46063-002: Tacheng City Infrastructures and Municipal

Resettlement Plan

December 2014

PRC: Xinjiang Tacheng Border Cities and Counties Development Project

Prepared by Tacheng City ADB Project Management Office for the Asian Development Bank.

CURRENCY EQUIVALENTS (as of 28 December 2014)

Currency unit – Yuan (CNY) CNY1.00 = $0.163 $1.00 = CNY6.149

ABBREVIATIONS

ADB – Asian Development Bank AH – affected households AP – affected persons DMS – detailed measurement survey EA – executing agency EMDP – ethnic minority development plan FSR – feasibility study report HD – house demolition HH – households IA – implementing agency LA – land acquisition LAR – land acquisition and resettlement PMO – project management office RP – resettlement plan TCG – Tacheng City Government XUAR – Xinjiang Uygur Autonomous Region

WEIGHTS AND MEASURES

ha – hectare km – kilometer mu – Chinese unit of measurement (1mu=666.67 m2)

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.

ADB-financed Xinjiang Tacheng Border Cities and Counties Development Project

Tacheng City Infrastructures and Municipal Services Component

Resettlement Plan

Tacheng City ADB Project Management Office December 2014

Table of Contents

EXECUTIVE SUMMARY ...... 2 1. OVERVIEW ...... 5 1.1. INTRODUCTION ...... 5 1.2. IMPACT SCOPE OF LAND ACQUISITION AND RESETTLEMENT ...... 6 1.3. OPTIMIZING PROJECT DESIGN TO REDUCE RESETTLEMENT IMPACTS...... 8 2. IMPACT SCOPE ...... 10 2.1. TYPES OF IMPACTS ...... 10 2.2. METHODOLOGY AND PROCEDURES ...... 10 2.3. IMPACT IDENTIFICATION ...... 10 2.4. LOSS OF COLLECTIVE LAND ...... 17 2.5. IMPACTS OF STATE-OWNED LAND ACQUISITION ...... 18 2.6. IMPACTS OF TEMPORARY LAND ACQUISITION ...... 19 2.7. IMPACTS OF HOUSE DEMOLITION ...... 19 2.8. IMPACTS OF SMALL SHOPS ...... 20 2.9. IMPACTS OF ENTERPRISES AND PUBLIC INSTITUTIONS ...... 21 2.10. AFFECTED VULNERABLE GROUPS ...... 25 2.11. AFFECTED ETHNIC MINORITIES ...... 26 2.12. AFFECTED ATTACHMENTS AND INFRASTRUCTURE ...... 26 3. SOCIOECONOMIC PROFILE OF AFFECTED AREAS ...... 28 3.1. SOCIOECONOMIC STATUS ...... 28 3.2. SOCIOECONOMIC PROFILE OF AFFECTED PEOPLE ...... 29 3.3. GENDER ANALYSIS ...... 35 4. LEGAL FRAMEWORK AND POLICIES ...... 38 4.1. LAWS REGULATIONS AND POLICIES APPLICABLE TO RESETTLEMENT ...... 38 4.2. ADB’S POLICY REQUIREMENT ON INVOLUNTARY RESETTLEMENT ...... 38 4.3. DIFFERENCES BETWEEN ADB AND PRC POLICIES ...... 40 4.4. ELIGIBILITY AND BENEFICIARIES ...... 41 4.5. COMPENSATION RATES ...... 41 4.6. ENTITLEMENT MATRIX ...... 50 5. RESETTLEMENT MEASURES ...... 59 5.1. OBJECTIVES OF RESETTLEMENT ...... 59 5.2. PRINCIPLES FOR RESETTLEMENT RECOVERY PLAN ...... 59 5.3. THE ACQUISITION STATE (LAND) RECOVERY PLAN ...... 59 5.4. SUMMARY OF RESTORATION PROGRAM FOR ACQUISITION OF CULTIVATED LAND ...... 60 5.5. RESETTLEMENT PROGRAM FOR DISPLACED HOUSEHOLDS ...... 63 5.6. SHOP RESETTLEMENT PROGRAMMES AND RECOVERY PLAN ...... 67 5.7. RESTORATION PROGRAM FOR ENTERPRISES ...... 67 5.8. TRAINING ...... 68 5.9. SUPPORTING PROGRAM FOR VULNERABLE GROUPS ...... 69 5.10. PROTECTION OF WOMEN’S RIGHTS ...... 70 5.11. ETHNIC MINORITY DEVELOPMENT ...... 70 5.12. RESTORATION OF INFRASTRUCTURE AND GROUND ATTACHMENTS ...... 70 6. PUBLIC PARTICIPATION AND GRIEVANCE REDRESS ...... 71 6.1. CONSULTATION AT PREPARATION STAGE ...... 71 6.2. PUBLIC PARTICIPATION AND CONSULTATION PLAN ...... 75 6.3. APPEAL PROCEDURE...... 76 6.4. APPEAL CONTACT INFORMATION ...... 77 7. RESETTLEMENT BUDGET ...... 79 7.1. RESETTLEMENT BUDGET ...... 79 7.2. ANNUAL INVESTMENT PLAN ...... 86 7.3. DISBURSEMENT FLOW AND PLAN OF RESETTLEMENT FUNDS ...... 86 8. ORGANIZATIONAL STRUCTURE AND RESPONSIBILITIES ...... 88

8.1. RESETTLEMENT ACTION AGENCIES ...... 88 8.2. ORGANIZATIONAL CHART ...... 89 8.3. ORGANIZATIONAL QUALIFICATIONS AND STAFFING ...... 89 8.4. DIVISION OF RESPONSIBILITIES AMONG AGENCIES ...... 90 8.5. MEASURES TO STRENGTHEN INSTITUTIONAL CAPACITY...... 91 9. RESETTLEMENT IMPLEMENTATION SCHEDULE ...... 93 9.1. WORK BEFORE RESETTLEMENT IMPLEMENTATION ...... 93 9.2. WORK DURING RESETTLEMENT IMPLEMENTATION ...... 93 9.3. WORK AFTER RESETTLEMENT IMPLEMENTATION ...... 94 10. MONITORING AND EVALUATION ...... 97 10.1. INTERNAL MONITORING ...... 97 10.2. EXTERNAL MONITORING ...... 98 APPENDIX 1: APPLICABLE LAWS, REGULATIONS AND POLICIES ...... 101 APPENDIX 2: RESETTLEMENT INFORMATION BOOKLET (RIB)...... 116 APPENDIX 3 TERMS OF REFERENCE FOR EXTERNAL MONITORING AND EVALUATION134 APPENDIX 4: MINUTES OF PUBLIC PARTICIPATION AND INTERVIEW ...... 137 APPENDIX 5: DUE DILIGENCE REPORT ON LAND ACQUISITION AND RESETTLEMENT OF A COMBINED HEAT AND POWER PLANT………………………………………………………….…136

List of Tables

Table 1-1: Project Composation ...... 5 Table 1-2: Summary of Project Land Acquisition and Resettlement Impacts ...... 7 Table 1-3: Comparison of the Affected Area before and after Design Optimization ...... 9 Table 2-1: Detail Impact Scope ...... 15 Table 2-2: Land Loss Analysis ...... 17 Table 2-3: Land Loss Rate analysis ...... 17 Table 2-4: State-owned Land Occupation ...... 18 Table 2-5: Land Loss Rate Analysis in Yuanyichang ...... 19 Table 2-6: Affected House Demolition ...... 20 Table 2-7: Impacts of Small Shops ...... 20 Table 2-8： Operations Status of Affected Shops ...... 21 Table 2-9: Impacts of Enterprises and Public Institutions ...... 22 Table 2-10: Business Operation Status of Affected Enterprises and Institutions ...... 23 Table 2-11: Affected Vulnerable Households ...... 25 Table 2-12: Nationality and Distribution of Affected Minority People ...... 26 Table 2-13: Affected Attachments and Infrastructure ...... 26 Table 3-1: Demographic Profile of Suveyed Households ...... 29 Table 3-2: Housing Condtions of Affected Households ...... 33 Table 3-3: Farmland Area of Affected Households ...... 33 Table 3-4: Selected Households Assets of Affected Households ...... 33 Table 3-5: Economic Statistics of the Sample Households in 2012 ...... 34 Table 3-6: Average Household Income Sources of Affected Households in 2012 ...... 34 Table 3-7: Average Household Expenditure Pattern of Affected Households in 2012 ...... 34 Table 3-8: Income Difference of Male and Female Laborers in 2012 ...... 36 Table 3-9: Construction of Women’s Income to Household in 2012 ...... 37 Table 4-1: Standards of Compensation for Arable Land in Tacheng City: ...... 42 Table 4-2: Unified Annual Output Values of Collective Land ...... 42 Table 4-3: Times of Basic Compensation Rates ...... 42 Table 4-4: Compensation Standards of State-owned Cultivated Land ...... 43 Table 4-5: Compensation Standards of Collective Cultivated Land ...... 44 Table 4-6: Compensation Rate for State-owned Woodland ...... 45 Table 4-7: Forest Vegetation Restoration Fees ...... 45 Table 4-8: Compensation Standard of Residential House Demolition ...... 46

Table 4-9: Compensation Standard for Public Institution ...... 47 Table 4-10: Compensation Rates for Commercial Stores ...... 48 Table 4-11: Compensation Rates for Attachment and Facilities ...... 49 Table 4-12: Entitlement Matrix ...... 50 Table 5-1: The Number of Jobs to Be Generated from the Project ...... 62 Table 5-2: Commercial house price of Tacheng city in 2013 ...... 64 Table 5-3 Resettlement willing for enterprises ...... 68 Table 5-4 Arrangements for Training ...... 69 Table 6-1: Public Participation Activities during Project Preparation Stage ...... 72 Table 6-2: Public Opinion Survey Results ...... 74 Table 6-3: Public Participation Plan ...... 75 Table 7-1: Resettlement Cost Estimates ...... 80 Table 7-2: Resettlement Budget Plan ...... 86 Table 9-1: Project Implementation Schedule ...... 95 Table 9-2: Resettlement Implementation Schedule ...... 95 Table 10-1: Progress Report on Resettlement for LA and HD...... 98 Table 10-2: Progress of Fund Utilization ...... 98 Table 10-3:Reporting Schedule of External Resettlement M&E ...... 100

List of Figures

Figure 3-1 Age distribution of Affcted People ...... 31 Figure 3-2 Education Lever Distribution of Affected People ...... 32 Figure 3-3 Occupation Distribution of Affected People ...... 32 Figure 3-4 Education Level Difference between Men and Women ...... 35 Figure 3-5 Occupation Difference between Men and Women ...... 35 Figure 3-6 Income Difference of Male and Female ...... 36

List of Figures

Figure 1-1:Road Network of Tacheng County...... 6 Figure 1-2:Presentation of proposed roads and affected communities/villages ...... 6 Figure 3-1Socioeconomic Questionnary Survey on Affected People ...... 29 Figure 5-1 Layout Plan of the Xinqu Resettlement Community ...... 66 Figure 6-1: Grievance Redress Flowchart ...... 77 Figure 7-1: Flowchart of Resettlement Fund Disbursement ...... 86 Figure 8-1: Resettlement Organizational Chart ...... 89 Figure 10-1: Grievance Redress Flowchart ...... 132

Executive Summary 1. Project Overview Tacheng Infrastructures and Municipal Services Project (Project) is one of components of the Xinjiang Tacheng Border Cities and Counties Development Project, which is financed by Asian Development Bank (ADB). The project includes six parts: (i) Road Construction: construction of 13 new roads with 29,447 m length in Tacheng New District, including lightning, signs, and landscaping facilities, and 51 alley reconstruction with 4.06 km length; (ii) Water Supply: installation of 45,443 m warter supply pipeline; (iii) Drainage: installation of 48.97 km drainage pipeline and 1,220 manholes; (iv) District Heating: installation of 18,605×2 m hot warter pipeline and 21 heat exchange stations; (v) Kalanggur River Rehabilitation: rehabilitation of about 15.12 km river banks, and construction of 4 bridges and 15.5 km flood rescue roads; and (vi) Municipal Solid Wastement Management (MSW): including 2 automatic garbage collecting stations, 300 sortable garbage bins, 32 garbage bins, 3 movable and compressible garbage bins, 9 public toilets, and 23 sanitation trucks. 2. Impact Scope Land acquisition (LA) and house demolition (HD) of the project will affect 1 town (Ergong town), six villages (Shangtakensi, Sazi , Mayahai, Tasiken, Bali and Wuli) and 1 state-owned farm (Yuanyichang village), and 1,653 people (including enterprises and stores) will be affected, in which 242 persons are ethnic minorities, accounting for 14.64% of the total affected persons (APs). 263 families with 866 members are affected by HD only, and 158 famlies with 560 members by LA only, and 29 famlies with 100 members by both. A total land of 1,743.41 mu will be acquired permanently, including 902.67 mu state-owned land and 840.74 mu collective land. The state-owned land consists of (i) 348.16 mu of cultivated land, orcharding land, hops garden; (ii) 59.30 mu residential land; (iii) 28.14 mu industray land and 1.01 mu commercial land; and (iv) 3.35 mu unused and 462.71 mu construction land. The LA of the state-owned land will not affected any buildings and attachments, and people. 840.74 mu collective land includes 646.26 mu of cultivated land, orcharding land, hops garden, vegetable garden and scattered land. It will affect 193 famlies with 646 members (including 14 familes with 49 menbers affected by both LA and HD), and 43 families with 137 members of whom are minorities. 76,819 m2 of house area will be demolished, including 60,106 m2 of urban residential house area, 276 m2 of store houses and 16,436 m2 of enterprise building. 187 familes with 660 menbers, including 26 ethnic minority familes with 98 members, five persons of five stores and 122 persons (including 22 minorities) of 10 enterprises will be affected by the HD. This RP is prepared based on the Feasibility Study Report (FSR) and the socio-economic survey data of the project. The RP shall be updated according to the detail measurement survey and census data of affected persons based on detailed design of the project; the updated RP shall be submitted and approved by ADB prior to start of LAR activities and before the civil works contracts of the project are awarded. 3. Policy Framework and Entitlement

This RP is formulated in accordance with State-owned Land on the Housing Levy and Compensation Ordinance of the PRC (2011) , The Land Administration Law of the PRC (2004), The Decision of the State Council on Intensifying the Reform and Tightening the Land

Administration (Guo Fa [2004] No. 28), Circular of the Ministry of Land and Resources on the Working Paper Concerning Developing the Unified Annual Output Value Standard of Land Expropriation and the Integrated Section Price of Land Expropriation (Guo Tu Zi Fa [2005] No. 144), Notice on the promulgation and implementation of autonomous unified annual output value standard" (new MLR [2011] 19), and Safeguard Policy Statement (SPS) of ADB (June, 2009). All the affected people will be compensated for the LAR according to the policies and regulations. Compensation for the permanent LA of the agricultural land includes land compensation, resettlement subsidy, and young crops fee. The compensation standards are (i) RMB 12,000 per mu for land compensation; (ii) RMB 25,500 per mu for resettlement subsidy; and (iii) RMB 1500 per mu for young crops; The compensation standerd for LA of orcharding land and hops garden are : (i) RMB 24,000 per mu for land compensation, (ii) RMB 51,000 per mu for resettlement subsidy, and (iii) forest compensation caculated by types and grades of diameters. The compensation standerd for LA of vegetable land are (i) RMB 36,000 per mu for land compensation, (ii) RMB 76,500 per mu for resettlement subsidy, and (iii) RMB 600 per mu for young crops. The compensation standerd for LA of forest land are (i) RMB 24,000 per mu for land; (ii) RMB 51,000 per mu for resettlement subsidy; and (iii) trees compensation caculated by types and grades of diameters. In addition, ground attatchments compensation will be caculated by market values. Compensation for the HD includes (i) monetary compensation: the compendation standards are based on house assessment conducted by a third-party agency but are not lower than the standards listed in this RP, and the compensation will be paid to APs at one time (including transition and moving subsidies); (ii) property right exchange: compensation values of deomolished houses will be evaluated by a third-party agency. The values will be compared with prices of resettlement houses. If the value is lower than the price, APs should pay for the difference for the resettlement house. However, if the value is higher than the price, the APs will receive a compensation for the defference. APs also receive transition and moving subsidies. APs have priority to select floors and typies of the resettlement houses; and (iii) after monetary compensation, APs can build their new houses on lands uniformly distributed by villages. The compensation and resettlement for stores demolation contains: (i) monetary compensation; and (ii) property right exchange. The compensation and resettlement for enterprises demolation contains :(i) monetary compensation; and (ii) uniform construction in an industry zone after monetary compensation. 4. Resettlement and Restoration Based on social and economic survey and public consultation with APs, the following measures to restore livelihood of APs are prepared, including: (i) useing the compensation to do some business, like housing rent, or operation of some shops; (ii) participating in social ensurance for landless farmers to ensure their livehood level not lower; (iii) local government will assist APs in adjusting agricultural planting structure, provide planting guidance and technical training, expand planting area of cash crops (crops are planted for sale), and develop household breeding to improve the income; (iv) the PMO will provide temporary unskilled jobs priority to APs during project construction. The PMO will organize technical training for APs, and make sure all affected labors received at least 2 times training on farming and non-agricultural work. 5. Organization Structure The IA will be responsible for the project implementation, LA and coordination. The LA and HD office will be composed of officials of the city land administration bureau, construction bureau, and each affected sub-district office or community committee. Each unit will provide one member to the office to be responsible for LA consultation and income restoration activities.

6. Public Participation and Information Disclosure From Novenber 2 to 15 , 2013, a survey was conducted for the impact scope of the LAR of the project. During January to May 2014, the PMO and the relevant staff of the RP preparation agency conducted a supplementary survey of the affected land, households and people, and a public opinion and advice survey of the APs and affected entities. For understanding local socio-economic status, different fields staffs are consulted, who come from Tacheng Land Administration Bureau, house acquisition office, Ergong Township, villages of Shangtakensi, Sazi, Mayahai, Tasiken, Bali and Wuli, and the farm, and exchange views on compensation standards and measures of livelihood restoration. The implementation process of the LAR are discussed with local governments. Representatives from the TCG, the Tacheng PMO, Land Administration Bureau, Civil Affairs Bureau, women federation, urban planning bureau and other relevant government agencies as well as affected village and township and APs attended the public consultation and meeting. The concerns of the APs and their suggestion have been included in the RP. 7. Grievances and Appeals Tacheng PMO has established a detailed complaint and appeal procedure. The APs can complain any problems related to the LAR in following procedures to (i) village committees/sub-district office; then (ii) Tacheng City Land Administration Bureau; then (iii) Tacheng PMO; and then (iv) the TCG. The responsible agencies must reply to any complains in a definite period. The APs may file lawsuit to the civil court at any time under Civil Procedure Law or report problems to the ADB in accordance with its Accountability Mechanism (2012). The APs may file appeals about any aspect of the LAR. 8. Resettlement Budget The total resettlement cost is RMB 287.90 million, including (i) permanent LA of RMB 93.31 million, accounting for 32.41% of the total cost; (ii) HD compensation 130.41 million, accounting for 45.30% (iii) RP preparation, training and monitoring of RMB 16.76 million, accounting for 13.61%;(iv) taxes and fees of RMB 29.53 million, accounting for 5.82%; and (v) contingency in 8% of the basic cost. The IA ensures that adequate resettlement funds will be available in a timely manner to cover all necessary resettlement issues. 9. Implementation of Resettlement Plan The LAR will be implemented from March 2015 to December 2018. The project construction will be commenced only after ADB approve the updated RP and the full compensation has been paid to the APs. 10. Monitoring & Evaluation and Reporting Internal and external monitoring on implementation of the RP will be conducted. The internal monitoring is carried out by the Emin PMO, and a monitoring report, as one of key contents of project progress reports, will be submitted to ADB quarterly. Tacheng Prefecture PMO will entrust an independent monitoring agency to conduct external monitoring and evaluation and report to ADB every six months during implementation of the project. The monitoring and evaluation fees are included in the total budget of the RP.

1. Overview

1.1. Introduction 1. Tacheng City Infrastructures and Municipal Services Project (Project) is one of components of the Xinjiang Tacheng Border Cities and Counties Development Project, which is financed by Asian Development Bank (ADB). The project includes six parts: (i) Road Construction: construction of 13 new roads with 29,447 m length in Tacheng New District, including lightning, signs, and landscaping facilities, and 51 alley reconstruction with 4.06 km length; (ii) Water Supply: installation of 45,443 m warter supply pipeline; (iii) Drainage: installation of 48.97 km drainage pipeline and 1,220 manholes; (iv) District Heating: installation of 18,605×2 m hot warter pipeline and 21 heat exchange stations; (v) Kalanggur River Rehabilitation: rehabilitation of about 15.12 km river banks, and construction of 4 bridges and 15.5 km flood rescue roads; and (vi) Municipal Solid Wastement Management (MSW): including 2 automatic garbage collecting stations, 300 sortable garbage bins, 32 garbage bins, 3 movable and compressible garbage bins, 9 public toilets, and 23 sanitation trucks. The project composition is presented in Table 1-1.

Table 1-1: Project Composation

NO. Subproject Contents and Scale Impact

13 new roads with facilities of road lightning, road 13 roads invole LA Road signs, landscaping, transportation and monitoring and HD; 51 existing 1 construction facilities; and reconstruction of 51 alleys with 14.06 alleys will not km, and lightning facilities involve LA and HD No permanent LA and HD; temoporay 2 Water Supply 45 .443 km warter supply pipeline land occupation of 3.25 mu No permanent LA and HD; temoporay 3 Water Drainage 48.97 km drainage pipeline land occupationof 19.84 mu No permanent LA 18,605×2 m hot warter pipeline and 21 heat exchange and HD; temoporay 4 District Heating stations land occupationof 10.68 mu. 15.12 km of Kelangguer River rehabilitation, 4 5 River regulation river-crossing bridge construction; 15.5 km of flood No LA and HD; prevention road Municipal Solid Garbage collecting stations, 300 sortable garbage 6 Waste bins, 32 garbage bins, 3 movable and compressible No LA and HD; Management garbage bins, 9 public toilets, and 23 sanitation trucks Source:From the feasibility study report (FSR) of the project.

Figure 1-1: Road Network of Tacheng County (Project roads in black line)

Figure 1-2: Proposed Roads and Affected Communities/villages

1.2. Impact Scope of Land Acquisition and Resettlement 2. According to the feasibility study report (FSR) of the project, construction of 13 new roads

will involve LA and HD. It will affect one (1) town (Ergong town), six (6) villages (Shangtakensi, Sazi , Mayahai, Tasiken, Bali and Wuli) and one (1) state-owned farm. A total of 1,653 people (including those from affected enterprises and stores) will be affected, including 242 ethnic minority people, accounting for 14.64℅. 263 families with 866 members are affected by HD only, and 158 famlies with 560 members by LA only, and 29 famlies with 100 members by both. The water supply and dranage pipelines will be constructed under the project roads, so no LAR will be involved. However, the district heating pipeline will occupy about 10.68 mu land temporally. In addition, a combined heat and power (CHP) plant will be constructed by another project, which will be a heat source of the district heating pipeline of this project. A due diligence report on LAR of the CHP plant is prepared as Appendix 5. 3. A total land of 1,743.41 mu will be acquired permanently, including 902.67 mu state-owned land and 840.74 mu collective land. The state-owned land consists of (i) 348.16 mu of cultivated land, orcharding land, hops garden; (ii) 59.30 mu residential land; (iii) 28.14 mu industray land and 1.01 mu commercial land; and (iv) 3.35 mu unused and 462.71 mu construction land. The LA of the state-owned land will not affected any buildings and attachments, and people. 840.74 mu collective land includes 646.26 mu of cultivated land, orcharding land, hops garden, vegetable garden and scattered land. It will affect 193 famlies with 646 members (including 14 familes with 49 menbers affected by both LA and HD), and 43 families with 137 members of whom are minorities. 4. 76,819 m2 of house area will be demolished, including 60,106 m2 of urban residential house area, 276 m2 of store houses and 16,436 m2 of enterprise building. 187 familes with 660 menbers, including 26 ethnic minority familes with 98 members, five persons of five stores and 122 persons (including 22 minorities) of 10 enterprises will be affected by the HD.

Table 1-2: Summary of Project Land Acquisition and Resettlement Impacts Items Total Affected Villages 7 Sub-total: 902.67 Cultivated alnd 131.21 Orchard 103.07 Hops garden 113.88 State-owned land (mu) Unused land 3.35 Commercial land 1.01 Industrial land 28.14 Residential land 59.3 Construction land 462.71 Sub-total: 840.74 Cultivated alnd 360.32 Orchard 200.01 Collective land (mu) Hops garden 50.25 Vegetable patch 15.49 Forest 20.19 Residential land 157.78

Items Total Unused land 7.72 Construction land 28.98 Sub-total 8.44 Tempororay land occupation (mu) Cultivated alnd 8.44 Sub-total 76 ,818.82 On urban residential land 0 HD( m²) Rural villager houses 60 ,106.29 Stores 276.42 Enterprises 16 ,436.11 LA only (HH) 263 Population (person) 866 Both LA and HD (HH) 29 Affected population Population (person) 100 HD only (HH) 158 Population (person) 560 Household affected by LA and HD (HH) 450 Population affected by LA and HD (AP) 1,526 Affected public institutions (stores and enterprises) 15 Affected staff or workers (person) 127 Total (person) 1,653

Source: Socio-economic survey of September 2013

1.3. Optimizing Project Design to Reduce Resettlement Impacts 5. In the engineering design phase, the impact of the LAR should be minimum, the main principles are following:  To avoid or minimize the occupation of existing and planned residential areas (rural and urban);  To avoid or minimize the acquisition of high quality arable land;  To use existing state and local roads towards to the proposed construction area;  To avoid or minimize the occupation of environmentally sensitive areas; and  To select the resettlement areas in line with the local development plan. 6. The road route selection should be combined with existing roads to avoid or reduce occupancy of existing building and cultivated land. 7. The original project plans to build a wastewater treatment plant, which would cause the HD of 75 rural households and 120 mu cultivated land acquisition. After field consultation with the affected Wuli village and residents, the PMO and design institute (DI) decided to abandan the plant construction, which avoids about 13,500 m2 of HD and 120 mu of LA. Details are presented

in Table 1-3.

Table 1-3: Comparison of the Affected Area before and after Design Optimization

Item Before design After design Unit Decrease optimization optimization Cultivated land mu 611.53 491.53 - 120 Orchard mu 303.08 303.08 0 Hops garden mu 164.13 164.13 0 Vegetable patch mu 15.49 15.49 0 Forest land mu 20.19 20.19 0

Permnent Unused land mu 11.07 11.07 0 LA Residential land mu 59.3 59.30 0 Industry land mu 28.14 28.14 0 Commercial land mu 1.01 1.01 0 Construction land mu 491.69 491 .69 0 Residential land mu 157.78 157.78 0 Sub-total mu 1,863.41 1,743.41 - 120 Temporary land occupation mu 33.77 33.77

Residential 2 m 73 ,606.29 60 ,106.29 land -13500 Commercial 2 m 276.42 276.42 0 HD shops Public 2 m 16 ,436.11 16 ,436.11 Institution 0 2 Sub-total m 90 ,318.82 76 ,818.82 -13500 Household HH 301 263 -83 LA Population person 996 866 -130 Household HH 29 29 0 LA and HD Population person 100 100 0 Residential HH 233 158 -57 Population person 815 560 - 255 House/builing Commercial demolish unit 5 5 shops 0 Public unit 10 10 Institution 0 Source: The design institute and resettlement socio-economic survey (2013)

2. Impact Scope

2.1. Types of Impacts 8. Based on the feasibility study report (FSR), the main types of impacts of the project include: (i) Land acquisition of collective and state-owned lands; (ii) House demolition of residents and attechments; (iii) House demolistion of urban and rural and public institution; and (iv) Losses of ground attachments and infrastructure. 2.2. Methodology and Procedures 9. The Tacheng PMO, design institute (DI) and RP preparation agency conducted a site survey to identify the project impact scope in March 2013 with Tacheng construction bureau. 10. In September 16-23, 2013, a training to the governmental staff involved in preparation of the Ethnic Minority Development Plan (EMDP) and the RP was held at Tacheng Prefecture Development and Reform Commission for the Xinjiang Tacheng Border Cities and Counties Development Project. Both the PRC and ADB’s policies related to LAR and indigenous peoples, and contents required for the RP and EMDP were introduced. In addition, the detail survey methodology and questions were explained to the survey staff. 11. During November 2-15, 2013, the RP preparation agency conducted a field survey of impact scope of the Project with the DI, including physical indicators of the affected population, houses, land and special facilities, as well as affected residents and rural collective economic organizations, and a case study of affected residents. The surveys were conducted in a combination of field investigation, data collection and inquiry, questionnaire survey and interview, including: Land acquisition survey: The survey team surveyed the area of the acquired land by ownership and type after the DI defined the range of land acquisition by field setting-out. House demolition survey: Location, structure and area of affected houses and buildings were surveyed. Socio-economic survey: A sampling survey of affected population, including ethnic group, age, educational level and employment status, etc. Scattered tree survey: Scattered trees within the affected areas were counted on spot to differentiate fruit trees and other trees, and registered by species. Special facility survey: The affected water resources, electric power and telecommunication facilities were surveyed based on the existing information of the competent authorities, and verified and registered on spot

2.3. Impact Identification 12. The LAR will affect one (1) town (Ergong town), six (6) villages (Shangtakensi, Sazi , Mayahai, Tasiken, Bali and Wuli) and one (1) state-owned farm. A total of 1,653 people (including those from affected enterprises and stores) will be affected, including 242 ethnic minority people, accounting for 14.64℅. 263 families with 866 members are affected by HD only, and 158 famlies with 560 members by LA only, and 29 famlies with 100 members by both.

13. A total land of 1,743.41 mu will be acquired permanently, including 902.67 mu state-owned land and 840.74 mu collective land. The state-owned land consists of (i) 348.16 mu of cultivated land, orcharding land, hops garden; (ii) 59.30 mu residential land; (iii) 28.14 mu industray land and 1.01 mu commercial land; and (iv) 3.35 mu unused and 462.71 mu construction land. The LA of the state-owned land will not affected any buildings and attachments, and people. 840.74 mu collective land includes 646.26 mu of cultivated land, orcharding land, hops garden, vegetable garden and scattered land. It will affect 193 famlies with 646 members (including 14 familes with 49 menbers affected by both LA and HD), and 43 families with 137 members of whom are minorities. 14. 76,819 m2 of house area will be demolished, including 60,106 m2 of urban residential house area, 276 m2 of store houses and 16,436 m2 of enterprise building. 187 familes with 660 menbers, including 26 ethnic minority familes with 98 members, five persons of five stores and 122 persons (including 22 minorities) of 10 enterprises will be affected by the HD.

2.3.1. Impacts by Each Road 15. Heshan South Road: It is a new construction road. The construction will levy arable land of 106.89 mu, affect 17 HHs with 60 people, including 5 HHs with 18 minority people. It will acquire 67.42 mu of contracted land (orchard land) in Bali Village, affecting 12 HHs with 44 people, including 2 HHs with 8 minority people; and it will acquired 19.87 mu of contracted land (arable land) in Mayihai Village, affecting 5 HHs with 16 people, including 3HHs with 10 minority people. In addition, 3 mu of shelterbelt of farmland, 2.83 mu of collective construction land, and 7.72 mu of collective unused land will be acquired. At the same time, 5.04 mu of state-owned construction land, and 1.01mu of allocation land (commercial use) in Bali Village will be acquird, which has no attachment or buildings on the ground involved. 16. Chanye Yi Street: It is a new construction road. The construction will levy arable land of 161.73 mu, affect 34 HHs with 102 people, including 15 HH with 41 minority people. It will acquire 20.19 mu of contracted land (orchard land) in Bali Village, affecting 5 HHs with 13 people; and acquire 124.80 mu of contracted land (arable land) in Mayihai Village, affecting 29 HHs with 89 people, including 15 HHs with 41 minority people. In addition, 0.73 mu of shelterbelt of farmland, and 16.01 mu of state-owned allocation land (industrial use) will be acquired in Mayihai Village. 17. Chanye Si Street: It is a new construction road. The construction will levy arable land of 140.71 mu, affect 77 HHs with 253 people, including 7 HH with 22 minority people. It will acquire 32.09 mu of contracted land (arable land) in Wuli Village, affecting 28 HHs with 103 people, including 5 HHs with 16 minority people; and acquire 90.34 mu of contracted land (state-owned arable land) in Yuanyi Village, affecting 46 HHs with 140 people, including 2 HHs with 6 people. In addition, 15.73 mu of contracted land (state-owned hops land) in Yuanyi Village and 2.55 mu of homestead land in Wuli Village will be acquired, which affect 3 HHs with 10 people. 18. Chanyenansan Road: It is a new construction road. The construction will levy arable land of 124.21 mu, including 40.87 mu of contracted land in Yuanyi village affected 3 HHs with 9 people, including 1 HH with 3 minority people; and 67.52 mu of uncontracted land (hops land), which has no APs. It will acquire 10.97 mu of contracted land (arable land) in Mayihai Village, and the APs have been counted in Chanye Si Street. In addition, the street will acquire the collective farmland shelterbelt of 4.85mu in Mayihai village, which not involve APs. 19. Erhuan Road: It is a new construction road. The construction will affect 78 HHs with 272 people, including 6 HH with 19 minority people. Among it, 23 HHs with 80 people will be affected by HD only, 50 HHs with 173 people affected by LA only, including 6HHs with 19 minority people, 11

and 5 HHs with 19 people affected by both LA and HD. The total LA area is 238.78 mu and HD area is 7,742.12 m2. It will acquire 33.79 mu of contracted land in Shangtasiken Village, affecting 50 HHs with 173 people, including 6 HHs with 19 minority people; and 18.30 mu of collective construction land (the land rent to the enterprises and public institutions) and 36.59 mu of homestead land in Shangtasiken Village. In addition, 127.48 mu of state-owned and vacant construction land will be acquired, and no buildings or attachment are involved; and 12.76mu of state-owned residential land, 9.78 mu of state-owned allocation land (industrial use), and 0.08 mu of state-owned allocation land(commercial use) will be occupied. 20. Sanhuan Road: It is a new construction road. The construction will levy arable land of 195.85 mu, and affect 14 HHs with 46 people, including 2 HHs with 4 minority people. 15.44 mu of contracted land (orchard land) in Bali village will be involved and affect 4 HHs with 14 people, and 36.18 mu of contracted land (arable land) and 13.72 mu of hops land also involved and affect 9 HHs with 29 people, including 2 HHs with 4 minority people. In addition, the road will acquire 30 mu of contracted land (orchard land), and affect 2 HHs with 9 people in Mayihai village; 0.80 mu of collective land in Shangtasiken village, and 96.49 mu of state-owned construction land without buildings and attachments. 21. Sihuan Road: It is a new construction road. The construction will affect 30 HHs with 115 people by both LA and HD, including 3 HH with 12 minority people. The total LA area is 112.54 mu and HD area is 4,265.11 m2. Among it, 10 HHs with 37 people, including 3HHs with 12 minority people will be affected by LA only and 20 HHs with 78 people affected by HD only.The road will occupy 30.45 mu of contracted land (orchard land) in Bali Village and affect 7 HHs with 26 people, including 2 HHs with 7 minority people; and 24.15 mu of contracted land (arable land) and 13.5 mu of hops land in Mayihai Village and affected 3 HHs with 11 people, including 1HH with 5 miority people; and 12.38 mu of uncontracted orchard land in Tasiken village; and 0.31 mu of collective construction land in Mayihai village and 0.66 mu of collective construction land in Bali village, 31.09 mu for state-owned construction land, with no APs. 22. Wuhuan Road: It is a new construction road. The construction will affect 28 HHs with 91 people by both LA and HD, including 8 HH with 31 minority people. The total LA area is 176.02 mu and HD area is 6,753.40 m2. Among it, 10 HHs with 35 people, including 7 HHs with 28 minority people, will be affected by HD only, and 18 HHs with 56 people, including 1 HHs with 3 minority people affected by LA only. The road will occupy 41.55 mu of contracted land (orchard land) and 4.20 mu of hops land in Bali Village and affect 10 HHs with 30 people; and 25.77 mu of contracted land (arable land) in Mayihai Village; 24.53 mu of contracted land (state-owned hops land) in Yuanyi village and affect 8 HHs with 26 people (1 HH with 3 minority people); and 7.68 mu of collective homestead land in Mayihai village; and 19.28 mu of collective homestead land in Yuanyi village; 0.21 mu of state-owned construction land in MAyihai village; 2.65 mu of collective construction land in Bali village without APs. In addition, 3.01 mu of state-owned residential land, and 66.42 mu of state-owned construction land without Aps, and 2.35 mu of state-owned allocation land (industrial use) of the enterprises will be acquired. 23. Xixing South Road: It is a new construction road. The construction will affect 43 HHs with 153 people, including 2 HHs with 6 minority people. The total LA area is 118.08 mu and HD area is 11,555.35 m2. Among it, 10 HHs with 27 people will be affected by LA only, 31HHs with 120 people affected by HD only, and 2 HHs with 6 minority people affected by both LA and HD. The project will occupy 33.59 mu of contracted land (arable land) and 18.83 mu of hops land in Mayihai Village and affect 10 HHs with 27 people; and 12.58 mu of collective motorized land (orchard land) in Tasiken Village; 0.07 mu of homestead land in Mayihai village; 25.55 mu of state-owned residential land, 24.11 mu of state-owned construction land; 3.3 5mu of state-owned

unused land without APs. 24. Tianyuan South Road: It is a new construction road. The construction will affect 26 HHs with 84 people, including 4 HHs with 13 minority people. The total LA area is 110.06 mu and HD area is 8,382.57 m2. Among it, 3 HHs with 11 people will be affected by LA only, 22 HHs with 69 people, including 4 HHs with 13 minority people affected by HD only; and 1 HHs with 4 people affected by both LA and HD. The road will occupy 6.10 mu of contracted hops land (state-owned land) and affect 3 HHs with 11 people in Yuanyi village; and 15.49 mu of uncontracted land in Mayihai Village; 9.82 mu of state-owned residential land in Yuanyi village; 0.05 mu of homestead land in Tasiken village; 78.60 mu of state-owned construction land without APs. 25. Hemei Road: It is a new construction road. The construction will affect 59 HHs with 195 people. The total LA area is 119.56 mu and HD area is 16,483.07 m2. Among it, 7 HHs with 22 people will be affected by LA only, 50 HHs with 170 people, including 7 HHs with 23 minority people affected by HD only; and 2 HHs with 3 people affected by both LA and HD. The road will occupy contracted land of 16.39 mu in Shangtasiken village and affect 7 HHs with 22 people; and 11.61 mu of collective land (sporadic forest) without APs; and 37.02 mu of homestead land in Shangtasiken village; and 54.54 mu of homestead land in Sazi village. 26. Stadium West Road: It is a new construction road. The construction will affect 31 HHs with 102 people. The total LA area is 83.95 mu and HD area is 4924.69 m2. Among it, 20 HHs with 70 people will be affected by LA only, 2 HHs with 8 people affected by HD only; and 9 HHs with 24 people affected by both LA and HD. The road will occupy contracted land (arable land) of 2.72 mu in Mayihai village, and 73.07 mu of contracted orchard land (state-owned land) and affect 20 HHs with 70 people, 8.16 mu of state-owned residential land. 27. Hemu South Road: It is a construction road. The construction will occupy the state-owned construction land of 33.48 mu without APs. 28. Alley: 51 alleys will improve pavement conditions of existing alleys without APs.

2.3.2. Water Supply Component 29. The water supply network subproject will not involve LAR and temporary land occupation. The pipeline will be laid along the new road and constructed at the same time with the road construction.

2.3.3. Drainage Component 30. The drainage network subproject will not involve permanent LAR, but some pipeline installation will occupy 8.44 mu of arable land temporarily.

2.3.4. Heating Component 31. The heating network subproject will not involve LAR. The hot water pipeline will be installed with the new road construction. 32. The new heating exchange stations will take land of 4,072 m2. All the land is vacant urban construction land without any buildings or attachment, so no LAR will be involved.

2.3.5. River Rehabilization 33. Kalanggur River rehablization will be conducted within existing river banks and riverbed, not change the river natural environment. So the subproject will not involve any LAR. The 13

construction of the new flood control rescue road will be conducted on the existing river embanks. There is no buildings or attachments on the river embanks, so no LAR will be involved.

2.3.6. Sanitation Component 34. Garbage sorting bins will be placed near residence buildingd within the existing community land, so no LAR will be involved. For the 9 new public toilets, each toilet will take about 100 m2, so need a total of 900 m2. All the toilets will be constructed state-owned urban construction land without any buildings and attachments, so no LAR will be involved.

Table 2-1: Detail Impact Scope

Permanent land acquisition House Demolition Population of both LAmu Affected only by LA Residential HD Public Institution Small shops LA and HD Unused land Unused Affected HHs Affected HHs Affected HHs Affected HHs Affected Population of of Population of Population affected affected stuff affected stuff Construction Construction Arable landArable area area area Population Demolition Population Demolition Demolition Population Project population population popu lation population EM HHsEM HHsEM EM HH EM land EM EM EM EM EM m m m 2

2 2 2 1

Heshan 90.29 8.88 7.72 17 60 5 18 324.00 1 South Road Chanyeyiji 145.72 16.01 34 102 15 41 756.00 2 5 21 5 21 e Chanyesiji 138.16 2.55 77 253 7 22 4 17 1 7 e Chanyena 124.21 0.00 3 9 1 3 nsan Road Erhuan 33.79 204.91 50 173 6 19 7,742.12 23 80 0 0 11 ,823.84 5 84 18 150.00 2 5 19 0 0 Road Road Com- Sanhuan 95.34 100.51 14 46 2 4 1 6 0 0 ponent Road Sihuan 80.48 32.06 10 37 3 12 4,265.11 20 78 0 0 Road Wuhuan 96.05 101.60 18 56 1 3 6,753.40 10 35 7 28 3,532.27 2 20 1 Road Xixing 65.00 49.73 3.35 10 27 0 0 11 ,555.35 31 120 0 0 48.50 1 2 6 2 6 South Road Tianyuan 21.59 88.47 3 11 0 0 8,382.56 22 69 4 13 31.50 1 1 4 0 0 South Road

1 Arable land refers to general farmland, orchard land, hops land, vegetable land and woodland. 2 Construction land include construction of collective-owned construction land, State-owned land, industrial land, residential land, commercial land and Homestead land. 3 Unused land includes collective unused land and state-owned unused land. 15

2 2 2 1

Hemei 28.00 91.56 7 22 0 0 16 ,483.06 50 170 7 23 46.42 1 2 3 0 0 ROad Stadium 75.79 8.16 20 70 0 0 4924.69 2 8 0 0 9 24 0 0 West Road Hemu 0.00 33.48 0 0 0 0 South Road Sub-total 994.42 737.92 11.07 263 866 40 122 60 ,106.29 158 560 18 64 16 ,436.11 10 104 19 276.42 5 29 100 8 34 Water 0 supply Drainage Temporary 8.44 occupied 0 Heating land Steam 0 network Total 1,002.86 737.92 11.07 263 866 40 122 60 ,106.29 158 560 18 64 16 ,436.11 10 104 19 276.42 5 29 100 8 34 Source: Socio-economic survey November 2013

2.4. Loss of Collective Land 35. The project will acquire collective land of 840.74 mu permanently and affect 193 households with 646 people (including 14 households with 49 people affected by both HD and LA), including 43 households with 137 minority people. The detail impacts based on villages and types of land are presented in Table 2-2.

Table 2-2: Land Loss Analysis

Shangtasiken Mayihai Bali Tasiken Sazi Land type Items Wuli Village Sub-total Remark Village Village Village Village Village Areamu 32.09 50.18 278.05 360.32

HHs 28 64 47 139

General farmland Population 103 217 154 474

EM HHs 5 6 24 35

EM Population 16 19 75 110

Areamu 175.05 24.96 200.01

HHs 36 36

Orchard land Population 120 120

EM HHs 4 4

EM Population 15 15

Areamu 46.05 4.2 50.25

HHs 16 2 18

Hops land Population 45 7 52

EM HHs 4 4 — EM Population 12 12 — Vegetable Areamu 15.49 15.49 No APs

Woodland Areamu 11.61 5.58 3 20.19 No APs

Collective Unused land Areamu 7.72 7.72 No APs

Collective Construction land Areamu 19.1 0.52 9.36 28.98 No APs

Homestead land Areamu 2.55 73.61 7.75 19.33 54.54 157.78 No APs

Source: Socio-economic survey November 2013 36. Land loss analyse of the affected villages is shown in Table 2-3.

Table 2-3: Land Loss Rate analysis

No Affected Villages HHs APs Before LA the land Area (mu) LA Area (mu) Loss Rate

1 Wu li Village 28 103 1193.6 32.09 2.69% 2 Bali Village 38 127 1557.7 179.25 11.51% 3 Shangtasiken Village 64 217 1110 50.18 4.52% 4 Mayihai Village 63 199 2370 321.37 13.56% 5 Total 193 646 6231.3 582.89 9.35% Source: socio-economic survey November 2013

2.5. Impacts of State-owned Land Acquisition 37. The project will occupy state-owned land of 902.67 mu, including state-owned farmland (Yuanyichang) general land of 131.21 mu, orchard land of 103.07 mu and hops land of 113.88 mu; and construction land of 462.71 mu, residential land of 59.3 mu, allocation land of 28.14 mu for industrial use, allocation land of 1.01 mu for commercial use, and unused land of 3.35 mu.

Table 2-4: State-owned Land Occupation

Gene- Indus - Commer Orchar Hops Construc Residen Unused Sub-to Project Road ral trial -cial d land land tion land tial land land tal land land land Heshan South 5.04 1.01 6.05

Road Chanye 16.01 16.01 Yi Street Chanye 90.34 15.73 106.07 Si Street Chanyen ansan 40.87 67.52 108.39

Road Erhuan 127.48 12.76 9.78 150.02 Road Sanhuan 30.00 96.49 126.49 Road Sihuan 31.09 31.09 Road Road Component Wuhuan 24.53 66.42 3.01 2.35 96.31 Road Xixing South 24.11 25.55 3.35 53.01

Road Tianyuan South 6.10 78.6 9.82 94.52

Road Hemei 0 Road Stadium West 73.07 8.16 81.23

Road Hemu South 33.48 33.48

Road Total 131.21 103.07 113.88 462.71 59.30 28.14 1.01 3.35 902.67 Source: Socio-economic survey November 2013

38. The project will occupy Yuanyichang’s state-owned farmland of 348.16 mu and affect 99 HHs with 320 people, including 5 HHs with 19 minority people. Among them, occupied general farm of 131.21 mu will affect 52 HHs with 163 people, including 4 HHs with 16 minority people; orchard of 103.07 mu will affect 39 HHs with 129 people, including 1 HH with 3 minority people, hops of 113.88 mu will affect 8 HHs with 28 persons. 39. Yuanyichang is a state-owned agricultural farm managed in way of enterprise. In December 2000, Yuanyichang was combined into administrative jurisdiction of Ergong Town, but its business operation and management, and land property are not changed. Yuanyichang has 5,000 mu of cultivated land and population of 2,655 from 417 households, includes Han, Hui, Russia, Mongolian, Uygur and other ethnic minorities. The land loss analysis of Yuanyichang is presented in Table 2-5.

Table 2-5: Land Loss Rate Analysis in Yuanyichang

Before LA NO Land Type HHs APs the land LA Area Loss Rate Area 1 General land 52 163 1,522 131.21 8.62% 2 Orchard land 39 129 480 103.07 21.47% 3 Hops land 8 28 345.29 113.88 32.98% Total 99 320 2,347.29 348.16 14.83% Source: socio-economic survey November 2013 40. The project will occupy permanently state construction land of 462.71 mu, unused land of 3.35 mu and commercial use of 1.01 mu. These lands will not involve LAR because they are urban vacant land or the urban construction land without and buildings and attachements. In addition, the project also will oppupy permanently state-owned residential of 59.30 mu and industrial use land of 28.14 mu. The affected households and people are accounted in the total impact scopes by the HD.

2.6. Impacts of Temporary Land Occupation 41. The temporary land occupation is mainly caused by installation of drainage and water supply pipelines, which will occupy 8.44 mu of cultivated land without HD. In order to reduce income loss of affected farmers, according to the public consultation with APs, the pipeline installation will be conducted after the autumn harvest. And the occupied land will be restored to its original status once the pipeline installation is completed.

2.7. Impacts of House Demolition 42. The project HD will involve 187 HHs with 660 people, including 26 HHs with 98 minority people. 60,106.29 m2 of house area will be demolished, as presented in Table 2-6 in details.

Table 2-6: Affected House Demolition

Demolition aream2 Sub- Items Brick-co Color Color Brick- Earth- civil and Woo- total ncrete steel brick steel wood wood outsourcing den

12 ,487.36 1,926.85 193.35 5,445.5 4,768.16 24 ,821.22 Main room 4,034.59 3,845.42 2,816.45 10 ,696.46 Non-main room Simple 2,630.33 1,078.26 2,433.48 3,049.66 383.91 9,575.64 Houses Affilia Shed 896.17 3,481.56 780.77 646.16 3,489.48 9,294.14 ted Simple hous 1,636.38 49.72 1,686.1 e Shed Livestock 1,821.06 129.62 1,571.03 511.02 4,032.73 pens 14 ,125.9 20 ,973.34 2,823.02 6,519.17 11 ,791.45 383.91 3,489.48 60 ,106.29 Total 2 Category Household Population HD Only 158 560 Ethnic minority 18 64 Both HD and LA 29 100 Ethnic minority 8 34 So urce: Socio-economic survey Novermber 2013

2.8. Impacts of Small Shops 43. The project will affect 5 small shops with 5 persons due to HD. The HD area is 276.42 m2, as shown Table 2-7. The operation status of the shops is presented in Table 2-8.

Table 2-7: Impacts of Small Shops

HD area 2 Business (m ) NO Name Road Address Property APs Category Brick-conc rete㎡ 1 Wenyi Shop Hemei Road Shangtasiken Village Xu Guilan Daily Necessities 46.42 1 Daigao Erhuan Road Shangtasiken Village Fan Daigao Daily Necessities 72 1 2 Shop Huihao Erhuan Road Shangtasiken Village Yuan Guangzhong Daily Necessities 78 1 3 Shop Guangming Tianyuan South TAsiken Village Chen Yanzhi Daily Necessities 31.5 1 4 Shop Road Zonghe Xixing South Road Mayihai Village Hu Hailian Daily Necessities 48.5 1 5 Shop Source: socio-economic survey November 2013

Table 2-8： Operations Status of Affected Shops

N Annual Aps Business Operating Land O Name Profit Category Status Nature (yuan) 1 Wenyi Shop Daily Necessities General Collective 15 ,000 2 Daigao Shop Daily Necessities General Collective 18,500 1 3 Huihao Shop Daily Necessities General Collective 22 ,000 1 Guangming 4 Daily Necessities General Collective 17 ,000 1 Shop 5 Zonghe Shop Daily Necessities General Collective 20 ,000 1 Source: socio-economic survey November 2013

2.9. Impacts of Enterprises and Public Institutions 44. 10 enterprises or public institutions will be affected by HD of the project. 6 institutions will be demolished completely, while other 4 will be demolished partially. 122 employees or staffs will be affected, including 22 ethnic minority workers. And a total demolition area is 16,436.11 m2, as shown in Table 2-9 in details. The business operation status of affected enterprises or public institutions is presented in Table 2-10.

Table 2-9: Impacts of Enterprises and Public Institutions

Demolition area (m2) Total APs N demolitio Name Road Brick-concret Color Brick-woo Earth-woo AP E o n area e steel d d s M (m 2) Gas 1 Erhuan Road 56.00 56.00 0 0 station People’ Erhuan Road bank of 2 China 13.64 13.64 0 0

Tacheng Branch Tacheng Erhuan Road 3 3,510.00 3,510.00 48 6 Custom Tacheng Erhuan Road Hengtong 4 1,219.73 1,219.73 11 0 Pipe company Tacheng Erhuan Road Xiangyua 5 13.64 ,6834.46 176.37 7,024.47 18 8 n Company Tacheng Hongjiang 6 Color Wuhuan Road 676.40 2,220.10 46.50 2,943.00 14 1

Steel Company Tacheng LVyuan 7 Wuhuan Road 111.92 477.35 589.27 3 0 hops Company Petro China Heshan South 8 Xinjiang 324.00 324.00 0 0 Road Tacheng Company TAcheng Haichuan 9 Chanye Yi Street 255.00 255.00 12 3 Dairy Company Tacheng 10 Breeding Chanye Yi Street 501.00 501.00 16 4

Center

Source: Socio-economic survey November 2013

45. Among the affected 10 enterprises and institutions, five (5) of them are operating well, one (1) is general, and four (4) have closed their operation. 46. Gas Change Station is a private enterprise to provide household liquefied petroleum gas. It has closed its busisness due to bad operation and no workers in the station. Therefore, no people will be affected by the project. All building of the station in 56 m2 will be demolished. 47. Tacheng Prefecture Branch of People's Bank of China is a public institution. The project will demolish is the bank’s residual coin destroyed rooms in a total area of 13.64 m2, while the main buildings will not be affrected and no staff will be affected.

48. Tacheng Customs is a state administrative institution. Its office building with 3,510 m2 will be demolished completely, which will affect 48 staffs, including 6 minority people. 49. Tacheng Hengtong Pipe Co Ltd is a PVC pipe machining-oriented private enterprise. The project will demolish 1,219.73 m2 of office and manufacture buildings of the company completely, which will affect 11 workers, but no minority people. 50. Tacheng Xiangyuan Industry and Trade Co Ltd is a private corn processing and utilization company. The project will demolish 7,024.47 m2 of production buidlingd and a color steel shed completely, which will affect 18 workers, including 8 minority people. 51. Tacheng Hongjiang Benzen Plate and Color Steel Plant is a private company. The project will demolish 2943m2 of the production and office buildings of the company completely, which will affect 14 workers, including one (1) minority worker. 52. Tacheng LvFeng Hops Company is a private enterprise. Due to bad operation, the company has closed their business operation. The project will demolish 589.27 m2 of partial production building of the company, which will affect 3 persons. 53. China Oil Xinjiang Tacheng Sales Company is a state enterprise. The project will demolish one waste gas station. Due to bad location, the gas station sales were not good, so it was closed and not used. The station with 324 m2 will be demolished completely, but no workers will be affected. 54. Tacheng Haichuan Dairy Co. Ltd is a dairy processing enterprise. The project will demolish 255 m2 of warehousing structures of the company, which will affect 12 staffs, including three (3) minority people. 55. Tacheng Brown Cattle Breeding Center is a state cattle breeding and dairy production enterprise. The project will demolish partially a warehouse of the center with 501 m2, which will affect 16 staffs, including four (4) minority people.

Table 2-10: Business Operation Status of Affected Enterprises and Institutions

Perma Annual Annual Land Business Operatin No Name Road Property Nature nent output Remark Profit Nature Category g Status Assets value

Comm All Erhuan 1 Gas station Private ercial Gas Collapse Demo- Road land lition People’ bank of People’ bank Erhuan of China Reside Destruction of 2 China State Fine Part Road Tacheng ntial broken money Tacheng Branch Branch Adminis- All Tacheng Erhuan trative Reside Custom 3 Custom Fine Demo- Custom Road institutio ntial enforcement lition n Collecti Tacheng ve All Hengtong Erhuan 4 Feng Fei Private 1500 800 120 constru PVC Fine Demo- Pipe Road ction lition company land Tacheng Tacheng All Erhuan Industri 5 Xiangyuan Xiangyuan Private 1200 600 90 Selling Fine Demo- Road al land Company Company lition Tacheng All Wuhuan Homes 6 Hongjiang Yuanyichang Private Selling Collapse Demo- Road tead Color Steel lition

Perma Annual Annual Land Business Operatin No Name Road Property Nature nent output Remark Profit Nature Category g Status Assets value Company

Tacheng Joint-sto LVyuan Wuhuan ck Industri Beer 7 Yu Jian Collapse Part hops Road compan al land production Company y Petro China Heshan Petro China Comm All 8 Xinjiang South Xinjiang State ercial Oil sales Collapse Demo-

Tacheng Road Tacheng land lition Company TAcheng Joint-sto Haichuan Chanye ck Industri Dairy 9 Sun Zhaolong 200 90 40 General Part Dairy Yi Street compan al land processing Company y Tacheng Tacheng Chanye Industri 10 Breeding Breeding State Cow breed Fine Part Yi Street al land Center Center Source: Socio-economic survey November 2013

2.10. Affected Vulnerable Groups 56. Vulnerable groups in the project refer to those individuals and their families whose living standard is lower than the minimal living standard line of Tacheng City (for rural people the standard line is CNY123 yuan/month/person and for urban people the line is CNY331 yuan/month/person), including orphan, aged people, handicapped people, mentally disabled persons, impoverished people, and women headed households. 57. According to the survey, there are 2 AHs with 3 people belong to the vulnerable groups, as presented in Table 2-11.

Table 2-11: Affected Vulnerable Households

Household Population House LA Area Income No. Householders Demolition Re ason Remark 2 (mu) Source area (m ) Total Labor population force

Agruculture, 1 Shi Jianguo 217.87 5 2 Poverty HD subsidies Land rent, Zhang 2 - 1.14 3 2 subsidies Poverty LA Tonggang children support Total - 8 4 - - - Source: socio-economic survey November 2013 Shi Jianguo, male, 43 year-old, living in a 5-member family, who is the villager of Shangtasiken village. His wife Chen Jinping 45 year-old,and they have to support their mother for 73 years old, the family receives MLS subsidies (1,476 yuan/year) support from government. He has 2 daughters,one is in college and the other is in primary school in Tacheng. Main income of the family comes from the agriculture and subsidies, agriculture income about CNY10,000, living in a poor live. For the construction of the road, they expressed strong support, because they had no roads before, infrastructure and sanitation conditions are very bad, the construction of roads, will make the sanitation and environmental conditions better, for the development of the city also has a positive effect, and they hope to participate in the construction of the project, to increase their income. Zhang Tonggang, male, the Han nationality, aged 45, Bali villagers, households affected by the land expropriation for project construction, 3 people in the family. Wife of 43 years, help for farming with her husband, they also have a 21 year old college son. Family has a total land area of 21 mu, including 11 mu of arable land, orchards of 10 mu, to land due to project construction (Orchard) covers an area of 1.14 mu, causing land loss rates to the family of 5.43%. Mainly farming income-oriented sources of family income, about more than 13,000 yuan a year, and both husband and wife allowance income of about 3,000 yuan. Because the family has a son with a College, spend more on education, poor economic conditions of the family. Due to the construction of this project assessed the amount of land is small, therefore does not affect the income of their families. Through interview understanding to, Zhang Tonggang hopes to participate in some fruit foster, and planting, and General crop planting aspects of training, such can improve fruit and the arable land aspects of harvest; while, hopes get reasonable of land compensation paragraph, compensation paragraph of issued should used cash, and one-time sent finished, such, after getting compensation paragraph can continues to contracting land engaged in planting to gets proceeds, maintained livelihoods.

2.11. Affected Ethnic Minorities 58. In the total of 1,653 APs, there are 220 people from 66 minority HHs, accounting for 14.64%, as shown in Table 2-12. 59. Affected minority people mainly engage in the farming and enjoy the local social status, and their economic status is consistent with the Han, and retains their national characteristics in the habits and religion.

Table 2-12: Nationality and Distribution of Affected Minority People Uygur Hui Kazak Dongxiang Xibo Mongolian Affected H H H H H H H H Popul Popul Popul Popul Popul Popul Popul Popul Type H H H H H H H H ation ation ation ation ation ation ation ation s s s s s s s s 15 Only HD 560 18 64 1 2 13 48 2 4 1 6 1 4 8 26 Only LA 866 40 122 19 55 17 55 2 7 2 5 3 Both LA 29 100 8 34 8 34 and HD Shops 5 5

Enterpris 10 122 - 22 - 18 - 2 2 es 46 Total 1653 66 242 20 75 38 139 2 6 3 13 1 4 2 5 5 Source: socio-economic survey November 2013

2.12. Affected Attachments and Infrastructure 60. The ground attachments and infrastructure affected by the project are shown in Table 2-13.

Table 2-13: Affected Attachments and Infrastructure Items Total Nature Well 36 Individual

Sewage pit 9 Individual

Nang Pit 8 Individual Vegetable cellars 10 Individual <5cm 40 Individual 5-15cm 77 Individual Elm 15 -30cm 59 Indi vidual >30cm 3 Individual 5cm 10600 Individual 5-15cm 309 Individual Polar 15 -30cm 720 Individual 30cm 17 Individual Willow 5-15cm 4 Individual 5cm 378 Individual 5-15cm 274 Individual Apple trees 15 -30cm 629 Individual 30cm 571 Individual Jujube 5-15cm 20 Individual

Items Total Nature Sand Jujube 15 -20cm 6 Individual Walnut trees 5-15cm 11 Individual 5-10cm 42 Individual Pear trees 15 -20cm 10 Individual Peach trees 5-15cm 19 Individual 5-10cm 17 Individual Plum trees 15 -30cm 39 Individual 5-10cm 7 Individual Apricot trees 15 -20cm 9 Individual 30cm 8 Individual 5-15cm 86 Individual Fraxinus chinensis 30cm 2 Individual Grapes 5-15cm 229 Individual 5-10cm 6 Individual Sophora japonica 15 -20cm 1 Individual 30cm 4 Individual Cherry trees 5-10cm 5 Individual Chestnut trees 5-10cm 23 Ind ividual Source: Socio-economic survey November 2013

3. Socioeconomic Profile of Affected Areas

3.1. Socioeconomic Status 61. Tacheng City is located in the northwest of Xinjiang Uygur Autonomous Region (Xinjiang), the north of the Tian mountain, the northwest of Tarim Basin, and the south foothill of Taerbahatai. It has 4,356.6 km2 area with 155 km borderline. The northwest of Tacheng city borders with the Republic of Kazakhstan, east with Emin County, and south with Yumin County, 530 km away from Urumqi City, and only 12 km away from Baketu port, the national Class I port. According to “Tacheng City 2013 Statistical Bulletin”, by the end 2012, the total population of the city is 153,000 people and ethnic minority people account for 40.92%, mainly including Kazak, Hui, Uygur, Mongolian and other 21 different ethnic minorities. 62. Ergong Township is located in the outskirts of Tacheng City, surrounding the city. It governs 18 administrative villages and a pasture, covering 450 km2 with 5,873.3 hectare cultivated land, 2,666.67 hectares pasture, 953.3 hectares forest land area of, and with a population of 32,000, including 15,600 rural population, consisting of Han, Kazak, Hui, Uygur, Russia, Kirgiz and other ethnic groups. By the end 2012, farmers and herdsmen per capita annual income reached 11,490 Yuan. 63. Bali village has a population of 357 (121 households), consisting of Han, Mongolian, Li, Hui, Uygur and other ethnic groups. The village is located in the west of Ergong Township, covering an area of 1,860 mu cultivated land, in which corn is mainly planted, and the per capita land reached 7 mu. By 2012, per capita annual income achieved 10,364 Yuan. 64. Takensi village is located in the southwest of Tacheng City, consists of 5 village groups, with a population of 1,077 (392 households), including Han, Hui, and Uygur, covering an area of 7,000 mu cultivated land, and per capita land reached 6 mu; corn and da gua (a kind of watermelon) are vastly planted, and per capita annual income achieved 9,000 Yuan. 65. Shangtakensi village has a population of 515 (206 households), consisting of Han, Uygur, Hui, Dongxiang, Mongolian, Russia and other ethnic groups, is located in the west of Tacheng City, covering an area of 1,780 mu cultivated land, and the per capita land reached 4 mu. By 2012, per capita annual income achieved 11,543 Yuan. 66. Mayihai village has a population of 487 (158 households), consists of Uygur, Hui, Ha and other ethnic groups. Its total area of cultivated land is 3,750 mu, and the per capita land reaches 8 mu. Main crop are corn, hops and so on. 67. Sazi village has a population of 1,250 (434 households), including 887 labors, consisting of Han, Hui, Uygur Dongxiang and Kazakhs, is located in the northwest of Ergong Township, covering a land area of 1,860 mu, including 560 collective land，in which corn and da gua (a kind of watermelon) are mainly planted. By 2012, per capita annual income reached 10,086 Yuan. 68. Yuanyichang is a state-owned agricultural farm managed in way of enterprise. In December 2000, Yuanyichang was combined into administrative jurisdiction of Ergong Town, but its business operation and management, and land property are not changed. Yuanyichang has 5,000 mu of cultivated land and population of 2,655 from 417 households, includes Han, Hui, Russia, Mongolian, Uygur and other ethnic minorities.

3.2. Socioeconomic Profile of Affected People 69. All of affected 450 AHs were surveyed. Detailed results of the household survey are presented in Table 3-1.

Figure 3-1: Socioeconomic Questionnary Survey on Affected People 3.2.1 Affected population 70. The demographic characteristics of the APs are shown in Table 3-1, including different gender, age, population composition, education and occupation. Among which, 780 are male, and 746 are female; and 1,306 is Han, 137 Hui, 55 Uyghur, 11 Dongxiang, 7 Mongolian, 7 Ha, and 3 Xibo.

Table 3-1: Demographic Profile of Suveyed Households

Men Women Total Type Qty. % Qty. % Qty. % Households 450 Average population 3.4

Age

≤6 24 1.57% 21 1.38% 45 2.95% 7-19 80 5.24% 98 6.42% 178 11.66% 20-35 215 14.09% 201 13.17% 416 27.26% 36-50 262 17.17% 244 15.99% 506 33.16% 51-60 115 7.54% 102 6.68% 217 14.22% 61-70 59 3.87% 56 3.67% 115 7.54% ≥71 25 1.64% 24 1.57% 49 3.21% Total 780 51.11% 746 48.89% 1526 100.00%

Ethnics Han 667 43.71% 639 41.87% 1306 85.58% uugur 30 1.97% 25 1.64% 55 3.60%

Men Women Total Type Qty. % Qty. % Qty. % Ha 3 0.20% 4 0.26% 7 0.46% Hui 70 4.59% 67 4.39% 137 8.98 % Dong Xiang 5 0.33% 6 0.39% 11 0.72% Mongolian 3 0.20% 4 0.26% 7 0.46% Xi Bo 2 0.13% 1 0.07% 3 0.20% Total 780 51.11% 746 48.89% 1526 100.00%

Education level Preschool 24 1.57% 21 1.38% 45 2.95% Illiterate or semiliterate 12 0.79% 15 0.98% 27 1.77% Primary school 192 12.58% 210 13.76% 402 26.34% Junior high school 352 23.07% 314 20.58% 666 43.64% Senior high school or technical secondary school 165 10.81% 132 8.65% 297 19.46% Junior college or above 35 2.29% 54 3.54% 89 5.83% Total 780 51 .11% 746 48.89% 1526 100.00%

Occupation Farming 431 28.24% 370 24.25% 801 52.49% Animal Husbandry 13 0.85% 12 0.79% 25 1.64% Industry 6 0.39% 4 0.26% 10 0.66% Commerce 14 0.92% 14 0.92% 28 1.83% Service Industry 5 0.33% 4 0.26% 9 0.59% Transportation 11 0.72% 0 0.00% 11 0.72% Teacher 1 0.07% 6 0.39% 7 0.46% Office 6 0.39% 0 0.00% 6 0.39% Student 95 6.23% 126 8.26% 221 14.48% Doctor 2 0.13% 4 0.26% 6 0.39% Retired 18 1.18% 22 1.44% 40 2.62% Unemployment 6 0.39% 15 0.98% 21 1.38% Workers 141 9.24% 138 9.04% 279 18.28% Other 7 0.46% 10 0.66% 17 1.11% Preschool 24 1.57% 21 1.38% 45 2.95% Preschool 780 51.11% 746 48.89% 1526 100.00%

Source: Socio-economic survey November 2013，Household sample: n=450 HHs，Population sample: n=1,526

3.2.2 Age 71. The age distribution reveals that 36-50 age groups for both men and women accounts for 33.16% of the total population; male for 17.17% and female for 15.99%; Secondly, 20-35 age groups accounts for 27.26 %, the other part, and 51-60 age group for 14.22%, this 3 groups constitutes the main labor force.

Figure 3-1: Age distribution of Affcted People 72. Based on the survey, many male family members over 60 and female over 55 are still engaged in social work. However the definition of actual Labor force should be defined in the section of 16 to 65 - year - old male and 16 to 60 years old female, who have stopped school education. According to this, the total number of labor force accounts for more than 74.64% of people surveyed.

3.2.3 Education 73. Among the APs, junior high school degree accounts for 43.64%; elementary school degree for 26.34%, high school / technical secondary school degree for 19.46%, and bachelor, or postgraduate degree or even more higher education degree for 5.83%. For APs with degree of secondary and higher education, the proportion of male slightly higher than that of female, while for college degree above, female’s is higher 1.3% than men’s. these statistics show that female’s education degree improved in the affected area, and it is need to be kept to pay more attention to female's rights in implementation of the project, as well as to employment skills training for female.

Figure 3-2: Education Lever Distribution of Affected People

3.2.4 Occupation 74. 52.49% of the APs specialize in crop production, only 1.64% of them, not specialized breeder, only breeding little cattle and sheep for dinner, work on small breeding, very small scale. 0.66% is engaged in the industry, mainly doing some processing related work at nearby factor; 1.83% takes on commercial activities, so-called opening small shop, or doing small business, to support household expenditure; and 18.28% go out to work during slack season.

Figure 3-3: Occupation Distribution of Affected People

3.2.5 Housing Conditions 75. The affected household has the largest house area of 395.78 m2, the minimum of 96.79 m2, and average house area is 248.67 m2, as presented in Table 3-2.

Table 3-2: Housing Condtions of Affected Households Standard Item Total HHs Min Max Average Deviation

Room 187 4 13 5.2 7.55

2 Area (m ) — 96.79 395.78 248.67 323.77

Source: Socio-economic survey, November 2013

3.2.6 Land Resources 76. The affected household has the largest farmland area of 103 mu, the minimum of 4 mu, and average farmland area is 28.17 mu per household, as presented in Table 3-3.

Table 3-3: Farmland Area of Affected Households Average Total cultivated land Item Type Min (mu) Max (mu) Households area per household (mu) Cultivated LA 292 4 103 28.17 land Source: Socio-economic survey, November 2013

3.2.7 Households Assets 77. All affected households have televisions and mobile phones with average 1.00 and 3.42, respectively. Fixed telephone and washing machine ownership are more than 85%, which, to some extent, reflects the inevitable requirement of modern life to families and individuals. Details of other family durable goods show in Table 3-4.

Table 3-4: Selected Households Assets of Affected Households

Possession Average qty. per Average qty. Item Household rate household per capita Air -condition 45 10.00% 0.10 0.03 Washing machine 42 9 95.33% 0.95 0.28 Refrigerator 370 82.22% 0.82 0.24 PC 215 47.78% 0.47 0.14 TV set 450 100.00% 1.00 0.29 Fixed telephone 384 85.33% 0.85 0.25 Cell phone 1540 342.22% 3.42 1.01 VCD/DVD 230 51.11% 0.51 0.15 Electric cooker 412 91.56% 0.92 0.27 Bicycle 411 91.33% 0.91 0.27 Electric cars 427 94.89% 0.95 0.28 Motorcycle 432 96.00% 0.96 0.28 Car 30 6.67% 0.07 0.02 Flush toilet 10 2.22% 0.02 0.01 Bath installation 10 2.22% 0.02 0.01 Source: Socio-economic survey, September 2013

3.2.8 Income and Expenditure 78. The APs’ income is mainly from farming or agricultural production. Their family members also are engaged in some non-farm work including small business to increase family income. Range and average of the household income and expenditure per capita of the 450 HHs are shown in Table 3-5.

Table 3-5: Economic Statistics of the Sample Households in 2012

Unit：Yuan/Year/HH Type HHs Item Min Max Average St.d Annual per capita income (yuan) 1,980 85 ,000 1,6741.23 11 ,590.55 APs 450 Annual per capita expenditure (yuan) 1,271 43 ,097.50 10 ,357.76 4,483.29 Source: Socio-economic survey, September 2013

79. From Table 3-6, the average household income of the APs is mainly from farming, accounting for 45.16%. The second is from migrant work and wage, accounting for 32.89% and 6.13%.

Table 3-6: Average Household Income Sources of Affected Households in 2012

Unit：Yuan/year/HH Livestock Private Migrant Items Farming Business Wages Other Total Raising business work APs 23 ,536 1,766 1,326 17 ,142 4,642 3,196 510 52 ,118 Proportion 45.16% 3.39% 2.54% 32.89% 8.91% 6.13% 0.98% 100.00% Source: Socio-economic survey, September 2013

80. Table 3-7 showed the composition of average household expenses of the AHs. The expenses on living and investment in agricultural production are accounted for large proportion, 35.10 and 36.48%, respectively.

Table 3-7: Average Household Expenditure Pattern of Affected Households in 2012 Item Average household (Yuan) Proportion Water expenses 92 0.25% Electricity expenses 797 2.20% Heating expenses 1,990 5.49% Investment in agriculture 13 ,220 36.48% living expenses 12 ,721 35.10% Educational expenses 3,466 9.56% Medical expenses 546 1.51% Clothing expenses 1,306 3.60% Traffic expenses 481 1.33% Communication expenses 773 2.13% Social activity expeenses 847 2.34% Total 36 ,239 100.00% So urce: Socio-economic survey, September 2013

3.3. Gender Analysis

3.3.1. Gender Differences in Education 81. It is shown that 43.64% affected family members received junior high school education, female accounting for 23.07% and male for 20.58%; 26.34% affected family members received primary school education, the proportion of female higher 1.18% than the male; college degree or above higher education accounts for 5.83%, among them the proportion of female higher 1.25% than the male.

Figure 3-4: Education Level Difference between Men and Women

3.3.2. Gender Difference in Occupation and Income 82. It is shown that the proportion of women dealing with agriculture, business, industry and short-term labor, and working at government agencies or public institutions are slightly lower than those of men. In most farming households, men usually work elsewhere or locally in the slack season, and would return home for farming in the busy season.

Figure 3-5: Occupation Difference between Men and Women

83. In order to better identify the income level of the affected male and female laborers, 30 AHs were sampled randomly during the survey. The result showed that the average of annual income of male laborers was 25,386 yuan, while it was 17,509 yuan for female laborers. It is explained that men work outside for non-farm activities longer than women, while female engaged in agricultural production activities at home more than men.

Table 3-8: Income Difference of Male and Female Laborers in 2012

Item Sample Min Max Average St.d

Male annual income per capita 30 8,750 55 ,300 25 ,386 11 ,708.02 (yuan) Female annual income per 30 4,500 36 ,000 17 ,509 7,624.57 capita (yuan) Source: Socio-economic survey, September 2013

84. In the annual income interval of below 15,000 yuan, men’s average income differs slightly from that of women. In the annual income interval of 15,000-35,000 yuan, men’s average income is much higher than that of women. It is because male laborers mostly deal with business or high-pay jobs and earn more income, while women mostly do housework at home, and have less time and chances to earn more money.

45000

Male Income 40000 Female Income 35000

30000

25000

20000

15000

10000

5000

0 1 2 3 4 5 6 7 8 9 101112131415161718192021222324252627282930

Figure 3-6: Income Difference of Male and Female

85. Table 3-9 showed the proportion of women’s income in household total income among 30 sampling households with female labor (doing farm work mainly, and some dealing with services). The average women’s income is accounted for 20%-80% of total household income, averaging 47%. This shows that women’s economic status is improving. Therefore, great attention should

be paid to the protection of women’s rights during project implementation.

Table 3-9: Construction of Women’s Income to Household in 2012 Item Sample Min Max Average St.d Proportion of women’s 30 20% 80% 47% 0.15 income in household Source: Socio-economic survey, September 2013

3.3.3. Summary 86. In urben households, more and more women begin to earn income, and have a greater voice on important household matters, such as children’s education and housing purchase. They also assume the responsibility of taking care of children and doing housework. Women would take part in social activities like men do in leisure time. 87. Except regular housework (e.g., cooking, cleaning, shopping daily necessities), female residents also do farm work in order to secure household income and maintain livelihoods together with men. 88. Women engaged in stockbreeding mostly play a major role in the routine raising and management of livestock and poultry, while men are responsible mainly for the purchase of feeds, marketing of products, maintenance of stables and disease prevention. Of course, women engaged in stockbreeding sometimes unavoidably do such housework as cooking and cleaning, while men sometimes work locally or elsewhere to increase household income. 89. According to the survey, women’s concerns about resettlement are essentially the same as those of men, regardless of their occupation: (i) Compensation for houses should be available timely, and the location of resettlement housing and resettlement program should be rational. (ii) Resettlement housing should be located beside roads for the convenience of going to work, doing business and going to school. (iii) The living environment for resettlement housing should be better so that they can adapt to urban life more conveniently. (iv) Jobs generated by the project should be provided to women so that they participate in the project.

4. Legal Framework and Policies 4.1. Laws Regulations and Policies Applicable to Resettlement 90. The resettlement policies of the project have been developed in accordance with the laws and regulations of the PRC, and ADB’s policies, including: ADB policies:

 Safeguard Policy Statement (2009), Safeguard Requirement 2: Involuntary Resettlement  Gender and Resettlement Analysis(2006) Laws and regulations of the PRC

 Land Administration Law of the PRC (effective from January 1, 1999, amended on August 28, 2004)  Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28) (effective from October 21, 2004)  Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (MLR [2004] No.238) (effective from November 3, 2004)  Property Law of the PRC (Decree No.62 of the PRC, effective from October 1, 2007)  From 21 January 2011 to implement on state-owned land" (Issued by People's Republic of China State Council No. 590, effective from January 21, 2011)  Note of " The levy assessment approach for the houses on state-owned land ", CB[2011] No. 77 Policies of XUAR

 Measures of XUAR for the Implementation of the Land Administration Law of the PRC (XUAR People’s Congress [1999] No.913, effective from October 1, 1999)  Notice on the Uniform AAOV Rates for Land Acquisition of XUAR (XPPH [2001] No.500] of the XUAR Development Planning Commission and Department of Finance  Reply on the Uniform AAOV Rates for Land Acquisition of XUAR (XG [2010] No.323)  Notice on the Implementation of the Reply of the XUAR Government on Approving the Uniform AAOV Rates for Land Acquisition (XFR [2011] No.161)  Notice on Implementation of Autonomous Unified Annual Output Value Standard " (new MLR [2011] No. 19)  Xinjiang Uygur Autonomous Region to implement "state-owned land on the housing levy and Compensation Ordinance " approach (Xinjiang Uygur Autonomous Region People's Government Order No. 187, effective since January 1, 2014.  Notice of Amendment "Tacheng City landless farmers employment training and social life insurance implementation approach" (Tacheng government [2013] No.59) 4.2. ADB’s Policy Requirement on Involuntary Resettlement 91. The obectives of ADB's Involuntary Resettlement Policy are (i) If possible, involuntary resettlement should be avoided; (ii) If resettlement is unavoidable, all feasible options should

be explored and the scope of resettlement should be as small as possible; (iii) Ensure that the displaced persons have the same economic and social conditions before and after the project; and (iv) Improve the living standard of displaced poor and other vulnerable groups.. 92. Involuntary resettlement is an important part of the project design and resettlement plans. Planning and implementation should take into account the following basic principles: (1) Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning through a survey and/or census of displaced persons, including a gender analysis, specifically related to resettlement impacts and risks. (2) Carry out meaningful consultations with affected persons, host communities, and concerned nongovernmental organizations. Informally displaced persons of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs. Pay particular attention to the needs of vulnerable groups. Support the social and cultural institutions of displaced persons and assist the local population in the resettlement area (3) Improve or at least remain, the livelihoods of all displaced persons through (i) land-based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible. (4) Provide physically and economically displaced persons with needed assistance, including the following: (i) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required. (5) Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards. In rural areas provide them with legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing. (6) Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status. (7) Ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of non-land assets. (8) Prepare a resettlement plan elaborating on displaced persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. (9) Disclose a draft resettlement plan, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders. (10) Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of the project’s costs and

benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation. (11) Pay compensation and provide other resettlement entitlements before physical or economic relocation. Implement the resettlement plan under close supervision throughout project implementation. (12) Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and whether the objectives of the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports. 4.3. Differences between ADB and PRC Policies 93. Generally speaking, there are many similarities between the ADB’s involuntary resettlement policies and the PRC’s LAR policies, which include:  Both of them address importance to avoid or reduce resettlement impacts during the planning and design stage of a project;  Both of them address importance of the restoration and improvement of the livelihood of APs;  Both of them address importance of the openness and transparency of the resettlement policies;  Both of them address importance of the participation and awareness of the public during resettlement;  Both of them require that the formulation and implementation of the resettlement compensation standard must be in accordance with relevant national laws, regulations and policies. 94. However, there are still some differences in some aspects between ABD’s involuntary resettlement policies and the PRC’s LAR policies, which include:  ADB addresses more importance of the planning prior to the implementation of resettlement, and it requires that a feasible RP to be prepared in accordance with ADB’s involuntary resettlement policies;  The ADB’s resettlement policies ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of non-land assets at replacement costs. However, the LAR policies of the PRC provide a different compensation policy to unlicensed structures;  ADB has specific and clear requirements on public participation and public opinion polls surveys, such as consultation and information on compensation standards must be published;  ADB policy requires that the compensation should be sufficient to any losses and restore long-term revenue potential. Chinese standards are based on the average annual output value.  ADB addresses more importance of the special care extended to the vulnerable people during resettlement; and  ADB addresses more importance of monitoring and evaluation during and after resettlement implementation.

95. Based on the above analysis, during preparation for the LAR, this project have taken full account of the relevant policies of ADB and the following measures:  The preparation of the Project and RP must be based on concrete social economic survey, physical impact survey, detail social analysis;  Special cares must be given to vulnerable people including poor, women, during preparation and implementation of the LAR;  Make compensation at replacement value to buildings without titles to land constructed before the cut-off date;  After compensation to the AP(s) for land loss, the further technical training, public employment, job support should be provided to APs to restore their sustainable livelihoods;  Publish the RP and resettlement information booklet (RIB) in accordance with requirements of ADB; and  Establish internal and external monitoring systems for the LAR and conduct monitoring and evaluation during and after implementation of the RP. 96. With the above measures, the ADB’s resettlement policies and the PRC’s LAR policy gaps will be bridged and the smooth implementation of the LAR will be guaranteed. 4.4. Eligibility and Beneficiaries 97. The cut-off date for eligibility for the compensation is January 31, 2015 on which Tacheng City government confirms the RP. Any newly claimed land, newly built house or settlement in the project area by the APs after this date will not be entitled to the compensation or subsidization. 4.5. Compensation Rates

4.5.1. Compensation Rates for State-owned Land 98. The project is of construction of public utilities, so the state-owned farm land and unused land will be allocated by transferring land use right after payment for relevant fees, based on the document of Development and Planning Commission of XUAR, Ministry of Finance [new pricing room (2001) 500]. For the state-owned unused land and farm land should pay for new construction use fee (16 yuan/m2). For the allocated state-owned land, land use rights will be acquired according to the document of Development and Planning Commission of XUAR, Ministry of Finance [new pricing room (2001) 500] paying leasing fees at a rate of CNY 10-20/m2. The Project will involve acquisition of state-owned land in the built-up area of Tacheng City, and the compensation rate is CNY 20/m2, for the state-owned unused land should pay non-agricultural construction allocated unused land management fee 50 yuan/mu. 99. For state-owned of public institution land and state-owned homestead land, according to the regional level of land use right type, land use and the use of life purpose, reference Tacheng city land standard (2013) to compensate, as shown in Table 4-1.

Table 4-1: Standards of Compensation for Arable Land in Tacheng City:

Unit:Yuan/m2 Level Commercial Land Residential Land Industrial Land

Grade I 620 320 260 Grade II 480 260 190 Grade III 290 190 150 Grade IV 180 140 125 Source: Tacheng Land and Resource Bureau

4.5.2. Compensation Rates for Cultivated Land 100. According to the “Reply on the Uniform AAOV Rates for Land Acquisition of XUAR (XG [2010] No.323)” and the Implementation of Autonomous Public Notice on Unified Annual Output Value Standard (XL&R issued [2011] No.19, compensation is paid, and the compensation standards for cultivated land are showed in Table 4-2. Table 4-2: Unified Annual Output Values of Collective Land Degree Grade I collective land Grade II collective land Grade III collective land Annual Output 1,500 800 600 Value (yuan/mu) 1. This table standard applies to arable cultivation of food crops. 2. The annual output value of farmland planted specialty crops, vegetable, orchard farmland should be higher than the first-class standard table; cotton fields should Note be paid at maximum of 1.5 times; orchard may not exceed two times; vegetable may not exceed three times; grapes ground shall not exceed 4 times. Other crops actual annual output estimates Source: Tacheng Land and Resource Bureau

Table 4-3: Times of Basic Compensation Rates

Per capita cultivated land (mu) Times of unified annual output values Above 3.0 mu 12-13 2.0-3.0 14-16 1.0-2.0 17-20 Less than 1.0 mu 30 times the sum of land compensation and resettlement subsidy

Source: Tacheng Land and Resource Bureau Note: the compensation after times of the sum of land compensation and resettlement subsidies must beyond 20 times of the compensation standard. It is generaly 8 times for land compensation.

101. For the state-owned agricultural land of Yuantichang, in accordance with the Implementation of Autonomous Public Notice on Unified Annual Output Value Standard (XL&R issued [2011] No.19, the land compensation is eight (8) times of 1,500 yuan/mu for the general farmland, and 3,000 yuan/mu for the orchard, and 3,000 yuan/mu for the hops land; the resettlement subsidy is 20 times of 1,500 yuan/mu or 3,000 yuan/mu for different lands as presented in Table 4-4 in details.

Table 4-4: Compensation Standards of State-owned Cultivated Land Compensation standard (yuan/mu) Type Land Resettlement Young corps Total compensation subsidy Cultivated land 12,000 30,000 1,500 43,500 (general farm land) Compensation will be paid 84,000 as Orchard 24,000 60,000 according to species and basis diameters of fruit trees Compensation will be paid 84,000 as Hops Land 24,000 60,000 according to species and basis diameters of trees Source ：Tacheng Land and Resource Bureau 102. Compensations for young crops: (i) general farm young crops compensation will be paid according to the crops on ground, if no crops on ground, it will not be compensated. And it is 1,500 yuan/mu as the compensation standard for planting crops; (ii) the compensation will be paid according to species and diameters of trees of orchards and hops; and (iii) ground attachments will be compensated in accordance with the actual input costs. 103. All the land compensation and resettlement subsidy for Yuanyichang Farm will be paid to the farm management committee, while the compensation for young crops will be paid to the affected households directly according to the actual impact scope. The land compensation and resettlement subsidy will be used for the farm development and welfare of all staffs of the farm. 104. In addition to these costs, for the occupied state-owned arable land, land reclamation and land resettlement management fee will be paid to the local land administration department, cultivated land reclamation fee is 3,000 yuan/mu, and arable land occupation tax is 15 yuan/m2, and land resettlement management fee account for 3-4% of the total allocation fee.

4.5.3. Compensation Standard for Collective Cultivated Land 105. Compensation for collective cultivated land is paid according to the Reply on the Uniform AAOV Rates for Land Acquisition of XUAR (XG [2010] No.323) and Implementation of Autonomous Public Notice on Unified Annual Output Value Standard (XL&R issued [2011] No.19, 106. For the collective cultivated land, the compensation is calculated and paid according to the land grade, varieties of crops and times of basis of different types of land (usually 1,500 yuan/mu for general farmland, and 3,000 yuan/mu for orchard, 3,000 yuan/mu for hops land, and 4,500 yuan/mu for vegetable land). Per capita amount of arable land of all affected villages of Tasiken, Shangtasiken, Mayihai, Bali and Wuli is over 3 mu, so the compensation is in multiples of 12-13 times of the basis. According to the public consultation of the PMO, the local land and resource bureau and the affected vllages, the land compensation, resettlement subsidy and young crop compensation for diffrernt lands are presented in Table 4-5.

Table 4-5: Compensation Standards of Collective Cultivated Land Compensation standard (yuan/mu)

Type Resettlement Land compensation Young corps Total subsidy

General farm 12 ,000 25 ,500 1,500 39 ,000 land Vegetable land 36 ,000 76 ,500 4,500 117,000

Compensation will be paid according to 75,000 as Orchard 24 ,000 51 ,000 species and diameters basis of fruit trees.

Compensation will be paid according to 75,000 as Hops Land 24 ,000 51 ,000 species and diameters basis of hops trees.

SourceTacheng Land and Resource Bureau 107. Compensations for young crops: (i) general farm young crops compensation will be paid according to the crops on ground, if no crops on ground, it will not be compensated. And it is 1,500 yuan/mu as the compensation standard for planting crops; (ii) the compensation will be paid according to species and diameters of trees of orchards and hops; and (iii) ground attachments will be compensated in accordance with the actual input costs. 108. All of resettlement subsidy, the compensation for young crops and ground attachments will be paid to the affected households directly, while the land compensation will be paid to the village committee first, in accordance with Article 26 of the "Regulations for the Implementation of Land Administration Law"-The land compensation paid to the rural collective economic organizations", and later all the villagers will have meetings to discuss how to use the compensation. All the compensation for occupied various collective land and uncontracted land of collective village will be paid to the village collective directly.

4.5.4. Compensation Standard for Woodland 109. The project acquired 20.19 mu woodland, which includes collective shelterbelts for farmland and collective sporadic woodland. The woodland will be compensated based on the Notice on the Implementation of the Reply of the XUAR Government on Approving the Uniform AAOV Rates for Land Acquisition (XFR [2011] No.161) issued by the XUAR Department of Forestry and Notice on the implementation of unified annual output value standard of XUAR" (XLRB issued [2011] No.19, as presented in Tables 4-6 and 4-7.

Table 4-6: Compensation Rate for State-owned Woodland Compensation rate (yuan/mu) Land type Compensation fees for Resettlement subsidy Total woodland for woodland Arbor forest 12,000 25,500 37,500 Source Tacheng Land and Resource Bureau

Table 4-7: Forest Vegetation Restoration Fees

Land type Forest vegetation restoration fees (yuan/m2) Shelterbelts for farmland 8 Timber or economic forest 6 Source Tacheng Land and Resource Bureau

110. For acquired state-owned arbor trees, forest compensation fees, woodland compensation fees, resettlement subsidies and forest vegetation restoration fees will be paid to the department in charge of forestry of the government at or above the county level according to the Xinjiang Uygur Autonomous Region, management approach on audit approval for forest land occupation. According to Notice on the implementation of unified annual output value standard of XUAR (issued by XLRB [2011] No.19, the land compensation is 8 times of the based compensation standard (basis: 1,500 yuan/mu); the resettlement subsidy is 17 times of the basis. The compensation for trees will be paid according to species and diameters of trees. In addition, shelterbelt forest restoration fee is 8 yuan/m2, timber forest and economic forest vegetation restoration fee is 6 yuan/m2. The forest vegetation recovery fee (both shelterbelt and timber and economic forest) will be disbursed to the Forestry Bureau of Tacheng, and then handed to Forestry Department of Xinjiang. The other three compnesations (land compensation, resettlement subsidy and compensation for trees) will be paid to the affected village collective and individual. New construction land compensation fee (16 yuan/m2) will be paid to the Land and Resource Bureau. 4% of the total land acquisition cost will be charged as land acquisition management fee.

4.5.5. Collective Construction and Unused Land Compensation 111. This project will acquire collective construction land and unused land of 36.70 mu, which are village collective land. According to Notice on Implementation of Unified Annual Output Value Standard of XUAR (issued by XLRB [2011] No.19, the village collective unused land and construction land will be compensated as Class III land (basis 600 yuan/mu) and eight times of the basis. So the land compensation fee is 4,800 yuan/mu in total. The land compensation will be paid to the village committee first, and later all the villagers will have meetings to discuss how to use the compensation.

4.5.6. Compensation Standard for Collective Homestead 112. For permanent acquisition of collective homestead, the compensation standard is referring to Tacheng City District Benchmark Premium in 2013, and the specific compensation standards are shown in Table 4-8.

4.5.7. Compensation Standard for Residential House Demolition 113. HD compensation will be in accordance with the Acqusition and Compensation Ordinance for Houses on State-owned Land promulgated by Xinjiang Uygur Autonomous Region People's Government on January 1, 2014. full consultation with APs will be conducted and the real estate market price fluctuation of the houses will be considered. The final compensation price will be

deternimated according to results of a housing real estate appraisal and survey company after the on-site assessment. The HD compensation includes not only compensation for housing structure but also the state-owned residential land and homestead compensation. Specific compensation standards are shown in Table 4-8. Table 4-8: Compensation Standard of Residential House Demolition Standard Type Structure Unit Remark (yuan) Masonry concrete yuan/m2 2,900

2 Color-coated steel yuan/m and Masonry 2,850 concrete Main House 2 Color-coated steel yuan/m 2,850

Masonry timber yuan/m2 2,850

Earth timber yuan/m2 2,800

Masonry concrete yuan/m2 1,500

Wing Room Masonry timber yuan/m2 1,300

Earth timber yuan/m2 1,250

Masonry concrete yuan/m2 1,000

2 Color-coated steel yuan/m 750

Masonry timber yuan/m2 800 Affiliared House Earth timber yuan/m2 750

2 Earth timber and yuan/m 800 outsourcing brick

2 Color-coated steel yuan/m 350

yuan/m2 Color-coated steel 350 Sheds Masonry concrete

Masonry timber yuan/m2 400

Earth timber yuan/m2 350

Standard Type Structure Unit Remark (yuan) Timber yuan/m2 250 2 Color-coated steel yuan/m 200 Simple sheds Masonry timber yuan/m2 200

Masonry concrete yuan/m2 1,200

yuan/m2 Color-coated steel 1,150 Stables Masonry timber yuan/m2 1,150

Earth timber yuan/m2 1,100

Land compensation

2 Class I yuan/m 320 Only State-owned 2 compensate residential land and Class II yuan/m 260 for the vacant homestead Class III yuan/m2 190 land in yard. Class IV yuan/m2 140 Other Compensation Moving Subsidy HH 1,000 Calculated in Temporary transitional subsidy HH/month 200 18 months Source: Tacheng City House Demolition Management Office

4.5.8. Compensation Standard for Public Institution 114. HD compensation standards of public institution are shown in Table 4-9. The compensation price of housing real estate appraisal will be carried out on-site by a housing real estate appraisal and survey company. The appraisal results will be consulted with the affetced institutions. Table 4-9: Compensation Standard for Public Institution Structure Unit Standard (yuan) Remark yuan/m2 Masonry concrete 1,600 yuan/m2 Color-coated steel 1,450 yuan/m2 Masonry timber 1,450

2 Earth timber yuan/m 1,300 Compensation for Land

Structure Unit Standard (yuan) Remark

Commercial Land Grade IV yuan/m2 180

Industry land Grade IV yuan/m2 125

Residential land and yuan/m2 Grade IV 140 homestead

Other Compensation

Moving Subsidy HH 2,000

There is no transition subsidy, Temporary because it will not

transitional subsidy be demolished until operations getting normal, Source ： From Tacheng City House Demolition Office in November 2014

4.5.9. Compensation Rates for Commercial Stores 115. The project will affect five shops with five people. The HD area is 276.42 m2. Demolished shops were mainly located in both sides of the new constructed roads in rural residential area; According to the preliminary appraisal and location of affected shops, the compensation standards are presented in Table 4-10. Table 4-10: Compensation Rates for Commercial Stores Structure Unit Standard (yuan) Remark Masonry concrete yuan/m2 2,000 Compensation for Land State-owned Residential land Grade IV Yuan/m2 140 and homestead Other Compensation Moving Subsidy HH 1,000 Temporary Calculated in 18 transitional HH/Month 200 months subsidy

Source ： From Tacheng City House Demolition Office in November 2014

4.5.10. Compensation Rates for Atttachments 116. Compensation standards of attachments and special facilities affected by the project are shown in Table 4-11.

Table 4-11: Compensation Rates for Attachment and Facilities Compensation Items Amount Owner standard Well set 36 1,200 Individual Sewage pit unit 9 800 Individual Crusty pancakes pit unit 8 500 Individual Vegetable cellar set 10 300 Individual <5cm 40 18 Individual 5-15cm 77 35 Individual Elm 15 -30cm 59 100 Individual >30cm 3 120 Individual 5cm 10 ,600 20 Individual 5-15cm 309 40 Individual Poplar 15 -30cm 720 60 Individual 30cm 17 80 Individual Willow 5-15cm 4 40 Individual 5cm 378 40 Individual 5-15cm 274 60 Individual Apple tree 15 -30cm 629 80 Individual 30cm 571 100 Individual Jujube tree 5-15cm 20 60 Individual Sand jujube 15 -20cm 6 18 Individual Walnut tree 5-15cm 11 100 Individual 5-10cm 42 40 Individual Pear 15 -20cm 10 80 Individual Peach trees 5-15cm 19 80 Individual 5-10cm 17 40 Individual Plum tree 15 -30cm 39 60 Individual 5-10cm 7 20 Individual Apricot 15 -20cm 9 40 Individual 30cm 8 80 Individual 5-15cm 86 40 Individual Ash tree 30cm 2 60 Individual Vines 5-15cm 229 80 Individual 5-10cm 6 20 Individual Ash 15 -20cm 1 40 Individual 30cm 4 80 Individual Cherry tree 5-10cm 5 40 Individual Chestnut 5-10cm 23 40 Individual Source ： From Tacheng City House Demolition Office in November 2014

4.6. Entitlement Matrix Table 4-12: Entitlement Matrix Type of Impact APs Entitlements Compensation Policy and Rates Impact Scope 1 Rights: (i) land compensation will be paid to village collective economic organizations, while both resettlement subsidy and crop compensation will be paid to the APs when chose the monetory 840.74 mu, compensation; 193 HH with (ii) landless 646 people, farmers can 28 HHs including 43 participate in (i) For the general farm land, land compensation rate is with 103 HH with 137 social 12,000 yuan/mu; resettlement subsidy is 25,500 people in ethnic insurance; (iii) yuan/mu; and young crop compensation is Wuxing people. during project 1,500yuan/mu. The total is 39,000 yuan/mu; Village; 38 construction, (ii) For the vegetable land: land compensation rate is HHs with The land the PMO will 36,000 yuan/mu; resettlement subsidy is 76,500 127 people Permanent includes provide yuan/mu; and crop compensation is 4,500 yuan/mu. in Bali Acquisition farmland of unskilled job The total is 117,000 yuan/mu; Village; 64 of Collective 360.32 mu, priority to APs, (iii) For the orchard: Land compensation rate is 24,000 HHs with Land orchards of so that the APs yuan/mu; resettlement subsidy standard is 51,000 217 people 200.01 mu, will generate yuan/mu; the compensation would be paid according to in Tasiken the hops of cash income; the species and the diameters of the trees. Village; 63 50.25mu and (iv) the (iv) Way of compensation: (a) in accordance with the land HHs with vegetable land PMO will compensation standard autonomous conduct cash 199 people of 15.49 mu, provide compensation; (b) landless farmers can participate in in Mayihai shelterbelts technical social insurance. Village and sporadic training for APs, and woodland inviting the of 20.19 mu. technical staffs from agricultural sector and the labor and social security bureau to carry out trainings on farming and non-agricultural production, and make sure all APs received the training at least 2 times.

Measures to restore the

Type of Impact Impact Scope APs Entitlements Compensation Policy and Rates livelihood of APs include: (i) with the help of cash compensation, APs can engage in non-agricultural activities, such as transportation or business; (ii) landless farmers can participate in social insurance, to maintain their income level; (iii) adjusting the agricultural structure, via the guidance and technical training from government, to expand the acreage of cash crops, and (iv) develop family breeding to improve the economic income. 2 Rights: (i) Land compensation and resettlement subsidy in 100% will be 348.16 mu paid to the from state-owned Yuanyichang, farmland (i) For the general farm land, land compensation rate is 99 HH with management 12,000 yuan/mu; resettlement subsidy standard is 320 people 99 HHs committee; 30,000 yuan/mu; and crop compensation is 1,500 were affected, with 320 while crop yuan/mu. The total is 43,500 yuan/mu; including 5 HH Permanent people in compensation (ii) For the orchard and the hops: land compensation rate with 19 ethnic Acquisition Yuanyichan in 100% will is 24,000 yuan/mu; resettlement subsidy standard is groups. of g Farm and be paid to the 60,000 yuan/mu; the compensation would be paid

State-owned the farm APs; (ii) APs according to the species and the diameters of the The land Land manageme can get the trees. includes nt same area of (iii) Way of compensation: (a) in accordance with the land farmland of committee arable land compensation standard autonomous conduct cash 131.21 mu, with equal compensation; (b) regain the same area of arable land orchards of quality by with equal quality by land reallocation. 103.07 mu, reallocation of the hops of the farm; (iii) 113.88 mu During project construction, the PMO will provide unskilled job priority to APs; and (iv) the

Type of Impact Impact Scope APs Entitlements Compensation Policy and Rates PMO will organize technical training for APs, inviting the technical staffs from agricultural sector and the labor and social security bureau to carry out trainings on farming, husbandry, non-agricultur al production, and others related, to make sure all APs received at least 2 times training.

3 Measure s to restore the livelihood of APs include: (i) with the help of cash compensation , APs can engage in non-agricultur al activities, such as transportation or business; (ii) adjusting the agricultural structure, via the guidance and technical training from government, to expand the acreage of cash crops, and develop family breeding to improve the economic income; and (iii) from the technical training to improve the

Type of Impact Impact Scope APs Entitlements Compensation Policy and Rates economic income.

(i) Cash compensation. (a) house compmesation: Main house: brick and concrete structure is at 2,900 yuan/m2, colored steel brick and concrete structure at (i) to assess the 2,850 yuan/m2, colored steel structure at 2,850 price to obtain yuan/m2, brick structure at 2,850 yuan/m2, earth and housing at wood structure at 2,850 yuan/m2; Wing room: brick replacement and concrete structure at 1,500 yuan/m2, brick and value wood at 1,300 yuan/m2, earth and wood at 1,250 compensation; yuan/m2; Affiliared house: brick and concrete at (ii) voluntarily 1,000 yuan/m2, colored steel at 750 yuan/m2, brick 60,106.29 m2， choose and wood at 800 yuan/m2, earth at 750 yuan/m2, earth including resettlement and wood structure with brick outside is 800 yuan/m2; brick-concrete methods, Sheds: colored steel at 350 yuan/m2, brick and of 20,973.34 including concrete and colored steel at 350 yuan/m2, brick and m2，colored monetary wood at 400 yuan/m2, earth and wood at 350 yuan/m2, steel and compensation, wood structure at 250 yuan/m2; Simple sheds: brick-concrete 187 HHs property right colored steel at 200 yuan/m2, brick at 200 yuan/m2; of 2,823.02 with 660 exchange, Pens: brick and concrete at 1,200 yuan/m2, colored m2; colored people in 6 allocation of steel at 1,150 yuan/m2, brick at 1,150 yuan/m2, earth House 2 steel of villages, land on their and wood at 1,100 yuan/m . (b) Temporary transitional demolition 2; 6,519.16 m including own allowance: 200 yuan/month/person, moving subsidy: of brick-wood of Mayihai, construction, 1,000 yuan/ household. (c) State-owned residential residential 2 14,125.92 m ，Wuxing, Bali, buying cottage; land and homestead compensation: Class I land: houses 2 2 earth-wood of Tasiken, (iii) for APs who 320 yuan/m , Class II land: 260 yuan/m , Class III 11,791.46m2 Sazi, and like to live in flat land: 190 yuan/m2, Class IV land: 140 yuan/m2. earth-wood Mayihai house, they can (ii) Property right exchanges: the compensation price for and brick build new demolished houses will be determined based on outsourcing houses by house appraisal by a real estate appraisal and survey structure of themselves after company on-site, and plus moving subsidy, temporary 383.91m2, gettting the transition allowance, and land compensation fees, etc. wood structure allocation land; The compensation prices for demolished houses will of 3,489.48 m2 (iv) to get be compared with the resettlement house prices. If moving the compensation prices are higher than the subsidies, resettlement house prices, the IA will pay the temporary difference to APs in cash. Otherwise, APs will pay the transition costs, difference to IA for the resettlement houses. APs can relocation select different floors of resettlement houses incentives. (apartment) and different types of houses. The floor prices are different: ground floor: 2,600 yuan/ m2, second floor: 2,860 yuan/m2, third floor: 3,120 yuan/m2, fourth floor: 2,730 yuan/m2, fifth floor: 2,470 yuan/m2, and sixth floor: 1,820 yuan/m2. (i ) Receive 2 compensation 16 ,436.11 m ， for demolished 10 instititions, houses at including 6 out replacement of 10 to be Compensation standard: (a) brick and concrete is at 1,600 value after the 2 2 demolished yuan/m , colored steel at 1,450 yuan/m , brick and wood at House housing 2 2 completely, Enterprises 1,450 yuan/m , earth and wood at 1,300 yuan/m ; (b) Demolition appraisal; (ii) and 4 to be property moving subsidy at 2,000 yuan/enterprice; (c) land of Public receive land demolished owners compensation fee: commercial land (Class IV) 180 institution compensation 2 2 partly; 122 yuan/m , industrial land (Class IV) 125 yuan/m , residential and moving 2 workers will be land and homestead (Class IV) 140 yuan/m subsidies; (iii) affected, voluntarily including 22 chose ethnic workers resettlement types, including

Type of Impact Impact Scope APs Entitlements Compensation Policy and Rates (a) cash compensation, (b) construct new houses by themselves after receive monetory compensation, (c) construct new houses by themselves in a industrial zone according to unified planning; (iv) resettlement first and then house demolition.

(i ) Receive compensation for demolished houses at replacement value after the housing appraisal; (ii) receive land compensation, temporary Compensation standard: brick and concrete structure is at 2 transition 2 Affected 276.42 m ，5 2,000 yuan/m , temporary transition subsidy at 200 allowance and commercial shops with 5 Shop owners yuan/HH/month, moving subsidy at 1,000 yuan/home. Land moving shops people, compensation fee: residential land and homestead (Class subsidies; (iii) 2 IV) at 140 yuan/m voluntarily chose resettlement types, including (a) cash compensation, (b) property right exchange for resettlement commercial houses Besides the rights above, vulnerable people (i) will have priority in 1 HHs choose of floor, affected by apartment Vulnerable 2 HHs with 3 LA, 1 HHs pattern and Same as above Groups people affected by location of HD resettlement houses; (ii) will be provided unskilled job priority during project

Type of Impact Impact Scope APs Entitlements Compensation Policy and Rates construction; (iii) will be in priority to get the training on farming and non-agricultural production provided by agricultural sector and the labor and social security bureau; (iv) will benefit from a special fund in 7,000 yuan and be supported; (v) will receive a resettlement hosue in 50 m2 if they chose property right exchange in case of their demolished house is the only residential house and the construction area is smaller than 50 m2 (family of three people or less permanent residence) or in the number of family permanent residence, 13 m2 placement for each person; (vi) will be resettled in priority by municipal government if they are from low-income households and the demolished houses are their only residential houses in case they chose property right echanges. Ethnic 18 HHs with Besides the 66 HHs, with Minority 64 people rights above, Same as above 220 people Group affected by ethnic minority

Type of Impact Impact Scope APs Entitlements Compensation Policy and Rates HD only; 40 people (i) will HHs with have priority in 122 people choose of floor, affected by apartment LA only; 8 pattern and HH and 34 location of people resettlement affected both houses; (ii) can by HD and get the same LA. area of arable land with equal quality for affected minority people in Yuanyichang; (iii) will be provided unskilled job priority during project construction; (iv) will be in priority to get the training on farming and non-agricultural production provided by agricultural sector and the labor and social security bureau. Besides the rights in first column, the affected female people (i) will have priority access to project non-technical jobs employment; (ii) will enjoy the labor and Women 627 people 627 people Same as above training priorities; (iii) ensure that the resettlement process access to relevant information and be able to participate in consultation related to LAR issues. (i) Ground Ground Compensa Public attachment Attachments Property Items Amount tion Owner Facilities and (power poles and and Public owners standard trees fruit trees) Facilities compensation will Well Set 36 1200 Individua

Type of Impact Impact Scope APs Entitlements Compensation Policy and Rates be paid to the Sewage pit Unit 9 800 Individua owner; and (ii) the Crusty Individua compensation will pancakes Unit 8 500 be determined pit according to the Vegetable Individua set 10 300 replacement cost cellar and restoration <5cm 40 18 Individua shall be in 5-15cm 77 35 Individua accordance with Elm the original scale 15 -30cm 59 100 Individua and standards. >30cm 3 120 Individua 5cm 10600 20 Individua 5-15cm 309 40 Individua Poplar 15 -30cm 720 60 Individua 30cm 17 80 Individua Willow 5-15cm 4 40 Individua 5cm 378 40 Individua 5-15cm 274 60 Individua Apple tree 15 -30cm 629 80 Individua 30cm 571 100 Individua Jujube tree 5-15cm 20 60 Individua Sand jujube 15 -20cm 6 18 Individua Walnut tree 5-15cm 11 100 Individua 5-10cm 42 40 Individua Pear 15 -20cm 10 80 Individua Peach trees 5-15cm 19 80 Individua 5-10cm 17 40 Individua Plum tree 15 -30cm 39 60 Individua 5-10cm 7 20 Individua Apricot 15 -20cm 9 40 Individua 30cm 8 80 Individua 5-15cm 86 40 Individua Ash tree 30cm 2 60 Individua Vines 5-15cm 229 80 Individua 5-10cm 6 20 Individua Ash 15 -20cm 1 40 Individua 30cm 4 80 Individua Cherry tree 5-10cm 5 40 Individua Chestnut 5-10cm 23 40 Individua

All special facilities affected by the project are acquired reconstruction and rehabilitation. The PMO will (i) pay the compensation to Special Construction owners and Facilities institution owners are responsible for reconstruction of the special facilities; or (ii) include the cost for resoration of the facilities in the project

Type of Impact Impact Scope APs Entitlements Compensation Policy and Rates construction budget and civil contractors are responsible ofr the restoration. The owners can select one of ways after full consultation with the PMO.

5. Resettlement Measures 5.1. Objectives of Resettlement 117. The objectives of the project resettlement is to restore the AHs’ annual net income per capita to the pre-resettlement level and further improved with local economic development. 5.2. Principles for Resettlement Recovery Plan 118. According to the applicable laws and regulations of the PRC and ADB’s Policy on Involuntary Resettlement, the following basic principles will apply to the resettlement work of the Project: (1) Implement resettlement and the applicable compensation policies properly to improve or at least restore the production level and standard of living of the affected residents; (2) The affected people shall be fully consulted for resettlement programs; (3) The planning layout shall be determined on the principle of “facilitating production and life”; and (4) Resettlement shall be combined with the local urban development, resources development, economic development and environmental protection programs. Feasible measures shall be designed to restore and improve the displaced persons’ production level and standard of living, and create necessary conditions for their self-development. 5.3. Recovery plan for State-owned Land Acquisition 119. Yuanyichang Farm is a state-owned farm to develop agricultural comprehensive production. It has 5,000 mu of cultivated land, 1,000 mu of forest land, 1,000 mu of orchard, 2,500 mu of cultivated land, 500 mu of non-contracted land. The dominated agricultural production of the farm includes fruit, hops and facilities, mainly corn, hops and orchard such as apple, strawberries, and some vegetable production. By 2012, the whole population is 2,655 people and 417 households, including Han, Hui, Russia, Mongolian, Uygur and other ten ethnic groups. 120. Workers of the farm engage agricultural production on their contracted land to get income, while Yuanyichang does not pay salary to the workers. After reaching the retirement age, the workers will not have right to contract and use the arable land continually. According to the regulation and procedures, the management committee of the farm will assign and contract the arable land to other workers who are still on position in the farm. Retired workers will receive retirement wages in accordance with standands of basic pension insurance for urban workers. 121. This project will acquire 348.16 mu of Yuanyichang state-owned agriculture land permanently, accounting for 6.96% of the total arable land of the farm. The land compensation and resettlement subsidy for the land acquisition will be paid to the the farm management committee directly. The management committee will distribute the same area of arable land with the same quality to the affected workers. Yuanyichang has reserved 500 mu of non-contracted land that can be adjusted for the affected workers. 122. According to wishness survey on 99 affected households, all affected workers support the project. They undderstand they the land they are planting belongs to Yuanyichang, not belongs to the workers. However, they know Yuanyichang will adjust the non-contracted land to them with the same area and quality. Therefore, the land acqusition will affect little to them. However, they hope that the construction schedule will be noticed with six months in advance. If the construction start in the crop growing season, reasonable compensation for crop loss shall be paid to them. So the construction is better to be mobilized after crop harvest period. They also hope after land acqusition, some planting

technology training and instruction shall be provided, so that they can obtained bigger benefit from arable land. Part affected workers think based facilities of construction, sanitation and city environment can be improved, and also will led economic developing for Tacheng City, also will increased employment opportunities, while the project implementation period, they hope they have opportunity to participate in the project. 123. Accordng to the consultation with affected workers, resettlement measures are prepared to support affected workers’ improvement of livelihood and income, including: (i) Temporary employment: affected workers will be employed prioritly in the project during the project construction; (ii) Improvement of agricultural production structures: training on planting and poultry raising tequnics will be provided by relevant government departments, increasing cultivated farmland of economic crop planting, and developing household poultry raising; and (iii) Technical training: training on economic crop planting, poutry raining, non-agricutlure skills will be provided to affected households at least one time per household. 5.4. Summary of Restoration Program for Acquisition of Cultivated Land 124. In order to improve or restore their original production, living and income levels as soon as possible, in addition to pay the land compensation to the AHs, the PMO also developed a restoration plan on the basis of full consultation for the APs and in accordance with the status of the AHs. (1) APs will engage in non-agricultural activities via the cash compensation. With the improvement of urban functions and the increase of urban scale, Tacheng City's commercial and service industry has also been fast developed, and more and more people have engaged in these sectors. So the AHs can use cash compensation for commercial and service industry investment. For example: with the increase of urban area, and the improvement of road conditions, the demand for taxi is continually increased, and the affected villagers can use the compensation money to buy a car as taxi. They can also improve the income by renting the commercial houses with the cash compensation or engage in commercial activities, such as running a department store, or running a restaurant. (2) Participation in the land-losing farmers social insurance, ensure that living standard of the landless farmers is not reduced. Eligible farmers can incorporate urban residents in pension system and provide long-term reliable basic protection. 125. In order to work social life guarantees of affected farmers, in June 2013, Tacheng Government issued Notice on Amendment of Imolementation Methods of Employment Training and Social Security of Landless Farmers of Tacheng City (Tacheng Government issued No.59 [2013]). This project will be implemented for affected farmers as according to this notice, and the specific approach is as following: (1) Landless farmers’ social security scope  All farmers whose rural collective farmland is acquired by the government in accordance with releventa laws and is lost completely, mostly or partially within the urban planning area, and their ages are in range of labors (over16 years old, less than 60 years old, regardless of gender) and those can enjoy the second round of rural collective land contract right of registered agricultural population. (2) Land-losing farmers’ social insurance approach  Within the planning scheme area of the town, lost all land and has reached retired age (male, and female years full 60 age and the above) of was land farmers, according to actual engaged in local agricultural production labor of years (minimum from 16 age calculation, school during and was

law sentenced to detention, and prison or was reeducation-through-labor during except, with) each full two years conversion a years, fill paid pension premium. Base pay for each year the annual average wage of fully employed staff of the autonomous region of 100%, payment ratio is 20%, Government 30%, the village collective, individuals bear 35%, forward from the expropriated disposable pay not less than 15 years of pension insurance. Overdue pursuant to 8%, after setting up personal accounts. In the regulations reference the term and payment in full, in accordance with the municipality on the adjusting and perfecting of the urban employees notice of basic pension calculation methods (new deal (2006), 59th) provides new ways of calculating old-age pension, but do not execute the urban enterprise workers ' basic old-age pension minimum guarantee policy.  Within the planning scheme area of the town, lost all the land and working-age groups of landless farmers, local agricultural production according to the actual number of years two years converting every year to pay pension premiums. Base pay for each year the annual average wage of fully employed staff of the autonomous region of 100%, payment ratio is 20%, Government 30%, the village collective, individuals bear 35%, supplementary payment pursuant to 8%, after setting up personal accounts. Supplement fee is employing units, by the employer in accordance with the urban basic old-age insurance for enterprise employees continue to pay pension premiums for its, self-employed, in accordance with the urban basic old-age pension means flexible employees insured pay. Its previous payment transfer payment years before and after the consolidation, reaching retirement age, the payment for more than 15 years of age, in accordance with the municipality on the adjusting and perfecting of the urban employees notice of basic pension calculation approaches (the new deal (2006), 59th) provides new ways of calculating old-age pension.  Within the planning scheme area of the town, losing most (50%) land and landless farmers has reached retirement age, as every two years reduced 1 year's approach to pay pension premiums. Base pay for each year the annual average wage of fully employed staff of the autonomous region of 60%, payment ratio is 20%, Government 20%, the village collective, individuals bear 40%, Supplement fee fully credited to the individual account, the implementation of full funding. One-off supplementary payment of 15 and above, cumulative deposit amount according to the personal account divided by 180 monthly basic living expenses.  Within the planning scheme area of the town, losing most (50%) lands and landless farmers in the working-age, as every two years reduced 1 year's approach to pay pension premiums. Base pay for each year the annual average wage of fully employed staff of the autonomous region of 60%, payment ratio is 20%, Government 20%, the village collective, individuals bear 40%, Supplement fee fully credited to the individual account, the implementation of full funding. One-off supplementary payment allowed by the above approaches continue after payment, payment for 15 years and above, and when they reach retirement age, accumulative deposit amount according to personal accounts divided by 180 monthly basic living expenses.  within the planning scheme area of the town, lose some (50%) land and landless farmers has reached retirement age, as every two years reduced 1 year's approach to pay pension premiums. Base pay for each year the annual average wage of fully employed staff of the autonomous region of 40%, payment ratio is 20%, Government 10%, the village collective, individuals bear 45%, forward from the expropriated disposable pay not less than 15 years of pension insurance. Supplement fee fully credited to the individual account, the implementation of full funding. According to personal accounts total deposit amount divided by 180 monthly basic living expenses.  within the planning scheme area of the town, lose some (50%) lands and landless farmers in the working-age, as every two years reduced 1 year's approach to pay pension premiums. Base pay for each year the annual average wage of fully employed staff of the autonomous region of 40%,

payment ratio is 20%, Government 10%, the village collective; individuals bear 45%, Supplement fee fully credited to the individual account, the implementation of full funding. Supplement fee allowed under this approach continue to pay contributions for more than 15 years of age, when they reach retirement age, accumulative deposit amount according to personal accounts divided by 180 monthly basic living expenses. (3) Improvement of agricultural production structures  To adjust agricultural structure, guided by government departments, and conduct training on planting and breeding techniques, expand economic crop planting acreage, and develop the family breeding stocks. With the help of relevant government institutions and the technical training, the APs can engage in greenhouses business, and plant vegetables in greenhouses to increase income with the land compensation; and they can combine their location and the actual situation to develop in sheep, cattle, pigs and other large-scale livestock’s to increase incomes. 126. Throughout the production restoration process, the PMO will organize the APs for free technical training, such as some economic crops planting and farming as well as some other types of industries. 127. Meanwhile, during the project construction process, the IA will take some helps and supports and restoration measures for resettlement, including: (1) During the project, the IA will give priority to the affected persons to involve in the project labor; for example: Construction contractor provides the needed numbers and the working types before starting construction to local government and to discuss the training programs, so that more APs can benefit from it. According to the opinions survey, 97% of the APs want to participate in their slack time to this project. After Tacheng City road construction completed, the road area, and green area will be increased, and the road maintenance equipments are improved, which requires more road maintenance workers, and green area management workers, lighting conservation and management of workers, equipment and vehicle drivers. According to the procurement of project construction content and devices, according to preliminary estimates the project implementation and operation period will creat 1,037 jobs, the project is expected to generate jobs as shown in Table 5-1. Table 5-1: The Number of Jobs to Be Generated from the Project Jobs Sub-component Road Water Water Heating River Sanitation Type compo- supply drainage compo- compo- Total component nent component component nent nent Technical 20 6 8 7 8 4 53 Temporary Non-technical 650 40 65 35 40 15 845 jobs Sub-total 670 46 73 42 48 19 898 Technical 10 5 3 48 3 12 81 Permanent Non-technical 15 3 2 0 15 59 94 jobs Sub-total 25 8 5 48 18 71 175 Total 695 54 78 90 66 90 1073 Source: feasibility report prepared unit

(2) Throughout the production restoration process, all the APs will be organized to take technical training. such as some economic crops, to invite the technical staffs from agricultural sector and the labor and social security departments to train the affected people on farming technical and other aspects. each affected household can receive at least twice training on farming and non-agricultural production training, through these measures to

improve skills to increase income of affected persons to restore the livelihoods.

5.5. Resettlement Program for Displaced Households

5.5.1. Resettlement program for residential households 128. The households affected by HD may chose cash compensation or property right exchange or purchase commercial housing. They may choose a resettlement option based on affordability and individualized needs. (1) Cash Compensation 129. A house will be appraised by a real estate appraisal agency based on location, house structure, construction size, floor and decoration, and by reference to market price; the cash compensation would be fully paid at one time after sign the contract. After getting cash compensation. AHs can purchase commercial houses or by a second house, or do investment according to their individualized needs. 130. Among the 187 households affected by HD, 11.23% have chosen cash compensation, because they mostly have already purchased commercial housing in Tacheng City, so they will use compensation for other investments. 131. Case: For example, for a household with three persons, if their house size in masonry concrete structure (licensed main rooms) is 70 m2, the size in masonry timber structure (licensed) 30 m2, and the size in masonry timber structure (unlicensed wing rooms) is 50 m2, and the open area in yard is 180 m2, this household will receive the following compensation: (i) compensation for houses of the main residential house area (licensed main rooms): 287,500 yuan; (ii) compensation for wing houses in masonry timber structure (unlicensed): 65,000yuan; (iii) compensation for state-owned housing land: 25,200 yuan; and (iv) moving subsidy: 1,000 yuan, and transition allowance:10,800 yuan, totaling 389,500 yuan. 132. Based on real estate prices of Tacheng City in the first half of 2013 (see table 5-2), the average price of new commercial houses of multi-storied buildings is 2,800 yuan/m2. With the compensation, each AH may purchase a 110 m2 commercial house with three bedrooms, two living rooms and one bathroom, and has a remaining sum of 81,150 yuan, in which 50,000 can be used for remodeling, and others may be used for other investments. (2) Property Right Exchange 133. The compensation price for demolished houses will be determined based on house appraisal by a real estate appraisal and survey company on-site, and plus moving subsidy, temporary transition allowance, and land compensation fees, etc. The compensation prices for demolished houses will be compared with the resettlement house prices. If the compensation prices are higher than the resettlement house prices, the IA will pay the difference to APs in cash. Otherwise, APs will pay the difference to the IA for the resettlement houses. APs can select different floors of resettlement houses (apartment) and different types of houses. The floor prices are different: ground floor: 2,600 yuan/ m2, second floor: 2,860 yuan/m2, third floor: 3,120 yuan/m2, fourth floor: 2,730 yuan/m2, fifth floor: 2,470 yuan/m2, and sixth floor: 1,820 yuan/m2. 134. Considering most of AHs will continure doing fam work in a short time after moving into apartment buildings, Tacheng City Project Office planed to build a storage for AHs to store their farm machinery and agricultural production materials, tools and products after full consultation with affrected villagers. The storage is located in the south of the plaaned Sihuan Road and the east of Xixing South Road of Baketu, Liaota New Zone. The storage will cover an area of 11 mu of state

owned unused land and building area is about 2000 square meters. It plans to start construction in May 2015, and deliver to use in October 2015. 135. Among the 187 AHs, 55.61% have chosen the property right exchange. Their current houses are mostly in earth timber and masonry timber structures, and out of repair, without central heating, water supply and drainage systems. Their surrounding environment and roads are poor, making traffic inconvenient. They will be eligible for improved housing with similar floor space.

Table 5-2: Commercial house price of Tacheng city in 2013 Demolition area similar lots (four categories) First floor 2,800 yuan/m2 Second floor 3,080 yuan/m2 Third floor 3,360 yuan/m2 Fourth floor 2,940 yuan/m2 Fifth floor 2,660 yuan/m2 Sixth floor 1,960 yuan/m2 Source Tacheng City house levy management office, 2014

136. Case: If any AHs select the property right exchange, the building area in the same to their former houses will be exchanged, while other houses (unlicensed) and other facilities will be compensated for at appraised price. For example, for a household with three persons, if the size in masonry concrete structure (licensed main rooms) is 80 m2, and the size in masonry timber structure (unlicensed wing rooms) is 30 m2, and this household selects property right exchange, it will exchange its house for a 107 m2 apartment with three bedrooms and two living rooms at the ratio of 1:1 for masonry concrete structure, and 1:0.9 of the size of the acquired house in masonry timber structure. They can also receive cash compensation for other rooms and for house land. The resettlement housing will be provided with water supply, drainage and central heating facilities, and have a better environment and better structures. Another case on the property right exchange calculation of demolished house area and the resettled house area is: taking a household with three persons as example, the total house area is 180.78 m2, of which the main room brick and concrete structure is 65.78 m2, brick non-main room is 90.12 m2, earth-wood outbuildings is 24.88 m2. In addition, the garden land space is 189 m2. After a real estate appraisal, considering moving and transition subsidies, ancillary facilities, housing land and other related compnesations, the AH can receive a compensation of about 364,800 yuan. According to the property right exchange of a third floor apartment in 3,120 yuan/m2, the AH can exchnage a resettlement house with three bed rooms and a living room and a wash room in an construction area of 116.92 m2. If they like to buy a commercial house (apartment), according to the price of 3,360 yuan/m2 for the third floor of commercial houses in late half of year 2013, the AH can buy a house with 108 m2. Therefore, the resettlement program of Tacheng city can make AHs get resettlement houses with the same size or more than the original main house. Currently the average AHs have 3.5 people and the resettlement house with three bed rooms, two living rooms and a wash room in 116.92 m2 can meet their need. (3) After Cash Compensation, Self Construction of Resettlement Houses on Unified Planning Land 137. If APs do not want to live in apartment buildings, but they like to live in flat houses, they can build their own houses on the unified planning land after they receive the cash compensation for their house demolition. The resettlement houses will be built on the collective unused land according to the unified planning.

138. According to the survey, 33.16% of AHs prefer to build their own houses on the designated relocation land. They hope build the houses on the new homestead with the same size as the original one, with a separate courtyard. The affected villages have the collective unused land, and can provide the land to AHs for the new house (or cottages) construction after the unified planning of the land utilization. 139. According to building materials market and local labor market in Tacheng city in the second half of 2013, the cost of self-built brick structure houses with color steel surface is about 1,280-1,350 yuan/m2. It should be 1,380 - 1,450 yuan/m2 in 2015. 140. The compensation for house demolition will be based on full replacement price of the demolished houses and full consultation and negotiation between AHs and local house demolition agencies, and the final agreements. Usually the final compensation is higher than the current market price to build brick structure color steel surface bungalows. Therefore, the compensation is totally enough for self-constructed houses in the relocated homesteads in the affected villages. 141. Xinqu Resttlement Community Introduction—this community is located on the east of 2nd Ring Road and on the south of Fukang Road of Baketu, Liaota New Zone, where is nearby Liuhe Square and the center of New District, and have a planned land area of 33,350 m2, construction area of 41,028 m2, including a residential building area of 31,963 m2 and a commercial area of 5,084 m2. The community is planned to accommodate 353 households with 1,250 persons, and 55 commercial shops. The community started to construct on June 2013, and planed to deliver the apartments in October 2014. The community is constructed in strict conformity with the Building Code for urban residential district planning and design,and has such public facilities as nursery, kindergarten, primary school, health center, cultural activity station, savings office, postal office, community service center, property management and commercial services. There are two room layouts: (i) two bedrooms and two living rooms, and (ii) three bedrooms and two living rooms. 5 housing sizes are available – 58.68, 61.74, 80.07, 95.35, and 116.26 m2.

Figure 5-1: Layout Plan of the Xinqu Resettlement Community

Figure 5-2: Construction Sites of Xinqu Resettlement Community

142. Flat House Resettlement Location Instruction: the resettlement area for construction of flat houses is located on both sides of the Ejia Road, Tacheng City, adjacent to the Guihua No.5 Road, 3.3 km away from the city. With convenient transportation, residents can easily travel, go to school, or take medical care, only 3 km far away from the Tacheng City High School, 3.5 km from the city hospital. According to the planed design, housing lands in the resettlement area will be allocated to AHs for construction of their own houses after they receive a one-time cash compensation for their house demolition.

5.6. Resettlement Programs of Private Shops 143. The resettlement for commercial shops includes: (i) monetary compensation; and (ii) property rights exchange of shop houses. AHs can select one of the resettlement compensations. 144. For the property right exchange option, the current shop houses will be appraised by a real estate assessment institution according to shop specific location, building structure, construction area, and market price. The assessment price will be discussed with AHs. If AHs agree the property right exchange, the compensation will include the shop moving and transition subsidies, and housing land compensation fee, and the shop house assessment price. The compensation will be compared with the cost of resettlement shop houses. If the resettlement shop cost is higher than the shop compensation, AHs will pay the extra part. Otherwise, the house demolition agency will pay the extra part to AHs if the compensation for the demolished shop houses is higher than the resettlement shop cost. At present, the resettlement shop costs for the property right exchange are 5,000 yuan/m2 for shops at the first floor and 4,000 yuan/m2 for shops at the second floor. All resettlement shop houses for the property right exchange are located at the first floor and the second floor of buildings in the resettlement area. Unit sizes of the shop houses are in range of 20m2-80 m2. 145. For the monetary compensation option, the current shop houses will be appraised by a real estate assessment institution according to shop specific location, building structure, construction area, and market price. The assessment price will be discussed with AHs. The compensation will include the shop moving and transition subsidies, and housing land compensation fee, and the shop house assessment price. AHs can decide by themselves to buy new houses in different places to continue their business or do other businesses after they receive the compensation. 146. According to the survey, 5 commercial stores will be affected by this project. They are operating small shops in rural residential areas, nearby the project roads. During implementation of the resettlement, the PMO will notify the store operators in advance to give them enough time for finding new place for their business. The property right owners of affected shops have priority to select shop houses at the first floor or second floor in the resettlement community, or buy or rent shop houses at other places with the compensation to continue their businesses. For employees who are working on affected shops but the owners of the shops will not continue their operation after the house demolition, Tacheng Government is responsible for providing free re-employment training according to APs’ needs, and then priority to recommend them in employment. Because AHs already have the business experience and capability, and are familiar with local surroundings, they can restore their business within 2-3 months. In addition, after the completion of the road construction, with improvement of infrastructure environment and economic development, and more people move into the resettlement community, the business of the AHs will be better and better. 5.7. Restoration Program for Enterprises 147. Affected enterprises can select one of resettlement options: (i) continuing their businesses in any places decided by themselves after receiving monetary compensation; and (ii) moving into a industrial park and building their own houses according to unified planning after receiving the monetary compensation. 148. The project will affect 10 enterprises due to the house demolition, including full demolition of 6 enterprises, and partial demolition of 4 enterprises. 122 employees, including 22 ethnic minority workers will be affected. Consultation results with the affected enterprises are summarized in Table 5-2.

Table 5-3 Resettlement willing for enterprises

Affected Affetced Affected No Enterprise Name 2 Workers Resettlement Plan Area (m ) Scope (person) 100% 1 Liquified Gas Station 56 0 Defunct. Cash compensation demolished Bank of China, People’s Partly Affected toilets and partial wall 2 Tacheng Prefecture 13.64 0 demolished only. Cash compensation Branch Cash compensation. A new 100% 3 Tacheng Customs 3,510 48 building will be constructed on demolished stated-owned land Cash compensation and will 100% 4 Tacheng Pipe Co., Ltd. 1,219.73 11 move in a industry area and build demolished new houses. Cash compensation and will Tacheng Xiangyuan 100% 5 7,024.47 18 move in a industry area and build Industry and Trade Co. demolished new houses. Tacheng Hongjiang Cash compensation and will 100% 6 Polystyrene Board Color 2,943 14 move in a industry area and build demolished Steel Co. new houses. Tacheng Green Hops Co., Partly Defunct due to poor operation. 7 589.27 3 Ltd. demolished Cash compensation PetroChina Xinjiang 100% Defunct due to poor operation. 8 Tacheng Marketing 324 0 demolished Cash compensation Company Affected a warehouse. Cash Tacheng Haichuan Dairy Partly 9 255 12 compensation, and will build a Company demolished new warehouse on their own land Tacheng Prefecture Brown Affected a warehouse. Cash Partly 10 Cow Breeding Center 501 16 compensation, and will build a demolished (cattle farm) new warehouse on their own land Total 16 ,436.11 122

5.8. Training 149. In addition to cash compensation, a special training program is developed for the AHs. 600 person-times will be trained in total, and at least two person-times of each AH will be trained. 40% of person-times of training will be provided to women. (1) Scope of training: According to the industry and market demands of Tacheng City and surrounding areas, vocational skills training will be conducted with focus on crop cultivation, livestock breeding and servicessuch as repair, electric welding, tailoring, etc.

Table 5-4 Arrangements for Training

Expected training Person-ti No Type of training Target groups Female Time costs (10,000 yuan) mes

1 Farming technique AHs 19.04 300 120 2015. 5

Livetock breeding 2 Livestock breeding 8 100 40 2015. 6 HHs

3 Business training AHs 7 50 40 2015.11

Skill training:

machine repair,

4 Electric, welding, AHs 10 150 60 2015.12 –2018.2

Tailoring,

cooking

(2) Forms of training: The forms of training include vocational skills training, single-skill training and on-the-job training, in which vocational skills training will be conducted by training institutions and employers under the leadership of the department in charge of labor and social security, with focus on farming, stockbreeding and crop cultivation skills. (3) Organizational structure: Tacheng City government has established the Project Leading Group, and the training working team will be affiliated to the Tacheng PMO, which will be located at the Tacheng City Labor and Social Security Bureau. (4) Funding: The training budget of the project is 440,400 yuan. The training budget include organizational, teaching material, printing, examination and practice costs, and trainer remuneration, which will be paid by the training working team of the project. 5.9. Supporting Program for Vulnerable Groups 150. All the 2 vulnerable AHs not only can get the fixed compensation for LAR and policies of Tacheng City for vulnerable people, but also can enjoy some other policies: (1) For affected vulnerable people whose houses is smaller than 50 m2, after property rights exchange they can get a 50m2 resettlement house (family of three people or less permanent residence) or in the number of family permanent residence, 13 m2 placement for each person. (2) Tacheng government have priority to provide security houses. (3) They has priority to select resettlement housing floor, location, dwelling. (4) Tacheng PMO will provide them technical training, and employment information and guidance to increase employment opportunities. (5) During the construction project, unskilled labor would provided to them in priority. (6) Set up a special budget for helping vulnerable groups 7,000 yuan in the resettlement budget, to give special help to vulnerable groups.

5.10. Protection of Women’s Rights 151. Women will participate fully in resettlement activities through information disclosure and village meeting, and enjoy the same rights as men in compensation, employment and training. In addition, the following measures will be taken to help women restore income:  At the construction stage, it should be ensured that a certain number of women receive unskilled jobs generated by the Subproject, and women and men will receive equal pay for equal work;  Skills training, including training on stockbreeding and crop cultivation, will be first made available to affected female laborers so that their economic status is not reduced;  At the operation stage, cleaning, landscaping and environmental sanitation jobs will be offered to affected women to ensure their income restoration; and  Affected women will receive relevant information, and participate in public consultation and resettlement. 5.11. Ethnic Minority Development 152. The population affected by HD includes 66 minority households with 242 persons, manly being Kazaks, Uygur, Hui, Dongxiang, and Xibo peoples. The minority population will enjoy the same rights to compensation for LA, HD and resettlement as the Han population, and have priority in employment and training. A separate Ethnic Minority Development Plan (EMDP) has been developed to promote the development of ethnic minorities. 5.12. Restoration of Infrastructure and Ground Attachments 153. Affected infrastructure and ground attachments will be restored by proprietors after receiving compensation from the owner of the project. Restoration measures must be planned in advance, and suited to practical conditions, so as to be safe, efficient, timely and accurate, with minimum adverse impact on nearby residents.

6. Public Participation and Grievance Redress

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

6.1. Consultation at Preparation Stage

6.1.1. Completed Public Participation Activities 155. As to all significant topics for discussion involved in the planning stage of resettlement, the PMO has organized meetings and discussions of design institute (DI), consultant agency, local communities and APs to disclose information and conduct public consultation in various ways from March 2013 to July 2014. Including: (i) Design optimization discussion in order to minimize land acquisition and resettlement impacts; (ii) Impact survey based on the FSR to get detailed information on population, houses, land, special facilities, APs, shops and enterprises in the project area; (iii) Consultation with managers of affected villages, to get the socio-economic background of them and discuss the LA options and the compensation standards with the villagers; and (iv) Opinion survey on APs; 156. The public participation and consultation provided a basis for the improvement of the RP. During consultation, Uygur or Kazak language translator is arranged for the ethnic groups who can’t speak Han language. 157. These meetings and surveys played an important role in developing rational compensation rates, restoration programs and training programs. It has been found that the AHs’ main concerns are: (i) Since the LA area is not large, the LA will have little impact of their income condition. They only concern whether the compensation can be paid timely and whether crop cultivation training and livestock breeding technical training can be conducted. (ii) The house demolition prospect: the APs’ first concern is the compensation standards, then is the resettlement sites, and finally is life issues during the transition period. (iii) For the removal from the demolished cottage to the building are acceptable, that is regarded as an opportunity to improve their living conditions. (iv) Women believe that after relocated to the building, the heating problem in winter has been resolved, which can reduce the pressure on women's labor and the heating costs. (v) Due to the construction of the road, inconvenience to daily travel would be problems, the construction process may cause noise, dust, construction waste; and have to take measures to deal with or mitigate pollutions. (vi) The road construction period and dates should be published promptly to inform the residents living nearby, let them know the inconvenience in advance. 158. Based on the above discussions, the PMO: 71

(i) has developed land acquisition compensation standards, and will inform to the APs in advance. After the agreement is signed, the land compensation will be paid timely. (ii) discussed with Tacheng City People's Government about APs most concerned issues, such as the resettlement work, and discussed with the labor and social security bureau about the relevant training issues for AHs. (iii) discussed a satisfied resettlement plan for the APs with Tacheng house demolition department and resettlement house construction units. On the one hand, the house demolition department will further explain the policies on house demolition and compensation standards to the affected households, on the other hand, resettlement house construction units should regularly announce the resettlement house construction situation to the affected households. Life issues during the transition period for affected households concern, resettlement housing construction is urged to be completed as soon as possible, and transition costs should be given to the affected families, to give some help for vulnerable groups to ensure they can go smoothly with the transition period. Some important issues during the project preparation consultation/meeting are listed in Table 6-1.

Table 6-1: Public Participation Activities during Project Preparation Stage # of Location Date Participants persons/ Key Topics female Tasiken Village,  Introducing the Mayihai Village, background and APs, PMO, community Sazi Village, March to purpose of the project officials, DI, RP 140 /65 Shangtasiken Village, May 2013  how to minimize the preparation agency Wuli Village, cultivated LA and HD

Bali Village, impacts Yuanyichang Village Tasiken Village,  proposed Mayihai Village, APs, PMO, community compensation rates; Sazi Village, officials, DI, RP  revenue sources of Nov. 16, Shangtasiken Village, preparation agency 123 /60 the affected villagers 2013 Wuli Village, and L&R Bureau, and  construction progress Bali Village, LA department Yuanyichang Village Tasiken Village,  location of Mayihai Village, resettlement site APs, PMO, community Sazi Village,  The needs of Nov. 17, officials, RP Shangtasiken Village, 105 /45 trainings; 2013 preparation agency Wuli Village,  income restoration and LA department Bali Village, measures Yuanyichang Village  design for January APs, PMO, RP PMO 90 /40 resettlement houses; 20, 2014 preparation agency  construction progress;  discuss the draft APs, PMO, community report on resettlement January officials, RP  discuss future PMO 11-15, preparation agency, 95 /45 counseling plans 2014 L&R Bureau, and LA  future information department disclosure plan

6.1.2. Opinion Survey Results 159. The respondents include the 450 rural AHs affected by LAdemolition and 30 urban residential households. The survey on 450 AHs showed that most of them know that the project is about to be constructed and support for it, and most of them thought the road condition and lacking of facilities has badly impacted their life. 35.12% thought this would improve their living environment, and 16.91% thought it would improve their working environment, 39.75% thought it would generate more job opportunities; 98.94% are aware or somewhat aware of the compensation and resettlement policies for LA and HD; 98.11% would file an appeal when their lawful rights and interests are infringed on during resettlement. See Table 6-2.

Table 6-2: Public Opinion Survey Results

Option 1 Option 2 Option 3 Option 4 Option 5 No. Question Result Result Result Option Result Option 1 Result (%) Option 2 Option 3 Option 4 (%) (%) (%) 5 (%) Do you know that the Not quite 1 project is about to be Yes 93.22 2.48 Unclear 4.3 clear — — — — constructed? Do you support the 2 Yes 89.54 No 10.64 project? — Don’t care — — — — Improve traffic Which benefits will conditions Improving 3 the road construction residents travel to 67.86 living 32.14 No benefit — — — — — have? promote urban environment development How do current road 4 conditions affect your None 15.03 Not serious 18.17 Serious 43.22 Very serious 23.58 — — lives and work? Improving Improving What benefits will the Improving living working Generating job 5 35.12 16.91 39.75 mental and 8.22 project have for you? environment environme opportunities — — physical health nt What adverse Potentially Reducing Other Affecting 6 impacts will the No adverse impact 36.48 14.69 leading to 10.09 income due to 38.74 adverse traffic safety — project have on you? property losses LA impacts Are you aware of the compensation and 7 Yes 91.73 Somewhat 7.21 No 1.06 resettlement policies — — — — for LA and HD? Will you file an appeal when your lawful rights and 8 Yes 98.11 1.89 interests are Don’t know — — — — — — infringed on during resettlement?

6.2. Public Participation and Consultation Plan 160. With the progress of project preparation and implementation, Tacheng City PMO, affected village committee, and communities will conduct further public participation, including the LA compensation standard, and the scope of training for the APs, disclosing construction issues, soliciting comments and expectations from the APs during implementation, disclosing the compensation rates and appeal channel, etc., and learning RP implementation progress and the APs’ livelihood restoration. See Table 6-3. Table 6-3: Public Participation Plan Purpose Mode Time Agencies Participants Topic Disclosure of Disclosure of Distribution 2015.1 PMO All APs compensation rates, the RIB and appeal channel, Disclosure of ADB website 2015.1 ADB the RP PMO and L&R Bureau, LA Disclosure of LA area, LA Bulletin board, department and 2015.1 All APs compensation rates announcement village meeting officers of and LA schedule affected Villages PMO and L&R Announcement Bureau, LA of Bulletin board, Compensation fees 201 5.2 department and All APs compensation village meeting and mode of payment officers of program for LA affected Villages Finding out anything omitted to determine PMO and L&R DMS results the final impacts Bureau, LA verification Preparing a detailed Field investigation 201 5.2 3 department and All APs based on final – list of lost land and officers of design properties, and the affected Villages sample compensation agreement PMO and L&R Discussing the final Determination Bureau, LA income restoration of Resident meeting 201 5.2 department and All APs program and the compensation officers of program for use of plan affected Villages compensation fees Notification of PMO and L&R compensation Bureau, LA Notification of amounts and Resident meeting 201 5.2 department and All APs compensation fees date of officers of and date of payment payment affected Villages PMO and L&R Discussion of detail Skill training Affected Resident meeting 2015. 6 Bureau, Village training requirements arrangement Labors Committees and timeframe PMO, Persons Discussion of Construction affected by resettlement building Resettlement Resident meeting 2015. 7 Bureau, house structure, construction Transportation demolition schedule, facilities in

Purpose Mode Time Agencies Participants Topic Bureau and resettlement Village communities, public Committees transportation, etc. PMO and L&R Learning RP Bureau, LA Monitoring for 2015.3 - Random implementation Family survey department and APs 2018.12 sampling officers of progress and the APs’ livelihood restoration affected Villages

6.3. Appeal Procedure 161. Since public participation is encouraged during the preparation and implementation of the RP, no substantial disputes are anticipated. However, unforeseeable circumstances may arise during this process. In order to address issues effectively, and ensure the successful implementation of project construction and land acquisition, a transparent, accessible and effective grievance redress mechanism has been established. The system has shown in figure 6-1. The basic grievance redress system is as follows: Stage 1: If any AP is dissatisfied with any land acquisition and resettlement of any other safeguards related problems, he/she may file an oral or written appeal with the community committee/sub-district office orally or in writing. In case of an oral appeal, the community committee/sub-district office shall handle such appeal and keep written records. Such appeal should be solved within 2 weeks. Stage 2: If the AP is dissatisfied with the disposition of Stage 1, he/she may file an appeal with Tacheng City Land and Resources Bureau or the LA and HD management office (depending upon the issue) after receiving such disposition, which shall make a disposition within 2 weeks. Stage 3: If the AP is still dissatisfied with the disposition of Stage 2, he/she may file an appeal with Tacheng City PMO receiving such disposition, which shall make a disposition within 2 weeks. Stage 4: If the AP is still dissatisfied with the disposition of Stage 3, he/she may apply for administrative reconsideration with Tacheng City Government after receiving such disposition within 3 months. 162. Alternatively, he/she may file an action in a civil court in accordance with the Civil Procedure Law of the PRC at any time irrespective of the use and progress of the GRM process. 163. At each stage, when the responsible agencies receive the appeal, it will be also copied to the PMO for discussion, so that the grievance can be redressed at lower levels. All grievances (and their resolution) at each stage will be recorded and kept. The PMO will report the grievances and their resolution) to ADB in semiannual monitoring reports. 164. Alternatively, the aggrieved person(s) may submit a complaint to the ADB’s Project Team to try to resolve the problem. If good faith efforts are still unsuccessful, they may submit their

complaint to ADB's Accountability Mechanism (2012).4 The first step requires good faith efforts to resolve the problem with the ADB Project Team. Besides, reporting behaviors which are against ADB's policies or procedures also welcomed. Website is: www.adb.org/Accountability-Mechanism/. 165. APs may file an appeal on any aspect of resettlement, including compensation rates, etc. The above means of appeal, and the names, locations, persons responsible and telephone numbers of the appeal accepting agencies will be communicated to the APs at a meeting, through an announcement or the RIB, so that the APs know their right of appeal. Mass media will be used to strengthen publicity and reportage, and comments and suggestions on resettlement from all parties concerned will be compiled into messages for disposition by the resettlement organization at all levels. 166. All agencies will accept grievances and appeals from the APs for free, and costs so reasonably incurred will be disbursed from the contingency costs. During the whole construction period of the Project, these appeal procedures will remain effective to ensure that the APs can use them to address relevant issues.

Figure 6-1: Grievance Redress Flowchart

6.4. Appeal Contact Information 167. In order that the APs can feed back their grievances timely, contacts have been appointed for different appeal accepting agencies and their contact information disclosed.

Responsible person for Tasiken Village committee: Li Xun Tel: 13809973330 Responsible person for Mayihai Village committee:Wu Huashan Tel: 13565788886 Responsible person for Sazi Village committee: Liu Huagong Tel: 18799707646

4 http://www.adb.org/Accountability-Mechanism/default.asp.

Responsible person for Shangtasiken Village committee: Lei Wenqiang Tel: 13150226567 Responsible person for Wuli Village committee: Bo Xiaobin Tel: 18809011116 Responsible person for Bali Village committee: Dou Jinliang Tel: 18999497065 Responsible person for Yuanyichang Village committee: Liu Gangqiang Tel: 13319755299 Responsible person for Ergong Town Government: Ma Jian Tel: 13579796669 Responsible person for Liaota New District L&R BureauCheng Hongbin Tel: 09016666182 Responsible person for Tacheng City L&R Bureau: Zhang Shouyong Tel: 13579796658 Responsible person for Emin County PMO: Zhang Jiancheng Tel: 09016280603 Responsible person for Tacheng City Construction Bureau: Hu Shenjun Tel: 09016226159 Responsible person for LA and compensation leading group: Sui Siliang Tel:09016666172 Head of the Tacheng City Letters and Visits Department: Wang Hua Tel: 09016231360 Head of the Tacheng City Disciplinary Inspection Department: Liu Jiangtao Tel: 18099018919 Head of the Tacheng City Legal Department: Xukelaiti Tel: 13319017447 External M&E agency: uncertain

7. Resettlement Budget

7.1. Resettlement Budget 168. All costs incurred during LAR will be included in the general budget of the project, all resettlement costs will be from domestic funds, which is 287.9023 million yuan in total, as detailed in Table 7-1.  State-owned land occupation: 36.9785 million yuan in total (12.84% of total costs) including State-owned residential land, State-owned commercial land, State-owned industrial land, State-owned cultivated land;  Acquisition of collective land: 56.3165 million yuan in total (19.56% of total costs), including cultivated land compensation, forest land compensation, collective land compensation, etc;  Residents Housing Demolition: 104.2245 million yuan in total for house demolition (36.20% of total costs), including house structure compensation, relocation subsidy, temporary transition fees;  Enterprises House Demolition: 24.8476 million yuan in total for the en terprises house demolition (8.63% of total costs), including corporate housing structure compensation, relocation assistance, temporary transition fees;  Commercial House Demolition: 0.8246 million yuan in total for the commercial house demolition (0.29% of total costs), including corporate housing structure compensation, relocation assistance, temporary transition fees;  Attachments and infrastructure: 0.5092million yuan (0.17% of total costs);  Other costs: including survey and design fees, construction management fee, external monitoring and evaluation, implementation management fees, skills training costs, Special support fee for vulnerable groups and contingencies, totaling 34.654 million yuan (12.04% of total costs);  Stipulated fees for land acquisition: totaling 2.2371 million yuan (10.26% of total costs)

Table 7-1: Resettlement Cost Estimates Compens Amount ation rate No. Item Unit Quantity 0,000 Percent Remarks yuan/unit yuan LA of state-owned 1 3697.85 land Compensation for m2 805.51 State-owned land 2 inside the Compensation for m 20 2,233.33 4.47 built-up area urban state-owned 2 outside the land m 10 built-up area 2 fourth Commercial land m 180 726.67 13.08 degree 2 fourth Residential land m 140 39 ,533.33 553.47 degree 2 fourth Industrial land m 125 18 ,760.00 234.50 degree Occupation of 2892.34 State-owned land Cultivated land 570.76 land compensation mu 12 ,000 131.21 157.45 resettlement mu 30 ,000 131.21 393.63 subsidy young corps mu 1,500 131.21 19.68 Orchards land 1071.93 La nd compensation mu 24 ,000 103.07 247.37 resettlement mu 60 ,000 103.07 618.42 subsidy Forest land and mu 103.07 206.14 attachments Hops land 1249.64 Land compensation mu 24 ,000 113.88 273.31 resettlement mu 60 ,000 113.88 683 .28 subsidy Forest land and mu 113.88 293.05 attachments Collective land 2 5631.65 acquisition Cultivated land mu 1405.25 land compensation mu 12 ,000 360.32 432.38 resettlement mu 25 ,500 360.32 918.82 subsidy young crops mu 1,500 360.32 54.05 Orchards land mu 1912.48 land compensation mu 24 ,000 200.01 480.02 resettlement mu 51 ,000 200.01 1020.05 subsidy

Compens Amount ation rate No. Item Unit Quantity 0,000 Percent Remarks yuan/unit yuan forest land and mu 200.01 412.40 attachments Hops land mu 506.19 land compensation mu 24 ,000 50.25 120.60 resettlement mu 51 ,000 50.25 256.28 subsidy Forest land and mu 50.25 129.31 attachments Vegetable plot mu 181.23 land compensation mu 36 ,000 15.49 55.76 resettlement mu 76 ,500 15.49 118.50 subsidy young crops mu 4,500 15.49 6.97 farmland shelter-belt and 136.28 scatter forest land land compensation mu 12 ,000 20.19 24.23 resettlement mu 25 ,500 20.19 51.48 subsidy Forest land and mu 20.19 60.57 attachments Collective unused 3.71 land land compensation mu 4,800 7.72 3.71 Collective 13.91 construction land land compensation mu 4,800 28.98 13.91 Collective 1472.61 residential land land compensation m2 140 105 ,186.67 1472.61 Temporary 3 1.27 occupation Cultivated young mu 1,500 8.44 1.27 crops Residential house 4 10422.45 demolition House

compensation Brick concrete 2 m 2,900 12 ,487.35 3621.33 structure Color-steel and 2 m 2,850 1,926.85 549.15 brick structure

Brick and concrete 2 m 2,850 193.35 55.10 structure

Main house brick and wood 2 m 2,850 5,445.50 1551.97 structure civil engineering m2 2,800 4,768.16 1335.08

Compens Amount ation rate No. Item Unit Quantity 0,000 Percent Remarks yuan/unit yuan structure

Mixed Brick 2 m 1,500 4,034.59 605.19 structure brick and wood 2 m 1,300 3,845.42 499.90 structure

Civil engineering 2 Side house m 1,250 2,816.45 352.06 structure

brick and concrete 2 m 1,000 2,630.33 263.03 structure Color-steel 2 m 750 1,078.26 80.87 structure

brick and wood 2 m 800 2,433.48 194.68 structure civil engineering 2 m 750 3,049.66 228.72 Affiliated HouseAffiliated structure Civil brick m2 800 383.91 30.71

Color-steel 2 m 350 3,481.56 121.85 structure Brick and color 2 m 350 896.17 31.37 steel structure

brick and wood 2 m 400 780.77 31.23

Sheds structure civil engineering 2 m 350 646.16 22.62 structure wood m2 250 3,489.48 87.24

Color-steel 2 m 200 1,636.39 32.73 structure

brick and wood 2 house colony colony m 200 49.72 0.99 structure

brick and concrete 2 m 1,200 1,821.06 218.53 structure Color-steel 2 m 1,150 129.62 14 .91 structure

brick and wood 2 m 1,150 1,571.03 180.67 structure civil engineering 2 m 1,100 511.02 56.21 structure Other subsidies m2 moving subsidy household 1,000 187 18.70 Temporaril Temporary y prepay household/mo transitional 200 660 237.60 18 month, nth allowance it would be calculated

Compens Amount ation rate No. Item Unit Quantity 0,000 Percent Remarks yuan/unit yuan according to the actual costs of implement ation Enterprises 2 5 m 2484.76 storage space brick and concrete 2 m 1,600 6,681.33 1069.01 structure Color-steel 2 m 1,450 9,531.91 1382.13 structure brick and wood 2 m 1,450 176.37 25.57 structure civil engineering 2 m 1,300 46.50 6.05 structure Moving subsidy household 2,000 10 2.00 Constructio n preceding temporary demolition household/mo transitional generate nth allowance no temporary transitional allowance 6 Shops 82.46 Brick and concrete 2,900 276.42 80.16 structure moving subsidy household 1,000 5 0.50 Temporaril y prepay 18 month, it would be temporary calculated household/mo transitional 200 5 1.80 according nth allowance to the actual costs of implement ation Ground 50.92 attachments Total of compensation 7 50.92 fees for attachments Basic Cost: 8 22371.36 Subtotal of Items

Compens Amount ation rate No. Item Unit Quantity 0,000 Percent Remarks yuan/unit yuan 1-7 9 Other costs 3465.39 Based on the percentage of Survey, design and LA and 3.00% 22 ,371.36 671.14 research costs resettlement compensation fee Based on the percentage of land Implementation acquisition 3.00% 22 ,371.36 671.14 management costs and resettlement compensation fee Based on the percentage of land acquisition Skills training costs 0.20% 22 ,371.36 44.04 and resettlement compensation fee Special support for 0.70 vulnerable groups Based on the percentage of House resettlement House 0.50% 12 ,989.67 64.95 assessment fee demolition compensation Based on the percentage of land Ex ternal monitoring acquisition 1.00% 22 ,371.36 223.71 and evaluation fees and resettlement compensation fee Based on the percentage of land acquisition Contingencies 8.00% 22 ,371.36 1789.71 and resettlement compensation fee Stipulated fees for 10 223.71 2953.47 land acquisition

Compens Amount ation rate No. Item Unit Quantity 0,000 Percent Remarks yuan/unit yuan New construction land occupancy m2 16 792 ,600.00 1268.16 charge Non-agricultural construction allocated unused mu 50 2,233.33 11.17 land management fee Cultivated land 2 m 15 662 ,946.67 994.42 occupation fees Forest land mu 3,000 671.15 201.35 reclamation costs 2 farmland m 8 5,720.00 4.58 shelter-belt Forest restoration timber costs 2 forest, m 6 209 ,793.33 125.88 economic forest New vegetable land developing mu 4,500 15.49 6.97 funds 4% of LA Land acquisition compensation 4.00% 8,523.99 340.96 management fees fees

28790.23 Total Total

7.2. Annual Investment Plan 169. All resettlement funds of the project are from local counterpart funds. Before or during project construction, the civil works and resettlement plan will be implemented in stages in order not to affect the production and livelihoods of the AHs. See Table 7-1. Table 7-2: Resettlement Budget Plan Year 2015 2016 2017 2018 Cost 2897.02 11588.09 11588.09 2897.02 (10,000 yuan) Percent (%) 10% 40% 40% 10%

7.3. Disbursement Flow and Plan of Resettlement Funds

7.3.1. Disbursement flow 170. During the implementation of the project, compensation fees will be paid to the affected entities or individuals according to the rates identified by Tacheng City PMO. The disbursement flow is as follows:

Figure 7-1: Flowchart of Resettlement Fund Disbursement

7.3.2. Disbursement plan 171. The land acquisition compensation fee, prior levy management fees will be charged by the Municipal Land and Resources Bureau, land compensation and resettlement fees and compensation for young crops will be directly paid to affected farmers; infrastructure and appurtenances compensation by the implementation of the agency will be paid directly to the relevant units. 172. To ensure that the resettlement funds are available timely and fully, and the APs’ production, livelihoods and income are restored, the following measures will be taken by Tacheng City PMO:  All costs related to LA and compensation will be included in the general budget of the project;  Land compensation fees and resettlement subsidies and young corps compensation will be paid up before LA so that all APs can get paid.  In order to ensure the successful implementation of LA and resettlement, financial and supervisory agencies will be established at all levels to ensure that all funds are disbursed timely and fully. 173. The budget is a cost estimate of resettlement. Depending on practical changes within the affected areas, and due to the practical impacts of detailed measurement survey (DMS), modifications to compensation and inflation, etc., resettlement costs may be increased, but Tacheng City PMO will ensure the payment of compensation fees. The budget incorporates contingencies, and will be applied and revised as necessary.

8. Organizational Structure and Responsibilities

8.1. Resettlement Action Agencies 174. The agencies responsible for the planning, management, implementation and monitoring of the project’s resettlement activities are:  Tacheng city ADB Loaned project management Leading Group (Tacheng PMLG)  Tacheng Project Management Office (Tacheng PMO) (EA)  Tacheng Construction Bureau (Tacheng CB) (IA)  Tacheng Land and Resources Bureau (Tacheng LRB)  Tacheng house acquisition management office  Ergong Township  Affected villages  Design Institute (DI)  External M&E agency Tacheng PMLG: leading, organizing and coordinating LA and resettlement activities, reviewing the RP, and implementing internal supervision and inspection. Tacheng city LA and compensation management group: responsible for supervision of the LA for project and the compensation payment conditions. Tacheng PMO: directing the development of resettlement policies and the RP, and LA implementation. Tacheng CB: assisting in the preparation of the RP, and conducting resettlement activities in coordination with the land and resources bureau, sub-district offices and affected community committees as the IA Tacheng LRB: handling, reviewing and approving LA formalities, and responsible for the coordination, management, supervision and arbitration of LA and resettlement Ergong township: responsible for investigation, contract with LRB, and support LRB with LAR. Affected villages: Responsible for providing land contract information with the investigation, providing vulnerable groups affected by the work. Committee responsible for mobilizing publicity, accompanied by the relevant technical staff to complete the measurement, the agreement signed by the negotiations, provide a list of affected vulnerable groups. DI: conducting project design and defining the range of LA. External M&E agency: responsible for the implementation of the resettlement plan for independent monitoring and assessment, submitted external monitoring reports tothe PMO.

8.2. Organizational Chart

Figure 8-1: Resettlement Organizational Chart

8.3. Organizational Qualifications and Staffing 175. The resettlement staffs of Tacheng city are from functional departments of Tacheng Muncipal Government. They have rich working experience and have participated in LA and resettlement in a number of local municipal projects, and will play a good organizing and coordinating role in the implementation of the project. The Project Leading Group is composed of the following persons: Leader: Zhao Wenming Member of MC, Deputy major Deputy leader: Wu Feng Deputy major Members: Jia Jingyang Director of DRC Liu Shiyao Director of FB Wang Jiandong Director of HUCB Zhang Yongguang Director of LRB Tang Meijun Director ofEPB Ding Jianhong Director of AB Min Guanghui Director of WCB 176. The Leading Group office is located in Tacheng Development and Reform Commission, Director of the Office is Jia Jingyang, and deputy director is Dou Langang and Zhang Jiancheng. 177. The primary duties of the leading group is responsible for deploying, directing, coordinating the county ADB loaned project related work; Leading Group Office main responsibility is to strengthen cooperation with relevant regional counterparts convergence of the various stages of project coordination and management, to ensure the smooth implementation of the project. Development and Reform Commission is responsible for pre-project review of reporting, project coordination and

guidance work, finance department and auditing bureau responsible for supervision of the use of project funds, debt service work, houses construction department is responsible for project implementation, technical guidance and quality supervision.

8.4. Division of Responsibilities among Agencies 8.4.1. Tacheng Project Leading Group  Responsible for project leadership, organizing, coordination and policy-making, examining the RP, implementing internal supervision and inspection, and making decisions on major issues arising from resettlement.

8.4.2. Tacheng City PMO  Entrust design institutes to measure the project impact scope;  Organize socioeconomic survey;  Organize and incorporate the preparation of the RP;  Implemente the RP policies;  Confirm and coordinate the RP implementation according to the project schedule;  Disburse and monitor the RP fund utilization;  Guide, coordinate and supervise activities and progress of the RP implementation;  Organize and implemente RP internal monitoring, determine RP external monitoring agency, and assist the external monitoring;  Review the external monitoring report;  Coordinate to solve problems related to the resettlement;  Coordinate to solve complains and appeals on the resettlement; and  Report the progress and fund use of the resettlement implementation.

8.4.3. Tacheng Municipal Construction Bureau  Organizing the socioeconomic survey;  Conducting the DMS and baseline survey;  Organizing public participation activities;  Negotiating resettlement programs and organizing the preparation of the RP;  Applying for the license for planning of land use and the license for land used for construction;  Implementing measures for LA;  Implementing the state policies and regulations on construction land management;  Developing resettlement and compensation programs according to the policies, and submitting them to competent authorities for approval;  Handling the land use approval formalities;  Implementing the RP;  Entering into compensation and resettlement agreements with the affected economic organizations together with L&R bureau;  Entering into compensation agreements for temporary land occupation;  Entering into compensation and resettlement agreements with the affected households and entities;  Reviewing resettlement implementation;  Managing information on LA, HD and resettlement;  Training staff;  Coordinating and handling conflicts and issues arising from implementation;  Coordinating and handling disputes and appeals;  Reporting LA, HD and resettlement information to the Tacheng PMO.

8.4.4. Ergong Township 178. Led by the leaders in charge, and composed of party office, land management and other units and various community key officials. Its main responsibilities are:  Participating in the survey of the Subproject, and assisting in the preparation of the RP;  Organizing public participation, and propagandizing the resettlement policies;  Implementing, inspecting, monitoring and recording all resettlement activities within its jurisdiction;  Responsible for the disbursement and management of land compensation fees;  Supervising the LA and contract signing  Reporting LA and resettlement information to the county land and resources bureau;  Coordinating and handling conflicts and issues arising from its work.

8.4.5. Yuanyi Farm and Village Committees 179. Composed of key officials of committee. Its responsibilities are:  Participating in the socioeconomic survey and DMS;  Organizing public consultation, and propagandizing the policies on LAR ;  Paying and managing relevant funds;  Reporting the APs’ comments and suggestions to the competent authorities;  Reporting the progress of resettlement implementation;  Providing assistance to displaced households with difficulties  Cooperate with other higher-level units with land acquisition related work  Design Institute  Reducing the impacts of the Subproject through design optimization; and  Identifying the range of LA.

8.4.6. External Monitoring and Evaluation Agency  During the implementation of the resettlement plan, to track, monitoring and evaluation the implementation activities, and track and monitoring resettlement regularly twice a year.  Monitoring progress, quality, funding for resettlement, and give advice;  Verify the Data and conclusions of the internal monitoring reports,  Submit monitoring and evaluation report every six months to Tacheng PMO.

8.5. Measures to Strengthen Institutional Capacity 180. In order to implement resettlement successfully, the APs and resettlement staff must be trained under a program developed by the Tacheng PMO.

8.5.1. Training Program for Resettlement Management Staff 181. A staff training and human resources development system for the county, sub-district and community-level resettlement agencies will be established, Training will be conducted in such forms as expert workshop, skills training course, visiting tour and on-site training. The scope of training includes:  Principles and policies of resettlement  Resettlement project planning management training  Resettlement implementation planning and design  Resettlement implementation progress control  Resettlement financial management  Resettlement quality control

 Management information system  Resettlement M&E  Resettlement project management

8.5.2. Measures for Improving Resettlement Agencies (1) Define the responsibilities and scope of duty all resettlement agencies, and strengthen supervision and management; (2) Provide adequate financial and technical support, and improve technical equipment, such as PC, monitoring equipment and means of transportation, etc.; (3) Select staff strictly, and strengthen operational training for administrative staff and technicians to improve professional proficiency; (4) Select female officials appropriately and give play to women’s role in resettlement implementation; (5) Establish a database and strengthen information feedback to ensure a smooth information flow, and leave major issues to the Project Leading Group; (6) Strengthen the reporting system and internal monitoring, and solve issues timely; and (7) Establish an external M&E mechanism and an early warning system.

9. Resettlement Implementation Schedule

182. According to the project implementation schedule, the project will be planned and implemented for 5 years from 2015 to December 2019; the LAR will begin in March 2015 and end in December 2018. The basic principles for resettlement implementation are as follows:  LA shall be completed at least one month prior to the commencement of civil construction.  During the LAR, the APs shall have opportunities to participate in the project. Before the commencement of civil construction, the scope of LAR will be disclosed, the RIB distributed and public participation activities conducted properly.  All compensation shall be paid to the affected proprietors directly and fully within 3 months of approval of the compensation and resettlement program for LAR. No entity or individual should use such compensation funds on their behalf, nor should such compensation be discounted for any reason.

9.1. Work before Resettlement Implementation

(1) Verification of the scope of LAR 183. The scope of the LAR will be defined according to the project detailed design and layout. And the resettlement work will be assigned to Jiaoqu township and North Jiaoqu village via meetings, and then inform to the village committee. The Tacheng PMO will survey and register land, houses and attachments, and their ownership within the defined project scope.

(2) Field investigation of the range of LAR 184. The Tacheng PMO will organize relevant staff of Tacheng LRB, village to visit the affected areas, investigate and register land, houses, attachments, facilities and equipment, etc., judge the nature and ownership of infrastructure, and keep detailed records.

(3) Updating the RP and preparing the budget 185. Before the beginning of land acquisition, and civil works, the RP will be updated based on the detailed design and detailed measurement survey (DMS), and submitted to ADB for approval. Based on the survey findings, Tacheng County PMO will work out the RP and budget in accordance with applicable policies and regulations, and then submit them to the Tacheng Construction Bureau (CB) for check.

(4) Contract signing 186. Under the coordination and direction of Tacheng PMO, Tacheng CB will enter into land acquisition agreements with Tacheng LRB, and pay the contract price. 187. The compensation agreement for land acquisition will be signed based on the compensation rates specified in the RP, and in accordance with the state, provincial and municipal laws and regulations on resettlement. Tacheng PMO, LRB, and Township government will negotiate with the affected village committees, residents, enterprises and stores about compensation and resettlement respectively. After consensus, Tacheng LRB and PMO will sign the compensation agreement for land acquisition immediately. A copy of such agreement should be submitted. Tacheng PMO will supervise and witness the whole process.

9.2. Work during Resettlement Implementation

(1) Disbursement of compensation payments 188. The APs will receive compensation timely after signing agreements.

(2) Land use license 189. The EA should endeavor to obtain all land use licenses timely. LAR certificates must be obtained before the payment of compensation and the acquisition of land, houses and private properties.

(3) facility relocation and reconstruction 190. CB pays the property owner compensation who are responsible for the relocation, restoration, and reconstruction of affected facilities, and EA is in the charge of supervision.

(4) resettlement 191. Monetary compensatin, property exchange and commercial housing are provided for affected persins to choose, and whichever will improve the housing condition a lot.

(5) Internal supervision, and external M&E 192. Internal supervision is the responsibility of the IA, which will submit a progress report to the EA and ADB quarterly. External M&E is the responsibility of the EA, which has entrusted this task to an independent consulting agency who will submit an M&E report to Tacheng PMO and Tacheng CB, and Tacheng PMO will submit the report to ADB semiannually. The purpose of external M&E is to access whether APs’ incomes and living standards have been fully restored or improved after the LAR. If the target is not achieved as the RP, further measures should be suggested and taken.

9.3. Work after Resettlement Implementation

(1) Internal supervision and external M&E maintain 193. After the completion of resettlement, the external and internal monitor should maintain to complete fulfillment of the project.

(2) Filing and documentation 194. When the resettlement work are finished, the responsible party should sunmit a supplementary report to Tacheng CB to check and archive. 195. Arrange the overall progress of the resettlement plan in accordance with the course of project construction and land acquisition compensation. Specific implementation time may appropriate adjustments during practice of the project , which has shown in Table 9-1

Table 9-1: Project Implementation Schedule

NO. project Scheduled groundbreaking date TC01 Erhuan Road 2015 TC02 Hemu south Road 2015 TC03 Water supply project 2015 TC04 Water drainage project 2015 TC05 Centralized heating project 2015 (first stage) 2017 (second satge) TC06 River training works 2015 TC07 Huanwei Road 2015 (first stage) 2017 (second satge) TC08 Heshan south Road 2016 TC09 Chanye first street 2016 TC10 Erhuan Road 2016 TC11 Hemei Road 2016 TC12 51 Laneway 2016 TC13 Chanye fourth Road 2017 TC14 Chanye south Road 2017 TC15 Xixing south Road 2017 TC16 Sanhuan Road 2018 TC17 Wuhuan Road 2018 TC18 Sihuan Road 2019 TC19 Gym west Road 2019

Table 9-2: Resettlement Implementation Schedule Responsible No. Resettlement Tasks Target Deadline Agency 1. Consultation and Disclosure 1.1 Draft RP circulation and Governments of Liao Ta PMO and PIUs, consultant Jan 2015 endorsement new area and Tacheng city 1.2 RIB distribution All affected villages, ROs Jan 2015 communities and people 1.3 Consultations for updating RP Seriously affected villages, PIUs and ROs, consultant Feb 2015 communities and people 1.4 RPs distribution All affected villages and ROs Mar 2015 communities 2. Resettlement Plan & Budget 2.1. DMS PIUs and ROs, DI, affected Feb-Mar 2015 villages, communities and APs 2.2 Updating RP based on DMS PIUs and ROs, consultant Mar 2015 2.3 Approval of final RP & budget Governments of Liao Ta Apr 2015 new area and Tacheng city 3. Capacity Building 3.1 Establishment of a resettlement PMO and PIUs Jan 2015 offices at various levels 3.2 ROs capacity building 8 staff TPMO, PMO and PIUs Jan 2015

Responsible No. Resettlement Tasks Target Deadline Agency 3.3 Designate village/community All affected villages/ PMO and ROs Jan 2015 authorities communities 4. Commencement and Completion of Resettlement 4.1 Agreements with villages and APs All villages and APs PIUs, ROs and LAB Apr 2015 4.2 Commencement ROs May 2015 4.3 Disbursement of compensation to ROs May – Jun 2015 APs onwards 4.6 Completion ROs 31 Dec 2018 5. Monitoring & Evaluation 5.1 Internal monitoring reports Semi-annual PMO and PIUs Feb and Aug each year reports since 2015 5.2 Contracting external monitor TPMO and PIUs Jan 2015 5.3 Baseline survey 10 -20% of seriously External monitor Jan 2015 affected HHs (shortly after DMS) 50% affected villages 5.4 External monitoring report Semi-annual reports External monitor Mar and Sep each year since 2015 5.5 Resettlement completion report Report PMO 31 Dec 2019

10. Monitoring and Evaluation

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

10.1. Internal Monitoring

10.1.1. Purpose 197. The purpose of internal monitoring is to enable all resettlement agencies to function properly during project implementation, conduct internal supervision and inspection on the whole process of resettlement preparation and implementation, learn resettlement progress, and ensure that the land acquisition, house demolition and resettlement work can be completed on schedule according to the RP, and promote successful project construction.

10.1.2. Organization and staff 198. The internal resettlement monitoring agencies are Tacheng PMO and other relevant authorities (e.g., Tacheng LRB and CB). These agencies will have a leader who is responsible specifically for the resettlement work. Such leaders should have rich resettlement experience and authority, and be able to coordinate all departments involved in the resettlement work. The members of such agencies should have knowledge on resettlement and social issues so as to perform their duties.

10.1.3. Scope of Internal Monitoring 199. The Tacheng PMO will develop a detailed internal monitoring plan for land acquisition and resettlement, including: (1) Payment, use and availability of compensation fees for land acquisition, house demolition, and implementation progress and quality of production and development options of APs; (2) Investigation, coordination of and suggestion on key issues of the resettlement and implementing agencies during LAR; (3) Restoration of the household income of APs; (4) Restoration of vulnerable groups; (5) Payment, use and availability of compensation funds; (6) Restoration and reconstruction of infrastructure, ground attachments and special facilities ; (7) Level of public participation and consultation during LA and resettlement; (8) Resettlement training and its effectiveness; and (9) Working mechanism, training, working hours and efficiency of local resettlement offices.

10.1.4. Internal monitoring reporting

200. The Tacheng PMO will submit a quarterly progress report to ADB. Such report should indicate the statistics of the past 3 months in tables, and this should reflect the progress of land acquisition, house semolition, resettlement and use of compensation funds through comparison with the budgeted amount and schedule. Table 10-1 and Table 10-2 provide some formats.

Table 10-1: Progress Report on Resettlement for LA and HD

______community, ______sub-district

Cut-off date: MM/DD/YY

Date of completion: MM/DD/YY Actually Percentage of Item Unit Planned Accumulated completed completion Permanent land acquisition mu Temporary land occupation mu 10, 000 Payment of land compensation fees yuan Training person Employment person Land adjusted mu Reporter: ______Signature (person responsible): ______Official seal:

Table 10-2: Progress of Fund Utilization ______community, ______sub-district

Cut-off date: MM/DD/YY

Date of completion: MM/DD/YY Unit / Investment Compensation Adjust Affected units Introduction Rate Quantity (yuan) (yuan) compensation Village 1 Village 2 The collective Displaced

household Enterprise Reporter: ______Signature (person responsible): ______Official seal:

10.2. External Monitoring

201. According to ADB’s policies, the Tacheng Prefecture PMO will employ a qualified, independent and experienced resettlement agency as the external resettlement M&E agency. 202. The external M&E agency will conduct follow-up M&E of resettlement activities periodically, monitor resettlement progress, quality and funding, and give advice. It will also conduct follow-up monitoring of the APs’ production level and living standard, and submit M&E reports to the Tacheng PMO and then Tacheng PMO will submit the report to ADB.

10.2.1. Scope and Methodology of External Monitoring

(1) Baseline survey 203. The external M&E agency will conduct a baseline survey on the villages affected by LA and HD to obtain baseline data on the sample AHs’ production level and living standard. Subsequent production level and living standard surveys will be conducted annually to track variations of the APs’ production level and living standards of AHs. This survey will be conducted using such methods as random survey and acquired necessary information from random interview and field observation. A statistical analysis and an evaluation will be made on this basis.

(2) Periodic M&E 204. During the implementation of the RP, the external M&E agency will conduct periodic follow-up resettlement monitoring semiannually during the project implementation, of the following activities by means of field observation, panel survey and random interview:  Timely payment and amount of compensation  Training  Support measures for vulnerable groups and ethnic minority people  Restoration and reconstruction of infrastructure, ground attachements and special facilities  Restoration for production and resettlement people  Adequacy of compensation for lost properties  Compensation for lost working days  Timetables of the above activities (applicable at any time)  Resettlement network organization  compensation fee for collective land acquisition and resettlement earningsand  Job opportunities generated by the project. (3) Public consultation

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

(4) Grievance redress

206. The external M&E agency will visit the affected village periodically, and inquire with the Tacheng PMO, township government and village committees that accept grievances to assess how well grievances have been handled. It will also meet complainants and propose corrective measures and advice for existing issues so as to make the resettlement process more effectively. 207. The external monitor will also verify the data and findings of the internal monitoring reports.

10.2.2. External monitoring reporting 208. The external M&E agency will submit a monitoring and evaluation report to Tacheng Prefecture PMO and Tacheng PMO as following schedule.

Table 10-3:Reporting Schedule of External Resettlement M&E Resettlement report Date

1 Baseline survey March 2015

2 M&E Report (No.1) March 2015

3 M&E Report (No.2) September 2015

4 M&E Report (No.3) March 2016

5 M&E Report (No.4) September 2016

6 M&E Report (No.5) Mar ch 2017

7 M&E Report (No.6) September 2017

8 M&E Report (No.7) March 2018

9 M&E Report (No.8) September 2018

10 M&E Report (No.9) March 2019

11 M&E Report (No.10) December 2019

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Appendix 1: Applicable Laws, Regulations and Policies

Applicable provisions of the Land Administration Law of the PRC Ownership and right of use of land Article 8 Land in urban districts shall be owned by the State. Land in the rural areas and suburban areas, except otherwise provided for by the State, shall be collectively owned by peasants including land for building houses, land and hills allowed to be retained by peasants. Article 22 The amount of land used for urban construction shall conform to the standards prescribed by the State so as to make full use of the existing land for construction purposes, not to occupy or occupy as less agricultural land as possible. Urban general planning and the planning of villages and market towns should be in line with the general plans for land use. The amount of land for construction use in the urban general planning and the planning of villages and market towns shall not exceed the amount of land used for construction purposes in cities, villages and market towns fixed in the general plans for the utilization of land. The land for construction purposes in cities, villages and market towns within the planned areas of cities, villages and market towns shall conform to the city planning and the planning of villages and market towns. Article 24 People's governments at all levels shall strengthen the administration of plans for land use and exercise control of the aggregate land for construction purposes. Article 26 Revision of the general plans for land use shall be approved by the original organ of approval. Without approval, the usages of land defined in the general plans for the utilization of land shall not be changed. Whereas the purpose of land use defined in the general plans for the utilization of land needs to be changed due to the construction of large energy, communications, water conservancy and other infrastructure projects approved by the State Council, it shall be changed according to the document of approval issued by the State Council. If the purpose of land defined in the general plans for the utilization of land needs to be changed due to the construction of large energy, communications, water conservancy and other infrastructure projects approved by provinces, autonomous regions and municipalities, it shall be changed according to the document of approval issued by the provincial level people's governments if it falls into their terms of reference.

Protection of cultivated land Article 31 The State protects the cultivated land and strictly controls the conversion of cultivated land into non-cultivated land. The State fosters the system of compensations to cultivated land to be occupied. In the cases of occupying cultivated land for non-agricultural construction, the units occupying the cultivated land should be responsible for reclaiming the same amount of land in the same quality as that occupied according to the principle of "reclaiming the same amount of land occupied. Whereas units which occupy the cultivated land are not available with conditions of reclamation of land or

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the land reclaimed is not up to requirements, the units concerned should pay land reclamation fees prescribed by provinces, autonomous regions and municipalities for reclaiming land for cultivation the land reclaimed. Article 32 The local people's governments at and above the county level may demand units which occupy cultivated land to use the topsoil of the land occupied for use in the newly reclaimed land, poor land or other cultivated land for soil amelioration. Article 33 People's governments of all provinces, autonomous regions and municipalities shall strictly implement the general plans for the utilization of land and annual plan for the use of land, adopt measures to ensure not to reduce the total amount of cultivated land within their jurisdictions. Whereas reductions occur, the State Council shall order it to organize land reclamation within the prescribed time limit to make up for the reduced land in the same quantity and quality and the land administrative department of the State Council shall, together with agricultural administrative department, examine and accept it. Article 36 Land shall be used sparingly for non-agricultural construction purposes. Whereas wasteland can be used, no cultivated land should be occupied; whereas poor land can be used, no good land should be occupied. Article 41 The State encourages land consolidation. People's governments of counties and townships (towns) shall organize rural collective economic organizations to carry out comprehensive consolidation of fields, water surface, roads, woods and villages according to the general plans for the utilization of land to raise the quality of cultivated land and increase areas for effective cultivation and improve the agricultural production conditions and ecological environment. Local people's governments at all levels shall adopt measures to ameliorate medium-and low-yielding land and consolidate idle and scattered and abandoned land. Article 42 Whereas land is damaged due to digging, cave-in and occupation, the units or individuals occupying the land should be responsible for reclamation according to the applicable provisions of the State; for lack of ability of reclamation or for failure to meet the required reclamation, land reclamation fees shall be paid, for use in land reclamation. Land reclaimed shall be first used for agricultural purposes.

Land for construction purposes Article 43 Any unit or individual that need land for construction purposes should apply for the use of land owned by the State according to law, except land owned by peasant collectives used by collective economic organizations for building township enterprises or building houses for villagers or land owned by peasant collectives approved according to law for use in building public facilities or public welfare facilities of townships (towns). The term "apply for the use of land owned by the State according to law " used in the preceding paragraph refers to land owned by the State and also land originally owned by peasant collectives but having been acquired by the State. Article 44 Whereas occupation of land for construction purposes involves the conversion of agricultural land into land for construction purposes, the examination and approval procedures in this regard shall be required.

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For projects of roads, pipelines and large infrastructure approved by the people's governments of provinces, autonomous regions and municipalities, land for construction has to be approved by the State Council whereas conversion of agricultural land is involved. Whereas agricultural land is converted into construction purposes as part of the efforts to implement the general plans for the utilization of land within the amount of land used for construction purposes as defined in the general plans for cities, villages and market towns, it shall be approved batch by batch according to the annual plan for the use of land by the organs that approved the original general plans for the utilization of land. The specific projects within the scope of land approved for conversion shall be approved by the people's governments of cities or counties. Land to be occupied for construction purposes other than those provided for in the second and third paragraphs of this article shall be approved by the people's governments of provinces, autonomous region and municipalities whereas conversion of agricultural land into construction land is involved. Article 45 The acquisition of the following land shall be approved by the State Council: 1. Basic farmland; 2. Land exceeding 35 hectares outside the basic farmland; Acquisition of land other than prescribed in the preceding paragraph shall be approved by the people's governments of provinces, autonomous regions and municipalities and submitted to the State Council for the record. Acquisition of agricultural land should first of all go through the examination and approval procedure for converting agricultural land into land for construction purposes according to the provisions of Article 44 of this law. Whereas conversion of land is approved by the State Council, the land acquisition examination and approval procedures should be completed concurrently with the procedures for converting agricultural land to construction uses and no separate procedures are required. Whereas the conversion of land is approved by people's governments of provinces, autonomous regions and municipalities within their terms of reference, land acquisition examination and approval procedures should be completed at the same time and no separate procedures are required. Whereas the terms of reference have been exceeded, separate land acquisition examination and approval procedures should be completed according to the provisions of the first paragraph of this article. Article 46 For acquisition of land by the State the local people's governments at and above the county level shall make an announcement and organize the implementation after the approval according to the legal procedures. Owners or users of the land acquired should, within the time limit specified in the announcement, go through the compensation registration for acquired land with the land administrative departments of the local people's governments on the strength of the land certificate. Article 47 In acquiring land, compensation should be made according to the original purposes of the land acquired. Compensation fees for land acquired 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 acquisition of the cultivated land. The resettlement fee shall be calculated according to the number of agricultural

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population to be resettled. The number of agricultural population to be resettled shall be calculated by dividing the amount of cultivated land acquired by the per capital land occupied of the unit whose land is acquired. 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 acquisition of the cultivated land. But the maximum resettlement fee per hectare of land acquired shall not exceed 15 times of the average annual output value of the three years prior to the acquisition. The standards for land compensation and resettlement fees for land acquired shall be determined by various provinces, autonomous regions and municipalities in reference to the land compensation fees and resettlement fees for cultivated land acquired. The standards for compensating for ground attachments and green crops on the land acquired shall be determined by various provinces, autonomous regions and municipalities. In acquiring vegetable fields in suburban areas, the units using the land should pay new vegetable field development and construction fund. Whereas the land compensation fees and resettlement fees paid according to the provisions of the second paragraph of this article are not enough to maintain the original level of living, the resettlement fees may be increased with the approval of the people's governments of provinces, autonomous regions and municipalities. But the combined total of land compensation fees and resettlement fees shall not exceed 30 times the average output value of the three years prior to the acquisition. In special circumstances, the State Council may raise the standards for land compensation and resettlement fees for land acquired according to the social and economic development level. Article 48 After the plan for land compensation and resettlement fees is finalized, related local people's governments shall make an announcement and hear the opinions of the rural collective economic organizations and peasants whose land has been acquired. Article 49 Rural collective economic organizations shall make public to its members the receipts and expenditures of the land compensation fees for land acquired and accept their supervision. It is forbidden to embezzle or divert the land compensation fees and other related expenses. Article 50 Local people's governments at all levels shall support rural collective economic organizations and peasants in their efforts toward development and operations or in starting up enterprises. Article 52 In the process of the feasibility study for construction projects, land administrative departments may examine the related matters concerning the land for construction purposes and put forward their proposals according to the general plans for the utilization of land, the annual plan for the use of land and standards for land used for construction purposes. Article 53 Whereas a construction project approved needs land owned by the State for construction purposes, the construction unit should file an application with land administrative department of the people's government at and above the county level with the power of approval on the strength of related documents required by law and administrative decrees. The land administrative department shall examine the application and submit it to the people's government at the same level for approval.

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Article 54 A paid leasing should be go through in use of land owned by the State by a construction unit. But the following land may be obtained through government allocation with the approval of the people's governments at and above the county level according to law: 1. Land for use by government organs and for military use; 2. Land for building urban infrastructure and for public welfare undertakings; 3. Land for building energy, communications and water conservancy and other infrastructure projects supported by the State; 4. Other land as provided for by the law and administrative decrees. Article 55 Construction units that have obtained State-owned land by paid leasing can use the land only after paying the land use right leasing fees and other fees and expenses according to the standards and ways prescribed by the State Council. Starting from the date when this law comes into effect, 30% of the leasing fees for new construction land shall be handed over to the central finance, with the rest 70% to be retained by related local people's governments, for the development of land for cultivation. Article 56 In using State-owned land, construction units should use the land according to the provisions of the contract for compensated use of leased land use right or according to the provisions of the documents of approval concerning the allocation of land use right. The change of the land to construction purposes should get the consent from the land administrative departments of the related people's governments and be submitted to the people's governments that originally give the approval for the use of land. In changing the purpose of land within the urban planned areas, the consent should be obtained form the related urban planning administrative departments before submission for approval. Article 57 In the case of temporary using State-owned land or land owned by peasant collectives by construction projects or geological survey teams, approval should be obtained from the land administrative departments of local people's governments at and above the county level. Whereas the land to be temporarily used is within the urban planned areas, the consent of the urban planning departments should be obtained before being submitted for approval. Land users should sign contracts for temporary use of land with related land administrative departments or rural collective organizations or villagers committees depending on the ownership of the land and pay land compensation fees for the temporary use of the land according to the standard specified in the contracts. Users who use the land temporarily should use the land according to the purposes agreed upon in the contract for the temporary use of land and should not build permanent structures. The term for the temporary use of land shall not usually exceed two years. Article 58 In one of the following cases, the land administrative departments of related people's governments shall recover the land use right of State-owned land with the approval of the people's governments that originally gives the approval or the people's governments with the power of approval: 1. Use land for the sake of public interests; 2. Use land for adjustment in re-building old city districts in order to implement urban construction plans;

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3. When the term for the land use right expires according to what is agreed upon in the contract for compensated use of land, the land user has failed to apply for extension or failed to get approval for extension; 4. The use of land originally allocated has been stopped due to cancellation or removal of units; 5. Roads, railways, airports and mining sites that have been approved to be abandoned. Proper compensation should be given to land use right users whereas the use right of State-owned land is recovered according to the provisions of 1 and 2 of the preceding paragraph. Article 62 One rural household can own one piece of land for building house, with the area not exceeding the standards provided for by provinces, autonomous regions and municipalities. Construction of rural houses should conform to the general plans for the utilization of land of townships (towns) and the original land occupied by houses and open spaces of villages should be used as much as possible for building houses. The use of land for building houses should be examined by the township (town) people's governments and approved by the county people's governments. Whereas occupation of agricultural land is involved the examination and approval procedure provided for in Article 44 of this law is required. The application for housing land after selling or leasing houses shall not be approved. Article 63 The land use right of peasant collectives shall not be leased, transferred or rented for non-agricultural construction, except in the case of legal transfer of the land that conforms to the general plan for the utilization of land and legally obtained by enterprises due to bankruptcy or acquisition. Article 64 Buildings or structures put up before the general plan for the utilization of land and unconformable to the general plans are not allowed to be rebuilt or expanded. Article 65 In one of the following cases, the rural collective economic organizations may recover the land use right with the approval of the people's government that gives the approval for the use of land: 1. Land needed for building public facilities and public welfare undertakings of townships (towns) and villages; 2. Land not used according to the purposes approved; 3. Land not used any more due to cancellation or removal of the original units. Proper compensation shall be given to land users in the case of recovering the land owned by peasant collectives provided for in item 1 of the preceding paragraph. Regulation on Expropriation and Compensation of Houses on State-owned Land Article 8 In order to meet the public interests such as safeguarding the state security and promoting national economic and social development, the house expropriation is definitely needed for any of the following conditions. Then the city or county people’s government can make the decision of house expropriation. (1) the need of national defense and foreign affairs;

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(2) the need of infrastructure construction for energy, transport, and water conservancy organized and implemented by the government; (3) the need of public affairs for science and technology, education, culture, health, sports, environmental and resources protection, disaster prevention and mitigation, cultural relic protection, social welfare, and municipal utilities organized and implemented by the government. (4) the need for low-income house organized and implemented by the government; (5) the need for reconstruction of the dangerous houses and poor infrastructure district in accordance with the relevant provisions of the urban and rural planning organized and implemented by the government; (6) the need for other public interests needs set by laws, administrative rules and regulations.

Article 10 The house expropriation departments makes an initial draft for expropriation and compensation and submit to city or county people's government. The city or county people's governments shall organize relevant departments to demonstrate and publish the expropriation and compensation draft to ask for public opinion, the period of which should not be less than 30 days.

Article 12 Before the city or county people's government makes the decision of house expropriation, the government should make a social stability risk assessment. If the amount of house expropriation is large, it should be discussed and decided by the executive meeting of the government. Before the decision of house expropriation is made, the fund of expropriation and compensation should be in full amount in place, be deposited in special account and used only for this purpose.

Article 13 After the decision of house expropriation was made, the city or county people’s government should announce it in time. The announcement should include the house expropriation and compensation plan, the rights for the administrative reexamination and administrative proceedings and so on. The city or county people's governments and the house expropriation department should do well in propagating and explaining the house expropriation and compensation. The house is expropriated legally, at the same time, the use rights for state-owned land is also taken back.

Article 16 After the range of house expropriation is determined, it is banned to newly build, expand, rebuild houses and to change the use of houses for more unreasonable compensation; no compensation will be paid to the implementation against the regulations. The house expropriation department should inform the relevant departments the above-mentioned behavior in written form to suspend relevant procedures. The written form should make the period of suspension clear, which should be no longer than one year.

Article 17 The compensation to the expropriate by the city or county government that make the decision of house expropriation should include the following: (1) Compensation for the value of expropriated house; (2) The compensation for moving house and temporary shelters caused by house

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expropriation; (3) The compensation for production shut-down or business shut-down caused by house expropriation. The city or county people's government should formulate subsidies and incentive measures to subsidize and reward the expropriated household.

Article 19 The compensation of the expropriated house should not be lower than the market price of the similar house on the publish date of the house expropriation decision. The value of expropriated house is decided by the qualified house evaluation organs according to the formulations of expropriated house evaluation.

Article 21 The expropriated household/entity can choose monetary compensation or choose house property right exchange.

Article 25 Based on the provisions of this regulation, the house expropriation department and the expropriate sign compensation agreement on compensation method, compensation amount, payment period, the location and area of the house for property right exchange, moving fee, temporary relocation fee or temporary shelter house, production shut-down and business shut-down loss, time limit for removal, the transition way and transition period, and so on.

After the signing of the agreement, if one party does not fulfill the appointed obligation in the agreement, the other party can lodge a lawsuit according to law.

Article 26 If the house expropriation department and the expropriate can not reach a compensation agreement during the signing period defined by the house expropriation plan, or the owner of the expropriated house is not clear, the house expropriation department reports to the city or county people’s government to make compensation decision and shall make public announcement in the house expropriation range according to the provisions of this regulation and the house expropriation plan.

The compensation decision should be fair, including the relevant compensation agreement in Item 1, Article 25 of this regulation.

If the expropriate refuses to accept the compensation decision, he can apply for administrative the administrative reexamination or lodge a lawsuit according to law.

Article 27 The implementation of house expropriation shall compensate first and then move. After the city or county people's government that makes the house expropriation decision compensates the expropriated household/entity, the expropriated household/entity should finish moving within the deadline defined by the compensation agreement or compensation decision. No unit or individual can force the expropriate to move by violence, threat or illegal ways such as cutting off water supply, heat supply, gas supply, power supply and traffic, and the construction unit is banned to take part in the removal activity.

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Article 29 The house expropriation department shall establish house expropriation and compensation files according to laws, and publish compensation for each household for the expropriate in the house expropriation range. Regulations of XUAR for the Implementation of the Land Administration Law of the

PRC Chapter 1 General Provisions Article 2 These Regulations shall be complied with by all those who engage in land protection, development, utilization, supervisory and administrative activities within the jurisdiction of Xinjiang Uygur Autonomous Region. Article 6 State-owned land shall be used on a compensated basis according to law, and shall not be invaded, traded or transferred illegally by any entity or individual in any form. Governments at all levels shall take stops to plan, strictly manage, conserve and develop land resources, and prohibit illegal land occupation. Chapter 2 Land ownership and use rights Article 8 Users of state-owned land and owners or users of collective land must apply for land registration with the administrative authority for land of a county-level or above government, and obtain a permit to use state-owned land or certificate of ownership or permit to use collective land. Chapter 4 Farmland protection and land reclamation Article 20 A compensation system for farmland occupation is practiced in Xinjiang Uygur Autonomous Region. Anyone who occupies farmland for nonagricultural construction with approval must be reclaim farmland of the same amount and quality as the occupied farmland or obtain it by land consolidation; where conditions do not permit farmland reclamation, farmland reclamation fees shall be paid at a rate of 15,000-45,000 yuan per hectare based on the rating of the occupied farmland to be used specifically for farmland reclamation. Article 21 Anyone who occupies basic farmland with legal approval and has to pay farmland reclamation fees shall pay such fees at 1.5 times the rate for ordinary farmland reclamation. Article 25 The following types of land shall not be reclaimed: (1) Prohibited areas identified in overall land utilization plans; (2) Natural hay fields, artificial pastures, fenced pastures and high-grade pastures; (3) Woodland and river or lake flat; (4) Sloping land with a gradient of over 25 degrees and desert land exposed directly to sandstorm; and (5) Areas whose ownership is disputed. Chapter 5 Land for Construction

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Article 31 The examination and approval procedures for converting agricultural land to construction uses shall be gone through in accordance with the following provisions in case land is occupied by state construction. (1) In the range of the land for village and town construction defined in the overall planning of township land utilization, the use of the land collectively owned by farmers and herdsmen for construction of township and village enterprises, rural common facilities, public utilities, rural roads, water conservancy projects and other facilities is subject to the approval of autonomous prefecture or municipal people’s government or administrative office according to the control quotas defined by the yearly plan for land use. (2) In the range of the land for village and town construction defined in the overall planning of land utilization, the use of the land for implementation of the planning is subject to the approval of the People’s Government of the autonomous region or shall comply with the provisions of the laws and regulations approved by the State Council. Article 35 Land expropriated for state construction shall be compensated according to the following standards: (1) 8 to 10 times the annual output value of local cultivated land shall be compensated for expropriated basic farmland; (2) 7 to 9 times the annual output value of local cultivated land shall be compensated for expropriated irrigable land and fish pond other than basic farmland; (3) 7 to 8 times the annual output value of local cultivated land shall be compensated for expropriated dry cultivated land other than basic farmland; (4) 6 to 7 times the annual output value of local cultivated land shall be compensated for expropriated forest land, artificial grassland, house site, rural road, threshing floor and other lands; (5) 6 times the annual output value of local grassland shall be compensated for expropriated natural grassland; The land as sated in Point (1), (2), (3) and (4) expropriated for construction of major transport, water conservancy and other projects approved by the state or the autonomous region shall be compensated 6 times the annual output value of local cultivated land. The output values of all types of cultivated lands and grasslands shall be determined to the average annual production value of the three years before requisition. Article 36 The young crops and their attachments on expropriated land shall be compensated to the following standards: (1) Common young crops shall be compensated to their average output value of in the last three years. Young root crops shall be compensated to 2 to 3 times their average output value of in the last three years. (2) The buildings, structures, other facilities and forest trees on expropriated land shall be compensated according to the actual losses under the relevant stipulations. (3) For the relocation of the tombs on expropriated land, the local people’s government makes an announcement on and time limit of and reimbursement for rebury in pursuance of

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the relevant prescriptions. Unclaimed tombs and those having not been relocated within the time limit will be removed by the associated department as organized by the local people’s government. Article 37 The relocation subsidy for expropriated arable land shall be paid under the Land Administration Law of the PRC, Article 47, Clause 2. The relocation subsidy may be appropriately increased provided that the per capita arable land is less than 0.1 hectare before land requisition. However, the total sum of the land compensation and relocation subsidy for expropriated land shall not exceed 30 times its average annual output value before land requisition. The relocation subsidy for expropriated fish pond shall be paid with reference to that for adjacent cultivated land. The relocation subsidy for expropriated forest and grass lands shall be determined with reference to that for cultivated land requisitioned. No relocation subsidy shall be paid for the requisition of house sites, rural roads and threshing floor. Article 39 The compensation for expropriated rural land of collective economic organization is owned by the rural collective economic organization. The compensation for the attachments and young crops on the land is owned by their respective owners. The collective economic organization expropriated of land shall make the incomings and outgoings of the compensation for land requisition to its members and subject itself to supervision. Misappropriation and peculation of the compensation for the land requisition and other related funds are prohibited. Article 40 When the people expropriated of land are to be resettled by a rural economic organization, the resettlement subsidy shall be paid to the organization, which manages and uses the money according to laws. If they are to be resettled by other organization, the resettlement subsidy shall be paid to the corresponding resettling organization. In case no unified resettlement is required, the resettlement subsidy shall be paid to the individuals to be resettled or used for pay their insurance expense with their approval. The resettlement subsidy shall be earmarked its specified purposes only without peculation. Municipal, county and township governments shall enhance the supervision of the use of resettlement subsidy. Article 46 The areas of the house sites of rural villagers shall follow the following standards (by county for per capita cultivated land). (1) The area of the house site of each household shall not be greater than 200m2 if the per capita cultivated land is less than 0.04 hectare. (2) The area of the house site of each household shall not be greater than 300m2 if the per capita cultivated land is 0.04 to 0.07 hectare. (3) The area of the house site of each household shall not be greater than 400m2 if the per capita cultivated land is 0.07 to 0.1 hectare. (4) The area of the house site of each household shall not be greater than 500m2 if the per capita cultivated land is 0.1 to 0.14 hectare. (5) The area of the house site of each household shall not be greater than 600m2 if the per capita cultivated land is 0.14 to 0.34 hectare.

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(6) The area of the house site of each household shall not be greater than 800m2 if the per capita cultivated land is over 0.34 hectare. The above standards for the areas of house sites may be appropriately raised up to twice if unused lands are used for building houses. "Autonomous notice on the promulgation and implementation of a unified annual output value standard " (Xinjiang MLR [2011] No.19) Yili Kazak Autonomous Prefecture Land and Resources Bureau, Development and Reform Commission, the Financial Bureau, around the City Land Resources Bureau, Development and Reform Commission, the Financial Bureau: Autonomous land unified annual output value standard has been approved by the regional government, are hereby promulgated. After January 1, 2011, land for construction of new reporting, involving imposition of collective farmland, garden compensation standards here. Former Autonomous Region Development Planning Commission, Ministry of Finance "On Land and Resources issued the autonomous system of land management administrative fees notice" ( New Price house 500 [2001]) Note A, and table Note C adjusted accordingly Please do a good job around the convergence of old and new compensation standards work, increase efforts to explain the policy advocacy, and effectively safeguard the interests of landless farmers and herdsmen. Accessories: autonomous land unified annual output value standard

Collective land compensation standard First grade collective Second grade collective Degree Third grade collective land land land Compensation standard 1500 800 600 (yuan/mu) Note 1 This table standard applies to arable cultivation of food crops. 2, the annual output value of farmland planted specialty crops, vegetable, orchard farmland should be higher than the first-class standard table; cotton fields should be paid at maximum of 1.5 times; orchard may not exceed two times; vegetable may not exceed three times; grapes ground shall not exceed 4 times. Other crops actual annual output estimates Standard of resettlement subsidy Per capita arable area Times of resettlement subsidy standard (mu) >3.0 mu 12—13 2.0 —3.0 14—16 1.0 —2.0 17—20 30 times of the sum of land compensation fees <1.0 mu and resettlement subsidy Note: The land compensation and resettlement subsidies multiples of two and 20 times the compensation shall not be less than the base. Land compensation fee is generally 8 times.

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Table Notes to Document [XJJF (2001) No.500]

Appendix 1 Table 1.1 Calculation bases of farmland compensation Unit: Yuan/mu I II III Class (High-yield) (High-yield) (High-yield)

Level 1500 800 600

1. These rates apply to farmland on which cereal crops are grown; 2. For farmland on which special crops are grown, vegetable plots and orchards, annual Notes output values shall be higher than that of Grade I farmland; that of cotton land may be up to 1.5times, that of orchards up to 3 times, that of grape land up to 2 times, and that of other cash crops measured at actual annual output value.

Note: the amount of land compensation and resettlement subsidy can’t lower 20 times than compensation standard; land compensation is 8 times.

Table 1.2 Calculation bases of pasture land compensation Unit: Yuan/mu Class I II III Base amount Excellent/good Medium Inferior Level

1 328 262 120 2 262 148 88 3 136 96 63 4 80 69 50

Table 1.3 Standard of resettlement subsidy Per capita arable area Multiple of average annual (mu) output value of the past 3 years

>3.5 mu 4 —5 3.0 —3.5 6 —7 2.5 —3.0 8 —9 2.0 —2.5 10—12 1.5 —2.0 13—15 1.0 —1.5 16—18 0.5 —1.0 19—20 30 times of the sum of land compensation fees and <0.5 mu resettlement subsidy

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Table 1.4 Standard of compensation fees for urban state-owned land Unit: Yuan/m2 Entity Within built-up area Out of built-up area Urumqi Municipality 30 20 Karamay, Shihezi, Kuytun, Changji, Bole, Yining, Tacheng, Korla, Altay, Turpan, Hami, Aksu, Artux and 20 10 Hetian Municipalities Other counties (cities) 15 8 Other townships 6 2

Table 1.5 Compensation rates for timber and commercial forests Item / species Unit Tree specification (breast diameter, cm) Compensation rate (Yuan) / <5cm 10-15. / 5-15cm 15-25 Broad-leaf forest / 13 -30cm 25-35 / >30cm 45 / <5cm 20-30

Coniferous / 5-15cm 30-50 forest / 13 -30cm 50-70 / >30cm 90 / <5cm 20-40 / 5-15cm 40-60 Fruit tree / 13 -30cm 60-100 / >30cm 120 / Not bearing fruit below 3 years 30-70 Grape / Bearing fruit above 3 years 701 - 10 Note: The forest compensation fees of Zhengbo Reserve are higher by 50%.

Table 1.6 Compensation rates for scrub forests Close canopy (%) Rate (yuan/mu) 20—40 300 40—60 500 >60 600

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Table 1.7 Rates of management fees for temporary land uses Land type and Nature of land Rate Remarks area Land for infrastructure Any period less than construction projects, one year shall be such as energy, traffic, counted as one year, 20 yuan/year*mu water resources, and more than one communication and year but less than two investigation years as two years. Within built-up 1- 2 yuan/month*m2 Operating temporary area land uses Out of built-up 2 0.1-0.5 yuan/month*m area Within built-up 2 0.3-0.5 yuan/month*m Other temporary land area uses Out of built-up 2 0.1-0.3 yuan/month*m area

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Appendix 2: Resettlement Information Booklet (RIB)

(Name of affected person)

In order to relieve traffic congestion, and improve road safety and the county town’s overall image, Tacheng City Government (executing agency) plans to use part of an ADB loan to implement a municipal infrastructure in Tacheng City, which is one of components of the ADB-financed Xinjiang Tacheng Border Cities and Counties Development Project. The Project will affect your family (entity) to some extent. This booklet is provided to you so that you understand the basic information of the Project, state policies on land acquisition, house demolition and resettlement, and possible impacts on you. I. Composition of the Project The project includes six parts: (i) Road Construction: construction of 13 new roads with 29,447 m length in Tacheng New District, including lightning, signs, and landscaping facilities, and 51 alley reconstruction with 14.06 km length; (ii) Water Supply: installation of 45,443 m warter supply pipeline; (iii) Drainage: installation of 48.97 km drainage pipeline and 1,220 manholes; (iv) District Heating: installation of 18,605×2 m hot warter pipeline and 21 heat exchange stations; (v) Kalanggur River Rehabilitation: rehabilitation of about 15.12 km river banks, and construction of 4 bridges and 15.5 km flood rescue roads; and (vi) Municipal Solid Wastement Management (MSW): including 2 automatic garbage collecting stations, 300 sortable garbage bins, 32 garbage bins, 3 movable and compressible garbage bins, 9 public toilets, and 23 sanitation trucks.. Tacheng construction bureau is the implementation agency of the project. II. Impacts of the Project Land acquisition (LA) and house demolition (HD) of the project will affect 1 town (Ergong town), six villages (Shangtakensi, Sazi , Mayahai, Tasiken, Bali and Wuli) and 1 state-owned farm (Yuanyichang village), and 1,653 people (including enterprises and stores) will be affected, in which 242 persons are ethnic minorities, accounting for 14.64% of the total affected persons (APs). 263 families with 866 members are affected by HD only, and 158 famlies with 560 members by LA only, and 29 famlies with 100 members by both. A total land of 1,743.41 mu will be acquired permanently, including 902.67 mu state-owned land and 840.74 mu collective land. The state-owned land consists of (i) 348.16 mu of cultivated land, orcharding land, hops garden; (ii) 59.30 mu residential land; (iii) 28.14 mu industray land and 1.01 mu commercial land; and (iv) 3.35 mu unused and 462.71 mu construction land. The LA of the state-owned land will not affected any buildings and attachments, and people. 840.74 mu collective land includes 646.26 mu of cultivated land, orcharding land, hops garden, vegetable garden and scattered land. It will affect 193 famlies with 646 members (including 14 familes with 49 menbers affected by both LA and HD), and 43 families with 137 members of whom are minorities. 76,819 m2 of house area will be demolished, including 60,106 m2 of urban residential house area, 276 m2 of store houses and 16,436 m2 of enterprise building. 187 familes with 660 menbers, including 26 ethnic minority familes with 98 members, five persons of five stores and 122 persons (including 22 minorities) of 10 enterprises will be affected by the HD.

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III. Compensation Standards

Compensations for collective and state-owned cultivated lands:

According to the Reply on the Uniform AAOV Rates for Land Acquisition of XUAR (XG [2010] No.323) and the Implementation of Autonomous Public Notice on Unified Annual Output Value Standard (XL&R issued [2011] No.19, the compensation is paid for the LA and HD. The compensation standards for collective cultivated land and state-owned cultivated land are shown in Table 1 and 2, respectively.

Table 1: Compensation Standards of Collective Cultivated Land Compensation standard (yuan/mu)

Type Land compensation Resettlement subsidy Young corps Total

General farm 12 ,000 25 ,500 1,500 39 ,000 land Vegetable land 36 ,000 76 ,500 4,500 117,000

Compensation will be paid according to 75,000 as Orchard 24 ,000 51 ,000 species and diameters basis of fruit trees.

Compensation will be paid according to 75,000 as Hops Land 24 ,000 51 ,000 species and diameters basis of hops trees.

Source Tacheng Land and Resource Bureau Table 2: Compensation Standards of State-owned Cultivated Land Compensation standard (yuan/mu) Type Land Resettlement Young corps Total compensation subsidy Cultivated land 12,000 30,000 1,500 43,500 (general farm land) Compensation will be paid 84,000 as Orchard 24,000 60 ,000 according to species and basis diameters of fruit trees Compensation will be paid 84,000 as Hops Land 24,000 60,000 according to species and basis diameters of trees Source Tacheng Land and resource bureau All of resettlement subsidy, the compensation for young crops and ground attachments will be paid to the affected households directly, while the land compensation will be paid to the village committee first, in accordance with Article 26 of the "Regulations for the Implementation of Land Administration

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Law"-The land compensation paid to the rural collective economic organizations", and later all the villagers will have meetings to discuss how to use the compensation. All the compensation for occupied various collective land and uncontracted land of collective village will be paid to the village collective directly.

Compensations for Woodland:

Woodland will be compensated based on the Notice on the Implementation of the Reply of the XUAR Government on Approving the Uniform AAOV Rates for Land Acquisition (XFR [2011] No.161) issued by the XUAR Department of Forestry and Notice on the Implementation of Unified Annual Output Value Standard of XUAR" (XLRB issued [2011] No.19).

Table 3: Compensation Standards of State-owned Woodland

Compensation rate (yuan/mu) Land type Compensation fee for Resettlement subsidy Total woodland for woodland Arbor forest 12,000 25,500 37,500

Source Tacheng Land and resource bureau

Table 4: Forest Vegetation Restoration Fees

Land type Forest vegetation restoration fees (yuan/m2) Shelterbelts for farmland 8 Timber or economic forest 6 Source Tacheng Land and resource bureau

Compensations for collective construction and unused lands

According to Notice on the Implementation of Unified Annual Output Value Standard of XUAR (issued by XLRB [2011] No.19, the compensation standards for collective construction and unused lands are 4,800 yuan/mu. The compensations will be paid to the village committee first, and later all the villagers will have meetings to discuss how to use the compensation.

Compensation standard for collective homestead

For permanent acquisition of collective homestead, the compensation standard is referring to the compensation for state-owned urban housing land in Tacheng City in 2013.

Compensation standards for residential house demolition

209. House demolition compensations will be in accordance with the Acqusition and Compensation Ordinance for Houses on State-owned Land promulgated by Xinjiang Uygur Autonomous Region People's Government on January 1, 2014. The HD compensation includes not only compensation for housing structure but also the residential land and homestead compensation.

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Table 5: Compensation Standard of Residential House Demolition Standard Type Structure Unit Remark (yuan) Masonry concrete yuan/m2 2,900

2 Color-coated steel yuan/m and Masonry 2,850 concrete Main House 2 Color-coated steel yuan/m 2,850

Masonry timber yuan/m2 2,850

Earth timber yuan/m2 2,800

Masonry concrete yuan/m2 1,500

Wing Room Masonry timber yuan/m2 1,300

Earth timber yuan/m2 1,250

Masonry concrete yuan/m2 1,000

2 Color-coated steel yuan/m 750

Masonry timber yuan/m2 800 Affiliared House Earth timber yuan/m2 750

2 Earth timber and yuan/m 800 outsourcing brick

2 Color-coated steel yuan/m 350

yuan/m2 Color-coated steel 350 Masonry concrete Sheds

Masonry timber yuan/m2 400

Earth timber yuan/m2 350

Timber yuan/m2 250

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2 Color-coated steel yuan/m 200 Simple sheds Masonry timber yuan/m2 200

Masonry concrete yuan/m2 1,200

yuan/m2 Color-coated steel 1,150 Stables Masonry timber yuan/m2 1,150

Earth timber yuan/m2 1,100 Land compensation

2 Class I yuan/m 320 Only State-owned 2 compensate residential land and Class II yuan/m 260 for the vacant homestead Class III yuan/m2 190 land in yard. Class IV yuan/m2 140 Other Compensation Moving Subsidy HH 1,000 Calculated in Temporary transitional subsidy HH/month 20 0 18 months Source: Tacheng City House Demolition Management Office

Compensation standards for public institution

The compensation price of housing real estate appraisal will be carried out on-site by a housing real estate appraisal and survey company. The appraisal results will be consulted with the affetced institutions.

Table 6: Compensation Standard for Public Institution

Structure Unit Standard (yuan) Remark yuan/m2 Masonry concrete 1,600 yuan/m2 Color-coated steel 1,450 yuan/m2 Masonry timber 1,450

2 Earth timber yuan/m 1,300

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Compensation for Land

Commercial Land Grade IV yuan/m2 180

Industry land Grade IV yuan/m2 125

Residential land and yuan/m2 Grade IV 140 homestead

Other Compensation

Moving Subsidy HH 2,000

There is no transition subsidy, Temporary because it will not

transitional subsidy be demolished until operations getting normal,

Source ： From Tacheng City House Demolition Office in November 2014

Compensation standards for commercial stores

210. According to the preliminary appraisal and location of affected shops, the compensation standards are presented in Table 7.

Table 7: Compensation Rates for Commercial Stores Structure Unit Standard (yuan) Remark Masonry concrete yuan/m2 2,000 Compensation for Land St ate-owned Residential land Grade IV Yuan/m2 140 and homestead Other Compensation Moving Subsidy HH 1,000 Temporary Calculated in 18 transitional HH/Month 200 months subsidy Source ： From Tacheng City House Demolition Office in November 2014

Compensation standards for attachments

Compensation standards of attachments and special facilities affected by the project are shown in Table 8.

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Table 8: Compensation Rates for Attachment and Facilities Compensation Items Amount Owner standard Well set 36 1,200 Individual Sewage pit unit 9 800 Individual Crusty pancakes pit unit 8 500 Individual Vegetable cellar set 10 300 Individual <5cm 40 18 Individual 5-15cm 77 35 Individual Elm 15 -30cm 59 100 Individual >30cm 3 120 Individual 5cm 10 ,600 20 Individual 5-15cm 309 40 Individual Poplar 15 -30cm 720 60 Individual 30cm 17 80 Individual Willow 5-15cm 4 40 Individual 5cm 378 40 Individual 5-15cm 274 60 Individual Apple tree 15 -30cm 629 80 Individual 30cm 571 100 Individual Jujube tree 5-15cm 20 60 Individual Sand jujube 15 -20cm 6 18 Individual Walnut tree 5-15cm 11 100 Individual 5-10cm 42 40 Individual Pear 15 -20cm 10 80 Individual Peach trees 5-15cm 19 80 Individual 5-10cm 17 40 Individual Plum tree 15 -30cm 39 60 Individual 5-10cm 7 20 Individual Apricot 15 -20cm 9 40 Individual 30cm 8 80 Individual 5-15cm 86 40 Individual Ash tree 30cm 2 60 Individual Vines 5-15cm 229 80 Individual 5-10cm 6 20 Individual Ash 15 -20cm 1 40 Individual 30cm 4 80 Individual Cherry tree 5-10cm 5 40 Individual Chestnut 5-10cm 23 40 Individual Source ： From Tacheng City House Demolition Office in November 2014

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IV. Entitlement Matrix The entitlement of APs are shown in Table 9.

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Table 9: Entitlement Matrix Type of Impact APs Entitlements Compensation Policy and Rates Impact Scope Rights: (i) land compensation will be paid to village collective economic organizations, while both resettlement subsidy and crop compensation will be paid to the APs when chose the monetory compensation; (ii) landless farmers can participate in social insurance; (iii) during project construction, the PMO will provide unskilled job priority to APs, so that the APs 840.74mu, will generate cash (i) For the general farm land, land 193HH with income; and (iv) the compensation rate is 12,000 yuan/mu; 646 people, PMO will provide resettlement subsidy is 25,500 yuan/mu; including 43 technical training for and young crop compensation is HH with 137 APs, inviting the 28 HHs with 1,500yuan/mu. The total is 39,000 ethnic people. technical staffs from 103 people in yuan/mu; agricultural sector and Wuxing Village; (ii) For the vegetable land: land compensation The land the labor and social 38 HHs with rate is 36,000 yuan/mu; resettlement includes security bureau to 127 people in subsidy is 76,500 yuan/mu; and crop Permanent farmland of carry out trainings on Bali Village; 64 compensation is 4,500 yuan/mu. The total is Acquisition 360.32 mu, farming and HHs with 217 117,000 yuan/mu; of Collective orchards of non-agricultural people in (iii) For the orchard: Land compensation rate is Land 200.01 mu, production, and make Tasiken 24,000 yuan/mu; resettlement subsidy the hops of sure all APs received Village; 63 HHs standard is 51,000 yuan/mu; the 50.25mu the training at least 2 with 199 compensation would be paid according to vegetable times. people in the species and the diameters of the trees. land of 15.49 Measures to restore Mayihai Village (iv) Way of compensation: (a) in accordance mu, the livelihood of APs with the land compensation standard shelterbelts include: (i) with the autonomous conduct cash compensation; and sporadic help of cash (b) landless farmers can participate in social and woodland compensation, APs insurance. of 20.19 mu. can engage in non-agricultural activities, such as transportation or business; (ii) landless farmers can participate in social insurance, to maintain their income level; (iii) adjusting the agricultural structure, via the guidance and technical training from government, to expand the acreage of cash crops, and (iv) develop family breeding to improve the economic income.

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Type of Impact APs Entitlements Compensation Policy and Rates Impact Scope Rights: (i) Land compensation and resettlement subsidy in 100% will be paid to the state-owned farmland management committee; while crop compensation in 100% will be paid to the APs; (ii) APs can get the same area of arable land with equal quality by reallocation of the farm; (iii) During project construction, the PMO will provide unskilled job priority to APs; and (iv) the PMO 348.16 mu will organize technical from training for APs, Yuanyichan inviting the technical (i) For the general farm land, land g, 99 HH staffs from agricultural compensation rate is 12,000 yuan/mu; with 320 sector and the labor resettlement subsidy standard is 30,000 people and social security yuan/mu; and crop compensation is 1,500 were bureau to carry out yuan/mu. The total is 43,500 yuan/mu; affected, 99 HHs with trainings on farming, (ii) For the orchard and the hops: land Permanent including 5 320 people in husbandry, compensation rate is 24,000 yuan/mu; Acquisition HH with 19 Yuanyichang non-agricultural resettlement subsidy standard is 60,000 of ethnic Farm and the production, and yuan/mu; the compensation would be paid State-owne groups. farm others related, to according to the species and the diameters d Land management make sure all APs of the trees. The land committee received at least 2 (iii) Way of compensation: (a) in accordance with includes times training. the land compensation standard farmland of autonomous conduct cash compensation; 131.21 mu, Measures to restore (b) regain the same area of arable land with orchards of the livelihood of APs equal quality by land reallocation. 103.07 mu, include: (i) with the the hops of help of cash 113.88 mu compensation, APs can engage in non-agricultural activities, such as transportation or business; (ii) adjusting the agricultural structure, via the guidance and technical training from government, to expand the acreage of cash crops, and develop family breeding to improve the economic income; and (iii) from the technical training to improve the economic income.

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Type of Impact APs Entitlements Compensation Policy and Rates Impact Scope (i) Cash compensation. (a) house compmesation: Main house: brick and concrete structure is at 2,900 yuan/m2, colored steel brick and concrete structure at 2,850 yuan/m2, colored steel structure at 2,850 yuan/m2, brick structure at 2,850 yuan/m2, earth and wood structure at 2,850 yuan/m2; Wing room: brick and concrete structure at 1,500 yuan/m2, brick and wood at 1,300 yuan/m2, earth and wood at 1,250 yuan/m2; Affiliared house: brick and concrete at 1,000 yuan/m2, colored steel at 750 yuan/m2, brick and wood at 800 yuan/m2, earth at 750 yuan/m2, earth and 60,106.29 2 (i) to assess the price wood structure with brick outside is 800 m ，including 2 to obtain housing at yuan/m ; Sheds: colored steel at 350 brick-concret 2 replacement value yuan/m , brick and concrete and colored e of 2 compensation; (ii) steel at 350 yuan/m , brick and wood at 400 20,973.34 2 2 2 voluntarily choose yuan/m , earth and wood at 350 yuan/m , m ，colored 2 resettlement wood structure at 250 yuan/m ; Simple steel and 2 methods, including sheds: colored steel at 200 yuan/m , brick at brick-concret 2 monetary 200 yuan/m ; Pens: brick and concrete at e of 2,823.02 2 2 187 HHs with compensation, 1,200 yuan/m , colored steel at 1,150 m ; colored 2 2 660 people in property right yuan/m , brick at 1,150 yuan/m , earth and steel of 2 House 2; 6 villages, exchange, allocation wood at 1,100 yuan/m . (b) Temporary 6,519.16 m demolition including of land on their own transitional allowance: 200 brick-wood of of Mayihai, construction, buying yuan/month/person, moving subsidy: 1,000 14,125.92 residential 2 Wuxing, Bali, cottage; (iii) for APs yuan/ household. (c) State-owned m ， houses Tasiken, who like to live in flat residential land and homestead earth-wood 2 Sazi, and house, they can build compensation: Class I land: 320 yuan/m , of 2 2 Mayihai new houses by Class II land: 260 yuan/m , Class III land: 11,791.46m 2 2 themselves after 190 yuan/m , Class IV land: 140 yuan/m . earth-wood gettting the allocation (ii) Property right exchanges: the compensation and brick land; (iv) to get price for demolished houses will be outsourcing moving subsidies, determined based on house appraisal by a structure of 2 temporary transition real estate appraisal and survey company 383.91m , costs, relocation on-site, and plus moving subsidy, temporary wood incentives. transition allowance, and land compensation structure of 2 fees, etc. The compensation prices for 3,489.48 m demolished houses will be compared with the resettlement house prices. If the compensation prices are higher than the resettlement house prices, the IA will pay the difference to APs in cash. Otherwise, APs will pay the difference to IA for the resettlement houses. APs can select different floors of resettlement houses (apartment) and different types of houses. The floor prices are different: ground floor: 2,600 yuan/ m2, second floor: 2,860 yuan/m2, third floor: 3,120 yuan/m2, fourth floor: 2,730 yuan/m2, fifth floor: 2,470 yuan/m2, and sixth floor: 1,820 yuan/m2. 16 ,436.11 m2， (i ) Receive Compensation standard: (a) brick and concrete is 10 instititions, compensation for at 1,600 yuan/m2, colored steel at 1,450 yuan/m2, House 2 including 6 out Enterprises demolished houses at brick and wood at 1,450 yuan/m , earth and wood Demolition 2 of 10 to be property replacement value at 1,300 yuan/m ; (b) moving subsidy at 2,000 of Public demolished owners after the housing yuan/enterprice; (c) land compensation fee: institution 2 completely, appraisal; (ii) receive commercial land (Class IV) 180 yuan/m , and 4 to be land compensation industrial land (Class IV) 125 yuan/m2, residential

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Type of Impact APs Entitlements Compensation Policy and Rates Impact Scope demolished and moving subsidies; land and homestead (Class IV) 140 yuan/m2 partly; 122 (iii) voluntarily chose workers will be resettlement types, affected, including (a) cash including 22 compensation, (b) ethnic workers construct new houses by themselves after receive monetory compensation, (c) construct new houses by themselves in a industrial zone according to unified planning; (iv) resettlement first and then house demolition.

(i ) Receive compensation for demolished houses at replacement value after the housing appraisal; (ii) receive land compensation, Compensation standard: brick and concrete 2 2 temporary transition structure is at 2,000 yuan/m , temporary Affected 276.42 m ，5 allowance and moving transition subsidy at 200 yuan/HH/month, moving commercial shops with 5 Shop owners subsidies; (iii) subsidy at 1,000 yuan/home. Land compensation shops people, voluntarily chose fee: residential land and homestead (Class IV) at resettlement types, 140 yuan/m2 including (a) cash compensation, (b) property right exchange for resettlement commercial houses Besides the rights above, vulnerable people (i) will have priority in choose of floor, apartment pattern and location of resettlement houses; (ii) will be provided unskilled job priority during project 1 HHs construction; (iii) will affected by Vulnerable 2 HHs with 3 be in priority to get the LA, 1 HHs Same as above Groups people training on farming affected by and non-agricultural HD production provided by agricultural sector and the labor and social security bureau; (iv) will benefit from a special fund in 7,000 yuan and be supported; (v) will receive a resettlement hosue in

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Type of Impact APs Entitlements Compensation Policy and Rates Impact Scope 50m 2 if they chose property right exchange in case of their demolished house is the only residential house and the construction area is smaller than 50 m2 (family of three people or less permanent residence) or in the number of family permanent residence, 13 m2 placement for each person; (vi) will be resettled in priority by municipal government if they are from low-income households and the demolished houses are their only residential houses in case they chose property right echanges. Besides the rights above, ethnic minority people (i) will have priority in choose of floor, apartment pattern and location of 18 HHs with resettlement houses; 64 people (ii) can get the same affected by area of arable land with HD only; 40 equal quality for Ethnic HHs with 122 affected minority 66 HHs, with Minority people people in Yuanyichang; Same as above 220 people Group affected by LA (iii) will be provided only; 8 HH unskilled job priority and 34 people during project affected both construction; (iv) will be by HD and LA. in priority to get the training on farming and non-agricultural production provided by agricultural sector and the labor and social security bureau. Besides the rights in first column, the affected female people (i) will have priority access to project Women 627 people 627 people non-technical jobs Same as above employment; (ii) will enjoy the labor and training priorities; (iii) ensure that the resettlement process

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Type of Impact APs Entitlements Compensation Policy and Rates Impact Scope access to relevant information and be able to participate in consultation related to LAR issues. Compensa Items Amount tion Ow standard Well Set 36 1200 Indiv Sewage pit Unit 9 800 Indiv Crusty Indiv pancakes Unit 8 500 pit Vegetable Indiv set 10 300 cellar <5cm 40 18 Indiv 5-15cm 77 35 Indiv Elm 15 -30cm 59 100 Indiv

(i) Ground attachment >30cm 3 120 Indiv (power poles and fruit 5cm 10600 20 Indiv trees) compensation will be paid to the owner; 5-15cm 309 40 Indiv Ground and (ii) the Poplar Public Attachments Property compensation will be 15 -30cm 720 60 Indiv Facilities and and Public owners determined according to trees 30cm 17 80 Indiv Facilities the replacement cost and restoration shall be Willow 5-15cm 4 40 Indiv in accordance with the 5cm 378 40 Indiv original scale and standards. 5-15cm 274 60 Indiv Apple tree 15 -30cm 629 80 Indiv 30cm 571 100 Indiv Jujube tree 5-15cm 20 60 Indiv Sand jujube 15 -20cm 6 18 Indiv Walnut tree 5-15cm 11 100 Indiv 5-10cm 42 40 Indiv Pear 15 -20cm 10 80 Indiv Peach trees 5-15cm 19 80 Indiv 5-10cm 17 40 Indiv Plum tree 15 -30cm 39 60 Indiv 5-10cm 7 20 Indiv Apricot 15 -20cm 9 40 Indiv 30cm 8 80 Indiv

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Type of Impact APs Entitlements Compensation Policy and Rates Impact Scope 5-15cm 86 40 Indiv Ash tree 30cm 2 60 Indiv Vines 5-15cm 229 80 Indiv 5-10cm 6 20 Indiv Ash 15 -20cm 1 40 Indiv 30cm 4 80 Indiv Cherry tree 5-10cm 5 40 Indiv Chestnut 5-10cm 23 40 Indiv

All special facilities affected by the project are acquired reconstruction and rehabilitation. The PMO will (i) pay the compensation to owners and owners are responsible for reconstruction of the Special Construction special facilities; or (ii)

Facilities institution include the cost for resoration of the facilities in the project construction budget and civil contractors are responsible ofr the restoration. The owners can select one of ways after full consultation with the PMO.

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V. Appeal Procedure If you as an AP have any complains and problems during the LAR implementation, please follow procedures below and contact relevant persons listed below: Stage 1: If any AP is dissatisfied with any land acquisition and resettlement of any other safeguards related problems, he/she may file an oral or written appeal with the community committee/sub-district office orally or in writing. In case of an oral appeal, the community committee/sub-district office shall handle such appeal and keep written records. Such appeal should be solved within 2 weeks. Stage 2: If the AP is dissatisfied with the disposition of Stage 1, he/she may file an appeal with Tacheng City Land and Resources Bureau or the LA and HD management office (depending upon the issue) after receiving such disposition, which shall make a disposition within 2 weeks. Stage 3: If the AP is still dissatisfied with the disposition of Stage 2, he/she may file an appeal with Tacheng City PMO receiving such disposition, which shall make a disposition within 2 weeks. Stage 4: If the AP is still dissatisfied with the disposition of Stage 3, he/she may apply for administrative reconsideration with Tacheng City Government after receiving such disposition within 3 months. Alternatively, he/she may file an action in a civil court in accordance with the Civil Procedure Law of the PRC at any time irrespective of the use and progress of the GRM process. At each stage, when the responsible agencies receive the appeal, it will be also copied to the PMO for discussion, so that the grievance can be redressed at lower levels. All grievances (and their resolution) at each stage will be recorded and kept. The PMO will report the grievances and their resolution) to ADB in semiannual monitoring reports. Alternatively, the aggrieved person(s) may submit a complaint to the ADB’s Project Team to try to resolve the problem. If good faith efforts are still unsuccessful, they may submit their complaint to ADB's Accountability Mechanism (2012).5 The first step requires good faith efforts to resolve the problem with the ADB Project Team. Besides, reporting behaviors which are against ADB's policies or procedures also welcomed. Website is:www.adb.org/ Accountability-Mechanism/. APs may file an appeal on any aspect of resettlement, including compensation rates, etc. The above means of appeal, and the names, locations, persons responsible and telephone numbers of the appeal accepting agencies will be communicated to the APs at a meeting, through an announcement or the RIB, so that the APs know their right of appeal. Mass media will be used to strengthen publicity and reportage, and comments and suggestions on resettlement from all parties concerned will be compiled into messages for disposition by the resettlement organization at all levels. All agencies will accept grievances and appeals from the APs for free, and costs so reasonably incurred will be disbursed from the contingency costs. During the whole construction period of the Project, these appeal procedures will remain effective to ensure that the APs can use them to address relevant issues.

5 http://www.adb.org/Accountability-Mechanism/default.asp.

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Figure 1: Grievance Redress Flowchart

In order that the APs can feed back their grievances timely, contacts have been appointed for different appeal accepting agencies and their contact information disclosed. Responsible person for Tasiken Village committee: Li Xun Tel: 13809973330 Responsible person for Mayihai Village committee:Wu Huashan Tel: 13565788886 Responsible person for Sazi Village committee: Liu Huagong Tel: 18799707646 Responsible person for Shangtasiken Village committee: Lei Wenqiang Tel: 13150226567 Responsible person for Wuli Village committee: Bo Xiaobin Tel: 18809011116 Responsible person for Bali Village committee: Dou Jinliang Tel: 18999497065 Responsible person for Yuanyichang Village committee: Liu Gangqiang Tel: 13319755299Responsible person for Ergong Town Government: Ma Jian Tel: 13579796669 Responsible person for Liaota New District L&R BureauCheng Hongbin Tel: 09016666182 Responsible person for Tacheng City L&R Bureau: Zhang Shouyong Tel: 13579796658

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Responsible person for Emin County PMO: Zhang Jiancheng Tel: 09016280603 Responsible person for Tacheng City Construction Bureau: Hu Shenjun Tel: 09016226159 Responsible person for LA and compensation leading group: Sui Siliang Tel:09016666172 Head of the Tacheng City Letters and Visits Department: Wang Hua Tel: 09016231360 Head of the Tacheng City Disciplinary Inspection Department: Liu Jiangtao Tel: 18099018919 Head of the Tacheng City Legal Department: Xukelaiti Tel: 13319017447 External M&E agency: To be decided.

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Appendix 3 Terms of Reference for External Monitoring and Evaluation

1. Objective According to ADB policy requirements, Tacheng Prefecture PMO will hire a qualified, and experienced in ADB loaned project external resettlement monitoring agency. External monitoring and evaluation agencies regularly focus on the implementation of the resettlement activities and track the progress of resettlement, quality, financial monitoring and giving advice. tracking and monitoring the production ability and living standards of resettlement people, submit monitoring and evaluation reports to the Tacheng Prefecture PMO and Xinjiang PMO.

2. Content and methods of external monitoring

(1) Baseline survey External monitoring agency will conduct baseline survey on APs to obtain production and living standards (life, production and income levels) of APs. The progress and changes of APs’ production and living standards will be surveyed once every six months. Using follow-up survey of a representative sample (at least 20% households affected by LA and HD, respectively, and 100% vulnerable households), random interviews and field observations and other methods to take the necessary relevant information.

(2) Regular monitoring and evaluation

During the implementation of the resettlement program, external monitoring agency conducted twice a year on a regular basis of tracking and monitor of resettlement, through on-site observation, follow-up survey sample households and casual interviews of resettlement monitoring of the following activities:  Timely payment and amount of compensation  Training  Support measures for vulnerable groups and ethnic minority people  Restoration and reconstruction of infrastructure, ground attachements and special facilities  Restoration for production and resettlement people  Adequacy of compensation for lost properties  Compensation for lost working days  Timetables of the above activities (applicable at any time)  Resettlement network organization  compensation fee for collective land acquisition and resettlement earningsand  Job opportunities generated by the project.

(3) Public consultation The external M&E agency will attend public consultation meetings held during resettlement implementation to evaluate the effectiveness of public participation. (4) Grievance redress The external M&E agency will visit the affected village groups periodically, and inquire with the Tacheng City PMO, resettlement offices and neighborhood committees that accept grievances to

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assess how well grievances have been handled. It will also meet complainants and propose corrective measures and advice for existing issues so as to make the resettlement process more effectively. In addition, the external monitor will verify the data and findings of the internal monitoring reports.

3. External monitoring agency The external resettlement monitoring agency will be recruited by Tacheng Prefecture PMO. The agency should have experience as an external resettlement monitoring and evaluation for ADB projects, and understand both ADB Safeguard Policy Statement (2009) and national laws, regulations and policies related to involuntary resettlement.

4. Organization of resettlement monitoring and evaluation Tacheng Prefecture PMO is responsible for management of input, field work and report review of the external monitoring agency. The IA is responsible for support the field work of the external monitoring agency and provide necessary information to the agency. The external monitoring agency shall set up a "Project Resettlement Working Group on Monitoring and Assessment", whose main task is to monitor and assessment and resettlement projects, preparation of monitoring and evaluation framework, monitor the target, check the site investigation, monitoring and laboratory analysis; prepared resettlement monitoring and evaluation reports in accordance with ADB's policy.

5. Monitoring Indicators Baseline survey and follow-up monitoring and post-project evaluation will include the following points, and is not limited to targeted households socio-economic indicators:

i. Educated degree of adults in different sexes

ii. Occupational area of adults in different sexes

iii. Land and housing areas of different types

iv. Sources of income

v. Different types of expenses

vi. The main asset ownership

vii. Cropping patterns (different types of area)

6. Reporting of external resettlement monitoring and evaluation External monitoring and evaluation agency should submit external monitoring reports to the ADB and the Xinjiang Autonomous Region PMO as following schedule.

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Reporting Schedule of External Resettlement M&E No. Resettlement report Date

1 Baseline survey report March 2015

2 M&E Report (No.1) March 2015

3 M&E Report (No.2) September 2015

4 M&E Report (No.3) March 2016

5 M&E Report (No.4) September 2016

6 M&E Report (No.5) March 2017

7 M&E Report (No.6) September 2017

8 M&E Report (No.7) March 2018

9 M&E Report (No.8) September 2018

10 M&E Report (No.9) March 2019

11 M&E Report (No.10) December 2019

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Appendix 4: Minutes of Public Participation and Interview

1. Institution Forum Minutes

Site Meeting Room of Tacheng Time: January 14, 2014 AM DRC

Participant-units: Tacheng City DRC, PMO, CB, L&RB, CAB, ERC, FB, WCB, WF, etc. The main issues and content: 1. The director of Tacheng DRC described the contents of the project and the purpose of this discussion. The Project includes six parts: (a) Road construction component; (b) Water supply component; (c) Drainage component; (d) District heating component; (e) Kalanggur river rehabilitation component; and (f) MSW component. Especially the affected area of the project was introduced. 2. The director of Tacheng L&RB introduced the area and land type of LA, and the compensation standard for residential house demolition. The type of LA will include cultivated land, orchards land, vegetable plot, hops land, forest, state-owned construction, unused and residential lands, collective homestead and construction lands, etc. The acquired state-owned cultivated land will be compensated according to the Reply on the Uniform AAOV Rates for Land Acquisition of XUAR (XG [2010] No.323), and the Notice on Doing a Better Job in Reporting Construction Land for Approval (XLR [2010] No.140). 3. The director of PMO described the resettlement program for displaced households. For the households affected by HD may choose cash compensation or property right exchange or purchase commercial housing. They may choose a resettlement options based on affordability and individualized needs. 4. The director of WF gave a short report on the last year’s work, and introduced the work to be carried out in this year. Meanwhile, the director said that it should be allowed to make unemployed women participate in the construction of project, or after the construction, make them engage in sanitation worker. Thus, can increase the employment rate of women, and help them obtain some remuneration to increase family income. 5. The Director of ERC also expressed that ethnic minorities should be given equal attention. On the one hand, allow them participate in the construction of project, on the other hand, it is necessary to explain the minorities’ food habits, lifestyle, clothing and customs, even taboos to workers of construction team, in case these workers conflict with the local ethnic minorities.

2. State-owned Farm Villagers Seminars Site: Meeting room of Yuanyi village, Time: January 17, 2014 10: 30 Tacheng city Participants: Director. Sui (Liaota New District Demolition Office), the secretary of Yuanyi village, Zhou Shengbin (RP expert), 20 representatives of Yuanyi village, concludes 6 ethnic minorities (5 males, 1 females) The main issues and contents: 1. Director. Sui described the basic information of ADB, contents of the project, the purpose of this discussion, and

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others related to direct interests of villagers, such as area of LA and HD, and resettlement program for APs. 2. Distributed the Public Oppinion and Psychological Questionnaires to every representative to let them fill out, and talked with experts about what they are interested and confused. 3. Villager representatives thought the construction of road is very necessary. The current road conditions have been unable to meet the needs of development of Yuanyi village. Since financial constraints, the village cannot repair roads. The new contruction road can make convenient for the villagers’ daily commuting, ease traffic pressure, also can effectively improve the investment environment and increase revenue. 4. However, villagers expressed that it should be essential to obtain financial compensation or in-kind compensation, cannot let villagers suffer losses. For villagers affected by LA, it would be best to give the equal land, and thus will help affected villages restore their life conditions as soon as possible. For villagers affected by house demolition, it should be compensated for reasonably through appraisal, in order to obtain fair and reasonable compensation; what’s more, the affected villagers should be allowed to compensate first and then move; moreover, the construction of resettlement housing should be diversified, for example, some famlies without the old may choose high-rise buildings as resettlement housing; while the other families with the old would prefer to live in multi-storey buildings, because they should take into consideration the issues whether it will be convenient for the old. 5. Some of villagers also said that local villagers can be given priority to participate in the construction of the project, and accordingly get the reward. 6. Also hope that villagers can get some opportunities for technical training, such as skills of cash crops.

3. Farm Villagers Seminars Time: January 15, 2014 PM Site: Meeting room of Tasiken Village, Tacheng city Participants: the head of Tasiken Village, RP preparation agency, 12 representatives of Tasiken Village, concludes 5 ethnic minorities, 7 males and 5 females. The main issues and content: 1. The RP expert described the basic information of ADB, contents of the project, the purpose of this discussion, and others related to the direct interests of villagers, such as area of LA and HD, and resettlement program for APs. 2. The head of Tasiken village said Tasiken village belongs to rural-urban fringe area, most of villagers rely on farming to make a living. Due to the soil environment is suitable for the cultivation of corn, villages mainly plant corn. The annual output can attain 1100 kilogram, and can obtain 1.1 Yuan per kilogram. However, it is a pity that there is no corn-processed factory, otherwise it would profit more. Moreover, some of villagers plant mushroom, and the sales-market is pretty. 3. Villager representatives thought the construction of roads is very necessary. The current road conditions has been unable to meet the needs of development of Tasiken village. And the new contruction road can make convenient for the villagers’ daily commuting, ease traffic pressure, also can effectively improve the investment environment and increase revenue. Meanwhile, they hope that announcement on the resettlement program for displaced households and LA and HD should be conducted as early as possible. 4. Some villagers affected by LA expressed that the standard of LA must be clearly, not be lower than the

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previous compensation standard. And land compensation should have a deadline, and all payment must be paid in cash and within the deadline. While the villagers affected by HD pay more attention to the construction of resettlement housing, hope resettlement housing can be completed as soon as possible , so that they can live in the new house as soon as possible. 5. Some ethnic minorities thought it is necessary to set up bilingual road signs (Chinese and Kazak or Uighur), in order to help those who do not know Chinese, especially the elderly, can commute more convenient, also guarantee their commuting safety.

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4. Interview minutes with vulnerable groups Time: January 14, 2014 AM site:village’s house in Shangtasiken Village Participants: Mr. Zhang (Tacheng City NDRC) , Lei Wenqiang (the head of Shangtasiken Village), the director of WF of Shangtasiken Village, preparation of resettlement unit staff Interviewee: Li Shuqin (a farmer of Shangtasiken Village，vulnerable groups)

Basic conditions: 1. Li Shuqin, female, 65 years old , Han nationality, a farmer of Shangtasiken village, with disabilities, and receives guaranteeing payment of 123 yuan per month, which is paid timely. It has four people in her family, her husband had passed away. And she has a son and a daughter. The daughter works outside and return home in a short time during holidays, and she obtain about 10,000 yuan per year. The son engages in farming, he contracts about 32 mu collective land, the project will acquire about 1.07 mu, and farming annual income is about 10,000 yuan. The daughter-in-law is housewife to take care the disabled mother-in-law and her child with 3 years old. It told that the total family income is about 20,000 yuan last year.

The attitude towards the project:

2. New road construction is a very good project, this family are very supportive for this project.

3. Just follow the national policy of compensation, we have no problem, but can not let people get suffered.

4. Support to construction of road, hoping to start construction as soon as possible.

5. The existing road condition is poor, hoping it can be improved after construction.

6. Hoping to get compensation timely properly and timely.

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5. Interview minutes with household affected by both LA and HD Time: January 14, 2014 PM site:village’s house in Shangtasiken Village Participants: Mr. Zhang (Tacheng City NDRC) , Lei Wenqiang (the head of Shangtasiken Village), the director of WF of Shangtasiken Village, preparation of resettlement unit staff Interviewee: Hou Shuwen (a farmer of Shangtasiken Village，affected by both LA and HD)

Basic conditions:

1. Li Shuqin, male, 51 years old , Han nationality, a farmer of Shangtasiken village. He engages in farming

and contracts about 18 mu collective land, the project will acquire about 0.6 mu. There are four people

in his family. His wife, Mi Zhenfeng, 49 years old, helps her husband till the land, also feeds pigs (only

supply for themselves). The couple has two children, a son and a daughter. The son work outside, and

the daughter is studying in a university at Urumqi. The family income is well, and about 40,000 yuan per

year, the main source of income is from farming.

2. The family also affected by HD, the construction of the project will remove 392.06 m2 in total. And its

main houses with a total area of 106.14 m2, wing rooms of 96.89 m2 and affiliated room of 189.03 m2

will be demolished. The attitude towards the project:

1. Hou Shuwen said the land acquisition is almost no impact on them, the project also will remove their

house, but they will get resettlement housing in return. What they most concerned is about the

compensation that need to be paid in time and reasonable.

2. Just follow the national policy of compensation, we have no problem, but can not let people get suffered.

3. This family are very supportive for this project, and hope the construction could be finished soonly, thus

they can enjoy convenience of the new road.

4. He also hopes that the compensation could be paid in cash and as soon as possible. Because he wants

to open a small shop via these compensation, in order to make his wife handle the business and do not

follow him to work hard in the fields.

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Appendix 5: Due Diligence Report on Land Acquisition and Resettlement of A Combined Heat and Power Plant

1 Overview of the Project

1. In accordance with "Tachneg General Planning (2012-2030)", the population of Tacheng City would reach 270,0006 by the end of 2015. With the urban development of Tacheng City and Liaota New Zone, new buildings have been constructing continually, which will require more heating supply service. However, current heating capability of Tacheng City has reached its saturation levels. New heating source is required to meet the heating service for new buildings. In May 2012, Tacheng Design Institute, entrusted by Tacheng City Development and Reform Commission (TDRC), compiled the feasibility study report for a new combined heat and power (CHP) plant, which will be funded by China Power Investment Corporation with a total investment of 3 billion yuan and 2X350MW capacity. The plant construction is planned to start in May 2015 and end in 2019. 2. In 2014, Tacheng City Government proposed to use a loan from ADB to build 37,210 m heat-supply pipeline network and 21 heat exchange stations as one of subprojects of Tacheng City Infrastructures and Municipal Services Component of Xinjiang Tacheng Border Cities and Counties Development Project. Due to the heat-supply pipeline network construction is associated with the heating source of the CHP plant, it is necessary to conduct due diligence on LA and HD of the CHP plant. 3. In accordance with “Tacheng Combined Heat and Power Plant Plan” (2012-2020), Tacheng City Government acquired 700 mu state-owned experimental field from Agricultural Research Institute (ARI) of Tacheng Prefecture on 12 September 2012, including 145 mu to be used for construction of Hengxing Cement Plant, and 555 mu for construction of the CHP Plant. According to the ADB’s requirements, Tacheng City Development and Reform Commission, the Tacheng City PMO, and a RP preparation agency conducted a full survey and compiled this due diligence report (DDR) on LAR impact, compensation, payment, etc.

2 Due Diligence Report Preparation

4. The report is prepared by a preparation team composed of the TDRC, the Tcheng City PMO, and a RP preparation agency. From 28 October 2014 to 3 November 2014, the team visited the TDRC, Land and Resource Bureau (TLRB), Agriculture Research Institute (ARI) and other relevant departments to collect the land acquisition, compensation and resettlement agreement and other relevant materials, and interviewed the principal of the ARI and related people. The main contents of this report include: to understand the actual situation of the LA, the process of the LA and compensation payment, to know public participation and complaint cases, to assess the compensation payment for the LA, and ultimately to draw relevant conclusions.

6 By the end of 2012, Tachneng City has population of 237,000. 143

3 Project Impact

5. Tacheng City Government and the ARI signed a Land Replacement Agreement on 12 September 2012. The government acquired 700 mu state-owned experimental field from the ARI, including 145 mu to be used for construction of Hengxing Cement Plant, and 555 mu for construction of the CHP Plant. 6. The ARI, a state-owned public institution, is affiliated to Tacheng Prefecture Agriculture Bureau, established in 1959, mainly engaged in various crops and regions new species introduction and identification, region experiment, production test, pest control research, efficient and synthesis cultivation techniques introduction, study and promotion. The institute has four divisions, scientific research department, gardening department, production promotion department and office, total with 54 staffs and 1,000 mu comprehensive agriculture experimental field which is a coalition of research, production, promotion and training. 7. In the acquired 700 mu land, 85 mu is for hops experimental field, 20 mu for sour plum planting, and 595 mu for wheat breading. There were no residential houses and buildings on the acquired land, so no house demolition were involved in the LA. The ARI can continue to use remaining 300 mu land as a experimental field.

4 Compensation and Payment

8. From March to July 2012, TDRC consulted with ARI several times and finally reached an agreement and singed on 12 September 2013. All the LA work was completed by 15 October 2013.

9. To ensure crops research, experiment, demonstration and promotion of ARI, Tacheng City Government provided 1,000 mu state-owned land in south of Baketu Road to ARI as compensation for acquired 700 mu land. 10. The replacement land (1,000 mu) is located 11 kilometers away from Tacheng City, lying in the south of Baketu Road, convenient transportation. Actually the 1,000mu land was planned to use for a forage base of a dairy farm which was designed to build in 2005 by Tacheng City. However, due to shortage of construction fund, the dairy farm construction failed. In order to the land not being abandoned, the Tacheng City Government appointed Bozidake Farm to manage the land, and the farm can utilize the land for free. However, Tacheng City Government have right to withdraw the land when it is necessary. According to the survey, no complain and dispute have when Tacheng City Government withdraw the land. 11. The 1,000 mu land is owned by Tacheng City Government, and ARI is a state crops experiment station, the replacement land for ARI is allocated free by Tacheng City Government, which also is in charge of corresponding land use certificate handling. 12. In order not to affect regular experiment conducted by Agricultural Research Institute, Tacheng City Government put off the LA until to the experiment finished, so there was no such issue about compensation for young crops. For ground attachments, it was compensated according to the state and Xinjiang region policies and compensation rate. For the 85 mu state-owned hops experimental field and ground attachment, it was compensated in cash of RMB 460,000 Yuan in total; for the 20 mu sour plum planting

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land, it was compensated based on the tree type and quantity, and 2000 sour plum trees, calculated by 20 Yuan per tree, paid a compensation of RMB 40,000 Yuan in total. 13. Given ARI will face the issue of infrastructure construction on the replacement land, like dropper pipeline, traffic, office, etc. Tacheng City Government provided a fund of RMB 8,000,000 Yuan after consultation with ARI. 14. It is found that the replacement land agreement stipulates the compensation and payment time: after signing the agreement, Tacheng City Government pay the fund of RMB 3,000,000 Yuan for infrastructure construction to ARI and RMB 500,000 Yuan for trees compensation; by 1 March 2013, the fund of RMB 3,000,000 Yuan should be paid and by 1 May 2013, the rest of RMB 2,000,000 Yuan of the fund shall be paid completely. During the survey, it is found that from September 2012 to May 2013, Tacheng City Government paid the compensation for ground attachment and the fund for infrastructure construction to ARI in a total of RMB 8,500,000 Yuan. ARI have conducted relevant test activities in the replacement land from 2013. 15. According to the survey, Shi Shuiqing, the director of ARI, told the investigating team that the fund for the infrastructure construction on the replacement land was available, and it was proposed to start the matching facilities construction, like experimental and working places, road, etc. in July 2015, and will finish by the end 2016. For the replacement land is 11km away from downtown, ARI proposed to build a cafeteria to provide a lunch for staffs, and the cafeteria management consists of partial personal capital and partial funds from ARI. For the staffs commuting, ARI provides a bus or transport subsidies.

Figure 1 Acquired land of Agricultural Research Institute (for CHP construction)

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Figure 2: Replacement land (winter wheat experiment and corn planting have been conducted by Agricultural Research Institute)

5 Public Participation

16. In the land acquisition process, TDRC and related agencies organized full consultation with ARI on project-related impacts to fully understand the considerations of affected people’s views and suggestions, and take a variety of ways for public participation and negotiation:

(1) Public participation and consultation meetings 17. Before the land acquisition, holding forum, focusing on the basic situation of urban development planning ideas and proposed construction projects, as well as the scope of planned land acquisition, listen to the views and suggestions of ARI, Agriculture Bureau, and concerned departments, as well as made records and given consideration and concern in the implementation.

(2) Public meeting for LA compensation and resettle

18. Prior to the implementation of land acquisition program, to explain to ARI the relevant policies and regulations, compensation standards, payment time, replacement land location, etc. combined with opinions and suggestion of ARI and Agriculture Bureau; to implement the project the in strict accordance with national and Xinjiang Region policies; to call on concerned department to discuss the LA of ARI and resettlement.

(3) LA and compensation 19. During detailed investigations and measurements on LA, compensation standard setting, land acquisition agreements negotiation, and compensation payment, the principal of ARI and Agriculture Bureau landless have participated in the work process, to ensure that land acquisition just, fair, reasonable and transparent.

(4) Release announcement about Land acquisition 20. The main content of the announcement include: project overview, scope of land acquisition, compensation standards, resettlement policies, schedules and so on. From 20 October 2014 to 3 November 2014, the investigation team visited TTDRC, LRB,

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the Tacheng PMO, ARI and relevant departments, and conducted field visits, the relevant personnel interviews and questionnaires, learned Land acquisition implementation policy, project impact, compensation standard, payments, etc., and held meetings ARI to understand public participation, asked whether their livelihoods affected, and inquired for the views and opinions on the LA.

Figure 3: Field survey on replacement land of Agricultural Research Institute

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Interviews recorded I TimeOctober 28, 2014 LocationTacheng City Development and Reform Commission-the key PMO

Participants: Wu Guangjin (the chief of Tacheng City Development and Reform Commission key PMO), and DDR preparation team staff

Interviewee: Wu Guangjin Q: Please introduce the basic situation of combining power and heat plant project. A: Combining power and heat plant project is put forward based on the "Tachneg General Planning (2012-2030)", and its population will achieve more than 270,000 by the end of the twelfth five year plan (2015). With the urban development in the whole Xinjiang Region and Liaota New Zone continuous construction, the amount of new buildings grows gradually, which is accompanied by more heating equipment, while the heating capability of thermal companies’ boiler plant reach their saturation levels, under no capability of supporting for new buildings, so new power plant construction and auxiliary facilities are extremely urgent. Q: Time, location and area of combining power and heat plant project? A: since the project being approved In May 2012, Tacheng Design Institute, entrusted by Tacheng City Development and Reform Commission, compiled the feasibility study report for the project, which is funded by China Power Investment Corporation, with a total investment of 3 billion and 2 350MW combining heat and power plants construction, starting in May 2015 and ending in 2019, covering 555mu area of land. Q: What is the meaning of the combining power and heat plant construction?

A: After the project completed, protection capability of Tacheng end grid will balance the power in regions, having a positive practical meaning of optimizing the power structure, promoting Tacheng “three construction”, relieving the tension caused by heating and power support, improving housing condition and living quality as well as accelerating regional economic development. Q: does the project involve LA and HD? A: yes, the project involves LA, but no HD. The acquired 700 mu state-owned land from Agricultural Research Institute of Tacheng Region is experimental field, accompanied by Land Acquisition Compensation Agreement signed in 12, September 2012, 145 mu of which are used for Hengxing Cement Plant construction, the left 555 mu for Combined Heat and Power Plant construction, and all the compensation of RMB 8,500,00 has been paid in full in three times by the May 2013, based on the regulated standard, 500,000 for trees compensation and

8,000,000 for matching funds of infrastructure construction. For the occupation land, Tacheng City Government displaced the 1000 state-owned land in south of Baketu Road in form of replacement to Agricultural Research Institute for experiment and research. The replacement land is located 11 kilometers away from Tacheng City, lying in the south of Baketu Road, convenient transportation; For the land is owned by Tacheng City Government, and Agricultural Research Institute, being a state crops experiment station, will conduct a lot of research an test for state, North-west Region, Autonomy Region and Tacheng City Region, especially when applying for a research project and judging research results, handling.148 it is clearly regulated that state-o-wned land use certificate is a must. Given this situation, the replacement land for Agricultural Research Institute is allocated free by Tacheng City Government, which also is in charge of corresponding land use

A: Actually the 1000mu land was planned to for forage base of dairy farm which was designed to build in 2005 by Tacheng City, while for shortage of fund, the dairy farm construction failed and the land was exploited. In order to the land not being abandoned, the Tacheng City Government appoints Bozidake farm to manage on its behalf, and the farm can utilize the land for free. However, Tacheng City Government will reclaim the land when it is necessary, and there is no dispute about the replacement land after investigation.

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Interviews recorded II TimeNovember 29, 2014 LocationThe Agricultural Research Institute of Tacheng Region

Participants: Wu Guangjin (the chief of Tacheng City Development and Reform Commission key PMO), Shi Shuiqing( the director of Agricultural Research Institute) and DDR preparation team staff Interviewee: Shi Shuiqing( the director of Agricultural Research Institute) At first Wu Guangjin introduced the purpose and conditions need to understand of this interview to Shi Shuiqing. Q: Please introduce the basic situation of the Agricultural Research Institute? A: Agricultural Research Institute, a full allocation public institution, is affiliated to Tacheng Region Agriculture Bureau, established in 1959, mainly engaged in various crops and regions new species introduction and identification, region experiment, production test, pest control research, efficient and synthesis cultivation techniques introduction, study and promotion. Agricultural Research Institute has four divisions, scientific research department, gardening department, production promotion department and office, total with 54 workers and 1000 mu comprehensive agriculture experimental field which is a coalition of research, production, promotion and training. Q: Please introduce the basic situation of the acquired land from the Agricultural Research Institute for combining power and heat plant construction? A: in September 2012, Tacheng City Government acquired 700mu experimental field from our institute, in which 85mu is hops experimental field, 20mu is sour plum planting, and 595mu is wheat breading. For the acquired

700mu land, 145 mu will be used for Hengxing Cement Plant construction, the left 555 mu for Combined Heat and Power Plant construction. While there is 1000mu land in total in Agricultural Research Institute, and only 700mu is acquired and 300mu is left where tiny experiment is still being conducted, without impacts on office and other facilities. Q: please introduce the process of LA, resettlement and compensation payment? A: Tacheng City LRB posted the land acquisition announcement in July 2012, and after several times consultation final agreement reached. On 12 September 2013, Tacheng City Government signed the Land Swap Agreement with Agricultural Research Institute; for the acquired 700mu land, Tacheng City LRB consulted our institute many times before acquisition and take a measures of land replacement to avoid impacts on crops research, experiment, demonstration and promotion; Tacheng City Government displaced the 1000 state-owned land in south of Baketu Road to our Institute for experiment and research; For our Institute conducting the winter wheat variety test with Xinjiang Academy of Agricultural Science, we required Tacheng City Development and Reform Commission to provide 200 mu land in advance for the winter wheat test. The replacement land is located 11 kilometers away from Tacheng City, lying in the south of Baketu Road, convenient transportation; For the land is owned by Tacheng City Government, and Agricultural Research Institute, being a state crops experiment station, , will conduct a lot of research and test for state, North-west Region, Autonomy Region and Tacheng City Region,150 especially when applying for a research project and judging research results, it is clearly regulated that state-owned land use certificate is a must. Given this

to affect regular experiments, Tacheng City Government put off the LA until to the experiment finished, so there was no such issue about compensation for young crops;for the ground attachment, it was compensated according to the state and autonomy region policies and compensation rate;for the 85mu state-owned hops experimental field and ground attachment, after consultation, it was compensated in cash of RMB460,000 once; for the 20mu sour plum planting land, it was compensated based on the tree type and quantity, and 2000 sour plum trees, calculated by 20 yuan per tree, got a compensation of 40,000. Given our h Institute will face the issue of infrastructure construction on replacement land, like dropper, traffic, office, etc. Tacheng City Government provided a matching fund of 8,000,000 after consultation.

Q: How about the compensation payment? A: the compensation is paid according to the agreement. after signing the agreement, TCG shall pay the matching fund of 3,000,000 yuan for infrastructure construction to Agricultural Research Institute and 500,000 yuan for trees compensation; by March 1, 2013, the matching fund of 3,000,000 should be paid and by May 1 ,2013, the rest of 2,000,000 matching funds shall be paid; up to now, all the compensation has been paid in full. According to the survey, Shi Shuiqing, the director of Agricultural Research Institute, told the investigating team that the matching found has been in available. In order to our institue’s research and development, Tacheng City acquired our 700mu land at cost of displacing 1000mu to us, which satisfied us. Q: What are your opinions on Land acquisition?

A: No objection. I’m satisfied with resettlement policies of Tacheng City Government which takes our opinions into consideration during consultation. Up to now, compensation and matching found for infrastructure construction on replacement land is available, and the replacement land has been delivered to us, and relevant land procedures are in processing. It was proposed to start the matching facilities construction, like experimental and working places, road, etc. in July 2015, and finish by the end 2016. For the replacement land is 11km away from downtown, Agricultural Research Institute proposed to build a cafeteria to provide a lunch for workers, and the cafeteria management consists of partial personal capital and partial funds from organization. For the workers commuting, Agricultural Research Institute provides a bus or transport subsidies.

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21. The findings show that: in the land acquisition process, Tacheng City Government and related agencies conducted extensive public participation to fully understand the opinions and recommendations of ARI, and all related matters are based on full public participation to implement; taking ARI’s opinions on research and development into consideration, the acquired land will get a replacement. All land compensation fees were paid by the time stipulated in the agreement, and no remaining issues. The principal of ARI thought that land acquisition made no impact on them. The project only acquired 700 mu land, while Tacheng City Government get 700 mu at the cost of 1000 mu for the science development, which ARI satisfied. 22. In the LA, TDRC and related agencies conducted extensive public participation with ARI to fully understand the opinions and recommendations of affected people, and detailed public participation is shown in following tables.

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Public participation I TimeApril 2, 2012 LocationMeeting room in fifth floor of Tacheng City Development and Reform Commission

Participants: Jia Jingyang(the director of Tacheng City Development and Reform Commission), Zhang Jiancheng(the director of Tacheng City Development and Reform Commission key PMO), Shi Shuiqing(the director of Agricultural Research Institute), Zhang Shouyong(the director of Tacheng City Land and Resource Bureau), Wu Guangjin(the chief of Tacheng City Development and Reform Commission PMO), Gong Dongming(the secretary of Bozidake Farm), principals of Tacheng Region Agriculture Bureau and China Power Investment Corporation, and concerned workers.

Conference topics: Consult Meeting about proposed land acquisition for Combining Heat and Power Plant and Hengxing Cement Plant construction

Content: 1. Introduces the basic ideas of Combining Heat and Power Plant and Hengxing Cement Plant construction project as well as the situations of the Project; 2. Schedule the scope of Land acquisition and implementing time; 3. Seek Agricultural Research Institute’s and concerned agencies’ opinions and views.

Staffs express their views: Shi Shuiqing said that the project could promote regional economic development, and he was supportive of the project construction. Before LA, Agricultural Research Institute’s interests, using situation of research land and research work should be taken into consideration. Agricultural Research Institute, a full allocation public institution, is affiliated to Tacheng Region Agriculture Bureau, mainly engaged in various crops and regions new species introduction and identification, region experiment, production test, pest control research, efficient and synthesis cultivation techniques introduction, study and promotion. Agricultural Research Institute has four divisions, scientific research department, gardening department, production promotion department and office, total with 54 workers and 1000 mu comprehensive agriculture experimental field which is a coalition of research, production, promotion and training, serving for each county of Tacheng Region and different zone of Xinjiang. All the acquired land is experimental field, and I hope government start from the point of experiment and take the following experimental field use situation into consideration. Other concerned people are supportive of

Shi Shuiqing’s opinions that Agricultural Research Institute is short of experimental field due to project construction, and government should pay more attention to this aspect.

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Public participation II TimeApril 20 , 2012 locationMeeting room in fifth floor of Tacheng City Development and Reform Commission

Participants: Jia Jingyang(the director of Tacheng City Development and Reform Commission), Shi Shuiqing(the director of Agricultural Research Institute), Zhang Shouyong(the director of Tacheng City Land and Resource Bureau), Zhang Jiancheng(the director of Tacheng City Development and Reform Commission key PMO) Wu Guangjin(the chief of Tacheng City Development and Reform Commission PMO), Gong Dongming(the secretary of Bozidake Farm), principals of Tacheng Region Agriculture Bureau and China Power Investment Corporation, and concerned workers.

Conference topic: The topic is about arrangements and discussions on the compensation policies and standard, related regulations, and subsequent land acquisition of Combining Heat and Power Plant and Hengxing Cement Plant construction projects.

Meeting content: (1) Discuss the land acquisition strategy of Agricultural Research Institute and compensation standard. (2) Discuss the details of LA, issues that might need attention and following development of Agricultural Research Institute to ensure land acquisition just, fair, reasonable and transparent. (3) Discusses the compensation standards, resettlement approaches, payment process time; (4) Ask for opinions and advices from Agricultural Research Institute and concerned agencies.

Staffs express their views: Shi Shuiqing said that resettlement approaches and compensation standard formulated by TCG are fit in with requirement of resettlement approaches after many times consultations, especially displaced the 1000 state-owned land in south of Baketu Road to our Institute for experiment and research. Due to our Institute conducting the winter wheat variety test with Xinjiang Academy of Agricultural Science, Tacheng City DRC provided 200 mu land in advance for the test carried smoothly.For the land is owned by Tacheng City Government, and our Institute, being a state crops experiment station, will conduct a lot of research an test for state, North-west Region, Autonomy Region and Tacheng City Region, especially when applying for a research project and judging research results, it is clearly regulated that state-owned land use certificate is a must. Given this situation, the replacement land for our Institute is allocated free by Tacheng City Government, which also is in charge of corresponding land use certificate handling.In order not to affect normal experiment conducted by our Institute, Tacheng City Government put off the LA until to the experiment finished, for the ground attachment, it was compensated according to the state and autonomy region policies and compensation rate; Given our Institute will face the issue of infrastructure construction on replacement land, like dropper, traffic, office, etc. Tacheng City Government provided a matching fund of 8,000,000 after consultation.

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I’m supportive of this resettlement approach, no objection.

6 Appeal Procedure

23. During the LA, an appeal procedure was established. If displaced persons have any complaint and question about project land acquisition or other problems, they could take a variety of ways to appeal. The appeal system is shown in figure 6-1. Basic appeal stages are as follows Stage 1: If any AP is dissatisfied with any land acquisition and resettlement， he/she may file an oral or written appeal with TDRC, Tacheng City PMO. Such appeal should be solved within 2 weeks. Stage 2: If the AP is dissatisfied with the disposition of Stage 1, he/she may file an appeal with LRB, after receiving such disposition, which shall make a disposition within 2 weeks. Stage 3: If the AP is still dissatisfied with the disposition of Stage 2, he/she may file an appeal with Tacheng City Government after receiving such disposition, which shall make a disposition within 2 weeks. Stage 4: If the AP is still dissatisfied with the disposition of Stage 3, he/she may apply for administrative reconsideration with Administrative Office in Tacheng Prefecture, or he/she may applies for administration proceedings with people’s court of Tacheng Prefecture within 3 months based on the Civil Procedure Law. Displaced persons may file an appeal on any aspect of resettlement, including compensation rates, payment time, etc. The above means of appeal have been communicated to the displaced persons by virtue meetings and other channels, so that the displaced persons know their right of appeal.

Tacheng City legal Tacheng City department Government Tacheng Disciplinary Region People’s inspection LRB/PMO

County letters and visits department External M&E Tacheng City agency DRB key PMO

APs

Figure 1 Grievance Redress Flowchart

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24. From the investigation, it is found that ARI understand well about its own rights and the grievance complaint channels. There is no complaint until now and ARI is satisfied with the compensation.

7 Conclusion and Suggestion

25. Prior to and during the land acquisition, TDRC as well as the relevant units organized several different forms of public participation, and tARI’s opinions are fully respected in the project implementation process. The compensation payments have been paid in full. No impact on the regular operation of ARI. Overall, all of the compensation and resettlement measures are based on public participation to implement fully and without any remaining problems. 26. During the implementation period, the grievance complaint channels are in validity and there is no complaint up to now. ARI is very supportive of the project construction, and they are satisfied with the compensation standard, no remaining problems. 27. The investigation found that the land acquisition compensation and the fund for infrastructure construction has been paid in full as well as the 1,000 mu replacement land has been delivered to ARI, no remaining problems.

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Annex 7: Land Compensation Agreement

Land Replacement and Resettlement Agreement

Party A: Tacheng City Government Party B: Tacheng Region Agriculture Research Institute The combining heat and power plants construction project of 2x350MW and Liaoning Yuanjian Hengxing Cement Plant project producing 1,000,000 ton cement per year, which are funded by China Power Investment Corporation in Tacheng, are confirmed as key construction projects by the local region. After study, the construction leading group decided to locate the two projects mention above in the yard of Tacheng Region Agriculture Research Institute, and Tacheng City shall be in charge of project implementation. In order to promote the preliminary work and put the projects into construction, the two parties reach an agreement after consultations: (1) To support party A to conduct the project construction, the combining heat and power plants construction project of 2x350MW and Liaoning Yuanjian Hengxing Cement Plant project with a production of 1,000,000 ton cement per year, party B agrees to 700mu land replacement in its yard to party A for project construction land. (2) party A displaced the 1000 mu land owned by Bozidake farm in south of Baketu Road to party B for Tacheng winter wheat breeding base where party B and Xinjiang Academy of Agricultural Science conduct crops research, experiment, demonstration and promotion; and provide 200 mu land to party B before September 8, 2012 for “three-field” planting conducted by Xinjiang Academy of Agricultural Science. (3) Due to supportive of party A project implementation, party B need to displace land, and remove dropper, ground building, attachment, and party A provide land replacement compensation and moving subsidies of RMB8,000,000 in total to party B after consultations. (4) party A pays the land replacement compensation and moving subsidies of dropper, ground building and attachment, in total of RMB8,000,000, to party B in instalments; the compensation sum and payment time: after signing the agreement, RMB 3,000,000 yuan shall be paid, by 1 March 2013 RMB3,000,000 should be paid; by 1 May 2013, the rest of RMB2,000,000 shall be paid. (5) party A acquires the hops tree, fruit tree, attachment, etc. in the displaced land from party B and provides corresponding compensation based on relevant regulations and standard. party B cooperates with the LA and compensation work. (6) The displaced land of Agricultural Research Institute is allocated free by party A. . For party A, being a state crops experiment station, will conduct a lot of research an test for state, North-west Region, Autonomy Region and Tacheng City Region, especially when applying for a research project and judging research results, it is clearly regulated that

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state-owned land use certificate is a must. Given this situation, party A also is in charge of displaced land use certificate handling. (7) After finishing the combining heat and power plants construction project of 2x350MW, party A should reserve an area in comprehensive plan for Agricultural Research Institute, and give priority to heating, gas and water supply, etc, and offer preferential policies. (8) party A shall include the construction project conducted by party B in the displaced land, like dropper, vegetable greenhouse, etc. into Tacheng City Year Implementation Plan, and those projects enjoy same preferential policies as city unites(individual). (9) party A is in charge of proceeding construction procedures of the displaced land caused by infrastructure construction like office site, laboratory, seed storage, deck, tube well, transmission line, service facilities, etc. conducted by party B. (10) After signing the agreement, party B agrees with the preliminary work, like geological prospecting, of the combining heat and power plants construction project of 2x350MW and Liaoning Yuanjian Hengxing Cement Plant project producing 1,000,000 ton cement. party A coordinate relevant department to confirm the four boundaries of displaced land immediately and transact state-owned land use certificate to ensure construction plan of party B’s new site implemented on time. (11) For the details not in the agreement, two parties resolve by consultation, and sign corresponding supplementary agreement, which is in the same legal effect as the agreement. (12) The contradiction and dispute happening in the agreement implementation shall be brought to a court when consultation is out of effect. (13) The agreement comes into effect upon the signing date. (14) There are quadruplicating of this agreement, with each party holding two copies.

Party A: Tacheng City Government Party B: Tacheng Region Agriculture Research Institute Seal: Seal Signing of principal Signing of principal Date-----month-----year Date-----month-----year

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塔城移民安置计划信息手册RIB少

民族发展计划执行摘要及行动计划

信息披露

2014 年 12 月 30 日至 2015 年 1 月 25 日期间，塔城项目办对移民安置

计划信息手册RIB和少民族发展计划执行摘要及行动计划在社区/村进行了

公，并且对受影响人也进行了发放，以下是公时的照片