Resettlement Plan (Draft)

October 2015

People’s Republic of China: Henan Hebi Qihe River Environmental Improvement and Ecological Conservation Project

Prepared by Qibin District Government and Qibin District Project Management Office for the Asian Development Bank.

CURRENCY EQUIVALENTS (as of 7 October 2015)

Currency unit – yuan (CNY) CNY1.00 = $0.1573 $1.00 = CNY6.3580

ABBREVIATIONS

AAOV – Average Annual Output Value ADB – Asian Development Bank AH – Affected Households AP – Affected Person DMS – Detailed Measurement Survey FGD – Focus Group Discussion GRM – Grievance Redress Mechanism SES – Socio-economic Survey TA – Technical Assistance

WEIGHTS AND MEASUREMENTS

ha – hectare km – kilometer kg – kilogram m – meter

NOTES

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

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.

Draft Resettlement Plan ______

September 2015

PRC: Henan Hebi Qihe River Environmental Improvement and Ecological Conservation Project

— —Five Canal Watercourse Improvement in Qibin District

Prepared by Qibin District Government (HMG) and Qibin District Project Management Office (PMO) for the Asian Development Bank (ADB) Financed Project

CURRENCY EQUIVALENTS Currency unit = Yuan (CNY) CNY 1 = $ 0.1613 $ 1 = CNY 6.2 1 hectare = 15 mu ABBREVIATIONS

AAOV - Average Annual Output Value ADB - Asian Development Bank AH - Affected Households AP - Affected Person DMS - Detailed Measurement Survey FGD - Focus Group Discussion GRM - Grievance Redress Mechanism HD - House Demolition HCG - Hebi City Government HPRSAD - Hebi Project Resettlement and Social Affairs Department IOL - Inventory of Loss LA - Land Acquisition LEF - Land Expropriated Farmer M & E - Monitoring and Evaluation MLS - Minimum Living Security MSW - Municipal Solid Waste PMO - Project Management Office QBG - Qibin District Government QDMAO - Qibin District Municipal Administration Office QDLRMB - Qibin District Land Resource Management Bureau QDNCO - Qibin District New Community Office RRC - People’s Republic of China RIB - Resettlement Information Booklet ROW - Right-of-way RP - Resettlement Plan SES - Socio-economic Survey TA - Technical Assistance

WEIGHTS AND MEASURES Km = kilometer Kg = kilogram Ha = hectare m = meter

DEFINITION OF TERMS

Affected persons -Those who are physically displaced (relocation, loss of residential land, Households or loss of shelter) and/or economically displaced (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas.

Cut-off date -It refers to the date when the results of the census and inventory of losses were for eligibility presented to the affected households. Any households who built after the Project’s cut-off date will not be eligible for assistance.

Entitlement -Refers to a range of measures comprising compensation, income restoration support, transfer assistance, income substitution, relocation support, etc. which are due to the AHs, depending on the type and severity of their losses, to restore their economic and social base.

Grievance redress mechanism- A mechanism to receive and facilitate the resolution of affected persons’ concerns redress and grievances about physical and economic displacement and other project mechanism impacts, paying particular attention to the impacts on vulnerable groups.

Income restoration- This is the re-establishment of sources of income and livelihood of the program affected households. It is a program designed with various activities that aim to support affected persons to recover their income / livelihood to pre-project levels. The program is designed to address the specific needs of the affected persons based on the socio-economic survey and training need assessment.

Meaningful consultation- A process that (i) begins early in the project preparation stage and is carried out on consultation an ongoing basis throughout the project cycle; (ii) provides timely disclosure of relevant and adequate information that is understandable and readily accessible to affected people; (iii) is undertaken in an atmosphere free of intimidation or coercion; (iv) is gender inclusive and responsive, and tailored to the needs of disadvantaged and vulnerable groups; and (v) enables the incorporation of all relevant views of affected people and other stakeholders into decision making, such as project design, mitigation measures, the sharing of development benefits and opportunities, and implementation issues.

Vulnerable groups- Individuals and groups who may be differentially or disproportionately affected by the project because of their disadvantaged or vulnerable status. Vulnerable groups are those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples, and those without legal title to land.

Executive Summary 1. Introduction to the Subproject The Henan Hebi Qihe River Environmental Improvement and Ecological Conservation Project consists of 8 components in 4 categories, which are (i) Qi River Upstream Ecological Protection, (ii) Qi River Wetland Reservation and Restoration, (iii) Qi River main stream Watercourse Improvement in Qi County, (iv) Four tributary watercourse improvement in Qi County, (v) Five Canal watercourse improvement in Qibin District, (vi) Qibin District wastewater management, (vii) Qi County wastewater and solid waste management, (viii) institutional capacity building. The Project has a construction period of 6 years, from J 2016 to 2022.This Component is the 5th subproject of the Project, consisting of the Tianlai Canal (Qihe River intake-Nanhai Road), Mianfeng Canal (Dalaidian Village-Huashan Road), 2# branch canal (Dalaidian Village-Huangshan Road), 3# branch canal (main Tianlai Canal-moat), and 4# branch canal (main Tianlai Canal-high-speed rail station park), with a total length of 11.3km, excavation earthwork of 922,700 m3, backfilling earthwork of 90,900 m3, 14,400 m3 of concrete, masonry retaining walls of 14,400 m3 and landscaping of 29.44 hm2. The Subproject will be constructed from July 2016 to March 2020. The land acquisition (LA), house demolition (HD), compensation and resettlement work of the Subproject will begin in March 2016 and be completed in June 2017. The estimated resettlement budget is 34.6467 million yuan (prices in July 2015). This RP will be updated based on the detailed design of the Subproject and the results of the Detailed Measurement Survey (DMS), and the updated RP will be submitted to ADB for review and approval before the commencement of resettlement and construction and prior to civil works contract awards. 2. LA and HD impacts The acquisition of collective land will affect 8 villages/communities in 3 sub-districts in Qibin District, and the affected population is located in 6 villages/communities in two sub-districts. 735.29 mu of land will be occupied permanently for the Subproject, including 442.9 mu of collective land and 292.39 mu of state-owned land. 316 mu of collective land will be occupied temporarily, and residential houses on collective land of 2,012.74 m2 and non-residential properties 3,282.38 m2 will be demolished for the Subproject. Additionally, 13,233.05 m2 of residential houses were demolished by a previous and domestic funded urban village reconstruction project which was identified as “legacy issue” of the ADB financed project. The Subproject involves 229 households/entities with 1056 persons affected permanently, and 40 households with 175 persons affected temporarily, totaling 269 households/entities with 1,231 persons. Through identification, 6 households with 19 persons affected by the Subproject fall into vulnerable groups. See Table 1.

Table 1 Summary of Resettlement Impacts of the 5th Subproject 2# 3# 4# Tianlai Mianfeng Item branch branch branch Total Canal Canal canal canal canal Permanent Total 386.25 72.68 55 149.33 72.03 735.29 land Collective land 286 51 8 47.9 50 442.9 occupation State-owned land 100.25 21.68 47 101.43 22.03 292.39 (mu) Demolition of residential house (m2) 0 0 0 2012.74 2012.74 Demolition of non-residential 0 0 2 0 2282.38 1000 3282.38 1. Permanent properties (m ) impacts House Demolition by a previous and domestic 13233.05 0 0 13233.05 project1 HHs 47 0 0 57 22 126 LA Population 203 0 0 263 113 579 HD by ADB HHs /Entities 0 0 0 9 1 10 financed 0 0 0 Population 50 5 55 project

1 Urban Village Reconstruction Project financed by domestic fund and started in March 2013 prior to ADB financed project.

HD by a HHs 94 94 previous and domestic Population 427 427 project Both LA HHs/Entities 0 0 0 0 1 1 and HD Population 0 0 0 0 5 5 HHs/Entities 141 66 22 229 Subtotal2 Population 630 313 113 1056 Temporary land occupation (mu) 127.4 32.5 24.8 86.6 44.7 316 2. Temporary Temporarily affected HHs 14 3 2 12 9 40 impacts population Population 62 13 9 52 39 175 HHs/Entities 160 78 31 269 Affected population Population 71 4 365 152 1231 3.Total impacts Affected vulnerable HHs 0 0 0 3 3 6 groups Population 0 0 0 9 10 19

Within the range of the Tianlai Canal, Mianfeng Canal and 2# branch canal, 94 households has been demolished or will be relocated for the Dalaidian Old City Regeneration program as part of the urban village reconstruction project. The demolition of these 94 HHs is not a part of nor in anticipation of the ADB financed Project. Since this Subproject will use the land after the demolition of these 94 HHs, a DDR of their relocation and resettlement has been prepared to ensure there is no outstanding issues before the commencement of civil works (See appendix 1). As of the date of this report, 10 households had not entered into HD compensation agreements, and the 84 households whose houses have been demolished have not been resettled.

3. Policy framework and entitlements This RP is based on the Land Administration Law of the PRC (2004), Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28), Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (MLR [2004] No.238), the applicable policies of Henan Province, Hebi Municipal and Qibin District, and also ADB’s Safeguard Policy Statement (2009), particularly Safeguard Requirements 2 for Involuntary resettlement. According to the above policies, and in consultation with local governments and affected persons (APs), the resettlement principles of the Subproject are: (1) Involuntary resettlement should be avoided where feasible; (2) The APs are granted compensation and rights that can at least maintain or even improve their livelihoods in the absence of the Subproject; (3) The APs are given compensation and assistance in resettlement whether legal title is available or not; (4) If the land available to everyone is insufficient to maintain his/her livelihood, replacement in cash or in kind and other income-generating activities shall be provided for the lost land; (5) The APs fully understand their entitlements, the method and standard of compensation, the livelihood and income restoration program, and the schedule, and participate in the implementation of the RP; (6) The executing agency and an independent agency / third party shall monitor the compensation, relocation and resettlement operations; (7) The vulnerable groups shall be provided special assistance or treatment so that they lead a better life, and all APs shall have an opportunity to benefit from the Subproject; two members of each displaced household (DH) will receive skills training, including at least one woman; (8) The RP is consistent with the master plans of the affected city (district, county); and (9) The resettlement costs are sufficient to cover all affected aspects. 4. Resettlement strategy The compensation for the land permanently acquired for the Subproject is based on location-based composite land price (excluding young crop compensation). In the subproject area, the LA compensation rate for collective land is 38,000 yuan/mu, and the young crop compensation rates are 2,400 yuan/mu for irrigated land and 3,200 yuan/mu for vegetable land. LA compensation is disbursed by QDG to the affected villages/communities, and then paid fully and directly to the

2 107 HHs with 482 persons will be affected significantly.

AHs ; young crop compensation is paid directly to the AHs. The households affected by LA are provided with diversified livelihood restoration measures, including employment, skills training and social endowment insurance. The compensation rate for temporarily occupied irrigated land is 2,400 yuan/mu per annum, and the expected period of occupation is one year. Compensation will be paid directly to the AHs. The households affected by the demolition of residential houses will be entitled to cash compensation and centralized resettlement. The compensation rates are 470 yuan/m2 (same as the price of resettlement house) for masonry concrete houses (storied). The allocation program for resettlement housing is as follows: Each resettled person will receive 30 m2 of resettlement housing, 10 m2 of additional housing and 10 m2 of commercial housing at 420 yuan/m2, 600 yuan/m2 and 1,200 yuan/m2 (cost price) respectively. In addition, each AH will receive a moving award of 10,000 yuan and a transition subsidy of 2,000 yuan per capita per annum for not more than one year. 3 AHs will be resettled in completed Xiangjiang Community and 5 AHs will be resettled in Xianghe Community under construction. The remaining 10 households, out of 94 HHs who are affected by the previous and domestic Urban Village Reconstruction Project, will enter into HD compensation agreements as soon as possible, thereby fully completing HD. The construction of the resettlement housing of Dalaidian Community will be accelerated, so that the resettlement housing can be handed over and the AHs resettled properly by the end of 2015. The implementation of the above supplementary actions will be included in the internal and external M&E system, and reported to the Hebi PMO and ADB seminally until the AHs are fully resettled. The non-residential properties demolished for the Subproject are two mixed commercial and residential properties and a hennery. The same compensation rates as residential houses will be applied. The households affected by the demolition of mixed commercial and residential properties will also be resettled in Xiangjiang and Xianghe Community with a better geographic location and lawful formalities. With the further development of the city, commercial properties will have great potential of appreciation, and reap higher revenue and profits. The government will notify the AHs of demolition half a year in advance for the convenience of their new business preparation. For the hennery and brick factory who leased land for its operation, the government will notify the AHs of demolition half a year in advance, grant cash compensation, and assist them in leasing other land to resume business. The AH has been notified of demolition and chosen a new site. The affected special facilities will be reconstructed by the owner to the original size, standard and function, or by their proprietors after compensation. Other ground attachments will be compensated at specified rates. 5. Organizational setup The Qibin District Municipal Administration Office (QDMAO) is the implementing agency of the Subproject, on behalf of Qibin District Government. The Qibin PMO is responsible for the preparation, management and coordination of the Subproject. The Qibin District Land and Resources Management Bureau (QDLRMB) is responsible for LA compensation and resettlement, and the Qibin District New Community Office (QDNCO) for HD compensation and resettlement. The QDLRMB and QDNCO are responsible for RP implementation together with the affected sub-district offices, village/community committees. 6. Public participation and information disclosure All APs (with 50% being women) have been informed of the key points of this RP by various means and involved in the Subproject, such as meeting, interview, FGD, public participation meeting and community consultation, and their opinions have been well incorporated into this RP. The Resettlement Information Booklet (RIB) will be distributed to the APs or groups in August 2015, and the first draft of this RP will be published on ADB’s website in August 2015. 7. Grievance redress An appeal procedure has been established to settle disputes over compensation and resettlement. The aim is to respond to appeals of the APs timely and transparently. Grievances about the Subproject may be from LA and HD. Correspondingly, the Hebi PMO, Hebi Project Resettlement and Social Affairs Department (HPRSAD), Qibin PMO, and the affected sub-district offices and village/community committees will coordinate and handle grievances and appeals arising from resettlement. The APs may file appeals about any aspect of resettlement, including compensation rates. All agencies will accept grievances and appeals from the APs for free, and costs so reasonably incurred will be disbursed from contingencies.

VII

8. Resettlement budget All costs incurred during LA and resettlement will be included in the general budget of the Subproject. Based on prices in July 2015, the resettlement budget of the Subproject is 34.6467 million yuan (about 21.62% of gross investment of 151.6911 million yuan), including basic LA and HD costs of 20.6579 million yuan or 59.62% of the resettlement budget, other costs (including planning and design costs, training costs, LA taxes, supporting fund for vulnerable groups, etc.) of 10.8901 million yuan or 31.43% of the resettlement budget, and contingencies of 3.0987 million yuan or 8.94% of the resettlement budget. 9. Monitoring and evaluation (M&E) In order to ensure the successful implementation of this RP, resettlement implementation will be subject to internal and external monitoring. Internal monitoring will be conducted by the Hebi PMO, HPRSAD, Qibin PMO, and other district authorities (e.g., land and resources bureau, QDNCO, labor and social security bureau), and an internal monitoring report will be submitted to ADB semiannually. The Hebi PMO will engage an independent agency to conduct external M&E and submit M&E reports semiannually, and M&E costs will be included in the budget of institutional capacity building.

VIII

Contents

EXECUTIVE SUMMARY ...... V

1 OVERVIEW OF THE SUBPROJECT ...... 1

1.1 BACKGROUND ...... 1

1.2 B. COMPONENTS AND RESETTLEMENT IMPACTS ...... 1

1.3 C. MEASURES TO REDUCE RESETTLEMENT ...... 2 1.3.1 Design Stage ...... 3 1.3.2 Resettlement Implementation Stage ...... 3 1.3.3 Construction Stage ...... 3

1.4 ESTIMATED RESETTLEMENT BUDGET AND IMPLEMENTATION PLAN ...... 3

2 IMPACTS OF THE SUBPROJECT ...... 4

2.1 RANGE OF IMPACT SURVEY OF LA AND HD ...... 4

2.2 IMPACTS OF PERMANENT LA ...... 4 2.2.1 Amount and Affected Population ...... 4 2.2.2 Land Losses ...... 5 2.2.3 Income Losses ...... 8

2.3 IMPACTS OF PERMANENT OCCUPATION OF STATE-OWNED LAND ...... 8

2.4 IMPACTS OF TEMPORARY LAND OCCUPATION ...... 9

2.5 DEMOLITION OF RESIDENTIAL HOUSES ...... 9

2.6 DEMOLITION OF NON-RESIDENTIAL PROPERTIES ...... 10

2.7 AFFECTED GROUND ATTACHMENTS ...... 11

2.8 AFFECTED POPULATION ...... 12 2.8.1 Summary ...... 12 2.8.2 Affected Vulnerable Groups ...... 13 2.8.3 Affected Minority Population ...... 13 2.8.4 Gender Impacts ...... 13

3 SOCIOECONOMIC PROFILE ...... 14

3.1 SOCIOECONOMIC PROFILE OF THE SUBPROJECT AREA ...... 14 3.1.1 Hebi City and Qibin District ...... 14 3.1.2 Affected Sub-districts ...... 15 3.1.3 Affected Villages/Communities ...... 15

3.2 B. SOCIOECONOMIC PROFILE OF THE AFFECTED POPULATION ...... 16 3.2.1 Households Affected by LA ...... 16 3.2.2 Households Affected by HD ...... 17 3.2.3 Expected Resettlement Modes ...... 18

3.3 GENDER ANALYSIS ...... 19

4 LEGAL FRAMEWORK AND POLICIES ...... 22

4.1 LAWS, REGULATIONS AND POLICIES APPLICABLE TO RESETTLEMENT ...... 22

4.2 ABSTRACT OF THE ADB POLICY ...... 23

4.3 KEY PROVISIONS OF PRC LAWS, REGULATIONS AND POLICIES ...... 25 4.3.1 Abstract of applicable state laws and regulations ...... 25 4.3.2 Abstract of applicable provincial regulations and policies ...... 28

4.4 MAIN DIFFERENCES BETWEEN THE ADB POLICY AND PRC LAWS ...... 29

4.5 CUT-OFF DATE ...... 30

4.6 COMPENSATION RATES ...... 30 4.6.1 Permanent LA ...... 30 4.6.2 Demolition of Residential Houses ...... 31 4.6.3 Demolition of Non-residential Properties ...... 31 4.6.4 Temporary Land Occupation ...... 32 4.6.5 Young Crops and Attachments ...... 32 4.6.6 Tax and Fee Rates ...... 33

4.7 ENTITLEMENT MATRIX ...... 33

5 RESETTLEMENT AND INCOME RESTORATION ...... 36

5.1 OBJECTIVES AND PRINCIPLES OF RESETTLEMENT ...... 36 5.1.1 Objectives ...... 36 5.1.2 Principles ...... 36

5.2 INCOME RESTORATION PROGRAM FOR HOUSEHOLDS AFFECTED BY LA ...... 36 5.2.1 Cash Compensation and Distribution ...... 36 5.2.2 Employment ...... 37 5.2.3 Skills Training ...... 39 5.2.4 Social Endowment Insurance ...... 40

5.3 RESETTLEMENT PROGRAM FOR DEMOLITION OF RESIDENTIAL HOUSES ...... 41

5.4 RESETTLEMENT PROGRAM FOR DEMOLITION OF NON-RESIDENTIAL PROPERTIES ...... 42 5.5 WOMEN’S DEVELOPMENT MEASURES ...... 43 5.6 SUPPORTING MEASURES FOR VULNERABLE GROUPS ...... 44

5.7 RESTORATION PROGRAM FOR INFRASTRUCTURE AND GROUND ATTACHMENTS ...... 44

6 ORGANIZATIONAL STRUCTURE ...... 45

6.1 RESETTLEMENT IMPLEMENTATION AND MANAGEMENT AGENCIES ...... 45 6.1.1 Organizational Setup ...... 45 6.1.2 Organizational Responsibilities ...... 45

6.2 STAFFING AND EQUIPMENT ...... 48 6.2.1 Staffing ...... 48 6.2.2 Equipment ...... 48 6.2.3 Organizational Training Program ...... 48

7 PUBLIC PARTICIPATION AND GRIEVANCE REDRESS ...... 50

7.1 PUBLIC PARTICIPATION ...... 50 7.1.1 Preparation Stage ...... 50 7.1.2 Implementation Stage ...... 52

7.2 GRIEVANCE REDRESS ...... 53 7.2.1 Modes of Collection of Grievances and Appeals ...... 53 7.2.2 Grievance Redress Procedure ...... 53 7.2.3 Principles for Grievance Redress ...... 53 7.2.4 Scope and Modes of Reply ...... 54

7.3 RECORDING AND FEEDBACK OF GRIEVANCES AND APPEALS ...... 54

7.4 CONTACT INFORMATION FOR GRIEVANCE REDRESS ...... 54

8 RESETTLEMENT BUDGET ...... 56

8.1 RESETTLEMENT BUDGET ...... 56

8.2 RESETTLEMENT INVESTMENT SCHEDULE AND FUNDING SOURCES ...... 57

8.3 DISBURSEMENT AND MANAGEMENT OF RESETTLEMENT FUNDS ...... 57 8.3.1 Disbursement of Resettlement Funds ...... 57 8.3.2 Management of Resettlement Funds ...... 58

9 RESETTLEMENT IMPLEMENTATION SCHEDULE ...... 59

9.1 PRINCIPLES FOR RESETTLEMENT IMPLEMENTATION ...... 59

9.2 RESETTLEMENT IMPLEMENTATION SCHEDULE ...... 59

10 RESETTLEMENT MONITORING AND EVALUATION ...... 62

10.1 INTERNAL MONITORING ...... 62

10.2 EXTERNAL MONITORING ...... 62 10.2.1 Scope and Methods ...... 62 10.2.2 Reporting ...... 63

10.3 POST-EVALUATION ...... 63

APPENDIXES ...... 64

APPENDIX 1: RESETTLEMENT DUE DILIGENCE REPORT OF THE AFFECTED HOUSEHOLDS BEING RELOCATED UNDER THE

URBAN VILLAGE RECONSTRUCTION PROJECT ...... 64 APPENDIX 2: RESETTLEMENT INFORMATION BOOKLET (RIB) ...... 76 APPENDIX 3: FIELDWORK PHOTOS ...... 83

List of Tables TABLE 1-1 SUMMARY OF RESETTLEMENT IMPACTS BY SUBPROJECTS UNDER THE OVERALL PROJECT ...... 3 TABLE 1-2 SCOPE OF THE RESETTLEMENT IMPACTS ...... 2 TABLE 1-3 MEASURES TO REDUCE RESETTLEMENT AT THE PREPARATION STAGE ...... 3 TABLE 2-1 RANGE OF THE SUBPROJECT AREA ...... 4 TABLE 2-2 SUMMARY OF ACQUIRED COLLECTIVE LAND (BY COMPONENT) ...... 4 TABLE 2-3 SUMMARY OF ACQUIRED COLLECTIVE LAND (BY VILLAGE GROUP) ...... 5 TABLE 2-4 SUMMARY OF ACQUIRED COLLECTIVE LAND AND INCOME LOSSES AT VILLAGES LEVEL ...... 7 TABLE 2-5 LAND LOSS RATES AT HOUSEHOLDS LEVEL ...... 7 TABLE 2-6 INCOME SOURCES AND STRUCTURE OF AHS ...... 8 TABLE 2-7 INCOME LOSS RATES AT HOUSEHOLDS LEVEL ...... 8 TABLE 2-8 SUMMARY OF PERMANENTLY OCCUPIED STATE-OWNED LAND ...... 8 TABLE 2-9 SUMMARY OF TEMPORARILY OCCUPIED LAND ...... 9 TABLE 2-10 SUMMARY OF DEMOLISHED RESIDENTIAL HOUSES BY ADB FINANCED PROJECT...... 9 TABLE 2-11 HD IMPACTS BY URBAN VILLAGE RECONSTRUCTION PROJECT FINANCED BY DOMESTIC FUND ...... 10 TABLE 2-12 SUMMARY OF DEMOLISHED NON-RESIDENTIAL PROPERTIES...... 10 TABLE 2-13 SUMMARY OF AFFECTED GROUND ATTACHMENTS ...... 12 TABLE 2-14 SUMMARY OF AFFECTED POPULATION (BY VILLAGE GROUP) ...... 12 TABLE 2-15 SUMMARY OF AFFECTED POPULATION (BY COMPONENT)...... 13 TABLE 2-16 SUMMARY OF AFFECTED VULNERABLE GROUPS ...... 13 TABLE 3-1 SOCIOECONOMIC PROFILE OF HEBI CITY (2013) ...... 14 TABLE 3-2 SOCIOECONOMIC PROFILE OF QIBIN DISTRICT (2013) ...... 15 TABLE 3-3 SOCIOECONOMIC PROFILE OF THE AFFECTED VILLAGES ...... 15 TABLE 3-4 DEMOGRAPHICS OF THE HOUSEHOLDS AFFECTED BY LA ...... 16 TABLE 3-5 HOUSEHOLD INCOME AND EXPENDITURE ...... 17 TABLE 3-6 DEMOGRAPHICS OF THE HOUSEHOLDS AFFECTED BY HD ...... 17 TABLE 3-7 LIVING CONDITIONS OF THE HOUSEHOLDS AFFECTED BY HD ...... 18 TABLE 3-8 LIVING ENVIRONMENT OF THE HOUSEHOLDS AFFECTED BY HD (KM) ...... 18 TABLE 3-9 EXPECTED RESETTLEMENT MODES OF THE HOUSEHOLDS AFFECTED BY LA ...... 19 TABLE 3-10 GENDER ANALYSIS ...... 20 TABLE 4-1 PRINCIPLES FOR RESETTLEMENT ...... 24 TABLE 4-2 LIST OF LOCATION-BASED COMPOSITE LAND PRICES...... 30 TABLE 4-3 COMPARISON OF LA COMPENSATION RATES AND INCOME LOSSES ...... 31 TABLE 4-4 COMPENSATION RATES FOR DEMOLISHED RESIDENTIAL HOUSES ...... 31 TABLE 4-5 COMPENSATION RATES FOR TEMPORARY LAND OCCUPATION ...... 32 TABLE 4-6 COMPENSATION RATES FOR YOUNG CROPS ...... 32 TABLE 4-7 COMPENSATION RATES FOR GROUND ATTACHMENTS ...... 32 TABLE 4-8 TAX AND FEE RATES ON LA ...... 33 TABLE 4-9 ENTITLEMENT MATRIX ...... 34 TABLE 5-1 SUMMARY OF LA COMPENSATION DISTRIBUTION PROGRAMS ...... 37

XII

T ABLE 5-2 EMPLOYMENT PROGRAM OF THE SUBPROJECT ...... 38 TABLE 5-3 SUMMARY OF LOCAL TRAINING PROGRAMS ...... 39

TABLE 5-4 CONTRIBUTION AND PENSION LEVELS OF ENDOWMENT INSURANCE FOR URBAN AND RURAL RESIDENTS

(YUAN)...... 40 TABLE 6-1 STAFFING OF RESETTLEMENT AGENCIES ...... 48 TABLE 6-2 PERSONS CHIEFLY RESPONSIBLE OF RESETTLEMENT AGENCIES ...... 48 TABLE 6-3 OPERATIONAL TRAINING PROGRAM OF RESETTLEMENT AGENCIES ...... 49 TABLE 7-1 PUBLIC PARTICIPATION ACTIVITIES AT THE PREPARATION STAGE ...... 50 TABLE 7-2 PUBLIC PARTICIPATION PLAN...... 52 TABLE 7-3 CONTACT INFORMATION FOR GRIEVANCE REDRESS ...... 54 TABLE 8-1 RESETTLEMENT BUDGET (UNITS: 10,000 YUAN, %) ...... 56 TABLE 8-2 RESETTLEMENT INVESTMENT PLAN ...... 57 TABLE 9-1 RESETTLEMENT IMPLEMENTATION SCHEDULE ...... 59 TABLE 10-1 M&E SCHEDULE ...... 63

List of Figures FIGURE 1-1 MAP OF THE PROJECT COMPONENTS ...... 2 FIGURE 1-2 LOCATION MAP OF THE SUBPROJECT ...... 1 FIGURE 2-1 CURRENT SITUATION OF THE HENNERY AFFECTED BY THE 4# BRANCH CANAL ...... 11 FIGURE 2-2 CURRENT SITUATION OF THE BRICK FACTORY AFFECTED BY THE 3# BRANCH CANAL ...... 11 FIGURE 5-1 COOKING (LEFT) AND BUSINESS STARTUP (RIGHT) TRAINING IN JIUZHOU ROAD SUB-DISTRICT IN 2014 ...... 39 FIGURE 5-2 XIANGJIANG COMMUNITY (LEFT) AND EFFECTIVE DRAWING OF XIANGHE COMMUNITY (RIGHT) ...... 42 FIGURE 6-1 ORGANIZATIONAL CHART ...... 47 FIGURE 7-1 COMMUNITY-BASED GRIEVANCE REDRESS MECHANISM FOR SAFEGUARD ISSUES ...... 55 FIGURE 8-1 DISBURSEMENT PROCESS OF RESETTLEMENT FUNDS ...... 58

XIII

1 Overview of the Subproject

1.1 Background

1. In order to fully rehabilitate the ecological environment and water quality of the Qihe River watershed, improve urban wastewater collection and treatment significantly, control water pollutants effectively, create a new economic development pattern with environmental protection in mind, and build a national wetland park and ecological demonstration base, HMG has applied for a loan of USD150 million with ADB for the Project.

2. The Project consists of 8 components in 4 categories, which are (i) Qi River Upstream Ecological Protection, (ii) Qi River Wetland Reservation and Restoration, (iii) Qi River main stream Watercourse Improvement in Qi County, (iv) Four tributary watercourse improvement in Qi County, (v) Five Canal watercourse improvement in Qibin District, (vi) Qibin District wastewater management, (vii) Qi County wastewater and solid waste management, (viii) institutional capacity building. Component (i)3 and (viii) will not involve any LAR impact, therefor 6 RPs have been prepared for the rest components in accordance with the requirements of ADB’s Safeguard Policy Statement (SPS; 2009). See the maps in figure I-1. See the LAR impacts for each component in Table I-1.

3. The gross investment in the Project is 1.858 billion yuan, including a construction investment of 1.946 billion yuan, interests during construction of 35.685 million yuan and a commitment fee of 2.4019 million yuan, including an ADB loan of USD150 million, equivalent to 915 million yuan, while the balance of 1.069 billion yuan is to be raised by HMG.

4. Through preliminary identification, the Project belongs to Category A in involuntary resettlement. Therefore, QDG has prepared 6 RPs that complies with ADB’s Safeguard Policy Statement (2009), and the applicable laws, regulations and policies of the PRC, Henan Province and Hebi City with the assistance of the ADB technical assistance experts.

5. This Component is the 5th subproject of the Project, consisting of the Tianlai Canal, Mianfeng Canal, and 2#, 3# and 4# branch canals, with a total length of 11.3km, excavation earthwork of 922,700 m3, backfilling earthwork of 90,900 m3, 14,400 m3 of concrete, masonry retaining walls of 14,400 m3 and landscaping of 29.44 hm2. See figure I-2.

6. QDMAO is the implementing agency, on behalf of QDG. The Qibin PMO is responsible for the preparation, management and coordination of the Subproject. The Qibin District Land and Resources Bureau is responsible for LA compensation and resettlement, and QDNCO for HD compensation and resettlement.

3 The involved land for greening of barren hills are collective owned and partly contracted to households. Very low or even no income can be generated from these barren land. No land will be acquired and no natural resource will be additionally restricted to be used by households in project area.

Figure 1-1 Map of the Project Components

Table 1-1 Summary of Resettlement Impacts by Subprojects under the overall Project

2.3 Five Canal 2.1 Qihe River 1.2 Qihe River 2.2 Four Tributary Watercourse 3.2 Qi County Mainstream 3.1 Qibin District Wetland Watercourse Improvement in Wastewater and Item Watercourse Wastewater Total Conservation and Improvement in Qibin District (the Solid Waste Improvement in Management Rehabilitation Qi County RP for this Management Qi County subproject) Collectively-owned land 285.75 166.7 220.53 442.9 0 58.35 1174.23 acquisition Permanent land Rural land transfer 1959.28 0 0 0 0 0 1959.28 use (mu) State-owned land occupation 455.74 546.1 0 292.39 0 5.4 1299.59

Total 2700.73 712.8 220.53 735.29 0 63.75 4433.1 by ADB financed project 0 0 0 5295.12 0 0 5295.12 House by a previous and domestic 0 0 0 0 0 1.Permane 13233.05 13233.05 demolition (m2) project5 nt impacts Total 0 0 0 18528.17 0 0 18528.17

Collective-owned AHs 44 25 148 126 0 23 366

Permanently land acquisition APs 225 123 594 579 0 98 1619 affected AHs 364 0 0 0 0 0 364 population Rural land transfer APs 1812 0 0 0 0 0 1812

State-owned land AHs 113 0 0 0 0 0 113

4 The land has been acquired by a previous and domestic project in 2011 with 113 HHs and 500 persons affected. 5 Urban Village Reconstruction Project financed by domestic fund and stated in March 2013 prior to ADB financed project.

occupation APs 500 0 0 0 0 0 500 House demolition AHs 0 0 0 106 0 0 10 by ADB financed APs 0 0 0 55 0 0 55 Project House demolition AHs 0 0 0 94 0 0 94 by a previous and APs 0 0 0 427 0 0 427 domestic project

Both LA and house AHs 0 0 0 1 0 0 1 demolition APs 0 0 0 5 0 0 5 AHs 521 25 148 229 0 23 946 Sub-total APs 2537 123 594 1056 0 98 4408 AHs 13 1 18 107 0 20 159 Significantly affected7 APs 66 5 76 482 0 81 710 Collectively-owned land 0 90.36 17.5 316 216.78 87.19 727.83 Temporary land State-owned land 0 0 0 0 605.28 224.57 829.85 2. use (mu) Total 0 90.36 17.5 316 822.06 311.76 1557.68 Temporary Temporarily impacts Temporary land AHs 0 64 32 40 163 216 515 affected occupation population APs 0 278 130 175 650 1020 2253 AHs 521 89 180 269 163 239 1461 3.Total Affected8 APs 2537 401 724 1231 650 1118 6661 Note: Component (i) Qi River Upstream Ecological Protection and (viii) institutional capacity building will not involve in LAR.

6 Residential houses for 8 HHs and 2 small enterprises will be demolished, in which one household will be affected by LA and HD at the same time. 7 Affected by HD or LA with income loss rate more than >10% (significance of impact is determined based on income loss instead of land loss because most Affected Households live in or around urban area and do not rely on land resources and agricultural incomes). 8 No ethnic minorities will be affected by LAR.

Mianfeng Canal

2# Branch Canal

Tianlai Canal

3# Branch Canal

4# Branch Canal

Figure 1-2 Location Map of the Subproject

1.2 B. Components and Resettlement Impacts

7. The Five Canal Watercourse Improvement in Qibin District is frequently exposed to floods and solid waste pollution, and illegal buildings and seriously damaged embankments have reduced its flood discharge and protection capacity.

8. The Subproject involves flood protection, river management, landscaping, etc., and will improve the flood discharge capacity of the Qihe River branch (Qibin District section) quickly, and establish a relatively stable ecological environment for the river.

9. The Subproject’s benefits include: 1) improving overall urban environmental quality; 2) promoting economic and social development; and 3) improving the living quality of local residents. 10. The Subproject consists of: 1) Tianlai Canal (Qihe River intake-Nanhai Road); 2) Mianfeng

Canal (Dalaidian Village-Huashan Road); 3) 2# branch canal (Dalaidian Village-Huangshan Road); 4) 3# branch canal (main Tianlai Canal-moat); and 5) 4# branch canal (main Tianlai Canal-high-speed rail station park). All components involve permanent LA. Components (4) and (5) involve HD. The urban village reconstruction project within the range of Components (1), (2) and (3) has been started before the commencement of the Subproject. The houses of 94 households are within in the subproject area , where 10 households have not entered into HD compensation agreements, and the other 84 households having completed HD have not been resettled (see Appendix 1 for the resettlement due diligence report for the affected households under the urban village reconstruction project). The impact area of this Subproject is located in peri-urban or urban area. See Table 1-2.

Table 1-2 Scope of the Resettlement Impacts No. Component Scope of construction Resettlement impacts Documents Dredging and embankment Acquiring 286 mu of collective land, protection from Qihe River mouth to affecting 47 households with 203 Nanhai Road, 5.15km long, pile persons; demolishing the houses of 52 No.0+000-5+150.1, in which the households, in which 5 households have Tianlai 1 0+401-1+401 section will be newly not completed HD; all households Canal excavated due to rerouting, bottom affected by HD have not been resettled width 5m, top width 20m, landscaping width 15m on each Included in side RP and Dredging and embankment Acquiring 51 mu of collective land, resettlement protection from the diversion sluice demolishing the houses of 32 due Mianfeng to Huashan Road, 969m long, households, in which 5 households have diligence 2 Canal bottom width 4m, top width 20m, not completed HD; all households report (see landscaping width 15m on each affected by HD have not been resettled Appendix 1) side Dredging and embankment Ac quiring 8 mu of collective land, protection from Dalaidian Village to demolishing the houses of 10 2# branch Huangshan Road, 733.3m long, households, all of which have entered 3 canal bottom width 5m, top width 20m, into HD compensation agreements; all landscaping width 15m on each households affected by HD have not side been resettled From the main canal to the moat, Acquiring 47.9 mu of collective land, 2,844.3m long, being a rerouted affecting 57 households with 263 canal, 3m, top width 15m, persons; demolishing residential houses landscaping width 10m on each of 2012.74 m2, affecting 8 households 3# branch side with 44 persons; demolishing Included in 4 canal non-residential properties of 3282.38 m2, RP affecting 4 households with 23 persons (included 2 AHs with 23 persons in those affected by the demolition of residential houses) From the main canal to the Acquiring 50 mu of collective land, high-speed rail station park, affecting 22 households with 113 1,600.6m long, being a newly persons; demolishing non-residential 4# branch Included in 5 planned canal in Hebi New District, properties of 1,000 m2, affecting one canal RP bottom width 3m, top width 10m, household with 5 persons landscaping width 10m on each side

1.3 C. Measures to Reduce Resettlement

11. Whether during planning or implementation, resettlement impacts have been minimized based on a comprehensive consideration of construction costs, social impacts and environmental impacts.

1.3.1 Design Stage 12. At the preparation stage, the design agency has optimized the scope, scale and site of the Subproject through option comparison to minimize resettlement impacts. The specific measures are as follows:

Table 1-3 Measures to Reduce Resettlement at the Preparation Stage Component Option 1 Option 2 Preferred option Reduced impact 2,401m long 969 m long as with new Mianfeng Canal existing Option 2 Acquisition of 75.2 mu of land construction situation part

1.3.2 Resettlement Implementation Stage 13. If when LA or HD is unavoidable, the following measures will be taken to reduce the local impacts of the Subproject: 1) Notify the APs in advance, arrange a resettlement site, and compensate for losses. 2) Conduct public participation and consultation actively to collect comments and suggestions from the APs. 3) Strengthen internal and external monitoring, establish an efficient and unobstructed feedback mechanism and channel, and shorten the information processing cycle to ensure that issues arising from implementation are solved timely. 4) Local competent authorities will assist the APs in resettlement to reduce their burden and losses.

1.3.3 Construction Stage 14. During construction, the following measures will be taken to minimize impacts on the APs: 1) Construction will be completed as quickly as possible. The destruction of farmland, roads and houses will be avoided where possible. Warning signs will be set up as necessary to facilitate pedestrian and vehicular traffic. 2) Spoil excavated during construction will be removed timely. 3) The construction agency will coordinate with the local environmental sanitation authority to remove domestic waste from the construction site timely.

1.4 Estimated Resettlement Budget and Implementation Plan

15. Based on prices in July 2015, the resettlement budget of the Subproject is 34.6467 million yuan (about 22.84% of gross investment of 151.6911 million yuan), including basic LA and HD costs of 2065.79 million yuan or 59.62% of the resettlement budget, other costs (including planning and design costs, training costs, LA taxes, supporting fund for vulnerable groups, etc.) of 10.8901 million yuan or 31.43% of the resettlement budget, and contingencies of 3.0987 million yuan or 8.94% of the resettlement budget. All resettlement funds will be from domestic counterpart funds. The Subproject will be implemented from July 2016 to March 2020. Correspondingly, resettlement will begin in March 2015 and be completed in June 2017.

16. This RP has been prepared based on the latest feasibility study report and preliminary design, and will be updated based on the detailed design and DMS. The updated RP will be submitted to ADB for review and approval before the commencement of resettlement and prior to civil works contract awards.

2 Impacts of the Subproject

2.1 Range of Impact Survey of LA and HD

17. Hohai University was appointed by the Hebi PMO to conduct a socioeconomic survey in the subproject area in January 2015, using the methods of literature study, key information interview, focus group discussion (FGD) and questionnaire survey, covering population, land resources, residential conditions, income and expenditure, expected resettlement modes, etc.

18. According to the survey, the Subproject will affect 8 villages/communities in 3 sub-districts in Qibin District. See Table 2-1.

Table 2-1 Range of the Subproject Area Component Sub-district Village/ community Jiuzhou Road Xiangjiang Community, Dalaidian Village Tianlai Canal Changjiang Road Xiaoxinzhuang and Daxinzhuang Villages Jiuzhou Road Dalaidian Village Mianfeng Canal Liyang Road Daliangzhuang Village 2# branch canal Jiuzhou Road Dalaidian Village Jiuzhou Road Xiangjiang Community 3# branch canal Taoyuan Community Changjiang Road Jiangzhuang Village 4# branch canal Changjiang Road Xiaoxinzhuang, Daxinzhuang and Niuzhuang Villages

2.2 Impacts of Permanent LA

2.2.1 Amount and Affected Population 19. All the 5 components of the Subproject involve the acquisition of collective land (even some villagers live in urban area), affecting 8 villages/communities in Jiuzhou Road, Liyang Road and Changjiang Road Sub-districts. All the affected villages/communities are located in the urban area, and their residents are nonagricultural status in household registration. 442.9 mu of collective land will be acquired for the Subproject, including 118.64 mu of irrigated land (26.79%), 11.87 mu of vegetable land (2.68%), 100.83 mu of woodland (22.77%) and 211.56 mu of construction land (47.77%), affecting 126 households with 579 persons. See Tables 2-2 and 2-3.

Table 2-2 Summary of Acquired Collective Land (by Component) Permanent acquired collective land (mu) Percent Component Irrigated Vegetable Wood Construction AHs APs Village/ community Total (%) land land land land9 Xiangjiang Community; Tianlai Canal 47.54 7.4 50 181.06 286 64.57 47 203 Dalaidian, Daxinzhuang and Xiaoxinzhuang Villages Daliangzhuang and Dalaidian Mianfeng Canal 0 0 30 21 51 11.52 0 0 Villages 2# branch canal 0 0 0 8 8 1.81 0 0 Dalaidian Village Jiangzhuang Village, Taoyuan 3# branch canal 44.54 3.36 0 0 47.9 10.82 57 263 and Xiangjiang Communities Xiaoxinzhuang Xiaoxinzhuang, 4# branch canal 26.56 1.11 20.83 1.5 50 11.29 22 113 Daxinzhuang and Niuzhuang Villages

9 The construction land affected by Tianlai, Mianfeng and 2# branch canal is in areas wehre HD already completed or ongoing in Daliandian zone which was caused by a domestic project, see details in DDR in appendix 1.

Total 118.64 11.87 100.83 211.56 442.9 100.00 126 579 Percent (%) 26.79 2.68 22.77 47.77 100.00 \ \ \ Note: All affected woodland land is collectively owned and not contracted to households.

Table 2-3 Summary of Acquired Collective Land (by Village Group) Permanent acquired collective land (mu) Percent S ub-district Village/ community Irrigated Vegetab Wood Constructi AHs APs Component Total (%) land le land land on land Xiangjiang Community 7 0 0 0 7 1.58 25 135 Tianlai Canal, 3# Xiangjiang Community 0 0 0 65 65 14.68 0 0 branch canal Jiuzhou Tianlai Canal, Road Dalaidian Village 0 0 0 142 142 32.06 0 0 Mianfeng Canal, 2# branch canal Total 7 0 0 207 214 48.32 25 135 Liyang Daliangzhuang Village 0 0 30 0 30 6.77 0 0 Mianfeng Canal Road Xiaoxinzhuang Village 28.54 7.4 0 3.06 39 8.81 16 70 Tianlai Canal, 4# Changjiang Road Road Changjiang Xiaoxinzhuang Village 0 0 30 0 30 6.77 0 0 branch canal Daxinzhuang Village 39.66 0.51 0.33 1.5 42 9.48 50 235 Tianlai Canal, 4# Daxinzhuang Village 0 0 20 0 20 4.52 0 0 branch canal Taoyuan Community 10.5 10.5 2.37 9 39 3# branch canal Jiangzhuang Village 27.04 3.36 30.4 6.86 23 89 3# branch canal Niuzhuang Village 5.9 0.6 0.5 0 7 1.58 3 11 4# branch canal Niuzhuang Village 0 0 20 0 20 4.52 0 0 Total 111 .64 11.87 70.83 4.56 198.9 44.91 101 444 Total 118.64 11.87 100.83 211.56 442.9 100.00 126 579 Percent (%) 26.79 2.68 22.77 47.77 100.00 \ \ \

2.2.2 Land Losses 20. The permanent acquisition of cultivated land (irrigated and vegetable land) will affect 126 households with 579 persons in 6 villages/communities in Jiuzhou Road and Changjiang Road Sub-districts mainly, with 130.51 mu of cultivated land acquired in total.

1) Village level 21. The loss rates of cultivated land of the affected 6 villages/communities are below 45%. Xiaoxinzhuang Village has the highest land loss rate of 44.93%, followed by Daxinzhuang Village (38.63%), and the land loss rates of the other villages/communities are below 10%. See Table 2-4.

2) Household level 22. Among the 126 households affected by LA, two have land loss rates of below 10%, accounting for 1.59% of all AHs; 48 have land loss rates of 10%-20%, accounting for 38.10%; 57 have land loss rates of 20%-30%, accounting for 45.24%; 16 have land loss rates of 40%-50%, accounting for 12.70%; and 3 have land loss rates of 50%-60%, accounting for 2.38%. See Table 2-5.

Figure 2-1 Current Situation of Land to be Acquired

Table 2-4 Summary of Acquired Collective Land and Income Losses at Villages Level Before LA LA impact Per Land loss rate Income loss (yuan) capita Land Percent to Sub- Per capita Percent Average Per Village/ community Cultivated Cultivated cultivated loss Annual per capita district HHs Population cultivated Ahs APs of HHs loss per capita area (mu) area (mu) area after rate loss net income area (mu) (%) HH loss LA (mu) (%) (%) Jiuzhou Xiangjiang Community 250 1070 210 0.20 25 135 7.00 0.19 10.00 3.33 10080 403.20 74.67 0.53 Road

Changjiang Changjiang Xiaoxinzhuang Village 215 920 80 0.09 16 70 35.94 0.05 7.44 44.93 51754 3234.60 739.34 4.62

Road Road Daxinzhuang Village 280 1200 104 0.09 50 235 40.17 0.05 17.86 38.63 57845 1156.90 246.15 1.64 Taoyuan Community 380 1710 200 0.12 9 39 10.50 0.11 2.37 5.25 15120 1680.00 387.69 2.77 Jiangzhuang Village 285 1200 965 0.80 23 89 30.40 0.78 8.07 3.15 43776 1903.30 491.87 4.10 Niuzhuang Village 235 1060 150 0.14 3 11 6.50 0.14 1.28 4.33 9360 3120.00 850.91 7.74 Total 1645 7160 1709 0.24 126 579 130.51 0.22 7.66 7.64 187934 1491.54 324.58 1.80 Source: The data before LA was provided by the affected villages during the socioeconomic survey.

Table 2-5 Land Loss Rates at Households Level Land loss rate Total Sub- district Village/ community <10% 10%-20% 20%-30% 40%-50% 50%-60% HHs Population HHs Population HHs Population HHs Population HHs Population HHs Population Jiuzhou Road Xiangjiang Community 2 11 23 124 0 0 0 0 0 0 25 135 Xiaoxinzhuang Village 0 0 0 0 0 0 16 70 0 0 16 70 Daxinzhuang Village 0 0 25 118 25 117 0 0 0 0 50 235 Changjiang Taoyuan Community 0 0 0 0 9 39 0 0 0 0 9 39 Road Jiangzhuang Village 0 0 0 0 23 89 0 0 0 0 23 89 Niuzhuang Village 0 0 0 0 0 0 0 0 3 11 3 11 Total 2 11 48 242 57 245 16 70 3 11 126 579 Percent (%) 1.59 \ 38.10 \ 45.24 \ 12.70 \ 2.38 \ \ \

2.2.3 Income Losses 23. All the affected villages/communities are within the urban area, and their residents turned into nonagricultural status in household registration in 2010. See Table 2-6.

Table 2-6 Income Sources and Structure of AHs Sub- Village/ Per capita net Income sources and structure district community income (yuan) Agricultural income (food crops mainly) accounts for 5% of household Jiuzhou Xiangjiang income, business income for 40%, wage income for 40%, property 14000 Road Community income for 10%, and other income for 5% Agricultural income (food crops and vegetables mainly) accounts for Xiaoxinzhuang 15% of household income, business income for 30%, employment 16000 Village income for 40%, property income for 10%, and other income for 5% Agricultural income (food crops and stockbreeding mainly) accounts

Changjiang Road Road Changjiang Daxinzhuang for 15% of household income, business income for 20%, employment 15000 Village income for 60%, and other income for 5% Agricultural income (food crops mainly) accounts for 10% of Taoyuan household income, business income for 30%, employment income 14000 Community for 50%, property income for 10%. Agricultural income (food crops and vegatables mainly) accounts for Jiangzhuang 20% of household income, business income for 20%, employment 12000 Village income for 50%, and other income for 10%. Agricultural income (food crops mainly) accounts for 10% of Niuzhuang household income, business income for 10%, employment income 11000 Village for 70%, and other income for 10%

24. The income loss rates of most households affected by LA are less than 10%. Only 3 HHs with 11 persons will lose more than 10% of their income. See Table 2-7.

Table 2-7 Income Loss Rates at Households Level Family income loss rate Total Sub-district Village/ community < 10% 10- % 20% HHs Population HHs Population HHs Population Jiuzhou Road Xiangjiang Community 25 135 0 0 25 135

Changjiang Changjiang Xiaoxinzhuang Village 16 70 0 0 16 70

Road Road Daxinzhuang Village 50 235 0 0 50 235 Taoyuan Community 9 39 0 0 9 39 Jiangzhuang Village 23 89 0 0 23 89 Niuzhuang Village 0 0 3 11 3 11 Total 123 568 3 11 126 579 Percent (%) 97.62 \ 2.38 \ \ \ Note: since all the affected persons live in the urban or peri-urban area, land is only the minor part of their productive resources. Therefore, only the HHs who lose their family incomes more than 10% are identified as significantly affected.

2.3 Impacts of Permanent Occupation of State-owned Land

25. 292.39 mu of state-owned land will be occupied for the Subproject, mainly being existing canals and state-owned construction land, affecting no one. See Table 2-8.

Table 2-8 Summary of Permanently Occupied State-owned Land No. Component District Area (mu) Remarks

1 Tianlai Canal 100.25 Existing canals and state-owned 2 Mianfeng Canal 21.68 construction land 3 2# branch canal Qibin 47 4 3# branch canal 101.43 State-owned vacant land in the 5 4# branch canal 22.03 urban area, acquired 5 years ago Total 292.39

2.4 Impacts of Temporary Land Occupation

26. Temporary land occupation will be caused by the construction camps, roads and spoil ground mainly. A construction section will be divided for each canal, and a construction camp set up per section, with a floor area of 5 mu each and a total floor area of 25 mu. All spoil will be carried to the spoil ground in Xugou Village, with a floor area of 264 mu. The construction roads will occupy 27 mu of land. 316 mu of land will be occupied temporarily in total, affecting 40 households with 175 persons. Since the land occupied for the construction roads and spoil ground is not within the subproject area, it will be allocated to the components. See Table 2-9.

Table 2-9 Summary of Temporarily Occupied Land Temporarily occupied land (mu) Affected Component Irrigated Construction Waste Purpose Remarks Subtotal HHs Population land land land Tianlai Canal 11.4 5 111 127.4 14 62 The spoil Construction Mianfeng Canal 2.5 5 25 32.5 3 13 ground is camps, 2# branch canal 1.8 5 18 24.8 2 9 on roads and 3# branch canal 12.6 0 74 86.6 12 52 collective spoil ground 4# branch canal 8.7 0 36 44.7 9 39 wasteland. Total 37 15 264 316 40 175

2.5 Demolition of Residential Houses

27. Residential houses of 2,012.74 m2 on collective land will be demolished for the Subproject, all in masonry concrete structure, affecting 8 households with 44 persons in Xiangjiang Community. See Table 2-10.

Table 2-10 Summary of Demolished Residential Houses by ADB financed Project.

HD area (m2) Head of Masonry Component Sub-district Community Population masonry Masonry household concrete timber concrete Total storied bungalows bungalows house Wang xx 5 157.5 157.5 Chang xx 6 275.25 275.25 Jiuzhou Xiangjiang Chang xx 6 207.13 207.13 subtotal 17 639.88 639.88 Dong xx 6 75.52 244.62 320.14 3# branch Dong xx 6 101.53 225.98 327.51 canal Dong xx 5 308.26 308.26 Changjiang Daxingzhuang Dong xx 6 100.08 157.63 257.71 Liu xx 4 159.24 159.24 subtotal 27 100.08 493.92 778.86 1372.86 To tal 44 100.08 493.92 1418.74 2012.74

Percent (%) \ 4.97 24.54 70.49 100.00 28. Within the range of the Tianlai Canal, Mianfeng Canal and 2# branch canal, 94 households have been demolished or will be relocated for Dalaidian old city regeneration program as part of the urban village reconstruction project. The demolition of these 94 HHs is not a part of nor in anticipation of the ADB financed Project. Since this Subproject will use the land after the demolition of these 94 HHs, a DDR of their relocation and resettlement has been prepared to ensure there is no outstanding issues before the commencement of civil works. As of February 28, 2015, 84 households had entered into HD compensation agreements, and all their demolished houses had been accepted; 10 households had not entered into HD compensation agreements. See HD impacts in table 2-11 and details in appendix 1.

Table 2-11 HD Impacts by Urban Village Reconstruction Project financed by domestic fund Area (m2) Component Progress Masonry Masonry HHs Population Total concrete timber Demolished 4860.88 2551.51 7412.39 47 198 Tianlai Canal Remaining 315.65 281.06 596.71 5 30 Total 5176.53 2832.57 8009.1 52 228 Demolished 2193.15 1120.64 3313.79 27 125 Mianfeng Canal Remaining 335.56 308.56 644.12 5 25 Total 2528.71 1429.2 3957.91 32 150 2# branch canal Demolished 619.84 646.2 1266.04 10 49 Total 8325.08 4907.97 13233.05 94 427

2.6 Demolition of Non-residential Properties

29. Non-residential properties of 3,282.38 m2 on collective land will be demolished for the Subproject, including 2282.38 m2 (69.53%) in masonry concrete structure and 1,000 m2 (30.47%) masonry timber structure (see Figure 2-2), affecting 4 households with 23 persons. These properties include two mixed commercial and residential properties, and the two AHs are also affected by the demolition of residential houses. See Table 2-11. Table 2-12 Summary of Demolished Non-residential Properties Village/ community Village/ community Annu HD area (m2) Is Component Component Sub- district district Sub- Annu al norm Degre Land Busin Fami al profit Maso Maso al Busine Work e of use ess Remar Head ly pay (0,00 nry nry Subt opera ss force impac formal licens ks size (yua 0 concr timbe otal tion t ities e n) yuan ete r affect ) ed? Inactiv e, Chan Full mixed

Xiangjiang Community Community Xiangjiang g Resta 275. 275. 6 0 0 0 0 demol No No Yes comm urant 25 25 3# branch canal canal 3# branch Shi’a

Jiuzhou Road Road Jiuzhou ition ercial / n reside ntial Mixed Chan Waste Full comm g transfe 5000 207. 207. 6 2 15 0 demol Yes No No ercial / Xianj r 0 13 13 ition reside un station ntial Wan Full Yes Yes Leasin Brick 3120 g 6 13 25 1800 1800 demol Yes g factory 00 anxi ition collecti

ve and Subt 2282 2282 12 15 40 0

Ch otal .38 .38 4# branch canal canal 4# branch Daxinzhuang Daxinzhuang

angjiang Road angjiang Leasin

Village Village g Gao Full henner 2000 collecti Hong 5 5 20 0 1000 1000 demol Yes No Yes y 0 ve jun ition wastel and 2282 3282 Total 22 \ 60 1000 .38 .38

Figure 2-1 Current Situation of the Hennery Affected by the 4# Branch Canal

Figure 2-2 Current Situation of the Brick Factory Affected by the 3# Branch Canal

2.7 Affected Ground Attachments

30. The ground attachments affected by the Subproject mainly include scattered deciduous trees, greenhouses and tombs. See Table 2-12.

Table 2-13 Summary of Affected Ground Attachments Qty. 4# Item Unit Tianlai Mianfeng 2# branch 3# branch Total branch Canal Canal canal canal canal Sample house ㎡ 1000 0 0 78.86 0 1078.86 Fence ㎡ 0 0 0 58.4 0 58.4 Concrete ground ㎡ 0 0 0 1902.85 0 1902.85 biogas digester ㎡ 0 0 0 4.5 0 4.5 Water tank ㎡ 0 0 0 9 0 9 Dia. <5cm 39 0 0 18 0 57 Dia. 6-10cm 95 0 15 20 0 130 Scattered Dia. 11-15cm 210 10 20 52 0 292 deciduous Dia. 16-20cm / 270 20 20 80 111 501 trees Dia. 21-25cm 210 10 12 50 0 282 Dia. 26-30cm 95 0 5 20 0 120 Dia. >31cm 51 0 5 15 0 71 Trees mu 50 30 0 0 20.83 100.83 Greenhouses m2 5399 0 0 7000 738 13137 Tombs / 0 0 0 8 7 15 Telegraph poles mu 11 0 0 0 0 11 Pumped 40m deep 9 0 0 1 0 10 / wells 204m deep 0 0 0 1 0 1 Earth canal m 0 0 0 120 0 120

2.8 Affected Population

2.8.1 Summary 31. The Subproject will affect 175 households with 804 persons in total, in which 126 households with 579 persons will be affected by LA, 10 households with 55 persons by HD, in which one household with 5 persons will also be affected by LA, and 40 households with 175 persons by temporary land occupation. The Subproject will affect no minority population. See Table 2-13.

Table 2-14 Summary of Affected Population (by Village Group) Af fected by Affected by Sub- Affected by LA Affected by HD temporary land Total Village/ community both LA and HD district occupation HH Population HH Population HH Population HH Population HH Population Females Jiuzhou Xiangjiang Community 25 135 3 17 0 0 0 0 28 152 75 Road

Changjiang Changjiang Xiaoxinzhuang Village 16 70 0 0 0 0 0 0 16 70 34

Road Road Daxinzhuang Village 50 235 7 38 1 5 4 18 60 286 141 Taoyuan Community 9 39 0 0 0 0 0 0 9 39 19 Jiangzhuang Village 23 89 0 0 0 0 3 14 26 103 51 Niuzhuang Village 3 11 0 0 0 0 0 0 3 11 5 Xugou Village 0 0 0 0 0 0 18 78 18 78 38 Jinshan Yangxiaotun Village 0 0 0 0 0 0 15 65 15 65 32 Total 126 579 10 55 1 5 40 175 175 804 395

Table 2-15 Summary of Affected Population (by Component) Affected by both Affected by temporary Affected by LA Affected by HD Total Component LA and HD land occupation HH Population HH Population HH Population HH Population HH Population Females Tianlai Canal 47 203 0 0 0 0 14 62 61 265 131 Mianfeng Canal 0 0 0 0 0 0 3 13 3 13 6 2# branch canal 0 0 0 0 0 0 2 9 2 9 4 3# branch canal 57 263 9 50 0 0 12 52 78 365 179 4# branch canal 22 113 1 5 1 5 9 39 31 152 75 Total 126 579 10 55 1 5 40 175 175 804 395

2.8.2 Affected Vulnerable Groups 32. According to the preliminary survey, 6 MLS households with 9 persons affected by the Subproject fall into vulnerable groups. Affected vulnerable population will be further identified during the DMS. See Table 2-15.

Table 2-16 Summary of Affected Vulnerable Groups Type Vulnerable Location Labor Gender Type of Component No. Group Population of HH population Sub-district Village force Male Female impact Non- agricultural agricultural Non- 1 MLS 3 Xiaoxinzhuang 3 1 1 2 LA 3# branch 2 MLS 4 4 1 1 3 LA canal Jiangzhuang 3 MLS 2 Changjiang 2 0 0 2 LA 4 MLS 3 Road 3 1 1 2 LA 4# branch 5 MLS 4 Daxinzhuang 4 1 2 2 LA canal 6 MLS 3 3 1 2 1 LA Total 19 19 5 7 12

2.8.3 Affected Minority Population 33. According to the preliminary survey, the Subproject will affect no minority population. Affected minority population will be further identified during the DMS.

2.8.4 Gender Impacts 34. In the affected population in Jiuzhou Road and Changjiang Road Sub-districts, 395 females account for 49.13%, who will be affected by LAR. The gender analysis for APs in details has been prepared in Section C of Chapter III. Females are equally consulted in the project preparation stage. Their concerns are included in this RP, see details of the development measures for Women’s in the Section E of Chapter VI. And a Gender Action Plan (GAP) has been designed for the Project to ensure gender mainstreaming including the ethnic minority groups and AHs. Females affected by LAR will be given the priority to participate in all of the actions developed in GAP.

3 Socioeconomic Profile

3.1 Socioeconomic Profile of the Subproject Area

3.1.1 Hebi City and Qibin District Hebi City 35. Hebi is located in northern Henan Province, in the transitional zone between the east piedmont of the Taihang Mountains and the North China Plains, between east longitude 113’59”-114’45” and north latitude 35’26”-36’02”, with a land area of 2,182 km2, including an urban area of 513 km2. Its landforms include mountain, hill, plain and lowland. The city features a warm climate, distinct seasons, ample sunshine and a long frost-free period. The city governs two counties, 3 districts and a development zone, 24 sub-districts, 6 Xiangs and 14 towns. The city abounds with natural resources and over 30 proven minerals, including goal, limestone, dolomite, quartz sandstone and refractory clay.

36. At the end of 2013, the city had a population of 1.6117 million and a resident population of 1.609 million. In 2013, the city’s GDP was 62.212 billion yuan, a year-on-year growth of 12.5%, in which the added value of primary industries was 6.104 billion yuan, up 4.0%; that of secondary industries 44.626 billion yuan, up 14.7%; and that of tertiary industries 11.482 billion yuan, up 8.0%. The ratio of primary, secondary and tertiary industries was 9.8:71.7:18.5. In 2013, the per capita disposable income of urban residents was 21,228 yuan, a year-on-year growth of 10.1%, and the per capita net income of rural residents 10,608 yuan, a year-on-year growth of 13.0%. See Table 3-1.

Table 3-1 Socioeconomic Profile of Hebi City (2013) No. Item Unit Hebi City 1 Land area km2 2182 2 Cultivated area 0,000 mu 253.87 3 Population 0,000 161.17 4 Agricultural population 0,000 76.07 5 Nonagricultural population 0,000 85.10 6 GDP 00 billion yuan 622.12 7 Primary industries 0,00 0 yuan 61.04 8 Secondary industries 0,000 yuan 446.26 9 Tertiary industries 0,000 yuan 114.82 10 Per capita GDP yuan 38600 11 Per capita disposable income of urban residents yuan 21228 12 Per capita net income of rural residents yuan 10608 Source: National Economic and Social Development Statistical Bulletin 2013 of Hebi City

Qibin District 37. Qibin District is the political, economic and cultural center of Hebi City, with a land area of 335 km2, an urban planning area of 65 km2 and a built-up area of 34 km2. The district governs two Xiangs, two towns, 4 sub-districts, 101 villages and 35 communities. The district is known for its beautiful living environment and landscaping.

38. In 2013, the district’s GDP was 11.447 billion yuan, up 11.9%, and the ratio of primary, secondary and tertiary industries was 5.6:56.0:38.4, in which the added value of primary industries was 645 million yuan, up 3.7%; that of secondary industries 6.41 billion yuan, up 15.1%; and that of tertiary industries 4.39 billion yuan, up 8.0%. At the end of 2013, the district’s population was 287,800. In 2013, the per capita net income of rural residents was 9,827 yuan, a year-on-year

growth of 12.9%, and the per capita disposable income of urban residents 22,798 yuan, a year-on-year growth of 10.0%.

Table 3-2 Socioeconomic Profile of Qibin District (2013) No. Item Unit Qibin District 1 Land area km2 335 2 Cultivated area 0,000 mu 25.56 3 Population 0,000 28.78 4 Agricultural population 0,000 8.5 5 Nonagricultural population 0,000 20.28 6 GDP 00 billion yuan 114.47 7 Primary industries 0,000 yuan 6.45 8 Secondary industries 0,000 yuan 64.10 9 Tertiary industries 0,000 yuan 43.90 10 Per capita GDP yuan 40357 11 Per capita disposable income of urban residents yuan 22798 12 Per capita net income of rural residents yuan 9827

3.1.2 Affected Sub-districts 39. The acquisition of collective land involves Jiuzhou Road and Changjiang Road Sub-districts. 40. Jiuzhou Road Sub-district is located in Bihe New District, with a land area of 16 km2 and a population of 120,000, being the administrative and cultural center of Bihe City, governing 6 communities converted from villages and 11 urban communities.

41. Changjiang Road Sub-district is located in southern Qibin District, with a land area of 10.8 km2 and a population of 32,000, being the traffic, financial, business and educational center of Bihe New Town, governing 6 communities converted from villages, 4 urban communities and a village.

3.1.3 Affected Villages/Communities 42. The acquisition of collective land involves Xiangjiang Community, Jiuzhou Road Sub-district; and Xiaoxinzhuang, Daxinzhuang, Jiangzhuang and Niuzhuang Villages, and Taoyuan Community, Changjiang Road Sub-district.

43. Xiangjiang Community merged from two natural villages in 2010. Xiaoxinzhuang, Daxinzhuang, Jiangzhuang and Niuzhuang Villages, and Taoyuan Community were converted from villages to communities, and their residents were converted into nonagricultural status in household registration in 2010. Taoyuan Village was renamed as Taoyuan Community in 2013. These 6 villages/communities still have some collective cultivated land, used to grow food crops mainly. See Table 3-3.

Table 3-3 Socioeconomic Profile of the Affected Villages Average Per capita Per capita net Per capita Sub- Cultivated Village/ community HHs Population population cultivate income from disposable district area (mu) per HH area (mu) cultivation (yuan) income (yuan) Jiuzhou Xiangjiang Community 250 1070 210 4.28 0.20 282.62 14000 Road

Changjiang Changjiang Xiaoxinzhuang Village 215 920 80 4.28 0.09 125.22 16000

Road Road Daxinzhuang Village 280 1200 104 4.29 0.09 124.80 15000 Taoyuan Community 380 1710 200 4.50 0.12 168.42 14000 Jiangzhuang Village 285 1200 965 4.21 0.80 1158.00 12000 Niuzhuang Village 235 1060 150 4.51 0.14 203.77 11000

3.2 B. Socioeconomic Profile of the Affected Population

44. The task force conducted a questionnaire survey on 40 households affected by LA in the 6 villages/communities in two sub-districts affected by LA by stratified sampling (sampling rate: 31.7%), and on 8 households affected by HD in February 2015.

3.2.1 Households Affected by LA 45. 126 households with 579 persons will be affected by LA, including 25 households with 135 persons in Jiuzhou Road Sub-district and 101 households with 444 persons in Changjiang Road Sub-district, in which 40 households with 171 persons were sampled, including 10 households with 43 persons in Jiuzhou Road Sub-district, with a sampling rate of 40%; and 30 households with 128 persons in Changjiang Road Sub-district, with a sampling rate of 29.7%.

1) Ethnic and gender composition 46. The 40 sample households have 171 persons, 103 laborers and 84 women (49.12%), with an average population of 4.28 per household. All samples are Han people.

2) Age structure 47. Among the 171 samples, 29 are aged 16 years or below, accounting for 16.96%; 69 aged 17-39 years, accounting for 40.35%; 50 aged 40-59 years, accounting for 29.24%; and 23 aged 60 years or above, accounting for 13.35%. See Table 3-4.

3) Educational level 48. Among the 142 adult samples, 28 have received primary school or below education, accounting for 19.72%; 58 have received junior high school education, accounting for 40.85%; 37 have received senior high or secondary technical school education, accounting for 26.06%; and 19 have received junior college education, accounting for 13.38%. See Table 3-4.

Table 3-4 Demographics of the Households Affected by LA Male Female Total Item N Percent (%) N Percent (%) N Percent (%) Age ≤ 16 years 16 18.39 13 15.48 29 16.96 17 -39 years 36 41.38 33 39.29 69 40.35 40 -59 years 25 28.74 25 29.76 50 29.24 ≥ 60 years 10 11.49 13 15.48 23 13.45 Subtotal 87 100.00 84 100.00 171 100.00 Educational level (adults) Primary school or below 11 15.49 17 23.94 28 19.72 Junior high school 31 43.66 27 38.03 58 40.85 Senior high school / 20 28.17 17 23.94 37 26.06 secondary technical school Junior college or above 9 12.68 10 14.08 19 13.38 Subtotal 71 100.00 71 100.00 142 100.00

4) Land resources 49. The 40 sample households have a total contracted cultivated area of 46.41 mu, 1.16 mu per household or 0.27 mu per capita. Their cultivated land is irrigated land mainly, and the main crops are wheat, corn and vegetables, with annual net income of about 1,400 yuan/mu.

5) Household properties 50. An average sample household has 3.67 fixed telephones/mobile phones, 1.6 color TVs, 1.17

PCs, 2.07 fans, 0.97 refrigerator, 1.53 air-conditioners, 0.93 washing machine, 0.63 bicycle, 1.47 electric bicycles/motorcycles, and 0.42 car, indicating an above-average overall living standard.

6) Household income and expenditure

The per capita annual income of the 40 sample households is 18,027.32 yuan, per annual expenditure 10,133.9 yuan, and per capita net income 15,206.95 yuan. See Table 3-5Table 3-5 Household Income and Expenditure 51. .

Table 3-5 Household Income and Expenditure Average per Per capita Percent Item household (yuan) (yuan) (%) Agriculture income 4287.83 1003 5.56 Business income 33217.65 7770.21 43.10 Household Wage income 32455.37 7591.9 42.11 income Property income 4954.34 1158.91 6.43 Other income 2151.61 503.3 2.79 Subtotal (A) 77 066.8 18027.32 100.00 Agricultural productive expenditure (B) 2626.56 614.4 6.07 Boniness operation expenditure (C) 9430.52 2205.97 21.81 Nonproductive expenditure (D) 21211.44 4961.74 49.06 Daily expenses 2465.12 24.3 7 24.37 Household in Educational expenses 1996.06 19.74 19.74 expenditure which Medical expenses 500.56 4.95 4.95 Social security expenses (E) 2908.54 680.36 6.73 Other expenses (F) 7059.86 1651.43 16.33 Subtotal (B+C+D+E+F) 43236.92 10113.9 100.00 Per capita net income (A-B-C) 15206.95

3.2.2 Households Affected by HD 52. The task force conducted a questionnaire survey on the 8 households affected by HD. The 8 households have 44 persons in total, including 23 males and 21 females, all being Han people.

1) Age structure 53. Among the 44 affected persons, 6 are aged 16 years or below, accounting for 13.64%; 18 aged 17-39 years, accounting for 40.91%; 10 aged 40-59 years, accounting for 22.73%; and 10 aged 60 years or above, accounting for 22.73%. See Table 3-6.

2) Educational level 54. Among the 38 adult samples, 10 have received primary school or below education, accounting for 26.32%; 13 have received junior high school education, accounting for 34.21%; 8 have received senior high or secondary technical school education, accounting for 21.05%; and 7 have received junior college education, accounting for 18.42%. See Table 3-6.

Table 3-6 Demographics of the Households Affected by HD Male Female Total Item N Percent (%) N N Percent (%) N Age ≤16 years 3 13.04 3 14.29 6 13.64 17 -39 years 10 44.44 8 38.10 18 40.91 40-59 years 5 22.22 5 23.81 10 22.73

≥60 years 5 22.22 5 23.81 10 22.73 Subtotal 23 100.00 21 100.00 44 100.00 Educational level (adults)

Primary school or below 5 25.00 5 27.78 10 26.32 Junior high school 8 37.50 5 27.78 13 34.21 Senior high school / secondary technical school 5 25.00 3 16.67 8 21.05

Junior college or above 2 12.50 5 27.78 7 18.42 Subtotal 20 100.00 18 100.00 38 100.00

3) Residential conditions 55. The houses of the 8 sample households are all in masonry concrete structure, with a total size of 2012.74 m2, per capita sizes of 45.7 m2, and ages of 6-20 years. The main fuels are electricity and natural gas. See Table 3-7.

Table 3-7 Living Conditions of the Households Affected by HD Structure Masonry timber Masonry concrete Masonry concrete House Size (m2) 100.08 493.92 1418.74 information Per capita (m2) 2.27 11.23 32.24 Total per capital (m2) 45.74 Average age (year) 9 Fuel Type Electricity, natural gas Indoor cable TV 100% Lighting Yes Supply mode Tap water Drinking water Percent (%) 100

4) Living environment 56. The 8 households live in Xiangjiang Community, Jiuzhou Road Sub-district in the urban center, and enjoy great convenience from sophisticated infrastructure. See Table 3-8.

Table 3-8 Living Environment of the Households Affected by HD (Km) Living environment Average distance From the nearest hospital (Km) 1 From the nearest mall (Km) 0.5 From the nearest kindergarten (Km) 1 From the nearest primary school (Km) 1.5 From the nearest high school (Km) 3 From the nearest bus stop (Km) 0.5 From the city’s central coach station (Km) 7 From the railway station (Km) 6

3.2.3 Expected Resettlement Modes 1) Households affected by LA 57. All the 40 sample households prefer cash compensation and social security. The local coverage of social endowment insurance for urban and rural residents is over 95%, however they can increase their contribution after obtain land compensation inoder to receive higher pensions. Other resettlement modes include: a) investing LA compensation in catering, merchandising, transport and other tertiary operations, chosen by 25 households, accounting for 62.5%; and b) attending training courses organized by the labor and social security authority, chosen by 35 households, accounting for 87.5%. See Table 3-9Error! Reference source not found..

Table 3-9 Expected Resettlement Modes of the Households Affected by LA Expected resettlement mode (multiple choices allowed) Sub-district HHs Cash Social Transport and other Skills training compensation Security tertiary operations Jiuzhou Road 10 10 10 10 10 Changjiang Road 30 30 30 15 25 Total 40 40 40 25 35 Percent 100% 100% 62.5% 87.5%

2) Households affected by HD 58. All the 8 households affected by HD have chosen the mode of cash compensation and centralized resettlement houses.

3.3 Gender Analysis

59. The Project is categorized as Effective Gender Mainstreaming (EGM). A gender action plan (GAP) has been prepared to ensure gender mainstreaming during project implementation. Gender is a cross-cutting theme in human development. ADB’s Policy on Gender and Development adopt mainstreaming as a key strategy in promoting gender equity. The government of PRC attaches great importance to gender equality and women’s development, and has made equality between men and women a basic national policy. This includes women’s development as part of the Government’s general plans for national economic and social development, judicial, administrative and media measures in order to guarantee that women enjoy equal rights in political, economic and cultural spheres, as well as in social and family life. It consistently promotes the all-around development of women.

60. Table III-10 presents a brief gender assessment in the project areas by specific indicator such as the legal rights of women, social status of women, land ownership, gender roles, and others. Overall, the women in the project areas enjoy a good status, and there is no restriction on gender role; though women seldom participate in the decision-making of public affairs of the village collective, they can express their views in many ways (e.g., through male members of their families). Women have the same title as men.

61. As regards land ownership, just like in other parts of China, the women in the project areas or when a daughter is married, her land will remain in her father’s family and she will share the land owned by her husband’s family since the household contract responsibility system was put into practice in 1982. However, if a second round of land contracting has been carried out at the affected village (around 1999), this situation has been corrected. If land acquisition, house demolition or resettlement is involved, compensation is paid at the household level, but within each HH, women has equal rights.

62. Table III-10 is divided into 2 parts (A. Gender assessment of women with regards to land and property and IR impacts in the project areas and B presents the gender assessment of women during resettlement which includes data on risks, concern, impacts and mitigation measures (see Table III-9.B).

63. At the design stage, particular attention will be paid to women’s needs so that they benefit more from the Project, such as public facilities and services, livelihood options/restoration, skills training and education, and resettlement site selection and home design.

Table 3-10 Gender Analysis Part A—Gender analysis of rural women in the subproject area 1. Legal rights of women According to laws of the PRC, women have equal legal rights with men, though some women are not fully aware of this. 2. Social status of women Local women have relatively good social status. All key matters of a family are determined by the couple through discussion. Men are the backbone of families, and attend the important village meetings. However, women can influence men when they make decisions at meetings. 3. Title to land and properties Women have the same title as men. Like other parts of China, in the subproject area, when a daughter is married, her land will remain in her mother’s family and she can only share the land owned by her husband’s family since the household contract responsibility system was implemented in 1982. If LA, HD or resettlement is involved, women will have equal rights to compensation. 4. Right to collective Women have equal rights. properties 5. Living and gender role There is no restriction on gender role. However, women do housework and appropriate farm work mainly in Chinese rural areas, while men mostly do farm work or work outside. 6. Contribution to household Women’s income is from farming and household sideline operations mainly, accounting for income about 50% of household income. 7. Family status Women have an equal voice in decision-making; when men are away for work, women make decisions themselves in many aspects. 8. Educational level Boys and girls enjoy equal opportunities in receiving education, and as long as children study hard, their parents would do their best to support their school education. 9. Health Women’s health condition is quite good and there is no significant difference in nutrition level compared to men; however, medical expenses are rising and have become a significant burden for some households, and women may suffer more. 10. Village and government Women are represented in all village committees. In addition, women have a good informal agencies network in the village and the village group. Women may participate in the election of the village committee, and have the right to elect and be elected. 11. Overall evaluation and key Women enjoy a good status in the subproject area, and there is no restriction on gender risks role. B —Gender analysis of women during resettlement Gender issue Concern/risk Impact of the Subproject Mitigation measures 1. Land, Women are deprived Women may be more seriously 1. Men and women have equal rights to properties and of land or properties impacted by LAR than men, due to compensation for land acquisition, house right to or have no right to females share more burden in demolition and resettlement. compensation compensation. agriculture activities and housework. 2. Cash compensation or improvement of the quality of remaining land, and crop restructuring. 2. Production Women are affected Most AHs will lose part of land only, so 1.Women will receive LA compensation and income even more seriously, they will lose part of income. fees; restoration after and receive less Compensation fees will be used at the 2. In addition to cash compensation, the land acquisition assistance. AHs’ discretion. Only seriously females will be assisted in restoring affected households have to change income through auxiliary measures (priority their income sources. in employment during construction, skills After LA, women may face more training and subsequent support, etc.) 3. During construction and M&O stage of challenges to get employed or find the Project, at least 30% of the unskilled new opportunities of income creation. The loss of agriculture incomes may labor force are held by women, and no less than 30% of permanent jobs in operations affect women’s status and discourse stage are occupied by women. power in their family. 2. House Women have no Women have title to houses, and 1. Women have title to newly built houses. demolition and right to make house reconstruction is determined 2. At the proposal of village committee or reconstruction decisions or use jointly by all family members, so villager group, women support groups will compensation fees. women can participate in housing site be established to help each other during

selection, house construction and relocation and Housing decoration. transitional housing arrangement, etc. 3. After HD and resettlement, the AHs will However, house relocation and have better residential conditions, which resettlement may increase women’s will reduce local women’s labor burden labor strength, work time and mental and improve their quality of life. pressure in family. 3. Increase of Women have a The Project will not lead to gender Land improvement and sufficient gender heavier burden or inequalities. For most households, compensation will help women change the inequalities fewer opportunities. resettlement impacts are not serious. crop structure (e.g., cultivating more cash However, women will be more crops), which will increase their income. negatively impacted by LAR than Provide skills training and employment opportunities for females. men, due to females share more Monitoring burden in agriculture activities and housework. 4. Social The social network is The displaced households will be No impact network system damaged. resettled in their original group or village, then the Project will not affect the social network seriously. 5. Impact on Serious health or The Subproject will not affect the Providing assistance together with the health / increase social problems due villages seriously, but some seriously Women's Federation and Civil Affairs of social to resettlement affected households and vulnerable department problems (violence, AIDS groups will be faced with difficulties. Monitoring propagation, etc.)

4 Legal Framework and Policies

4.1 Laws, Regulations and Policies Applicable to Resettlement

64. This RP has been prepared in accordance with the applicable state, provincial and local policies and regulations, and ADB’s Safeguard Policy Statement (2009). The compensation rates and restoration measures specified in this RP will be followed during resettlement. After the DMS, this RP will be updated accordingly, and submitted to ADB for review and approval before the commencement of LA and HD in 2016.

65. The resettlement policies of the Subproject have been developed in accordance with the laws and regulations of the PRC, and ADB’s policies, including: 1. ADB policies  Safeguard Policy Statement, June 2009  Safeguard Requirement 2: Involuntary Resettlement 2. Laws, regulations and policies of the PRC  Land Administration Law of the PRC (amended on August 28, 2004)  Rural Land Contracting Law of the PRC, effective from March 1, 2003  Regulations on the Implementation of the Land Administration Law of the PRC (Decree No.256 of the State Council), December 27, 1998  Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28)  Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (MLR [2004] No.238)  Notice of the General Office of the State Council on Doing a Good Job in the Employment Training and Social Security of Land-expropriated Farmers (SCO [2006] No.29)  Notice of the Ministry of Labor and Social Security, and the Ministry of Land and Resources on Doing Well in the Social Security of Land-expropriated Farmers Practically (MLSS [2007] No.14)  Real Right Law of the PRC, effective from October 1, 2007  Interim Regulations on Farmland Occupation Tax of the PRC, effective from January 1, 2008  Regulations of the PRC on the Disclosure of Government Information, effective from May 1, 2008  Urgent Notice of the General Office of the State Council on Further Regulating the Management of Land Acquisition and House Demolition, and Protecting People’s Lawful Rights and Interests Practically (SCO [2010] No.15)  Notice of the Ministry of Land and Resources on Further Improving the Management of Land Acquisition, June 26, 2010  Urgent Notice of the General Office of the Ministry of Land and Resources on Conducting Strict Management to Prevent Illegal Land Acquisition (MLR [2013] No.28)  Notice of the General Office of the Ministry of Land and Resources on Doing a Better Job in Disclosing City- and County-level Land Acquisition Information (MLRO [2014] No.29) 3. Regulations and policies of Henan Province  Notice of the General Office of the Henan Provincial Government on Strengthening Land Control and Rigidly Enforcing Land Administration (HPGO [2007] No.33)  Opinions of the Henan Provincial Labor and Social Security Department, Land and Resources Department, and Finance Department on Doing Well in the Employment Training and Social Security of Land-expropriated Farmers (HPLSS [2008] No.19)  Opinions of the Henan Provincial Government on Trials on Social Endowment Insurance for Urban and Rural Residents (HPG [2011] No.58)  Notice of the Henan Provincial Labor and Social Security Department, and Finance Department on Further Strengthening the Management of Special Employment Funds (YCS [2011] No.293)  Notice of the Henan Provincial Labor and Social Security Department, and Finance Department on Issuing the Administrative Measures for Employment and Business Startup

of Henan Province (YRSJY [2012] No.25)  Notice of the Henan Provincial Government on Adjusting Location-based Composite Land Prices for Land Acquisition of Henan Province (HPG [2013] No.11)  Notice of the General Office of the Henan Provincial Government on Issuing the Special Corrective Plan for Land Acquisition and House Demolition (HMGO [2014] No.110) 4. Regulations and policies of Hebi City and Qibin District  Notice of the Hebi Municipal Government on Adjusting Compensation Rates for Ground Attachments and Young Crops on Land Acquired for State Construction (HMG [2012] No.11)  Notice of the Hebi Municipal Government on Issuing the Measures for Securing Low-rent Housing of Hebi City (HMG [2008] No.33)  Notice of the Hebi Municipal Government on Issuing the Measures for the Implementation of Basic Endowment Insurance for Urban and Rural Residents of Hebi City (HMG [2014] No.34)  Notice of the Hebi Municipal Government on Issuing the Measures for the Implementation of Medical Assistance for Urban and Rural Residents with Difficulty of Hebi City (HMG [2011] No.43)  Notice of the Qibin District Government on Issuing the Administrative Measures for Compensation for Demolished Ground Attachments on Collective Land for State Construction of Qibin District (QDG [2013] No.3)

4.2 Abstract of the ADB Policy

 Involuntary resettlement 66. ADB’s policy on involuntary resettlement has three key elements: (1) compensation for lost properties, livelihoods and income; (2) assistance in resettlement, including the provision of a resettlement site, and appropriate facilities and services; and (3) assistance for restoration, as a minimum, to the standard of living in the absence of the project, taking into account the following basic principles: 1. Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning through a survey and/or census of displaced persons, including a gender analysis, specifically related to resettlement impacts and risks. 2. Carry out meaningful consultations with affected persons, host communities, and concerned nongovernmental organizations. Inform all displaced persons of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs. Pay particular attention to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensure their participation in consultations. Establish a grievance redress mechanism to receive and facilitate resolution of the affected persons’ concerns. Support the social and cultural institutions of displaced persons and their host population. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase. 3. Improve or at least restore, the livelihoods of all displaced persons through (i) land-based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible. 4. Provide physically and economically displaced persons with needed assistance, including the following: (i) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and

23 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 nonland assets. 8. Prepare a resettlement plan elaborating on displaced persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. 9. Disclose a draft resettlement plan, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders. 10. Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of project’s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation. 11. Pay compensation and provide other resettlement entitlements before physical or economic 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.

67. See Table 4-1.

Table 4-1 Principles for Resettlement Principles 1 Involuntary resettlement should be avoided where feasible. The APs are granted compensation and rights that can at least maintain or even improve their 2 livelihoods in the absence of the project. 3 The APs are given compensation and assistance in resettlement whether legal title is available or not. If the land available to everyone is insufficient to maintain his/her livelihood, replacement in cash or in 4 kind and other income-generating activities are provided for the lost land. The APs fully understand their entitlements, the method and standard of compensation, the livelihood 5 and income restoration plan, and the project schedule, and participate in the implementation of the RP. No forced relocation or economic transformation occurs, until: 1) Compensation at full replacement cost has been paid to each AP; 2) The APs have received the other rights specified in the RP; and 3) 6 Integrated income and livelihood restoration programs have been developed, and appropriate financial support is available to increase or at least restore their income and living standard. Vulnerable groups are provided special assistance or treatment so that they lead a better life, and all 7 APs should have an opportunity to benefit from the project. At least two members of each AH receive skills training, including at least one woman. 8 The resettlement expenses are sufficient to cover all affected aspects. The executing agency and an independent agency / third party should monitor the compensation, 9 relocation and resettlement operations.

 Gender and development 68. ADB’s gender and development policy is a critical mainstreaming strategy in promoting gender equality, and includes the following key points: 1) Gender sensitivity: Particular attention should be paid to women’s needs and expectations in consideration of impacts of the ADB-financed project on men and women;

2) Gender analysis: A systematic analysis of the project’s impacts on men and women should be made to learn their economic and social connections; 3) Gender planning: A special strategy that offers equal opportunities to men and women should be developed; 4) Mainstreaming: ADB considers the gender issue in all aspects of the project, and encourages women to participate in decision-making in the development process actively.

4.3 Key Provisions of PRC Laws, Regulations and Policies

4.3.1 Abstract of applicable state laws and regulations 1. Provisions on land ownership and use right 69. The People's Republic of China resorts to a socialist public ownership i.e. an ownership by the whole people and ownerships by collectives, of land. 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 farmers including land for building houses, land and hills allowed to be retained by farmers. (Articles 2 and 8 of the Land Administration Law of the PRC)

70. To meet the needs of public interests, collectively-owned lands, premises owned by entities and individuals or other real properties may be expropriated in accordance with the power scope and procedures provided by laws. As for the expropriation of collectively-owned land, it is necessary to, according to law and in full amount, pay such fees as land compensation fees, placement subsidies, compensations for the above-ground fixtures of the lands and seedlings, arrange for social security fees for the farmers whose land is expropriated, secure their livelihood and safeguard their legitimate rights and interests. As for the expropriation of the premises owned by entities and individuals or other real properties, it is necessary to make compensation for demolishment and relocation according to law and safeguard the legitimate rights and interests of the owners of the real properties expropriated; as for the expropriation of the individuals' residential houses, it is necessary to safeguard the housing conditions of the owners of the houses expropriated. (Article 42 of the Real Right Law of the PRC)

71. Men and women shall have the equal rights to contract the rural land. The women’s lawful rights to land contract shall be protected. No organizations or individuals shall exploit or infringe upon the right to operate contracted land that women shall enjoy. Within the duration of the contract, the party that lets the contract shall not withdraw or readjust the contracted land. (Articles 6, 26 and 27 of the Rural Land Contracting Law of the PRC)

2. Provisions on LA compensation rates 72. 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 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. (Article 47 of the Land Administration Law of the PRC)

73. County-level and above local governments shall take practical measures so that the standard of living of farmers affected by land acquisition is not reduced by land acquisition. Land compensation, resettlement subsidy and compensation for ground annexes and crops shall be paid in full and timely pursuant to law. If the land compensation and resettlement subsidy pursuant to the prevailing laws and regulations are insufficient to maintain the former standard of living of the farmers affected by land acquisition or to pay the social security expenses of farmers who lose all land due to land acquisition, the governments of provinces, autonomous regions and municipalities directly under the Central Government shall approve an increased resettlement subsidy. If the sum of the land compensation and the resettlement subsidy attains the statutory upper limit and is still insufficient to maintain the former standard of living of the farmers affected by land acquisition, local governments may pay a subsidy from the income from compensated use of state land. The governments of provinces, autonomous regions and municipalities directly under the Central Government shall fix and publish the uniform annual output value standards or integrated land prices for land acquisition of all cities and counties, so that the same price applies to the same kind of land. For key construction projects of the state, land acquisition expenses must be listed in the budgetary estimate in full. (Article 12 of the Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration)

3. Provisions on the resettlement of APs by LA 74. County-level and above local governments shall take specific measures to guarantee long-term livelihoods of farmers affected by land acquisition. For projects with a stable income, farmers may become a shareholder using the right to use of land used for construction approved pursuant to law. Within the urban planning area, local governments shall bring farmers who lose all land due to land acquisition into the urban employment system, and establish a social security system; out of the urban planning area, in acquiring land collectively owned by farmers, local governments shall reserve necessary arable land or arrange appropriate jobs for farmers affected by land acquisition within the same administrative area; farmers without land who do not have the basic living and production conditions shall be subject to non-local resettlement. (Article 13 of the Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration)

75. APs may choose the following modes of resettlement: 1) Agricultural resettlement: When rural collective land out of urban planning areas is acquired, land-expropriated farmers shall be first provided with necessary arable land using mobile collective land, contracted land turned over by contractors and arable land arising from land development so that they continue to pursue agricultural production; 2) Reemployment: Conditions shall be created actively to provide free labor skills training to land-expropriated farmers and place them to corresponding jobs. Under equal conditions, land users shall first employ land-expropriated farmers. When rural collective land within urban planning areas is acquired, land-expropriated farmers shall be included in the urban employment system and a social security system established for them; 3) Dividend distribution: When any land with long-term stable income is to be used for a project, the affected rural collective economic organization may become a project shareholder with compensation fees for land acquisition or rights to use construction land in consultation with the land user. The rural collective economic organization and rural households will receive dividends as agreed; and 4) Non-local resettlement: If basic production and living conditions are not available locally to land-expropriated farmers, non-local resettlement may be practiced under the leadership of the government in consultation with the rural collective economic organization and rural households. (Article 2 of the Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition)

76. APs’ production and livelihoods shall be secured in multiple resettlement modes, mainly including 1) Agricultural resettlement: In rural areas with increased farmland through land

26 consolidation or much reserved collective land, such land shall be allocated to APs upon land acquisition in order to maintain their basic production conditions and income resources; 2) Resettlement with reserved land: This mode may be applied to urban construction land acquired within the master land utilization plan; reserved land shall be developed in compliance with the urban construction plan and utilized scientifically under strict government regulation; and 3) Social security funds for APs shall be made available under the unified leadership of local governments. (Notice of the Ministry of Land and Resources on Further Improving the Management of Land Acquisition, June 26, 2010)

4. Provisions on LA management 77. Uniform AAOV rates and location-based composite land prices shall be implemented strictly in all aspects, and be adjusted every two or three years based on local economic development and per capita income level.

78. Compensation fees for land acquisition shall be made available timely and fully. All localities shall explore and improve depositing systems for compensation fees for land acquisition. (Notice of the Ministry of Land and Resources on Further Improving the Management of Land Acquisition, June 26, 2010)

5. Provisions on LA information disclosure 79. During land acquisition, the ownership of collective land of farmers and the right to contracted management of farmers’ land shall be maintained. Before land acquisition is submitted for approval pursuant to law, the use, location, compensation standard and resettlement mode of the land to be acquired shall be notified to farmers affected by land acquisition; the survey results of the present situation of the land to be acquired shall be confirmed by rural collective economic organizations and farmers to be affected by land acquisition; if necessary, the land and resources authorities shall organize a hearing in accordance with the applicable provisions. The materials for notification to and confirmation by the farmers affected by land acquisition shall be taken as requisite materials for approval for land acquisition. Accelerate the establishment and improvement of the coordination and judgment mechanism for disputes over compensation and resettlement for land acquisition to protect the lawful rights and interests of farmers affected by land acquisition and land users. Approved matters of land acquisition shall be disclosed unless in special cases. (Article 14 of the Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration)

80. An administrative organ shall disclose government information in a timely and accurate manner. Where any administrative organ finds out any false or incomplete information that has affected or may affect social stability or has disturbed or may disturb social management order, it shall disclose the corresponding accurate government information within its scope of duties to clarify. (Article 6 of the Regulations of the PRC on the Disclosure of Government Information)

81. An administrative organ shall disclose the government information that shall be voluntarily disclosed through government bulletins, government websites, news releases, newspapers and periodicals, broadcasting, television or any other means easy for the general public to access. (Article 15 of the Regulations of the PRC on the Disclosure of Government Information)

82. The people’s governments at various levels shall set up a place for consulting government information at national archives and public libraries and equip with corresponding facilities and equipment to provide convenience for citizens, legal persons or other organizations to access government information. An administrative organ may, in light of the actual needs, set up such places as public consulting room, place for demanding materials, information board and electronic

27 information screen for government information disclosure. An administrative organ shall provide the government information voluntarily disclosed by it to national archives and public libraries in a timely manner. (Article 16 of the Regulations of the PRC on the Disclosure of Government Information)

83. Municipal and county governments shall strengthen the active disclosure of land acquisition information by means of official website, newspaper, broadcast, television, micro-blogging, etc. Citizens, legal persons and other organizations may apply for information disclosure with valid certificates for their special purposes. Land acquisition information to be disclosed actively shall be disclosed to the public within 10 working days after approval by superior authorities, including the land acquisition announcement, and compensation and resettlement program for land acquisition. (Notice of the General Office of the Ministry of Land and Resources on Doing a Better Job in Disclosing City- and County-level Land Acquisition Information (MLRO [2014] No.29))

4.3.2 Abstract of applicable provincial regulations and policies 84. Land and resources authorities shall examine construction projects strictly in accordance with the laws and regulations on land administration, industry policies, and construction land quotas, and shall not approve farmland conversion or land use if any compensation and resettlement program for land acquisition cannot resettle APs properly.

85. The provincial labor and social security department shall develop local minimum AAOV rates and location-based composite land prices based on land grade, input, type and quality, and farm product prices together with the development and reform, agriculture, statistics, and other departments concerned, and submit them to the provincial government for approval. Local governments shall increase compensation rates if they are insufficient for APs to maintain the former living standard or insufficient to cover social security costs. The agriculture and civil affairs departments shall study measures for the distribution of land compensation fees within rural collective economic organizations and supervise the use thereof.

86. After collective land within the urban planning area is acquired as state-owned land, the local government shall set aside a certain amount of land to resettle APs, or include APs in the urban employment and social security systems.

87. For land acquisition within the urban planning area, the government shall appropriate funds from land transfer fees to promote the employment of LEFs, and develop public welfare jobs to place LEFs with difficulty in employment.

88. Local governments shall strengthen occupational training for LEFs of labor age using educational resources to improve their employment and business startup capacity. LEFs getting trained will receive training subsidies for unemployed urban residents from local public finance. (Opinions of the Henan Provincial Labor and Social Security Department, Land and Resources Department, and Finance Department on Doing Well in the Employment Training and Social Security of Land-expropriated Farmers (HPLSS [2008] No.19))

89. Land acquisition and house demolition rates and procedures shall be implemented strictly to prevent and mitigate conflicts and disputes from the very beginning. First, the compensation rates for land acquisition specified in the Notice of the Henan Provincial Government on Adjusting Location-based Composite Land Prices for Land Acquisition of Henan Province (HPG [2013] No.11) shall be complied with strictly. Second, land acquisition shall be notified and adequate consultation conducted in advance. Third, LEFs shall be included in social security to ensure that their

28 livelihoods are secured practically.

90. A social stability risk evaluation mechanism, and a dispute arbitration and mediation mechanism for land acquisition and house demolition shall be established to handle conflicts timely, effectively and lawfully. (Notice of the General Office of the Henan Provincial Government on Issuing the Special Corrective Plan for Land Acquisition and House Demolition (HMGO [2014] No.110))

4.4 Main Differences between the ADB Policy and PRC Laws

91. In general, ADB’s policy requirements on involuntary resettlement is highly similar to the applicable policies of the PRC which include the following: (i)Resettlement shall be minimized during planning and design; (ii)The living standard of the affected population should be restored or improved; (iii)The resettlement policies should be open and transparent; (iv)Stress should be laid on information disclosure and public participation during resettlement; (v) Compensation rates should be fixed and implemented according to law.

92. However, the applicable policies of the PRC are still different from ADB’s policy on involuntary resettlement in some aspects, such as:

 Compensation and resettlement for houses 93. Difference: ADB policies require that compensation is based on replacement cost. Chinese laws think that depreciation is reasonable, and the compensation rate for the same structure should be lower than that for new housing.

94. Solution: Compensation rates in all ADB-financed projects are based on replacement cost.  Compensation for land 95. Difference: ADB policies require that compensation should be sufficient to offset any income loss, and restore long-term income-generating potential. Chinese standards are based on AAOV.

96. Solution: An early-stage solution is to provide replacement land, which is hardly practical. Cash compensation is the preference of most people, though they cannot ensure the rational use of such compensation. Therefore, further technical support is needed to monitor the income of seriously affected households, especially those in vulnerable groups, and local governments should provide assistance to those in need.  Compensation and resettlement of vulnerable groups 97. Difference: ADB policies require that special compensation is granted to all vulnerable groups, especially seriously affected households faced with impoverishment. Chinese provisions do not require social analysis, and compensation is based only on the amount of loss.

98. Solution: Special funds are available to assist the vulnerable groups, who are identified during the DMS. All measures have been specified in the RP.  Consultation and disclosure 99. Difference: ADB policies require APs are fully informed and consulted as soon as possible. Chinese provisions have improved the transparency of disclosure and compensation. However, APs still play a weak role in project decision-making, and the disclosure period is usually too short.

100. Solution: Consultation has begun at the early stage (before and during the technical assistance). The Hebi PMO agrees to disclose the RP to APs as required by ADB.  Lack of legal title 101. Difference: ADB policies require all demolished houses, whether lawful or not, should be compensated for at the same rates. According to Chinese laws, people without local registered residence are entitled to the same compensation as local people. In addition, prevailing Chinese laws stipulate that no compensation should be provided for the acquisition of illegally owned land and houses.

102. Solution: For an ADB financed project, all APs, whether lawful or not, whether having ownership or right of use, will be protected, and provided with compensation or assistance.  Resettlement monitoring, evaluation and reporting 103. Difference: ADB requires that internal and external resettlement monitoring be conducted. However, there is no such requirement in Chinese laws, expect for reservoir projects.

104. Solution: Internal and external resettlement monitoring systems have been established for all ADB financed projects, and this has been included in the RP. The requirements for internal and external monitoring reporting are specified in the RP.

4.5 Cut-off Date

105. The cut-off date for the eligibility for compensation is fixed preliminarily and disclosed to AHs at 15th March 2015 during the preliminary Inventory of Losses (IOL) survey and socioeconomic survey, and will be disclosed again upon release of the LA announcement expected in February 201610. Local governments will not issue any new permits for construction in the area affected by LA of the Project after the preliminary cut-off date. Any newly claimed land, newly built house or settlement in the project area by the APs after this date will not be entitled to compensation or subsidization. Any building constructed or tree planted purely for extra compensation will not be counted in.

4.6 Compensation Rates

106. The following compensation rates apply until May 2015. If the local government issues any higher rate at the resettlement implementation stage, such new rate will apply to all AHs.

4.6.1 Permanent LA 107. The location-based composite land price for LA for the Subproject is based on the Notice of the Henan Provincial Government on Adjusting Location-based Composite Land Prices for Land Acquisition of Henan Province (HPG [2013] No.11), as shown in Table 4-2.

Table 4-2 List of Location-based Composite Land Prices Location-based land Range Remarks price (yuan/mu) Cuizhuang, Xiaoxinzhuang, Taoyuan, Cuizhuang Village was turned into 38000 Daxinzhuang, Jiangzhuang and Xiangjiang Community in 2010, and

10 During the inventory of losses (IOL) survey, the cut-off date was preliminarily set and disclosed to affected villages and AHs; once the local government gets the LA approval file from Henan Province Government and issues the announcement of LA in project area, the finalized cut-off date will be set and disclosed again.

Niuzhuang Villages Taoyuan Village turned into Taoyuan Community in 2013. Note: Above compensation rates are based on Location-based Land Price issued by Henan Province Government, but not on the Annual Average Output Value. These rates are equivalent to 25< times annual net income of cultivation in Hebi city.

108. Table 4-3 provides an appraisal of LA compensation rates. It can be seen clearly that LA compensation rates can cover net income on land.

Table 4-3 Comparison of LA Compensation Rates and Income Losses Location-based Average net Interest income on Difference composite land Compensation No. Sub-district income (yuan/mu) bank deposit (yuan/mu) (yuan/mu) price rate (yuan/mu) (A) (B) (B-A) (yuan/mu) 1 Jiuzhou Road 38000 1440 38000 1520 80 2 Changjiang Road Note: 1) Average net income on land is estimated to be 60% of gross income (young crop compensation), and excludes labor costs; 2. The prevailing benchmark deposit rate of the People’s Bank of China is 4% (for 5 years or more, effective from March 1, 2015).

4.6.2 Demolition of Residential Houses 109. The compensation rates for demolished residential houses are based mainly on the Notice of the Hebi Municipal Government on Adjusting Compensation Rates for Ground Attachments and Young Crops on Land Acquired for State Construction (HMG [2012] No.11). See Table 4-4.

Table 4-4 Compensation Rates for Demolished Residential Houses Benchmark Type Item Unit Remarks rate (yuan) Masonry 1) Purchase prices of resettlement housing Storied yuan/m2 470 concrete on the original site and provided by local buildings Masonry timber yuan/m2 400 government (which have been agreed with 2 2 Masonry 2 APs): 420 yuan/m (30m , house size) + yuan/m 420 2 2 concrete 600 yuan/m (10m , additional size) + 1,200 yuan/m2 (10m2, commercial size) 2) For residential houses, corridors are House counted in residential size; compensation compensation Single- 2 rate is increased 40 yuan/m per 12cm of story additional wall thickness. buildings Masonry timber yuan/m2 380 (3) After relocation, AHs can sale their resettlement houses at market prices (about 3,000 yuan/m2) and purchase other houses according to their own preferences (in case they wanted to live elsewhere). Moving award yuan/HH 10000 After HD and acceptance Other Moving subsidy yuan/HH 1000 for two times compensation y uan/per till the date of moving into the resettlement Transition subsidy 2000 capital/year houses

4.6.3 Demolition of Non-residential Properties 110. The non-residential properties demolished for the Subproject include two mixed commercial and residential properties, a hennery and a brick factory, which will be compensated for as residential houses. See Table 4-4. The relocation subsidy and suspension loss compensation of the hennery and brick factory will be provided by Qibin District Government on the basis of market

31 assessment value and will be paid from the contingency of resettlement budget.

4.6.4 Temporary Land Occupation 111. For the land occupied temporary for the Subproject, compensation will be paid directly to proprietors based on the actual period of occupation. See Table 4-5.

Table 4-5 Compensation Rates for Temporary Land Occupation Item Unit Compensation rate (yuan) Compensation for temporary occupation Irrigated land yuan/mu per annum 2400

4.6.5 Young Crops and Attachments 112. The compensation rates for young crops and attachments are based on the Notice of the Hebi Municipal Government on Adjusting Compensation Rates for Ground Attachments and Young Crops on Land Acquired for State Construction (HMG [2012] No.11). See Tables 4-6 and 4-7. Local governments can opt for lump sum compensation at the rate of 7,000 yuan/mu for all the crops and ground attachment, or chose compensation on the basis of calculation for each item, which depends on the complexity of affected attachments and willingness of affected households. After receiving the compensation, the owner can hold the disposal right of affected ground attachments. Especially for trees (timber and fruit), they can transplant them to other land or sale to other households or entities at market prices.

Table 4-6 Compensation Rates for Young Crops No. Land type AAOV (yuan/mu) 1 Irrigated land 2400 2 Vegetable land 3200

Table 4-7 Compensation Rates for Ground Attachments N Type Rate Unit Unit price (yuan) Remarks o. Dia. =<5cm 5 Dia. 6-10cm 10 After receiving the Poplars, Scattered Dia. 11-15cm 25 compensation, the willows, 1 deciduous Dia. 16-20cm / 38 owner can transplant locusts, trees Dia. 21-25cm 45 them to other land or elms, etc. Dia. 26-30cm 55 sale to other Dia. >=31cm 75 households or 2 Forests 7 years or more mu 1700 entities at market Dia. 4.1-6cm 70 prices. 3 Scattered fruit trees Dia. 8.1-10cm 200 Plastic 4 Greenhouses Steel or concrete frame m2 30 film roof Simple Asbestos tile or felt roof, steel pipe Used to store 5 m2 100 houses or timber structure, masonry walls sundries 6 Fence Brick fence ㎡ 55 Concrete 7 Concrete ground ㎡ 60 ground biogas 8 Brick or stone ㎡ 220 digester 9 Water tank Brick or stone ㎡ 200 30 0 yuan more per 10 Tombs One coffin per tomb / 1500 additional coffin 11 Ground Concrete m2 60

150 yuan more per 12 Pumped wells 40 deep, concrete shaft / 8500 1m beyond 40m 13 Canals Earth m 10 14 Cement poles 11 -15m high / 160

4.6.6 Tax and Fee Rates 113. In addition, taxes and fees will be imposed on the following acquisition of collective land classified as follows.

Table 4-8 Tax and Fee Rates on LA No. Item Rate Basis Notice of the General Office of the Henan Provincial Land reclamation 1 933 3 yuan/mu Government on Strengthening Land Control and Rigidly costs Enforcing Land Administration (HMGO2007] No.33) Measures of Henan Province for the Implementation of the Farmland occupation 2 2066 7 yuan/mu Interim Regulations on Farmland Occupation Tax of the PRC tax (Decree [2009] No.124 of the Henan Provincial Government) 3 LA management costs 2.8% of LA costs / Notice of the Ministry of Finance, the Ministry of Land and Compensation fees 4 for using additional 1866 7 yuan/mu Resources, and the People’s Bank of China on Adjusting the Policy on Fees for Compensated Use of New Construction construction land Land (CZ [2006] No.48) Notice of the Henan Provincial Labor and Social Security Social security fund 5 880 0 yuan/mu Department on Disclosing Location-based Composite Land for LEFs Prices for Land Acquisition (HPLSS [2008] No.72)

4.7 Entitlement Matrix

114. The entitlement matrix has been established in accordance with the applicable policies in this chapter, as shown in Table 4-9.

Table 4-9 Entitlement Matrix Type of impact Degree of impact APs Compensation and resettlement policy Compensation rates LA 442.9 mu, including 118.64 mu of 126 households with 579 1) Cash compensation: as per the location-based composite land 1) Rate: 38,000 yuan/mu irrigated land (26.79%), 11.87 mu persons in Xiangjiang price of Henan Province Young crops: 2,400 yuan/mu of vegetable land (2.68%), 100.83 Community, Jiuzhou Road 2) Employment: offering employment services, and public service (irrigated land), 3,200 yuan/mu mu of woodland (22.77%) and Sub-district; and 4 villages jobs, and jobs generated by the Subproject (vegetable land) 211.56 mu of construction land and one community in 3) Free skills training will be offered to the APs. 2) For contracted land, compensation (47.77%) Changjiang Road 4)Social endowment insurance: increasing contribution and will be paid directly and fully to the Sub-district pension levels of basic endowment insurance for urban and rural AHs in cash without being withheld or residents land reallocation; for non-contracted land, LA and young crop compensation is paid directly to the village collective and will be used for public welfare of all the villagers. 3) All compensation will be paid prior to the implementation of LAR. Temporary 316 mu of collective land, incl. 15 40 households with 175 1) Compensation will be paid directly to proprietors based on the Irrigated land: 2,400 yuan/mu per land mu of collective construction land, persons actual period of occupation. annum occupation 264 mu of wasteland and 37 mu of 2) Temporary land occupation will be notified in advance. irrigated land with a period of 6 3) The occupied land will be restored by the contractor to original All compensation will be paid prior to months situation after civil works, and will be monitored by AHs and the implementation of LAR. inspected by local land bureaus. Demolition of 2,012.74 m2 for masonry concrete 8 households with 44 1) Cash compensation: as per Document HMG [2012] No.11 Masonry concrete (storied): 470 residential and masonry timber houses persons in Xiangjiang 2) Centralized resettlement: Each resettled person will receive 30 yuan/m2 houses Community, Jiuzhou Road m2 of resettlement housing, 10 m2 of additional housing and 10 m2 Moving reward: 10,000 yuan per Sub-district and of commercial housing at 420 yuan/m2, 600 yuan/m2 and 1,200 household in advance upon Daxinzhuang Village, yuan/m2 (cost price) respectively. acceptance of HD Changjiang Road 3) Compensation will not take depreciation in account and the AH Transition subsidy: 2,000 yuan/year Sub-district will have the right to salvage the demolished material free of any per capita charge. Moving subsidy: 1,000 yuan per HH(for two times’ moving) All compensation will be paid prior to the implementation of LAR. Demolition of 3,282.38m2 for masonry concrete 4 households with 23 1) The same rates as residential houses will apply. Masonry concrete (storied): 470 non-residential and masonry timber houses persons in Xiangjiang 2) For the hennery and brick factory, the government will assist it yuan/m2 properties Community, Jiuzhou Road in leasing other land to resume business. Masonry timber (single-story): 380 Sub-district and 3) Compensation will not take depreciation in account and the AH yuan/m2 Daxinzhuang Village, will have the right to salvage the demolished material free of any The relocation subsidy and Changjiang Road charge. suspension loss compensation of the

Sub-district hennery and brick factory will be provided by QDG on the basis of market assessment value. All compensation will be paid prior to the implementation of LAR. Women \ Affected women 1) Making at least (225 jobs) 30% of unskilled jobs first available to women; 2) Making free skills training first available to women, in which at least (171 person-times)50% of trainees are women; 3) Women will receive relevant information during resettlement, and are able to participate in resettlement consultation. A special women’s FGD will be held to introduce resettlement policies. Vulnerable MLS households 6 households with 19 1) Granting an extra living subsidy The government and PMO will grant a groups persons 2) Giving priority to them during resettlement, including skills one-time living subsidy of 2,000-4,000 training, public service jobs and jobs generated by the Subproject yuan per household as the case may 3) Including eligible vulnerable groups in the MLS system be. 4) Offering urban and rural medical assistance to eligible vulnerable groups Ground Scattered deciduous trees, Proprietors Other ground attachments will be compensated at specified rates. See Table 4-7 and Section F5 in attachments greenhouses, wells, tombs, etc. Chapter IV. Significantly HH and APs with significant Giving priority to them during resettlement, including skills training, affected impacts public service jobs and jobs generated by the Subproject persons Making jobs available to at least one person from each significantly affected HH. Grievance \ All APs Free; all costs so reasonably incurred will be disbursed from the redress contingencies

5 Resettlement and Income Restoration

5.1 Objectives and Principles of Resettlement

5.1.1 Objectives 115. The objective of resettlement of the Subproject is to ensure that the APs benefit from the Subproject, and their living standard is improved or at least restored to the pre-project level. The objectives of resettlement of the Subproject are: 1) All households affected by HD receive compensation at replacement cost, so that their residential conditions are restored or improved; 2) All affected ground attachments are compensated for at replacement cost; 3) The farmers affected by LA are compensated properly, and their income is restored or improved. All affected farmers will receive assistance after LA until full livelihood restoration.

5.1.2 Principles 1) The APs should participate in the whole process of resettlement. It is necessary to consult with representatives of the APs on compensation rates, resettlement housing selection, and the timing of relocation, restoration and compensation payment, etc. 2) Compensation should be paid to proprietors fully and directly. Special accounts for compensation payment should be established so that no individual or organization (including township government/village committee) would withhold compensation. 3) Compensation for houses, ground attachments and other properties at full replacement cost Full replacement cost should be calculated based on fair market value, transaction cost, accrued interest, transition and restoration costs, and other appropriate costs. Compensation should not be discounted or taxed, and must be paid to proprietors based on open rates. 4) Assistance for vulnerable groups Vulnerable households should have priority in resettlement housing selection, employment, service provision, and livelihood restoration, etc.

5.2 Income Restoration Program for Households Affected by LA

116. The components that involve LA and affected population are the Tianlai Canal, 3# branch canal and 4# branch canal. The design agency has minimized LA and HD impacts by optimizing the design. The loss rates of cultivated land of the affected 6 villages/communities are below 45%. Xiaoxinzhuang Village has the highest land loss rate of 44.93%, followed by Daxinzhuang Village (38.63%), and the land loss rates of the other villages/communities are below 10%.

117. All the affected villages/communities are within the urban area, and their residents have been turned into nonagricultural status in household registration. There is a small amount of cultivated land in these villages/communities, and only basic food crops are grown. The income loss rates of all households affected by LA are below 10%. Therefore, the Subproject will have little impact on production and livelihoods. Almost all AHs support the Subproject, because they think that the Subproject will further improve the local environment, and increase job opportunities and income. In addition, all of them expect cash compensation for LA. Restoration programs suited to local conditions have been developed in consultation with the affected villages committees and AHs as follows:

5.2.1 Cash Compensation and Distribution 118. The village committees and households affected by LA for the Subproject will be subject to cash compensation. In Jiuzhou Road and Changjiang Road Sub-districts, the location-based composite land price for irrigated land and vegetable land is 38,000 yuan/mu, and young crop

36 compensation rate is 2,400 yuan/mu for irrigated land or 3,200 yuan/mu for vegetable land. Woodland will be compensated for based on appraisal.

119. Distribution programs of LA compensation fees will be developed through adequate consultation, and submitted to sub-district offices for approval. Since the affected villages/communities have experienced LA in other municipal projects, traditional distribution practices have been established, which will be followed in the Subproject. The AHs may take nonagricultural livelihood restoration measures with the assistance of the government after receiving cash compensation. See Table 5-1.

Table 5-1 Summary of LA Compensation Distribution Programs Sub-district villages/communities Distribution program Jiuzhou Road Xiangjiang Community For contracted land, LA compensation (including land Xiaoxinzhuang compensation and resettlement subsidy), and young Daxinzhuang crop compensation will be paid directly to the AHs Taoyuan Community without land reallocation and without being withheld by Changjiang Road Jiangzhuang Village the collective. For non-contracted land, LA compensation will be paid to Daxinzhuang Village collective committee and used for the public welfare of all villagers.

5.2.2 Employment 120. 318 laborers (164 males and 154 females) will be affected by LA for the Subproject, averaging 2.52 per household. Their livelihood restoration will be promoted by offering more job opportunities. Qibin District PMO will take charge of the coordination with Qibin Distict Labor and Social Security Bureau and civil work contractors to provide employment opportunities for APs, the progress and outcomes will be monitored and reported to Hebi PMO and ADB by internal and external monitoring agencies.

1) Employment services 121. According to the Opinions of the Henan Provincial Labor and Social Security Department, Land and Resources Department, and Finance Department on Doing Well in the Employment Training and Social Security of Land-expropriated Farmers (HPLSS [2008] No.19), local public employment service agencies should be open to LEFs for free to provide them with employment consulting, guidance, training and referral services to promote their employment. Unemployed LEFs will be registered to receive employment services for unemployed urban residents.

2) Social jobs 122. Xiangjiang Community, Jiuzhou Road Sub-district; and Xiaoxinzhuang, Daxinzhuang, Jiangzhuang and Niuzhuang Villages, and Taoyuan Community, Changjiang Road Sub-district affected by the Subproject are located in the urban center, where there are many job opportunities. The Qibin District Labor and Social Security Bureau has been organizing initiatives for unemployed residents. In 2014, the bureau helped 4,566 unemployed urban residents get employed, and this number is 4,800 in 2015. In addition, the Jiuzhou Road and Changjiang Road Sub-district Labor and Social Security Offices are offering employment services actively by various means. For example, a job fair was held in Jiuzhou Road Sub-district in March 2015, offering over 3,000 jobs, including marketing, technical, accounting and housekeeping jobs. It is estimated that about 500 jobs will be made available to the households affected by LA per annum.

3) Public service jobs

123. The Subproject will promote the development of Qibin District. During this process, about 100 public service jobs (cleaners, security guards, wardens, etc.) will be generated per annum, which will be first made available to APs. Based on affected population, 30 jobs will be allocated to Jiuzhou Road Sub-district and 70 to Changjiang Road Sub-district.

4) Jobs generated by the Subproject 124. The Subproject will generate a large number of jobs at the construction and operation stages. The 5 canals have a total landscaping area of 394,313 m2, and will need 10 safety inspectors, 10 landscaping administrators, 90 landscaping workers and 50 cleaners in total. See Table 5-2.

Table 5-2 Employment Program of the Subproject Affected Type Description Jobs offered Income level population Jiuzhou Road and Changjiang About 500 (1) 126 3, 000 Road Sub-districts are located in permanent jobs households with Social jobs yuan/month on the urban center, where there are (at least 150 for 579 persons and average many job opportunities. females) 318 laborers Public service jobs (cleaners, 100 permanent ( including 164 1,500 Public service security guards, wardens, etc.) jobs (at least 30 males and 154 yuan/month on jobs will be generated with the for females) females) average development of the new district. (2) For one Excavation, dredging, slope 30 skilled jobs significantly Jobs generated 12 0 yuan/day, protection, machinery handling, and 100 unskilled affected at the increasing per landscaping, transport, etc. jobs (part-time), households, at construction capita income averaging 100 least one stage by 12,000 yuan days per job permanent job Safety inspectors, landscaping 150 permanent will be provided to administrators, workers, jobs (at least 45 ensure that their Jobs generated 1,500 cleaners, etc. for females) livelihoods are at the operation yuan/month on restored in a stage average sustainable manner.

125. For the above employment needs, the sub-district labor and social security offices will collect employment information and disclose it in the affected communities timely. During employment, employers will enter into labor contracts with employees, and offer necessary pre-job and safety training at pay levels not less than the local minimum wage standard (1,400 yuan/month or 13.5 yuan/hour after January 1, 2014). Men and women will receive equal pay for equal work, but the use of child labor will be prohibited.

5) Small-amount loans for business startup 126. Small-amount secured loans will be granted to eligible registered unemployed urban residents and residents with employment difficulty (including LEFs) at the prevailing benchmark loan rate the People’s Bank of China plus not more than 3 percentage points for a period of at most two years. Credit line is 80,000 yuan for women or 50,000 yuan for residents with employment difficulty. The APs will have priority in receiving such loans during independent business startup.

127. The application and extension process is as follows: An applicant files a written application with the sub-district labor and social security office, and submits relevant information and certificates; The sub-district labor and social security office investigates the applicant’s qualification, credit standing, business place, market prospect and startup capacity, and give an opinion to the guarantee agency. The guarantee agency qualifies the applicant. The applicant

enters into a loan contract with the bank and receives the loan.

5.2.3 Skills Training 128. An important measure for employment is to improve labor skills through training, which is organized by the Qibin District Labor and Social Security Bureau mainly.

129. It is learned from an interview that the bureau offers skills and business startup training to unemployed urban residents (including unemployed LEFs) mainly, including: 1) beauty care and hairdressing, computer, electrician, electric sewing, cooking, maternity matron, old-age care, etc.; 2) nutritionist, massagist, tea art, etc.; and 3) business startup training.

Figure 5-1 Cooking (Left) and Business Startup (Right) Training in Jiuzhou Road Sub-district in 2014

130. Training costs, including material, printing, examination and practice costs, are borne by the Qibin District Labor and Social Security Bureau. Such training will be first made available to LEFs, especially those unemployed. It expected that 342 person-times training will be provided to households affected by LA under the Subproject from 2016 to 2017 on the basis of their demands, in which at least 50% training opportunities will be provided to females. Qibin District PMO will take charge of the coordination with Qibin Distict Labor and Social Security Bureau to organize these skill trainings for APs, the progress and outcomes will be monitored and reported to Hebi PMO and ADB by internal and external monitoring agencies. See Table 5-3.

Table 5-3 Summary of Local Training Programs Trainees Person-times Agency Funding Scope Time per Hours trained for APs responsible source session Beauty care / hairdressing Apr., Aug 30 18 140 Old-age care Mar., Nov. 30 18 150 Computer operation May, Oct. 60 36 120 Marketing Jun., Sep. 60 36 60 Qibin District Business startup Mar ., Jun., Sep., Dec. 30 36 60 Labor and Special Electrician Apr. 60 18 160 Social fiscal Electric sewing Jul. 60 140 Security 18 funds Maternity matron 5 th of each month 30 108 150 Bureau and Cooking Mar., Jun., Sep., Dec. 30 54 140 Qibin PMO 342 (females Total accounting 50% at least) Note: Tea art, nutritionist and masseuse training is offered based on sign-in.

5.2.4 Social Endowment Insurance 131. The latest Basic Endowment Insurance for Urban and Rural Residents can help to improve the pension and living condition for each AP in the future, especially for the aged members and who are nearing to get aged in the AHs. In Qibin District, new-type rural social endowment insurance has been implemented since 2009, with 90% of rural residents covered in that year alone. In 2012, new-type rural social endowment insurance merged with social endowment insurance for urban residents into social endowment insurance for urban and rural residents. In 2014, HMG issued the Notice of the Hebi Municipal Government on Issuing the Measures for the Implementation of Basic Endowment Insurance for Urban and Rural Residents of Hebi City (HMG [2014] No.34), stipulating that: 1) Coverage: Urban and rural residents having attained 16 years (excluding active students), other than workers of state organs and public institutions, and not covered by basic endowment insurance for employees may cover basic endowment insurance for urban and rural residents. 2) Fundraising: 1) Individual contribution: The insured will pay premiums at one of the 16 levels (100, 200, 300, 400, 500, 600, 700, 800, 900, 1,000, 1,500, 2,000, 2,500, 3,000, 4,000 and 5,000 yuan per annum) voluntarily. 2) Government subsidy: Those choosing levels 100-400 yuan will receive a subsidy of 30 yuan per capita per annum, including 20 yuan from provincial finance and 10 yuan from municipal finance; those choosing levels 500 yuan and above will receive a subsidy of 60 yuan per capita per annum, including 40 yuan from provincial finance and 20 yuan from municipal finance. 3) Pension: 1) Basic pension: basic pension fixed by the central government, plus a subsidy of 3 yuan per capita per month from provincial and municipal finance, and a subsidy of not less than 5 yuan from county/district finance; and 2) Monthly individual account pension: balance of the individual account divided by 139. 4) Eligibility for receiving pension: Individuals having covered basic endowment insurance for urban and rural residents having attained 60 years, having paid premiums for 15 years and not receiving basic pension may receive a pension monthly.

132. The contribution and pension levels of endowment insurance for urban and rural residents can be calculated from the above policy provisions. See Table 5-4.

Table 5-4 Contribution and Pension Levels of Endowment Insurance for Urban and Rural Residents (yuan) Contribution Annual Borne by Total of Borne by Monthly Annual Annual Total level contribution individual 15 years individual pension pension subsidy 100 130 100 1950 1500 84 1008 96 1104 200 230 200 3450 3000 95 1138 96 1234 300 330 300 4950 4500 106 1267 96 1363 400 430 400 6450 6000 116 1397 96 1493 500 560 500 8400 7500 130 1565 96 1661 600 660 600 9900 9000 141 1695 96 1791 700 760 700 11400 10500 152 1824 96 1920 800 860 800 12900 12000 163 1954 96 2050 900 960 900 14400 13500 174 2083 96 21797 1000 1060 1000 15900 15000 184 2213 96 2309 1500 1560 1500 23400 22500 238 2860 96 2956 2000 2060 2000 30900 30000 292 3508 96 3604 2500 2560 2500 38400 37500 346 4155 96 4251 3000 3060 3000 45900 45000 400 4803 96 4899 4000 4060 4000 60900 60000 508 6098 96 6194 5000 5060 5000 75900 75000 616 7393 96 7489 Note: 1. The minimum basic pension approved by the State Council is 70 yuan per capita per month; 2. The total amount of county/district, municipal and provincial subsidies is 8 yuan per capita per month.

133. All persons affected by LA have covered basic endowment insurance for urban and rural residents. Since pensions are low (mostly 100-500 yuan per annum), the APs can increase their contribution levels voluntarily after receiving LA compensation to receive higher pensions when attaining statutory age.

134. In addition, APs employed in town may cover endowment insurance for urban employees to receive higher pensions. If the laborers get employed permanently in the public sectors or private companies and pay premiums for 15 years, they will be covered by the urban employee’s basic endowment insurance and receive same pension (average 2100 yuan/mouth in 2014 in Henan Province) as urban retired employees.

5.3 Resettlement Program for Demolition of Residential Houses

(1) Resettlement Program for demolition of HHs affected by ADB financed project

135. 8 households with 44 persons will be affected by the demolition of residential houses, with a total demolition area of 2,012.74 m2, in which 3 households with 17 persons and 639.88 m2 houses are located in Xiangjiang Community of Jiuzhou Road Sub-district, and 5 househodls with 27 persons and 1372.86 m2 houses are located in Daxinzhuang Community of Changjiang Road Sub-district. The resettlement program of the local urban village reconstruction project will apply to them. Based on the consultation with these AHs11, it’s agreed that the resettlement measures will include: 1) The compensation rate for demolished residential houses on the original site and provided by local government (masonry concrete, storied) is 470 yuan/m2. 2) Each resettled person will receive 30 m2 of resettlement housing, 10 m2 of adjusting housing and 10 m2 of commercial housing at 420 yuan/m2, 600 yuan/m2 and 1,200 yuan/m2 (cost price) respectively. 3) The AHs will choose new houses with HD compensation agreements. 4) Each AH may receive a reward of 10,000 yuan in advance upon acceptance of HD. 5) Each AH will receive a transition subsidy of 2,000 yuan per capita every year until the date of house allocation. 6) Each AH will receive a moving subsidy of 1,000 yuan for two times’ moving (will be paid by the contingence of the resettlement budget). 7) After relocation, AHs can sale their resettlement houses at market prices (about 3,000 yuan/m2) and purchase other houses according to their own preferences (in case they wanted to do so).

136. This resettlement program will ensure the successful resettlement of the households affected by HD.

137. The 3 AHs will be resettled in the resettlement site in completed Xiangjiang Community, with a floor area of 110 mu and 29 buildings (all 5-storied). The main house sizes are 65 m2, 90 m2, 120 m2 and 150 m2. The rest 5 AHs will be resettled in Xianghe Community under construction. It covers an area of 60 mu, contains 16 buildings with 11 stories and houses of 90,000 m2 for 750 household. The main house sizes are 60 m2, 80 m2, 90 m2,120 m2 and 135 m2. The construction started in September 2013 and will completed in September 2015. See the resettlement communities in figure V-2.

11 Since the prices of the resettlement houses is much lower than the market prices (around 3,000 yuan/m2), AHs are willing to obtain these houses with preferential price provided by local governments.

Figure 5-2 Xiangjiang Community (Left) and Effective Drawing of Xianghe Community (Right)

(2) Resettlement Program for demolition of HHs affected by domestic financed Urban Village Reconstruction Project

138. In addition, 10 HHs with 55 persons and 1,241 ㎡ residential houses in Dalaidian Village have not yet reached compensation agreements and been demolished under the Dalaidian old city regeneration program as part of the urban village reconstruction project. And other 84 HHs with 372 persons are still renting residential houses for transition and waiting to move into resettlement houses in end of 2015. The demolition of these 94 HHs is not a part of nor in anticipation of the ADB financed Project. Since this Subproject will use the land after the demolition of these 94 HHs, a DDR of their relocation and resettlement has been prepared to ensure there is no outstanding issues before the commencement of civil works (See details in Appendix 1). A Supplementary Action Plan is agreed to be taken by Qibin Distrcit Government to ensure finish the relocation and resettlement as soon as possible . See details in appendix 1. The key measures include:

1) The 10 households having not completed HD should be made to enter into HD compensation agreements as soon as possible through further consultation, thereby fully completing HD; 2) The construction of the resettlement housing of Dalaidian Community should be accelerated, so that the resettlement housing can be handed over by the end of 2015; 3) The AHs should be resettled properly after the handover of the resettlement housing; and 4) The implementation of the above supplementary actions should be included in the internal and external M&E system, and reported to the Hebi PMO and ADB seminally until the AHs are fully resettled.

5.4 Resettlement Program for Demolition of Non-residential Properties

139. The non-residential properties demolished for the Subproject are two mixed commercial and residential properties and a hennery. The same compensation rates as residential houses will be applied. The households affected by the demolition of mixed commercial and residential properties will also be resettled in Xiangjiang Community with a better geographic location and lawful formalities. With the further development of the city, commercial properties will have great potential of appreciation, and reap higher revenue and profits. The government and Qibin PMO will notify the AHs of demolition half a year in advance for the convenience of their preparation.

140. For the hennery, the owner leased the collective land to operate his business and employed 5 workers. The government will notify the AH of demolition half a year in advance, grant housing compensation, relocation subsidy and suspension loss compensation (depend on market assessment value), and assist it in leasing other land to resume business. The AH has been notified of demolition and chosen a new site. The worker can easily find new jobs around Qibin District, and the owner agreed to reemploy them with priority. If these workers are not willing to get re-employed by the new hennery, Qibin MPO will coordinate Qibin District Labor and Social Security Bureau to provide permanent employment opportunities for each person before the demolition of this hennery.

141. For the brick factory, the owner came from outside of the village and leased the collective land to operate his business, 13 workers are hired. The owner will receive housing compensation, relocation subsidy and suspension loss compensation (depend on market assessment value) during demolition, then can search and rent new land outside of the urban area to restore his factory. The local government will notify the demolition information to the owner half a year in advance to minimize the impact on his operation. The new site need to comply with the environmental regulations. The worker can easily find new jobs around Qibin District, and the owner agreed to reemploy them with priority. If these workers are not willing to get re-employed by the new factory, Qibin MPO will coordinate Qibin District Labor and Social Security Bureau to provide permanent employment opportunities for each person before the demolition of this factory.

5.5 Women’s Development Measures

142. In the Subproject, women will be encouraged to participate in the implementation of this RP and play an important role in income restoration. In addition, the Hebi and Qibin PMO have female staff members in order to communicate with women more effectively and ensure women’s participation. Job opportunities will be made available to women at the construction and operation stages. The gender and social development action plans will detail the opportunities for women to benefit from the Subproject.

1) Small-amount business startup loans for women 143. Small-amount secured business startup loans of up to 80,000 yuan per capita are available to women doing business individually or 100,000 yuan per capita for women doing business together.

2) Equal rights of women in the development of resettlement programs 144. During public consultation, women enjoy equal rights of participation and decision-making. Not less than 30% of participants of village meetings or congresses discussing resettlement programs will be women. All resettlement agencies will have female staff members.

3) Priority of women in livelihood restoration 145. Affected women will have priority in enjoying the above livelihood restoration measures, especially employment and skills training. At least 30% of unskilled jobs will be provided to women, and at least 50% of trainees are women in free skills training.

146. The women in the project areas will be encouraged to participate in the implementation of the RP and ensure that they will play important role in income restoration. In addition, the PMO has female staff members who will be tasked to disseminate information and/or communicate with the women to ensure an effective and meaningful participation. Special measures have been developed

43 to protect the equal rights of females and to promote their income restoration and social development. See details in Table 3-10 and Table 4-9.

5.6 Supporting Measures for Vulnerable Groups

147. During resettlement, the PMO, IA and local government will pay particular attention to vulnerable groups, and establish a supporting fund for vulnerable groups (1% of basic resettlement costs) from the resettlement budget.

148. According to the survey, 6 households with 19 persons affected by the Subproject fall into vulnerable groups. During resettlement, additional supporting measures will be taken for them, including: 1) Granting an extra living subsidy The government and PMO will grant a one-time living subsidy of 2,000-4,000 yuan per household as the case may be. 2) Giving priority to them during resettlement Laborers in vulnerable households will have priority in receiving skills training, taking public welfare jobs and jobs generated by the Subproject, and applying for small-amount secured loans. 3) Including eligible vulnerable groups in the MLS system Eligible vulnerable persons affected by the Subproject will be included in the MLS system of Hebi City, and receive an average MLS benefit of 320 yuan per capita per month. 4) Offering urban and rural medical assistance to eligible vulnerable groups Urban and rural medical assistance will be offered to eligible vulnerable groups pursuant to the Notice of the Hebi Municipal Government on Issuing the Measures for the Implementation of Medical Assistance for Urban and Rural Residents with Difficulty of Hebi City (HMG [2011] No.43). Subjects:  Registered local residents entitled to urban or rural MLS Limits:  Personal cumulative limit 5,000 yuan for urban MLS subjects;  Personal cumulative limit 10,000 yuan for members of urban and rural households with special difficulties

5.7 Restoration Program for Infrastructure and Ground Attachments

149. The affected infrastructure includes water resources, power and communication facilities, etc. Restoration measures for demolished facilities must be planned in advance, and suited to local conditions so as to be safe, efficient, timely and accurate, with minimum adverse impact on nearby residents.

150. The affected ground attachments, including trees, greenhouses and tombs, will be compensated for in cash at replacement cost. The Subproject will affect 15 tombs in Changjiang Road Sub-district, affecting 4 households. These tombs will be relocated due to permanent LA. All these tombs have been completed after 1949 and have no cultural value, and will be compensated for in cash and relocated according to local customs.

6 Organizational Structure

6.1 Resettlement Implementation and Management Agencies

6.1.1 Organizational Setup 151. To ensure successful resettlement as desired, a systematic organizational structure must be established during project implementation in order to plan, coordinate and monitor resettlement activities. Since resettlement is a very comprehensive task that requires the assistance and cooperation of different departments, QDMAO, the land and resources bureau, QDNCO, etc. will participate in and support resettlement implementation. Each affected township or village has one or two chief leaders responsible for resettlement. The agencies responsible for LA and HD in the Subproject are:  Hebi Project Leading Group  Hebi PMO  Qibin Subproject Leading Group  HPRSAD  Qibin PMO  QDMAO  Qibin District Land and Resources Bureau  QDNCO  Jiuzhou Road and Changjiang Road Sub-districts  Affected village/community committees  Design agency  External M&E agency  Other agencies concerned: women’s federation, labor and social security bureau

6.1.2 Organizational Responsibilities  Hebi Project Leading Group 152. Making overall arrangements and decisions, leading the implementation of the Subproject, and coordinating major issues

 Hebi PMO 1) Appointing a resettlement consulting agency to conduct resettlement preparation 2) Coordinating the consulting agency with other agencies concerned 3) Coordinating the progress of construction and resettlement 4) Supervising the disbursement of resettlement funds 5) Coordinating the work of agencies concerned 6) Coordinating the work of the ADB resettlement experts at the preparation and implementation stages  HPRSAD (at the Hebi PMO) 1) Conducting resettlement preparation together with the resettlement consulting agency 2) Developing resettlement policies 3) Reporting resettlement progress to the Hebi Project Leading Group and PMO 4) Submitting the resettlement investment plan to the Hebi Project Leading Group and PMO 5) Managing resettlement files 6) Conducting internal resettlement monitoring 7) Handling grievances and appeals arising from resettlement 8) Communicating and coordinating with the external M&E agency during resettlement 9) Supervising the construction of the resettlement site 10) Implementing employment measures 11) Training the resettlement staff  Qibin Subproject Leading Group 153. Making arrangements and decisions on the Subproject, leading the implementation of the Subproject, and coordinating major issues under the leadership of the Hebi Project Leading Group

 Qibin PMO 1) Coordinating the work of agencies concerned 2) Coordinating the work of the ADB resettlement experts at the preparation and implementation stages  QDMAO 1) Applying for planning and land use permits with competent authorities; 2) Communicating resettlement policies to the public; 3) Appointing a dedicated agency to implement the RP; 4) Raising, supervising and managing resettlement funds  Qibin District Land and Resources Bureau 1) Determining the subproject area and conducting a socioeconomic survey; 2) Participating in the preparation of the RP and assisting in its implementation; 3) Communicating resettlement policies to the public; 4) Conducting the DMS; 5) Handling LA and HD formalities; 6) Conducting LA compensation and resettlement; 7) Keeping LA and HD compensation and resettlement records; 8) Assisting the external M&E agency in fieldwork; 9) Preparing LA progress reports and submitting them to the PMO  QDNCO 1) Participating in the preparation of the RP and assisting in its implementation; 2) Communicating resettlement policies to the public; 3) Conducting the DMS; 4) Handling LA and HD formalities; 5) Appraising affected houses and ancillary structures; 6) Conducting HD compensation and resettlement; 7) Keeping LA and HD compensation and resettlement records; 8) Assisting the external M&E agency in fieldwork; 9) Preparing LA progress reports and submitting them to the PMO  Jiuzhou Road and Changjiang Road Sub-district Offices 1) Participating in the socioeconomic survey and assisting in preparation of the RP; 2) Organizing public participation and communicating the resettlement policies; 3) Implementing, inspecting, supervising and recording all resettlement activities; 4) Supervising the disbursement and management of LA compensation fees; 5) Supervising LA; 6) Reporting LA, HD and resettlement information to the PMO; 7) Handling grievances and appeals arising from resettlement; 8) Handling resettlement issues  Affected village/community committees 1) Participating in the socioeconomic survey and DMS; 2) Organizing public participation and communicating the resettlement policies; 3) Organizing resettlement activities; 4) Handling grievances and appeals of the APs, and reporting their comments and suggestions to the PMO  Qibin District Labor and Social Security Bureau Offering skills training  Design agency 154. At the planning and design stage, it will survey the physical indicators of LA and HD, environmental capacity, usable resources, etc. accurately, and assist the governments in the subproject area in developing resettlement programs, preparing budgetary investment estimates for compensation for LA and HD, and preparing the relevant drawings.

155. At the implementation stage, it will submit the design documents, technical specifications, drawings and notices to the owner timely, make design disclosure to the PMOs of all levels.

 External M&E agency 156. The owner will employ a qualified M&E agency as the external resettlement M&E agency. Its main responsibilities are: 1) observing all aspects of resettlement planning and implementation as an independent M&E agency, monitoring and evaluating the effectiveness of resettlement and the social adaptability of the APs, and submitting resettlement M&E reports to ADB; 2) Providing technical advice to the Resettlement Office in data collection and processing.

A3. Organizational Chart

157. See figure 6-1.

Hebi Project Leading Group

Hebi PMO

Qibin Subproject Leading Group HPRSAD

Qibin PMO and QDMAO

Internal monitoring Design agency agency

Jiuzhou Road and Changjiang External M&E Road Sub-district Offices agency

Affected village /community committees

APs

LA and HD

Figure 6-1 Organizational Chart

6.2 Staffing and Equipment

6.2.1 Staffing 158. In order to ensure the successful implementation of the resettlement work, all resettlement agencies of the Subproject have been provided with full-time staff, and a smooth channel of communication has been established. See Tables 6-1 and 6-2.

Table 6-1 Staffing of Resettlement Agencies Workforce Agency Composition Male Female Hebi Project Leading Group 3 2 Civil servants Hebi PMO 2 2 Civil servants, technicians HPRSAD 2 1 Civil servants, technicians Qibin Subproject Leading Group 2 2 Civil servants Qibin PMO 2 2 Civil servants, technicians Jiuzhou Road Sub-district 2 1 Civil servants Changjiang Road Sub-district 2 1 Civil servants Affected village/community committees 3 3 Officials, representatives of APs Design agency 2 1 Engineers External M&E agency Some Some Resettlement and social experts

Table 6-2 Persons Chiefly Responsible of Resettlement Agencies No. Agency Name Tel 1 Gong Shuangjun 03923261381 HPRSAD 2 Niu Aizhi 13783036995 3 Li Hui 13939237800 Qibin PMO 4 Yang Yang 15939298556 5 Jiuzhou Road Sub-district Office Lu Yan 13939227733 6 Changjiang Road Sub-district Office Head Niu 18539210913 7 Xiangjiang Community Committee Secretary Liu 15839263955 8 Jiangzhuang Village Committee Chen Peiwang 15346285666 9 Daxinzhuang Village Committee Dong Dejian 13783002030 10 Xiaoxinzhuang Village Committee Wang Anxi 15939266808 11 Taoyuan Community Committee Zhang Yueru 15139237786 12 Niuzhuang Village Committee Zhu Guangxin 13033881573

6.2.2 Equipment 159. All resettlement agencies of the Subproject have been provided basic office, transport and communication equipment, including desks and chairs, PCs, printers, telephones, facsimile machines and vehicles.

6.2.3 Organizational Training Program 160. In order to ensure the successful implementation of the resettlement work, the resettlement staff must be trained under the leadership of the Hebi PMO and HPRSAD.

161. A staff training and human resources development system for the municipal-, county-, township- and village-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. See Table 6-2. The training’s topics include: —ADB’s resettlement policy and principles

—Differences between ADB and PRC policies —Resettlement implementation planning and management —Points requiring attention during resettlement implementation —Resettlement M&E

Table 6-3 Operational Training Program of Resettlement Agencies Agency Scope Trainees Time No. responsible Funding A B C D Learning resettlement experience 1 Hebi PMO from ADB-financed projects in other Resettlement office staff 2015 -2016 cities 2 Hebi PMO ADB’s policy on resettlement Resettlement office staff 2015 -2016 Latest changes in state policies on 2015 -2016 3 Hebi PMO Resettlement office staff LA and HD Learning experience of 2015 -2016 Training 4 Hebi PMO resettlement fund management Resettlement office staff budget of from other projects the Computer operation and data 2015 -2016 5 Hebi PMO Resettlement office staff Subproject, processing 309,900 TA consultants 2015 -2016 yuan during Resettlement procedures and Sub-district resettlement office, 6 Implementation policies of ADB-financed projects community resettlement teams stage TA consultants 2015 -2016 during Sub-district resettlement office, 7 Resettlement policies and practice Implementation community resettlement teams stage

7 Public Participation and Grievance Redress

7.1 Public Participation

162. According to the policies and regulations of ADB, the PRC and Henan Province on resettlement, it is very necessary to conduct public participation at the 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 by developing sound policies and implementation rules on resettlement, preparing an effective RP, and organizing implementation properly.

7.1.1 Preparation Stage 163. Since January 2015, the task force has conducted a series of socioeconomic survey and public consultation activities (with 50% of participants being women). At the preparation stage, the PMO, IA and design agency conducted extensive consultation on LA and resettlement. See Table 7-1. 164. During the public consultation, APs expressed their main concerns and willingness of livelihood restoration and house resettlement, their wishes and key suggestions are listed as followings: (1) As for the young men and middle aged-men, their wish is to obtain permanent jobs or commercial opportunities from the Project after land acquisition, and hope skill trainings can be provided for free charge and are directly helpful for their employment or business; (2) Regarding the old people or who are close to retirement, they hope to use the compensation of LA to upgrade their existing endowment insurance in order to maintain a better aged life; (3) For house demolition, all the AHs are satisfied with the existing compensation rates and resettlement mode, since the housing condition and community environment will be significantly improved after relocation. Particularly, they can buy the resettlement house with preferential price (no more than 1,200 yuan/m2) and sale it on market with a much higher price (about 3,000 yuan/m2). The AHs affected by HD hope the government can speed up the progress of preparation and implementation of the Project and believe it’s very helpful to improve the living environment around the project area.

Table 7-1 Public Participation Activities at the Preparation Stage # Main Organiz Participant concerns Measures Date Mal Femal Purpose Key points er s and taken in RP e e suggestions Introducing Minimizing Adjusting the the impacts on components, Feasibility background income and and APs, study, field and purpose livelihoods, optimizing PMO, village investigation, of the and keeping the project 2014.6-2014. FS officials, 21 15 preliminary Subproject, project design to 12 agency technician resettlement and information minimize LA, s impacts minimizing and HD and survey resettlement resettlement resettlement impacts policies impacts transparent Reps. of Assisting in Some AHs Developing RP APs and the expressed preliminary 2015.1-2015. PMO, preparation, governme 16 9 socioeconom concerns resettlement 2 NRCR socioeconom nt ic survey about future programs ic survey agencies Expressing livelihoods based on the

# Main Organiz Participant concerns Measures Date Mal Femal Purpose Key points er s and taken in RP e e suggestions attitudes to socioeconom the project ic survey, so Resettlement that their willingness losses are survey compensate d for reasonably, and their income and livelihood levels restored effectively Disbursemen Compensatin Fixing rates t and g for land strictly based distribution of and asset on compensatio losses location-base n fees reasonably; d land prices Paying under public compensatio supervision; Reps. of n fees fully establishing governme and timely grievance 2015.1-2015. PMO, Public nt 15 10 redress and 2 NRCR consultation agencies M&E and APs mechanisms as well as audit mechanisms to supervise fund disbursemen t Livelihood Further Express their and income defining satisfaction of restoration income the after LA restoration compensatio Site, layout measures, n rates of and such as Hebi infrastructure employment Municipal; of in the public offering resettlement and private Officials effective housing sectors, and APs livelihood offering skills PM O, in the Public restoration 2015.3 12 7 training and NRCR affected consultation measures social village after LA and security, and groups HD; enabling offering the public to preferential share the loans Project s ’ Confirm the benefits; resettlement disclose the houses after information of preliminary resettlement public houses consultation. 2015.3 PMO, Officials 15 8 Public Supporting provide more Defining

# Main Organiz Participant concerns Measures Date Mal Femal Purpose Key points er s and taken in RP e e suggestions NRCR, and APs consultation measures for necessary extra TA in the vulnerable assistance to supporting experts affected groups vulnerable measures for village groups; make vulnerable groups the GRM groups under Establishing working the GRM. during the whole resettlement implementati on

7.1.2 Implementation Stage 165. With the progress of project preparation and implementation, the Hebi and Qibin PMO as well as QDMAO will also conduct further consultation activities, as follows: (i)Distributing the RIB; (ii)Verifying the DMS results; (iii)Conducting public participation on livelihood and income restoration programs; (iv)Conducting public participation on HD resettlement programs; (v)Conducting public participation on training and employment promotion; (vi)Other concerns of the APs.

166. Before construction, the PMO and QDMAO will disclose the project design and impacts to the APs. Upon commencement of construction, the PMO and QDMAO will also conduct a field investigation to determine construction sites and their floor areas in consultation with affected village committees. Where there is any strong objection from the APs, the PMO and ZUREPIFC will further modify the project design. Table 7-2 shows the public schedule during the implementation stage.

Table 7-2 Public Participation Plan Purpose Mode Time Agencies Involved Topic Hebi PMO, HPRSAD, Distributing the RIB RIB distribution Sep. 2015 All APs Village bulletin community committees board, village Hebi PMO, HPRSAD, Disclosure of LA area, LA announcement meeting Feb. 2016 sub-district offices and All APs compensation rates and community committees resettlement modes, etc. Hebi PMO, HPRSAD, Finding out anything omitted to DMS results Field Dec. 2015 sub-district offices and All APs determine the final impacts; verification investigation community committees preparing sample agreements Determination / Discussing final income Before Hebi PMO, HPRSAD, implementation of Village meeting restoration programs and the implement sub-district offices and All APs income restoration (many times) use of compensation fees -ation community committees programs HPRSAD, labor and social Discussing training needs Mar. 2016 security bureau, sub-district Training program Village meeting Dec. All APs – offices and community 2018 committees

7.2 Grievance Redress

167. Since public participation is encouraged during the preparation and implementation of the RP, no substantial dispute will arise. 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 and effective grievance redress mechanism has been established. The basic grievance redress system is as follows:

7.2.1 Modes of Collection of Grievances and Appeals 1) Grievances, resettlement progress and issues from reports submitted by the township resettlement offices; 2) Construction impacts from construction logs submitted by construction agencies; 3) Coordination issues in LA and HD found by the construction agency through field patrol; 4) Information from the external M&E agency; 5) Letters and visits from APs; 6) Special issues reported during auditing and disciplinary inspection; 7) LA and HD expenses collected from fund disbursement sheets; and 8) Internal monitoring information.

7.2.2 Grievance Redress Procedure Stage 1: If any right of any AP is infringed on in any aspect of LA, HD and resettlement, he/she may report this to village/community committee, which shall record such appeal and solve it together with the village committee or the AP within two weeks. Stage 2: If the appellant is dissatisfied with the disposition of Stage 1, he/she may file an appeal to the Jiuzhou Road or Changjiang Road Sub-district Office after receiving such disposition, which shall make a disposition within two weeks. Stage 3: If the appellant is still dissatisfied with the disposition of Stage 2, he/she may file an appeal to Qibin PMO after receiving such disposition, which shall make a disposition within two weeks. Stage 4: If the appellant person is still dissatisfied with the disposition of Stage 3, he/she may file an appeal to HPRSAD within one month after receiving such disposition, which shall make a disposition within 4 weeks. 168. At any stage, an AP may bring a suit in a civil court directly in accordance with the Administrative Procedure Law of the PRC.

169. Affected persons can also submit complaints to ADB which will first be handled by the project team. If an affected person is still not satisfied and believes he/she has been harmed due to non-compliance with ADB policy, s/he may submit a complaint to ADB’s Accountability Mechanism.12

170. All agencies will accept grievances and appeals from the APs for free, and costs so reasonably incurred will be disbursed from contingencies. During the whole construction period of the Subproject, these appeal procedures will remain effective to ensure that the APs can use them to address relevant issues. The above grievance redress system will be communicated to the APs at a meeting or through the RIB, so that the APs know their right of appeal. In addition, the appeal process will be published to affected population on mass media.

7.2.3 Principles for Grievance Redress 171. All resettlement agencies must conduct field investigation on grievances raised by APs,

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

53 and address them through adequate consultation objectively and fairly in accordance with the principles herein.

172. During resettlement, women may have their special grievances, so each resettlement agency will have at least one female member to handle women’s grievances.

7.2.4 Scope and Modes of Reply 1. Scope of reply 1) Brief description of grievance; 2) Investigation results; 3) Applicable state provisions, and the principles and rates specified in this RP; 4) Disposition and basis 2. Modes of reply 1) For any individual grievance, the reply will be delivered directly to the grievant in writing. 2) For any common grievance, a village meeting will be held or a notice given to the village committee.

173. In whichever mode of reply, the reply materials must be sent to the grievant and submitted to the competent resettlement agency.

7.3 Recording and Feedback of Grievances and Appeals

174. During the implementation of the RP, the resettlement agencies should register and manage appeal and handling information, and submit such information to QDMAO in writing on a monthly basis. The Hebi PMO will inspect the registration of appeal and handling information regularly.

7.4 Contact Information for Grievance Redress

175. The sub-district resettlement offices and village resettlement teams have assigned staff members to collect and accept grievances and appeals from the APs. Their contact information is shown in Table 7-3. The APs may also file appeals with the Hebi PMO directly.

Table 7-3 Contact Information for Grievance Redress Agency Name Address Tel Hebi PMO Liu Jiabin No.235 Xinghe Street, Hebi City 03923314196 Hebi PMO/HPRSAD Gong Shuangjun No.235 Xinghe Street, Hebi City 03923261381 Qibin PMO Li Hui Jiuzhou Road, Qibin District 13939237800 Jiuzhou Road Sub-district Office Lu Yan Huashan Road, Qibin District 13939227733 Changjiang Road Sub-district Office Head Niu Changjiang Road, Qibin District 18539210913

APs

Village/community committees

Contractor S ub-district offices Resettlement issues issues Resettlement Environmental issues issues Environmental Externa Qibin District Land IA / municipal l M&E and Resources environmental agency Bureau / QDNCO

Qibin PMO Qibin PMO

Hebi PMO Hebi PMO

ADB

Community-based Grievance Redress Mechanism for Safeguard Issues Figure 7-1

8 Resettlement Budget

8.1 Resettlement Budget

176. All costs incurred during LA and resettlement will be included in the general budget of the Subproject. Based on prices in July 2015, the resettlement budget of the Subproject is 34.6467 million yuan. The resettlement budget will be updated based on the detailed design and DMS results in December 2015. See Table 8-1. The local government has committed to implement the RP by allocating adequate counterpart budget. All compensation will be paid prior to the implementation of LAR.

Table 8-1 Resettlement Budget (units: 10,000 yuan, %) 2# 3# 4# Tianlai Mianfeng Percent No. Item branch branch branch Total Canal Canal (%) canal canal canal Basic resettlement 1 1146.66 199.06 30.67 444.09 245.31 2065.79 59.62 costs 1.1 Permanent LA 1100.58 193.80 30.40 193.79 196.73 1715.30 49.51 1.1.1 Vegetable land 28.12 0 0 12.77 4.22 45.11 1.30 1.1.2 Irrigated land 180.65 0 0 169.25 100.93 450.83 13.01 1.1.3 Woodland 190.00 114.00 0 0.00 79.15 383.15 11.06 1.1.4 Construction land 688.03 79.80 30.40 0.00 5.70 803.93 23.20 Young crop compensation 2.37 0 0 1.08 0.36 3.81 0.11 (vegetable land) 1.1.5 Young crop compensation 11.41 0 0 10.69 6.37 28.47 0.82 (irrigated land) Temporary land 1.2 0 0 0 3.12 3.36 6.48 0.19 occupation 1.2.1 Irrigated land 0 0 0 3.12 3.36 6.48 0.19 Demolition of 1.3 0 0 0 108.02 0 108.02 3.12 residential houses 1.3.1 Masonry timber 0 0 0 3.80 0 3.80 0.11 Masonry concrete 1.3.2 0 0 0 20.74 0 20.74 0.60 (one story) Masonry concrete 1.3.3 0 0 0 66.68 0 66.68 1.92 (storied) 1.3.4 Moving subsidy 0 0 0 8.00 0 8.00 0.23 1.3.5 Transition subsidy 0 0 0 8.80 0 8.80 0.25 Demolition of 1.4 non-residential 0 0 0 98.27 38.00 136.27 3.93 properties Masonry concrete 1.4.1 0 0 0 75.60 0 75.60 2.18 (one story) Masonry concrete 1.4.2 0 0 0 22.67 0 22.67 0.65 (storied) 1.4.3 Masonry timber 0 0 0 0 38.00 38.00 1.10 1.5 Ground attachments 46.08 5.26 0.27 40.89 7.22 99.72 2.88

Planning and design 2 costs (2% of basic 22.93 3.98 0.61 8.88 4.91 41.31 1.19 costs)

Training costs (1.5% 3 17.20 2.99 0.46 6.66 3.68 30.99 0.89 of basic costs)

4 Taxes on LA 441.17 61.57 0.86 287.69 204.76 996.05 28.75

LA management costs 4.1 32.11 5.57 0.86 12.43 6.87 57.84 1.67 (2.8% of basic costs)

Farmland occupation 4.2 113.54 0 0 98.99 57.19 269.72 7.78 tax Land reclamation 4.3 51.28 0 0 44.71 25.82 121.81 3.52 costs Compensation fees for 4.4 using additional 195.89 56.00 0 89.41 90.53 431.83 12.46 construction land Social security costs 4.5 48.35 0 0 42.15 24.35 114.85 3.31 for LEFs

Supporting fund for 5 vulnerable groups 11.47 1.99 0.31 4.44 2.45 20.66 0.60 (1% of basic costs)

Contingencies (15% 6 172.00 29.86 4.60 66.61 36.80 309.87 8.94 of basic costs)

7 Total 1811.43 299.45 37.51 818.37 497.91 3464.67 100.00 8 Percent (%) 52.28 8.64 1.08 23.62 14.37 100.00 \ Note: External M&E costs have been included in the budget of the institutional capacity building component of the project management consultancy services.

8.2 Resettlement Investment Schedule and Funding Sources

177. All resettlement funds of the Subproject are from local counterpart funds. Before or during project construction, the investment plan will be implemented in stages in order not to affect the production and livelihoods of the AHs. See Table 8-2.

Table 8-2 Resettlement Investment Plan Year 2016 2017 Total Investment (1,000 yuan) 24 ,252.7 10 ,394. 34 ,646.7 Percent (%) 70 30 100

8.3 Disbursement and Management of Resettlement Funds

8.3.1 Disbursement of Resettlement Funds 178. Resettlement funds will be disbursed as follows: All costs related to LA will be included in the general budget of the Subproject. The Qibin District Land and Resources Bureau, and QDNCO will disburse compensation fees based on the compensation rates directly to the affected sub-district offices, village/community committees and AHs via a special account. Land compensation fees, resettlement subsidies and young crop compensation fees will be paid before LA. See Figure 8-1.

QDG Manage Executing Entr Qibin District Land ment, agency ustm and Resources supervisi ent Bureau, QDNCO

Implement ation Application for approval Approval Entering into compensation agreements

Entities / HHs Fund HHs affected payment affected by by HD

Villages/ Households communities and affected by AHs affected by LA temporary land

Figure 8-1 Disbursement Process of Resettlement Funds 8.3.2 Management of Resettlement Funds 179. Land compensation fees and resettlement subsidies should be used in full consultation with the APs; young crop fees will be paid directly to the affected persons; compensation fees for infrastructure and attachments will be paid to the affected entities or individuals.

180. 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: All costs related to resettlement will be included in the general budget of the Subproject; Land compensation fees and resettlement subsidies will be paid up before LA so that all APs can be resettled properly; 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.

181. The resettlement budget may be increased due to the change of the subproject area, the modification of the compensation rates and inflation, but the IA will ensure that compensation fees are fully paid. The budget will be modified as necessary in the updated RP.

9 Resettlement Implementation Schedule

9.1 Principles for Resettlement Implementation

182. According to the implementation schedule, the Subproject has a construction period of 5 years, from July 2016 to March 2020. The basic principles for resettlement implementation are as follows:  LA and HD should be completed at least 3 months prior to the commencement of construction, and the starting time will be determined as necessary for LA, HD and resettlement.  During resettlement, the APs shall have opportunities to participate in the Subproject. Before the commencement of construction, the range of LA will be disclosed, the RIB distributed and public participation activities conducted properly.  All compensation fees will be paid to the affected proprietors directly and fully within 3 months of approval of the compensation and resettlement program for LA. No entity or individual should use such compensation fees on their behalf, nor should such compensation fees be discounted for any reason.

9.2 Resettlement Implementation Schedule

183. The general resettlement schedule of the Subproject has been drafted based on the progress of project construction, LA and implementation. The exact implementation schedule may be adjusted due to deviations in overall project progress. See Table 9-1.

Table 9-1 Resettlement Implementation Schedule No. Task Target Agencies in charge Time Remarks 1 Information disclosure RIB 6 villages/communities in 1.1 Jiuzhou Road and Changjiang PMO, HPRSAD Sep . 2015 Road Sub-districts Disclosure of the RP on 1.2 PMO, HPRSAD Oct. 2015 ADB’s website 2 RP update and resettlement budget approval 2.1 DMS 8 villages/communities in HPRSAD Dec. 2015 Updating the RP based on Jiuzhou Road and Changjiang 2.2 IA, PMO Jan. 2016 the DMS Road Sub-districts RP and budget approval 2.1 34.6467 million yuan QDG, Qibin PMO Jan. 2016 (compensation rates) 3 LA announcement 3.1 Disclosing the updated RP 8 villages/communities in QDG, Qibin PMO Jan. 2016 Releasing the LA Jiuzhou Road and Changjiang 3.2 QDG Feb. 2016 announcement Road Sub-districts 4 Compensation agreement Entering into LA Offocials 8 villages/communities in compensation agreements QDMAO, village/ Mar. 2016 cleared land in 4.1 Jiuzhou Road and Changjiang – and paying compensation community committees Aug. 2016 Aug. 2016 for Road Sub-districts construction Entering into HD QDMAO; Jiuzhou Road Mar.2016 4.2 compensation agreements 10 AHs and Changjiang Road – May. 2016 and paying compensation Sub-district Offices HD Jiuzhou Road and 4.3 10 AHs Changjiang Road May. 2016 Sub-district Offices HD in Dalaidian Village due Jiuzhou Road 4.4 10 AHs Oct 2015 to the old city regeneration Sub-district Offices

No. Task Target Agencies in charge Time Remarks project

5 Resettlement Moving into new housing Jiuzhou Road and 5.1 (residential houses) 8 AHs Changjiang Road Oct. 2016 Sub-district Offices Proper resettlement 4 AHs (2 AHs are both Changjiang Road 5.2 (non-residential properties) affected by residential houses May. 2016 Sub-district Offices demolition) Moving into new housing in Jiuzhou Road 5.3 Dalaidian Village under the 94 HHs Dec. 2015 Sub-district Offices old city regeneration project 6 Livelihood restoration measures Payment of compensation for QDMAO; Jiuzhou Road 6.1 young crops and AHs and Changjiang Road May. 2016 attachments Sub-district Offices Implementation of restoration 6 villages/communities in Jiuzhou Road and Mar. 2016 – 6.2 programs Jiuzhou Road and Changjiang Changjiang Road Dec. 2018 Road Sub-districts Sub-district Offices Implementation of training 6 villages/communities in Qibin District Labor and Mar. 2016 – 6.3 program Jiuzhou Road and Changjiang Social Security Bureau Dec. 2018 Road Sub-districts Implementing supporting 6 AHs in Changjiang Road Civil affairs bureau, Mar. 2016 – 6.4 measures for vulnerable Sub-district PMO Dec. 2018 groups Hiring APs under the 6 villages/communities in PMO, labor and social Mar. 2016 – 6.5 Subproject Jiuzhou Road and Changjiang security bureau, Dec. 2018 Road Sub-districts contractor 7 Capacity building of resettlement agencies 7.1 Training of PMO staff 15 men-times PMO Nov. 2015 Training of officials of 7.2 50 men-times PMO, HPRSAD Dec. 2015 sub-district offices 8 M&E Establishing an internal 8.1 As per the RP PMO, HPRSAD Jan. 2016 monitoring mechanism Internal monitoring reporting From Feb. 8.2 Semiannual PMO 2016 Appointing an external M&E 8.3 One PMO Jan. 2016 agency 8.4 Baseline survey Affected area External M&E agency Feb. 2016 External monitoring reporting Jun. 2016 1 st report Dec. 2016 2 nd report 8.5 Semiannual External M&E agency 3 rd report Jun. 2017 External evaluation reporting Jun. 2018 4 th report 5 th report 8.6 Annual External M&E agency Jun. 2019 (post-evalua tion) 8.7 Completion report PMO, QDMAO Jun. 2020 9 Public consultation QDMAO Ongoing 10 Grievance redress QDMAO Ongoing 11 Disbursement of compensation fees 11.1 - Disbursement to QDMAO Initial funds QDG Feb. 2016 - Disbursement to sub-district 11.2 Initial funds QDMAO Mar. 2016 offices - Disbursement to AHs Jiuzhou Road and End of May. 11.3 Initial funds Changjiang Road 2016 Sub-district Offices

No. Task Target Agencies in charge Time Remarks 12 Commencement of civil construction 12.1 Five Canal Watercourse Improvement in Qibin District QDMAO Jun. 2016

10 Resettlement Monitoring and Evaluation 184. In order to ensure the successful implementation of the RP and realize the objectives of resettlement properly, LA, HD and resettlement activities of the Subproject will be subject to periodic M&E according to ADB’s resettlement policy, including internal and external monitoring.

10.1 Internal Monitoring

185. Internal monitoring will be conducted by the Hebi PMO, HPRSAD, Qibin PMO, and other district authorities concerned. The PMO will develop a detailed internal monitoring plan for LA and resettlement, including: 1) Investigation, coordination of and suggestion on key issues of the resettlement and implementing agencies during implementation; 2) Restoration of the household income of the APs after LA; 3) Resettlement and income restoration of vulnerable groups of the APs after LA;; 4) Payment, use and availability of compensation fees for resettlement; 5) The degree of participation and consultation of the APs during project implementation; 6) Resettlement training and its effectiveness; 7) Progress, outcomes and effectiveness of supplementary actions for the demolition and resettlement in Dalaidian Village developed in DDR; and 8) Establishment, staff training and working efficiency of resettlement management agencies.

186. The Hebi PMO will submit an internal monitoring report to ADB quarterly. Such report should indicate the statistics of the past 6 months in tables, and reflect the progress of LA, resettlement and use of compensation fees through comparison.

10.2 External Monitoring

187. According to ADB’s policies, the PMO will employ a qualified, independent and experienced resettlement agency as the independent resettlement monitoring agency.

188. 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 shall also conduct follow-up monitoring of the displaced persons’ production level and standard of living, and submit M&E reports to the PMO and ADB.

10.2.1 Scope and Methods 1) Baseline survey 189. The external M&E agency will conduct a baseline survey on the villages affected by LA to obtain baseline data on the sample AHs’ production level and living standard. The production level and living standard survey will be conducted semiannually to track variations of the APs’ production level and living standard. This survey will be conducted using such methods as panel survey (sample size: 30% of households affected by LA and 100% of households affected by HD, to be sampled randomly), random interview and field observation to acquire necessary information. A statistical analysis and an evaluation will be made on this basis.

2) Periodic M&E 190. During the implementation of the RP, the external M&E agency will conduct periodic follow-up resettlement monitoring semiannually of the following activities by means of field observation, panel survey and random interview:  Payment and amount of compensation fees;  Training;

 Support for vulnerable groups;  Restoration and rebuilding of infrastructure and special facilities;  Production resettlement and restoration;  Construction and allocation of resettlement housing;  Compensation for lost properties;  Progress, outcomes and effectiveness of supplementary actions for the demolition and resettlement in Dalaidian Village developed in DDR;  Timetables of the above activities (applicable at any time);  Resettlement organization;  Income growth of labor through employment; and  If APs have benefited from the Subproject

3) Public consultation 191. The external M&E agency will attend public consultation meetings held during resettlement implementation to evaluate the effectiveness of public participation.

4) Grievance redress 192. The external M&E agency will visit the affected villages and groups periodically, and inquire the township resettlement offices and implementing agencies that accept grievances about how grievances have been handled. It will also meet complainants and propose corrective measures and advice for existing issues so as to make the resettlement process more effectively.

10.2.2 Reporting 193. The external M&E agency will submit a monitoring or evaluation report to ADB and the PMO semiannually. See Table 10-1.

Table 10-1 M&E Schedule Report Date Re marks 1 Baseline socioeconomic survey report Feb. 2016 2 Monitoring report (No.1) Jun. 2016 incl. baseline survey 3 Monitoring report (No.2) Dec. 2016 4 Monitoring report (No.3) Jun. 2017 5 Evaluation report (No.4) Jun. 2018 6 Evaluation report (No.5) Jun. 2019 Post-evaluation report

10.3 Post-evaluation

194. After project implementation, the resettlement activities will be subject to post-evaluation using the theory and methodology for post-evaluation on the basis of M&E. Successful experience and lessons of LA, HD and resettlement will be evaluated to provide experience that can be drawn on for future resettlement. The post-evaluation agency will prepare terms of reference for post-evaluation to establish a system of evaluation indicators, conduct socioeconomic analysis and survey, and prepare the Resettlement Post-evaluation Report for submission to the Hebi PMO and ADB. The post-evaluation report is expected to be completed in May 2019

Appendixes Appendix 1: Resettlement Due Diligence Report of the Affected Households being Relocated Under the Urban Village Reconstruction Project

1 Background 1.1 Background of the Subproject In order to fully rehabilitate the ecological environment and water quality of the Qihe River watershed, improve urban wastewater collection and treatment significantly, control water pollutants effectively, create a new economic development pattern with environmental protection in mind, and build a national wetland park and ecological demonstration base, HMG has applied for a loan of USD150 million with ADB for the Project. The Project consists of 8 components in 4 categories, which are Qihe River watershed ecological conservation and rehabilitation, integrated management of the main and branch streams of the Qihe River, Qihe River watershed environmental improvement, institutional capacity building. The Subproject is the 5th subproject of the Project, consisting of the Tianlai Canal, Mianfeng Canal, and 2#, 3# and 4# branch canals, with a total length of 11.3km, excavation earthwork of 922,700 m3, backfilling earthwork of 90,900 m3, 14,400 m3 of concrete, masonry retaining walls of 14,400 m3 and landscaping of 29.44 hm2. Within the range of the Tianlai Canal, Mianfeng Canal and 2# branch canal, 94 households has been demolished or will be relocated for Dalaidian old city regeneration program as part of the urban village reconstruction project. The demolition of these 94 HHs is not a part of nor in anticipation of the ADB financed Project. Since this Subproject will use the land after the demolition of these 94 HHs, a DDR of their relocation and resettlement has been prepared to ensure there is no outstanding issues before the commencement of civil works. Before the identification of the Subproject, village reconstruction in urban area had been started in Dalaidian Village, Jiuzhou Road Sub-district in September 2012, and within the range of the Tianlai Canal, Mianfeng Canal and 2# branch canal in March 2013. By the starting time of the Subproject, a small part of HD for this project had not been completed, and all households having completed HD had not been resettled. According to ADB’s social safeguard policy and the memorandum of the ADB preparation mission, a due diligence investigation should be conducted on resettlement activities of this project. NRCR was appointed by the Hebi PMO to prepare the Resettlement Due Diligence Report, which was submitted to ADB for review in July 2015. 1.2 Resettlement impacts Houses of 13,233.05 m2 were to be demolished within the range of the Tianlai Canal, Mianfeng Canal and 2# branch canal, affecting 94 households with 427 persons.

Attached Table 1-1 Identification of Resettlement Impacts Associated project Nature Starting time Resettlement impacts Reason for relation Affecting 94 households Its range includes housing Reconstruction Dalaidian Village with 427 persons, in which land within the range of the of Village in March 2013 Reconstruction 84 households have Tianlai Canal, Mianfeng Urban Area completed HD Canal and 2# branch canal

1.3 Purpose, scope and methods of due diligence In order to supervise and monitor the resettlement progress of Dalaidian Village urban village reconstruction, and ensure that the APs’ lawful rights and interests are protected, NRCR was appointed by the Hebi PMO to conduct a due diligence investigation. The purpose of due diligence is to review the resettlement work of this project, see if it complies with the applicable laws, regulations and policies of the state, Henan Province and Hebi City, find out outstanding issues, and give feasible suggestions. The scope of due diligence includes compensation policies and measures, fund disbursement, effectiveness of resettlement, satisfaction, information disclosure, grievance redress, outstanding issue, and supplementary action plan. The following methods were used during the due diligence investigation: 1) Literature review: collecting and verifying documents related to the urban village reconstruction project and resettlement

2) Fieldwork: including sampling survey, FGD, key informant interview, participatory observation, etc. Sampling survey: A sampling plan was designed, and 20 households having completed HD (24%) and 10 households having not completed HD (100%) were sampled randomly. FGD: FGDs were held with officials of QDNCO, the Jiuzhou Road Sub-district PMO, Dalaidian Village Committee, and representatives of the APs to learn information on resettlement. Key informant interview: Heads of QDNCO, the Jiuzhou Road Sub-district PMO and Dalaidian Village Committee, heads of AHs, women, old people, etc. were interviewed in depth.

2 HD progress As of February 28, 2015, 84 households had entered into HD compensation agreements, and all their demolished houses had been accepted; 10 households had not entered into HD compensation agreements. See Attached Tables 2-1 and 2-2, and Appendix 1.

Attached Table 2-1 HD Impacts in Dalaidian Village and Progress (by Component) Area (m2) Component Progress Masonry Masonry HHs Population Total concrete timber Demolished 4860.88 2551.51 7412.39 47 198 Tianlai Canal Remaining 315.65 281.06 596.71 5 30 Total 5176.53 2832.57 8009.1 52 228 Demolished 2193.15 1120.64 3313.79 27 125 Mianfeng Canal Remaining 335.56 308.56 644.12 5 25 Total 2528.71 1429.2 3957.91 32 150 2# branch canal Demolished 619 .84 646.2 1266.04 10 49 Total 8325.08 4907.97 13233.05 94 427

Attached Figure 1 Residential Houses not Demolished

Attached Table 2-2 HD Impacts in Dalaidian Village and Progress (by Village Group) Area (m2) Village Progress Group Masonry Masonry HHs Population Total concrete timber 1 249.78 0 249.78 2 10 2 2492.3 440.04 2932.34 13 56 3 1173.44 1554.73 2728.17 22 96 4 260.55 446.8 707.35 6 32 Dalaidian Demolished 5 830.53 454.32 1284.85 10 45 6 671.12 110.52 781.64 6 26 7 120.43 0 120.43 1 6 8 239.28 0 239.28 2 13

9 1456.44 1311.94 2768.38 20 82 Non-local 180 0 180 2 6 households Total 7673.87 4318.35 11992.22 84 372 1 104.04 0 104.04 1 6 2 105.06 0 105.06 1 7 3 106.55 181.54 288.09 2 11 Remaining 4 335.56 308.56 644.12 5 25 9 0 99.52 99.52 1 6 Total 651.21 589.62 1240.83 10 55 Total 8325.08 4907.97 13233.05 94 427

3 HD compensation and resettlement implementation 3.1 IA QDNCO is responsible for the implementation of this project, and the Jiuzhou Road Sub-district PMO and Dalaidian Village Committee will participate in compensation and resettlement. All agencies are well equipped and staffed, and operate smoothly. 3.2 Compensation rates The HD compensation rates of this project are based mainly on the Notice of the Hebi Municipal Government on Adjusting Compensation Rates for Ground Attachments and Young Crops on Land Acquired for State Construction (HMG [2012] No.11). See Attached Tables 3-1 and 3-2.

Attached Table 3-1 HD Compensation Rates Benchmark Structural type Unit Remarks rate (yuan) Masonry 1) Purchase prices of resettlement housing: 420 yuan/m2 470 Storied concrete yuan/m2 (30m2, house size) + 600 yuan/m2 (10m2, Masonry timber yuan/m2 400 adjusting size) + 1,200 yuan/m2 (10m2, commercial Masonry size) yuan/m2 420 concrete 2) For residential houses, corridors are counted Single- story in residential size; compensation rate is Masonry timber yuan/m2 380 increased 40 yuan/m2 per 12cm of additional wall thickness. Moving award yuan/HH 10000 After HD and acceptance Other Transition yuan/per compensation 2000 till the date of moving into the resettlement houses subsidy capital/year

Attached Table 3-2 Compensation Rates for Ground Attachments Unit N Remar Type Description Unit price o. ks (yuan) Ordinary, Two posts, precast slab, ordinary plastering, double / 2200 3.3m high leaf Decorated, Two posts, precast slab (or beam), tile finish, double 1 Gates / 3500 4m high leaf, steel High-grade, Two posts, precast slab (or beam), antique or / 5000 4.6m high European style, tile finish, double leaf, steel 2 Enclosing “24” brick m 55 2 2 walls “37” brick m 80 Flat, brick m2 20 3 Grounds Tilted, brick m2 40 Concrete m2 60 Plastic./PVC m 25 Water 4 Dia. <1” m 50 pipes Cast iron Dia. >=1” m 65 Incl. 5 Wells Pumped / 600 pump

3.3 Resettlement measures 1) Residential houses and attachments will be compensated for at the rates specified in Tables 3-1 and 3-2, to be settled upon house allocation. 2) Each resettled person will receive 30 m2 of resettlement housing, 10 m2 of adjusting housing and 10 m2 of commercial housing at 420 yuan/m2, 600 yuan/m2 and 1,200 yuan/m2 (cost price) respectively. 3) The AHs will choose new houses with HD compensation agreements. 4) Each AH may receive a reward of 10,000 yuan in advance upon acceptance of HD. 5) Each AH will receive a transition subsidy of 2,000 yuan per annum until the date of house allocation. 3.4 Progress As of February 28, 2015, all the 84 households having completed HD (after signing the compensation and resettlement agreements since March 2013 ) were living in leased houses and had not been resettled. The AHs in this project will be resettled in Dalaidian Community, with a floor area of 4,50.51 mu and a total building area of 500,100 m2, which is planned to resettle over 2,000 households with over 8,300 persons. The residential buildings are high-rise or multi-storied, and supporting facilities include administrative, commercial, financial, recreational, medical and educational facilities. Dalaidian Community broke ground in November 2012, and the first phase of 39 buildings (total 59 buildings) is expected to be completed in October 2015 and available for residence at the end of 2015, and ensure all AHs by HD get one house.

Attached Figure 3-1 Bird’s-eye View of Dalaidian Community

Attached Figure 3-2 Current Situation of Dalaidian Community

3.5 Evaluation It can be seen that the price of resettlement housing of 420 yuan/m2 is the same as the compensation rate for masonry concrete (single-story), indicating that compensation is based on full replacement cost. Adjusting and commercial size is also offered at cost price, thereby facilitating the resettlement and livelihood development of the AHs. In order that the AHs have sufficient money to buy resettlement housing, HD compensation are being held as credit toward allocation of resettlement housing, in order to reduce the risk of wasting money greatly. The rest part of the compensation after deducting the purchasing cost of the resettlement houses will be paid directly and timely to the affected households.

4 Basic household information and satisfaction survey 4.1 Sampling survey 84 households with 372 persons have completed HD, and 10 households with 55 persons have not. In February 2015, the task force conducted a questionnaire survey on 20 households having completed HD (24%) and 10 households having not completed HD (100%) sampled randomly, and conducted FGDs and key informant interviews. The survey covered population, age structure, educational level and residential conditions mainly. 4.2 Basic information of households having not completed HD 1) Age structure and gender composition The 10 sample households having not completed HD have 55 persons in total, including 3 aged below 16 years, accounting for 5.45%; 41 aged 16-59 years, accounting for 74.55%; and 11 aged 60 years or above, accounting for 20%. See Attached Table 4-1. 2) Educational level Among the 52 adult samples, 13 have received primary school or below education, accounting for 25%; 22 have received junior high school education, accounting for 42.31%; 13 have received senior high or secondary technical school education, accounting for 25%, and 4 have received junior college education, accounting for 7.69%. See Attached Table 4-1. Attached Table 4-0 Demographics of Sample Households Male Female Total Item N Percent (%) N Percent (%) N Percent (%) Age <16 years 1 3.45 2 7.69 3 5.45 16 -59 years 22 75.86 19 73.08 41 74.55 ≥60 years 6 20.69 5 19.23 11 20.00 Subtotal 29 100.00 26 100.00 55 100.00 Educational level (adults) Primary school or below 6 21.43 7 29.17 13 25.00 Junior high school 12 42.86 10 41.67 22 42.31 Senior high school / 7 25.00 6 25.00 13 25.00 secondary technical school Junior college or above 3 10.71 1 4.17 4 7.69 Subtotal 28 100.00 24 100.00 52 100.00

3) Residential conditions The 10 sample households have an average house size of 124.08 m2 per household or 22.56 m2 per capita. These houses were completed during 1985-2010. See Attached Table 4-2.

Attached Table 4-2 Residential Conditions of Households Having not Completed HD Number Average size Average size Per capita Indicator HHs Population Area (m2) of rooms per HH (m2) per capita (m2) rooms Masonry concrete 2 8 335.56 12 167.78 41.95 1.5 (storied) Masonry concrete 3 18 315.65 15 105.22 17.54 0.83 (single-story) Masonry timber 5 29 589.62 24 117.92 20.33 0.83 (single-story) Subtotal 10 55 1240.83 51 124.08 22.56 0.93

4.3 Satisfaction survey The task force conducted a resettlement satisfaction survey on the 20 sample households having completed HD. The results are shown in Attached Table 4-3.

Attached Table 4-3 Satisfaction Survey on Households Having Completed HD Percent (%) Information Answer Resettlement DMS Resettlement Implementation of disclosure and mode results policies resettlement policies transparency Very dissatisfied 0 0 0 0 0 Dissatisfied 5.0 5.0 5.0 0 0 Neither, nor 35.0 65.0 45.0 50.0 50.0 Satisfied 60.0 30.0 45.0 45.0 50.0 Very satisfied 0 0 5.0 5.0 0 Total 100 100 100 100 100

Only 5% of the sample households are dissatisfied with information disclosure and transparency, resettlement, and DMS results, while 95% choose “neither satisfied nor dissatisfied”, “satisfied” or “very satisfied”. 4.4 Evaluation 95% of the households are satisfied with information disclosure and transparency, resettlement, and DMS results, and 100% satisfied with the implementation of resettlement policies.

5 Information disclosure and grievance redress 5.1 Information disclosure and consultation The QDG issued the Notice on Issuing the Measures for urban Village Reconstruction (QDG [2011] No.13) in 2011, and a copy thereof is available in every village involved in this project. Before and during construction, Hebi Daily published reports on this project. See Attached Figures 5-1, 5-2 and 5-3.

Attached Figure 5-1 Policy Document on the Urban Village Reconstruction Project

Attached Figure 5-2 Publicity on the Urban Village Reconstruction Project

Attached Figure 5-3 Reports on the Urban Village Reconstruction Project

During the implementation of this project, QDNCO and the Jiuzhou Road Sub-district PMO conducted extensive consultation with the AHs by means of FGD and interview, so that the AHs are aware of the resettlement policies and measures. 5.2 Grievance redress A sound grievance redress mechanism has been established for this project.  Stage 1: If any AP is dissatisfied with compensation and resettlement, he/she may file an oral or written appeal to the village committee orally or in writing. In case of an oral appeal, the village committee shall handle such appeal and keep written records. Such appeal should be solved within two weeks.  Stage 2: If the AP is dissatisfied with the disposition of Stage 1, he/she may file an oral or written appeal to the Jiuzhou Road Sub-district PMO orally or in writing. In case of an oral appeal, the Jiuzhou Road Sub-district PMO shall handle such appeal and keep written records. Such appeal should be solved within two weeks.  Stage 3: If the AP is dissatisfied with the disposition of Stage 2, he/she may file an appeal to QDNCO after receiving such disposition, which shall make a disposition within two weeks.  Stage 4: If the AP is still dissatisfied with the disposition of Stage 3, he/she may file an

appeal to competent administrative authorities level by level in accordance with the Administrative Procedure Law of the PRC for arbitration after receiving such disposition. The APs may file appeals about any aspect of resettlement, including compensation rates. The above grievance redress system will be communicated to the APs at a meeting or through the RIB, so that the APs know their right of appeal. Mass media will be utilized for publicity, and opinions and advice about resettlement will be compiled into messages for study and disposition by the resettlement agencies. In practice, the compensation rates of this project comply with the applicable regulations and policies, and compensation has been paid fully, so the APs are highly satisfied and there has been no special grievance. Some minor issues, such as registration errors, were corrected on spot. The main expectation of the AHs is that the resettlement housing be completed and handed over as soon as possible. 5.3 Evaluation As of February 28, 2015, no appeal or lawsuit arising from compensation and resettlement had occurred, and the public participation and grievance redress mechanisms of this project had played a good role during resettlement.

6 Supplementary action plan 6.1 Outstanding tasks As of February 28, 2015, the resettlement work of this project had not been completed: 1) 10 households within the range of the Tianlai and Mianfeng Canals had not entered into HD compensation agreements since they want to strive for more extra subsidies or preferential policies of resettlement; 2) The resettlement housing of Dalaidian Community was under construction, and the 84 households having completed HD were living in leased houses and had not been resettled. 6.2 Supplementary action plan In order to complete the resettlement tasks, the Hebi PMO has drafted the following supplementary action plan: 1) The 10 households having not completed HD will be made to enter into HD compensation agreements as soon as possible through further consultation, thereby fully completing HD; 2) The construction of the resettlement housing of Dalaidian Community will be accelerated, so that the resettlement housing can be handed over by the end of 2015; 3) The AHs will be resettled properly after the handover of the resettlement housing; and 4) The implementation of the above supplementary actions will be included in the internal and external M&E system, and reported to the Hebi PMO and ADB seminally until the AHs are fully resettled.

7 Conclusion and suggestions 7.1 Conclusion Urban village reconstruction in Dalaidian Village, Jiuzhou Road Sub-district within the range of the Tianlai Canal, Mianfeng Canal and 2# branch canal has been identified as an associated project of the Subproject. It can be seen that the price of resettlement housing of 420 yuan/m2 is the same as the compensation rate for masonry concrete (single-story), indicating that compensation is based on full replacement cost. Adjusting and commercial size is also offered at cost price, thereby facilitating the resettlement and livelihood development of the AHs. 95% of the households having entered into HD compensation agreements are satisfied with information disclosure and transparency, resettlement, and DMS results, and 100% satisfied with the implementation of resettlement policies. As of February 28, 2015, no appeal or lawsuit arising from compensation and resettlement had occurred. 94 households are to be affected by HD for this project. As of February 28, 2015, 84 households had entered into HD compensation agreements, and 10 households had not. All demolished houses of the 84 households had been accepted. However, since the resettlement housing had not been completed, the AHs had not been resettled. In order that the AHs have sufficient money to buy resettlement housing, HD compensation has not been paid to them, but will be paid upon allocation of resettlement housing, reducing the risk of wasting money greatly. 7.2 Follow-up action plan

The remaining 10 households will enter into HD compensation agreements as soon as possible, thereby fully completing HD. The construction of the resettlement housing of Dalaidian Community will be accelerated, so that the resettlement housing can be handed over and the AHs resettled properly by the end of 2015. The implementation of the above supplementary actions will be included in the internal and external M&E system, and reported to the Hebi PMO and ADB seminally until the AHs are fully resettled.

Appendix 1: Lists of Households Having Completed and not Completed HD

A: Lists of Households Having Completed HD (by Component) Structure and size Head of Populati Village Component Group Masonry Masonry Remarks household on Total concrete timber Zhang xx 4 106.04 106.04 Zhang xx 6 110.12 110.12 Cheng xx 3 120.53 120.53 Guo xx 3 110.03 110.03 Guo xx 3 102.09 102.09 Yang xx 4 117.36 86.07 203.43 Liang xx 4 101 101 Jia xx 4 110.12 110.12 Jia xx 5 119.54 119.54 Jia xx 3 101.52 101.52 9 Jia xx 1 102 102 Jia xx 3 120.06 120.06 Yang xx 5 270.26 270.26 Yang xx 7 110.12 110.12 Two Yang xx 3 208.43 208.43 houses Zhao xx 4 220.52 220.52 Zhao xx 3 230.03 230.03 Liang xx 4 103 103 Xu xx 7 110.54 110.54 Zhang xx 6 109 109 8 Liang xx 7 120.26 120.26 Liu xx 2 180.54 180.54 Liang xx 4 140.96 140.96 Han xx 4 110.64 110.64 Dalaidian Tianlai Yang xx 5 110.43 110.43 Village Canal Yang xx 5 210.52 210.52 Yang xx 4 120.06 120.06 3 Wang xx 6 109 109 Zhang xx 2 110.12 110.12 Yang xx 4 120.03 120.03 Yang xx 3 110.06 110.06 Zhang xx 4 119.52 119.52 Zhang xx 4 110.54 110.54 Yang xx 4 120.26 120.26 Jia xx 4 210.52 210.52 Jia xx 5 120.06 120.06 Jia xx 4 110.02 110.02 Han xx 4 110.52 110.52 Jia xx 4 120.5 120.5 Yang xx 4 110.53 110.53 Two 2 Yang xx 6 119.04 110.5 229.54 houses Jia xx 5 180.55 180.55 Wang xx 2 109 109 Jia xx 4 120.54 120.54 Jia xx 4 110.03 110.03 Two Jia xx 6 1200 1200 houses 1 Yang xx 6 119.26 119.26 Subtotal 47 198 4860.88 2551.51 7412.3

9 1 Yang xx 4 130.52 130.52 3 Zhang xx 6 109 109 Cai xx 6 120.26 120.26 Cai xx 5 109 109 Cai xx 6 110.54 110.54 4 Yang x 4 107 107 Yang xx 5 130.43 130.43 Liu xx 6 130.12 130.12 Cai xx 4 103 103 Cai xx 4 120.52 120.52 Jia xx 6 110.26 110.26 Cai x 4 120.54 120.54 Guo xx 4 210.43 210.43 5 Guo xx 5 130.52 130.52 Mianfeng Guo xx 4 120.12 120.12 Canal Guo xx 4 130.54 130.54 Guo xx 4 119.4 119.4 Huo xx 6 119.52 119.52 Cai xx 6 180.03 180.03 Xu xx 4 120.43 120.43 Liu xx 4 130.06 130.06 6 Liu xx 4 110.52 110.52 Cai xx 4 120.06 120.06 Liu xx 4 120.54 120.54 7 Guo xx 6 120.43 120.43 Non-local 3 90 90 households 3 90 90 3313.7 Subtotal 27 125 2193.15 1120.64 9 2 Zhao xx 4 200.53 200.53 Li xx 6 110.12 110.12 Liu xx 4 120.26 120.26 Yang xx 6 110.52 110.52 Zhang xx 6 103 103 3 2# branch Zhang xx 6 102 102 canal Zhang xx 4 110.52 110.52 Jia xx 6 180.03 180.03 Jia xx 1 110.04 110.04 8 Zhao xx 6 119.02 119.02 1266.0 Subtotal 10 49 619.84 646.2 4 11992. Total 84 372 7673.87 4318.35 22

B: Lists of Households Having not Completed HD (by Component) HD area (m2) Head of Masonry Village Component Group Population Masonry concrete Total household timber Storied Single-story Subtotal Single-story 9 Jia xx 6 0 0 0 99.52 99.52 2 Han xx 7 0 105.06 105.06 0 105.06 Tianlai 1 Zhao xx 6 0 104.04 104.04 0 104.04 Dalaidian Canal Yang xx 5 0 106.55 106.55 0 106.55 3 Village Jia xx 6 0 0 0 181.54 181.54 Subtotal 5 30 0 315.65 315.65 281.06 596.71 Mianfeng Liu xx 9 0 0 0 103.02 103.02 4 Canal Liu xx 4 0 0 0 103.02 103.02

Tang xx 4 0 0 0 102.52 102.52 Tang xx 4 178.52 0 178.52 0 178.52 Tang xx 4 157.04 0 157.04 0 157.04 5 25 335.56 0 335.56 308.56 644.12 Total 10 55 335.56 315.65 651.21 589.62 1240.83

Appendix 2: Resettlement Information Booklet (RIB)

Respected:

I. Basic information In order to fully rehabilitate the ecological environment and water quality of the Qihe River watershed, improve urban wastewater collection and treatment significantly, control water pollutants effectively, create a new economic development pattern with environmental protection in mind, and build a national wetland park and ecological demonstration base, HMG has applied for a loan of USD150 million with ADB for the Project. QDG is the executing agency of the Subproject, and QDMAO is the implementing agency. The Project consists of 8 components in 4 categories, which are Qihe River watershed ecological conservation and rehabilitation, integrated management of the main and branch streams of the Qihe River, Qihe River watershed environmental improvement, institutional capacity building. The Subproject is the 5th subproject of the Project, consisting of the Tianlai Canal, Mianfeng Canal, and 2#, 3# and 4# branch canals, with a total length of 11.3km, excavation earthwork of 922,700 m3, backfilling earthwork of 90,900 m3, 14,400 m3 of concrete, masonry retaining walls of 14,400 m3 and landscaping of 29.44 hm2. II. Resettlement agencies The agencies involved in resettlement management and implementation include:  Hebi Project Leading Group  Hebi PMO  Qibin Subproject Leading Group  HPRSAD  Qibin PMO  QDMAO  Qibin District Land and Resources Bureau  QDNCO  Jiuzhou Road and Changjiang Road Sub-districts  Affected village/community committees  Design agency  External M&E agency  Other agencies concerned: women’s federation, labor and social security bureau

III. 4. Policy frameworks and Compensation Rates of LA and HD

(1)Major Laws and Regulations  Land Administration Law of the PRC (amended on August 28, 2004)  Rural Land Contracting Law of the PRC, effective from March 1, 2003  Regulations on the Implementation of the Land Administration Law of the PRC (Decree No.256 of the State Council), December 27, 1998  Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28)  Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (MLR [2004] No.238)  Notice of the General Office of the State Council on Doing a Good Job in the Employment Training and Social Security of Land-expropriated Farmers (SCO [2006] No.29)  Notice of the Ministry of Labor and Social Security, and the Ministry of Land and Resources on Doing Well in the Social Security of Land-expropriated Farmers Practically (MLSS [2007] No.14)  Real Right Law of the PRC, effective from October 1, 2007  Interim Regulations on Farmland Occupation Tax of the PRC, effective from January 1, 2008  Regulations of the PRC on the Disclosure of Government Information, effective from May 1, 2008  Urgent Notice of the General Office of the State Council on Further Regulating the

Management of Land Acquisition and House Demolition, and Protecting People’s Lawful Rights and Interests Practically (SCO [2010] No.15)  Notice of the Ministry of Land and Resources on Further Improving the Management of Land Acquisition, June 26, 2010  Urgent Notice of the General Office of the Ministry of Land and Resources on Conducting Strict Management to Prevent Illegal Land Acquisition (MLR [2013] No.28)  Notice of the General Office of the Ministry of Land and Resources on Doing a Better Job in Disclosing City- and County-level Land Acquisition Information (MLRO [2014] No.29)  Notice of the General Office of the Henan Provincial Government on Strengthening Land Control and Rigidly Enforcing Land Administration (HMGO [2007] No.33)  Opinions of the Henan Provincial Labor and Social Security Department, Land and Resources Department, and Finance Department on Doing Well in the Employment Training and Social Security of Land-expropriated Farmers (HPLSS [2008] No.19)  Opinions of the Henan Provincial Government on Trials on Social Endowment Insurance for Urban and Rural Residents (HPG [2011] No.58)  Notice of the Henan Provincial Labor and Social Security Department, and Finance Department on Further Strengthening the Management of Special Employment Funds (YCS [2011] No.293)  Notice of the Henan Provincial Labor and Social Security Department, and Finance Department on Issuing the Administrative Measures for Employment and Business Startup of Henan Province (YRSJY [2012] No.25)  Notice of the Henan Provincial Government on Adjusting Location-based Composite Land Prices for Land Acquisition of Henan Province (HPG [2013] No.11)  Notice of the General Office of the Henan Provincial Government on Issuing the Special Corrective Plan for Land Acquisition and House Demolition (HMGO [2014] No.110)  Notice of the Hebi Municipal Government on Adjusting Compensation Rates for Ground Attachments and Young Crops on Land Acquired for State Construction (HMG [2012] No.11)  Notice of the Hebi Municipal Government on Issuing the Measures for Securing Low-rent Housing of Hebi City (HMG [2008] No.33)  Notice of the Hebi Municipal Government on Issuing the Measures for the Implementation of Basic Endowment Insurance for Urban and Rural Residents of Hebi City (HMG [2014] No.34)  Notice of the Hebi Municipal Government on Issuing the Measures for the Implementation of Medical Assistance for Urban and Rural Residents with Difficulty of Hebi City (HMG [2011] No.43)  Notice of the Qibin District Government on Issuing the Administrative Measures for Compensation for Demolished Ground Attachments on Collective Land for State Construction of Qibin District (QDG [2013] No.3)

(2) Entitlement matrix The entitlement matrix has been established in accordance with the applicable policies in this chapter, as shown in Table 1.

Table 1 Entitlement Matrix Type of impact Degree of impact APs Compensation and resettlement policy Compensation rates LA 442.9 mu, including 118.64 mu of 126 households with 579 1) Cash compensation: as per the location-based composite land 1) Rate: 38,000 yuan/mu irrigated land (26.79%), 11.87 mu persons in Xiangjiang price of Henan Province Young crops: 2,400 yuan/mu of vegetable land (2.68%), 100.83 Community, Jiuzhou Road 2) Employment: offering employment services, and public service (irrigated land), 3,200 yuan/mu mu of woodland (22.77%) and Sub-district; and 4 villages jobs, and jobs generated by the Subproject (vegetable land) 211.56 mu of construction land and one community in 3) Free skills training will be offered to the APs. 2) For contracted land, compensation (47.77%) Changjiang Road 4)Social endowment insurance: increasing contribution and will be paid directly and fully to the Sub-district pension levels of basic endowment insurance for urban and rural AHs in cash without being withheld or residents land reallocation; for non-contracted land, LA and young crop compensation is paid directly to the village collective and will be used for public welfare of all the villagers. 3) All compensation will be paid prior to the implementation of LAR. Temporary 316 mu of collective land, incl. 15 40 households with 175 1) Compensation will be paid directly to proprietors based on the Irrigated land: 2,400 yuan/mu per land mu of collective construction land, persons actual period of occupation. annum occupation 264 mu of wasteland and 37 mu of 2) Temporary land occupation will be notified in advance. All compensation will be paid prior to irrigated land with a period of 6 3) The occupied land will be restored by the contractor to original the implementation of LAR. months situation after civil works, and will be monitored by AHs and inspected by local land bureaus.. Demolition of 2,012.74 m2 for masonry concrete 8 households with 44 1) Cash compensation: as per Document HMG [2012] No.11 Masonry concrete (storied): 470 residential and masonry timber houses persons in Xiangjiang 2) Centralized resettlement: Each resettled person will receive 30 yuan/m2 houses Community, Jiuzhou Road m2 of resettlement housing, 10 m2 of additional housing and 10 m2 Moving reward: 10,000 yuan per Sub-district and of commercial housing at 420 yuan/m2, 600 yuan/m2 and 1,200 household in advance upon Daxinzhuang Village, yuan/m2 (cost price) respectively. acceptance of HD Changjiang Road 3) Compensation will not take depreciation in account and the AH Transition subsidy: 2,000 yuan/year Sub-district will have the right to salvage the demolished material free of any per capital charge. Moving subsidy: 1,000 yuan per HH(for two times’ moving) All compensation will be paid prior to the implementation of LAR. Demolition of 3,282.38m2 for masonry concrete 4 households with 23 1) The same rates as residential houses will apply. Masonry concrete (storied): 470 non-residential and masonry timber houses persons in Xiangjiang 2) For the hennery and brick factory, the government will assist it yuan/m2 properties Community, Jiuzhou Road in leasing other land to resume business. Masonry timber (single-story): 380 Sub-district and 3) Compensation will not take depreciation in account and the AH yuan/m2 Daxinzhuang Village, will have the right to salvage the demolished material free of any The relocation subsidy and Changjiang Road charge. suspension loss compensation of the

IV. Complaints and appeals system A grievance redress mechanism has been established as follows: Stage 1: If any right of any AP is infringed on in any aspect of LA, HD and resettlement, he/she may report this to village/community committee, which shall record such appeal and solve it together with the village committee or the AP within two weeks. Stage 2: If the appellant is dissatisfied with the disposition of Stage 1, he/she may file an appeal to the Jiuzhou Road or Changjiang Road Sub-district Office after receiving such disposition, which shall make a disposition within two weeks. Stage 3: If the appellant is still dissatisfied with the disposition of Stage 2, he/she may file an appeal to Qibin PMO after receiving such disposition, which shall make a disposition within two weeks. Stage 4: If the appellant person is still dissatisfied with the disposition of Stage 3, he/she may file an appeal to HPRSAD within one month after receiving such disposition, which shall make a disposition within 4 weeks. At any stage, an AP may bring a suit in a civil court directly in accordance with the Administrative Procedure Law of the PRC.

Affected persons can decide to go through the legal system directly or may decide not to use project level grievance channels. An aggrieved person may also express grievance to the external monitor, who would then report it to Hebi PMO. Alternatively, the aggrieved person(s) may submit a complaint to the ADB project team to try to solve the problem. If good faith efforts are still unsuccessful, and if there are grievances that stemmed from a violation of ADB’s safeguard policy, the affected persons may appeal directly to ADB in accordance with ADB’s accountability mechanism13. Table 2 Contact Information for Grievance Redress Agency Name Address Tel Hebi PMO Liu Jiabin No.235 Xinghe Street, Hebi City 03923314196 Hebi PMO/HPRSAD Gong Shuangjun No.235 Xinghe Street, Hebi City 03923261381 Qibin PMO Li Hui Jiuzhou Road, Qibin District 13939237800 Jiuzhou Road Sub-district Office Lu Yan Huashan Road, Qibin District 13939227733 Changjiang Road Sub-district Office Head Niu Changjiang Road, Qibin District 18539210913

V. Resettlement Implementation Schedule

The general resettlement schedule of the Project has been drafted based on the progress of project construction, LA and implementation. The exact implementation schedule may be adjusted due to deviations in overall project progress. Table 3 Schedule of Resettlement Activities No. Task Target Agencies in charge Time Remarks 1 Information disclosure RIB 6 villages/communities in 1.1 PMO, HPRSAD Sep. 2015 Jiuzhou Road and Changjiang

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

No. Task Target Agencies in charge Time Remarks Road Sub-districts Disclosure of the RP on 1.2 PMO, HPRSAD Oct. 2015 ADB’s website 2 RP update and resettlement budget approval 2.1 DMS 8 villages/communities in HPRSAD Dec. 2015 Updating the RP based on Jiuzhou Road and Changjiang 2.2 IA, PMO Jan. 2016 the DMS Road Sub-districts RP and budget approval 2.1 34.6467 million yuan QDG, Qibin PMO Jan. 2016 (compensation rates) 3 LA announcement 3.1 Disclosing the updated RP 8 villages/communities in QDG, Qibin PMO Jan. 2016 Releasing the LA Jiuzhou Road and Changjiang 3.2 QDG Feb. 2016 announcement Road Sub-districts 4 Compensation agreement Entering into LA Offocials 8 villages/communities in compensation agreements QDMAO, village/ Mar. 2016 cleared land in 4.1 Jiuzhou Road and Changjiang – and paying compensation community committees Aug. 2016 Aug. 2016 for Road Sub-districts construction Entering into HD QDMAO; Jiuzhou Road Mar.2016 4.2 compensation agreements 10 AHs and Changjiang Road – May. 2016 and paying compensation Sub-district Offices HD Jiuzhou Road and 4.3 10 AHs Changjiang Road May. 2016 Sub-district Offices HD in Dalaidian Village due Jiuzhou Road 4.4 to the old city regeneration 10 AHs Oct 2015 Sub-district Offices project 5 Resettlement Moving into new housing Jiuzhou Road and 5.1 (residential houses) 8 AHs Changjiang Road Oct. 2016 Sub-district Offices Proper resettlement 4 AHs (2 AHs are both Changjiang Road 5.2 (non-residential properties) affected by residential houses May. 2016 Sub-district Offices demolition) Moving into new housing in Jiuzhou Road 5.3 Dalaidian Village under the 94 HHs Dec. 2015 Sub-district Offices old city regeneration project 6 Livelihood restoration measures Payment of compensation for QDMAO; Jiuzhou Road 6.1 young crops and AHs and Changjiang Road May. 2016 attachments Sub-district Offices Implementation of restoration 6 villages/communities in Jiuzhou Road and Mar. 2016 – 6.2 programs Jiuzhou Road and Changjiang Changjiang Road Dec. 2018 Road Sub-districts Sub-district Offices Implementation of training 6 villages/communities in Qibin District Labor and Mar. 2016 – 6.3 program Jiuzhou Road and Changjiang Social Security Bureau Dec. 2018 Road Sub-districts Implementing supporting 6 AHs in Changjiang Road Civil affairs bureau, Mar. 2016 – 6.4 measures for vulnerable Sub-district PMO Dec. 2018 groups Hiring APs under the 6 villages/communities in PMO, labor and social Mar. 2016 – 6.5 Subproject Jiuzhou Road and Changjiang security bureau, Dec. 2018 Road Sub-districts contractor 7 Capacity building of resettlement agencies 7.1 Training of PMO staff 15 men-times PMO Nov. 2015 Training of officials of 7.2 50 men-times PMO, HPRSAD Dec. 2015 sub-district offices 8 M&E

No. Task Target Agencies in charge Time Remarks Establishing an internal 8.1 As per the RP PMO, HPRSAD Jan. 2016 monitoring mechanism Internal monitoring reporting From Feb. 8.2 Semiannual PMO 2016 Appointing an external M&E 8.3 One PMO Jan. 2016 agency 8.4 Baseline survey Affected area External M&E agency Feb. 2016 External monitoring reporting Jun. 2016 1 st report Dec. 2016 2 nd report 8.5 Semiannual External M&E agency 3 rd report Jun. 2017 External evaluation reporting Jun. 2018 4 th report 5 th report 8.6 Annual External M&E agency Jun. 2019 (post-evalua tion) 8.7 Completion report PMO, QDMAO Jun. 2020 9 Public consultation QDMAO Ongoing 10 Grievance redress QDMAO Ongoing 11 Disbursement of compensation fees 11.1 - Disbursement to QDMAO Initial funds QDG Feb. 2016 - Disbursement to sub-district 11.2 Initial funds QDMAO Mar. 2016 offices - Disbursement to AHs Jiuzhou Road and End of May. 11.3 Initial funds Changjiang Road 2016 Sub-district Offices 12 Commencement of civil construction 12.1 Five Canal Watercourse Improvement in Qibin District QDMAO Jun. 2016

VI. Booklet clarifications

The Qibin District PMO, the implementing agency for the Project，will hold the right of clarifications of above resettlement information.

Thank you for your support to this Project!

Qibin District ADB-financed Project Management Office

September, 2015

Appendix 3: Fieldwork Photos

FGD with APs

Starting point of the 3# branch canal

Questionnaire survey

Field survey