons is shown in Table 4-3. According to the work arrangement of Enshi City Project Leading Group, district, street office, and village (community) may hold mass coordination meeting on an irregular basis to negotiate certain problems and report relevant opinions to Enshi City Project Leading Group. The monitoring department shall not only take part in the negotiation activities organized by Enshi Urban Construction and Investment Company but also independently negotiate with affected persons concerning other monitoring problems and collect their complaints and suggestions as well as provide monitoring information for land acquisition and house demolition department in each government level. Table 4-3 Schedule of Negotiation with Affected Persons Negotiation content Schedule Participants Enshi City Project Leading Group, design department and project Opinions on project design 20140601-20141031 resettlement implementation executing organization Enshi City Project Leading Group, Resettlement method and design department and project 20140601-20141031 specific implementation plan resettlement implementation executing organization

Negotiation content Schedule Participants Enshi City Project Leading Group, Whole project project resettlement implementation Recovery of income of implementation executing organization and affected persons process community and external monitoring agency Resettlement office of project Whole project Problems occurring during resettlement implementation implementation project implementation executing organization and external process monitoring agency Monitoring department, project Whole project resettlement office, project Collection of suggestions and implementation resettlement implementation complaints process executing organization and community

4.4 Methods for affected persons’ participation in negotiation during implementation

1) Direct methods (1) Forum with affected persons Concentrate central problems intensively concerned by affected persons by holding forums with representatives or cadres of affected persons, collect their opinions, and solicit the suggestions of local government and resettlement department on these problems. (2) Land acquisition and house demolition consulting meeting Land acquisition and house demolition consulting meeting is jointly organized by resettlement office of each subproject and held in different areas. Organize affected persons to visit relocation sites where they can get to know relocation sites, various supporting facilities and current situations so as to make it convenient for them to choose and solicit their opinions to improve RP. After completion of consulting meeting concerning removal and relocation, relevant personnel shall visit affected persons door-to-door and fully negotiate with them before signing “Compensation and Settlement Agreement”. 2) Indirect method The masses may reflect complaints, opinions and suggestions through village (community) committee, land acquisition and house demolition department in each

level and monitoring department, and the resettlement office will formulate measures to address these opinions according to relevant handling procedure.

4.5 Policy disclosure and disclosure plan of Resettlement Information Booklet

In order to enable all AP to timely and fully comprehend the policy and detailed implementation rules of resettlement of this project and truly realize open, fair and transparent resettlement work, project resettlement organization in each level shall adopt the following measures to ensure policy openness of resettlement; (1) Publicly release resettlement policy and standard of this project in Enshi News Network or other media before November 30, 2014. (2) Each affected community makes public of impacted conditions of the community, compensation standard, resettlement measures, channels for complaints and appeals and other relevant information to community cadres or on other public occasions. (3) Place RP of this project in the office of Enshi City Project Leading Group or other public occasions before November 30, 2014. All AP may check the plan at any time. (4) Issue Resettlement Information Booklet to each affected HH. Resettlement Information Booklet will list detailed resettlement policy and compensation standard, project implementation progress, procedure solving dissatisfaction and complaints of affected persons, etc. suitable for this project, which will be issued to AP after the RP is approved by ADB and Hubei Provincial Government. The format of the manual is shown in Appendix 1. After approved , the RP will be publicized on the website of ADB. (5) If the RP needs updating before project implementation, the policy and Resettlement Information Booklet disclosed will be updated too.

5 Grievance Redress Mechanism

Resettlement is a complicated task. Since land acquisition and resettlement involve an extensive range and relate to vital interest of resettled persons, certain opinions of affected persons on resettlement, compensation, etc. would exist unavoidably during specific implementation process, which can result certain dissatisfaction and complaints. In order to make sure the complaints of affected persons can be quickly and smoothly solved, Enshi City Project Leading Group will establish a highly transparent, simple and feasible dissatisfaction and complaint collecting and handling procedure to handle person’s dissatisfaction and ensure smooth implementation of resettlement work in an objective, fair and highly efficient way.

5.1 Methods for collection of dissatisfaction and complaints

(1) Through reporting of local resettlement office, including persons’ complaints, progress, working measures and existing problems; (2) The construction contractor report construction logs to development organization of the Owner every day. The construction contractor mainly reflects the conditions of construction impacted to the masses. (3) Land acquisition and house demolition coordination issues discovered by development organization of the Owner during inspection tour on construction site. (4) Relevant information reflected by external monitoring agency. (5) Letters and visits of affected persons. (6) Conditions reflected by workstation, an agency of development organization of the Owner. (7) Relevant specific problems reflected during inspection of departments in charge of audit, discipline inspection, etc. (8) Spending conditions of land acquisition and house demolition costs collected from detailed statement of capital appropriation from the deposit bank. (9) Special investigation of internal monitoring.

5.2 Complaint and appeal procedures

Stage 1 Affected persons provide oral or written dissatisfaction to community or local resettlement office. If it is oral dissatisfaction, the community or the local settlement office must properly keep written records and make a definite reply within 2 weeks. If the problems involved are relatively significant and it is thus required to ask superior

resettlement office for instructions, it shall strive to obtain the replied opinions of superior resettlement management department within 2 weeks.

Stage 2 If the replied opinions in stage 1 do not satisfy the complainants, the complainants may appeal to subproject resettlement office within one month after receiving decision of stage 1, and the subproject resettlement office shall make a decision on processing of the appeal within 3 weeks.

Stage 3 If the affected persons are still dissatisfied with the replied opinions of subproject resettlement office, they may appeal to Enshi City Project Leading Group within one month after receiving replied opinions in stage 2, and the leading group will provide replied opinions within 4 weeks. APs can also submit complaints to ADB which will be handled by the Project Team. If an AP is still not satisfied and believes they have been harmed due to non-compliance with ADB policy, they may submit a complaint to ADB’s Office of Special Project Facility or Office of Compliance Review in accordance with ADB’s Accountability Mechanism5.

If the affected persons do not choose to solve the problem through the procedures mentioned above, they can directly file a lawsuit to a civil court. All complaints and appeals (oral or written) shall be specified in resettlement internal and external monitoring report and reported to the PMO and ADB.

5.3 Principles for handling complaints

Resettlement office in each level shall conduct on-site survey and research of complaints from the masses, fully solicit the opinions of the masses, negotiate with them patiently and repeatedly and objectively and fairly propose handling opinions according to relevant national regulations and various principles and standards stipulated in the resettlement action plan. As for complaints such resettlement offices are unable to handle, they shall be timely reflected to the superior land acquisition and house demolition department, and the resettlement offices shall assist the department in properly conducting investigation. If the deciding organization in the previous stage hasn’t replied to the problems

5 For further information see: http://www.adb.org/Accountability-Mechanism/default.asp.

appealed within stipulated date, the claimant is entitled to appeal.

During resettlement process, women may have their special complaints and appeals. Therefore, the project management office plans that each resettlement group shall hire at least 1 female staff to handle appeals from women. Local government and non-governmental organizations like civil affairs bureau and women’s federation will also supervise resettlement activities to safeguard the rights and interests of AP, especially women.

5.4 Contents and methods on replying to complaints

5.4.1 Contents of replying to complaints

(1) Brief description of dissatisfaction of complaints (2) Results of investigated facts (3) Relevant regulations of the state and principles and standards of resettlement action plan (4) Handling opinions and specific basis (5) The complainers have the right to appeal to the higher level of resettlement department and bring law suits to the civil courts, of which legal fees are paid by the project unit.

5.4.2 Methods of replying to complaints

(1) As for individual complaints, the reply is directly sent to the complainants in writing. (2) As for frequently reflected complaints, the community where the complaints live will be informed by holding Village (community) committee or sending relevant documents.

No matter which reply method is adopted, the replied materials must be submitted to the resettlement department the complaints belong to.

5.4.3 Recording, tracking and feedback of complaints and appeals

During implementation of RP, the land acquisition and house demolition department shall properly register and manage materials concerning complaints and handling results and report to Resettlement Department of Enshi City Project Management

Office in writing once a month. Resettlement Department of Enshi Urban Construction and Investment Co., Ltd. is responsible for checking the registration condition of complaint handling on a regular basis.

In order to completely record complaints of AP and handling conditions of relevant problems, Enshi City Project Leading Group has formulated a registration form of complaints from AP and handling conditions of appeals. The format of the form is shown in Table 5-1 below.

Table 5-1 Registration form of Resettlement Complaints and Appeals Recipient: Time: Location: Name of Content of Proposed Actual handling Solution required claimant appeal solution condition

Claimant Recorder

(signature) (signature) Notes: 1. The recorder shall faithfully record the content and requirement of appeal from the claimant; 2. The appealing process shall be free from any disturbance or obstruction; 3. The proposed solution shall be replied to the claimant within stipulated time.

The main contents of this chapter will be publicly disclosed to affected persons in this project and sent to each affected HH by means of open publicizing materials before implementation of resettlement. All complaints and appeals will be summarized and then reported to ADB.

5.5 Contact method for expression of complaints and appeals

The resettlement office of project resettlement implementation executing organization, etc. are mainly in charge of arranging main principals to search and receive dissatisfaction and appeals from affected persons. The names of principal, office addresses and telephone numbers are shown in Table 5-2.

Table 5-2 Information on Organizations and Personnel Receiving Complaints and Appeals from AP Resettlement offices of Contact Telephone Address district and agency person No. Enshi ADB Loan Utilizing Project Management Cui Yingfei No.27, Shifu road, Enshi city 07188212370 Office Zhu Wuyangba Street Office, Enshi Wuyangba Street Office 07188221309 Rongzhang city Demolition Office, Liujiaoting Liujiao Office Yao Min 07188259905 Street Office, Enshi City Demolition Office, Xiaoduchuan Xiaoduchuan Office Li Xiaoyan 07188245202 Street Office, Enshi City Demolition Office, Longfeng Longfeng Town Lai Fengchao 07188312418 Town, Enshi City Enshi ADB Loan Utilizing Enshi Land and Resources Project Management Tan Bixin 07188416408 Bureau Office House acquisition office of Jiang Yang 07188285818 Enshi Li Xuemei Land Acquisition Affairs, Enshi 07188209528

6 Legal Framework

6.1 Relevant policies and principles of project resettlement

The resettlement work in HEQRUERP will strictly follow relevant laws, regulations and policies of the People’s Republic of China, Hubei Province and Enshi City where the project is located. Relevant ADB policy concerning involuntary resettlement will be fully observed during planning and implementation of resettlement work. See Appendix 2 for details.

The preparation of RP of this project and the implementation of follow-up resettlement work will also be carried out according to Safeguard Policy Statement issued by ADB in June 2009. The implementation of resettlement work shall be implemented in strict accordance with policy determined in this RP. In case of any change during implementation, the consent of ADB shall be obtained first. If a major change takes place, the project management office will negotiate with the AP and provide an updated RP.

 Relevant ADB policy requirements on involuntary resettlement Safeguard Policy Statement issued on June 2009 has provided systematic policy basis and practical operation guide for resettlement of loan projects of ADB. Accountability Mechanism Policy, 2012 Public Communications Policy, 2011 A Planning and Implementation Good Practice Sourcebook-Resettlement and Indigenous Peoples, 2012 ADB’s policy requirements on involuntary resettlement has three key elements: (1) compensation for lost properties, livelihoods and income; (2) assistance in resettlement, including the provision of a resettlement site, and appropriate facilities and services; and (3) assistance for restoration, as a minimum, to the standard of living in the absence of the project, taking 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 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 nongovernment organizations. Inform all 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, especially those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensure their participation in consultations. Establish a grievance redress mechanism to receive and facilitate resolution of the affected persons’ concerns. Support the social and cultural institutions of displaced persons and their host population. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase.

(3) Improve, or at least restore, 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 no land assets.

(8) Prepare a resettlement plan elaborating on displaced persons’ entitlements, the income and livelihood recovery 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 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 support before physical or economic displacement. 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. Monitoring reports will be disclosed.

 Relevant PRC policy requirements on involuntary resettlement Please refer appendix 2.

6.2 Compensation standards

6.2.1 Land and property losses will be compensated according to the following principles

(1) Compensation standards of all property are determined according to the replacement standard. Compensation costs shall be paid before acquisition of property and land. (2) Provide affected laborers with training and help as well as jobs to make sure their living standards are not lowered. (3) Ground attachments like young agricultural crops and trees shall be compensated in full amount based on market prices. (4) Strengthen construction management, shorten construction period and reduce adverse impacts as much as possible. (5) Resettlement subsidy shall be granted to laborers impacted by land acquisition. After obtaining resettlement subsidy, such laborers can continuously engage in current occupations or use the subsidy for individual business.

6.2.2 Land compensation standards and use

Notice on Integrated Land Prices and Uniform AAOV Rates for Land Acquisition in Hubei Province is applied to land acquisition in this project. This Notice was released on March 13, 2014 and put into effect on April 1, 2014.

During acquisition of rural collective land, the land compensation fees will be paid to rural collective economic organization enjoying ownership of land acquired. If the rural collective economic organization cannot adjust land with equal quality and quantity for farmers with land acquired to conduct continuous contract operation, the compensation fees shall be granted to the rural contractors (affected HHs). The standards of land compensation fees are shown in Table 6-1. Include: The adjustment factor of forestland is 0.7, while that of construction land and unused land is usually 0.5.

The compensation for ground attachments and young crops shall be paid to the owner of such ground attachments and young crops. The standards of various taxes and fees paid for land acquisition are shown in Table 6-2.

Table 6-1 Compensation Rates of Land and Property Losses

Unit Areasⅰ Areasⅱ

Dalongtan Village, Qifeng Community, Daguanyuan Community, Daqiaolu Community, Jichanglu Community, Fengxiangping Village, Fenghuanglu Sanlongba Village, Community, Guanpo Shuangyantang Community, Tanjiaba Village, Longfeng Land type yuan/mu Village, Gengjiaping, Jinziba Village, Sanhe Village, Village, Guihuayuan Longfeng Community, Community, Sankongqiao Xiaolongtan Village Neighborhood Committee, and Longfeng Village Guihuayuan Community, Gaoqiaoba Village, Shuyuan Community, Chengxiangjie Community and Toudaoshui Village Productivity – average yuan/mu 2561 2210 annual output value 23 (3 times for village 186 (3 times for village Multiple Times collectives and 20 times for collectives and 15 individuals) times for individuals) Comprehens ive price in land yuan/mu 58903 39780 acquired district Compensati General on standard cultivated Times 1 1 for young land croups Vegetable Times 1.1 1.1 plot

6 The multiple is calculated according to the average remaining cultivated land area according to the land administration law of PRC. The more remaining cultivated land area, the less multiple.

Adjustment Vegetable Times 1.1 1.1 factor plot Orchard Times 1.1 1.1 Tea garden Times 1.1 1.1 Intensively cultured Times 1.1 1.1 fishpond Forestland Times 0.7 0.7 Unused land Times 0.5 0.5

Table 6-2 Standards of Various Taxes and Fees Paid for Land Acquisition Name of tax Collection standard Paid use fee for newly added construction 20 yuan/m2 land Cultivated land reclamation fee 25610 yuan/mu Cultivated land occupancy tax 20 yuan/m2-30 yuan/m2 Intermediary valuation fee 0.8 yuan/m2

Land acquisition managerial fee 1.1~3% of land acquisition cost

According to the compensation rates, a risk-free income analysis is provided in appendix 9. A risk-free income means the APs deposit all compensation to the bank and get the interest from the bank. In china, the latest one-year deposit rate is 3.3%, if the APs deposit 10000 yuan into the bank for 1 year, they can earned 330 yuan as the interest. In other sentence, if the APs save all the compensation into the bank, they can earn 1943.80 yuan/mu in area i and 1312.74 yuan/mu in area ii which is much higher than their net income from the land. And since china adopts steady monetary policy, it is estimated the deposit rate will not change during the implementation phase of this project.

6.2.3 Demolition, compensation and resettlement policies and standards for rural houses and ancillary facilities

All houses demolished in this project are rural houses. The house compensation price is determined using appraisal method according to actual circumstances. The basic principle of appraisal is replacement price. The key point of house demolition, compensation and resettlement policy is that the affected persons can choose property exchange or monetary compensation. If monetary compensation is selected, the house compensation price will be determined

using appraisal method according to actual circumstances. The basic principle of appraisal is replacement price. In addition, resettled HHs can obtain relocation subsidy, transitional fee and incentive fees. The specific policies are shown in Table 6-3, which are in accordance with (i) Notice on Compensatory Relocation Plan for Expropriated Houses on Collectively-Owned Land in Planned Urban Area issued by Enshi Government. No.（2011）42 Document issued by General Office of Enshi Government And (ii) Supplementary Notice on Compensatory Relocation Plan for Expropriated Houses on Collectively-Owned Land in Planned Urban Area issued by General Office of Enshi Government. No. (2013) 25 Document issued by General Office of Enshi Government.

Considering that population per household to be relocated is 4 people, each household will be provided temporary transitional subsidy of 600 yuan /month. In accordance with local situation, one can rent a 90m2 apartment (two bedrooms and one living room) with 600 yuan /month. Therefore, the subsidy meets the need of house renting. Table 6-3 Policy and Standard for House Relocation Compensation Type Policy Monetary compensation in accordance with expropriation Without certified compensation plan. Or relocation to an apartment in a land use right or house area ratio of 1:1 and certain reward. Price for extra house ownership. (insufficient) area is settled in accordance with cost price of similar house. Monetary compensation accordance with expropriation compensation plan. Or (1) apartment on the 1st floor Houses on expropriated is exchanged for an apartment in the 1st collectively-owned floor in accordance with standard with an exchanged land in central area no more than 120m2. An expropriated apartment in urban area the 1st floor with an area less than 120m2 can be With certified use exchanged for a 60m2 apartment on the 1st floor in the right or house relocation residential community. If the expropriated ownership apartment is less than 60m2, an amount shall be paid in accordance with cost price of similar apartment. An expropriated apartment on the 1st floor with an area more than 120m2 but less than 160m2 (including 160m2) can be exchanged for an 80m2 apartment on the first floor in the relocation community. An expropriated apartment above 160 m2 but below 200m2 (including 200m2) can be

exchanged for a 100m2 apartment on the first floor in the relocation community. An expropriated apartment on the first floor with an area above 200m2 can be exchanged for an apartment on the first floor with an area of 120m2 in the relocation area. For extra (insufficient) area in accordance with the standard stated above, price difference shall be settled in accordance with cost price of similar apartments. (2) An expropriated apartment on 2nd or higher floor shall be exchanged for a relocated apartment with an apartment area ratio of 1:1 and price difference shall be settled in accordance with cost price of similar apartments. If residual area of an expropriated apartment exchanged for a relocated apartment (including residual area on the first floor and rewarded area) is less than half the area of a relocated apartment in the community, a competent department shall make payment in accordance with cost price of relocated apartment. If residential area of an expropriated apartment (including residual area on the first floor and awarded area) exceeds half the area of a relocated apartment, one can apply for one more relocated apartment and pay the price difference in accordance with cost price. For a privately owned house which is expropriated, Street Office or Longfeng Town Government shall provide Houses on monetary compensation in accordance with the collectively-owned compensation plan. Each household can apply for land in suburb establishing a house in a centralized relocation area by areas itself or apply for buying an apartment in accordance with the cost price of relocated apartment. If an expropriated apartment has no certified land use right or house ownership, after exchange for a relocated apartment at a house area ratio of 1:1, a competent department shall reward the household with 20% of the Reward area of the expropriated house. One does not need to Type 1 pay the price difference of the rewarded area. One can

also choose to receive monetary reward for a corresponding area. The calculation formula is as follows. Area of expropriated house * 20% * unit cost price of apartment.

For a house that has certified land use right and house ownership, reward shall be given in accordance with the following standard. (1) If one chooses not to exchange an expropriated house on the first floor for a relocated apartment in the first floor, he can exchange for an apartment on the 2nd floor or above at a ratio of 1:2. (2) If one exchanges an expropriated house on the first floor Type 2 for a relocated apartment on the 2nd floor or above at a ratio of 1:1, he will receive a reward of 40m2 for each household member and he does not need to pay a price difference. One can also choose to receive monetary reward with a calculation formula as follows. Number of household members * 40m2/person * cost price of relocated apartment. For those who sign agreement and move out within the period stated in the expropriation compensation plan, the competent department shall reward one with 5% of ownership area of expropriated house and one does not Type 3 need to pay the price difference. One can also choose to receive monetary reward with a calculation formula as follows. Ownership area of expropriated house * 5% * unit cost price of relocated apartment. Interior decoration and ancillary facility shall receive

monetary compensation based on assessed price. The cost price of a relocated department consists of land price, supporting facility shared equally and construction Others price, which is subject to review result of the audit

department

If a HH cannot afford a relocated house (including economically affordable housing), they shall be assigned

a low-rent housing or public rental housing in priority in accordance with related policy. Relocation 800 yuan/household subsidy Temporary 600 yuan /month per household with a transitional period relocation subsidy of 12 months.

Telephone 220 yuan/set Cable television 650 yuan/household

Broadband 116 yuan/household Air conditioner 150 yuan/set Solar energy 150 yuan/set Electric 1000 yuan transformer Telegraph pole 5000 yuan Trees 10-100 yuan Cement floor 30-80 m2/yuan

Table 6-4 Standard for House Replacement and Other Compensations Category Unit Standard (yuan) Frame m2 1200 Brick-concrete 1 m2 600 Brick-concrete 2 m2 525 Brick-concrete 3 m2 492 Brick-wood m2 510 Soil-wood m2 420 Simple hut m2 225 Cattle pen/pigsty m2 158 Incentive fees m2 5% of total House footing m2 90 Temporary building m2 300 Transitional fee HH 4800 Moving fee HH 2000

In 2009, Enshi Government issued interim procedures to guarantee basic living standard of farmers whose land is expropriated to establish a basic principle of social welfare for farmers whose land is expropriated and lay down target scope, identification procedure, fund collection and contribution standard, basic life guarantee, policy consistency and supervision/management. Please refer to Chapter 8 for details.

Refer to the replacement price calculation in Appendix 10.

6.2.4 Compensation of state-owned land

Since this project is a public welfare program, state-owned land may be transferred in an unpaid way between government agencies. However since coordination of land

users may be involved during implementation of this project, state-owned land is listed in budget according to the standard of land acquisition price of 58,903 yuan/mu.

6.2.5 Compensation policy and standards for temporarily occupied land

As for rural collective land temporarily occupied by the project, the temporary land occupancy compensation policy is as follows: The compensation will be made according to actual duration of occupancy and annual output. This project will occupy land for 2-3 months. The compensation estimate is made according to the standard of 6 months (i.e., 50% of the annual rate). The actual compensation paid will be according to actual duration of occupancy. The annual output of temporarily occupied land of this project is shown in Table 6-5. Land reclamation is in the charge of the construction contractor. The budget of land reclamation is listed as construction expense. Table 6-5 Annual Output of Temporarily Occupied Land Office (town) impacted by temporary land occupancy i ii Category Policy Unit Xiaoduchuan Street, Longfeng Wuyangba Street Town and Liujiaoting Street Compensation according to Annual output 2561 2210 actual duration Temporarily of occupancy occupied land General Time 1 1 cultivated land Vegetable plot Time 1.1 1.1

The temporarily occupied state-owned land is existing road. As for temporary occupancy of existing road, the construction contractor is responsible for recovering. The budget is listed in construction cost.

6.2.6 Compensation standards for attachments and scattered trees

Compensation standards for attachments are shown in Table 6-6, while

compensation standards for trees are shown in Table 6-7. Table 6-6 Compensation Standards for Attachments (Unit: yuan) Name Unit Standard Transformer Set 10000 Power pole pole 200 Tree tree 80 Cement floor m2 30-80 Telephone HH 220 Air conditioner HH 200 Cable TV HH 650 Broadband HH 1000 Electricity meter HH 340 Water meter HH 600

Table 6-7 Compensation Standards for Trees Name Type Standard Unit price Orchard Mature fruit yuan/tree 80 Middle-size fruit yuan/tree 50 Young fruit yuan/tree 20 Sapling yuan/tree 5

Economic forest Big yuan/tree 50 Medium yuan/Tree 20 Small yuan/Tree 2

Scattered tea tree Big yuan/Tree 20 Small yuan/Tree 10 Miscellaneous trees in the four sides (in Big yuan/Tree 30 front and at the back of houses) Medium yuan/Tree 10 Small yuan/Tree 2

Giant thorn Big yuan/cluster 50 bamboo Small yuan/cluster 30 Phyllostachys Big yuan/cluster 5

Name Type Standard Unit price pubescens Small yuan/cluster 2

Greenhouse Assessment Wet masonry Three ancillary yuan/m3 130 protective ridge facilities Aggregate protective yuan/m3 90 ridge Masonry wall yuan/m2 18 Dry masonry wall yuan/m2 13 Earth wall yuan/m2 8 Concrete drying yard yuan/m2 40 Lime drying yard yuan/m2 25 Soil drying yard yuan/m2 10 Reed spike kiln yuan/QTY 300-500 Water well yuan/set 1000-3000 Biogas digester yuan/set 1500 Grave yuan/set 1500-4000 Manure pit yuan/place 400-500 Canal yuan/m 30--150 Water plastic pipe yuan/m 2 High pressure plastic yuan/m 3 pipe Cast iron pipe yuan/m 50 Galvanized pipe yuan/m 10

6.3 Supporting measures for vulnerable groups

Vulnerable groups affected by the project not only can enjoy the land acquisition compensation policy mentioned above but also enjoy some other preferential policies: (1) Carry out occupational training for laborers in families of vulnerable groups and provide various kinds of job information and guidance to increase opportunities to get employed; (2) During project construction process, laborers from families of vulnerable groups may be recruited to engage in some nontechnical work with priority; (3) Set up a supporting fund to subsidize people included in subsistence allowances.

6.4 Supporting measures for women

Besides land acquisition compensation policy, women also enjoy the following supporting measures with priority. (1) Have priority to get a job. The project needs about 400 laborers. The daily wage of skillful worker engaged in labor is 120 yuan. (2) Have priority to obtain agricultural and non-agricultural technical training. In this project, 400 person-times of agricultural and non-agricultural technical training will be carried out. The number of female trainees shall be at least 50% of the total number of trainees. (3) Affected women may obtain relevant information during resettlement and take part in fair consulting and resettlement. (4) During implementation of resettlement, specific women’s forum will be held to introduce relevant resettlement policies so as to improve their awareness. (5) The compensation agreements (land and housing) must be signed by both husband and wife.

6.5 Pension security for land-lost farmers

According to the policies of “Measures for Minimum Standard of Living of Land-lost Farmers in Enshi” (E.S.Z.G. [2009] No. 36) and ”Implementing Measures for Minimum Standard of Living of Land-lost Farmers of Enshi” (E.S.Z.B.F. [2012] No. 31), land-lost farmers with age above 16 (the age of insured persons shall be determined with the time of release of land acquisition announcement as the boundary) and with cultivated land per capita of the family below 0.3mu (including 0.3mu) after land acquisition shall be listed as eligible for pension security for land-lost farmers and included in the system. For those who have no laboring capacity, the subsidy is 70 yuan per month per capita. For those family have illnesses, 30 yuan per month per capita. For those family short of labors, the subsidy is 15 yuan per month per capita.

6.6 Compensation fund and schedule

The land acquisition and resettlement compensation fees incurred in this project shall be paid by the project implementing organization. The cut-off date for compensation eligibility is June 30, 2014. According to the stipulations set out in Article 52 of Regulation on the Implementation of the Land Administration Law of the Peoples Republic of China, various costs of land acquisition shall be paid in full amount within 3 months after the land acquisition compensation and resettlement scheme is

approved. Meanwhile, it shall be guaranteed that the land compensation fees are paid before land acquisition. The fund management of this project shall be executed according to the agreement signed by the PMO and affected party.

7 Entitlements

7.1 Eligibility for entitlement to compensation and rehabilitation support

All affected persons will be entitled to compensation related to the assets attached on the ground of the replacement value of such assets as well as rehabilitation support for lost income and house relocation. A matrix for entitlements including eligibility for compensation and rehabilitation support is shown in Table 7-1.

7.2 Special Support measures for Vulnerable Groups

Support should be provided to vulnerable groups affected by the project. An assisting and supportive fund will be established for the purpose of subsidizing persons covered by Subsistence Allowances System.

Employability skills training are to be provided to the affected persons. The training for rice and maize planting skills will be available to increase the unit area output. Training for the operation modes of the rural home stays (inns) run by the affected persons will be provided. Training for the affected person’s operational skills for utilization of his commercial storefront (for catering, hotel or retail purpose) will be available. Training for pig raising and fish-farming will be provided. By means of procurement of the affected person’s obtaining of employability skills the purpose of recovery of his production and livelihood standards as soon as possible will be achieved through his employment.

1) Subsistence Allowances System for Enshi City’s Rural Residents  Rural families in economic difficulties registered as permanent residents of Enshi City where the per capita income of the family members living together is lower than the lowest rural standards established for the whole city are all entitled to apply for coverage by Rural Subsistence Allowances System.  Class A Applicants: any family unentitled to Five Guarantees, incapable of work and with extraordinary livelihood difficulties will be subsidized at the rate of 70 yuan per month and per capita.  Class B Applicants: any family in extraordinary livelihood difficulties featuring family member(s) falling ill, incapable of work and having children who are not of

working age will be subsidized at the rate of 30 yuan per month and per capita.  Class C Applicants: any family falling short of labor force arising from suffering disasters or illness will be subsidized at the rate of 15 yuan per month and per capita. 2) Measures for Subsistence Allowances System for land-expropriated farmers of Enshi City  Rural households with a per capita farmland of lower than 0.3 mu are eligible.  Apportionment ratio for contribution to the Subsistence Allowances Fund for land-expropriated farmers is hereby jointly determined by Enshi City Government, rural collective economic organizations and the farmers as 4:3:3. The part of contribution by individuals obliged thereto will be disbursed from the land compensation fees in relation thereto. The part of contribution by the collective organizations will be disbursed from the part of the expenses for expropriated land retained by such collective organizations. And the part financed by the government should be disbursed from the financial funds.  Any land-expropriated farmer applying for incorporation into the System will be entitled to the Allowances on a monthly basis necessarily upon his 60thor otherwise her 55th. Standards for subsistence allowances: allowances to whoever residing within the planned zone of the City’s urban area will be calculated and granted at the rate of 130% of the City’s Urban Subsistence Allowances; and allowances to whoever residing otherwise will be calculated and granted at the rate of 110% of the City’s Urban Subsistence Allowances. The Subsistence Allowances will be elevated in consistence with the economic development, which will be set forth on a specific basis by Enshi City Government.

7.3 Project employment provisions

The affected persons should be preferentially arranged to benefit from the opportunities of employment in this Project. Effective measures will be provided to assist the affected persons to obtain employment in Project construction and operation. Total number of laborers needed in this Project is approx. 400. Technical positions are entitled to the remuneration of 120 yuan per day.

Table 7-1 Entitlement Matrix Scope of Type of impact Right holder Resettlement policy Standards for compensation Implemented by impact 1) dual modes consisting of either property rights swap and monetary compensation to rebuild their house; 2) monetary compensation by the street governmental office in accordance with the expropriation Assessment to be conducted compensation regulations of private Relocation for determining the sum of the houses pursuant to law; of 19 rural monetary compensations. For 3) owner(s) of displaced house may HHs 19 HHs and 80 the property rights swap, House demolition either apply for constructing one Enshi City Urban covering a persons from 2 settlement should be and relocation house on their own within the Investment Co., Ltd residential villages conducted as per the cost planned concentrated villager area of price. The cost price for the relocation sites, OR otherwise 6,478 ㎡ property rights swap is 1,200 apply for purchasing for one unit yuan/㎡. apartment at the rate of the cost price of the resettlement houses; 4) monetary compensation: floorage of the house of the legitimate applicant X replacement price + assessed price for house decoration + appurtenance

Scope of Type of impact Right holder Resettlement policy Standards for compensation Implemented by impact compensation + other compensations. 5) Government will prepare housing sites including the cost of levelling and infrastructure prior to house construction. 6) Transition allowances … 7) moving allowances … 8) Reward for moving quickly … (1) No land adjustment will be conducted for affected villages. (2) Methods for distribution of the land compensation paid to the rural See Table 7-2. The amount of collective should be determined 3 times of the annual output is 688 HHs, 2788 through discussion between paid to the rural collective Expropriation of persons and representatives of villagers before economies, and the rest Enshi City Urban collectively-owned 24 villages arable lands their implementation. (resettlement subsidies of 17 Investment Co., Ltd lands amounting to (3) Compensation of the to 20 times) is to be distributed 235.6 Mu resettlement subsidies are paid directly to affected persons directly to affected HHs. based on their losses. (4) Compensations for above-ground attachments (including young crops) on the

Scope of Type of impact Right holder Resettlement policy Standards for compensation Implemented by impact collectively-owned lands are paid directly to the owners thereof.

Class A: 160 Residents with an income lower 19 HHs and 73 yuan/person-month; Class B: than 2,300 yuan/year are to be Social Security persons of 120 yuan/person-month; Class Vulnerable groups verified as persons entitled to Bureau of Enshi vulnerable C: 80 yuan/person-month; and Subsistence Allowances who are City groups Class D: 45 divided into four classes. yuan/person-month. All kinds of expenses and administrative fees referred to by the complaint by the Compensation standards, payment affected person in respect of All the of the compensations and the demolition and relocation Enshi City Urban Complaint persons measures for demolition and should be exempted Investment Co., Ltd affected relocation therefrom, and the reasonable expenses arising therefrom should be disbursed from the contingencies for the Project

Scope of Type of impact Right holder Resettlement policy Standards for compensation Implemented by impact Monetary compensation is to be Average farmland: 2,561 yuan/ Rural provided on account of the actual To be mu (2210 yuan/mu in Longfeng families period of use for Project Temporary land investigated Town), correction factor for Enshi City Urban (for construction, ranging from 6 to 12 use during forest lands is 0.7, averagely Investment Co., Ltd temporary months. Compensation to be made implementation 0.5 for unused land, and 1.1 for land use) available as per the actual period of vegetable Fields. occupancy. Villagers, villages or other Compensative funds to be paid to organizations as owners of the trees to be cut down Trees of economic value: Enshi City Urban Trees Owners verified on the or otherwise the transplantation 10-100 yuan Investment Co., Ltd basis of the fees will be granted thereto ownership thereof

Women

8 Relocation and Resettlement of Residences

8.1 Residents Resettlement plan

8.1.1 Preference for resettlement

This Project involves residences covering 16 HHs of and 64 persons from Dashaba Section of Tanjiaba Village and 3 HHs and 16 persons from Zhakou Unit of Xiaolongtan Village, covering aggregately construction areas of 6,478 ㎡ for demolition and relocation of houses. The preference of 3 HHs for resettlement is in the form of property rights swap relocation and the preference of the other 16 HHs is self-construction at a concentrated village site. Residual materials arising from the demolition of houses will be attributable to the affected person free of any charge. Dashaba WWTP is planned to be located in Dashaba Unit of Tanjiaba Village at the southern bank of Qing River, which are respectively to the south of Jinhua Paper Production, to the north of the Village Committee, to the west of Qing River and to the east of National Highway 209. Demolition and relocation of 16 houses are needed in the near future. The total housing floorage to be demolished will be approx. 5,038 m2. See Table 8-1 for details of the demolition and relocation of houses covered by the Project. Refer to appendix 11 for detailed situation of each household to be relocated. Table 8-1 Houses to be Demolished and Relocated Floorage Townshi Communi HH number Population Location for Village of house p ty resettlement HHs Persons m2 Dashab Tanjiaba Dashaba 16 64 5038 Miaowan a Xiaolongtan Hongmi Xiaolongt Zhakou 3 16 1440 Residential ao an Village Area Subtotal 19 80 6478

Zhakou Public Rental Housing Project is located at Zhakou Team, Xiaolongtan Village, Longfeng Town with a planned site area of 174.53 mu, among which 136.28 mu is within the boundary of Longfeng Town. Now, the project has gone through scientific evaluation, project proposal, and preliminary investigation of site land, geological

disaster assessment and mineral covering. Scale and purpose of site land have been approved by provincial government and received approval document (EZTP [2013] No.1102) on August 26, 2013. Now, it has come to bid invitation for geological survey. In the residential area, net land area is 74,107m2, total construction area is 272,493.97m2, where construction area above ground is 201,722.23m2 (where residence occupies 164,955.23 m2 and public service site occupies 36,767.0m2), and construction area underground is 70,671.47m2.

8.1.2 Schemes for resettlement

Dashaba WWTP is planned to be located in Dashaba Unit of Tanjiaba Village, which comprised of 110 HHs and over 400 persons, among which 40% are Tujia People. Per capita income thereof is 4,000 yuan among which agricultural income takes up 40%. By means of negotiation and verification with affected persons, and for the convenience of the farmlands of affected persons, 16 affected HHs will be resettled at the Miaowan Resettlement Location in Dashaba. The method of concentrated resettlement will be adopted. 3 HHs of Xiaolongtan Village have signed the House Demolition and Relocation Agreement on account of the village’s road construction, all of whom will be resettled at Xiaolongtan Resettlement Residential Area. See Table 8-2 for the resettlement scheme for residents. And see Table 7-4 for resettlement policies. Table 8-2 Resettlement Scheme

Relocated Property Planned self- Location for Floor area Township village HHs rights swap construction resettlement Mu Dashaba Tanjiaba 16 0 16 Miaowan 4.8 Xiaolongtan Xiaolongtan Hongmiao 3 3 Residential Village Area Subtotal 19 3 16 0 4.8

8.1.3 Analysis to replacement price

Residential HHs covering a land of 100m2 and a house floorage of 420m2 will be granted with a 60m2 storefront and 3 sets of 130m2 houses and be entitled to a house compensation equivalent to the cost price of 10m2. Affected persons are satisfied with the compensation policies as mentioned above.

8.2 Conclusions

(1) Consent for the locations of resettlement sites from affected persons has been reached. (2) Favorable policies for resettlement are acceptable to affected persons. (3) Design of the apartment unit layout is being carried out which will consider the preferences of the affected persons. (4) The scheme for allocation of housing units is yet to be drawn up, which should specifically be completed upon the commencement of construction of new houses. Sufficient consideration is to be given to the preferences of the affected persons in terms of the formulation of such scheme for distributions. (5) Consideration should be given to the characteristics and special needs of vulnerable groups when conducting the distribution of houses.

9 Income Recovery

9.1 Background of villages involving permanent land acquisition

Sanlongba Village of Longfeng Town contains a population of 6,395, a total farmland area of 3,507 mu, a per capita net income of 3,700 yuan/person, and 1,200 Tujia ethnic People, who have production and living habits similar to the Han, except that some characteristics have been retained for their culture. The whole village has 117 persons who are entitled to Subsistence Allowances, among which 13 are entitled to Class A Allowances and 104 to Class B Allowances.

Shuangyantang Village of Longfeng Town contains of a population of 3,089, a total farmland area of 2,250 mu, a per capita net income of 3,850 yuan/person, and 273 Tujia and 131 Miao ethnic People, who have living habits similar to the Han, except that part of ethnic features have been retained. The whole village has 120 persons who are entitled to Subsistence Allowances.

Longfeng Village of Longfeng Town contains of a population of 6,179, a residual farmland area of 400 mu, and a per capita net income of 4,030 yuan/person, among which 500 yuan has an agricultural origin, taking up 12.41%. Ethnic minorities take up 10% of the whole population. 500 are entitled to Subsistence Allowances, and beginning from 2007 and 2008 there have been land acquisition. So far it has a relatively large non-agricultural employment, and most of the income stems from non-agricultural industries. The Village is experienced on land acquisition.

Sanhe Village of Longfeng Town contains a population of 4,440 among whom 70 are ethnic minorities and a per capita income of 3,000 yuan, within which non-agricultural income takes up 30%, and the rest are all from part-time work. The whole village has 70 persons entitled to Subsistence Allowances, among whom 10 are entitled to Class A. There are a large number of part-time workers working out of the Village.

Xiaolongtan Village of Longfeng Town contains a population of 3,470, a farmland area of 1,650 mu, 452 ethnic minority people and a per capita income of 3,800 yuan, among which 1,000 yuan are from agricultural origins. This Village has experienced a number of land acquisition. And its farmers have been employed in non-agricultural

industries after being granted with the compensations therefor.

Dalongtan Village of Xiaoduchuan Street contains a population of 1,426, 6 units and 300 mu, wherein Tujia ethnic people take up 50% of the whole population. The per capita income there is 4,660 yuan and agricultural income takes up 20% of the total income, and the rest 80% stems from part-time workers. This Village has experienced land acquisition. The standards for land acquisition should be implemented in accordance with local regulations, or specifically 3 times of the income is attributable to the Village and the rest should be directly distributed to affected persons.

Fengxiangping Village of Wuyangba Street contains 5,794 persons, a farmland area of 450 mu, a Tujia population taking up 30% thereof, a per capita income of 4,510 yuan among which 30% stems from agriculture. Part-time working remains as the major generation of income for the whole village.

Jinziba Village of Wuyangba Street contains a population of 5,800 persons, a farmland area of 1,500 mu, a Tujia population taking up 20% thereof, a per capita income of 5,000 yuan. There are a large number of part-time workers out of the Village. Majorly food crops are planted therein.

Gengjiaping Village of Wuyangba Street contains a population of 3,901 persons, a farmland area of 1,000 mu, and a per capita income of 3,900 yuan. There are a large number of part-time workers out of the Village.

Toudaoshui Village under Liujiaoting Street Office’s jurisdiction contains a population of 6,000 persons, a farmland area of 3,800 mu, 280 persons entitled to Subsistence Allowances, a per capita income of 4,200 yuan and agricultural income taking up 20%.

9.2 Summary to resettlement measures

9.2.1 Resettlement measures

This Project is located in the suburban areas of Enshi City, wherein non-agricultural income has gradually become the main income source, and the impact on the farmers by the land acquisition is lower than 20%. The farmers are relatively less dependent on lands, because the proportions of agricultural income to the total income are

maximally 48% and minimally 5%. The degree of land acquisition impacts are lowest 0.47% and highest 18.3%, which were specified in Table 3-4. The major source of income of farmers within the scope of impact thereby is participation in all sorts of non-agricultural sectoral activities (including industry, commercial and service industry) or in seeking employment outside of villages. Labor forces under impact from such expropriation have been so far overall employed by enterprises or engaged with the third industry. Agricultural income primarily originates from plantation of rice and vegetables.

The purpose of APs resettlement measures is to ensure that the individual livelihood standards for APs following their resettlement will not be brought down, and will instead recover and exceed the current per capita net income of APs. By means of analysis to the geographical locations, possession of land resources and composition of income of local residents and on the basis of sufficient inquiry of the willingness of APs, the Project has eventually determined the final resettlement scheme depicted as “monetary compensation for expropriation and guiding villagers to be engaged in the second and third industries”, that primarily by virtue of employment to the Project and training and employment in relation to non-agricultural skills and seeking for job opportunities out of the original place and the income standards of land-expropriated farmers will be restored.

Planning for income recovery will be featuring flexibility, democracy, autonomy and diversity by taking into account of characteristics of each villager. To alleviate the impact thereon, during the whole process of APs’ livelihood recovery, this Project will have organizations and governmental departments responsible for land acquisition and demolition and relocation, taking a series of measures to provide assistance and support to APs as much as possible, which are specifically inclusive of:

(1) Payment of sufficient compensations for land acquisition to actively guide APs to reasonably take use of the compensations. Based on statistics thereof and onsite investigations and analysis, the net income for plantation farming is 741 yuan/mu. See Table 9-1.

Table 9-1 Analysis for Income of Plantation Farming Summer Autumn Category Unit Subtotal output output Input yuan/mu 650 300 950 Yield Kg/mu 555.4 246.9 802 Output Price yuan/kg 1.8 2.80 Net income yuan/mu 350 391 741

Interest income generation from depositing in bank the land compensations obtained by farmers under this Project pursuant to policies thereof is overall larger than the average annual net income of the land. According to the investigation, farmers’ willingness and relevant practice, the distribution method for the land acquisition compensation fees on the basis of consent from the collectivity of villagers is: the amount equivalent to 3 times of the land’s annual output is attributable to the village committee, and all of the rest will be granted to villagers. The risk-free income for expropriation of lands is specified in appendix 9.

In terms of the utilization of the compensative funds, all levels of governments competent to the Project and appropriate organizations will actively guide the land-expropriated villagers to take advantage of their own funds to purchase properties according to their financial capabilities, be engaged in the service industry by means of tenancy and running shops, or otherwise acquire stable revenue by operating rural home stays (inns). Enshi City Government will organize departments including Industry and Commerce, Tax and Health to proactively provide door-to-door services and conduct preferential policies and measures including reduction and exemption of relevant taxes and expenses and simplification of procedures thereof, for the purpose of helping land-expropriated farmers to solve factual difficulties and problems during their engagement in the service industry.

(2) Reinforcement in the production skill training and employment in non-agricultural sectors of APs Given the relatively low educational level of affected villagers, the Project will provide skills training to and employment of land-expropriated villagers, provide employment guidance and presentation free of charge, fulfill the labor registration management procedures on behalf thereof for free, provide labor employment skill training free of charge, and implement the transfer and training work for rural labor forces. Aiming at enhancing the employment competence of these rural labor forces and improve their

occupational skills, the organizations responsible for the Project or special financial funds will be available for providing a fund of 206 thousand yuan, and provide training to the whole families in particular the labor forces directly affected thereby in conjunction with authorities including agriculture, science and technology, Women’s Federation and Social Security to enhance their profit-generation capabilities. Skills covered majorly consist of: rice and oilseed rape plantation, stone machining, tourism, operation of retail businesses (restaurants and catering), development of rural home inns, tailoring, operation of building materials and decoration materials and driving. The training funds will be directly transferred to training institutions such as vocational-technical schools or Women’s federations.

(3) Increase opportunities of employment in non-agricultural sectors As far as the non-agricultural sector employment is concerned, primarily the employment in enterprises in Enshi Economic and Technical Development Zone in the vicinity of the Project will be assisted. Enshi Economic and Technical Development Zone is located at the intersection of National Highway 209 and National Highway 318, where it is surrounded by the Shanghai-Chengdu Express Road and Yichang-Wanzhou Railway, and the train station of it is located within the Logistic Park in the Development Zone. The total planned area of the Development Zone is 23km2. and by taking into account its regional features the industrial distribution of One-Zone-with-Five-Parks is adopted and the Tobacco Industrial Parks, Agricultural Products (Medicine) Processing Parks, Building Materials Industrial Parks, Modern Logistic Parks, Sports and Ecological Leisure Zone and Gaoqiaoba Selenium Products Industrial Park are constructed therein. The Development Zone has become the main part of Enshi City’s Middle-Percent % Urban Development Planning and will be capable of attracting employment of large amounts of land-expropriated farmers in the Development Zone. Currently the number of employees of enterprises in the Development Zone is rising stably. Enshi Economic and Technical Development Zone pays high attention to recruitment works, firmly establishes the idea of “recruitment workers is attracting businesses”, takes recruitment of workers as a key work, sets up a long-acting working mechanism, reinforces the guaranteed investment therein, proactively provides front-end service, gives full play to resources’ energy efficiency, forms the join work forces, intensifies the responsibilities-related measures, and solidly assists the enterprises in solving the difficulties existing in employment and procures employment. The Administration Committee of the Development Zone produces and broadcasts recruitment advertisements on TV for enterprises free of charge, composes and sends cellphone text messages, wall calendars and leaflets,

set up outdoors workers recruitment bulletin boards in places including urban downtown area and train station squares, establishes temporary workers recruitment booths in train stations and bus stations, and organizes enterprises to participate in all sorts of field recruitment fairs to assist in the enterprises’ recruitment and the land-expropriated farmers’ employment.

For labor forces among the land-expropriated farmers especially persons over-50-years males and over-40-years females, guidance on a step-by-step basis will be provided for their engagement in social service industries including plants preservation, road cleaning & maintenance and property management, housekeeping to procure their prompt resettlement and employment in their neighborhood. Enterprises applying for bidding for plants preservation, road cleaning & maintenance and property management within the new urban and township areas recruit over 40% of local farmers. Furthermore, appropriate organizations in such districts and towns should by all means arrange public welfare-related labor employment opportunities to open up new employment channels and preferentially make resettlement to land-expropriated farmers especially such persons over-50-years males and over-40-years females. For land-expropriated farmers engaging in self-employment small-amount guaranteed loans will be provided to assist in farmers’ conducting of production.

(4) Providing income-increase opportunities in relation to this Project During the construction period of the Project affected villagers residing in the vicinity thereof may be provided with some income increase opportunities which primarily refer to providing services for the construction of the Project. For instance, vacant rooms may be leased out as temporary offices or workers’ dormitory, and groceries may be opened to provide tobaccos, food and beverage thereto during the construction period. This may provide temporary job opportunities as well as increase of HH income. In consideration of the excellent traffic and geographical conditions of the resettlement apartments, villagers accepting the resettlement by means of apartment, under the precondition that their own settling needs are satisfied, may rent out surplus houses to obtain relatively long-term rentals.

Also, worker recruitment for the construction of this Project will preferentially take into consideration of the APs. The construction organizations for this Project will provide some job opportunities for APs including flattening lands and landscaping engineering. Although part of the engineering work is only temporary, according to survey for

income by work types of Enshi City, by virtue of these recruitment opportunities skilled construction workers will obtain approximately the income of 2,000 yuan/month, which is available for providing short-term sources of income for local APs, helps to improve the living standards of the affected persons and recover their livelihood.

(5) Taking part in the pension insurance for land-expropriated farmers Relevant policies on a detailed basis are stipulated in Chapter VIII. Measures as mentioned in Chapter 8 will, on the basis of satisfaction to the collective needs of the affected groups, be led by the Project management office, guided by the Township Governments, participated by village committees in terms of their implementation and supervised by monitoring institutions on a regular basis. This Project provides diversified resettlement measures for land-expropriated farmers, which cover a large range of affected rural HHs and are available for full coverage to recovery of livelihood of land-expropriated rural HHs.

As a summary thereto, taking income recovery measures as mentioned above may provide offset to the income lost arising from land acquisition thereby, and the affected villagers granted with land acquisition compensations and resettlement subsidies may utilize these funds to develop individual operation businesses or to be recruited by enterprises. There are a multitude of livelihood recovery measures that will help maintaining the living standards from decreasing.

9.2.2 Income recovery plans for relatively severely affected villages

Planning for income recovery of affected villages and units relatively severely affected featuring a land acquisition loss over 10%. In addition to measures hereinabove specified, in consideration of the situations of relatively severely affected villages, where villagers will proactively organized to engage in rural home stays (inns) and commercial storefront operation on a volunteer basis, and affected HHs will be organized to raise pigs to obtain corresponding income, which as herein mentioned are relatively exposed to less risks. Analysis on the input and output thereof is in Table 9-3.

Table 9-3 Analysis on Inputs and Outputs

Rural home stays/inns (commercial Pig raising storefronts)

House 2 Days of m 80 Day 227 construction raising Dinner seats Persons 50 First pig yuan 43.12 Initial input Piglet yuan 29.34 House Concentrate construction yuan 64000 yuan 112.13 d feeds expenses Decoration yuan 80000 Green feeds yuan 18.83 expenses Vet medicine Subtotal yuan 144000 yuan 1.28 fees Annual apportioned yuan 57600 Subtotal yuan 204.7 cost Attendance % 65 Weight Kg/pig 104.775 Daily yuan 1000 Net income yuan/100 kg 1500 turnover Daily break-even yuan 610 Output Pig 3 cost Daily net yuan 390 Net income yuan 4715 revenue Yearly yuan 142350 Input yuan 614 revenue Net income yuan 84750

By means of investigation towards the 13 villages/units relatively severely affected, and by taking into account of the features of industries of places where the Project is located it is observed that the agriculture majorly consists of plantation of grains and there are large amount of villagers seeking employment outside of villages. Enshi Economic and Technical Development Zone is available for attracting the employment of a large number of land-expropriated farmers. And the local demand for service industries including housekeeping is high. By measures such as guiding farmers’ employment in non-agricultural sectors and granting of sufficient land acquisition compensations, the income of APs can be increased.

By means of permission for opening up one commercial storefront, or raising 58 pigs annually, or 15 persons’ employment in enterprises, etc. their production and livelihood standards may be recovered, and can even be increased. See Table 9-4 for the low-risk resettlement scheme for key villages.

Table 9-4 Scheme for Low-risk Resettlement of Key Villages

Current situation of

Compens Livelihood rehabilitation schemes and estimated annual income affected HHs Difference

ation Revenue Planta- (income Farmland granted Rural Commer- Pigs Total Net income Interests Total Village from tion Enter- gain or Village currently in to home cial store rais- invest- from from income plantation farming prises loss) group possession farmers inns fronts ing ment plantation deposits (3) AH (1) (2)

Mu Yuan Yuan Mu Person HH HH Pig Yuan Yuan Yuan Yuan Yuan Component Chenjiaba 7 17.16 12712 138567 13.0 1 0 0 5 13350 9615 4070 27070 14358 Sanlongba village group Village Yijiaoba 6 15.97 11836 114865 12.5 1 0 0 4 12701 9268 3320 26456 14620 village group Liujiawan 3 12.21 9048 92986 9.4 1 0 0 5 9958 6969 2698 27070 18022 village group Xiaohekou 4 13.25 9819 100279 10.2 1 0 0 7 11148 7578 2897 28298 18479 Shuangyan village group tang Village Gaojianba 2 2.50 1855 23868 1.8 1 0 0 5 2718 1322 687 27070 25215 village group Yamentai 2 2.50 1855 23205 1.8 1 0 0 5 2737 1336 665 27070 25215 village group Longdong 6 10.74 7962 83207 8.2 1 0 0 5 8847 6102 2417 27070 19108 Jinziba village group Village Zhaojiaba 29 39.53 29289 304980 30.3 2 0 0 6 30038 22472 8936 51684 22395 village group Shahe village 43 57.30 42460 411060 44.9 2 0 0 5 43680 33272 11940 51070 8610 Jinziba group

cologicalRehabilitation Work Village Badouqiu 30 57.54 42635 411060 45.1 2 0 0 6 44109 33447 11926 51684 9049 E village group

Xiaolongtan Zhakou 0 17.16 12712 0 13.0 1 0 1 2 13350 9615 4070 109978 14358 Village village group Shuyuan Village group 5 10.87 8054 79888 8.5 1 0 0 3 8651 6269 2315 25842 17788 WWTP Community 8 Total 137 256.7 190238 1783964 198.7 15 0 1 58 201286 147263 55940 480362 207216

Notes: (1) assumes annual net income of 742 yuan/mu; (2) remaining farmland after land acquisition; (3) total income is the sum of ????

9.3 Skill training for affected persons

Enshi City Government will provide a fund of 206,000 yuan and provide training to the affected villagers of the 28 villages in particular the labor forces directly affected thereby in conjunction with authorities including agriculture, Social Security to enhance their profit-generation capabilities. Skills covered majorly consist of: skills for new types of plantation farming, pig-raising and fish-farming etc. The skills for commercial storefront operation and rural home stay (inns) operation will also be trained.

Purpose of training: on the basis of factual needs thereof, the differences of natural environments and to what extent they have been affected, the training will be conducted to help them recover their livelihood and improve their labor skills. This training will alleviate the impact on them by the land acquisition, and the living standards of the affected habitants will increase to some extent or at least be restored to the original status.

Objectives of training: farmers affected thereby in need of recovery to their normal lives. As much as it is possible, each of the affected families should have at least two members (one male and the other female) being arranged to take part in the training. Contents of training: training schedule is specified in Table 9-8. Table 9-8 Training Schedule for Affected Farmers Objective Budget No. Skill Person Including: Female 10000 yuan 1 Rice 80 40 1.6 2 Plantation of oilseed 80 40 1.6 rape 3 Stone machining 80 40 1.6 4 Tourism 70 30 2.4 5 Operation of small businesses such as 80 50 3 breakfast and catering 6 Development of rural 70 30 2.4 home inns 7 Tailoring 60 50 1.5 8 Operation of building 80 30 2

Objective Budget No. Skill Person Including: Female 10000 yuan materials and decoration materials 9 Driving 30 5 4.5 Subtotal 630 315 20.6

9.4 Gender issues during resettlement

Women is this area play an important role in agricultural activities and HH affairs. For the training and employment involving the APs, women are entitled equally for jobs in the engineering construction and the operation of the Project. They will be arranged in appropriate positions such as purchasing vegetables and food and other logistic work. In particular it is notable that completion of the house construction ahead of schedule or organizing the affected women to visit resettlement houses under construction, as well as informing affected women of the progress of house construction before the final completion will alleviate women’s psychologically anxious mood to relocation.

9.5 Ethnic minority

The project is located in a minority autonomous region, where Han nationality occupies 73.6% of total population, Tujia nationality occupies 23.2% and Miao Nationality occupies 3.1%. To show respect to house demolition and building convention of minorities, more information is disclosed in characters of minorities and local language. In accordance with social and economic investigation, there exists no difference in politics, economics and living conditions between minorities and Han nationality. They have same right as Han nationality. Nevertheless, minority conventions are respected during land acquisition and resettlement. In establishment of the residential community, Principals are elected in accordance with population ratio with priority given to minority people in order to fully respect their will and inclusion in decision-making.

9.6 Support to vulnerable groups

Assistance will be provided to families as vulnerable groups who will be permanently affected by the Project.

Table 9-9 Assistance to Vulnerable groups

Entitlement to Type of vulnerable Number Entitlement to compensations for land Standards for qualification compensations for house Source of funds groups of APs loss loss Compensations to be retained by the To be confirmed by collectivity economy and providing of The minimal standards Financial expenditure and Five Guarantees authorities for each village monthly subsidies and medical fees free housing will be assured possible village subsidies of charge To be disbursed from the special Families of orphans The minimal standards Obvious Training for special skills funds of the contingencies and widows housing will be assured wherever necessary Women headed HHs Taking into account of economic To be disbursed from the special Widowed, divorced and The minimal standards (with members needed development (such as providing fees for funds of the contingencies separated housing will be assured to be attended) children raising and training) wherever necessary To be disbursed from the special The minimal standards The disabled Verified by the government Special standard subsidies funds of the contingencies housing will be assured wherever necessary To be disbursed from the special Elderly people over 70 The minimal standards Elderly people Special standard subsidies funds of the contingencies years old housing will be assured wherever necessary To be verified by the To be disbursed from the special Poverty Relief Office and The minimal standards Impoverished families Special subsidies funds of the contingencies lower than 2,300 yuan per housing will be assured wherever necessary capita Families severely Any family under the 1% of the funds will be utilized as loans The minimal standards To be disbursed from the special affected to the extent assistance of the Poverty or more compensations housing will be assured funds of the contingencies

Entitlement to Type of vulnerable Number Entitlement to compensations for land Standards for qualification compensations for house Source of funds groups of APs loss loss of close to Relief Office and verified by wherever necessary impoverishment means of specific measurement and survey thereto Other families living only To be disbursed from the special Families with simple The minimal standards one simple and crude / funds of the contingencies houses housing will be assured house wherever necessary Preferential arrangement of To be disbursed from the special Families suffering Any family with a farmland opportunities for training and / funds of the contingencies severe farmland losses loss of over 50% employment such as part-time working wherever necessary out of villages or working for the Project

9.7 Employment in relation to the Project

The implementation of this Project will to some extent provide employment opportunities for local labor market. Firstly, short-term and scattered employment opportunities will be provided during the construction of the Project. Secondly, following the Project’s entering into its operation period, a number of long-term and stable employment opportunities will be made available. Some public welfare-related positions will be arranged. During the construction period of the Project, affected residents living nearby may take part in some non-skillful work in this Project to increase the income of the affected rural farmers. It is estimated that 700 job positions will be provided.

9.8 Conclusions

Through above analysis, persons affected to different extents will have opportunities to restore their income following the resettlement measures. To achieve such purpose, land compensation will be promptly paid, training to affected persons (including improving the output of unit lands, pig raising and fish farming skills and skills such as operating commercial storefronts and rural home inns) will be provided. Employment guidance will be provided to affected persons to assure the implementation of employment measures and restore the affected persons’ income.

10 Resettlement Budget and Financial Plan

10.1 Resettlement Costs

The resettlement costs for this project mainly includes six parts, namely 1) land compensation fees including resettlement subsidies, 2) compensation for young crops and temporary land use, 3) compensation fees for house demolition and relocation costs, 4) compensation fees for restoration and reconstruction of special facilities, 5) administration fees, 6) other related fees including training for APs and special fund for vulnerable APs, and 7) contingency fees.

10.1.1 Land Compensation Fees

To be calculated according to the land compensation standard of Enshi City.

10.1.2 Compensation Fees for Demolition and Relocation

Compensation fees for demolition and relocation cover: (1) Demolition and relocation compensation fees for residents with requisitioned land Calculated according to the area of requisitioned land and compensation standard; house price is estimated at the reset price. (2) Incentive fees (3) Fees for relocation and transition (4) Cost for preparing resettlement sites.

10.1.3 Compensation Fees for Restoration and Reconstruction for Special Facilities

Compensation fees for the above-ground attachments and public facilities are calculated according to the actual quantity of such attachments and public facilities and to the compensation standard.

10.1.4 Administration Fees

The administration fees refer to 2% of compensation fees for demolition and relocation and compensation fees for special restoration and reconstruction, and are mainly used for house demolition work-related institution strengthening, organizations

coordination, internal monitoring, handling of public affairs and foreign affairs, job training, reward for land acquisition and relocation by project implementing agency, information collection and disclosure, early-stage preparation, office purchase, temporary office renting, workers salary and welfare, car purchase and use, car maintenance and repair, office, communication and daily management.

10.1.5 Other resettlement-related fees

This portion of fees are incurred in the resettlement preparation and implementation, including fees for investigation, design and scientific research, fees for monitoring and evaluation, technical training fees, costs of land cultivation, fees for use of newly built construction land, new vegetable land development fund, cultivated land occupation taxes, land acquisition management fees.

10.1.6 Contingency fees

Contingency fees include basic (physical) contingency fee (5%) and fees for price increase (10%).

10.2 Resettlement Budget

10.2.1 Budget

Resettlement costs of this project total 68,875,367 yuan according to the compensation standard and statistical quantity of project affected lands, housing and facilities. The resettlement budget is shown in Table 10-1. It’s estimated that the whole project will be completed in five years. Refer to Table 10-2 for annual investment plan (subject to the construction schedule). See Table 10-3 for percentage of fees of each category.

Table 100-1: Resettlement Budget Estimate (Unit: yuan)

Enshi city components

Sewage Urban Sewage Ecological Category Unit Standard Ancillary Intercepting Pipeline Rehabilitation WWTP Subtotal Service Pipeline Network Work I Land compensation fees Cultivated land mu 58903 0 0 11013094 1808322 1054947 13876363

Vegetable field mu 64793.3 0 0 1920055 223124 1049705 3192884

Woodland mu 41232.1 0 0 1719791 309540 1113335 3142666 Collectively-owned Unused land mu 29451.5 0 0 4756712 567278 486071 5810061

Construction land mu 35341.8 0 0 858099 488070 109560 1455729

Subtotal 0.00 0.00 20267751 3396335 3813617 27477702

State-owned mu 58903 0 0 0 259173 5142232 5401405

Young Crops Young Crops mu 2561 0 0 478830 78623 45867 603320 Collective-owned mu 2561 460980 0 201679 0 0 662659 Land for temporary use State-owned mu 0 0 0 0 0 0 0 Subtotal 460980 0.00 201678.75 0.00 0.00 662659

Total 460980 0 20948260 3734131 9001716 34145086

II House compensation fees

Frame m2 1200 0 0 0 0 0 0 Brick-concrete 1 m2 600 0 0 0 0 3886800 3886800 Resident housing Brick-concrete 2 m2 525 0 0 0 0 0 0 Brick-concrete 3 m2 492 0 0 0 0 0 0 Brick-wood m2 510 0 0 0 0 0 0

100

Enshi city components

Sewage Urban Sewage Ecological Category Unit Standard Ancillary Intercepting Pipeline Rehabilitation WWTP Subtotal Service Pipeline Network Work

Civil structure m2 420 0 0 0 0 0 0 Simple shed m2 225 0 0 0 0 0 0 Infrastructure HH 10000 0 0 0 0 190000 190000 Incentive fees m2 400 0 0 0 0 2591200 2591200 House footings m2 90 0 0 0 0 0 0

Temporary 2 m 300 0 0 0 0 0 0 buildings

Transition fees HH 4800 0 0 0 0 91200 91200

Relocation fees HH 2000 0 0 0 0 38000 38000

Machinery HH 2000 0 0 0 0 38000 38000 demolition fees

Subtotal 0 0 0 0 6835200 6835200

transformer QTY 10000 0 0 10000 20000 0 30000

Power pole QTY 200 0 0 6000 0 3200 9200 III Compensation fees for special facilities' Trees QTY 80 0 0 8000 0 2400 10400 restoration and reconstruction Cement floor m2 40 0 0 0 0 9600 9600

Telephone HH 220 0 0 0 0 4180 4180

101

Enshi city components

Sewage Urban Sewage Ecological Category Unit Standard Ancillary Intercepting Pipeline Rehabilitation WWTP Subtotal Service Pipeline Network Work

Air-conditioner HH 200 0 0 0 0 3800 3800

Cable TV HH 650 0 0 0 0 12350 12350

Broadband HH 1000 0 0 0 0 19000 19000

Ammeter HH 340 0 0 0 0 6460 6460

Water meter HH 600 0 0 0 0 11400 11400

Subtotal 0 0 24000 20000 72390 116390

Total (1-3) 460980 0 20972260 3754131 15909306 41096676

IV Administration fee Yuan 2% 9220 0 419445 75083 318186 821934

V Other fees 0 0 0 0 0

Fees for new construction 2 m 20 0 0 2889491 455476 455037 3800004 land Farmland reclamation fees mu 25610 0 0 5547217 874418 873576 7295211

Farmland occupation tax m2 20 0 0 2889491 455476 455037 3800004

Real Estate Evaluation 2 m 0.8 0 0 115580 18219 18201 152000 fees Land acquisition and Yuan 3% 0 0 608033 101890 114409 824331 management fees Monitoring (IM and EM) Yuan 2.00% 9219 0 419445 75083 318186 821933 fees

Training/capacity building Yuan 1.00% 4610 0 209723 37541 159093 410967

Subtotal 13829 0 12678979 2018103 2393539 17104451

Total (1-5) 484029 0 34070684 5847316 18621031 59023060

102

Enshi city components

Sewage Urban Sewage Ecological Category Unit Standard Ancillary Intercepting Pipeline Rehabilitation WWTP Subtotal Service Pipeline Network Work VI Contingency 0 0 0 0 0 0

1. Basic Contingency 5% 24201 0 1703534 292366 931052 2951153 Reserve 2. Price Contingency 10% 48403 0 3407068 584732 1862103 5902306 Reserve Subtotal 72604 0 5110603 877097 2793155 8853459

VII Total 556633 0 39181287 6724414 21414185 67876519

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Table 10-2: Annual Investment Plan

Year Year of 2014 Year of 2015 Year of 2016 Year of 2017 Year of 2018 Subtotal Percentage 0.1 0.15 0.65 0.05 0.05 1 Sewage intercepting pipeline 55663 83495 361812 27832 27832 556633 Urban sewage pipeline network 0 0 0 0 0 0 Ecological rehabilitation work 3918129 5877193 25467836 1959064 1959064 39181287 Ancillary service 672441 1008662 4370869 336221 336221 6724414 WWTP 2141419 3212128 13919221 1070709 1070709 21414185 Subtotal 6787652 10181478 44119738 3393826 3393826 67876519

Table 10-3: Summary of Resettlement Costs

Urban Sewage Ecological sewage Ancillary Cost categories interceptin rehabilitation WWTP Total % pipeline service g pipeline work network Land compensation 460980 0 20948260 3734131 9001716 34145086 fees 50.30% House compensation 0 0 0 0 6835200 6835200 fees 10.07% Special fees 0 0 24000 20000 72390 116390 0.17% Administration 9220 0 419445 75083 318186 821934 fees 1.21% Other fees 13829 0 12678979 2018103 2393539 17104451 25.20% Reserves 72604 0 5110603 877097 2793155 8853459 13.04% Total 556633 0 39181287 6724414 21414185 67876519 100.00%

10.2.2 Resettlement Fund Receivers and Fund Flow

1) Receivers of Resettlement Fund The resettlement fund of this project will be distributed to different persons according to the targets being affected. Details are shown in Table 10-4. To truly ensure full and timely distribution of compensation fund to each and every affected persons, it’s required that on one hand to fully exert the functions of external monitoring agency, internal monitoring agency and national auditing institute, and on the other hand, try to reduce redundant procedures as much as possible, so as to make distribution to related individuals and units in a simplified and easy manner.

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Table 10-4: Receivers of Resettlement Fund Receivers Category of Fees Village Compensation fees for collective facilities and land compensation fees in collectives land section price (three times of annual output value) Land compensation fees/resettlement subsidies, compensation fees for above-ground attachments, compensation fees for house demolition and Family HH relocation, compensation fees for seedlings (applicable to families with (number) seedlings requisitioned), relocation fees, and transition fees. Compensation for temporary land use. Other Taxes and expenses for land acquisition, cost for compensation or relocation departments of special facilities and cost for resettlement site preparation.

2) Source and Flow of Resettlement Fund The resettlement fund of this project shall be under custody of Enshi City Government, and all the related functions shall do their parts in coordination of relocation-related matters. Compensations for land acquisition and house demolition shall be subject to related regulations of the State, province and municipality, and shall be provided by the construction units. If such compensations are not sufficient, Enshi City Government shall cover such funds are provided in a timely manner.

10.3 Appropriation, Management and Monitoring of Resettlement Fund

10.3.1 Appropriation of Resettlement Fund

For this project, resettlement fund shall be transferred based on the following principles: All fees in relation to land requisition and house demolition shall be recorded into project budget estimate and shall be allocated by Enshi City Urban Construction and Investment Company according to the compensation standards. Compensation fees shall be directly paid, through special bank account, by Enshi City Urban Construction and Investment Company to related functions of government within its jurisdiction Various compensation fees payable to private families shall be paid from special bank account into the personal joint accounts of affected persons (husband and wife). Land compensation fees must be paid before land acquisition starts.

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10.3.2 Management and Monitoring of Resettlement Fund

The expenditure of resettlement fund must be in accordance with relevant laws and regulations of the State on land acquisition and house demolition and policies stated in the RP, and shall not be lower than the compensation standard and scope determined by the RP.

The resettlement implementation office shall, on a monthly basis, report monthly construction schedule to Enshi City Urban Construction and Investment Company, and verify the payment statement and have its principal set hand thereon and thereafter submit to Enshi City Urban Construction and Investment Company for fund allocation.

Land compensation fees, house compensation fees, compensation fees for attached facilities, and compensation fees for relocation, including fees for moving indoor facilities, for relocation, for transition, for awarding early relocation, shall be subject to the approval of resettlement implementation office.

Enshi City Urban Construction and Investment Company shall employ a professional agency to internally supervise, on a regular basis, the utilization of resettlement fund by the afore-said resettlement office.

The City financial department and auditing department are entitled to monitor and audit the utilization of special fund.

During the external monitoring, the external resettlement supervision agency shall monitor and verify the distribution of compensation fees to families, enterprises and public institutions which are affected by land acquisition.

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11 Organizational Arrangement

11.1 Organizational arrangement

To better implement the RP for the Project, governments at all levels in Enshi need to make preparations for the project and resettlement of the APs including establishment of organizations and offices and strengthening of capabilities. Since March, 2013, relevant organizations and project resettlement offices have been established in succession for resettlement of the APs for the Project and the responsibilities of these organizations have been clearly defined. The main organizations for the project and resettlement include: (1) Enshi City ADB Loan Project Leading Group (2) Enshi City ADB Loan Project Leading Group Office (3) Enshi Urban Construction and Investment Company Resettlement Office (4) Enshi Land and Resources Bureau (5) Enshi Water Resources Bureau (6) Enshi Bureau of Construction and Housing (7) Government township office (8) Village (neighborhood) committee (9) External monitoring agency for resettlement The organizational framework for resettlement is shown in Figure 11-1.

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Figure 111-11-1 Organization Chart

11.2 Responsibilities of organizations

11.2.1 Enshi City ADB Loan Project Leading Group

Direct the decisions in the project and construction of the project.

11.2.2 Enshi ADB Loan Leading Group Office (Enshi Urban Construction and Investment Company)

(1) Contact with Enshi City ADB Loan Project Leading Group, ADB and relevant functional departments in Hubei Province; (2) Make plans and submit applications for the project and resettlement to get permission and approval from relevant departments from the nation, Hubei Province and Enshi; (3) Check and direct the project implementing agencies; (4) Authorize the resettlement consultation agency to make preliminary preparations for resettlement of the APs; (5) Coordinate with the consultation company and other organizations during preparations; (6) Coordinate in the progress of project construction and resettlement schedule; (7) Report the fund plan for resettlement to fiscal department of Enshi and urge funds

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to pay; (8) Coordinate with relevant organizations for resettlement; (9) Raise fund for resettlement of the project; (10) Disburse resettlement fund as required; (11) Oversee resettlement implementation; (12) Follow up and urge the resettlement to be fully funded in the project; (13) Deal with complaint and appeal from APs during resettlement; (14) Cooperate with external monitoring agency for resettlement; (15) Collect and sort out all documents for internal monitoring report of the project; (16) Be responsible for the management for resettlement archives of the project; (17) Provide training for leaders in charge of resettlement in all sub-projects; (18) Submit application for planning permit for land use and construction permit for land use to relevant departments.

11.2.3 Enshi Land and Resources Bureau

(1) Coordinate with relevant departments to develop all policies on the RP for APs; (2) Take full responsibility for land acquisition (including social insurance for farmers who lose their lands).

11.2.4 Implementing agencies for project resettlement

(1) Make preliminary preparations for resettlement of the APs with the resettlement consultation agency; (2) Develop detailed policies on the resettlement for APs; (3) Report the actual progress of resettlement to Enshi City ADB Loan Project Leading Group Office; (4) Report the communication and coordination with other departments during resettlement to Enshi City ADB Loan Project Leading Group Office; (5) Report the fund plan for resettlement to Enshi City ADB Loan Project Leading Group Office and urge payment; (6) Control documentation for resettlement; (7) Execute internal monitoring for resettlement; (8) Assume hospitality for resettlement experts from ADB during preparations and implementation; (9) Deal with complaint and appeal from APs during resettlement; (10) Communicate with external monitoring agency during resettlement; (11) Construct resettlement points for APs;

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(12) Take employment measures for affected residents.

11.2.5 Government (township) office

(1) Participate in the investigation of physical measurement surveys; (2) Participate in the compensation calculation for affected HHs; (3) Provide compensation for affected residents; (4) Design and construction the resettlement houses; (5) Formulate allocation methods for resettlement houses; (6) Deal with complaint and appeal from APs during resettlement; (7) Allocate resettlement houses; (8) Provide training on employment skills for affected residents; (9) Take employment measures for affected residents

11.2.6 Village (neighborhood) committee

(1) Participate in the investigation of physical measurement surveys (2) Participate in the compensation calculation for affected HHs (3) Provide compensation for affected residents (4) Supervise the design and construction of the resettlement houses (5) Formulate allocation methods for resettlement houses (6) Deal with complaint and appeal from APs during resettlement (7) Allocate resettlement houses (8) Arrange training on employment skills for affected residents

11.2.7 External monitoring agency

Provide external monitoring for resettlement during planning and implementation of resettlement for APs, provide monitoring and evaluation report for resettlement to the project resettlement office and ADB. The responsibilities of the agency will be described in details in Chapter 13.

11.2.8 Contacts of relevant agencies

Table 11-1 Contacts of Relevant Agencies Contact Agency Address Telephone person Enshi ADB Loan No.27 Shifu Road, Project Management Cui Yingfei 07188212370 Enshi City Office

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Wuyangba street Zhu Wuyangba street 07188221309 office Rongzhang office, Enshi City Demolition Office, Liujiao office Yao Min Liujiaoting Street 07188259905 Office, Enshi City Demolition Office, Xiaoduchuan office Li Xiaoyan Xiaoduchuan Street 07188245202 Office, Enshi City Demolition Office, Lai Longfeng Town Longfeng Town 07188312418 Fengchao Longfeng Town, Enshi City Enshi Land and Tan Bixin 07188416408 Resources Bureau Enshi ADB Loan House acquisition Project Management Jiang Yang 07188285818 office of Enshi Office Land Acquisition Li Xuemei 07188209528 Affairs, Enshi

11.3 Organizational personnel and equipment for resettlement at all levels

There are 5 officials in the project resettlement office and all of them have good organization and coordination capacity, experience on resettlement for APs and computer skills. All organizations for sub-project resettlement also consist of competent and experienced personnel who are capable of resettlement for APs, the Register Roll is shown in Table 11-1. The personnel and equipment for resettlement organizations at all levels are included in Table 11-2 and 11-3. Table 11-2 List of Members in Resettlement Offices at All Levels Responsible Resettlement Office No. of Staff (capita) Person Enshi ADB Loan Project Management 1 6 Office Wuyangba street office 1 4 Liujiao office 1 4 Xiaoduchuan office 1 4 Longfeng Town 1 2

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Responsible Resettlement Office No. of Staff (capita) Person Village (neighborhood committee) 39 5

Table 11-3 Personnel Arrangement in Resettlement Offices at All Levels Staff & Resettlement Office Total Time of Work and Operation Qualification Enshi ADB Loan Project March, 2013 till resettlement 2 Public servant Management Office complete March, 2013 till resettlement Wuyangba street office 2 Public servant complete March, 2013 till evaluation complete Liujiao office 4 Public servant after resettlement March, 2013 till evaluation complete Xiaoduchuan office 4 Public servant after resettlement March, 2013 till resettlement Longfeng Town 4 Public servant complete

Table 11-4 Configuration of Equipment in Resettlement Offices at All Levels Computer Camera Vehicle Office Resettlement Office (set) (set) (set) (m2) Enshi ADB Loan Project 1 1 1 100 Management Office Wuyangba street office 5 1 1 100 Liujiao office 3 1 1 120 Xiaoduchuan office 3 1 1 70 Longfeng Town 6 6 6 350

11.4 Measures for strengthening institutional capabilities

To implement the RP, guarantee benefit for all affected residents in the project and meet the work progress in resettlement planning, implementation and supervision, Enshi City ADB Loan Project Leading Group Office will take the following measures to strengthen the capabilities of the organization and improve efficiency. 1) Leadership responsibility system: a powerful group of leaders from relevant department of the government will be constructed. 2) Competent personnel: working staff in resettlement agencies at all levels have better understanding of overall concept, policies, professional skills, especially

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experience on mass work. 3) Clear responsibilities: the responsibilities are defined for resettlement offices at all levels according to the requirements of ADB and relevant national laws and regulations. 4) Training for resettlement personnel: training on policies, information management, etc. are regularly provided for resettlement personnel as required. 5) Supervision by the public and opinions: all information about resettlement is available to the public for supervision by the public and opinions at any time. 6) Resettlement briefing is held in an irregular basis and the brief report is issued to relevant organizations. 7) The Project management office provides necessary vehicles and office facilities for resettlement agencies at all levels to meet work demands. The strengthening and training schedule for resettlement staff are included in Table 11-5. Table 11-5 Business Training Schedule of Resettlement Staff Scheduled Responsible Training Training Training Contents Training No. Agency Participants Time A B C D Study and investigate Enshi City ADB Loan experience on Resettlement 1 Project Leading resettlement of ADB staff in 2013 - 2015 Group Office Project from other sub-project provinces Resettlement External monitoring ADB's resettlement 2 staff in Feb., 2014 agency policies for APs sub-project Latest change in national Resettlement External monitoring 3 policies on land acquisition staff in Feb., 2014 agency and house demolition sub-project Enshi City ADB Loan Experience and lessons Resettlement 4 Project Leading on resettlement from other staff in Oct., 2014 Group Office places sub-project Enshi City ADB Loan Resettlement Computer operation and Nov. - Dec., 5 Project Leading staff in data processing 2014 Group Office sub-project Enshi Urban Procedure and policies on Resettlement 6 Dec., 2014 Investment resettlement for ADB loan office in street

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Scheduled Responsible Training Training Training Contents Training No. Agency Participants Time A B C D Company, Enshi project (town), Water Resources resettlement Bureau, Enshi group in village Bureau of Environmental Protection Enshi Urban Investment Resettlement Company, Enshi office in street Water Resources Resettlement policies and 7 (town), Dec., 2014 Bureau, Enshi practices for APs resettlement Bureau of group in village Environmental Protection Resettlement Enshi City ADB Loan Study international staff for foreign 8 Project Leading experience on 2014 - 2017 affairs in Group Office resettlement sub-project

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12 Project Schedule

The civil works of the project plans to commence in December, 2015, therefore, the land acquisition and resettlement shall be completed before the civil works to make sure that the affected persons and organizations are properly resettled. The schedule of all resettlement activities is in Table 12-1. Table 12 1 Schedule for Resettlement Activities Responsible No. Resettlement Task Object Time Status Organization 1 Information publication

Enshi Urban 1.1 Information book 24 villages Construction and 2014-12-31

Investment Company Implementing agency, Publicize RP on ADB's 1.2 project management 20141230 website office and ADB 2 RP and budget

Approval of RP and budget Enshi Urban 68,875,367 2.1 (incl. compensation Construction and 2014-10-31 Done? yuan standards) Investment Company 2.2 Village-level restoration plan 24 villages Village committee 2014-10-31 “ Implementing agency Updated RP according to 2.3 / and project management 2015-06-30 detailed design office Detailed measurement and 3 investigation Implementing agency of 3.1 Sub-projects 2015-04-30 sub-projects 4 Compensation agreement

Village-level land 2015-05 to 4.1 24 villages Land bureau compensation agreement 2018-05-30 621 Land compensation Village committee 2015-05 to 4.2 affected agreement for HH (neighborhood) 2018-05-31 HHs Relocation agreement for 19 affected Enshi bureau of 4.3 2015-07-30 house HHs construction and housing 5 Reconstruction of house

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Responsible No. Resettlement Task Object Time Status Organization Town and village Selection and approval of 19 affected 5.1 committee and affected 2015-05-30 house site HHs HH 5.2 Infrastructure for house site Township gov’t 2015-06-01

Demolition and relocation of 5.3 19 HHs Contractor/affected HH 2015-06-31 house Village collectives or 5.4 Construction of new house 19 HHs 2015-05-30 affected HH 5.5 Moving into new house 19 HHs Affected HH 2015-12-31

Implementation of 6 livelihood restoration

measures Compensate land for affected Village and village 2015-04 to 6.1 15 villages HH collectives 2018-04-30 Implement village-level 2015-04 to 6.2 15 villages Village collectives restoration plan 2018-04-30 621 Suggestions on income Town, village collectives, 2015-04 to 6.3 affected recovery, business and jobs labor bureau 2018-04-30 HHs 621 Implement livelihood training 6.4 affected Labor bureau 2017-04-30 plan HHs Bureau of civil affairs, Identify the vulnerable and 6.5 19 HHs project management 2015-04-30 take support measures office 500 Project management Employ affected persons 2015-04 to 6.6 affected office, labor bureau and during project construction 2018-04-30 persons contractor Capability building for 7 implementing agencies Provide training for relevant 7.1 10 people ADB 2015-03-31 personnel Provide training for relevant Project management 7.2 personnel in county, town, 200 people 2015-03-31 office and land bureau village

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Responsible No. Resettlement Task Object Time Status Organization 8 Monitoring and evaluation

External monitoring 8.1 Baseline study RP 2015-06-31 agency Project management Establish internal monitoring 8.2 As per RP office and implementing 2015-01-31 mechanism agency 1 Engage external monitoring Project management 8.3 organizatio 2014-12-31 agency office n Project management Quarterly 8.4 Internal monitoring report office and Implementing 2015-06-31 report agency 1st 2015-04-30 report Semi-annu External monitoring 2nd 8.5 External monitoring report 2015-08-31 al report agency report 3rd 2016-03-31 report 1st 2017-03-31 Annual External monitoring report 8.6 External evaluation report report agency 2nd 2018-03-31 report Implementing agency Resettlement completion 8.7 1 report and project management 2018-03-31 report office 2015-01 to 9 Participation record Implementing agency 2017-12-31 2015-01 to 10 Complaint record Implementing agency 2017-12-31 Land compensation and 11 resettlement funding

procedure Initial Availab 11.1 - Implementing agency funded 2014-06-30 capital le? 11.2 - Payments to Villages Most of Implementing agency 2015-07-31

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Responsible No. Resettlement Task Object Time Status Organization capital Most of Implementing agency 11.3 - Payments to HH 2015-07-31 capital and village committee 12 Start civil works

Enshi Urban 12.1 Project Construction and 2015-09-30

Investment Company

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13 Monitoring and Evaluation

13.1 Internal monitoring and supervision

13.1.1 Objectives and purposes

The internal monitoring is a method used by the project management office and resettlement implementing agency to continuously monitor the RP in a top-down manner. It is used to grasp the progress of APs in a complete, timely and accurate manner, discover and solve problems and provide decision basis during detailed implementation for APs.

The objectives of internal monitoring and supervision are to regulate and guide the project management office and resettlement implementing agency of ADB Loan Project to conduct internal monitoring among APs, make sure that the land acquisition and resettlement are executed strictly according to the RP, ensure that the resettlement monitoring and evaluation are taken in an orderly, regulatory and efficient way, all parties involved have a better understanding about the implementation situations and any problem during resettlement can be discovered and corrected.

The principles of internal monitoring and supervision include: update the RP in a dynamic way, establish and update resettlement database, guarantee accuracy of monitoring results; evaluate the implementation situations of RP in a scientific, objective and fair manner; report to the project management office and ADB to always keep them informed about the progress for scientific decision making.

Function of internal monitoring: the internal monitoring and supervision is an important part of internal management of the project, its objective is to grasp the situations of resettlement activities by means of establishing and using resettlement information management system, collect, analyzing and sharing all data and information about the progress, funds and quality of activities, discovering any existing or potential problem, analyzing cause and proposing measures and suggestions to solve problem.

The internal monitoring and supervision of resettlement activities is implemented by the project management office and resettlement implementing agency of the project,

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while the project management office is required to regularly submit the internal monitoring report to the ADB.

13.1.2 Procedure of internal monitoring and supervision

The internal monitoring and supervision can be divided into 2 stages, including preparation stage and implementation stage. The preparation stage starts from the project verification in ADB loan project cycle, includes project preparation, project pre-evaluation, project evaluation and completion of project approval. The implementation stage starts from the start of resettlement activities until the resettlement objectives are achieved.

1) Preparation stage of internal monitoring The project management office and local government will establish a resettlement business organization during preparation stage. The project management office will establish a department in charge of resettlement business in such organization, assign capable full-time personnel for resettlement, ensure that complete and objective information and documents are provided and other business organizations can easily participate in such process. The internal monitoring and evaluation is also arranged during preparation stage of the project. The preparations by project management office include: -- Organize training on ADB's resettlement policy and experience, national resettlement policy, development of RP, execution of resettlement, monitoring and evaluation for resettlement, etc. for the project management office and staff in resettlement implementing agency; -- Authorize professional organization and professional personnel to assist in development of RP; organize social and economic survey; develop the RP with assistance of the professional organization and professional personnel; -- Establish the resettlement management information system with the help of professional organization and professional personnel; The preparations of the resettlement implementing agency shall include: -- Establish or improve resettlement implementing agencies at all levels and assign necessary staff; -- Organize training for staff in resettlement implementing agencies at all levels; organize social and economic survey, develop the RP with the project management office and its professional organization; -- Establish the resettlement management information system.

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2) Implementation stage of internal monitoring The resettlement office in sub-projects will provide the information about the sample HHs and sample organizations surveyed by the monitoring organization and the records of activities for the resettlement department to ensure that all these resettlement activities are followed up and monitored. The resettlement department regularly checks town (street) and village (community) about the progress on reported documents. During implementation stage of internal monitoring, the project management office will: -- Provide internal monitoring for resettlement activities according to the RP; -- Submit a detailed internal monitoring report to ADB semi-annually during the implementation of the resettlement; -- Update the statistical data for resettlement; improve the resettlement management information system. -- Regular visits to monitor and supervise resettlement activities.

13.1.3 Contents of internal monitoring reports

The internal monitoring will cover the following: (1) Organizations: arrangement and job division of resettlement implementing agencies and relevant organizations, personnel allocation in resettlement organizations, capability building in resettlement organizations; (2) Resettlement policy and compensation standards: development and implementation of resettlement policy; actual implementation of compensation standards on different impacts and losses (permanent land acquisition, temporary land occupation, demolition and relocation of house, relocation of corporate, demolition and relocation of specific facilities, etc.). It is required to describe whether the standards in the RP are executed and provides reasons if there is a change; (3) Implementation progress of land acquisition and house demolition, resettlement: general schedule and annual schedule, progress of resettlement organization and personnel allocation, implementation progress of land acquisition of the project, demolition and relocation progress of houses, reconstruction progress of resettlement houses, resettlement and relocation progress, construction progress of public facilities, reconstruction, relocation and modification progress of specific facilities, progress of other resettlement activities. The format of internal monitoring progress report for land acquisition and relocation, resettlement is shown in Table 14 1; (4) Resettlement budget and its implementation situation: amount of resettlement

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funds and time at all levels, usage and management of resettlement funds in resettlement implementing agencies at all levels, amount and time when the compensation is paid to the APs and user of affected property (house, etc.) and land, usage and management of compensation fund for village collective land, supervision and audit for funds. The internal monitoring report for usage of funds is shown in Table 14 2; (5) Job arrangements for APs, job types, number of resettled APs, job arrangements for relocated company, arrangements of vulnerable groups (woman family, old family, the disabled, etc.), result of arrangement; (6) Reconstruction of APs' house and reconstruction types for resettlement houses, 3 supplies and site leveling for house sites, payment of compensation, construction and relocation of public facilities (water, power, roads, business network, etc.); (7) Restoration and reconstruction of corporate facilities and other specific facilities (power, water supply, communication, traffic, pipeline, etc.); (8) Complaint, appeal, public participation, negotiation, information publication and external monitoring, channels, procedures and responsible organizations for complaint and appeal, main items and handling of complaint and appeal, main activities, contents and form of public participation and negotiation, Resettlement Information Booklet and information publication, external monitoring agency, activities and results; (9) Handling of relevant problems in ADB check team's memorandum; (10) Existing problems and their countermeasures. Table 14 1 Progress Format of Land Acquisition and Relocation Unit: ______Reporting Date:_____/____/______(YY/MM/DD)

Accumulative Ratio in Total Resettlement Activity Unit Planned Completed Completed (%) Permanent land acquisition mu Temporary land occupation mu Demolition and relocation of m2 houses

10,000 Land compensation yuan 10,000 Relocation payment for houses yuan Reconstruction of houses m2 m2

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Accumulative Ratio in Total Resettlement Activity Unit Planned Completed Completed (%) m2 Written by: Signature of person-in-charge: Seal:

Table 13-2 Progress Format of Fund Use ____District___Town (street)_ _Village (Community) Date _/__/__ (YY/MM/DD)

Compensation Required Accumulative Compensation Brief Quantity during Affected Unit Fund Compensation Ratio in Total Description (unit) Reporting (RMB) (RMB) (%) Period (RMB) Village Village

(community) collective 1 HHs Village Village

(community) collective 2 HHs

Public facility Total Written by: Signature of person-in-charge: Seal:

13.1.4 Internal monitoring methods

The internal monitoring is used to monitor all activities in the resettlement system in a top-down manner during implementation, a top-down processing information management system is required to be established among the project manager and resettlement organizations at all levels to follow up the work progress of resettlement in each area. Such information management system can be used by land acquisition and house demolition agencies at all levels to report their progress, funding, results, etc., as well as processing and analysis. The following methods are to be used for internal monitoring in the project depending on actual conditions:

(1) Regular statistical reporting system The project management office shall make uniform statement based on resettlement demands. The statement will reflect the progress of transferred resettlement funds and completion of relocation. The statement is to be submitted every month, usually at end of month after appropriation and submitted from bottom to top to control the work progress of appropriation.

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Table 13-3 Monitoring Statement

Updated Completion in Total Accumulated RP Actual No. Category RP current period completion completion

# # # # # % Area (mu) Acquisition Affected HHs 1 of collective Affected land persons Area (mu) Temporary Affected HHs 2 land Affected occupation persons Demolition Area (mu) and Affected HHs 3 relocation of Affected

house persons Resettlement 4 Fund (RMB)

(2) Regular or irregular reporting Between resettlement organizations at all levels and external monitoring agency, a variety of means are used to exchange any problem and relevant information during resettlement and propose handling suggestions.

(3) Regular communication meeting At the beginning of each month, ADB Loan Project Leading Group Office holds a resettlement coordination meeting, the personnel in the resettlement offices in sub-projects attend such meeting to brief, reflect actual progress and existing problems or communicate experience and find out measures against problem.

(4) Check At the beginning of each month, ADB Loan Project Leading Group Office takes regular and irregular check for subordinate resettlement organization, visits the site for survey, deals with problems during land acquisition and relocation and double check the progress and execution situations of resettlement policies.

(5) Information exchange with external monitoring agency The project management office, local implementing agency and external monitoring agency maintain regular contact and information communication, the discoveries and evaluation comments of the external monitoring agency are used as the reference for

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internal monitoring. (6) Survey on resettlement information management system ADB Loan Project Leading Group Office will establish the resettlement information system based on the information of land acquisition and relocation, continuously update and improve the system during implementation, and guarantee dynamic supervision over resettlement. The questionnaire and household interview are combined by the project management office to check the implementation situations of resettlement. The sampling survey is used for HHs to reflect the implementation of their compensation, relocation expense, etc, to check whether the RP is strictly enforced. In addition, all companies and organizations are surveyed.

ADB Loan Project Leading Group Office will take the first survey after the first compensation is funded, then ADB Loan Project Leading Group Office will take corrective measures based on the survey results and problems, continuous to follow up and investigate the implementation of these corrective measures. Irregular questionnaires are used for follow-up on labor resettlement, land adjustment of affected labor, as well as the correction result of complaint problems, moreover, the suggestions and comments on public complaint, selection of houses and others are also collected.

13.1.5 Organization and personnel allocation of internal monitoring and supervision

The personnel in implementing agencies for monitoring are included in Table 13-4. Table 13-4 Personnel in Implementing agencies for Internal Monitoring

Resettlement Organization Normally-allocated Staff Total Staff at Peak Enshi ADB Loan Project 6 10 Management Office Wuyangba street office 3 4 Liujiao office 3 4 Xiaoduchuan office 2 3 Longfeng Town 5 8

13.1.6 Responsibilities of internal monitoring organization

(1) Establish resettlement offices, provide training for staff and investigate the affected regions. (2) Engage external monitoring agency.

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(3) Guide the investigation by the investigation organization during initialization. (4) Provide training for staff in sub-projects. (5) Supervise and check the consistency between resettlement policy of sub-project and the action plan of project. (6) Supervise the information of the affected persons and make resettlement manual. The resettlement department will make corrective measures for any problem that is discovered during internal monitoring check.

13.1.7 Cycle and report of internal monitoring

Internal monitoring is a continuous process that, a full monitoring activity is executed at least once a season; the frequency will be increased during crucial period of resettlement. During preparation of the project, the internal monitoring organization will prepare regular or irregular internal report combining ADB's checks by Enshi PMO; the format differs depending on ADB's requirements and different phases. Brief monthly report, detailed quarterly report, and annual summary report are required during implementation The resettlement completion report will be submitted after the resettlement is completed. The internal monitoring report is submitted by the executive resettlement organization (Enshi PMO) at all levels to the government at same level, the executive resettlement organization at a higher level and the project management office. The project management office submits a quarterly monitoring/progress report to the ADB during the implementation.

13.2 External monitoring

The project organizer will employ an independent and qualified third party to provide external monitoring and evaluation on resettlement during project implementation. Refer to Appendix 12 for the terms of reference for external monitoring and reporting requirements.

The external monitoring agency's report will be written and submitted to the Project management office in Chinese for review and to take follow-up actions on any recommendations. In addition, the report is required to be circulated among relevant personnel in the resettlement office, collect their comments and communicate about the contents and form of the report before formal submission. The PMO will submit to ADB both the Chinese and English versions, as well as any comments, clarifications and proposed follow-up actions. The monitoring reports will be uploaded to ADB

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website. The PMO will also disclose the monitoring reports to affected households.

Table 1 External Monitoring Evaluation Report

Responsible Type Time Report Organization 1st report, including 2015-4-30 baseline household Semi-annual survey report External monitoring monitoring reports 2015-8-31 2nd report External monitoring report 2016-4-30 3rd report agency 2016-8-31 4th report Annual evaluation 2017-8-31 1st report reports 2018-8-31 2nd report Completion report 2018-8-31 Completion report

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Appendix 1 Resettlement Information Booklet

1. Purpose of Resettlement Handbook This resettlement handbook is prepared with main purpose of introducing this project, especially the compensation principles and resettlement-related interests, and of disclosing information in respect of how and when to pay land compensation fees and other payments to individuals/collectives of requisitioned land. This is part of the information disclosure, and the purpose is to disclose policies and procedures of land acquisition, relocation, compensation, payment, handling of correspondences and visits, and steps for filing complaints. Related execution units shall distribute this handbook to all the APs and affected village committees with requisitioned land before careful measuring and investigation. 2. Project Profiles This project consists of four sub-projects. Total investments are 1.434 billion yuan, including 100 million US dollars borrowed from ADB, and the rest is provided or raised by local government. The four sub-projects include: (1) water pollution control; (2) comprehensive river embankment; (3) water pollution management capacity building; (4) project organization capacity building. Enshi City and Lichuan City are involved in this project. 3. Project Implementation Period House demolition and relocation of houses starts from April, 2015 and completes at the end of March, 2018. 4. Executing and Implementation Departments Departments involved in the resettlement mainly include: (1) Enshi City ADB Loan Project Leading Group (2) Enshi City ADB Loan Project Leading Group Office (3) Enshi Urban Construction and Investment Company(4) Water Resources Bureau of Enshi City (5) State Land and Resources Bureau of Enshi City (6) Construction and Housing Bureau of Enshi City (7) Office (township) government (8) Village (community) Committees (9) External Resettlement Supervision Agency 5. Demolition and Relocation Compensation

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(1) Land compensation standards are specified in Table 1.

Table 1: Land Compensation Standards

Unit Classⅰ Class ⅱ

Dalongtan Village, Qifeng Community, Daguanyuan Community, Daqiaolu Community, Jichanglu Community, Fengxiangping Village, Fenghuanglu Sanlongba Village, Community, Guanpo Community, Shuangyantang Village, Tanjiaba Village, Gengjiaping, Jinziba Longfeng Village, Sanhe Land type yuan/mu Village, Guihuayuan Community, Village, Longfeng Community, Sankongqiao Neighborhood Xiaolongtan Village and Committee, Guihuayuan Community, Longfeng Village Gaoqiaoba Village, Shuyuan Community, Chengxiangjie Community and Toudaoshui Village Output yuan/mu 2561 2210 18 (3 times for village 23 (3 times for village collectives and Multiple Times collectives and 15 times for 20 times for individuals) individuals) Comprehensi ve price in yuan/mu 58903 39780 land acquired district Compensatio n standard General Times 1 1 for young cultivated land croups Vegetable plot Times 1.1 1.1 Correction Vegetable plot Times 1.1 1.1 factor Orchard Times 1.1 1.1 Tea garden Times 1.1 1.1 Intensively Times 1.1 1.1 cultured fishpond Forestland Times 0.7 0.7 Unused land Times 0.5 0.5 (2) Compensation for Demolition and Relocation Demolition and relocation compensation shall be provided through property transaction, currency compensation, ownership exchange and the combined. 6 Cut-off Date the cut-off date for compensation qualification was June 30, 2014. Owners of requisitioned land will not be compensated or subsidized if they cultivate new land, build new house or settle down in the affected areas after the cut-off date. Any buildings erected, or trees or crops planted only for the purpose of getting extra compensations will not be excluded from the compensation scope.

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7 Payments of Land Compensation Fees Land compensation fees for other attachments on the requisitioned land in principle shall be directly paid to the legal owners thereof. Land compensation fees for others besides the requisitioned houses shall be determined according to their current reset price. The land compensation fees and resettlement fees payable by the construction units shall be directly paid to the owners or users of requisitioned land. The Land Law of the People’s Republic of China provides for that land compensation fees must be distributed to the original owners and users of requisitioned land, and resettlement fees must be used to resettle or relocate rural populations with land requisitioned. Therefore, land compensation fees shall be distributed to the collective economic organizations (villagers’ groups) which enjoy the ownership of the requisitioned land or organizations of village level to which these organizations belong; resettlement fees shall be under custody of units or organizations in charge of resettlement. If villagers’ groups are in charge of resettlement of related persons, resettlement fees need to be distributed to such related persons. For more details, please refer to table 3. 8 Complaints To protect the interests, rights and properties of related units and individuals from infringement and damage, their opinions and complaints shall be reported through the following steps: Stage 1 Affected persons provide oral or written dissatisfaction to community or local resettlement office. If it is oral dissatisfaction, the community or the local settlement office must properly keep written records and make a definite reply within 2 weeks. If the problems involved are relatively significant and it is thus required to ask superior resettlement office for instructions, it shall strive to obtain the replied opinions of superior resettlement management department within 2 weeks. Stage 2 If the replied opinions in stage 1 do not satisfy the complainants, the complainants may appeal to subproject resettlement office within one month after receiving decision of stage 1, and the subproject resettlement office shall make a decision on processing of the appeal within 3 weeks. Stage 3 If the affected persons are still dissatisfied with the replied opinions of subproject resettlement office, they may appeal to Enshi City Project Leading Group within one month after receiving replied opinions in stage 2, and the leading group will provide replied opinions within 4 weeks.

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APs can also submit complaints to ADB which will be handled by the Project Team. If an AP is still not satisfied and believes they have been harmed due to non-compliance with ADB policy, they may submit a complaint to ADB’s Office of Special Project Facility or Office of Compliance Review in accordance with ADB’s Accountability Mechanism6. If the affected persons do not choose to solve the problem through the procedures mentioned above, they can directly file a lawsuit to a civil court. All complaints and appeals (oral or written) shall be specified in resettlement internal and external monitoring report and reported to the PMO and ADB. These procedures shall remain valid during the whole project construction in order to make sure villagers are able to deal with matters in relation to rehabilitation of infrastructures, including rebuilding of irrigation system, location selection and design for drainage pipelines and sidewalks, utilization of normal roads entrance and temporary land and so on. This way, villagers will be able to efficiently report these problems to the project management offices and parties to contract for open discussion, so that these problems could be solved in a timely manner. Table 2: Information of Units and Individuals Receiving and Handling Complaints and Appeals

Contact Address Telephone person Enshi ADB Loan Project No.27 Shifu Road, Cui Yingfei 07188212370 Management Office Enshi City Zhu Wuyangba street Wuyangba street office 07188221309 Rongzhang office, Enshi City Demolition Office, Liujiao office Yao Min Liujiaoting Street 07188259905 Office, Enshi City Demolition Office, Xiaoduchuan office Li Xiaoyan Xiaoduchuan Street 07188245202 Office, Enshi City Demolition Office, Lai Longfeng Town Longfeng Town 07188312418 Fengchao Longfeng Town, Enshi City Enshi Land and Tan Bixin 07188416408 Enshi ADB Loan Project Resources Bureau Management Office House acquisition Jiang Yang 07188285818 office of Enshi

6 For further information see: http://www.adb.org/Accountability-Mechanism/default.asp.

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Land Acquisition Li Xuemei 07188209528 Affairs, Enshi

9. Disclosure of RP This resettlement handbook contains resettlement measures and house construction plans, which are accessible at the Office of Enshi City Development and Reform Committee.

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Table 3 Entitlement Matrix

Type of Scope of impact Right holder Resettlement policy Standards for compensation Implemented by impact 1) dual modes consisting of property rights swap and monetary indemnity, 2) monetary compensation by the street governmental office in accordance with the expropriation compensation scheme therefor for the expropriation of private houses pursuant to law; Assessment to be conducted for Relocation of 19 owner(s) of each house may apply for determining the sum of the monetary House rural HHs constructing one house on his/their own within compensations. Settlement should be 19 HHs and 80 persons Enshi City Urban demolition and covering a the planned concentrated villager relocation conducted for the property rights swap from 2 villages Investment Co., Ltd relocation residential area sites, or otherwise apply for purchasing for one as per the cost price. The cost price for of 6,478 ㎡ unit apartment at the rate of the cost price of the the property rights swap is 1,200 yuan/ resettlement houses; 3) monetary ㎡. compensation: floorage of the house of the legitimate applicant X replacement price + assessed price for house decoration + appurtenance compensation + other compensations. (1) No land adjustment will be conducted for See Table 7-2. The amount to the Expropriation affected villages. (2) methods for distribution of equivalent of 3 times of the annual 688 HHs, 2788 persons of the land compensations on a detailed basis output is attributable to the rural Enshi City Urban 24 villages and arable lands collectively-ow should be determined through discussion collective economies, and the rest part Investment Co., Ltd amounting to 235.6 Mu ned lands between representatives of villagers before is to be distributed equally to affected their implementation. (3) Compensation of the persons.

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resettlement subsidies to affected HHs. (4) Compensations for above-ground attachments (including young crops) on the collectively-owned lands to the owners thereof.

Residents with an income lower than 2,300 Class A: 160 yuan/person-month; Class Vulnerable 19 HHs and 73 persons yuan/year are to be verified as personnel B: 120 yuan/person-month; Class C: 80 Social Security groups of vulnerable groups entitled to Subsistence Allowances who are yuan/person-month; and Class D: 45 Bureau of Enshi City divided into four classes. yuan/person-month. All kinds of expenses and administrative fees referred to by the complaint by the affected person in respect of the Compensation standards, payment of the All the persons demolition and relocation should be Enshi City Urban Complaint compensations and measures for demolition affected exempted therefrom, and the Investment Co., Ltd and relocation reasonable expenses arising therefrom should be disbursed from the contingencies for the Project Monetary compensations are to be provided on Average farmland: 2,561 yuan/ Mu Rural families account of the actual service life for the (2210 yuan/Mu in Longfeng Town), Temporary To be investigated Enshi City Urban (for temporary implementation of the Project. Compensation to correction factor for forest lands is 0.7, land use during implementation Investment Co., Ltd land use) be made available as per the actual period of averagely 0.5 for unused land, and 1.1 occupancy. for vegetable Fields.

Villagers, villages or Compensative funds to be paid to owners of the other organizations as Enshi City Urban Trees Owners trees to be cut off or otherwise the Trees of economic value: 10-100 yuan verified on the basis of Investment Co., Ltd transplantation fees will be granted thereto the ownership thereof

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Appendix 2 Related Laws And Rules

 Related laws and regulations promulgated by the Central Government Law of Land Administration of the People’s Republic of China, implemented in January 1999 and revised on August 28, 2004 Law of the People’s Republic of China on Land Contract in Rural Areas, implemented on March 1, 2003 Law of the People’s Republic of China on Urban Real Estate Administration, implemented on January 1, 1995 Decisions on Deepening Reform and Strengthening Land Administration, promulgated by the State Council on October 21, 2004 Circular on Strengthening Related Matters of Land Control, promulgated by the State Council on August 31, 2006 Real Right Law of the People’s Republic of China, implemented on October 1, 2007 Regulations of the People’s Republic of China on the Disclosure of Government Information, implemented on May 1, 2008  Laws and policies published by Hubei Provincial People’s Government and related departments Measures of Hubei Province on Implementation of Land Administration (March 22, 1999) Guidelines of the Ministry of Land and Resources on Improvement of Land Compensation and Resettlement System (November 3, 2004) Circular of Hubei Provincial People’s Government on Further Strengthening Land Requisitioning Management to Practically Protect Lawful Rights and Interests of Owners of Requisitioned Land (February 27, 2005) File of Hubei People’s Government: Circular of Provincial People’s Government on Disclosure of Unified Annual Output Standard and Districted Comprehensive Land Section Price of Hubei Province, promulgated on March 13, 2014 and executed from April 1, 2014. Laws and policies of Enshi City People’s Government and related departments Interim Measures of Enshi Municipality on Guaranteeing Basic Livelihood of Owners of Requisitioned Land (EN SHI ZHENG GUI [2009] NO. 36) Circular of Office of Enshi City People’s Government on Printing and Issuing of Interim Measures of Enshi Municipality on Acquisition of and Compensation for Houses on State-Owned Land (EN SHI ZHENG BAN GUI (2012) NO. 2) Circular of Office of Enshi City Government on Printing and Issuing of Plans for

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Acquisition, Compensation and Resettlement of Houses on Collective Land in Urban Planned Areas (No. 42 File in 2011) Policy of ADB for resettlement of involuntary APs While observing related policies of the State, Hubei Province and of the place where this project situates, the formulation of the RP and the implementation of subsequent works of relocation shall be carried out according to the requirements of ADB Statement of Security Policy. The resettlement works shall be implemented in strict accordance with the policies confirmed herein, and any change if incurred during the implementation shall be informed to ADB for prior consent. In case of major change, the project management office shall hold discussion with those being affected and offer another RP.  Abstract of Major Laws, Regulations and Policies  Abstract of Relevant Laws and Regulations of the State and Provinces 1. Regulations on land ownership and land use right The People’s Republic of China resorts to a socialist public ownership i.e. an ownership by the whole people and ownerships by collectives. Land in urban districts shall be owned by the State. Land in rural areas and suburban areas, except otherwise provided by the State, shall be collectively owned by farmers, including land for building houses, land and hills allowed to be retained by farmers (Article 2 and 8 of the Law of Land Administration of the People’s Republic of China) In order to meet the demands of public interests, it is allowed to requisition lands owned collectively, premises owned by entities and individuals or other realities according to the statutory power limit and procedures. When requisitioning land owned collectively, it is required to, in accordance with law and in full amount, pay land compensation fees, placement subsidies, compensations for the above-ground attachments of the lands and seedlings and other fees, arrange for social security fees for the farmers with land requisitioned, guarantee their livelihood and protect their lawful rights and interests. When requisitioning the premises owned by entities and individuals or other realties, it is required to compensate for demolishment and relocation in accordance with law and protect the lawful rights and interests of the owners of the requisitioned realties; when requisitioning the individuals’ residential houses; it is required to guarantee the housing conditions of the owners of the requisitioned houses. (Article 42 of Real Right Law of the People’s Republic of China) In undertaking land contracts in rural areas, women shall enjoy equal rights with men. The legitimate rights and interests of women shall be protected in contract. No organizations or individuals may deprive their rights to land contractual management,

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which they are entitled to, or infringe upon such right. During the term of contract, the contract-issuing party may not take back the contracted land. During the term of contract, the contract-issuing party may not readjust the contracted land. (Article 6, 26, 27 of the Law of the People’s Republic of China on Land Contract in Rural Areas) 2. Regulations on land acquisition compensation standard For requisitioned land, compensation should be made according to the original purposes of the land requisitioned. Compensation fees for land requisitioned include land compensation fees, resettlement fees and compensation for attachments to or green crops on the land. The land compensation fees shall be 6-10 times the average output value of the three years preceding the requisition of the cultivated land. The resettlement fee shall be calculated according to the number of agricultural population to be resettled. The number of agricultural population to be resettled shall be calculated by dividing the amount of cultivated land requisitioned by the per capital land occupied of the unit whose land is requisitioned. The resettlement fees for each agricultural person to be resettled shall be 4-6 times the average annual output value of the three years preceding the requisition of the cultivated land. But the maximum resettlement fee per hectare of land requisitioned shall not exceed 15 times of the average annual output value of the two years prior to the requisition. (Article 47 of the Law of Land Administration of the People’s Republic of China) Local people’s governments at county level or above shall take practical measures to maintain the livelihood of farmers with land expropriated. It’s required to provide full compensation for land compensation fees, resettlement fees and compensation for attachments to or green crops on the land. Where the land compensations and resettlement fees paid according to the existing laws and regulations are not enough to maintain the original living standard or to cover social security contributions, the resettlement fees may be increased with approval of the people’s governments of provinces, autonomous regions and municipalities. Where the combined total of land compensation fees and resettlement fees reaches the statutory limit, but still is insufficient to maintain the original living standard, the local people’s governments may provide subsidies from the income from paid use of state-owned lands. The people’s governments of provinces, autonomous regions and municipalities shall formulate and distribute unified annual output standard or districted comprehensive land price for land requisition in all cities and counties, and try to achieve same price for same land in term of land compensation. For key construction projects of the State, land compensation fees must be incorporated in full amount into financial estimates. (Article 12 of the Regulations of the State Council on Deepening Reform and Enhancing Land Management)

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3. Regulations on resettlement of farmers Local people’s governments at county level or above shall formulate concrete measures to guarantee the livelihood of farmers with land requisitioned for a long term. Farmers may carry out projects that could produce stable profit on the land for construction use as approved by law. Within the urban planned areas, local people’s governments should include farmers without land due to requisition into the urban employment system, and establish a social security system; when requisitioning farmer collectively-owned land not within the urban planned areas, the local people’s governments should, within their respective administrative districts, retain necessary land for farming or arrange for corresponding position for the owners of the requisitioned land, and resettle landless farmers without basic conditions for living and farming elsewhere. (Article 13 of the Regulations of the State Council on Deepening Reform and Enhancing Land Management) Farmers of requisitioned land may choose to be subject to the below resettlement: (1) being provided with opportunities for farming. When requisitioning farmer collectively-owned land beyond the scope of urban planned areas, it’s required to take advantage of the rural collective flexible land, contracted land voluntarily returned by contracted farmers, circulated contracted land, and newly added cultivated land to firstly make sure necessary farmlands are available to farmers of requisitioned land so that they could be able to continue to engage in farming; (2) being provided with opportunities for re-employment. It’s required to actively create employment conditions, including providing free labor skill trainings to and arranging corresponding positions for farmers of requisitioned land. Priority should be given to farmers of requisitioned land in term of employment if they are equally qualified as other candidates. When requisitioning farmer collectively-owned land within the urban planned areas, it’s required to incorporate farmers of requisitioned land into urban employment system, and establish a social security system. (3) being provided with opportunities for investment. If farmers agree, the rural collective economic organization, upon negotiation with land users, may invest the land compensation and resettlement fees into projects with long-term stable profit, or make such investment with the value of approved construction land use right. The rural collective economic organization and farmers agree in the contract to benefit from such projects by preferred stocks. (4) being provided with opportunities for relocation elsewhere. If it’s unable to provide farmers of requisitioned land with basic living conditions, they may be relocated elsewhere by government if the rural collective economic organization and farmers of requisitioned land agree. (Article 2 of Guidelines on Improvement of Land Compensation and Resettlement System)

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4. Regulations on disclosure of requisition information During land requisitioning, it’s required to protect the ownership of farmer collectively-owned land and the land contract management right. Before submission for approval, it’s required to inform farmers of the use purpose, location, compensation standard and resettlement method in respect of the land to requisition, and provide the investigation results of the current situations of land to requisition to local rural collective economic organization and farmers for confirmation; whenever necessary, the land and resources departments should hold hearings according to related stipulations. It’s required to submit materials and documents confirmed and being aware of by the owners of requisitioned land for approval. It’s required to accelerate building and improving of a mechanism for coordinating and solving disputes arising from land compensation and resettlement, and to protect lawful rights and interests of the owners and users of requisitioned land. Approved requisition matters, except under special circumstances, shall be made public. (Article 14 of the Regulations of the State Council on Deepening Reform and Enhancing Land Management) People’s governments of provinces, autonomous regions and municipalities shall formulate measures for internal distribution of the land compensation fees within the rural collective economic organization based on the principle of land compensation fees to be mainly used for owners of requisitioned land. The rural collective economic organization with land requisitioned shall report to its members the receipts, payments and distributions of land compensation fees and accept supervision thereof. The agriculture department, civil affairs development and the like shall strengthen efforts of supervision on the distribution and utilization of land compensation fees within the rural collective economic organization. (Article 15 of the Regulations of the State Council on Deepening Reform and Enhancing Land Management) The administrative organs shall publish government information in a timely and accurate manner. The administrative organs shall provide accurate government information within the scope of its duty for clarification if noticing any false or incomplete information that affects or might affect social stability and interfere with social administration order. (Article 6 of the Regulations of the People’s Republic of China on the Disclosure of Government Information) The administrative organs shall disclose voluntarily disclosed government information through government gazette, government website, press conference and magazines, radios, televisions and the like. (Article 15 of the Regulations of the People’s Republic of China on the Disclosure of Government Information) People’s governments at all levels shall provide a place for accessing government

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information at the National Archives and public libraries, and equip with corresponding facilities and equipment to provide convenience for citizens, legal persons or other organization to access government information. The administrative organs may, based on demands, set up public reading room, data access point, information bulletin, e-information screen for disclosure of government information. The administrative organs shall provide voluntarily disclosed government information to the National Archives and public libraries. (Article 16 of the Regulations of the People’s Republic of China on the Disclosure of Government Information) 5. Regulations on management of house demolition and land for building houses Verifying land use standards strictly. One rural HH can own one piece of land for building house. Total area of land newly built or expanded for building house (including attached facilities) on the agricultural land or on the unused land shall not exceed 140m2 per HH or 200m2 per HH respectively. (Circular of General Office of Provincial People’s Government on Strengthening Management of Rural Land for Building Houses) Related ADB policies on involuntary resettlement （1）ADB involuntary resettlement policies Statement of Security Policy formulated in June 2009 provided systematic policy warranty and practice guideline for loan project resettlement of the ADB (ADB). The purpose and principle of the involuntary resettlement policy proposed by ADB mainly include: Such policy should avoid involuntary relocation. All feasible options should be explored to reduce the number of the relocated person as much as possible. Those to be relocated should be properly compensated and assisted to ensure their future and place in society are not being affected as if this project never exists. Persons with land requisitioned should be fully aware of all policies and regulations on relocation and compensation, and enter into discussion in respect thereof. Social and cultural institutions should support and make use of to the greatest extent the existence of the relocated persons and residents at resettlement areas. The relocated persons should try to blend in the places where they are relocated to economically and socially. Some of the persons with land requisitioned have no lawful ownership of their requisitioned land, but this should not be a problem in term of compensation; special attention should be paid to women and other vulnerable families, such as aboriginal

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and minority, and proper assistance and support should be provided to help to improve their living standard. It’s required to incorporate the involuntary resettlement into this project and implement it as part of this project. All the fees for those to be relocated and for compensation should be recorded in the project expenses and revenues report. Upon consideration, fees for farmers of requisitioned land and compensation fees may be included in ADB-funded project loan. It’s required by ADB to take the following practical measures to reflect the above principle and realize the resettlement purpose: Choosing feasible alternatives and taking all possible measures to maximally reduce or eliminate involuntary resettlement. Determining the number of farmers to be relocated at the preliminary social evaluation stage, and setting forth proper work outline during technical support feasibility study Considering the resettlement a part of all projects; these projects include departmental projects, private department projects, jointly-funded projects, and loan programs of development financial institutions. Completing social economic survey and census of population with land requisitioned at the beginning of project preparation in order to confirm all losses resulted from land acquisition and all persons with land requisitioned, and to prevent outsiders or speculators from sneaking in. Requesting all interested parties, especially all the persons with land requisitioned, in particular disadvantaged group, to participate in negotiation. Compensating for all losses of all the persons with land requisitioned, including those having no lawful ownership of land, at the reset fees. Working out relocation plan by negotiation with persons and communities of relocated house when house relocation is required to restore their original living standard. Formulating proper plans to help increase or at least restore their original living standard when persons with land requisitioned are unable to make money and make a living. If the persons with land requisitioned belong to vulnerable groups or their activities may tense social relations, they shall be provided support to adapt to such change. (2) ADB Social Safeguard Policy To practically protect the disadvantaged group, ADB’s Social Safeguard Policy (2009) includes requirements for involuntary resettlement which covers the following five aspects: Labor market policies and plans; the purpose is to improve working conditions and

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make labor market flexible. Social insurance plan; the purpose is to reduce risks of unemployment, disease, ability to work, work-related injuries and reaching old age. Social security and pension system; the purpose is to guarantee the livelihood of the majority of single mothers, the homeless, the physically or mentally disabled and other disadvantaged group. Expanded security, agricultural insurance and social support; the purpose is to strengthen the level of security for disadvantaged group including those born disabled. Children protection; the purpose is to ensure they can grow up healthily. Meanwhile, ADB social security strategy requires reduction of the number of enterprises and individuals affected by this project.  Comparison of ADB Involuntary Resettlement Policy Requirements with China’s Land Acquisition and Demolition Policies On the whole, ADB involuntary resettlement policy requirements are in many ways similar to China’s land acquisition and house demolition policy, for instance: Both highlight the need to try best to avoid or reduce resettlement during project planning and design; Both highlight the need to restore and improve the living standard of those affected; Both highlight the need to make resettlement policy accessible and transparent; Both highlight the necessity to keep the public updated and encourage the public to involve in the resettlement; Both set forth that the resettlement compensation standard should be determined and executed by law. However, differences still exist in several ways between China’s land acquisition and house demolition policy and ADB involuntary resettlement policy requirements, including: In comparison, ADB pays more attention on the planning work before implementation of resettlement, and requests formulation of practical and feasible RP; According to ADB involuntary resettlement policy requirements, it’s required to compensate for all losses of those affected at the reset fees during resettlement, including those without lawful ownership of land. But, China’s land acquisition and house demolition policy sets forth otherwise, that means different compensation method is adopted for requisitioned unlicensed buildings. ADB stresses more about special care for vulnerable groups during resettlement; In comparison, ADB pays more attention on the monitoring and supervision of resettlement process.

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Based on the above analysis, this project should take related ADB policies and requirements into full account during resettlement preparation, and take following measures to meet ADB requirements: Working out a detailed RP during project preparation stage based on social economic survey and physical items investigation; Paying special attention to vulnerable groups during implementation of resettlement; Offering proper compensation to unlicensed buildings; Establishing a system for externally and internally monitoring of resettlement; The purpose is to connect ADB RP and China’s land acquisition and house demolition policy in an efficient way through the above measures, so as to guarantee successful implementation of resettlement of this project. Disparity between ADB policy and China’s policy By comparison, Chinese laws and ADB policies have different rules in information disclosure and negotiation. In China, some government-funded projects only have construction budget, and resettlement is to complete by county or town government. And now, this phenomenon has been changed and stops in this project. So, there’s no great disparity between this project and ADB policies and requirements in this aspect. According to ADB policies, it’s required to make preparation for resettlement from the very beginning, but now we are at the land approval stage, and fail to conduct detailed social economic survey or consult with directly affected persons. Meanwhile, no full-time person is appointed to be in charge of settlement work at the project preparation stage. As we know that it’s difficult for a project without detailed RP to succeed. In short, we need to follow the existing approved laws and policies in a strict manner to successfully implement resettlement. This gap has been narrowed down by training on personnel from the implementation agency. Moreover, ADB senior resettlement experts and project technical support advisors are trying to cause the project implementation agency to fully understand ADB involuntary resettlement policies and China’s related policies. This is just the beginning, and further measures will be taken after technical support stage and before resettlement stage.

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Appendix 3: Meeting Minutes

1 Date: December 11, 2013 Venue: Longfeng Town Conference Room (3rd Floor) Participating Units: Longfeng Village, Longfeng Community, Sanlongba Village, Sanhe Village, Xiaolongtan Village, ADB Project management office, Tongji University Participants: Zhang Tingyu, Huang Shaozhen, Tan Xuezhou, Peng Yibao, Yang Huajun, etc. Topics: (1) attitude and suggestions toward project construction; (2) attitude and suggestions toward land compensation; (3) suggestions on employment and revenue recovery after land acquisition. Conclusions: (1) it’s agreed to support project construction in order to facilitate completion as soon as possible; (2) land acquisition is ongoing, and it’s agreed to accept compensation policies; (3) it was agreed to transport domestic wastes to refuse disposal plant; (4) it’s agreed upon self-discharge of domestic sewage; (5) there’re related policies that support low-income families, but young people show no interest in participating in endowment insurance; (6) land of Hongmiao WWTP is already requisitioned. 2 Date: December 11, 2013 Venue: Conference Room of Xiaoduchuan Office (2nd Floor) Participating Units: Dalongtan, Qifeng Community, Daguanyuan Community, Daqiaolu Community, Jichang Community, ADB Project management office, Tongji University Participants: Hu Ezhou, Hu Chao, Yang Tiancheng, Huang Dingshun, Xiang Guangju, Xiang Long, etc. Topics: (1) attitude and suggestions toward project construction; (2) attitude and suggestions regarding land compensation; (3) suggestions on employment and revenue recovery after land acquisition. Conclusions: (1) it’s agreed to support project construction to facilitate completion as soon as possible; (2) land acquisition is ongoing, and it’s agreed to accept compensation policies; (3) people’s environmental consciousness needs to improve; (4) Tiancheng Stone, yuanfu Food, Haoyangshahua and other enterprises agree to open their door to those affected; (5) minimum assurance policies need to be implemented. 3 Date: December 12, 2013 Venue: Wuyangba Street Conference Room (2nd

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Floor) Participating Units: Jinziba, Gengjiaping, Fengxiangping, ADB Project management office, Tongji University Participants: Xu Daisong, Li Shimei, Chen Huanquan, Kang Xiu, Li Zhenghui Topics: (1) attitude and suggestions toward project construction; (2) attitude and suggestions regarding land compensation; (3) suggestions on employment and revenue recovery after land acquisition. Conclusions: (1) it’s agreed to support project construction to facilitate completion as soon as possible; (2) land acquisition is ongoing, and it’s agreed to accept compensation policies; (3) minority shares basically the same way of life and habit with HAN nationality, with only a few minority culture retained; (4) it’s agreed to accelerate watercourse control to improve local environment quality; (5) increase of land compensation standard is unanimous. 4 Date: December 12, 2013 Venue: Liujiaoting Street Conference Room (2nd Floor) Participating Units: Liujiaoting Street, Toudaoshui, Tanjia Village, Gaoqiaoba Village, Songshuping, Shuyuan, Chengxiangjie, ADB Project management office, Tongji University Participants: Chen Shuangquan, Xie Jungui, Wei Shaoping, Lai Jiayong, Xiang Kaiwen, Chen Ren, Xiang Xiangwei, etc. Topics: (1) attitude and suggestions toward project construction; (2) attitude and suggestions regarding land compensation; (3) suggestions on employment and revenue recovery after land acquisition. Conclusions: (1) it’s agreed to support project construction to facilitate completion as soon as possible; (2) land acquisition is ongoing, and it’s agreed to accept compensation policies; (3) it’s agreed to improve the environment of several rivers to boost tourism development.

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Appendix 4: Due Diligence Report For Construction Land Of Enshi Hongmiao WWTP

1 Enshi Hongmiao WWTP Hongmiao WWTP currently is under construction at Zhakou Group, Xiaolongtan Village, left bank of mid and down-stream of Daishui River, for which 87.25 mu of land has been requisitioned. After completion, this plant will serve an area of approx. 19.5km2, covering Longfeng New District, train station, Gengjiaping and Hongmiao Development Zone. Commenced in the year of 2013, Phase 1 will be capable of treating 30000 t/d of sewage after being put into operation in 2015 (estimated). By adopting reverse A2/O process, water quality could be able to reach Class 1 Level B prescribed in the Discharge Standard of Pollutants for City Wastewater Treatment Plant (GB18918-2002). Low-lying areas do make it easy for discharge of wastewater on one hand, but on the other hand, measures like elevating the ground level and building flood protection wall are currently taken because they are too low, below the maximum flood level. 6,467m3 of earth-retaining walls are already built. Hongmiao WWTP Phase 1 (30,000 t/d) that is under construction will serve its time from 2015 to 2020. It’s estimated that such demand will increase by 30,000-32,000 t/d with the regional construction and pipeline network construction; meanwhile, according to the results of discussion with related wastewater management departments and in consideration of certain reserves, this ADB Project, i.e. Hongmiao WWTP Expansion (Phase II), is designed to be able to treat 40,000 tons of wastewater per day. This project will be carried out at the original location, which occupies a land of 87.25mu. Land acquisition for this project was completed in 2013, and compensation funds are already distributed to guarantee rights and interests of those affected. So far, there’s no leftover issue. On October 14, 2013, competent departments of Enshi City conducted a review on cost of Enshi Hongmiao WWTP. The project was located in Xiaolongtan Village of Longfeng Town. 72.4962 mu was actually expropriated, where farmland occupied 63.5964 mu and fish pond occupied 8.8998 mu. Expropriation expense was 7,074,310 yuan, among which land compensation fee was 6,905,614 yuan, which involved 72 HHs. In the project, compensation standard 80664 yuan/mu for farmland,

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84730.4 yuan/mu and 28000 yuan/mu for forest land. 2 Interview Records (1) Interview Record: Wang Yunhu from Enshi Lvyuan Sewage Treatment Company on December 10, 2013 Design scale of Hongmtiao WWTP is 60,000 tons. This project was commenced in 2013 and is being carried out by two phases. Land acquisition is carried out one time, and totaling 87.25mu of land has been requisitioned. This project is located at Zhakou Group, Xiaolongtan Village of Longfeng Town, and land acquisition work is completed by Enshi Land Bureau according to the land acquisition-related policies. The compensation fees are already paid. The land for such WWTP is allocated by the government, so there’s no leftover issue. (2) Interview Record: Head of Xiaolongtan Village, Longfeng Town, on December 11, 2013 The land requisitioned for Hongmiao WWTP is the land of Zhakou Group, and agreement was signed in 2013. Cultivated land is compensated at 80644 yuan per mu, and fish ponds 84,730.2 yuan per mu. The land compensation fees are paid by government (23 times in total, with three times retained by village and the rest 20 times distributed to farmers of requisitioned land). Because of the land acquisition, individuals of requisitioned land have to leave their land and go out to work in Enshi City or elsewhere, and they make stable earnings. There’s no leftover issue. 3 Conclusions (1) Hongmiao WWTP Phase 1 is normally ongoing. (2) Land acquisition work of WWTP was completed in 2013, and compensation agreement has been executed. There’s no leftover issue. (3) Income level of individuals of requisitioned land shows no sign of decrease.

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Appendix 5 Permanent Collective Land Acquisition

Collective land acquisition (mu)

Garden Water area and water Construction land AP Subproject Section Town Village Group Arable land Subtotal Forest land Total land conservancy facilities use (lawn)

mu mu mu mu mu mu mu HH persons

Sanlongba Cenjiaba Group 6.2 0.3 6.5 0.8 2.50 0.9 10.66 10 41 Village Yijiaoba Group 6.5 0.3 6.8 0.6 2.30 0.9 10.59 10 41 Chenjiawan 4.8 0.4 5.2 0.5 2.00 0.765 8.48 5 20 Shangyantang Group Village Xiaohekou 4.0 0.3 4.3 0.6 2.00 0.825 7.70 5 20 Group Zhangjialaowu 5.0 0.4 5.4 0.5 2.10 0 8.03 35 142 Group Enhanced flood Longfeng Daishui River Majiaping management Town 5.1 0.4 5.5 0.9 2.10 0 8.50 24 98 Group Longfeng Jinlongba 4.5 0.3 4.8 0.5 2.90 0.675 8.83 16 65 Village Group Yamentai 3.5 0.3 3.8 0.5 2.90 0.675 7.85 12 49 Group Gaojianba 3.8 0.2 4.0 0.5 2.80 0.75 8.05 13 53 Group Liangshuijing Sanhe Village 3.6 0.3 3.9 0.5 2.80 0.72 7.93 4 16 Group

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Collective land acquisition (mu)

Garden Water area and water Construction land AP Subproject Section Town Village Group Arable land Subtotal Forest land Total land conservancy facilities use (lawn)

mu mu mu mu mu mu mu HH persons Fangjiaya 3.5 0.2 3.7 0.5 2.90 0.675 7.73 3 12 Group Community 2 of Jianshe 3.5 0.0 3.5 0.4 2.90 0.645 7.48 22 90 Longfeng Avenue Community Shangshuiqiao 3.5 0.1 3.6 0.6 2.90 0.075 7.21 35 142 Community Hetaogou 4.5 0.4 4.9 0.8 2.60 1.23 9.56 20 81 Group Xiaolongtan Shiziping 3.5 0.5 3.9 0.6 2.30 0.945 7.82 10 41 Village Group Dalongtan 3.6 0.6 4.2 0.7 2.30 0 7.17 7 28 Group Zhaizi Group 3.4 0.3 3.7 0.6 3.20 0.93 8.48 6 24 Xiaolongtan Xiaolongtan 3.4 0.5 3.9 0.6 3.20 0.93 8.64 7 28 Village Group Zhakou Group 4.3 0.6 4.9 0.8 2.80 0.63 9.18 10 41 Chayuanpian 4.2 0.2 4.4 0.5 3.70 0 8.57 10 41 group Jiupangou, Daishui Longfeng Longfeng Tangjiapo 4.6 0.0 4.6 0.5 3.70 0 8.84 10 41 River Town Village Group Sashipo Group 3.6 0.0 3.6 0.5 2.70 0 6.82 10 41 Jinlongba 2.9 0.0 2.9 0.5 2.70 0 6.12 9 37

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Collective land acquisition (mu)

Garden Water area and water Construction land AP Subproject Section Town Village Group Arable land Subtotal Forest land Total land conservancy facilities use (lawn)

mu mu mu mu mu mu mu HH persons Group Gaojianba 2.7 0.0 2.7 0.5 2.80 0 6.02 9 37 Group Yamentai 2.7 0.0 2.7 0.5 2.80 0 6.02 9 37 Group Sanchahe 2.5 0.0 2.5 0.3 2.00 0 4.80 3 12 Group Sanhe Village Baimiaoqiao Sancha River, Longfeng 2.5 0.0 2.5 0.2 2.00 0 4.70 3 12 Group Daishui River Town Kuzhulin Group 2.6 0.0 2.6 0.0 2.00 0 4.60 3 12 Xiaolongtan Hetaogou 2.8 0.0 2.8 0.0 2.00 0 4.80 11 45 Village Group Shuijingwan 0.5 0.5 1.0 0.0 3.30 0.1 4.40 4 16 Group Dalongtan Xiacunba 0.3 0.5 0.8 0.0 2.70 0.2 3.70 3 12 Village Group Dalongtan Xiaoduchu 0.5 0.5 1.0 0.0 2.60 0.3 3.90 4 16 Qing River Group an Street Group 8 0.2 0.4 0.6 0.0 2.40 0.3 3.30 10 41 Group 5 0.2 0.5 0.7 0.0 3.30 0.1 4.10 12 49 Qifeng Group 6 0.4 0.5 0.9 0.0 3.00 0.5 4.40 2 8 Community Group 7 0.4 0.4 0.8 0.0 2.30 0.4 3.50 1 4 Group 4 0.0 0.5 0.5 0.0 2.30 0 2.80 2 8

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Collective land acquisition (mu)

Garden Water area and water Construction land AP Subproject Section Town Village Group Arable land Subtotal Forest land Total land conservancy facilities use (lawn)

mu mu mu mu mu mu mu HH persons Group 3 0.0 0.0 0.0 0.2 2.30 0.2 2.70 0 0 Group 2 0.3 0.3 0.6 0.0 2.80 0.2 3.60 2 8

Group 4 0.2 0.2 0.4 0.0 2.80 0.5 3.70 15 61 Agricultural Daguanyuan Sciences Community 0.3 1.2 1.5 1.2 2.30 0.3 5.30 0 0 Research Institute Hongmiao 4.0 0.3 4.3 2.2 1.30 0.81 8.61 12 49 Group Fengxiangping Sancaoba 4.2 0.4 4.6 1.5 0.80 0.5 7.40 15 61 Wuyangba Village Group Street Dalongtan 3.5 0.1 3.6 1.3 0.80 0.9 6.60 12 49 Group (II) Fenghuanglu Hongmiao 1.2 0.0 1.2 0.0 0.30 1.0 2.50 4 16 Community Garden Chengxiangjie 0.3 1.5 1.8 1.4 2.10 0 5.30 40 163 Liujiaoting Community Street Guanpo 0.3 1.5 1.8 2.3 1.10 0 5.20 19 77 Community Longdong 4.5 0.1 4.6 0.7 6.00 0.5 11.82 10 41 Wuyangba Group Longdong River Jinziba Village Street Zhaojiaba 9.2 0.4 9.6 1.4 6.90 0.3 18.20 19 77 Group

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Collective land acquisition (mu)

Garden Water area and water Construction land AP Subproject Section Town Village Group Arable land Subtotal Forest land Total land conservancy facilities use (lawn)

mu mu mu mu mu mu mu HH persons Guihuayuan Londong 1.4 0.0 1.4 1.2 3.10 0.30 6.00 2 8 Community Garden Wuyangba Guihuayuan Londong Longdong River 3.3 0.0 3.3 0.0 0.00 0.3 3.60 4 16 Street Community Garden Wuyangba Guihuayuan Yulong River 3.0 0.5 3.5 0.7 1.50 0.50 6.20 24 98 Street Community Shahe Group 12.4 1.6 14.0 2.8 13.10 1.5 31.35 23 94 Wuyangba Shahe River Jinziba Village Badouqiu Street 12.4 0.6 13.0 2.8 11.60 1.7 29.10 28 114 Group Wuyangba Changling Longjiawan River Gengjiaping 7.5 0.5 8.0 1.6 4.30 0.6 14.45 4 16 Street Group Group 6 0.8 1.3 2.1 1.9 0.00 0 4.00 2 8 Shuyuan Group 7 0.9 1.5 2.4 0.9 0.00 0.00 3.30 2 8 Community Group 8 0.9 1.3 2.2 0.5 0.31 0 3.01 2 8 Liujiaoting Gaoqiao River Chengxiangjie street 0 0.9 1.9 2.8 0.3 0.00 0.00 3.10 18 73 Community Toudaoshui Group 1 0.9 1.8 2.7 1.6 0.30 0 4.60 4 16 Village Liujiaoting Shuyuan Gaojing River Group 2 0.8 2.1 2.9 0.3 0.00 0 3.20 4 16 street Community East bank, 500m Longfeng Qingshuli Ancillary facilities away from Shahe Xiangjia Village 4.4 0.5 4.9 0.9 2.26 1.01 9.02 10 38 Town Group River intersection in

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Collective land acquisition (mu)

Garden Water area and water Construction land AP Subproject Section Town Village Group Arable land Subtotal Forest land Total land conservancy facilities use (lawn)

mu mu mu mu mu mu mu HH persons the upper reaches of Longjiawan in Longjiawa direction 500m away from Longjiawan intersection in the Wuyangba Gengjiaping Changling 18.3 2.4 20.7 5.3 13.60 10.8 50.40 10 41 upper reaches of Street Village Group Shahe River in Shahe River direction South side of Longfeng Xiaolongtan Longfeng Substation, Zhakou Group 5.0 0.5 5.5 1.0 2.39 1 9.87 11 45 Town Village Daishui River 2,000m away from Longjiawan intersection in the Wuyangba Xiangjia Village Group 1 3.0 0.1 3.1 0.3 1.01 1 5.43 3 12 upper reaches of Street Shahe River in Shahe River direction Phase II, Hongmiao Longfeng Xiaolongtan Zhakou Group 0.0 0.0 0.0 0.0 0.00 0 0.00 0 0 WWTP Town Village Liujiaoting Tanjiaba WWTP Dashaba WWTP Dashaba Group 15.5 16.0 31.5 26.6 15.50 3.1 76.70 15 52 Street Village Gaoqiao River Pump Liujiaoting Shuyuan Group 8 2.4 0.2 2.6 0.4 1.00 0 4.02 5 20 Station Street Community

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Collective land acquisition (mu)

Garden Water area and water Construction land AP Subproject Section Town Village Group Arable land Subtotal Forest land Total land conservancy facilities use (lawn)

mu mu mu mu mu mu mu HH persons Total 235.6 49.3 284.9 76.2 197.3 41.2 599.5 688 2788

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Appendix 6 Influence of the Project on Rural Collective Land (Groups)

Acquisition Arable land Existing proportion Town/ Total HHs Total Male Female Labor force Agricultural to be Subproject River Village Group arable land at the street population labor acquired group level Person Person Person Person mu mu % Cenjiaba 114 465 236 229 313 250 280.0 4.2 1.5% Sanlongba Group Village Yijiaoba 117 477 240 237 305 252 312.0 3.5 1.1% Group Chenjiawan 93 380 190 190 213 100 380.0 2.8 0.7% Shangyant Group ang Village Xiaohekou 106 430 215 215 241 100 350.0 3.0 0.9% Group Enhanced Zhangjialao flood Daishui Longfeng 538 2189 1055 1094 1229 231 225.0 3.0 1.3% wu Group manageme River Town Majiaping nt 307 1251 639 612 703 177 281.0 3.1 1.1% Group Longfeng Jinlongba 73 297 151 150 223 65 91.2 2.5 2.7% Village Group Yamentai 66 267 136 135 201 58 82.1 2.5 3.0% Group Gaojianba 44 178 91 90 134 39 54.7 2.8 5.0% Group Sanhe Liangshuijin 57 230 143 127 89 40 220.0 2.6 1.2%

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Acquisition Arable land Existing proportion Town/ Total HHs Total Male Female Labor force Agricultural to be Subproject River Village Group arable land at the street population labor acquired group level Person Person Person Person mu mu % Village g Group Fangjiaya 66 270 120 110 101 50 320.0 2.5 0.8% Group Community 2 of Jianshe 50 204 96 108 115 40 15.0 2.4 15.8% Longfeng Avenue Community Shangshuiqi ao 50 204 96 108 115 40 15.0 0.3 1.8% Community Hetaogou 147 600 301 299 337 190 150.0 4.5 3.0% Group Xiaolongtan Shiziping 160 650 326 324 365 206 250.0 3.5 1.4% Village Group Dalongtan 135 550 276 274 309 174 350.0 3.6 1.0% Group Zhaizi 128 520 261 259 292 164 300.0 3.4 1.1% Group Xiaolongtan Xiaolongtan 160 650 326 324 365 206 350.0 3.4 1.0% Village Group Zhakou 123 500 251 250 281 158 250.0 2.3 0.9% Group Jiupangou, Chayuanpia Longfeng Longfeng 182 741 379 376 558 162 228.0 1.2 0.5% Daishui n group Town Village River Tangjiapo 121 494 252 251 372 108 152.0 1.3 0.9%

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Acquisition Arable land Existing proportion Town/ Total HHs Total Male Female Labor force Agricultural to be Subproject River Village Group arable land at the street population labor acquired group level Person Person Person Person mu mu % Group Sashipo 61 247 126 125 186 54 76.0 0.9 1.2% Group Jinlongba 73 297 151 150 223 65 91.2 0.9 1.0% Group Gaojianba 44 178 91 90 134 39 54.7 0.7 1.3% Group Yamentai 66 267 136 135 201 58 82.1 0.7 0.9% Group Longfeng Sanhe Sanchahe 68 276 172 152 107 48 264.0 0.5 0.2% Town Village Group Sancha Baimiaoqiao 34 138 86 76 53 24 132.0 0.6 0.5% River, Group Daishui Xiaolongtan Kuzhulin 28 115 72 64 45 20 110.0 0.6 0.5% River Village Group Hetaogou 147 600 301 299 337 190 150.0 0.6 0.4% Group Shuijingwan 58 235 118 117 113 39 60.0 1.1 1.8% Group Dalongtan Xiacunba Xiaoduchua 57 230 115 115 110 38 70.0 1.2 1.7% Qing River Village Group n Street Dalongtan 54 220 110 110 105 36 60.0 1.0 1.7% Group Qifeng Group 8 74 300 150 150 144 49 12.0 0.4 3.3%

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Acquisition Arable land Existing proportion Town/ Total HHs Total Male Female Labor force Agricultural to be Subproject River Village Group arable land at the street population labor acquired group level Person Person Person Person mu mu % Community Group 5 49 200 100 100 96 33 12.0 0.5 4.2% Group 6 49 200 100 100 96 33 100.0 0.6 0.6% Group 7 98 400 200 200 192 66 400.0 0.6 0.2% Group 4 76 310 155 155 149 51 100.0 0.1 0.1% Group 3 74 300 150 150 144 49 200.0 0.3 0.2% Group 2 93 380 190 190 182 62 100.0 0.3 0.3% Group 4 200 816 406 410 361 4 15.0 0.2 1.3% Daguanyua Agricultural n Sciences 74 300 180 120 252 0 15.0 0.3 2.0% Community Research Institute Hongmiao 46 189 95 94 126 48 47.0 2.0 4.3% Group Fengxiangp Sancaoba 97 394 197 197 263 100 98.0 2.2 2.2% ing Village Group Wuyangba Dalongtan Street 32 129 64 64 86 33 32.0 1.0 3.1% Group (II) Fenghuangl Hongmiao u 2948 12000 6012 5988 8026 3056 19.0 1.0 5.3% Garden Community Chengxian Liujiaoting gjie 143 581 289 292 344 132 13.0 0.9 6.9% Qing River Street Community Guanpo 54 219 109 110 130 50 12.0 0.9 7.5%

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Acquisition Arable land Existing proportion Town/ Total HHs Total Male Female Labor force Agricultural to be Subproject River Village Group arable land at the street population labor acquired group level Person Person Person Person mu mu % community Jinziba Longdong 111 450 270 180 350 315 198.0 2.5 1.3% Village Group Zhaojiaba Longdong Wuyangba 158 645 387 258 499 451 216.0 9.2 4.3% Group River Street Guihuayua Londong n 43 176 88 88 118 45 150.0 1.4 0.9% Garden Community Guihuayua Longdong Wuyangba Londong n 43 176 88 88 118 45 150.0 0.0 0.0% River Street Garden Community Guihuayua Yulong Wuyangba n 0 70 286 143 143 191 73 30.0 2.0 6.7% River Street Community Shahe 125 507 305 202 400 355 166.0 12.4 7.5% Shahe Wuyangba Jinziba Group River Street Village Badouqiu 90 365 256 109 284 256 172.0 12.4 7.2% Group Longjiawan Wuyangba Gengjiapin Changling 106 430 218 212 288 277 850.0 6.5 0.8% River Street g Group Group 6 86 350 240 110 240 80 150.0 0.8 0.5% Shuyuan Gaoqiao Liujiaoting Group 7 86 350 240 110 240 80 150.0 0.7 0.5% Community River Street Group 8 69 280 190 90 190 64 150.0 1.3 0.9% Chengxian 143 581 289 292 344 132 19.0 0.6 3.2%

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Acquisition Arable land Existing proportion Town/ Total HHs Total Male Female Labor force Agricultural to be Subproject River Village Group arable land at the street population labor acquired group level Person Person Person Person mu mu % River in Shahe River diretion South side of Longfeng Longfeng Xiaolongtan Zhakou Substation, 123 500 251 250 281 158 250.0 5.0 2.0% Town Village Group Daishui River 2,000m away from Longjiawan intersection in the upper Wuyangba Xiangjia reaches of Group 1 135 519 260 259 374 240 260.0 3.0 1.2% Street Village Shahe River in Shahe River direction Phase II, Longfeng Xiaolongtan Zhakou Hongmiao 123 500 251 250 281 158 250.0 0.0 0.0% WWTP Town Village Group WWTP Dashaba Liujiaoting Tanjiaba Dashaba 110 378 192 186 265 158 800.0 15.5 1.9%

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Acquisition Arable land Existing proportion Town/ Total HHs Total Male Female Labor force Agricultural to be Subproject River Village Group arable land at the street population labor acquired group level Person Person Person Person mu mu % WWTP Street Village Group Gaoqiao Liujiaoting Shuyuan River Pump Group 8 69 280 140 140 190 64 150.0 2.4 1.6% Street Community Station Total 9695 39329 20269 19165 24531 10775 12442 235.6 1.9%

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Appendix 7 Changes before and after Land Acquisition (AP level)

Average Before land Land After land Before land After land Before land After land AP Degree of acquisition acquisition acquisition acquisition acquisition subproject Village Group acquisition acquisition land loss

mu/HH mu/HH People mu mu mu mu/person mu/person % Cenjiaba 0.60 0.45 25.0% Sanlongba Group 2.45 1.83 41 24.5 6.2 18.3 Village Yijiaoba 0.65 0.49 Group 2.66 2.01 41 26.6 6.5 20.1 Chenjiawan 1.00 0.76 Shangyantang Group 4.07 3.11 20 20.4 4.8 15.6 Village Xiaohekou 0.81 0.62 Group 3.31 2.51 20 16.6 4.0 12.6 Zhangjialaowu 0.10 0.07 Enhanced flood Group 0.42 0.28 142 14.6 5.0 9.6 management Majiaping 0.22 0.17 Group 0.91 0.70 98 21.9 5.1 16.8 Longfeng Jinlongba 0.31 0.24 Village Group 1.25 0.97 65 20.0 4.5 15.5 Yamentai 0.31 0.24 Group 1.25 0.96 49 15.0 3.5 11.5 Gaojianba 0.31 0.24 Group 1.25 0.96 53 16.3 3.8 12.5 Liangshuijing Sanhe Village 0.96 0.74 22.9% Group 3.89 2.99 16 15.6 3.6 12.0

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mu/HH mu/HH People mu mu mu mu/person mu/person % Fangjiaya 1.19 0.90 Group 4.82 3.66 12 14.5 3.5 11.0 Community 2 of Jianshe 0.07 0.03 Longfeng Avenue 0.30 0.14 90 6.6 3.5 3.1 Community Shangshuiqia 0.07 0.05 o Community 0.30 0.20 142 10.5 3.5 7.0 Hetaogou 0.25 0.19 Group 1.02 0.79 81 20.4 4.5 15.8 Xiaolongtan Shiziping 0.38 0.30 Village Group 1.57 1.22 41 15.7 3.5 12.2 Dalongtan 0.64 0.51 Group 2.59 2.08 28 18.1 3.6 14.6 Zhaizi Group 2.35 1.78 24 14.1 3.4 10.7 0.58 0.44 Xiaolongtan Xiaolongtan 0.54 0.42 Village Group 2.19 1.70 28 15.3 3.4 11.9 Zhakou Group 2.04 1.61 41 20.4 4.3 16.1 0.50 0.39 Chayuanpian 0.31 0.20 group 1.25 0.83 41 12.5 4.2 8.3 Tangjiapo Longfeng 0.31 0.19 Group 1.25 0.79 41 12.5 4.6 7.9 Village Sashipo 0.31 0.22 Group 1.25 0.89 41 12.5 3.6 8.9 Jinlongba 1.25 0.93 37 11.3 2.9 8.4 0.31 0.23

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mu/HH mu/HH People mu mu mu mu/person mu/person % Group Gaojianba 0.31 0.23 Group 1.25 0.95 37 11.3 2.7 8.6 Yamentai 0.31 0.23 Group 1.25 0.95 37 11.3 2.7 8.6 Sanchahe 0.96 0.75 Group 3.89 3.06 12 11.7 2.5 9.2 Baimiaoqiao Sanhe Village 0.96 0.75 Group 3.89 3.06 12 11.7 2.5 9.2 Kuzhulin 0.96 0.74 Group 3.89 3.03 12 11.7 2.6 9.1 Xiaolongtan Hetaogou 0.25 0.19 Village Group 1.02 0.76 45 11.2 2.8 8.4 Shuijingwan 0.26 0.22 Group 1.04 0.91 16 4.2 0.5 3.7 Dalongtan Xiacunba 0.30 0.28 Village Group 1.24 1.14 12 3.7 0.3 3.4 Dalongtan 0.27 0.24 Group 1.11 0.99 16 4.4 0.5 3.9 Group 8 0.16 0.14 41 1.6 0.2 1.4 0.04 0.04

Group 5 0.06 0.06 Qifeng 0.24 0.23 49 2.9 0.2 2.7 Community Group 6 2.04 1.84 8 4.1 0.4 3.7 0.50 0.45 Group 7 4.07 3.67 4 4.1 0.4 3.7 1.00 0.90

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mu/HH mu/HH People mu mu mu mu/person mu/person % Group 4 1.31 1.31 8 2.6 0.0 2.6 0.32 0.32 Group 3 2.71 2.71 0 0.0 0.0 0.0 0.68 0.68 Group 2 1.07 0.92 8 2.1 0.3 1.8 0.26 0.23 Group 4 0.07 0.06 61 1.1 0.2 0.9 0.02 0.02 Agricultural Daguanyuan Sciences Community Research Institute 0.20 0 0.0 0.0 0.0 Hongmiao 0.25 0.17 Group 1.01 0.68 49 12.2 4.0 8.2 Fengxiangpin Sancaoba 0.25 0.18 g Village Group 1.01 0.73 61 15.2 4.2 11.0 Dalongtan 0.25 0.18 Group (II) 1.01 0.72 49 12.2 3.5 8.7 Fenghuanglu Hongmiao 0.10 0.00 Community Garden 0.40 0.00 16 1.6 1.2 0.0 Chengxiangjie 0.02 0.02 Community 0.09 0.08 163 3.6 0.3 3.3 Guanpo 0.05 0.05 community 0.22 0.21 77 4.2 0.3 3.9 Longdong 0.44 0.33 Group 1.79 1.34 41 17.9 4.5 13.4 Jinziba Village Zhaojiaba 0.33 0.22 Group 1.36 0.88 77 25.9 9.2 16.7

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mu/HH mu/HH People mu mu mu mu/person mu/person % Guihuayuan Londong 0.85 0.68 Community Garden 3.47 2.77 8 6.9 1.4 5.5 Guihuayuan Londong

Community Garden 3.47 16 13.9 0.0 13.9 Guihuayuan 0.10 0.07 Community 0.43 0.30 98 10.2 3.0 7.2 Shahe Group 1.33 0.79 94 30.6 12.4 18.2 0.33 0.19 Jinziba Village Badouqiu 0.47 0.36 Group 1.92 1.48 114 53.7 12.4 41.3 Changling Gengjiaping 1.98 1.52 Group 8.05 6.17 16 32.2 7.5 24.7 Group 6 1.74 1.34 8 3.5 0.8 2.7 0.43 0.33 Shuyuan Group 7 1.74 1.29 8 3.5 0.9 2.6 0.43 0.32 Community Group 8 2.18 1.73 8 4.4 0.9 3.5 0.54 0.43 Chengxiangjie 0.03 0.02 Community 0.13 0.08 73 2.4 0.9 1.5 Toudaoshui Group 1 0.50 0.44 Village 2.04 1.81 16 8.1 0.9 7.2 Shuyuan Group 2 0.40 0.35 Community 1.63 1.43 16 6.5 0.8 5.7 Xiangjia Qingshuli 0.50 0.39 Village Group 1.93 1.49 38 19.3 4.4 14.9 Ancillary facilities Gengjiaping Changling 1.98 1.53 Village Group 8.05 6.22 41 80.5 18.3 62.2

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mu/HH mu/HH People mu mu mu mu/person mu/person % Xiaolongtan Zhakou Group 0.50 0.39 Village 2.04 1.58 45 22.4 5.0 17.4 Xiangjia Group 1 0.50 0.24 Village 1.93 0.93 12 5.8 3.0 2.8 Xiaolongtan Zhakou Group 0.60 0.46 Village 2.04 0 17.2 4.2 13.0 Tanjiaba Dashaba WWTP 2.12 1.82 14.2% Village Group 7.27 6.24 52 109.1 15.5 93.6 Shuyuan Group 8 0.54 0.42 Community 2.17 1.69 20 10.9 2.4 8.5 Total 1.29 0.94 2788 992.0 232.0 760.0 0.36 0.27 25.0%

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Appendix 8 Calculation of Income Loss of APs Caused by Land Acquisition Loss

Average Number Average Average Agricultural Arable land per capita of Acquired Income per capita income AP before subproj agricultural affected arable land loss ratio Village Group income proportion acquisition ect income HHs (AP level) yuan/ yuan/ HH People mu mu % person person

Sanlongba Cenjiaba Group 3700 1,761 0.476 10 41 24.51 6.2 12.04 Village Yijiaoba Group 3700 1,761 0.476 10 41 26.62 6.5 11.62 Shangyantang Chenjiawan Group 3850 1,833 0.476 5 20 20.35 4.8 11.23 Village Xiaohekou Group 3850 1,833 0.476 5 20 16.56 4.0 11.49 Zhangjialaowu Group 4030 500 0.124 35 142 14.64 5.0 4.23 Enhanc Majiaping Group 4030 500 0.124 24 98 21.94 5.1 2.88 ed flood Longfeng Jinlongba Group 4030 500 0.124 16 65 20.03 4.5 2.79 manage Village ment Yamentai Group 4030 500 0.124 12 49 15.02 3.5 2.89 Gaojianba Group 4030 500 0.124 13 53 16.27 3.8 2.90 Liangshuijing Group 3000 999 0.333 4 16 15.57 3.6 7.70 Sanhe Village Fangjiaya Group 3000 999 0.333 3 12 14.47 3.5 8.05 Longfeng Community 2 of 4500 675 0.150 22 90 6.58 3.5 7.97 Community Jianshe Avenue

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Average Number Average Average Agricultural Arable land subproj per capita of Acquired Income Village Group per capita income AP before ect agricultural affected arable land loss ratio income proportion acquisition income HHs (AP level) Shangshuiqiao 4500 675 0.150 35 142 10.47 3.5 5.01 Community Hetaogou Group 3800 1,809 0.476 20 81 20.35 4.5 10.55 Xiaolongtan Shiziping Group 3800 1,809 0.476 10 41 15.65 3.5 10.54 Village Dalongtan Group 3800 1,809 0.476 7 28 18.13 3.6 9.39 Xiaolongtan Zhaizi Group 3800 1,809 0.476 6 24 14.09 3.4 11.52 Village Xiaolongtan Group 3800 1,809 0.476 7 28 15.34 3.4 10.58 Zhakou Group 3800 1,809 0.476 10 41 20.35 4.3 10.06

Chayuanpian group 4030 1,918 0.476 10 41 12.52 4.2 15.97 Tangjiapo Group 4030 1,918 0.476 10 41 12.52 4.6 17.49 Longfeng Sashipo Group 4030 1,918 0.476 10 41 12.52 3.6 13.69 Village Jinlongba Group 4030 1,918 0.476 9 37 11.27 2.9 12.25 Gaojianba Group 4030 1,918 0.476 9 37 11.27 2.7 11.41 Yamentai Group 4030 1,918 0.476 9 37 11.27 2.7 11.41 Sanchahe Group 3600 1,714 0.476 3 12 11.68 2.5 10.19 Sanhe Village Baimiaoqiao Group 1800 857 0.476 3 12 11.68 2.5 10.19 Kuzhulin Group 1500 714 0.476 3 12 11.68 2.6 10.60 Xiaolongtan Hetaogou Group 3800 1,809 0.476 11 45 11.19 2.8 11.91 Village Dalongtan Shuijingwan Group 4660 2,218 0.476 4 16 4.16 0.5 5.73 Village Xiacunba Group 4660 2,218 0.476 3 12 3.72 0.3 3.84

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Average Number Average Average Agricultural Arable land subproj per capita of Acquired Income Village Group per capita income AP before ect agricultural affected arable land loss ratio income proportion acquisition income HHs (AP level) Dalongtan Group 4660 2,218 0.476 4 16 4.44 0.5 5.36 Group 8 4500 225 0.050 10 41 1.63 0.2 0.61 Group 5 4500 225 0.050 12 49 2.93 0.2 0.34 Group 6 4500 225 0.050 2 8 4.07 0.4 0.49 Qifeng Group 7 4500 225 0.050 1 4 4.07 0.4 0.49 Community Group 4 4500 225 0.050 2 8 2.63 0.0 0.00 Group 3 4500 225 0.050 0 0 0.00 0.0 0.00 Group 2 4500 225 0.050 2 8 2.14 0.3 0.70 Group 4 4500 225 0.050 15 61 1.12 0.2 0.89 Daguanyuan Agricultural Sciences Community 4500 225 0.050 0 0 0.00 0.3 0.00 Research Institute Hongmiao Group 4510 1,353 0.300 12 49 12.15 4.0 9.88 Fengxiangping Sancaoba Group 4510 1,353 0.300 15 61 15.19 4.2 8.30 Village Dalongtan Group (II) 4510 1,353 0.300 12 49 12.15 3.5 8.64 Fenghuanglu Hongmiao Garden 4510 451 0.100 4 16 1.60 1.2 7.50 Community Chengxiangjie 7500 750 0.100 40 163 3.64 0.3 0.82 Community Guanpo 7500 750 0.100 19 77 4.24 0.3 0.71 community Jinziba Village Longdong Group 4953 2,358 0.476 10 41 17.91 4.5 11.96

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Average Number Average Average Agricultural Arable land subproj per capita of Acquired Income Village Group per capita income AP before ect agricultural affected arable land loss ratio income proportion acquisition income HHs (AP level) Zhaojiaba Group 5008 2,384 0.476 19 77 25.90 9.2 16.91 Guihuayuan Londong Garden 8000 1,200 0.150 2 8 6.94 1.4 3.03 Community Guihuayuan Londong Garden 8000 1,200 0.150 4 16 13.88 3.3 3.57 Community Guihuayuan 8000 1,200 0.150 24 98 10.25 3.0 4.39 Community Shahe Group 5010 2,385 0.476 23 94 30.65 12.4 19.26 Jinziba Village Badouqiu Group 4978 2,370 0.476 28 114 53.70 12.4 10.99 Gengjiaping Changling Group 3900 1,856 0.476 4 16 32.18 7.5 11.09

Group 6 3800 570 0.150 2 8 3.49 0.8 3.44 Shuyuan Community Group 7 3800 570 0.150 2 8 3.49 0.9 3.87 Group 8 3800 570 0.150 2 8 4.36 0.9 3.10 Chengxiangjie 7500 1,125 0.150 18 73 2.40 0.9 5.63 Community Toudaoshui Group 1 4200 840 0.200 4 16 8.14 0.9 2.21 Village Shuyuan Group 2 3800 760 0.200 4 16 6.51 0.8 2.46 Community Ancillar Xiangjia Village Qingshuli Group 4149 830 0.200 10 38 19.26 4.4 4.57 y Gengjiaping Changling Group 4200 840 0.200 10 41 80.45 18.3 4.55

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Average Number Average Average Agricultural Arable land subproj per capita of Acquired Income Village Group per capita income AP before ect agricultural affected arable land loss ratio income proportion acquisition income HHs (AP level) facilities Village Xiaolongtan Zhakou Group 3800 722 0.190 11 45 22.39 5.0 4.24 Village Xiangjia Village Group 1 4149 788 0.190 3 12 5.78 3.0 9.87 Xiaolongtan Zhakou Group 3800 1,809 0.476 0 0 17.16 0.0 11.60 Village WWTP Tanjiaba Village Dashaba Group 4000 800 0.200 15 52 109.09 15.5 2.84 Shuyuan Group 8 3800 1,809 0.476 5 20 10.87 2.4 10.55 Community Total 688 2788 992.03 235.6

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Appendix 9 Analysis for Risk-Free Income following the Compensation for Land

Annual Annual Expropriated Compensa- Annual Income Income Village Village group farmland tion Interest Loss (1) gain mu yuan yuan yuan yuan Chenjiaba Sanlong 6.20 4594 205530 6680 2086 Village group ba Yijiaoba Village 6.50 4817 215475 7003 2186 Village group Liujiawan Shuang 4.80 3557 159120 5171 1615 Village group yantang Xiaohekou Village 4.00 2964 132600 4310 1346 Village group Zhangjialaowu 5.00 3705 165750 5387 1682 Village group Majiaping 5.10 3779 169065 5495 1716 Village group Longfen Jinlongba g 4.50 3335 149175 4848 1514 Village group Village Yamentai 3.50 2594 116025 3771 1177 Village group Gaojianba 3.80 2816 125970 4094 1278 Village group Ecological Liangshuijing 3.60 2668 119340 3879 1211 Rehabilitati Sanhe Village group on Work Village Fangjiaya 3.50 2594 116025 3771 1177 Village group 2nd Residential Area of Longfen 3.50 2594 116025 3771 1177 Jianshe g Avenue Commu Xiangshuiqiao nity Residential 3.50 2594 116025 3771 1177 Area Hetaogou 4.51 3342 149507 4859 1517 Village group Xiaolon Shiziping gtan 3.47 2568 114865 3733 1166 Village group Village Dalongtan 3.58 2649 118511 3852 1203 Village group Zhaizi Village Xiaolon 3.41 2527 113042 3674 1147 group gtan Xiaolongtan Village 3.41 2527 113042 3674 1147 Village group 174

Annual Annual Expropriated Compensa- Annual Income Income Village Village group farmland tion Interest Loss (1) gain mu yuan yuan yuan yuan Zhakou Village 4.30 3186 142545 4633 1446 group Chayuanpian 4.20 3112 139230 4525 1413 Village group Tangjiapo 4.60 3409 152490 4956 1547 Village group Sashipo Longfen 3.60 2668 119340 3879 1211 Village group g Jinlongba Village 2.90 2149 96135 3124 975 Village group Gaojianba 2.70 2001 89505 2909 908 Village group Yamentai 2.70 2001 89505 2909 908 Village group Sanchahe 2.50 1853 82875 2693 841 Village group Sanhe Baimiaoqiao 2.50 1853 82875 2693 841 Village Village group Kuzhulin 2.60 1927 86190 2801 875 Village group Xiaolon Hetaogou gtan 2.80 2075 92820 3017 942 Village group Village Shuijingwan 0.50 371 16575 539 168 Village group Dalongt Xiacunba an 0.30 222 9945 323 101 Village group Village Dalongtan 0.50 371 16575 539 168 Village group Village group 8 0.20 148 6630 215 67 Village group 5 0.20 148 6630 215 67

Qifeng Village group 6 0.40 296 13260 431 135 Commu Village group 7 0.40 296 13260 431 135 nity Village group 4 0.00 0 0 0 0 Village group 3 0.00 0 0 0 0 Village group 2 0.30 222 9945 323 101 Daguan Village group 4 0.20 148 6630 215 67 yuan Institute of Commu Agricultural 0.30 222 9945 323 101 nity Sciences Hongmiao Fengxia 4.00 2964 132600 4310 1346 Village group ngping Sancaoba Village 4.20 3112 139230 4525 1413 Village group

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Annual Annual Expropriated Compensa- Annual Income Income Village Village group farmland tion Interest Loss (1) gain mu yuan yuan yuan yuan Dalongtan Village group 3.50 2594 116025 3771 1177 (No. 2) Fenghu Hongmiao anglu Residential 1.20 889 39780 1293 404 Commu Area nity Chengxi angjie 0 0.30 222 9945 323 101 Commu nity Guanpo Commu 0 0.30 222 9945 323 101 nity Longdong 4.50 3335 149175 4848 1514 Jinziba Village group Village Zhaojiaba 9.20 6817 304980 9912 3095 Village group Guihua Longdong yuan Residential 1.40 1037 46410 1508 471 Commu Area nity Guihua Longdong yuan Residential 3.30 2445 109395 3555 1110 Commu Area nity Guihua yuan 0 3.00 2223 99450 3232 1009 Commu nity Shahe Village 12.40 9188 411060 13359 4171 Jinziba group Village Badouqiu 12.40 9188 411060 13359 4171 Village group Gengjia Changling 7.50 5558 248625 8080 2523 ping Village group Shuyua Village group 6 0.80 593 26520 862 269 n Village group 7 0.90 667 29835 970 303 Commu Village group 8 0.90 667 29835 970 303 nity Chengxi angjie 0 0.90 667 29835 970 303 Commu nity

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Annual Annual Expropriated Compensa- Annual Income Income Village Village group farmland tion Interest Loss (1) gain mu yuan yuan yuan yuan Toudao shui Village group 1 0.90 667 29835 970 303 Village Shuyua n Village group 2 0.80 593 26520 862 269 Commu nity Xiangjia Qingshuli 4.40 3260 145860 4740 1480 Village Village group Gengjia Changling ping 18.30 13560 606645 19716 6156 Village group Ancillary Village facilities Xiaolon Zhakou Village gtan 5.00 3705 165750 5387 1682 group Village Xiangjia Village group 1 3.00 2223 99450 3232 1009 Village Xiaolon Zhakou Village gtan 0.00 0 0 0 0 group Village Tanjiab Dashaba a 15.50 11486 513825 16699 5214 WWTP Village group Village Shuyua n Village group 8 2.41 1786 79888 2596 811 Commu nity Total 235.58 174565 7809474 253808 79243 Note: (1) assumes average annual net income from cropping is 740 yuan/mu.

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Appendix 10 Replacement Price of rural housing7

Brick-concrete structure – Brick- wood structure – one story one storey Unit Unit price Category Area, m2 185.11 Area, m2 119.7

Used m2 RMB Used quantity Investment Investment quantity Manpower Workday 140 180 25200 110 15400 Ordinary ton 2570 6.932 17815.24 0 0 rebar Ordinary ton 270 44.64 12052.8 25.3 6831 cement Red brick made of m3 390 85.643 33400.77 54.81152 21376.49 clay Others 23000 17000

Total 111468.8 60607.49

RMB/square Unit price 602.18 506.33 meter

7 The estimated replacement price is provided by Enshi City Construction Bureau. 178

Appendix 11 Basic information of households to be relocated

Sub- Affected Person Brick-concrete, Resettlement HH Female Han Tujia Miao projects village number unit:m2 site a1 6 3 6 0 0 560 Xiaolongtan a2 5 4 5 0 0 640 Xiaolongtan Hongmi Zhakou a3 5 1 5 0 0 240 Xiaolongtan ao Sub-t 16 8 16 0 0 1440 otal b1 4 2 4 0 0 336 Miaowang b2 5 3 5 0 0 230 Miaowang b3 4 3 0 4 0 247 Miaowang b4 4 3 0 4 0 350 Miaowang b5 5 2 5 0 0 370 Miaowang b6 3 1 3 0 0 245 Miaowang b7 3 2 3 0 0 350 Miaowang b8 3 2 3 0 0 210 Miaowang Dashab b9 2 1 2 0 0 340 Miaowang Dashaba a b10 4 2 4 0 0 450 Miaowang b11 3 1 3 0 0 340 Miaowang b12 4 2 4 0 0 240 Miaowang b13 4 2 4 0 0 350 Miaowang b14 3 1 3 0 0 330 Miaowang b15 5 3 0 5 0 330 Miaowang b16 8 5 8 0 0 320 Miaowang Sub-t 64 35 51 13 0 5038 otal Total 19 80 43 67 13 0 6478 80

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Appendix 11 OUTLINE OF EXTERNAL MONITOR AND EVALUATION

1. Objective of external monitoring

The external monitoring and evaluation (M&E) is the evaluation on resettlement that is provided by an organization independent of any government department or entity involved with RP preparation. Its objective is to check activities of RP in a wide and prospective viewpoint, evaluating whether the objectives of land acquisition, resettlement and resettlement are achieved, providing evaluation comments and suggestions, taking corrective measures and follow-up actions to guarantee the results of resettlement. The external monitoring is used to follow up the activities of land acquisition and house demolition and resettlement so as to monitor and evaluate whether the demolition and resettlement: (1) Abide by relevant national laws and regulations on resettlement; (2) Abide by ADB's policy requirements on involuntary resettlement; (3) Enhance, or at least restore, the livelihoods of all displaced persons in real terms relative to pre-project levelst.

2. External monitoring agency and monitoring personnel

Enshi City ADB Loan Project Leading Group Office will select an experienced resettlement monitoring organization for independent monitoring on resettlement of the project. The staff in the external monitoring agency shall have the following capabilities: (1) All personnel involved in external monitoring shall have participated in similar work, experience about social and economic survey, better understanding on ADB's policy on involuntary resettlement, as well as relevant national and local policies and laws on resettlement. (2) Independent capability of social survey, good communication and exchange capability, diligent and hardworking. (3) A percentage of women are involved in external monitoring.

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3. Responsibilities of external monitoring agency

The external monitoring agency will undertake the following activities: (1) The baseline survey of incomes and living conditions is executed before resettlement activity to grasp basic situations on production and living of affected persons; (2) The implementation of resettlement activities are followed up and monitored during resettlement. The comments and complaints of affected persons are collected and reported to the resettlement department of foreign affairs office and local resettlement office, and the monitoring report is submitted to the resettlement department of foreign affairs office and ADB; (3) The change in production and living level of affected persons is followed up and surveyed, the resettlement activities and measures are evaluated; (4) Based on survey and full consultation with affected persons, constructive suggestions are proposed to the resettlement department and local resettlement office to ensure that the production and living level of affected persons is smoothly and timely restored.

4. External monitoring method and procedure

The following means are used by the external monitoring agency for resettlement: (1) The database of affected persons is established and family interviews are regularly organized based on the resettlement survey. The external monitoring agency fully utilizes the social and economic survey documents and the information management system established by the project management office to execute dynamic management on the basic information of relocated HHs, grasp situations of the APs at any time. The information reflected by the database is also used in the face-to-face interview for affected HH to better understand the progress of resettlement, listen to their complaints, dissatisfaction and suggestions, and publicize relevant national policies, ADB's relevant requirements and construction information. The household interview is independently organized by the external monitoring agency, when the list of affected persons and relevant information are acquired from grass-roots organization, the personnel in local resettlement organization or local administration are not accompanied. During household interview by the external monitoring agency, the interviewers are relatively fixed, in other words, one interviewer visits the same affected area for several times, in this way, mutual trust can be established between the interviewer and affected persons and such makes for the work. 181

(2) In the area with densely-populated affected persons, discussions are irregularly organized. The external monitoring agency will organize discussions in the populated area to listen to their comments on the major issue of the project. These discussions can be either informal or formal; the personnel in grass-roots resettlement organization can be invited or not depending on actual conditions. (3) Field survey. The personnel in external monitoring agency will visit the resettlement sites of APs in a regular and irregular manner to know the resettlement conditions of APs. (4) Case study. Some prominent cases are studied and analyzed during resettlement. The cause of problem is analyzed to find out the solution and propose consultative opinions. (5) Questionnaire. The sampling survey is executed and the results are analyzed for the restoration situations of living and production for APs as well as their comments on resettlement. All problems are solved and provide reference for resettlement in the next year.

5. Main contents of external monitoring and evaluation

(1) Resettlement monitoring for relocated HHs The project involves demolition and relocation of houses in urban and rural area. Hence, the resettlement of some affected persons is a main monitoring point for external monitoring agency. The major monitoring indicators that are used by external monitoring agency for these affected persons include: The compensation prices of houses and other items attached to the land are confirmed according to the cost of replacement; The compensation is properly and sufficiently transferred and funded; The construction and allocation of compensated resettlement houses; Whether the resettlement schedule is reasonable; Whether the transition expense and relocation expense are paid; Whether the compensation is discounted; Whether the infrastructure at new resettlement point, including water supply, power supply, heating, roads, etc. are complete; who is responsible to provide these conditions. Whether the hospital, school, etc. are easily accessible to new resettlement sites. (2) Monitoring for land acquisition Based on the characteristics of land acquisition in the project, the monitoring for land acquisition by the external monitoring agency mainly focuses on the followings:

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Whether the compensation standards of land acquisition are in accordance with relevant national laws and the RP, to ensure APs are no worse off; Whether the land compensation cost is transferred to make sure that the affected village can be fully funded; Whether the amount of land acquisition, compensation standards, compensation amount are publicized in the village, what form of publicity is used; Whether there is clear and practical plan for the usage of land compensation; Whether the comments from affected villagers are collected when confirming the usage plan of land compensation, how is the usage plan finalized; How is the benefit of land compensation distributed, how to protect the actual economic benefit of the affected labor. (3) Monitoring for operation of resettlement organization A capable, professional and efficient resettlement organization is the reliable assurance for resettlement of the project. The monitoring on resettlement organization is also an important item by external monitoring agency. The monitoring on resettlement organization is mainly by means of field visit, review on work documents and records, mainly including: Whether the personnel in resettlement organizations at all levels are sufficiently to meet resettlement demands; Whether necessary working conditions are provided in resettlement organizations at all levels; Whether the personnel in resettlement organizations at all levels are competent for their work; Training for personnel in resettlement organizations; Identification, documentation and handling of grievances; Documentation management in resettlement organizations. (4) Monitoring for resettlement of vulnerable groups The social vulnerable group is a special group that needs care by the resettlement organization, as well as an object is especially monitored by external monitoring agency during monitoring. By means of interview, questionnaire, case analysis, the external monitoring agency follows up and monitors the vulnerable groups of the project mainly in terms of the following indicators: What preferential policy can be enjoyed by the vulnerable groups during resettlement; What help can be provided for poor families during HH demolition and relocation; Whether the special demands of affected women are fully considered in the resettlement measures; Whether the vulnerable groups, especially women, can win relevant job opportunity

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related to the project, how many vulnerable people are employed for the construction of the project; Whether there is a female staff who is assigned to handle women affairs in the resettlement organization. (5) Baseline survey of affected persons Before initial commencement of resettlement, the external monitoring agency will establish resettlement baseline archives for the Project based on sampling survey. The structured questionnaire is used during sampling survey. All affected HHs involved in social and economic survey during preparations are taken as a sample database for categorized sampling. The sampling ratio for baseline is 10% of HHs affected by land acquisition (focusing on those with significant land loss) and 25% of HHs to be relocated. Both the male and female adults should be interviewed, separately. The baseline survey for affected HH mainly includes: family size, production and operation, building area of house, annual HH income, employment/income structure, production expenditures, annual HH expenditures by type, traffic conditions, water supply conditions, power supply conditions, dwelling environment, subjective evaluation on production and living situations, etc. (6) Monitoring and evaluation for result of resettlement After the resettlement is complete, the external monitoring agency will continue to follow up and monitor the result of resettlement semi-annually. As for affected HH, the external monitoring agency executes follow-up survey half a year after resettlement. The follow-up survey is similar to the baseline household survey as it also employs questionnaire to reflect the impacts of resettlement on the object's living and production and evaluate the result of resettlement. The contents of follow-up survey are connected with those in the baseline survey to facilitate comparative analysis on change in family life and production of the affected HH before and after resettlement. Also, the affected persons are asked for their subjective comments on resettlement as reference to evaluate the result of resettlement.

6. Reporting system for external monitoring

The external monitoring agency prepares the external monitoring report based on the data during observation and investigation. The objectives mainly include: (i) to objectively report the progress and problem of resettlement to ADB and the project management office; and (ii) to evaluate the social and economic result of resettlement,

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propose constructive comments and suggestions and improve and correct resettlement. The reporting cycle for the external monitoring agency to ADB and the project management office is: Submit the baseline survey report on living baseline of the affected persons during initial stage of the project. Submit the external monitoring report once half a year, respectively before March 31 and August 31 every year. Submit a comprehensive evaluation report for resettlement after the all resettlement activities are completed. Submit an intermediate monitoring report about resettlement in the first half year to ADB and the project management office before August 31 every year; Submit two annual evaluation reports to ADB and the project management office before March 31 every year; Submit a comprehensive post-evaluation report about resettlement half a year after all resettlement activities are completed. The regular monitoring report shall at least contain the following: (1) Monitored object of the report; (2) Progress of resettlement; (3) Main discoveries of the monitoring organization; (4) Main existing problems; (5) Basic evaluation comments and suggestions of the external monitoring agency. The external monitoring agency's report will be written and submitted to the Project management office in Chinese for review and to take follow-up actions on any recommendations. In addition, the report is required to be circulated among relevant personnel in the resettlement office, collect their comments and communicate about the contents and form of the report before formal submission. The PMO will submit to ADB both the Chinese and English versions, as well as any comments, clarifications and proposed follow-up actions. The monitoring reports will be uploaded to ADB website. The PMO will also disclose the monitoring reports to affected households.

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Table 1 External Monitoring Evaluation Report

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