Resettlement Plan

Project Number: 44019-013 August 2017

PRC: Hubei Huangshi Urban Pollution Control and Environmental Management Project

Prepared by Huangshi Municipal Government for the Asian Development Bank.

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

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

ADB-financed Hubei Huangshi Urban Pollution Control and Environmental Management Project (Mid-term Adjustment)

Resettlement Plan

Huangshi Municipal Government (HMG)

Huangshi PMO

MAY 2017

Contents

1. Overview of the Project ...... 7

1.1 Background of the Project ...... 7

1.2 Components and Resettlement Impacts ...... 7

1.3 Measures to Reduce Resettlement ...... 10

1.4 Estimated Resettlement Budget and Implementation Plan ...... 10

2. Impacts of the Project ...... 11

2.1 Scope of Impact Survey of LA and HD ...... 11

2.2 LA and HD Impacts ...... 12

2.2.1 Permanent LA ...... 12

2.2.2 Temporary Land Occupation ...... 13

2.2.3 Demolition of Residential Houses ...... 14

2.2.4 Demolition of Non-residential Properties ...... 17

2.2.5 Ground Attachments ...... 19

2.3 Other Impacts of the Project ...... 20

2.3.1 Affected Population ...... 20

2.3.2 Vulnerable Groups ...... 21

3. Socioeconomic Profile...... 23

3.1 Socioeconomic Profile of the Project Area ...... 23

3.1.1 Huangshi City ...... 23

3.1.2 Affected Villages / Communities ...... 23

3.2 Socioeconomic Profile of the Affected Population ...... 24

3.2.1 Permanent LA ...... 24

3.2.2 Affected Population ...... 25

3.2.3 Willingness Survey ...... 28

4. Legal Framework and Policies ...... 31

4.1 Laws, Regulations and Policies Applicable to Resettlement ...... 31

II 4.2 Objective and Principles of Resettlement ...... 31

4.2.1 Objective ...... 31

4.2.2 Principles ...... 31

4.3 Compensation Rates ...... 32

4.3.1 Permanent LA ...... 32

4.3.2 Demolition of Houses and Attachments ...... 32

4.3.3 Permanent Occupation of State-owned Land ...... 35

4.3.4 Temporary Occupation of State-owned Land ...... 35

4.4 Attachments and Scattered Trees ...... 35

4.5 Fund Disbursement and Schedule ...... 37

4.6 matrix of right ...... 37

5. Resettlement and Income Restoration ...... 41

5.1 Resettlement Program for Permanent LA ...... 41

5.1.1 Cash Compensation ...... 41

5.1.2 Endowment Insurance for LEFs ...... 42

5.1.3 Nonagricultural Employment Promotion ...... 43

5.1.4 Skills Training ...... 44

5.2 Compensation for Fishpond Contractors ...... 45

5.2.1 Basic Information ...... 45

5.2.2 Compensation and Resettlement ...... 45

5.3 Resettlement Program for Demolished Residential Houses ...... 46

5.3.1 Cash Compensation ...... 46

5.4 Resettlement Program for Demolished Non-residential Properties ...... 49

5.5 Women’s Development ...... 51

5.6 Assistance Measures for Vulnerable Groups ...... 51

5.7 Restoration Program for Infrastructure and Ground Attachments ...... 52

6. Organizational Structure ...... 53

6.1 Resettlement Implementation and Management Agencies ...... 53

6.1.1 Organizational Setup ...... 53

III 6.1.2 Organizational Responsibilities ...... 53

6.1.3 Organizational Chart ...... 55

6.2 Staffing and Equipment ...... 56

6.2.1 Staffing ...... 56

6.2.2 Equipment ...... 57

6.2.3 Organizational Training Program ...... 57

7. Public Participation and Grievance Redress...... 60

7.1 Public Participation ...... 60

7.1.1 Public Participation at the Preparation Stage ...... 60

7.1.2 Public Participation at the Implementation Stage ...... 61

7.2 Grievance Redress ...... 62

8. Resettlement Budget ...... 67

8.1 Resettlement Budget ...... 67

8.2 Resettlement Investment Schedule and Funding Sources ...... 67

8.3 Disbursement and Management of Resettlement Funds ...... 73

8.3.1 Disbursement of Resettlement Funds ...... 73

8.3.2 Management of Resettlement Funds ...... 73

9. Resettlement Implementation Plan ...... 75

9.1 Principles for Resettlement Implementation ...... 75

9.2 Resettlement Implementation Schedule ...... 75

10. Monitoring and Evaluation ...... 79

10.1 Internal Monitoring ...... 79

10.2 External Monitoring ...... 80

10.2.1 Scope and Methods ...... 80

10.2.2 Reporting ...... 81

10.3 Post-resettlement Evaluation ...... 82

Appendix 1: RIB ...... 83

Appendix 2: TORs for External M&E ...... 99

Appendix 3: Minutes of Public Participation Meetings ...... 105

IV Appendix 4: Identification of Vulnerable Households ...... 106

Appendix 5: Small-amount Loan Incentive Mechanism of Huangshi City (Abstract) ...... 109

Appendix 6: Fieldwork Photos ...... 110

Appendix 7: Note on Resettlement for Lake Ecology Rehabilitation (Phase 2) ...... 111

Appendix 8: Reply of the Huangshi Municipal Land and Resources Bureau on Preliminary Land Examination for Downstream Wetland Construction ...... 112

Appendix 9: Laws, Regulations and Policies Applicable to Resettlement ...... 114

Appendix 10: Interview Minutes ...... 121

Appendix 11: Summary of HD Compensation Fees in Xisaishan District ...... 127

Appendix 12: Summary of HD Compensation Fees in Xialu District ...... 135

List of tables

table 1-1 Summary of Adjustments to Components ...... 8

table 1-2 Summary of Adjusted Components ...... 9

table 2-1 Range of Resettlement Impacts ...... 11

table 2-2 Permanently Occupied State-owned Land...... 12

table 2-3 State-owned Land to be Permanently Occupied ...... 13

table 2-4 Land to be Temporarily Occupied...... 13

table 2-5 Impacts of Demolition of Residential Houses ...... 14

table 2-6 Impacts of Demolition of Non-residential Properties ...... 18

table 2-7 Affected Ground Attachments ...... 19

table 2-8 Summary of Affected Population ...... 21

table 2-9 Summary of Affected Vulnerable Groups ...... 22

table 3-1 Socioeconomic Profile of Huangshi City (2015) ...... 23

table 3-2 Socioeconomic Profile of the Affected Communities...... 24

table 3-3 Summary of Acquired Collective Land (by group) ...... 25

table 3-4 Summary of Acquired Collective Land (by component) ...... 25

table 3-5 Basic Sample Information ...... 25

table 3-6 Income and Expenditure of AHs in Xialu District ...... 27

V table 3-7 Income and Expenditure of AHs in Xisaishan District ...... 27 table 3-8 Demographics of Sample Population ...... 28 table 3-9 Statistics of Willingness Survey on Households affected by HD ...... 29 table 3-10 Statistics of Willingness Survey on Households affected by LA ...... 29 table 4-1 LA Compensation Rates ...... 32 table 4-2 HD Compensation Rates ...... 33 table 4-3 Benchmark Compensation Rates for Main Houses ...... 34 table 4-4 Benchmark Compensation Rates for House Attachments ...... 34 table 4-5 Compensation Rates for Exterior Decoration of Main Houses ...... 34 table 4-6 Reward for Main Houses ...... 35 table 4-7 Compensation Rates for Attachments ...... 35 table 4-8 Compensation Rates for Trees ...... 37 table 4-9 Matrix of right ...... 39 table 5-1 LA Compensation Rates ...... 42 table 5-2 Summary of Expected Employment under the Project ...... 44 table 5-3 Resettlement Program for Demolished Non-residential Properties ...... 49 table 5-4 Support for Vulnerable Groups ...... 52 table 6-1 Resettlement Agencies and Staffing ...... 56 table 6-2 Staffing and Working Schedule of Resettlement Agencies ...... 57 table 6-3 Equipment of Resettlement Agencies ...... 57 table 6-4 Resettlement Training Schedule ...... 58 table 7-1 Public Participation at the Preparation Stage...... 60 table 7-2 Public Participation Plan ...... 61 table 7-3 Registration Form of Grievances and Appeals...... 63 table 7-4 Contact Information for Grievances and Appeals ...... 64 table 8-1 Resettlement Investment Plan ...... 68 table 8-2 Resettlement Budget ...... 69 table 9-1 Resettlement Implementation Schedule ...... 75 table 10-1 Resettlement M&E Schedule ...... 82

VI

List of figure

Figure 2-1 Current Situation of Collective Land to be Acquired ...... 12

Figure 2-2 Current Situation of Residential Houses to be Demolished ...... 17

Figure 2-3 Current Situation of Non-residential Properties to be Demolished ...... 19

Figure 5-1 Current Situation of Land to be Acquired ...... 42

Figure 5-2 List of Subjects of Endowment Insurance in Baitayan Village ...... 43

Figure 5-3 Employment Information Release in a Community ...... 44

Figure 5-4 Location of Huangjinshan Development Zone ...... 46

Figure 5-5 Final Effects of the Jinguangsha Resettlement Community ...... 48

Figure 5-6 Location of the Jinguangsha Resettlement Community ...... 48

Figure 5-7 Items around the sale of real estate distribution map ...... 49

Figure 6-1 Organizational Chart ...... 56

Figure 7-1 LA Announcement and HD Appraisal Result Disclosure ...... 62

Figure 7-2 Community-based Grievance Redress Mechanism ...... 65

Figure 8-1 Resettlement Disbursement Flowchart ...... 73

VII Abbreviations

ADB - Asian Development Bank

AH - Affected Household

AP - Affected Person

DMS - Detailed Measurement Survey

FGD - Focus Group Discussion

HD - House Demolition

HMG - Huangshi Municipal Government

Huangshi Urban Construction Investment HUCIC - Company

LA - Land Acquisition

LEF - Land-expropriated Farmer

M&E - Monitoring and Evaluation

MLS - Minimum Living Security

PMO - Project Management Office

PRC - People’s Republic of China

RIB - Resettlement Information Booklet

RP - Resettlement Plan

Units

Currency unit = Yuan (CNY)

1.00 yuan = $0.15

1 hectare = 15 mu

VIII

Executive Summary

1. Introduction

In 2012, HMG applied for a loan of $100 million with ADB for the implementation of the Project. By the end of February 2017, 9 out of the 35 contracts had been completed, 14 were being implemented, 3 were under or after bidding, and the 5 contracts of River-lake Connection had been cancelled. After the adjustment, the Project consists of 1) Downstream Wetland Construction; 2) Sewer Network Construction; 3) Lake Ecology Rehabilitation (Phase 2); 4) Waste Transfer Station Equipment Upgrading and Vehicle Purchase; and 5) Emergency Drainage Equipment. HMG is the executing agency of the Project, and Huangshi Urban Construction Investment Company (HUCIC) is the implementing agency (IA). The Project has a construction period of 26 months, from October 2017 to December 2019.

The resettlement budget of the Project is 233.8053 million yuan, accounting for 22.44% of the gross investment in the Project of 1.0421194 billion yuan. Resettlement will begin in July 2017 and be completed in December 2020.

2. Range and impacts of resettlement

The Project will affect Xialu, Xisaishan and Huangshigang Districts. 1,590.29 mu of collective land will be acquired for the Project, including 868.58 mu of lake surface (76.3%), 363.66 mu of urban and industrial land (22.87%), and 355.60 mu of water facility land (0.19%), affecting 302 households with 1,291 persons. 25.45 mu of state-owned land will be occupied permanently, and state-owned roads of 347.26 mu will be occupied temporarily.

Residential houses of 7,751.46 m2 will be demolished for the Project, including 3,652.54 m2 in masonry concrete structure, 4,036.62 m2 in masonry timber structure, and 62.3 m2 in other structure; non-residential properties in residential areas of 11,823.55 m2 will be affected, including 644.09 m2 in masonry concrete structure, 10,909.03 m2 in masonry timber structure and 270.43 m2 in other structure, affecting 81 households with 363 persons; 12 entities will be affected by HD, with a total demolition area of 12,525.83 m2, including 1,065.92 m2 in masonry concrete structure (8.51%), 10,534.64 m2 (84.10%) in masonry timber structure and 925.27 m2 in steel structure (7.39%), affecting 42 persons. The Project will also affect some ground attachments.

3. Policy framework and entitlements

This RP is based on the Land Administration Law of the PRC (2004), the Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28), the Regulations on House Acquisition on State-owned Land and Compensation (Decree No.590 of the State Council), the Uniform AAOV Rates and Location-based Composite Land Prices for Land Acquisition of Hubei Province (HPG [2014] No.12), and ADB’s Safeguard Policy Statement (2009).

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According to the above policies, and in consultation with local governments and affected persons (APs), the resettlement principles of the Project are: 1) The APs are granted compensation and rights that can at least maintain or even improve their livelihoods in the absence of the Project; 2) The APs are given compensation and assistance in resettlement whether legal title is available or not; 3) 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; 4) The APs fully understand their entitlements, the method and standard of compensation, the livelihood and income restoration program, and the project schedule, and participate in the implementation of the RP; 5) No land should be acquired before the APs receive resettlement land or sufficient compensation; 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 project; 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

Compensation for permanent LA includes land compensation fees, resettlement subsidies and young crop compensation fees. For LA in Xisaishan and Xialu Districts, location-based composite land price is 49,000 yuan/mu, and young crop compensation rate is 1,750 yuan/mu for cultivated land or 2,100 yuan/mu for vegetable land.

For the affected fishpond contractors, the PMO will compensate for affected fishery facilities, fry losses, etc. reasonably, where the compensation rate for fishery facilities is 1,000 yuan/mu and that for fries 1,573 yuan/mu. In addition, the PMO will take other livelihood restoration measures for them. Demolished residential houses will be subject to cash compensation and property swap. In case of cash compensation, compensation will be fixed through market appraisal, but not less than the benchmark rates of the Project: 4,380 yuan/m2 for reinforced concrete structure, 4,180 yuan/m2 for masonry concrete structure and 4,080 yuan/m2 for masonry timber structure. In case of property swap, each AH will settle the price difference between the demolished house and the resettlement house. The resettlement community is Jinguangsha Community, within 2.5km from the demolished houses.

Demolished non-residential properties will be compensated for at a time based on market appraisal at rates not less than the benchmark rates: 900 yuan/m2 for masonry concrete structure, 700 yuan/m2 for masonry timber structure, 500 yuan/ m2 for simple properties and 150 yuan/ m2 for simple sheds. The PMO will assist the affected fishpond contractors and enterprises operating normally in leasing land out of the project area, and offer equipment relocation subsidies and compensation for losses from production suspension.

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5. Vulnerable groups and women

The Project will affect 4 vulnerable households with 6 persons, including old people living alone, MLS households and households affected by disability. Except that these vulnerable households will be resettled as planned, the PMO will also offer extra subsidies, employment support, MLS, medical assistance and other assistance measures to help them restore production and living conditions as soon as possible.

During project implementation, at least 30% of women will obtain unskilled jobs. In addition, women will receive equal pay for equal work like men do. However, employment of child labor is prohibited. Priority will be given to female labor in terms of skills training so as to ensure that their economic status and income. The compensation agreement must be signed by the couple. A special FGD for women will be held to introduce resettlement policies and improve their awareness.

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 Project, such as meeting, interview, FGD, public participation meeting and community consultation, and their opinions have been well incorporated into this RP. The RP will be published on ADB’s website after approval by ADB, and the Resettlement Information Booklet (RIB) will be distributed to the APs or groups along.

7. Grievances and appeals

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 Project may be from collective LA and HD. Correspondingly, the Huangshi Project Leading Group, Huangshi PMO, Resettlement Department, and the affected sub-district offices and 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 the contingencies.

8. Organizational structure

HMG is the executing agency of the Project, and HUCIC is the IA. The Huangshi PMO is responsible for the implementation of this RP together with the affected sub-district offices and community committees.

9. Monitoring and evaluation

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

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Resettlement Department of the Huangshi PMO and other agencies concerned (e.g., land and resources bureau, and labor and social security bureau), and an internal monitoring report will be submitted to ADB quarterly. The Huangshi PMO will appoint an independent agency to conduct external monitoring and evaluation (M&E) semiannually, and M&E costs will be included in the resettlement budget. A comprehensive survey will be completed before resettlement. The baseline report (No.1 M&E report) will be submitted in August 2017, and an external M&E report will be submitted to ADB semiannually until project completion.

10. Resettlement budget

The resettlement budget of the Project is 233.8053 million yuan, accounting for 22.44% of the gross investment in the Project of 1.0421194 billion yuan, including LA costs of 78.8826 million yuan, accounting for 33.74%; HD costs of 104.938 million yuan, accounting for 44.88%; compensation fees for ground attachments of 10.8136 million yuan, accounting for 4.63%; and other costs (including resettlement planning and design costs, M&E costs, implementation management costs, training costs, LA taxes, contingencies, etc.) of 39.1712 million yuan, accounting for 16.75%.

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Glossary

Affected People (households) affected by project-related changes in use of person (or land, water or other natural resources household)

Money or payment in kind to which the people affected are entitled in Compensation order to replace the lost asset, resource or income

Range of measures comprising compensation, income restoration, transfer assistance, income substitution, and relocation which are Entitlement due to affected people, depending on the nature of their losses, to restore their economic and social base

Income Reestablishing income sources and livelihoods of people affected restoration

Rebuilding housing, assets, including productive land, and public Resettlement infrastructure in another location

Loss of physical and non-physical assets, including homes, Resettlement communities, productive land, income-earning assets and sources, impact subsistence, resources, cultural sites, social structures, networks and ties, cultural identity, and mutual help mechanisms

A time-bound action plan with budget setting out resettlement Resettlement strategy, objectives, entitlement, actions, responsibilities, monitoring plan and evaluation

Vulnerable Distinct groups of people who might suffer disproportionately from

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group resettlement effects

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1. Overview of the Project

1.1 Background of the Project

In order to promote Huangshi City’s environmental improvement and urban development, HMG has applied for a loan with ADB for integrated water pollution control. The Project formerly consisted of Wastewater Collection and Treatment, Inland Lake Ecological Rehabilitation and River-lake Connection, Sludge Treatment and Disposal, Solid Waste Management, and Capacity Building and Institutional Strengthening.

Due to policy changes, etc., River-lake Connection cannot be implemented, and the Project has been adjusted. The gross investment in the Project is 1.0421194 billion yuan, including an ADB loan of $54.3826 million (equivalent to 375.24 million yuan), accounting for 36.01%, domestic bank loans of 340 million yuan, accounting for 32.63%, and government investments of 326.8794 million yuan, accounting for 31.36%.

HMG is the executing agency of the Project, and HUCIC is the IA.

1.2 Components and Resettlement Impacts

Huangshi City’s urban development is faced with many challenges, including the deterioration of the ecological environment around Cihu, Qingshan and Qinggang Lakes due to industrial wastewater discharge, water pollution of the Yangtze River, and disorderly land use. The Project will help improve the living and ecological environment, and promote economic development. According to the Master Urban Development Plan of Huangshi City, 10 wastewater control measures will be taken for the Yangtze River watershed, and the above 3 lakes in the next 3 years to meet the national Class III water quality standard, and realize flow regulating, climate regulating, sightseeing, tourism and other functions; wetlands and a sound urban sewer network will be established, and the efficiency of solid waste disposal improved in the next 5 years.

The Project is both an urban infrastructure construction project and an environmental one. It will generate significant environmental, social and economic benefits, including: 1) improving the tourism environment and urban image; 2) promoting economic and social development; and 3) improving the living environment.

After the adjustment, the Project consists of: 1) Downstream Wetland Construction; 2) Sewer Network Construction; 3) Lake Ecology Rehabilitation (Phase 2); 4) Waste Transfer Station Equipment Upgrading and Vehicle Purchase; and 5) Emergency Drainage Equipment, in which Components 1, 2 and 3 involve LA and/or HD. See Table 1-2.

According to the latest Feasibility Study Report (FSR), the Project has been adjusted as

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follows:

1. Wastewater Collection and Treatment

1) Reduction of sewer lines by 25% or 23km (12km in the Cihu lake area, 3km in the Qingshan and Qinggang Lake areas, and 8km in the Hexi area) as compared to the former FSR due to changes in administrative division and design;

2) Addition of sewer lines by 49.07km (24.31km in Tieshan District, 10.26km in Laoxialu District and 14.5km in Tuanchengshan District);Addition of sewer lines is to Sewage treatment plant in the northwest of Dayecheng, and the project is in charge of Tieshan District and Xialu District.

3) Emergency Drainage Equipment: purchase of specialized drainage equipment to improve productivity and avoid secondary pollution

2. Inland Lake Ecological Rehabilitation and River-lake Connection

1) Cancellation of River-lake Connection: In November 2016, HMG agreed to cancel River-lake Connection, which was approved by a special ADB mission in January 2017.

2) Expansion of the artificial wetland

The treatment capacity of the Tuanchengshan WWTP for the artificial wetland has been expanded from 40,000 t/d in the former FSR to 80,000 t/d for 2020.

3. Lake Ecology Rehabilitation (Phase 2)

According to the ADB Memorandum in January 2017, the Qinggang Lake part of Lake Ecology Rehabilitation (Phase 2) would be fully cancelled.

table 1-1 Summary of Adjustments to Components

Variation from the Component Former FSR Adjustment former FSR

Pollution source census, GIS, Reduction of sewer 1) Addition of sewer lines drainage monitoring system, lines by 25% or 23km by 49.07km (24.31km in sewer line construction, Hexi (12km in the Cihu lake Tieshan District, 10.26km WWTP construction, etc. area, 3km in the in Laoxialu District and Wastewater Qingshan and 14.5km in Tuanchengshan Collection Budget: 201.1127 million yuan Qinggang Lake areas, District); and and 8km in the Hexi Treatment area) 2) Purchase of specialized drainage equipment 3) Adjusted budget: 109.2782 million yuan

Inland Lake Dredging and sludge disposal 1) Cancellation of 1) Expansion of the Cihu Ecological of Qingshan, Qinggang and River-lake Lake artificial wetland to Rehabilitatio Cihu Lakes, ecological Connection; 80,000 t/d, with a floor area n and rehabilitation, Cihu Lake of 98.2ha River-lake artificial wetland and river-lake 2) Cancellation of Connection connection ecological 2) Ecological rehabilitation rehabilitation of of Qinggang Lake (Phase

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Budget: 663.1207 million yuan Qinggang Lake 2) 3) Adjusted budget: 439.8485 million yuan

Construction of a sludge Implemented as No adjustment disposal plant for Cihu Lake, planned Sludge Tuanchengshan District, Treatment Huangjinshan and Hexi and Disposal WWTP Budget: 28.4838 million yuan

Construction of waste transfer Implemented as 1) Upgrading of waste stations and environmental planned transfer station facilities sanitation facilities, purchase of vehicles 2) Purchase of upgraded Solid Waste vehicles Managemen Budget: 100.9647 million yuan t 3) Purchase of leachate treatment equipment 4) Adjusted budget: 36.77 million yuan

Capacity Capacity building, topical Implemented as No adjustment Building and studies, etc. planned Institutional Strengthenin g

table 1-2 Summary of Adjusted Components

Resettlement No. Component Composition Document impacts

1. Downstream Wetland Construction: 1) Phase 2: surface and sub-surface flow wetlands, tail water reflux and lifting, water outlet pump, flood control; 2) Phase 3: sub-surface flow Downstream wetland, tail water reflux, water outlet pump, well 1 Wetland LA and HD RP

Construction 2. Buildings 3. Landscape: roads, square, wood platform, temporary and permanent car parks, bridges, landscaping, gallery, arts, toilets, urban furniture, indication system 1. Sewer system of Tieshan District: 1) Zone A: covering Tieshan main urban area, Xiushan Road area and Tieshan east area, totaling 851.05ha; 2) Zone B: South Logistics Park and Mulan Industrial Park, totaling 528.78ha; 3) Zone C: Sancha Road Community, totaling 376.54ha; 4) Zone D: Temporary land Dongfang Mountain Scenic Zone and Huangshi National Mine occupation, and Sewer Network permanent 2 Park, totaling 1059.89ha RP Construction occupation of 2. Sewer system of Laoxialu District: covering Fenglieshan, state-owned Jiangyang, Wangshou, Datang, Tuanjie, Kangning, Shengli, land Shenniu and Laoxialu Communities, totaling 11,261m 3. Sewer system of Tuanchengshan District: covering Qinglongshan, Chenbaizhen, Hangzhou East Road, Huangguling, Jianlouxia, Ke’ershan, Ma’anshan, Shiliuyuan,

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Xiaojiapu and Yuanjiafan Communities, totaling 14,541m

Daquan Road entrance of Qinggang Lake Experience and leisure area Permanent Lake Ecology Lakefront viewing area occupation of 3 Rehabilitation RP state-owned (Phase 2) ecological area land Suoqian Port reconstruction work Qingshan Lake Bridge 1. Purchase of equipment for waste transfer stations, including old equipment replacement, vehicle upgrading and Waste Transfer purchase of leachate treatment equipment Station Equipment 4 2. Purchase of cleaning vehicles None Upgrading and Vehicle 3. Purchase of gardening vehicles Purchase 4. Purchase of water surface waste collection equipment for Cihu Lake

Emergency Purchase of specialized drainage equipment 5 Drainage None Equipment

1.3 Measures to Reduce Resettlement

HUCIC and the project proposal preparation agency have chosen the project site carefully based on the requirements of ADB’s policy on involuntary resettlement to minimize LA and HD. In addition, compensatory measures will be taken for those inevitably affected to minimize negative impacts. Sewer lines will be constructed along existing roads, and construction scheduled rationally taken to reduce traffic impacts.

1.4 Estimated Resettlement Budget and Implementation Plan

Based on prices in May 2017, the resettlement budget of the Project is 233.8053 million yuan, including land compensation, resettlement subsidy, HD compensation, ground attachment compensation, compensation for losses from production suspension, etc.

The planned construction period of the Project is 26 months (from October 2017 to December 2019), in which Downstream Wetland Construction, Sewer Network Construction and Lake Ecology Rehabilitation (Phase 2) will be constructed from October 2017 to December 2019, and Waste Transfer Station Equipment Upgrading and Vehicle Purchase, and Emergency Drainage Equipment from October 2017 to December 2018. Correspondingly, resettlement will begin in July 2017 and be completed in December 2020.

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2. Impacts of the Project

2.1 Scope of Impact Survey of LA and HD

In March 2017, HUCIC and the Huangshi PMO appointed Wuhan Engineering Design & Research Institute Co., Ltd. to prepare and submit the first draft of the FSR.

In March 2017, the task force was appointed by the Huangshi PMO to conduct a preliminary socioeconomic survey in the project area using such methods as literature review, key informant interview, FGD and sampling survey, covering household population, land resources, housing conditions, household economic status, and expected resettlement modes.

According to the FSR and the survey, the Downstream Wetland Construction component will affect Baitayan Village, Chengyue Sub-district, Xisaishan District, and Chenbaizhen, Jianlouxia and Ke’ershan Communities, Tuanchengshan Sub-district, Xialu District; the Sewer Network Construction component will affect urban roads in Tieshan and Xialu Districts; the Lake Ecology Rehabilitation (Phase 2) component will affect Huangshigang District. See Table 2-1.

table 2-1 Range of Resettlement Impacts

No. Component District Sub-district (area) Village / community Group Remarks Chengyue Xisaishan Baitayan Village —— Sub-district

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Chen Baizhen Community 3 Downstream Permanent 1 Wetland 9 LA Construction Tuanchengshan Xialu - 5 Sub district Jianlouxia Community 6

5 Ke’ershan Community 7

Tieshan old area

Xiushan Road area Tieshan —— Tieshan east area

Tieshan west area Temporary Sewer land 2 Network Fenglieshan, Jiangyang, Wangshou, —— occupation & Construction Datang, Tuanjie, Kangning, Shengli, Laoxialu area permanent LA Shenniu and Laoxialu Communities

Xialu Qinglongshan, Chenbaizhen, Hangzhou Tuanchengshan East Road, Huangguling, Jianlouxia, area Ke’ershan, Ma’anshan, Shiliuyuan, Xiaojiafu and Yuanjiafan Communities

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Lake Ecology Huangshi Huahu Permanent 3 Rehabilitation —— —— -gang Development Zone LA (Phase 2)

2.2 LA and HD Impacts

2.2.1 Permanent LA

1) Collective land

Only the Downstream Wetland Construction component involves the permanent acquisition of collective land. 1,590.29 mu of collective land will be acquired, including 2.45 mu of woodland (0.15%), 868.58 mu of lake surface (76.3%), 363.66 mu of urban and industrial land (22.87%), and 355.60 mu of water facility land (0.19%). See Error! Reference source not found..

table 2-2 Permanently Occupied State-owned Land

Lake Urban and Water Woodland Village / surface industrial facility land Total (mu) Remarks District (mu) community (mu) land (mu) (mu)

Baitayan Xisaishan 868.58 57.92 168.40 1094.91 Village

Ke’ershan 30.90 7.84 38.74 5, 7 Community

Jianlouxia Xialu 100.57 2.95 103.52 5, 6 Community

Chenbaizhen 2.45 174.27 176.41 353.12 1, 3, 9 Community

Total 2.45 868.58 363.66 355.60 1590.29

Lake surface Water area

Figure 2-1 Current Situation of Collective Land to be Acquired

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2) State-owned land

The Sewer Network Construction and Lake Ecology Rehabilitation (Phase 2) components involve the permanent occupation of state-owned land, including 0.22 mu for a lifting pump station in Sewer Network Construction, and 25.23 mu for Lake Ecology Rehabilitation (Phase 2), including 4.46 mu for the Daquan Road entrance of Qinggang Lake, 13.05 mu for the experience and leisure area, 1.05 mu for the lakeside viewing area, 6.42 mu for the ecological area and 0.25 mu for the Qingshan Lake Bridge. See Table 2-3.

table 2-3 State-owned Land to be Permanently Occupied

Component Land area (mu) Land type

1. Sewer Network Urban construction Lifting pump station 0.22 Construction land

Daquan Road entrance of Qinggang 4.46 Lake

Experience and leisure area 13.05 2. Lake Ecology

Rehabilitation Lakeside viewing area 1.05 Water facility land

(Phase 2) Ecological area 6.42 Suoqian Port reconstruction work 0.00

Qingshan Lake Bridge 0.25

Total 25.45

2.2.2 Temporary Land Occupation

Sewer Network Construction will involve the temporary occupation of state-owned roads of 347.26 mu for 15-30 days. Since construction will be conducted in stages, nearby stores and residents will be affected slightly during occupation. See Table 2-4.

table 2-4 Land to be Temporarily Occupied

Pipe diameter Pipe length Excavation Temporarily occupied Subcomponent Land type (mm) (m) width (m) area (mu)

800 1059 3 4.77 State-owned road

600 937 3 4.22 State-owned road Sewer lines in 500 1231 2.5 4.62 State-owned road Tieshan old area 400 5577 2.5 20.91 State-owned road

400 16000 2.5 60.00 State-owned road

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Subtotal 24804 94.51 State-owned road

600 1171 3 5.27 State-owned road

500 3054 2.5 11.45 State-owned road Sewer lines in 400 12317 2.5 46.19 State-owned road Tieshan west area 300 850 2 2.55 State-owned road

Subtotal 17392 65.46 State-owned road

400 15026 2 45.08 State-owned road

500 2125 2.5 7.97 State-owned road Sewer lines in 600 3214 2.5 12.05 State-owned road Laoxialu District 800 1023 3 4.60 State-owned road

Subtotal 21388 69.70 State-owned road

400 15020 2.5 15.00 State-owned road Sewer lines in Tuanchengshan 600 9020 3 27.00 State-owned road District Subtotal 24040 117.59 State-owned road

Total 87624 347.26

2.2.3 Demolition of Residential Houses

81 residential houses will be demolished for the Project, all for the Downstream Wetland Construction component, affecting 81 households with 363 persons, including 16 households with 86 persons in Baitayan Village, 33 households with 144 persons in Ke’ershan Community, 15 households with 65 persons in Jianlouxia Community and 17 households with 68 persons in Chenbaizhen Community, with a total demolition area of 19,575.01 m2, including 3,652.54 m2 in masonry concrete structure, 4,036.54 m2 masonry timber structure, 62.3 m2 in other structures, and non-residential properties of 644.09 m2 in masonry concrete structure, 10,909.03 m2 in masonry timber structure and 270.43 m2 in other structures, See Error! Reference source not found..

table 2-5 Impacts of Demolition of Residential Houses

Residential size (m2) Non-residential size (m2) Village / No. Head of household Masonry Masonry Masonry Masonry Total community concrete timber Other concrete timber Other structure structure structure structure

1 Wang Huali 108.82

2 Li Shengliu 620.13 557.97 21.09 1199.19 Baitayan Village 3 Li Shengkai 233.87 1110.51 1344.38

4 Li Shengbin 219.11 132.17 351.28

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5 Zhang Jiaxiang 193.45 62.3 255.75

6 Huang Rui 109.69 109.69 219.38

7 Li Shengqi 227.26 227.26

8 Li Shengwang 9.94 322.67 332.61

9 Li Shengqii 18.54 18.54

10 Zhou Xiuying 118.77 118.77

11 Li Shengqiang 222.72 222.72

12 Li Yong’er 492.68 492.68

13 Li Guoqiang 51.12 62.19 113.31

14 Zhang Haiyuan 241.54 241.54

15 Zhang Jiakun 87.03 87.03

16 Li Hengshan 271.9 271.9

Subtotal 813.58 1432.95 62.3 61.06 3125.58 109.69 5605.16

1 Chen Ruyi 49.62 49.62

2 Li Jinlu 68.23 68.23 136.46

3 Yin Tiangui 119.63 28.64 148.27

4 Liu Zhenqiang 185.1 185.1

Cao Dazhen 101.38 101.38

5 Peng Yiyan 50.67 50.67

6 Li Jingzhong 44.27 34.21 78.48

7 Li JIamen 76.69 76.69

8 Chen Bo 34.88 34.88

9 Wang Fuhua 194.62 194.62 Ke’ershan Community 10 Yin Chuanliu 69.33 69.33 400.91 539.57

11 Peng Xixiu 132.43 77.45 209.88

12 Li Ming 58.05 58.05

13 Peng Tianyu 36.33 36.33 173.84 246.5

14 Peng Fangneng 131.89 59.57 525.02 7.57 724.05

15 Zhang Yinghua 1314.82 1314.82

16 Zhang Qiuping 168.05 168.05

17 Li Jiakun 11.52 11.09 22.61

18 Pump house 28.6 28.6

Peng Yibing, Peng 19 0 Yiguang

15

20 Peng Qingqing 38.7 38.7

21 Peng Biao 8.42 8.42

22 Bai Shou 21.13 21.13

23 Peng Hongying 97.71 97.71

24 Zhang Guojun 146.83 146.83

25 Zhang Shengyou 66.76 66.76

26 Huang Jing 204.11 141.6 345.71

Zhang Shengcai, Zhang 27 122.71 122.71 Jiaxiong

28 Dan Junyi 74.06 74.06

29 Zhang Sizhi 166.24 166.24 46 46 424.48

30 Zhang Siqing 127.43 127.43

31 Zhang Shuiqing 275.48 37.27 312.75

32 Zhang Shuiqing 82.91 71.34 154.25

33 Feng Xixiu 104.37 42.31 6.76 133.12 286.56

Subtotal 1201.63 1529.03 0 163 3694.57 7.57 6595.8

1 Jiang Zufa 41.53 41.53

2 Jiang Youzhuan 105.1 32.69 137.79

3 Shao Zhongyong 150.66 64.95 40.63 256.24

4 Peng Yixia 211.52 211.52

5 Peng Huanhuan 41.98 41.98 51.55 135.51

6 Peng Biao 64.2 52.7 116.9

7 Peng Peng 231 231

8 Wang Wei 394.26 247.45 93.72 735.43 Chenbaizhe 9 Peng Zhineng 246.13 241.36 56.69 33.08 577.26 n Community 10 Wang Sheng 436.06 56.73 150.93 643.72

11 Yu Guoxing 96.18 32.06 128.24

12 Li Baozhen 163.3 133.09 222.01 518.4

Zhan Xiaofeng, Zhan 13 108.76 108.76 282.93 500.45 Xiaoli

14 Yu Chengpeng 112.51 112.51

15 Community 6.7 6.7

16 Wang Yiqun 36.2 73.98 110.18

17 Community 126.31 44.18 170.49

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Subtotal 1637.33 930.59 0 360.87 1664.45 40.63 4633.87

1 Wang Wei 124.55 124.55

2 Hu Hongqiao 157.11 157.11

3 Wang Yueying 99.63 99.63

4 Wang Fang 140.8 140.8

5 Xiang Weiguo 124.36 124.36

6 Zhang Guoxiang 69.55 69.55

7 Wang Wei 112.65 112.65

8 Zhang Fu’an 46.06 84.62 130.68 Jianlouxia Community 9 Hu Hongjiao 69.71 112.54 182.25

10 Li Huan 19.73 19.73

11 Li Yuanlai, Lu Lanzhi 567.04 567.04

12 Community 17.44 12.1 29.54

Li Yuanliang, Li 13 13.1 824.06 837.16 Yuandong, Li Dongzhi

14 Zhan Shixue 18.52 18.52

15 Wang Daigang 126.61 126.61

Subtotal 0 144.05 0 59.16 2424.43 112.54 2740.18

Total 3652.54 4036.62 62.3 644.09 10909.03 270.43 19575.01

Figure 2-2 Current Situation of Residential Houses to be Demolished

2.2.4 Demolition of Non-residential Properties

The demolition of non-residential properties for the Project will affect 4 enterprises and 8 pig farms, with a total demolition area of 12,525.83 m2, including 1,065.92 m2 in composite structure (8.51%), 10,534.64 m2 in masonry timber structure (84.10%), and 925.27 m2 in steel structure

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(7.39%), affecting 42 workers. See Error! Reference source not found..

table 2-6 Impacts of Demolition of Non-residential Properties

Demolition area (m2)

Masonry Masonry Work No. Enterprise Steel Proprietor Business status concrete timber Total force structure structure structure

Baita Trading 1 Pig farm 310.33 1405.6 1715.93 0 Closed in 2013 Company

Tianlong Door & Li Shengliu, Qi Founded in 2005, 2 198.36 1774.58 925.27 2898.21 25 Window Co., Ltd. Chunmei operating normally

Chengxin Driving Founded in 1998, 3 82.13 82.13 3 Li Shengliu School operating normally

4 Pig farm 360.05 360.05 0 Li Shengliu Closed

Lijiafang Storage & 5 1260.26 1260.26 4 Li Chunjin Logistics Company Sharing one place after closing 6 Pig farm 1606.94 1606.94 4 Li Chunjin Zhang 7 Root Carving Factory 501.84 1982.65 2484.49 6 Operating normally Jiachuan

8 Pig farm 493.08 493.08 0 Li Bingtuan Closed 9 Pig farm 138.57 138.57 0 Li Jun Closed

10 Pig farm 648.68 648.68 0 Huang Rui Closed

Jianlouxia 11 Tuanjieban Farm 55.39 282.1 337.49 0 Closed Community

12 Huahu Pig Farm 500 500 0 Huahu Farm Closed

Total 1065.92 10534.64 925.27 12525.83 42

Chengxin Driving School Lijiafang Storage & Logistics Company and Li Chunjin Livestock Farm (shared)

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Tianlong Door & Window Co., Ltd. Root Carving Factory

Exterior of Huahu Pig Farm Interior of Huahu Pig Farm

Figure 2-3 Current Situation of Non-residential Properties to be Demolished

2.2.5 Ground Attachments

The Project will affect some ground attachments, including trees, vegetable cellars and telegraph poles, mostly in the Downstream Wetland Construction component. See Table 2-7.

table 2-7 Affected Ground Attachments

Downstream Sewer Lake Ecology Item Unit Wetland Network Rehabilitation Total Construction Construction (Phase 2)

Big / 896 896

Medium / 701 701 1. Timber trees Small / 9014 9014

Young / 12098 12098 Trees Ultra-big / 1029 1029

Big / 7933 7933 2. Commercial trees Medium / 30222 30222

Small / 17137 17137

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Young / 63882 63882

Ultra-big / 60 60

Big / 37 37

3. Special trees Medium / 66 66

Small / 113 113

Young / 26 26

4. Total / 143214 143214

Young vegetables / 45.59 45.59

Masonry m³ 14.34 0 Dung cellars Jar m³ 75.36 0

Masonry m³ 8.87 0

Retaining walls Dry stone m³ 19.08 0

Brick m³ 18 0

Cement telegraph poles / 12 12

Wood telegraph poles / 1 1

6mm wires / 5100 5100

Cement sluices m³ 30 0

2.3 Other Impacts of the Project

2.3.1 Affected Population

In sum, 352 households with 1,500 persons will be affected by LA and HD for the Project.

By impact type:

1) LA: 302 households with 1,291 persons will be affected by LA, including 107 households with 451 persons in Baitayan Village and 195 households with 840 persons in Chenbaizhen Community;

2) Demolition of residential houses: 81 households with 363 persons will be affected by HD, including 33 households with 144 persons in Ke’ershan Community and 15 households with 65 persons in Jianlouxia Community; 33 households with 154 persons (16 households with 86 persons in Baitayan Village and 17 households with 68 persons in Chenbaizhen Community) by both LA and HD;

3) Demolition of non-residential properties: 12 households with 42 persons will be affected by the demolition of non-residential properties, in which 10 households with 42 persons (Baitayan Village) will be affected by both LA and HD.

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By component:

1) In Downstream Wetland Construction, 302 households with 1,291 persons will be affected by LA, 81 households with 363 persons by the demolition of residential houses, in which 33 households with 154 persons will be affected by both LA and HD; and 12 households with 42 persons by the demolition of non-residential properties, in which 10 households with 42 persons will be affected by both LA and HD;

2) Sewer Network Construction will have negligible impacts on nearby residents due to stage-by-stage construction and a short period of land occupation.

3) In Lake Ecology Rehabilitation (Phase 2), state-owned water facility land will be occupied permanently, affecting no one, and a pig farm in Huahu Farm demolished, affecting no one. A non-residential property will be demolished for Lake Ecology Rehabilitation (Phase 2), affecting no one.

The Project affects no minority population. See Error! Reference source not found..

table 2-8 Summary of Affected Population

Both LA and Non-residential Village / LA HD District Group HD properties Component community AHs APs AHs APs AHs APs AHs APs

Baitayan Xisaishan 107 451 16 86 16 78 10 42 Village

Ke’ershan 5, 7 33 144 Downstream Community Wetland Jianlouxia Construction Xialu 5, 6 15 65 1 0 Community

Chenbaizhen 1, 3, 9 195 840 17 68 11 49 Community

Subtotal 302 1291 81 363 27 127 11 42

Sewer Network Construction

Lake Ecology Rehabilitation 1 0 (Phase 2)

Total 302 1291 81 363 27 127 12 42

2.3.2 Vulnerable Groups

The Project will affect 4 vulnerable households with 6 persons, all being 4 MLS households. Local governments offer sound security measures to local vulnerable groups, such as each MLS household member in Chenbaizhen Community receives a MLS subsidy of 580 yuan, and is entitled

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to a two-year interest free small-amount loan. In addition, local governments offer special policies for the resettlement of vulnerable groups (see Section 5.6). Therefore, the Project will affect vulnerable groups slightly. See Table 2-9.

table 2-9 Summary of Affected Vulnerable Groups

Where Family size Impact type

Old people people livingalone Old households MLS by disability affected Households Subtotal Male Female Village / Vulnerable Vulnerable community households population LA HD

Baitayan Village

Ke’ershan 2 2 3 3 1 2 2 Community

Jianlouxia Community

Chenbaizhen 2 2 3 3 1 2 2 Community

Total 4 4 6 6 2 4 4

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3. Socioeconomic Profile

3.1 Socioeconomic Profile of the Project Area

3.1.1 Huangshi City

Huangshi City is located in southeastern Hubei Province, south of the middle Yangtze River, bordered by Ezhou City on the north, Wuhan City on the west, Xianning City on the southwest, and Jiujiang City on the southeast.

Huangshi is a major city and an important raw material industrial base in central China, and a riverfront open city approved by the State Council.

Huangshi has a land area of 4,583 km2, and governs 4 districts, a county and a state-level development zone, with a resident population of 2.6014 million. In 2015, the city’s GDP was 92.596 billion yuan. See Error! Reference source not found..

table 3-1 Socioeconomic Profile of Huangshi City (2015)

Land Fiscal Farmers’ Urban residents’ per Population GDP per capita capita disposable area revenue Division net income income km2 0,000 00m yuan 00m yuan yuan yuan

Huangshi City 4582.9 260.14 925.96 92.17 6487 17003

Huangshigan 42 22 108.5 6.55 8510 18872 g

Xisaishan 111.96 24 145.53 5.34 6678 16302

Xialu 38 12 146.8 5.31 7560 17274 Tieshan 29.4 6.15 21.68 3.04 6850 17876

Development 28.2 13.87 60.6 10.92 5643 16058 zone

Source: Statistical Yearbook 2016 of Huangshi City

3.1.2 Affected Villages / Communities

1. Downstream Wetland Construction will affect Baitayan Village, Chenbaizhen Community, Ke’ershan Community and Jianlouxia Community.

1) Baitayan Village, also known as Baita Trading Company, and formerly called Lijiafang Village, has 7 groups.

2) Chenbaizhen Community was converted from a village in 2001 due to LA with the progress of urbanization. The community has 11 groups, 353.12 mu farmland and about 3,000 residents,

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including about 1,800 laborers. Agricultural income accounts for less than 5% of gross income.

3) Ke’ershan Community was converted from a village in 2002, and has a land area of 3 km2, 19 groups, 4,500 households with 10,535 persons, and 1,400 mu of land.

4) Jianlouxia Community was converted from a village in 2002, and has a land area of 5 km2. 17 groups and 1,316 households with 3,218 persons. Most residents work at plants, and agricultural income is low.

See Error! Reference source not found..

table 3-2 Socioeconomic Profile of the Affected Communities

Per Cultivate Averag capita Farmers’ per District Village / community HHs Population d area e family capita net cultivated (mu) size income (yuan) area (mu)

Xisaishan Baitayan Village 107 451 1094.91 4.21 2.43 6853

Laoxialu Village 298 1040 100 3.49 0.10 9016 250 10535 200 4.214 0.02 8588 Ke’ershan Community 0

Xialu 131 Jianlouxia Community 3218 300 4.33 0.09 8307 6

129 Chenbaizhen Community 3000 353.12 4.14 0.12 9117 9

3.2 Socioeconomic Profile of the Affected Population

3.2.1 Permanent LA

1,590.29 mu of collective land will be acquired for the Project, including 2.45 mu of woodland (0.15%), 868.58 mu of lake surface (76.3%), 363.66 mu of urban and industrial land (22.87%), and 355.60 mu of water facility land (0.19%), affecting 302 households with 1,291 persons in Xisaishan and Xialu Districts.

Baitayan Village, and Groups 1, 3 and 9 of Chenbaizhen Community will be affected seriously by LA, with land loss rates of 100%.

1,094.91 mu of land in Baitayan Village will be acquired, affecting 107 households with 451 persons. 353.12 mu of land in Groups 1, 3 and 9 of Chenbaizhen Community will be acquired, affecting 195 households with 840 persons.

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table 3-3 Summary of Acquired Collective Land (by group)

Lake Urban and Water Woodland Total area District Community surface industrial facility land Remarks (mu) (mu) (mu) land (mu) (mu)

Xisaishan 868.58 57.92 168.4 1094.91

Ke’ershan 30.9 7.84 38.74 5, 7

Xialu Jianlouxia 100.57 2.95 103.52 5, 6

Chenbaizhen 2.45 174.27 176.41 353.12 1, 3, 9

Total 2.45 868.58 363.66 355.6 1590.29

table 3-4 Summary of Acquired Collective Land (by component)

No. Component Affected area Land use Resettlement

West to Tanshan Acquiring 532 mu of land (incl. Permanent LA Viaduct, east to fishponds) and demolishing Downstream Lijiafang Viaduct, houses of 7,840.52 2 in Xialu 1 Wetland m south to Yanhu Road District; acquiring 981 mu of Construction and north to planned land and demolishing houses of 47# Road 16,743 m2 in Xisaishan District Tieshan old and west Occupying 159.97 mu of land Temporary land areas temporarily occupation, and Sewer Network permanent 2 Construction Tuanchengshan and Occupying 187.29 mu of land occupation of Laoxialu Districts temporarily state-owned land

Huahu Development Lake Ecology Zone, west of 3 Rehabilitation Dazhongshan Park, (Phase 2) Huangshigang District

3.2.2 Affected Population

In order learn the basic information of the AHs, the task force conducted a sampling survey on 62 households with 231 persons (sampling rate 17.61%) during March 5-10, 2017, including 17 households with 64 persons in Xisaishan District (sampling rate 15.89%), and 45 households with 171 persons in Xialu District (sampling rate 18.44%).

table 3-5 Basic Sample Information

Sample information District Village / community All HHs Sample HHs Percent (%) Xisaishan Baitayan Village 107 17 15.89%

Xialu Ke’ershan Community 33 8 24.24%

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Jianlouxia Community 16 3 18.75% Chenbaizhen Community 195 34 17.44%

Total 352 62 17.61%

1) Gender

The 45 sample households in Xialu District have an average size of 3.8, and 84 women, accounting for 49.12%. The 17 sample households in Xisaishan District have an average size of 3.76, and 30 women, accounting for 46.88%. Women deal with cultivation, stockbreeding and housework mainly. No ethnic minority or vulnerable group is involved.

2) Age

Among the 45 sample households in Xialu District, 33 are aged below 16 years, accounting for 19.30%; 67 aged 16~39 years, accounting for 39.18%; 61 aged 40~59 years, accounting for 35.67%; and 10 aged 60 years or above, accounting for 5.85%. Among the 17 sample households in Xisaishan District, 12 are aged below 16 years, accounting for 18.33%; 22 aged 16~39 years, accounting for 35.00%; 21 aged 40~59 years, accounting for 33.33%; and 9 aged 60 years or above, accounting for 13.33%.

3) Education

Among the 45 sample households in Xialu District, 33 have received primary school or below education, accounting for 19.30%; 67 junior high school education, accounting for 39.81%; 60 senior high school / secondary technical school education, accounting for 35.09%; and 11 junior college or above education, accounting for 6.43%. Among the 17 sample households in Xisaishan District, 12 have received primary school or below education, accounting for 18.33%; 22 junior high school education, accounting for 35.00%; 21 senior high school / secondary technical school education, accounting for 33.33%; and 9 junior college or above education, accounting for 13.33%. See Table 3-4.

4) Housing

The 45 sample households in Xialu District have a total house size of 8,190.9 m2 and a per capita house size of 47.90 m2. The 17 sample households in Xisaishan District have a total house size of 3,653.12 m2 and a per capita house size of 57.08 m2.

5) Land

Almost all cultivated land in the project area has been acquired, and the remaining land is mostly fishpond and water area. However, some residents grow seasonal crops on flood land in the low-flow period.

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6) Household properties

Among the 45 sample households in Xialu District, an average household has 1.6 TV sets, 0.8 refrigerator / air-conditioner, 0.45 hi-fi, 3.8 fixed telephones / mobile phones, 1.48 bicycles / motorcycles and 0.1 tractor / water pump, indicating an above-average living standard. Among the 28 sample households in Xisaishan District, an average household has 1.7 TV sets, 0.9 refrigerator / air-conditioner, 0.41 hi-fi, 3.9 fixed telephones / mobile phones, 1.9 bicycles / motorcycles and 0.1 tractor / water pump, indicating an average living standard.

7) Household Income and Expenditure

Among the 45 sample households in Xialu District, per capita annual income is 22,782 yuan, per capita annual expenditure 14,264 yuan, and per capita net income 8,518 yuan. Among the 17 sample households in Xisaishan District, per capita annual income is 18,329 yuan, per capita annual expenditure 11,476 yuan, and per capita net income 6,853 yuan. The average income of the sample population is much higher than the national rural poverty line (2,300 yuan in 2011). See Tables 3-6, 3-7 and 3-8.

table 3-6 Income and Expenditure of AHs in Xialu District

Average per Per capita Percent Item household (yuan) (yuan) (%)

Cultivation income 968.24 284.78 1.25% Forestry income 890.78 261.99 1.15%

Individual business income 20906.13 6148.86 26.99% Annual household Stockbreeding income 1022.46 300.72 1.32% income Labor service income 48605.40 14295.71 62.75%

Property income 5065.81 1489.94 6.54%

Subtotal 77458.80 22782.00 100%

Productive expenses 13608.43 4002.48 28.06%

Annual Nonproductive expenses 30325.55 8919.28 62.53% household expenditure Other 4563.62 1342.24 9.41% Subtotal 48497.60 14264.00 100%

Per capita net income 8518

table 3-7 Income and Expenditure of AHs in Xisaishan District

Average per Per capita Percent Item household (yuan) (yuan) (%) Cultivation income 716.66 210.78 1.15% Annual household Forestry income 1339.85 394.07 2.15%

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income Individual business income 17648.63 5190.77 28.32% Stockbreeding income 697.97 205.28 1.12%

Labor service income 39210.86 11532.61 62.92%

Property income 2704.63 795.48 4.34% Subtotal 62318.60 18329.00 100%

Productive expenses 10168.20 2990.65 26.06% Annual Nonproductive expenses 24382.60 7171.35 62.49% household expenditure Other 4467.61 1314.00 11.45% Subtotal 39018.40 11476.00 100% Per capita net income 6853

table 3-8 Demographics of Sample Population

Xialu District Xisaishan District

Male Female Total Male Female Total Item Percent Percent Percent Percent Percent Percent N N N N N N (%) (%) (%) (%) (%) (%)

Age Age ≤16 years 17 19.54% 16 19.05% 33 19.30% 7 20.00% 5 16.67% 12 18.33% 16-39 years 34 39.08% 33 39.29% 67 39.18% 11 33.33% 11 36.67% 22 35.00% 40-59 years 31 35.63% 30 35.71% 61 35.67% 11 33.33% 10 33.33% 21 33.33%

≥60 years 5 5.75% 5 5.95% 10 5.85% 5 13.33% 4 13.33% 9 13.33% Subtotal 87 100.00% 84 100.00% 171 100.00% 34 100.00% 30 100.00% 64 100.00%

Education Education Primary school or 17 19.54% 16 19.05% 33 19.30% 7 20.00% 5 16.67% 12 18.33% below

Junior high school 34 39.08% 33 39.29% 67 39.18% 11 33.33% 11 36.67% 22 35.00%

Senior high school / secondary technical 30 34.48% 30 35.71% 60 35.09% 11 33.33% 10 33.33% 21 33.33% school

Junior college or 6 6.90% 5 5.95% 11 6.43% 5 13.33% 4 13.33% 9 13.33% above

Subtotal 87 100.00% 84 100.00% 171 100.00% 34 100.00% 30 100.00% 64 100.00%

3.2.3 Willingness Survey

1. Households affected by HD

1) Willingness survey

In March 2017, the task force conducted a willingness survey on 47 households affected by HD, accounting for 58.02% of all households affected by HD. See 3-9.

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table 3-9 Statistics of Willingness Survey on Households affected by HD

Sample information District Village / community All HHs Sample HHs Percent (%)

Xisaishan Baitayan Village 16 8 50.00%

Ke’ershan Community 33 19 57.58%

Xialu Jianlouxia Community 15 9 60.00% Chenbaizhen Community 17 11 64.71%

Total 81 47 58.02%

2) Survey results

Awareness: 100% of the respondents are aware of the Project.

Support: 100% of the respondents support the Project.

Impact: 100% of the respondents think that the Project is good to the state and the collective, and 75% think that the Project is also good to individuals.

Resettlement: 66.3% of the respondents choose property swap, and 33.8% choose cash compensation.

Concern: 50% of the respondents are concerned about the preferential treatment of vulnerable groups in house selection.

2. Households affected by LA

1) Willingness survey

In March 2017, the task force conducted a willingness survey on 49 households affected by LA, accounting for 16.23% of all households affected by LA, including 17 AHs in Xisaishan District, accounting for 15.89%, and 32 AHs in Xialu District, accounting for 16.41%. See Table 3-10.

table 3-10 Statistics of Willingness Survey on Households affected by LA

Sample information District Village / community All HHs Sample HHs Percent (%)

Xisaishan Baitayan Village 107 17 15.89%

Ke’ershan Community Xialu Jianlouxia Community Chenbaizhen Community 195 32 16.41%

Total 302 49 16.23%

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2) Survey results

Since the project area has limited cultivated land, and most local residents deal with nonagricultural industries, LA will have little impact on their livelihoods. Since most local residents are urban residents, they will receive compensation for young crops and ground attachments only, while land compensation and resettlement subsidy will go to the collective. For old farmers affected by LA, a male when attaining 55 years or a female when attaining 50 years will receive 236 yuan/month from the district government and 100 yuan/month from the community. All APs support LA, but expect young crop compensation rates be higher.

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4. Legal Framework and Policies

4.1 Laws, Regulations and Policies Applicable to Resettlement

The resettlement work of the Project will be conducted in strict conformity with the applicable laws and regulations of the PRC, Hubei Province, Huangshi City and ADB policies. See Appendix 3.

Any change to this RP will be approved by ADB in advance. In case of any major change, the PMO will consult with the APs, and provide an updated RP.

4.2 Objective and Principles of Resettlement

4.2.1 Objective

The objective of resettlement of the Project is to develop an action plan for restoration and restoration for those affected by the Project so that they benefit from the Project, and their living standard is improved or at least restored to the pre-project level. Particular attention should be paid to affected poor population and vulnerable groups.

4.2.2 Principles

This RP is based on the Land Administration Law of the PRC (2004), the Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28), the Regulations on House Acquisition on State-owned Land and Compensation (Decree No.590 of the State Council), the applicable policies of Hubei Province, and ADB’s Safeguard Policy Statement (2009). According to the above policies, and in consultation with local governments and affected persons (APs), the resettlement principles of the Project are: 1) The APs are granted compensation and rights that can at least maintain or even improve their livelihoods in the absence of the Project; 2) The APs are given compensation and assistance in resettlement whether legal title is available or not; 3) 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; 4) The APs fully understand their entitlements, the method and standard of compensation, the livelihood and income restoration program, and the project schedule, and participate in the implementation of the RP; 5) No land should be acquired before the APs receive resettlement land or sufficient compensation; 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 project; 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.

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4.3 Compensation Rates

4.3.1 Permanent LA

The LA compensation rates of the Project are based on the Uniform AAOV Rates and Location-based Composite Land Prices for Land Acquisition of Hubei Province (HPG [2014] No.No.12), and the Letter of the Hubei Provincial Land and Resources Department on LA Compensation Multiples, Correction Factors and Young Crop Compensation Rates for Huangshi City (HPLRD [2009] No.1643). For the project area, the location-based composite land price for LA is 49,000 yuan/mu, land compensation rate 17,500 yuan/mu, resettlement subsidy 31,500 yuan/mu, young crop compensation rate 1,750 yuan/mu for ordinary cultivated land or 2,100 yuan/mu for vegetable land, compensation rate for fishpond facilities 1,000 yuan/mu, and compensation rate for fries 1,573 yuan/mu. See Error! Reference source not found..

Compensation for young crops and ground attachments, and resettlement subsidy will be paid to proprietors.

table 4-1 LA Compensation Rates

Village / community Baitayan, Ke’ershan, Chenbaizhen, Jianlouxia Location-based composite land price yuan/mu 49000

Land compensation yuan/mu 17500

Resettlement subsidy yuan/mu 31500

Young crop Ordinary cultivated land yuan/mu 1750 compensation Vegetable land yuan/mu 2100

Fishpond Facilities yuan/mu 1000 compensation Fries yuan/mu 1573

4.3.2 Demolition of Houses and Attachments

4.3.2.1 Identification of main houses and attachments

1) Main houses

Houses with a certificate of the right to use collective construction land; houses suitable for long-term occupation; and separate kitchens with an eave height of 2.2m or more, which will be compensated for at 100% of the benchmark rate

Structures added to main houses: eave height > 2.2m: 85%-95%; eave height >1.7m and =<2.2m: 70%-85%; and insulating layer: no compensation

Insulating layers on main houses but not added: 1) eave height >1.5m: 60%-70%; 2) eave

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height =<1.5m: 50%-60%

Attachments with an eave height of 2.2m or more: 100 m2 or less: 70%;>100 m2, =<200 m2: 60%;<200 m2, =<300 m2: 50%;>300 m2: 40%; >400 m2: 30%; remaining size: compensated for at value

2) Attachments

Simple sheds, toilets, pigpens, etc. built along with main houses, and separate unlicensed houses out of main houses

3) The building area of any demolished main house or attachment will be measured according to the Specifications for Estate Surveying.

4.3.2.2 Resettlement modes

1) The AHs are encouraged to choose cash compensation, where they will receive one-time compensation for house value and decoration, a transition subsidy, and a moving subsidy. Those eligible will enjoy priority in housing security.

2) Property swap: Each AH will settle the price difference between the demolished house and the resettlement house. The resettlement community is Jinguangsha Community.

The benchmark rates have been fixed by reference to similar houses through market appraisal. See Tables 4-2, 4-3, 4-4 and 4-5.The actual assessment price is fully based on the criteria in Table 4.3, regardless of discount.

table 4-2 HD Compensation Rates

Item Rate Remarks

Residence Residence 3 yuan 2 per month, at least 400 yuan/month per household, for Transition subsidy /m 3 months (cash compensation) or 5 months (property swap)

Moving subsidy 1500 yuan per household Telephone relocation 216 yuan each

Cable TV relocation 1160 yuan per household

Broadband relocation 116 yuan per household Moving rates Kilowatt-hour meter relocation 416 yuan per household (none in case of property swap) Water meter relocation 786 yuan per household (none in case of property swap)

150 yuan each for window-mounted type; 200 yuan each for Air-conditioner relocation wall-mounted or cabinet type

Solar water heater relocation 600 yuan each

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table 4-3 Benchmark Compensation Rates for Main Houses

Item Structure Rate (yuan/m2) Reinforced concrete 4380

Masonry concrete 4180 Main houses Masonry timber 4080

Simple 500

Note: The above rates are for reference only.

table 4-4 Benchmark Compensation Rates for House Attachments

Item Structure Rate (yuan/m2)

Masonry concrete 700

Masonry timber 500 House attachments Simple house 300

Simple shed 150

table 4-5 Compensation Rates for Exterior Decoration of Main Houses

Decoration type Grade Compensation rate (yuan/m2) III =<60

Simple II =<100

I =<200 III =<300

Ordinary II =<400

I =<500 III =<600

Deluxe II =<700

I To be consulted based on appraisal, but not more than 10%

4.3.2.3 Losses from production suspension of non-residential properties

Such compensation will be granted for any property registered as a commercial property at a rate of not more than 8.6% (5% + 0.6% × 6 months) of the appraised value at a time, including a transition subsidy (0.6% of the appraised value, for 6 months).

4.3.2.4 Rewards

If an AH enters into a HD compensation agreement with the IA and empties its house on schedule after the date of the HD announcement, it will be rewarded as shown in Table 4-6.

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table 4-6 Reward for Main Houses

Reward Time Rate

=< 30 days 30,000 per household Personal contract signing 30-45 days 20,000 per household reward 45-60 days 10,000 per household Personal moving reward Emptying the house within the agreed period 10,000 per household

Overall moving reward Completing relocation within 60 days 10,000 per household

4.3.2.5 Assistance policy

An AH that enters into a HD compensation agreement and is relocated on schedule will receive a one-time subsidy of 5,000 yuan in the following cases (not more than 10,000 yuan per household): dependents of active servicemen and martyrs; city-level or above model workers; disabled persons; patients of serious diseases; MLS households; people aged 80 years or above.

4.3.3 Permanent Occupation of State-owned Land

25.45 mu of state-owned land to be occupied permanently for the Project will be allocated for free.

4.3.4 Temporary Occupation of State-owned Land

State-owned roads of 347.26 mu to be occupied temporarily for the Project will be restored by the construction agency.

4.4 Attachments and Scattered Trees

See Tables 4-7 and 4-8.

table 4-7 Compensation Rates for Attachments

Item Unit Rate (yuan) Remarks

Brick column Cement with sand m³ 385 Concrete m2 95 Ground Cement m2 50 10cm thick

Cement m³ 380 Enclosing wall Brick m³ 600

Parterre Cement / red tile m³ 150 At least appraised at

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Tile m³ 220 1m³

Cement / red tile m³ 150 At least appraised at Pool Tile m³ 220 1m³ Open / 2200

Well With handle / 2700

With motor / 3150 Dry M 40

Ditch Cement with sand M 50 0.5 deep, 0.3 wide

With cover M 70 Retaining wall Masonry m³ 200

Cement M 25

Slab Prefab M 60 b=0.5 Cast-in-place m2 300 Thickness, steel bar

Slope step Brick with cement coating m2 65

Brick with cement coating m³ 390 Step With tile m³ 430

Septic tank / 500

Biogas tank m³ 150 >3m Steel m2 150 Simple shed Including ground Round timber, asbestos tile m2 110

Simple m2 50 Flower stand, Support shed Brick frame m2 80 vegetable shed, etc. Steel / concrete frame m2 100

Stairways Iron M 180 Birdhouse m2 60

Round bar M 70 Handrail Stainless steel M 140 Water tank / 450

PVC M 8 Downpipe Cast iron M 15

Concrete m³ 425 Concrete Reinforced m³ 500

Gatehouse m³ 600 Round bar m2 180 iron gate With wrought iron m2 300

Canopy White iron m2 60

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Prefab slab m2 100 Culvert M 150

Single opening / 600 Cooking range Double opening / 1200 Rockery m2 150-500 At most two per HH

Smoke-free range / 300

Roman column / 10 Stone table With stone benches Set 500

table 4-8 Compensation Rates for Trees

Item Unit Rate (yuan)

Small / 10 Miscellaneous Medium 40 trees / Big / 50

Small / 40 Alley trees Medium / 100

Big / 180

Small / 50 Fruit trees Medium / 120

Big / 220

4.5 Fund Disbursement and Schedule

Compensation fees under the Project will be disbursed by the IA. The cut-off date for the eligibility for compensation is June 2017, which will be disclosed in the project area. 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. According to the applicable regulations, all LA compensation should be paid within 3 months from the date of approval of the resettlement program, and land compensation paid before LA.

4.6 matrix of right

Matrix of right is established in accordance with the relevant policies.Compared to the previously updated RAP, the compensation standards of this RAP improve a lot. With the previous compensation standards of Guihuawan, whose standards are highest, the location-based composite land price for LA increased from 434000 yuan / mu to 49,000 yuan/mu, land compensation rate increased from 15,500 yuan/mu to 17,500

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yuan/mu, resettlement subsidy increased from 27900 yuan/mu To 31,500 yuan/mu, young crop compensation rate increased from 1550 yuan/mu to 1750 yuan/mu for ordinary cultivated land, young crop compensation rate increased from 1860 yuan / mu to 2,100 yuan/mu or vegetable land.See Table 4-9.

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table 4-9 Matrix of right Loss types influences obligees rights Compensation Rates

LA Compensation will be paied The location-based composite land price for

AHs directly LA is 49,000 yuan/mu, land compensation 1,590.29 mu of collective land will rate 17,500 yuan/mu, resettlement subsidy be acquired,affecting Baitayan Compensation for young crops Collective of Baitayan 31,500 yuan/mu, young crop compensation Permanent village, the lower group5,7 of and ground attachments, and village, Collective of Chen rate 1,750 yuan/mu for ordinary cultivated LA KeerShan community , group 1,3,9 of resettlement subsidy will be paid Baizhen community land or 2,100 yuan/mu for vegetable land, Chen Baizhen community ,group 5,6 to proprietors. of Jianlouxia community compensation rate for fishpond facilities 1,000 yuan/mu, and compensation rate for fries 1,573 yuan/mu.

25.45 mu of State-owned land will Permanent be Occupied， affecting Tieshan west State-owned area 、 Huahu Development Zone of State-owned - - land Huangshi -gang Occupation

state-owned 347.26 mu of state-owned roads roads of State- - - will be Occupied 347.26 mu

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affecting 81 households with 363 persons, including 16 households with 86 (1)one-time compensation for house value and decoration, a transition subsidy, and a Demolition of residential housing persons in Baitayan Village, (1)Cash Compensation will paied ㎡ 33 households with 144 moving subsidy. See Tables 4-2, 4-3, 4-4 and Demolition of 195,75.01 , affecting the Baitayan to AHs directly persons in Ke’ershan 4-5. Residential village, the lower group5,7 of Ke’erShan community , group 1,3,9 of Community, 15 households (2) Property Swap Houses (2)The resettlement community is Chen Baizhen community ,group 5,6 with 65 persons in Jinguangsha Community. of Jianlouxia community Jianlouxia Community and 17 households with 68 persons in Chenbaizhen Community Compensation for closed enterprises will be Demolition of residential housing granted for any property registered as a Demolition of ㎡ affecting 4 enterprises and 8 commercial property at a rate of not more 12525.83 , affecting the Baitayan one-time compensation for house Non-residenti pig farms in Baitayan than 8.6% (5% + 0.6% × 6 months) of the village, Jianlouxia community and value and closed enterprises al Properties Huahu Development Zone of Huangshi Village, Jianlouxia appraised value at a time, including a -gang community and Huahu transition subsidy (0.6% of the appraised Development Zone value, for 6 months).

Affecting 143214 trees，45.59 Young vegetables ， 14.34m³ masonry dung Ground cellars 75.36m³ jar dung cellars, Compensated for at full ， property owner See table 4-7 Attachments 45.95m³ retaining walls, 12cement replacement cost telegraph poles，1wood telegraph pole, 5100 6mm wires，30m³ cement sluices

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5. Resettlement and Income Restoration

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

Some principles for resettlement and rehabilitation have been developed according to the above objective:

1. The willingness of the APs should be respected, and their existing production and living traditions maintained;

2. Resettlement and restoration programs should be tailored to impacts of LA and HD, and based on compensation rates for LA and HD;

3. Resettlement and restoration programs should be combined with village construction, resources development, economic development and environmental protection programs to ensure the sustainable development of the affected villages and APs; and

4. The standard of living of vulnerable groups adversely affected by the Project should be improved.

5.1 Resettlement Program for Permanent LA

According to the survey, almost all AHs support the Project and ask for cash compensation for LA. Since the affected group vary in degree of impact, restoration programs should be developed based on the degree of impact, availability of remaining land resources and expectations of the APs through consultation.

The slightly affected groups will be subject to cash compensation, where compensation fees will be paid fully and timely to the AHs in strict conformity with the applicable state and local policies. For the seriously affected groups, such restoration measures as free skills training, employment and social security will be taken in addition to cash compensation.

5.1.1 Cash Compensation

The LA compensation rates of the Project are based on the Uniform AAOV Rates and Location-based Composite Land Prices for Land Acquisition of Hubei Province (HPG [2014] No.No.12). For LA in Xisaishan and Xialu Districts, location-based composite land price is 49,000 yuan/mu, and young crop compensation rate is 1,750 yuan/mu for cultivated land or 2,100 yuan/mu for vegetable land.

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table 5-1 LA Compensation Rates

District Area Land nature Location-based composite land price

Xialu Tier-2 Collective 49000

Xisaishan Tier-1 Collective 49000

In the Project, only Downstream Wetland Construction involves the permanent acquisition of collective land, for which 1,590.29 mu of collective land will be acquired, affecting 302 households with 1,291 persons, including 1,094.91 mu in Xisaishan District and 495.38 mu in Xialu District (38.74 mu in Ke’ershan Community, 103.52 mu in Jianlouxia Community and 353.12 mu in Chenbaizhen Community). Baitayan Village and Chenbaizhen Community will be affected more seriously by LA, with 868.58 mu of fishpond acquired. In addition, 18.66 mu of vegetable land of 44 households in Xisaishan District will be acquired, 0.42 mu per household on average. Since the acquired vegetable land is mostly flood land, which is used to grow seasonal crops in the low-flow period for self-consumption mainly, LA will have almost no impact on household income.

Figure 5-1 Current Situation of Land to be Acquired

For acquired collective fishponds and wetlands, land compensation and resettlement subsidy will belong to communities, and be used for endowment insurance, benefits (e.g., festival consolation and medical assistance), etc.

Compensation for young crops and ground attachments for acquired vegetable land will be paid to the APs.

5.1.2 Endowment Insurance for LEFs

The district governments and community committees will cover endowment insurance for LEFs in a unified manner, namely 236 yuan/month from the district government and 100 yuan/month from the community, totaling 336 yuan/month.

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Figure 5-2 List of Subjects of Endowment Insurance in Baitayan Village

5.1.3 Nonagricultural Employment Promotion

The following nonagricultural employment promotion measures will be taken for surplus labor resulting from LA, especially young labor:

1) Public welfare jobs

The government will offer public welfare jobs, such as municipal construction, landscaping, cleaning and security, first to the APs. It is estimated that 200 public welfare jobs will be available per annum. Employees’ wages will be partly borne by the government and partly by employers. Employers will enter into contracts with them and cover insurance for them. See the website of the Huangshi Municipal Labor and Social Security Bureau for details.

2) Social jobs

With the development of the project area, numerous social jobs (about 1,500 per annum in the urban and nearby areas) will be generated for the APs.

3) Jobs generated by the Project

The Project will generate some temporary, scattered jobs at the construction stage, and long-term, stable jobs at the operation stage. It is estimated that 1,500 jobs will be generated by the Project, with daily pays of 100-150 yuan. See Table 5-2.

See http://www.hs12333.gov.cn/html/fwdt/bszn/jycj/2013/0922/2494.html.

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table 5-2 Summary of Expected Employment under the Project

Number of jobs Base pay Public Stage Type of jobs Remarks offered annually (yuan/month) welfare jobs

Unskilled 600 1225 70 Construction Construction Skilled 150 1500 30

After Unskilled 200 1225 140 Operation &

completion Skilled 50 1500 60 maintenance

To meet employment demand, the labor and social security authority will collect employment information, and disclose it in the affected communities timely. During employment, employers will enter into labor contracts with employees, offer necessary training to them, and pay them at not less than the prevailing minimum wage standard of Huangshi City (1,225 yuan/month in 2016). During employment, employees will receive equal pay for equal work like men do. However, employment of child labor is prohibited.

Figure 5-3 Employment Information Release in a Community

4) Small-amount loan for business startup

In order to promote employment and business startup, a small-amount loan mechanism for business startup has been established in Hubei Province, where local governments offer lending support, tax exemption, business startup services, subsidies and other supporting measures. The APs will be entitled to such measures.

5.1.4 Skills Training

The PMO will offer free agricultural and nonagricultural skills training to the directly affected laborers using special funds from municipal finance, covering crop cultivation, stockbreeding,

See http://www.hs12333.gov.cn/html/zcfg/fzxc/2012/0424/69.html.

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services, construction, etc. Qualified trainees will receive vocational qualification certificates.

5.2 Compensation for Fishpond Contractors

5.2.1 Basic Information

LA for Downstream Wetland Construction will affect two fishpond contractors in Baitayan Village and one in Chenbaizhen Community, as detailed belolw:

1) Baitayan Village has a fishpond area of about 300 mu, in which 230 mu has been contracted to Zhang Gaosheng since 2004 for a term of 15 years at 70,000 yuan per annum (5-6 workers hired, paid 3,000 yuan/month each), with annual net income of 200,000-300,000 yuan, and 70 mu contracted to Zhang Haiyuan since 2005 for a term of 15 years (2-3 workers hired, paid 2,000-3,000 yuan each). Without LA for the Project, the contracted fishpond will be withdrawn by Baita Trading Company in 2018 and 2019 respectively.

2) Chenbaizhen Community has a fishpond area of about 70 mu, contracted to a resident in Hangzhou East Road Community from 2004 to 2018 at about 10,000 yuan per annum. Without LA for the Project, the contracted fishpond will be withdrawn by the Chenbaizhen Community Committee in 2018.

It is learned that: Fishpond culture is unstable in income, where annual net income may be up to 1,000 yuan/mu, but in bad cases, contractors may incur losses; The 3 contractors are elderly, and cannot deal with physically demanding fishpond culture for a long time; The 3 contractors are willing to do other light physical labor.

5.2.2 Compensation and Resettlement

For the affected fishpond contractors, the PMO will compensate for affected fishery facilities, fry losses, etc. reasonably, where the compensation rate for fishery facilities is 1,000 yuan/mu and that for fries 1,573 yuan/mu. In addition, the PMO will take the following livelihood restoration measures for them:

1) Continuing with fishpond culture: There are still fishponds and lakes available in the project area, and the PMO will help the contractors find suitable nearby fishponds if they are willing to continue with fishpond culture.

2) Stockbreeding: There are many idle pig and poultry farms in the project area, and the contractors are willing to deal with stockbreeding if they can find suitable farms.

The PMO will finally develop a proper resettlement program for the contractors based on their personal expectations to ensure that their income is not reduced after LA, and their long-term livelihoods are secured.

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Chenbaizhen Community

Baitayan Village

Huangjinshan Development Zone Figure 5-4 Location of Huangjinshan Development Zone

5.3 Resettlement Program for Demolished Residential Houses

81 households with 363 persons will be affected by the demolition of residential houses. The demolished rural houses are characterized by unsound supporting facilities and aged structure. HD and resettlement activities in the Project will provide an opportunity for the AHs to improve residential conditions.

The resettlement modes for the demolition of residential houses include cash compensation and property swap.

5.3.1 Cash Compensation

According to the House Acquisition, Compensation and Resettlement Program for the Cihu Lake Wetland Project (XZZG [2017] No.3), and the Compensation Program for House Acquisition for Cihu Lake Wetland Park (First Draft), all demolished houses and attachments can be subject to cash compensation. See Section 4.2.3 for the compensation rates.

The AHs are encouraged to choose cash compensation, where they will receive one-time compensation for house value and decoration, a transition subsidy, and a moving subsidy. Those eligible will enjoy priority in housing security.

See Section 4.2.3 for the rates of transition subsidy, moving subsidy, etc.

Compensation rates for exterior decoration of main houses: to be consulted or appraised. See

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Table 4-5.

Reward policy: See Table 4-6.

5.3.2 Property Swap

According to the House Acquisition, Compensation and Resettlement Program for the Cihu Lake Wetland Project (XZZG [2017] No.3), and the Compensation Program for House Acquisition for Cihu Lake Wetland Park (First Draft), the resettlement measures for the AHs choosing property swap are as follows:

Each AH will settle the price difference between the demolished house and the resettlement house. The resettlement community is Jinguangsha Community.

The compensation for the acquired house will be paid until the resettlement house is handed over, and the price difference is settled as follows:

Price difference = recognized building area of acquired house × compensation rate + appraised compensation for decoration and attachments + reward – price of resettlement house +(-) any excess or shortage；The choice of substitute room area beyond the demolition assessment of the area settle account in accordance with the market price settlement.

The project encourages AHs to choose monetary compensation, but will fully respect the AHs’ option, and the final resettlement action will be decided by their option. Those who choosing monetary compensation will enjoy priority in housing security. and it will also ensure AHs who choosing property swap, will not be declined in living conditions due to housing demolition. Therefore, regardless the AHs’ option is Cash Compensation or property swap, their rights will be fully protected

Introduction to the resettlement community of the Project – Jinguangsha Community:

Jinguangsha Community was completed in early 2015, and is within 2.5km away from the community affected by HD, boasting an advantaged geographic location and a full range of supporting facilities, including hospital, school, kindergarten and supermarket. The community has a floor area of 207.7 mu and a total building area of 424,700 m2, with an average selling price of 4,080 yuan/m2 in 2016.

2) The resettlement houses with two bedrooms, one living room and one bathroom are available in 5 sizes (83 m2, 85 m2, 90 m2, 92 m2 and 95 m2), and those with 3 bedrooms, one living room and one bathroom in one size (120 m2). There are 100 houses in total.When choose the resettlement houses, AHs could pay their own choice of different units and area of house according to the actual needs of the family and the ability.

3) The community is planned, designed and constructed in accordance with the applicable

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national design, construction and quality control standards.

4) The community is subject to unified property management, where special maintenance funds are paid by proprietors for the maintenance and upgrading of public facilities in the community.

5) The resettlement houses can be traded on the market as commercial housing.

6) The resettlement houses are handed over with water and power supply, telephone, cable TV, broadband and gas lines, and necessary pipes.

Figure 5-5 Final Effects of the Jinguangsha Resettlement Community

Ke’ershan Communit y Jinguangsha Chenbaiz Community hen Jianlouxia Communit Communit y y

Baita Trading Company

Figure 5-6 Location of the Jinguangsha Resettlement Community

The AHs are encouraged to choose cash compensation, and those choosing cash compensation will receive a reward at 10% of the appraised value of the acquired house. Since nearby secondhand houses are generally below 4,000 yuan/m2, those choosing cash compensation will receive sufficient compensation to purchase nearby commercial housing.For the demolition of residents choose monetary resettlement, around the project affected area there are many

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high-quality low-cost sale of real estate, the average price of 3600 yuan/m2-5400yuan/m2, there are also many second-hand houses whose prices are generally below 4,000 yuan ,If LAs choose monetary compensation, according to the current compensation standard to ensure that the relocated households in the surrounding to buy the corresponding commercial housing. The project is shown in Figure 5-7. For the residents who are to be resettled, the demolished residents will choose the corresponding area according to the actual demand and combine their own economic payment capacity. In addition, at the time of demolition, the government will take the appropriate incentive and relief policies for resident households who meet the criteria for rewards and salvage, and effectively protect the residents affected by the demolition of the smooth removal of occupants.

Up to now, all the relocated households are for cash compensation, whether to choose the resettlement houses is up to themselves.

Sanjianggonghecheng |average price 3600yuan/m2 Ke’ershan Community

Anjiafenghuangcheng | average price 3600yuan/m2

Tianyumingliutiandi | average price 5000yuan/m2

Yangguangxinganxian |average price 4600yuan/m2 Jianlouxia Community

2 Chenbaizhen Community Hongweixindu | average price 5400yuan/m

4km

Baita gongmao company Aoshanxingcheng |average price 4000yuan/m2

Figure 5-7 Items around the sale of real estate distribution map

5.4 Resettlement Program for Demolished Non-residential Properties

The demolition of non-residential properties will affect 4 enterprises and 8 pig farms, which will be subject to cash compensation or non-local reconstruction, as shown below:

table 5-3 Resettlement Program for Demolished Non-residential Properties

No Enterpris Natur Propriet Business status Resettlement measure Remarks . e e or

Tianlong Privat Li Running on 2 mu of Offering cash compensation Run by Li 1 Door & e Shengliu collective land rented based on market appraisal, an Shengliu Window , Qi from Baita Trading equipment moving subsidy, (partnership),

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Co., Ltd. Chunme Company, with 12 and compensation for losses founded in 2005, i workers, annual from production suspension; profit shared at income 300,000 yuan and assisting in non-local year end restoration

Running on 14 mu of Offering cash compensation Founded in 1998 collective land rented based on market appraisal, an Chengxi from Baita Trading equipment moving subsidy, Privat Li 2 n Driving Company and compensation for losses e Shengliu School from production suspension; and assisting in non-local restoration

Lijiafang Running on 4 mu of Offering cash compensation Closed Storage collective land rented based on market appraisal, & Privat Li from Baita Trading and an equipment moving 3 Logistics e Chunjin Company, annual subsidy Compan income 600,000 yuan y

Running on 250 m2 of Offering cash compensation Private collective land rented based on market appraisal, an enterprise, not Root Zhang from Baita Trading equipment moving subsidy, registered Privat 4 Carving Jiachua Company, with 8 and compensation for losses e Factory n workers from production suspension; and assisting in non-local restoration

Closed Offering cash compensation Closed Huahu based on market appraisal, 5 Pig Public and an equipment moving Farm subsidy

Closed Offering cash compensation Closed Livestoc Privat based on market appraisal, 6 k farms e and an equipment moving (7) subsidy

Through consultation, the following resettlement measures will be taken for the 12 enterprises and farms affected by the demolition of non-residential properties in consultation with the Huangshi PMO, Baita Trading Company, Tuanchengshan Sub-district Office and affected community committees:

1) Compensation for closed enterprises

Lijiafang Storage & Logistics Company, 7 livestock farms and Huahu Pig Farm that have been closed will be subject to one-time cash compensation, compensation for losses from production suspension, a transition subsidy, and a moving subsidy, where the moving subsidy is 15 yuan/m2, and compensation for losses from production suspension will be granted for any property registered as a commercial property at a rate of not more than 8.6% (5% + 0.6% × 6 months) of the appraised value at a time.

2) Compensation for normally operating enterprises

Tianlong Door & Window Co., Ltd., Chengxin Driving School and Root Carving Factory that are

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operating normally in Xisaishan District will receive one-time cash compensation based on market appraisal, and their proprietors will be assisted in non-local reconstruction. It is learned that there are many idle workshops in nearby areas, which can be rented easily. The PMO will assist their proprietors in finding suitable workshops until they operate normally.

42 workers were affected by non-residential demolition. For the affected workers, they may choose to continue to work in the original factory after their plant is rebuilt, or choose to re-find other work. According to the survey of the resettlement planning group, the demolition of the project has less impact on the income of these workers. The original factory will also compensate these workers for the compensation fee for the loss of production. And around the impact of the project there are many building materials factory, furniture processing plants and other enterprises (factories) in the recruitment.

5.5 Women’s Development

During the resettlement process, women’s rights and interests will be fully protected, and women will be allowed to play an important role in socioeconomic and resettlement activities. The measures to promote women's development under the Project include:

1) Small-amount loan for women

In order to provide greater support to women’s business startup and employment, women will enjoy priority in applying for startup funds with the Huangshi Municipal Women’s Federation.

2) Women enjoy equal participation and decision-making rights in the development of resettlement programs.

During the public consultation process, and at village or village group meetings at which resettlement programs are discussed, women should enjoy equal participation and decision-making rights, and not less than 30% of attendees should be women. In addition, the Resettlement Office should be represented by women.

5.6 Assistance Measures for Vulnerable Groups

The Project will affect 4 vulnerable households with 6 persons, including old people living alone, MLS households and households affected by disability. Except that these vulnerable households will be resettled as planned, the PMO will also offer extra assistance measures to help them restore production and living conditions as soon as possible.

An AH that enters into a HD compensation agreement and is relocated on schedule will receive a one-time subsidy of 5,000 yuan in the following cases (not more than 10,000 yuan per household): dependents of active servicemen and martyrs; city-level or above model workers; disabled

51

persons; patients of serious diseases; MLS households; people aged 80 years or above.

table 5-4 Support for Vulnerable Groups

Entitlement to Entitlement to Vulnerable Identification compensation for compensation for Funding source group land house

Offering monthly Ensuring Government and collective Five-guarantee Officially identified allowance and minimum subsidies medical benefit standard housing

Ensuring Disbursed from special Special skills Widows Obvious minimum funds in contingencies if training standard housing necessary

Offering Ensuring Disbursed from special Women-headed Widowed, divorced childcare and minimum funds in contingencies if households or separated training funds standard housing necessary

Ensuring Disbursed from special Special The disabled Officially identified minimum funds in contingencies if allowance standard housing necessary

Ensuring Disbursed from special Special Old people 70 years or above minimum funds in contingencies if allowance standard housing necessary

Ensuring Disbursed from special Poor Per capita less Special minimum funds in contingencies if households than 2,300 yuan allowance standard housing necessary

Seriously 1% of fund for Ensuring Disbursed from special Identified through affected credit or more minimum funds in contingencies if DMS households compensation standard housing necessary

Ensuring Disbursed from special Households with With only one / minimum funds in contingencies if crude houses crude house standard housing necessary

Households Offering priority Disbursed from special Losing over 50% suffering serious in training and / funds in contingencies if of farmland losses employment necessary

5.7 Restoration Program for Infrastructure and Ground Attachments

The affected infrastructure and ground attachments will be compensated for by the project owner, and then restored by their respective proprietors.

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. Affected special facilities will be demolished according to the construction drawings without affecting project construction and with minimum amount of relocation. Affected pipelines will be rebuilt before demolition (or relocated) without affecting regular lives of residents along such pipelines (including those not to be relocated). See Tables 4-9 and 4-10.

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6. Organizational Structure

6.1 Resettlement Implementation and Management Agencies

6.1.1 Organizational Setup

Since March 2010, the resettlement agencies of the Project have been established successively, and their responsibilities defined clearly. The agencies responsible for resettlement are:

Huangshi Project Leading Group

Huangshi PMO

HUCIC

Huangshi Municipal Land and Resources Bureau

IA

Sub-district offices

Community committees

External M&E agency

6.1.2 Organizational Responsibilities

Huangshi Project Leading Group

Leading the decision-making and construction of the Project

Huangshi PMO

1) Contacting with the Huangshi Project Leading Group, provincial and municipal departments concerned, and ADB

2) Submitting documents related to the Project and resettlement to the state, provincial and municipal departments concerned for approval

3) Inspecting and directing the IA

HUCIC

1) Appointing a resettlement consulting agency to prepare for resettlement

2) Coordinating the consulting agency with other agencies at the preparation stage

3) Coordinating the implementation progress of the Project and the RP

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4) Reporting the resettlement fund disbursement plan and supervising the disbursement of funds

5) Coordinating the work of the resettlement agencies

6) Raising resettlement funds

7) Disbursing resettlement funds

8) Responsible specifically for resettlement implementation

9) Tracking and supervising the disbursement of resettlement funds

10) Handling grievances and appeals of APs arising from resettlement

11) Supporting the work of the external M&E agency

12) Collecting and compiling information required for internal monitoring reporting

13) Managing resettlement archives

14) Training persons responsible for resettlement

15) Applying for land use and construction permits with competent authorities

Huangshi Municipal Land and Resources Bureau

1) Developing resettlement policies in coordination with the competent authorities

2) Taking full charge of LA affairs (including endowment insurance for LEFs)

IA

1) Preparing for resettlement with the resettlement consulting agency

2) Developing policies under this RP

3) Reporting the progress of resettlement to the Huangshi PMO

4) Reporting communication and coordination with other agencies during resettlement to the Huangshi PMO

5) Submitting the resettlement budget to the Huangshi PMO and supervising the disbursement of funds

6) Managing resettlement files

7) Conducting internal resettlement monitoring

8) Receiving ADB resettlement experts at the preparation and implementation stages

9) Handling grievances and appeals arising from resettlement

10) Communicating with the external M&E agency during resettlement

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11) Constructing the resettlement site

12) Taking employment measures for APs

Sub-district offices

1) Participating in the DMS

2) Participating in compensation calculation

3) Participating in compensation payment

4) Participating in resettlement house design and construction

5) Participating in developing measures for resettlement house allocation

6) Participating in appeal handling

7) Allocating resettlement houses

8) Participating in skills training for APs

9) Implementing employment measures for APs

Community committees

1) Participating in the DMS

2) Participating in compensation calculation

3) Participating in compensation payment

4) Participating in resettlement house design and construction

5) Participating in developing measures for resettlement house allocation

6) Participating in appeal handling

7) Allocating resettlement houses

8) Participating in skills training for APs

9) Implementing employment measures for APs

External M&E agency

Preparing and submitting resettlement M&E reports to the PMO and ADB

6.1.3 Organizational Chart

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Figure 6-1 Organizational Chart

6.2 Staffing and Equipment

6.2.1 Staffing

The Huangshi PMO has a workforce of 4. The resettlement staff has strong organizing and coordinating capabilities, and rich experience in resettlement, and is competent for the resettlement work. See Tables 6-1, 6-2 and 6-3.

table 6-1 Resettlement Agencies and Staffing

Agency Head Workforce Huangshi Project Leading Group Liu Heming 2

Huangshi PMO Ruan Hongquan 2

HUCIC Xu Zhidan 4

Huangshi Municipal Land and Wu Fengyu 4 Resources Bureau

Huang Bin, Cao Chunlin, Wu Minsheng, IA 25 Wang Qiong, Fan Jie, Liu Zijin Sub-district offices 3

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Agency Head Workforce

Community committees 5

table 6-2 Staffing and Working Schedule of Resettlement Agencies

Agency Workforce Composition Operating period

Huangshi Project Leading From April 2017 to the completion 2 Civil servants Group of resettlement

From April 2017 to the completion Huangshi PMO 2 Civil servants of resettlement

From April 2017 to the completion 4 Civil servants HUCIC of post-resettlement evaluation

From April 2017 to the completion Huangshi Municipal Land and 4 Civil servants Resources Bureau of post-resettlement evaluation From April 2017 to the completion 25 Civil servants IA of resettlement From April 2017 to the completion - 5 Civil servants Sub district offices of post-resettlement evaluation

From April 2017 to the completion 10 Officials Community committees of post-resettlement evaluation

table 6-3 Equipment of Resettlement Agencies

Computer Camera Vehicle Office Agency / / / (m2)

Huangshi Project Leading Group 1 1 1 100

Huangshi PMO 5 1 1 100 HUCIC 3 1 1 120

Huangshi Municipal Land and 3 1 1 70 Resources Bureau

IA 6 6 6 350

Sub-district offices 5 1

Community committees

6.2.2 Equipment

All resettlement agencies 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

The following measures will be taken to strengthen institutional capacity:

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1) Leadership responsibility system: establishing a leading team headed by the leader in charge of the district government and composed of leaders from departments concerned;

2) Well-trained staff: All resettlement agencies are provided with staff experienced and proficient in policies and operations;

3) Definition of responsibilities: The responsibilities of all resettlement agencies have been defined in accordance with ADB’s requirements, and the applicable laws and regulations of the PRC.

4) Staff training: The resettlement staff will be trained on resettlement policies and file management, with a general budget of 120,000 yuan;

5) Public supervision: All resettlement information should be disclosed to the public for supervision.

6) Resettlement disclosure meetings are held irregularly and relevant information is disclosed as briefs;

7) The PMO has provided all resettlement activities with necessary vehicles and office facilities to meet their needs.

In addition, since 2014, the resettlement staff has received the following training (see .

).

table 6-4 Resettlement Training Schedule

Agency No. Scope Trainees Time responsible

Learning resettlement Resettlement 1 Huangshi PMO experience from ADB-financed 2014-2016 office staff projects in other provinces

External M&E Resettlement 2 ADB’s resettlement policy Feb. 2014 agency office staff External M&E Updates of state policies on LA Resettlement 3 Feb. 2014 agency and HD office staff

Experience and lessons in Resettlement Feb. – Dec. 4 Huangshi PMO resettlement from other places office staff 2014 Computer operation and data Resettlement Feb. – Dec. 5 Huangshi PMO processing office staff 2014

Sub-district and Resettlement procedures and community Feb. – Jun. 6 IA policies for ADB-financed resettlement 2014 projects teams

Sub-district and Resettlement policies and community Feb. – Jun. 7 IA practice resettlement 2014 teams

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Agency No. Scope Trainees Time responsible

Learning international Resettlement 8 Huangshi PMO 2014-2016 experience in resettlement office staff

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7. Public Participation and Grievance Redress

7.1 Public Participation

At the resettlement planning and implementation stages, great importance was paid to public

participation and consultation to solicit comments from social organizations, government

departments and APs. All stakeholders are encouraged to participate in resettlement and

restoration. See Table 7-1.

7.1.1 Public Participation at the Preparation Stage

Since 2015, the Huangshi PMO, HUCIC, design agency and task force have conducted a

series of socioeconomic survey and public consultation activities (with 30% of participants being

women). At the preparation stage, the PMO, IA and design agency conducted extensive

consultation on land acquisition and resettlement. See Error! Reference source not found. and

Appendix 3.

table 7-1 Public Participation at the Preparation Stage

#

Male Female Time Organizer Participants Purpose Key points Suggestions Actions

Appraising Appraising Appraising A report has been 2016.1 District houses and houses to be houses and prepared, and will be Appraisal 12 2 construction 80 attachments demolished attachments fairly submitted to the district agency, AHs 0 -2017.1 bureaus rationally and justly construction bureaus for decision-making.

Disclosing Online 2017 budget of The relevant information Huangshi receipts and disclosure of the Huangshi has been disclosed on 2017.0 Municipal payments, the 2017 PMO the official website PMO, HUCIC / / 2 Construction and annual budget of the (http://www.hsjgw.gov.c Bureau schedule Huangshi PMO n/View/2017/02/10/2138 0.html).

2017.0 Huangshi Task force, 12 12 Completing Learning Further improving The RP has been 3 PMO district 9 6 and project LA and HD completed based on the construction submitting progress, DMS, compensation survey results, and will

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#

Male Female Time Organizer Participants Purpose Key points Suggestions Actions

bureaus, AHs the RP socioeconomic programs, and be submitted to the survey working efficiency Huangshi PMO.

7.1.2 Public Participation at the Implementation Stage

With the progress of project preparation and implementation, the IA will conduct further public

participation. See Table 7-2.

table 7-2 Public Participation Plan

Participant Purpose Mode Time Agencies Topics s

RIB distribution Bulletin Distributing the RIB Huangshi PMO, board, Apr. 2017 Resettlement Department, All APs community affected communities meeting

LA Bulletin Disclosure of LA area, Huangshi PMO, announcement board, compensation rates and Jun. 2017 Resettlement Department, All APs community resettlement modes, etc. affected communities meeting

Announcement Compensation fees and of Bulletin mode of payment Huangshi PMO, compensation board, Jul. 2017 Resettlement Department, All APs and community affected communities resettlement meeting options for HD

Verification of Finding out anything DMS results Huangshi PMO, omitted to determine the Field Aug. – Resettlement Department, All APs final impacts; preparing survey Sep. 2017 affected communities basic compensation agreements

Determination Communit Before Huangshi PMO, Discussing the final income

of income y meeting implement Resettlement Department, All APs restoration program and the - restoration (many tation affected communities program for use of

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programs times) compensation fees

Resettlement Huangshi PMO, / Communit 3 months house selection Resettlement Department, All APs y meeting before HD affected communities

Training Resettlement Department, Discussing training needs Sep. 2017 program Communit labor and social security – Sep. All APs y meeting bureau, affected 2018 communities

Monitoring 1) Resettlement progress and impacts

Huangshi PMO, Resident Oct. 2017 2) Payment of Resettlement Department, participatio – Dec. All APs compensation external M&E agency, n 2019 affected communities 3) Information disclosure

4) Livelihood restoration and house reconstruction

Figure 7-1 LA Announcement and HD Appraisal Result Disclosure

7.2 Grievance Redress

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:

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1. Grievance redress procedure

Stage 1: If any right of an AP is infringed on in respect of LA or resettlement, he/she may report to the community committee to solve the appeal within two weeks.

Stage 2: If the grievant is dissatisfied with the reply of Stage 1, he/she may file an appeal with the sub-district office after receiving the above disposition, which shall make a disposition within two weeks.

Stage 3: If the grievant is dissatisfied with the reply of Stage 2, he/she may file an appeal with the Huangshi PMO after receiving the above disposition, which shall make a disposition within two weeks.

Stage 4: If the grievant is still dissatisfied with the disposition of Stage 3, he/she may file an appeal with the competent authorities level by level for arbitration in accordance with the

Administrative Procedure Law of the PRC after receiving the above disposition.

At any stage, an AP may bring a suit in a civil court directly if he/she is dissatisfied with the grievance redress procedure or disposition.

If any AP may also file an appeal with the Office of the Special Facilitator or Compliance

Review Panel of ADB in accordance with ADB’s accountability mechanism.3

All agencies will accept grievances and appeals from the APs for free, and costs so reasonably incurred will be disbursed from the contingencies. At the whole construction stage, the above procedure will remain effective so that the APs can use it to solve relevant issues. The above appeal channel will be disclosed to the APs via the RIB and mass media.

The Huangshi PMO will inspect the registration of appeal and handling information regularly, and will prepare a registration form for this purpose, as shown in Table 7-3. See also Table 7-4 and

Figure 7-1.

3See http://www.adb.org/Accountability-Mechanism/default.asp. 63

table 7-3 Registration Form of Grievances and Appeals

Accepting agency: Time: Location:

Proposed Actual Appellant Appeal Expected solution solution handling

Recorder Appellant (signature) (signature)

Notes: 1. The recorder should record the appeal and request of the appellant factually. 2. The appeal

process should not be interfered with or hindered whatsoever. 3. The proposed solution should be

notified to the appellant within the specified time.

table 7-4 Contact Information for Grievances and Appeals

Agency Name Address Tel

PMO Shan Chao Guangzhou Road, Huangshi 18986601180

HUCIC Liu Chunchun No.28 Cihu East Road, Huangshi 0714-6261736

Huangshi Municipal Urban Meng Kai No.700 Huangshi Avenue 0714-6225898 Administration Bureau

Xisaishan District Environmental No.533 Yiyang Road, Xisaishan Wu MInsheng 0714-6210393 Sanitation Bureau District

Xialu District Environmental Wang Qiong No.4 Shenniu Road, Xialu District 0714-5317293 Sanitation Bureau

Tieshan District Environmental No.19 Shenghongqing Road, Fan Jie 0714-5421368 Sanitation Bureau Tieshan District

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Urban construction and No.189 Jinshan Avenue, maintenance company of Liu Zijin 0714-6357619 development zone development zone

2. Principles for grievance redress

All resettlement agencies must conduct field investigation on grievances raised by APs, and address them through adequate consultation objectively and fairly in accordance with the principles herein. During resettlement, women may have their special grievances, so each resettlement agency will have at least one female member to handle women’s grievances.

Figure 7-2 Community-based Grievance Redress Mechanism

3. Scope and modes of reply to grievances

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1) Scope of reply to grievances a) Brief description of grievance; b) Investigation results; c) Applicable state provisions, and the principles and rates specified in this RP; d) Disposition and basis

2) Modes of reply a) For any individual grievance, the reply will be delivered directly to the grievant in writing. b) For any common grievance, a village meeting will be held or a notice given to the village committee. c) In whichever mode of reply, the reply materials must be sent to the grievant and submitted to the competent resettlement agency.

3) Recording and feedback of grievances and appeals

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

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8. Resettlement Budget

8.1 Resettlement Budget

The resettlement budget of the Project is 233.8053 million yuan, including 233.505 million yuan for Downstream Wetland Construction, 0 for Sewer Network Construction, and 300,300 yuan for

Lake Ecology Rehabilitation (Phase 2).

1) Permanent LA: 1,590.29 mu of collective land will be acquired permanently for the Project, with LA costs totaling 78.8826 million yuan, accounting for 33.74% of the budget, including land compensation, resettlement subsidy, compensation for young crops, ground attachments, fishpond facilities and fries, etc.

2) Temporary land occupation: State-owned roads of 347.26 mu will be occupied temporarily, involving no compensation.

3) HD: 81 residential houses will be demolished for the Project, and the demolition of non-residential properties will affect 4 enterprises and 6 farms (closed) in Xisaishan District, and one farm in Huangshigang District, with HD costs totaling 104.938 million yuan, accounting for

44.88% of the budget.

5) Compensation fees for ground attachments of 10.8136 million yuan, accounting for 4.63%;

6) Other costs (including resettlement planning and design costs, M&E costs, implementation management costs, training costs, LA taxes, contingencies, etc.) of 39.1712 million yuan, accounting for 16.75%.

See Table 8-1.

8.2 Resettlement Investment Schedule and Funding Sources

All resettlement funds of the Project 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.

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table 8-1 Resettlement Investment Plan

Year 2017 2018 Total

Amount of investment (0,000 yuan) 16366.37 7014.16 23380.53

Percent 70% 30% 100%

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table 8-2 Resettlement Budget

Lake Ecology Downstream Wetland Sewer Network Rehabilitation Rate Construction Construction No. Item Unit (Phase 2) Total Total Percent (yuan)

Qty. Budget Qty. Budget Qty. Budget

1 Basic resettlement costs

Compensation for permanent 1.1 mu 0.00 0.00 0.22 0.00 25.23 0.00 25.45 0.00 occupation of state-owned land

Compensation for permanent 1.2 78882647.03 33.74% acquisition of collective land

Woodland mu 50750.00 2.45 124337.50 2.45 124337.50

Lake surface mu 49000.00 868.58 42560420.00 868.58 42560420.00

Water facility land mu 49000.00 355.60 17424400.00 355.60 17424400.00

Urban and industrial land mu 49000.00 363.66 17819340.00 363.66 17819340.00

Young crops m2 3.15 12441.5 39190.73 12441.50 39190.73

Fishpond facilities and fries mu 2573.00 355.60 914958.80 355.60 914958.80

Compensation for temporary 1.3 mu 0.00 347.26 0.00 347.26 0.00 occupation of state-owned land

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1.4 HD compensation 104937954.00 44.88%

1.4.1 Xisaishan District

Gross budget for HD and house See attachments 62499833.00 Appendix 11

1.4.2 Xialu District

Gross budget for HD and house See attachments 42188121.00 Appendix 12

1.4.3 Huangshigang District

Non-residential properties in m2 500.00 500.00 250000.00 500.00 250000.00 masonry timber structure

Compensation for ground 1.5 10813559.20 4.63% attachments

Trees /

Scattered timber trees (big) / 180.00 896.00 161280.00 896.00 161280.00

Scattered timber trees (medium) / 100.00 701.00 70100.00 701.00 70100.00

Scattered timber trees (small) / 40.00 21112.0 844480.00 21112.00 844480.00

Scattered commercial trees (big) / 220.00 8962.00 1971640.00 8962.00 1971640.00

Scattered commercial trees / 120.00 30222.0 3626640.00 30222.00 3626640.00

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(medium)

Scattered commercial trees (small) / 50.00 81019.0 4050950.00 81019.00 4050950.00

Scattered special trees (big) / 220.00 97.00 21340.00 97.00 21340.00

Scattered special trees (medium) / 120.00 66.00 7920.00 66.00 7920.00

Scattered special trees (small) / 50.00 139.00 6950.00 139.00 6950.00

Biogas tanks m³ 150.00 75.36 11304.00 75.36 11304.00

Septic tanks m³ 500.00 14.34 7170.00 14.34 7170.00

Masonry m³ 200.00 8.87 1774.00 8.87 1774.00

Dry stone m³ 390.00 19.08 7441.20 19.08 7441.20

Brick m³ 65.00 18.00 1170.00 18.00 1170.00

Cement telegraph pole / 1800.00 13.00 23400.00 13.00 23400.00

Basic costs 194384160.23 250000.00 194634160.23

Resettlement planning and 2 3887683.20 5000.00 3892683.20 1.66% monitoring costs (2% of basic costs)

Resettlement planning and design 2.1 971920.80 1250.00 973170.80 costs (0.5% of basic costs)

Resettlement M&E costs (1.5% of 2.2 2915762.40 3750.00 2919512.40 basic costs)

3 Resettlement management costs 5831524.81 7500.00 5839024.81 2.50%

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(3% of basic costs)

4 Training costs (0.6% of basic costs) 1166304.96 1500.00 1167804.96 0.50%

5 Taxes and fees on LA 7007633.77 9000.00 7016633.77 3.00%

LA management costs (3.6% of 5.1 6997829.77 9000.00 7006829.77 basic costs)

5.2 Forest vegetation restoration costs m2 6.00 1634 9804.00 1634.00 9804.00

Total LA and HD costs (Subtotal of 6 212277306.97 273000.00 212550306.97 Items 1-5)

Contingencies (10% of the subtotal 7 21227730.70 27300.00 21255030.70 9.09% of Items 1-5)

8 General resettlement budget 233505037.66 0.00 300300.00 233805337.66

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8.3 Disbursement and Management of Resettlement Funds

8.3.1 Disbursement of Resettlement Funds

Resettlement funds will be disbursed as follows: All costs related to LA will be included in the general budget of the Project. HUCIC will disburse compensation fees based on the compensation rates directly to the functional department of the district government via a special account, for further payment to the communities for distribution or direct payment to the AHs. Land compensation will be paid before LA. See Error! Reference source not found..

Figure 8-1 Resettlement Disbursement Flowchart

8.3.2 Management of Resettlement Funds

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.

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: 73

All costs related to resettlement will be included in the general budget of the Project.

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.

74

9. Resettlement Implementation Plan

9.1 Principles for Resettlement Implementation

According to the implementation schedule of the Project, the Project will be constructed for 26

months from October 2017 to the end of 2019. In order that the resettlement schedule links up the

construction schedule of the Project, LA will begin in June 2017 and be completed in October 2017.

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 Project. 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

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. See Error! Reference source not found..

table 9-1 Resettlement Implementation Schedule

No. Resettlement Task Agency responsible Time Remarks

1 Information disclosure

RIB PMO, Resettlement 1.1 Project area Jun. 2017 Department

75

Disclosure of the RP on PMO, Resettlement 1.2 Jun. 2017 ADB’s website Department

2 RP and budget

RP and budget approval HMG, Huangshi 233.8053 2.1 (compensation rates) PMO, Resettlement Jun. 2017 million yuan Department

3 LA announcement

LA announcement Xisaishan and 3.1 HMG, PMO Jul. 2017 Xialu Districts

4 Compensation agreement

LA and HD compensation Xisaishan and Resettlement 4.1 Jun. – Sep. 2017 agreements Xialu Districts Department

5 HD

Selection of resettlement 5.1 81 AHs HMG, AHs Jun. – Aug. 2017 mode

HD Aug. – Sep. 5.2 81 AHs AHs 2017

Purchase of resettlement / HUCIC Aug. – Oct. 2017 house

6 Implementation of restoration measures

Compensation for crops Xisaishan and Jun. 2017 – Jul. 6.1 Huangshi PMO and attachments Xialu Districts 2017

Implementation of Xisaishan and Jun. 2017 – Jun. 6.2 Huangshi PMO restoration programs Xialu Districts 2019

Implementation of training Xisaishan and Labor and social Jun. 2017 – Jun. 6.3 program Xialu Districts security bureau 2019

Vulnerable households Xisaishan and Jun. 2017 – Jun. 6.4 Civil affairs bureau Xialu Districts 2019

Identifying and hiring PMO, labor and Xisaishan and Jun. 2017 – Dec. 6.5 households for employment social security Xialu Districts 2019 under the Project bureau, contractor

Assisting APs in Xisaishan and From now to 6.6 reemployment, including PMO, contractor Xialu Districts Jun. 2019 offering skills training

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7 Capacity building

Training of Huangshi PMO Complete 7.1 15 men-times PMO Oct. 2016 staff d

Training of sub-district and PMO, Resettlement 7.2 50 men-times Mar. – Jun. 2017 community officials Department

8 M&E

Baseline survey Xisaishan, Xialu and 8.1 External M&E agency Mar. 2017 Huangshigang Districts

Establishing an internal PMO, Resettlement 8.2 As per the RP Mar. 2017 monitoring mechanism Department

Appointing an external M&E 8.3 One PMO Mar. 2017 agency

Internal monitoring PMO, Resettlement 8.4 Quarterly From Mar. 2017 reporting Department

External monitoring Aug. 2017 1st report 8.5 reporting Semiannual External M&E agency Dec. 2017 2nd report

External evaluation Jun. 2018 3rd report 8.6 reporting Semiannual External M&E agency Dec. 2018 4th report

8.7 Completion report Annual External M&E agency Jun. 2019 5th report

Post-evaluation report Post-evaluation PMO, Resettlement 8.8 Dec. 2020 report Department

Public consultation Resettlement 9 Ongoing Department

Grievance redress Resettlement 10 Ongoing Department

11 Disbursement of compensation fees

11.1 - Disbursement to the IA Funds HMG Jun. 2017

- Disbursement to Resettlement 11.2 Funds Jun. 2017 communities Department

- Disbursement to AHs Resettlement 11.3 Funds End of Jul. 2017 Department

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12 Commencement of civil construction

Downstream Wetland Breaking 12.1 Construction ground on PMO Oct. 2017 schedule

Sewer Network Breaking 12.2 Construction ground on PMO Oct. 2017 schedule

Lake Ecology Rehabilitation Breaking 12.3 (Phase 2) ground on PMO Oct. 2017 schedule

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10. Monitoring and Evaluation

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

10.1 Internal Monitoring

Internal monitoring will cover the following:

1) Organizational structure: setup, division of labor, staffing and capacity building of resettlement implementation and related agencies;

2) Resettlement policies and compensation rates: development and implementation of resettlement policies; actual implementation of compensation rates for different types of impacts

(permanent LA, temporary land occupation, HD, relocation of entities and special facilities), with particular focus on compliance with the rates in the RP and reasons for deviations;

3) LA, HD and resettlement progress: overall and annual schedules, resettlement agencies and staffing, LA and HD progress, construction progress of resettlement housing and special facilities, progress of relocation and other resettlement activities;

4) Resettlement budget and implementation thereof: level-by-level disbursement of resettlement funds, fund use and management, disbursement of compensation fees to proprietors, holders of land use rights and land users, village-level use and management of compensation fees, supervision and auditing of fund use;

5) Employment and resettlement of APs: main modes of resettlement, employment and resettlement of APs in entities, resettlement of vulnerable groups, effectiveness of resettlement;

6) House reconstruction and livelihood restoration of APs: form of house reconstruction, construction of supporting facilities, payment of compensation, relocation, etc.;

7) Restoration and reconstruction of entities and special facilities (power, water supply, communication, transport, pipeline, etc.); 79

8) Grievance redress, public participation and consultation, information disclosure, and external monitoring: appeal channel, procedure and agencies; key points of appeal and handling thereof, key activities and progress of public participation and consultation, information disclosure, external

M&E agency, activities and effectiveness;

9) Handling of relevant issues in the Memorandum of the ADB Mission; and

10) Existing issues and solutions.

10.2 External Monitoring

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

External Monitoring is ready.

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 Huangshi PMO and ADB.

10.2.1 Scope and Methods

1) Baseline survey

The external M&E agency will conduct a baseline survey of the affected community and groups affected by land acquisition to obtain baseline data on the monitored APs’ 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: 15% of households affected by LA, 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

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 80

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 houses;

Compensation for lost properties;

Timetables of the above activities (applicable at any time);

Resettlement organization;

Income growth of labor through employment; and

If APs have benefited from the Project

3) Public consultation

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

4) Grievance redress

The external M&E agency will visit the affected villages and groups periodically, and inquire the affected sub-district 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

The external M&E agency will submit a monitoring or evaluation report to ADB and the Huangshi

PMO semiannually. See Table 10-1.

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table 10-1 Resettlement M&E Schedule

Report Date

1 Baseline socioeconomic survey report Aug. 2017

2 Monitoring report (No.1) Aug. 2017

3 Monitoring report (No.2) Dec. 2017

4 Evaluation report (No.1) Aug. 2018

5 Evaluation report (No.2) Dec. 2018

6 Evaluation report (No.3) Dec. 2019

7 Completion report Dec. 2020

10.3 Post-resettlement Evaluation

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 Huangshi PMO and ADB. The Post-evaluation Report will be prepared after the completion of the last external M&E report, and is expected to be completed in December 2019.

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Appendix 1: RIB

1. Basic information

In order to promote Huangshi City’s environmental improvement and urban development, HMG has applied for a loan with ADB for integrated water pollution control. The Project formerly consisted of

Wastewater Collection and Treatment, Inland Lake Ecological Rehabilitation and River-lake

Connection, Sludge Treatment and Disposal, Solid Waste Management, and Capacity Building and

Institutional Strengthening. Due to policy changes, etc., River-lake Connection cannot be implemented, and the Project has been adjusted. HMG is the executing agency of the Project, and

HUCIC is the IA.

After the adjustment, the Project consists of: 1) Downstream Wetland Construction; 2) Sewer

Network Construction; 3) Lake Ecology Rehabilitation (Phase 2); 4) Waste Transfer Station

Equipment Upgrading and Vehicle Purchase; 5) Emergency Drainage Equipment.

2. RP implementation period

From July 2017 to December 2020

3. Resettlement agencies

The agencies responsible for resettlement are:

Huangshi Project Leading Group

Huangshi PMO

HUCIC

Huangshi Municipal Land and Resources Bureau

IA

Sub-district offices

Community committees

External M&E agency

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4. Compensation rates

1) LA

The LA compensation rates of the Project are based on the Uniform AAOV Rates and

Location-based Composite Land Prices for Land Acquisition of Hubei Province (HPG [2014]

No.No.12), and the Letter of the Hubei Provincial Land and Resources Department on LA

Compensation Multiples, Correction Factors and Young Crop Compensation Rates for Huangshi

City (HPLRD [2009] No.1643). See Table 1.

Table 1 LA Compensation Rates

Baitayan, Ke’ershan, Village / community Chenbaizhen, Jianlouxia

Location-based composite land price yuan/mu 49000

Land compensation yuan/mu 17500

Resettlement subsidy yuan/mu 31500

Young crop Ordinary cultivated land yuan/mu 1750

compensation Vegetable land yuan/mu 2100

Fishpond Facilities yuan/mu 1000

compensation Fries yuan/mu 1573

2) HD

The resettlement modes include cash compensation and property swap. The benchmark rates have been fixed by reference to similar houses through market appraisal. See Tables 2 to 5.

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Table 2HD Compensation Rates

Item Rate Remarks

Residence Residence 3 yuan/m2 per month, at least 400 yuan/month per household, for Transition subsidy 3 months (cash compensation) or 5 months (property swap)

Moving subsidy 1500 yuan per household

Telephone relocation 216 yuan each

Cable TV relocation 1160 yuan per household

Broadband relocation 116 yuan per household Moving Kilowatt-hour meter relocation 416 yuan per household (none in case of property swap) rates

Water meter relocation 786 yuan per household (none in case of property swap)

150 yuan each for window-mounted type; 200 yuan each for Air-conditioner relocation wall-mounted or cabinet type

Solar water heater relocation 600 yuan each

Table 3 Benchmark Compensation Rates for Main Houses

Item Structure Rate (yuan/m2)

Reinforced concrete 4380

Masonry concrete 4180 Main houses Masonry timber 4080

Simple 500

Note: The above rates are for reference only.

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Table 4 Benchmark Compensation Rates for House Attachments

Item Structure Rate (yuan/m2)

Masonry concrete 700

Masonry timber 500 House attachments Simple house 300

Simple shed 150

Table 5 Compensation Rates for Exterior Decoration of Main Houses

Decoration type Grade Compensation rate (yuan/m2)

III =<60

Simple II =<100

I =<200

III =<300

Ordinary II =<400

I =<500

III =<600

Deluxe II =<700

I To be consulted based on appraisal, but not more than 10%

Losses from production suspension of non-residential properties: Such compensation will be granted for any property registered as a commercial property at a rate of not more than 8.6% (5% +

0.6% × 6 months) of the appraised value at a time, including a transition subsidy (0.6% of the appraised value, for 6 months).

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Rewards: If an AH enters into a HD compensation agreement with the IA and empties its house on schedule after the date of the HD announcement, it will be rewarded. See Table 6.

Table 6 Reward for Main Houses

Reward Time Rate

=< 30 days 30,000 per household

Personal contract signing 30-45 days 20,000 per household reward

45-60 days 10,000 per household

Personal moving reward Emptying the house within the agreed period 10,000 per household

Overall moving reward Completing relocation within 60 days 10,000 per household

Assistance policy: An AH that enters into a HD compensation agreement and is relocated on schedule will receive a one-time subsidy of 5,000 yuan in the following cases (not more than 10,000 yuan per household): dependents of active servicemen and martyrs; city-level or above model workers; disabled persons; patients of serious diseases; MLS households; people aged 80 years or above.

3) Permanent occupation of state-owned land

25.45 mu of state-owned land to be occupied permanently for the Project will be allocated for free.

4) Temporary occupation of state-owned land

State-owned roads of 347.26 mu to be occupied temporarily for the Project will be restored by the construction agency.

5) See Tables 4-9 and 7.

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Table 7 Compensation Rates for Attachments

Item Unit Rate (yuan) Remarks

Brick column Cement with sand m³ 385

Concrete m2 95 Ground Cement m2 50 10cm thick

Cement m³ 380 Enclosing wall Brick m³ 600

Cement / red tile m³ 150 At least appraised at Parterre

Tile m³ 220 1m³

Cement / red tile m³ 150 At least appraised at Pool

Tile m³ 220 1m³

Open / 2200

Well With handle / 2700

With motor / 3150

Dry M 40

Ditch Cement with sand M 50 0.5 deep, 0.3 wide

With cover M 70

Retaining wall Masonry m³ 200

Cement M 25

Slab Prefab M 60 b=0.5

Cast-in-place m2 300 Thickness, steel bar

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Slope step Brick with cement coating m2 65

Brick with cement coating m³ 390 Step With tile m³ 430

Septic tank / 500

Biogas tank m³ 150 >3m

Steel m2 150 Simple shed Including ground Round timber, asbestos tile m2 110

Simple m2 50

Flower stand, Support shed Brick frame m2 80 vegetable shed, etc.

Steel / concrete frame m2 100

Stairways Iron M 180

Birdhouse m2 60

Round bar M 70 Handrail Stainless steel M 140

Water tank / 450

PVC M 8 Downpipe Cast iron M 15

Concrete m³ 425 Concrete Reinforced m³ 500

Gatehouse m³ 600 iron gate Round bar m2 180

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With wrought iron m2 300

White iron m2 60 Canopy Prefab slab m2 100

Culvert M 150

Single opening / 600 Cooking range Double opening / 1200

Rockery m2 150-500 At most two per HH

Smoke-free range / 300

Roman column / 10

Stone table With stone benches Set 500

Table 8 Compensation Rates for Trees

Item Unit Rate (yuan)

Small / 10 Miscellaneous Medium / 40 trees

Big / 50

Small / 40

Alley trees Medium / 100

Big / 180

Small / 50 Fruit trees Medium / 120

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Big / 220

5. Grievance redress

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:

1) Grievance redress procedure

Stage 1: If any right of an AP is infringed on in respect of LA or resettlement, he/she may report to the community committee to solve the appeal within two weeks.

Stage 2: If the grievant is dissatisfied with the reply of Stage 1, he/she may file an appeal with the sub-district office after receiving the above disposition, which shall make a disposition within two weeks.

Stage 3: If the grievant is dissatisfied with the reply of Stage 2, he/she may file an appeal with the

Huangshi PMO after receiving the above disposition, which shall make a disposition within two weeks.

Stage 4: If the grievant is still dissatisfied with the disposition of Stage 3, he/she may file an appeal with the competent authorities level by level for arbitration in accordance with the Administrative

Procedure Law of the PRC after receiving the above disposition.

At any stage, an AP may bring a suit in a civil court directly if he/she is dissatisfied with the grievance redress procedure or disposition.

If any AP may also file an appeal with the Office of the Special Facilitator or Compliance Review

Panel of ADB in accordance with ADB’s accountability mechanism.4

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

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All agencies will accept grievances and appeals from the APs for free, and costs so reasonably incurred will be disbursed from the contingencies. At the whole construction stage, the above procedure will remain effective so that the APs can use it to solve relevant issues. The above appeal channel will be disclosed to the APs via the RIB and mass media.

The Huangshi PMO will inspect the registration of appeal and handling information regularly, and will prepare a registration form for this purpose, as shown in Table 10. See also Table 11 and Figure

1.

Table 10Registration Form of Grievances and Appeals

Accepting agency: Time: Location:

Proposed Actual Appellant Appeal Expected solution solution handling

Recorder Appellant (signature) (signature)

Notes: 1. The recorder should record the appeal and request of the appellant factually. 2. The appeal

process should not be interfered with or hindered whatsoever. 3. The proposed solution should be

notified to the appellant within the specified time.

Table 11Contact Information for Grievances and Appeals

Agency Name Address Tel

PMO Shan Chao Guangzhou Road, Huangshi 18986601180

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Liu No.28 Cihu East Road, HUCIC 0714-6261736 Chunchun Huangshi

Huangshi Municipal Urban Meng Kai No.700 Huangshi Avenue 0714-6225898 Administration Bureau

Xisaishan District Environmental Wu No.533 Yiyang Road, Xisaishan 0714-6210393 Sanitation Bureau MInsheng District

Xialu District Environmental No.4 Shenniu Road, Xialu Wang Qiong 0714-5317293 Sanitation Bureau District

Tieshan District Environmental No.19 Shenghongqing Road, Fan Jie 0714-5421368 Sanitation Bureau Tieshan District

Urban construction and No.189 Jinshan Avenue, maintenance company of Liu Zijin 0714-6357619 development zone development zone

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Figure 1 Community-based Grievance Redress Mechanism

6. 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. See Error! Reference source not found..

Table 12Resettlement Implementation Schedule

No. Resettlement Task Agency responsible Time Remarks

1 Information disclosure

RIB PMO, Resettlement 1.1 Project area Jun. 2017 Department

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Disclosure of the RP on PMO, Resettlement 1.2 Jun. 2017 ADB’s website Department

2 RP and budget

RP and budget approval HMG, Huangshi 233.8053 2.1 (compensation rates) PMO, Resettlement Jun. 2017 million yuan Department

3 LA announcement

LA announcement Xisaishan and 3.1 HMG, PMO Jul. 2017 Xialu Districts

4 Compensation agreement

LA and HD compensation Xisaishan and Resettlement 4.1 Jun. – Sep. 2017 agreements Xialu Districts Department

5 HD

Selection of resettlement 5.1 81 AHs HMG, AHs Jun. – Aug. 2017 mode

HD Aug. – Sep. 5.2 81 AHs AHs 2017

Purchase of resettlement / HUCIC Aug. – Oct. 2017 house

6 Implementation of restoration measures

Compensation for crops Xisaishan and Jun. 2017 – Jul. 6.1 Huangshi PMO and attachments Xialu Districts 2017

Implementation of Xisaishan and Jun. 2017 – Jun. 6.2 Huangshi PMO restoration programs Xialu Districts 2019

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Implementation of training Xisaishan and Labor and social Jun. 2017 – Jun. 6.3 program Xialu Districts security bureau 2019

Vulnerable households Xisaishan and Jun. 2017 – Jun. 6.4 Civil affairs bureau Xialu Districts 2019

Identifying and hiring PMO, labor and households for Xisaishan and Jun. 2017 – Dec. 6.5 social security employment under the Xialu Districts 2019 bureau, contractor Project

Assisting APs in Xisaishan and From now to 6.6 reemployment, including PMO, contractor Xialu Districts Jun. 2019 offering skills training

7 Capacity building

Training of Huangshi PMO Complete 7.1 15 men-times PMO Oct. 2016 staff d

Training of sub-district and PMO, Resettlement 7.2 50 men-times Mar. – Jun. 2017 community officials Department

8 M&E

Baseline survey Xisaishan,

Xialu and 8.1 External M&E agency Mar. 2017 Huangshigang

Districts

Establishing an internal PMO, Resettlement 8.2 As per the RP Mar. 2017 monitoring mechanism Department

Appointing an external 8.3 One PMO Mar. 2017 M&E agency

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Internal monitoring PMO, Resettlement 8.4 Quarterly From Mar. 2017 reporting Department

External monitoring Aug. 2017 1st report 8.5 Semiannual External M&E agency reporting Dec. 2017 2nd report

External evaluation Jun. 2018 3rd report 8.6 Semiannual External M&E agency reporting Dec. 2018 4th report

8.7 Completion report Annual External M&E agency Jun. 2019 5th report

Post-evaluation report Post-evaluation PMO, Resettlement 8.8 Dec. 2020 report Department

Public consultation Resettlement 9 Ongoing Department

Grievance redress Resettlement 10 Ongoing Department

11 Disbursement of compensation fees

11.1 - Disbursement to the IA Funds HMG Jun. 2017

- Disbursement to Resettlement 11.2 Funds Jun. 2017 communities Department

- Disbursement to AHs Resettlement 11.3 Funds End of Jul. 2017 Department

12 Commencement of civil construction

Downstream Wetland Breaking

12.1 Construction ground on PMO Oct. 2017

schedule

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Sewer Network Breaking

12.2 Construction ground on PMO Oct. 2017

schedule

Lake Ecology Breaking

12.3 Rehabilitation (Phase 2) ground on PMO Oct. 2017

schedule

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Appendix 2: TORs for External M&E

1. Background

In order to promote Huangshi City’s environmental improvement and urban development, HMG has applied for a loan with ADB for integrated water pollution control. The Project formerly consisted of

Wastewater Collection and Treatment, Inland Lake Ecological Rehabilitation and River-lake

Connection, Sludge Treatment and Disposal, Solid Waste Management, and Capacity Building and

Institutional Strengthening. Due to policy changes, etc., River-lake Connection cannot be implemented, and the Project has been adjusted. HMG is the executing agency of the Project, and

HUCIC is the IA.

After the adjustment, the Project consists of: 1) Downstream Wetland Construction; 2) Sewer

Network Construction; 3) Lake Ecology Rehabilitation (Phase 2); 4) Waste Transfer Station

Equipment Upgrading and Vehicle Purchase; 5) Emergency Drainage Equipment.

HMG has prepared the RP of the Project, which will be updated based on the final detailed design,

DMS, socioeconomic survey, and ongoing and extensive consultation with the AHs.

The RP specifies: 1) the scope of losses; 2) the policy framework for compensation and resettlement; 3) the organizational framework for participation and implementation; and 4) the monitoring responsibility for implementation. HMG will implement LA and resettlement activities according to the updated RP.

HMG agrees to appoint an experienced external M&E agency to conduct external M&E on RP implementation.

2. Purpose of external M&E

The overall objective of external M&E is to monitor the implementation of the RP, resettlement impacts, and effectiveness of livelihood restoration by means of field investigation, questionnaire survey and FGD.

Specifically, the external M&E agency should monitor and report the effectiveness of resettlement 99

measures, including construction and compensation, to ensure that the living standard of the affected population is at least restored to the pre-project level, and that they are aware of resettlement programs and grievance redress procedures, participate in decision-making on resettlement, and share development opportunities arising from resettlement.

3. External M&E agency and staff

The PMO will appoint an experienced independent agency. Its project leader should have a senior title and at least 10 years of experience in resettlement M&E in similar projects. Its team members should meet the following requirements:

1) Being familiar with ADB’s policy on involuntary resettlement, and applicable state and local regulations and policies

2) Having at least two years of experience in resettlement M&E in similar projects, and being good at independent social assessment and public consultation.

4. Tasks of external M&E

The external M&E agency should conduct M&E on the following:

1) LA compensation a) If the LA compensation rates comply with the applicable state laws; b) If the distribution of LA compensation ensures that the AHs receive due compensation; c) If and how LA quantities, compensation rates and amounts are disclosed in the affected villages/communities; d) If a feasible plan has been developed for LA compensation; e) If LA compensation is used in consultation with the APs and how the use plan is developed; f) How benefits from LA compensation are distributed and how to protect practical economic interests of the APs

2) Resettlement of displaced persons

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a) If houses and ground attachments are compensated for at full replacement cost; b) If compensation is paid timely and fully; c) Construction and allocation of resettlement housing; d) If transition and moving subsidies are paid; and e) If lost properties are fully compensated for.

3) Resettlement of affected entities a) If the resettlement schedule is rational; b) If they receive full compensation; c) If their employees are reemployed; d) If their production is resumed; e) If they pass on their losses to their employees

4) Operation and capacity of resettlement agencies a) If their staff is sufficient for resettlement; b) Do they have necessary working conditions; c) If their capacity is sufficient for resettlement; d) Training of resettlement staff; e) Internal management information systems

5) Resettlement of vulnerable groups a) If vulnerable groups are entitled to preferential policies during resettlement; b) If affected urban vulnerable households can afford new houses and if their living standard is improved; and c) If vulnerable groups, especially women, can receive jobs related to the Project, and how many vulnerable persons are employed during construction. 101

6) Baseline survey

Before the beginning of resettlement, the external M&E agency should collect basic information on the AHs through a structured questionnaire survey with a sampling rate of 10-20% at the preparation stage.

The baseline survey should cover the following: population, production conditions, house size, annual income and expenditure, employment structure, traffic conditions, water and power supply, living environment, etc.

7) Effectiveness of resettlement

After the completion of resettlement, the external M&E agency should continue to monitor the effectiveness of resettlement in a manner similar to that of the baseline survey.

The external M&E agency should establish a database for the sample households in the baseline survey as a basis for future tracking. If any sample household is unavailable, it should be replaced by a similar household in the same community.

The scope of any follow-up survey should be consistent with that of the baseline survey for the convenience of comparative analysis. In addition, subjective comments on resettlement should be collected from the APs as a reference for resettlement evaluation.

8) Disbursement and use of resettlement funds

The external M&E agency should make sure that resettlement management and implementation agencies are financially compliant, and compensation fees and subsidies are disbursed on schedule.

9) Policy guidance and consultation

The external M&E agency should direct resettlement management and implementation agencies to make decisions on resettlement, develop scientific, fair and operable resettlement policies, and assist them in conducting publicity on resettlement policies.

10) Coordination

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The external M&E agency should coordinate the work among resettlement agencies, thereby promoting orderly resettlement implementation.

11) File management

The external M&E agency should manage data, information and files during resettlement M&E properly.

5. Methods of external M&E

1) Door-to-door survey: On the basis of the detailed survey, the external M&E agency will establish a database for the AHs, and take full advantage of the information from the socioeconomic survey and the management information system of the PMO to conduct dynamic information management. It will conduct surveys on the AHs to learn resettlement progress, collect grievances and suggestions, and notify them of policy requirements and project information.

2) FGD: The external M&E agency will hold FGDs irregularly at the densely populated resettlement site to collect comments on the Project and resettlement. Such FGDs may be formal or informal as the case may be.

3) Field investigation: The external M&E agency will visit the resettlement site regularly and irregularly.

4) Case study: The M&E staff will pay attention to special cases during resettlement, analyze causes, find solutions and give suggestions.

5) Questionnaire survey: The external M&E agency will conduct a sampling survey on production and livelihood restoration to improve the resettlement work of the next stage.

6. Reporting

The external M&E agency will prepare and submit external M&E reports based on collected information in order to present resettlement progress and existing issues objectively, and evaluate the effectiveness of resettlement for future improvement.

The reporting schedule is as follows:

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1) Submitting a baseline survey report to ADB and the owner before the beginning of resettlement;

2) Submitting a resettlement progress report semiannually during resettlement implementation;

3) Submitting a comprehensive resettlement evaluation report annually within two years after the completion of resettlement; and

4) Submitting a post-evaluation report to ADB and the owner after full livelihood restoration

A conventional M&E report should cover at least the following: 1) objectives of M&E; 2) resettlement progress; 3) key findings; 4) key existing issues; and 5) comments and suggestions on resettlement.

The external M&E agency should submit monitoring reports in Chinese and English to the PMO and

ADB.

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Appendix 3: Minutes of Public Participation Meetings

Time December 17, 2016

Venue Tuanchengshan Sub-district Office, Xialu District

Organizer Huangshi PMO

Participants 21 representatives from the Huangshi PMO, Groups 5 and 9 of

Chenbaizhen Community, Ke’ershan Community, and Xisaishan and

Xialu District Construction Bureaus

Topic Appraising affected houses and attachments rationally

Key points and A report has been prepared, and will be submitted to the district

results construction bureaus for decision-making.

Time February 12, 2017

Venue Huangshi PMO

Organizer Huangshi PMO

Participants 21 representatives from the municipal labor and social security bureau,

civil affairs bureau, women’s federation, construction bureau, and land

and resources bureau, and Baita Trading Company

Topic Resettlement programs, and applicable policies and regulations

Key points and Collecting district policies and regulations related to the Project;

results Learning local near-term development plans for production and

livelihood restoration, and supporting policies

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Appendix 4: Identification of Vulnerable Households

The 3 vulnerable groups are:

1) Five-guarantee subjects mainly include old, disabled and underage people that meet the following conditions: a) having no statutory obligator of support, or the statutory obligator of support being incapable of support; b) being unable to work; and c) having no income source. The state offers food, clothing, housing, medical and other assistance to five-guarantee subjects.

2) MLS households are those with per capita monthly income below 360 yuan in Huanggang City, and entitled to a MLS subsidy from the government.

3) The disabled are wholly or partly mentally or physically disabled people.

Table Support for Vulnerable Groups

Entitlement to Entitlement to Vulnerable Identification compensation for compensation for Funding source group land house

Offering monthly Officially Ensuring minimum Government and collective Five-guarantee allowance and identified standard housing subsidies medical benefit

Special skills Ensuring minimum Disbursed from special funds Widows Obvious training standard housing in contingencies if necessary

Widowed, Women-headed Offering childcare Ensuring minimum Disbursed from special funds divorced or households and training funds standard housing in contingencies if necessary separated

The disabled Officially Special Ensuring minimum Disbursed from special funds

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identified allowance standard housing in contingencies if necessary

70 years or Special Ensuring minimum Disbursed from special funds Old people above allowance standard housing in contingencies if necessary

Per capita less Poor Special Ensuring minimum Disbursed from special funds than 2,300 households allowance standard housing in contingencies if necessary yuan

Seriously 1% of fund for Identified Ensuring minimum Disbursed from special funds affected credit or more through DMS standard housing in contingencies if necessary households compensation

Households with With only one Ensuring minimum Disbursed from special funds / crude houses crude house standard housing in contingencies if necessary

Households Losing over Offering priority in Disbursed from special funds suffering serious 50% of training and / in contingencies if necessary losses farmland employment

The Project will affect 4 vulnerable households with 6 persons, including old people living alone,

MLS households and households affected by disability. Except that these vulnerable households will be resettled as planned, the PMO will also offer extra subsidies, employment support, MLS, medical assistance and other assistance measures to help them restore production and living conditions as soon as possible. The identification procedure of vulnerable groups under the Project is as follows:

1) A list of vulnerable persons is prepared through self-application or by the community committee, and relevant evidence provided;

2) The sub-district office reviews the list, and discloses it in the community for not less than 10 days. If there is no objection, the list will be submitted to the Huangshi PMO;

3) The Huangshi PMO reviews the list to finally identify vulnerable groups in the affected

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population.

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Appendix 5: Small-amount Loan Incentive Mechanism of Huangshi

City (Abstract)

1) Expand the scope of borrowers of small-amount secured loan and increase the size of the fund.

In addition to laid-off workers, borrowers of small-amount secured loans shall be expanded to junior college and secondary technical school graduates, ex-servicemen, registered unemployed urban residents, disabled residents, and returned migrant workers who are physically healthy and honest, and with a certain level of startup capacity. An individual may apply for a loan of up to 50,000 yuan, and individuals starting up a business together may apply for a loan of up to 300,000 yuan. The total amount of small-amount secured loans disbursed throughout the city shall be over 80 million yuan per annum.

2) Ease the small-amount secured loan policy for labor-intensive small enterprises. A labor-intensive small enterprise with new recruits in a year reaching 30% of its workforce (15% for one with over a workforce of 100), and covering insurance for them according to law, the amount of the small-amount secured loan shall be fixed rationally, but not more than 2 million yuan, with a term of not more than two years. Small-amount secured loans for eligible labor-intensive small enterprises shall be discounted at 50% of the benchmark loan rate published by the People’s Bank of China.

3) Regulate and simplify the application procedure of small-amount secured loans, and establish a green channel of “small-amount secured loan + credible community building + startup training” services. Borrowers secured by credible communities and passing training may be exempted from counter-guarantee. Active officials of government agencies and public institutions are encouraged to provide credit guarantee to eligible borrowers.

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Appendix 6: Fieldwork Photos

Discussion meeting of resettlement measures (January 2017)

FGD on LA and HD resettlement programs (February 2017)

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Appendix 7: Note on Resettlement for Lake Ecology Rehabilitation

(Phase 2)

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Appendix 8: Reply of the Huangshi Municipal Land and Resources

Bureau on Preliminary Land Examination for Downstream Wetland

Construction

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Appendix 9: Laws, Regulations and Policies Applicable to

Resettlement

1. Applicable Law and Regulations

1.1 Laws, regulations and policies of the PRC

Land Administration Law of the PRC (amended on August 28, 2004)

Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration

(SC [2004] No.28)

Regulations on House Acquisition on State-owned Land and Compensation (Decree No.590 of the

State Council)

Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (November

3, 2004)

Urban Real Estate Administration Law of the PRC, effective from January 1, 1995

Guidelines on the Appraisal of Demolished Urban Houses, effective from January 1, 2004

Real Right Law of the PRC, effective from October 1, 2007

Regulations of the PRC on the Disclosure of Government Information, effective from May 1, 2008

1.2 Provincial regulations and policies

Measures of Hubei Province for the Implementation of the Land Administration Law of the PRC

(December 27, 2013)

Measures of Hubei Province for the Acquisition of Houses on State-owned Land and Compensation

(Decree No.380 of the Hubei Provincial Government, July 22, 2015)

Uniform AAOV Rates and Location-based Composite Land Prices for Land Acquisition of Hubei

Province (HPG [2014] No.12)

1.3 Municipal regulations and policies

Letter of the Hubei Provincial Land and Resources Department on LA Compensation Multiples, 114

Correction Factors and Young Crop Compensation Rates for Huangshi City (HPLRD [2009]

No.1643)

2. Key Provisions of PRC Laws, Regulations and Policies

2.1 Abstract of applicable state laws and regulations

1) Provisions on land ownership and use right

The People's Republic of China resorts to a socialist public ownership i.e. an ownership by the whole people and ownerships by collectives, 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)

2) Provisions on LA compensation rates

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)

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

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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 LA information disclosure

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)

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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)

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)

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 equipments 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 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)

4) Regulations on house demolition and housing land management

The displacer shall develop a demolition program, obtain a demolition permit, and compensate each displaced household according to law. If no compensation and resettlement agreement can be reached between the displacer and a displaced household, either party may apply for ruling by the local administrative authority for house demolition. (Articles 6, 12 and 15 of the Measures of Hubei

Province for the Acquisition of Houses on State-owned Land and Compensation)

House demolition may be subject to either cash compensation or property swap. The amount of compensation shall be fixed through market appraisal based on position, purpose, building area, etc.

(Articles 23 and 24 of the Measures of Hubei Province for the Acquisition of Houses on State-owned

Land and Compensation)

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3. ADB’s policies

3.1 ADB’s policy on involuntary resettlement

The objectives and principles of ADB’s involuntary resettlement policy are:

Involuntary resettlement should be avoided where feasible.

Where population displacement is unavoidable, it should be minimized by exploring all viable project options. People unavoidably displaced should be compensated and assisted, so that their economic and social future would be generally as favorable as it would have been in the absence of the project.

People affected should be informed fully and consulted on resettlement and compensation options.

Existing social and cultural institutions of resettlers and their hosts should be supported and used to the greatest extent possible, and resettlers should be integrated economically and socially into host communities.

The absence of a formal legal title to land by some affected groups should not be a bar to compensation; particular attention should be paid to households headed by women and other vulnerable groups, such as indigenous peoples and ethnic minorities, and appropriate assistance provided to help them improve their status.

As far as possible, involuntary resettlement should be conceived and executed as a part of the project.

The full costs of resettlement and compensation should be included in the presentation of project costs and benefits. Costs of resettlement and compensation may be considered for inclusion in

Bank loan financing for the project.

In order to realize the above objectives, the practical measures required by ADB include:

Take all steps to minimize or eliminate involuntary resettlement where feasible by exploring viable alternative design options.

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Define the parameters of likely resettlement at the ISA stage, and include appropriate TORs in the

PPTA Feasibility Study.

Conceptualize and implement resettlement measures as development programs, to be part of all projects, including sector, private sector and co-financed projects, and loans to development finance institutions.

Complete socioeconomic surveys and census of people affected early in the project preparation to identify all losses from land acquisition and all affected persons, and to avoid an influx of outsiders or speculators.

Involve all stakeholders in a consultative process, especially all affected persons, including vulnerable groups.

Compensate all affected persons, including those without title to land, for all their losses at replacement rates.

Where relocation of housing is required, develop relocation options in consultation with affected persons and host communities, in order to restore living standards.

Where people will lose income and livelihoods, establish appropriate income restoration programs with objectives to improve, or at least restore, their productive base.

Provide a social preparation process for people affected when they are vulnerable, or when there is social tension associated with displacement.

3.2 ADB’s social safeguard strategy

ADB has proposed a social safeguard strategy for resettlement, which includes the following:

Labor market policies and programs, designed to improve working conditions and promote labor market flexibility;

Social insurance programs, designed to reduce unemployment, illness, labor loss, injury and oldness risks;

Social security and pension systems, designed to ensure that as many single mothers, homeless, physically or mentally disabled persons as possible are covered by living security, including 119

expanded security, agricultural insurance and social assistance;

Protecting children to ensure that they grow healthily;

Minimizing the number of industrial and commercial workers affected by the project

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Appendix 10: Interview Minutes

Time March 7, 2017

Venue Jianlouxia Community

Interviewee Director Wang

Participants Task force

Topics Land nature, residents, impacts, support for the Project, social security, training, etc.

Key points Q: When was your community converted? Has all land been converted into

and results state-owned land?

A: Our community was converted from a village in 2001. All people are now urban

residents, and all land is state-owned land. Our community has 17 groups.

Q: How many people are affected by the Project? Do they support the Project?

A: Groups 5 and 6 of our community are affected by the Project, where Group 5 has 56

households with 220 persons and Group 6 has 72 households with 280 persons. 13

households are affected by HD. Most APs support the Project, and 11 out of the AHs

entered into agreements in February and March.

Q: What about social security? Is there any endowment or other insurance?

A: The district government and the community committee will cover endowment

insurance for LEFs in a unified manner, namely 236 yuan/month from the district

government and 200 yuan/month from the community, totaling 436 yuan/month.

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Q: What’s the average income of residents? How will they be employed? Have they

been trained?

A: Community residents’ average income is about 1,300 yuan/month, and most of them

work outside at plants. Since their agricultural income is low, LA for the Project has little

impact on their income. The community committee offers employment training to them.

Time March 10, 2017

Venue Baita Trading Company

Interviewee Director Zhang and other APs

Participants Task force

Topics Restructuring, farmland, income, LA and HD compensation, satisfaction with

resettlement

Key points Q: When was your community converted? Has all land been converted into and results state-owned land?

A: Our village, also known as Baita Trading Company, and formerly called Lijiafang

Village, has 7 groups. With the successive acquisition of land, villagers have been

converted into urban residents gradually, with only 66 old people (all over 70 years old)

being farmers now. These farmers receive 1,200-1,300 yuan/month from the company

each, and 80% of their medical expenses are reimbursed by the company. All land of

the company has been converted into state-owned land.

Q: How much fishpond do you have? How is your company affected by the Project?

A: Our company has a fishpond area of about 300 mu, and another fishpond area of

300-400 mu in dispute with Nanhu Xiang. The LA compensation for the fishpond will

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belong to us.

Q: How much fishpond is contracted? How well is it run? If the fishpond is occupied for the Project, can any other fishpond be rented?

A: Our company has a fishpond area of about 300 mu, in which 230 mu has been contracted to Zhang Gaosheng since 2004 for a term of 15 years at 70,000 yuan per annum (5-6 workers hired, paid 3,000 yuan/month each), with annual net income of

200,000-300,000 yuan, and 70 mu contracted to Zhang Haiyuan since 2005 for a term of 15 years (2-3 workers hired, paid 2,000-3,000 yuan each). Without LA for the Project, the contracted fishpond will be withdrawn by Baita Trading Company in 2018 and 2019 respectively. Fishponds can be rented in Huangjinshan Development Zone.

Q: Who are the beneficiaries of the LA compensation? How will demolished houses be compensated for?

A: The beneficiaries of the LA compensation are the 66 old people, but its use is supervised by the Administrative Office of Huangjinshan Forest Park – the authority in charge of Baita Trading Company. The 25 households affected by HD will be subject to cash compensation at the benchmark rate of 4,080 yuan/m2.

Q: Do local residents support the Project? Do they have any doubt?

A: From December 2016 to January 2017, the appraisal agency appraised the houses to be demolished. Local residents think that these houses should be compensated for as residential houses at 4,080 yuan/m2, but they are treated as attachments in the appraisal report and will be compensated for at 900 yuan/m2. Local residents complain about this strongly, because prices of nearby commercial housing are around 6,000 yuan/m2. More importantly, the compensation rate of Xisaishan District is lower than

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that of Xialu District, while local residents expect that the compensation rate is at least

the same as that of Xialu District.

Time March 8, 2017

Venue Ke’ershan Community

Organizer Xialu District Construction Bureau

Participants Ke’ershan Community Committee, task force

Topics Economic and social development, LA and HD impacts, compensation payment

1) Ke’ershan Community was converted from a village in 2002, and has a land area of 3

km2, 19 groups, and 4,500 households with 10,535 persons.

2) The community has 1,400 mu of land, including 200 mu of cultivated land, 400 mu of

housing land, 200 mu of fishpond and 600 mu of woodland. Groups 5 and 7 will be

affected by LA, but LA area is still unknown.

Key points 3) Villagers support the Project. and results 4) LA compensation will be disbursed to the affected groups for unified management

and payment.

5) 11 households with 42 persons in Groups 5 and 7 will be affected, including two MLS

households. They will receive cash compensation at the benchmark rate of 4,080

yuan/m2 without property swap. The compensation rate for the MLS households is

higher than the benchmark rate, but is still unknown.

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Time March 8, 2017

Venue Chenbaizhen Community

Participants Huangshi PMO, task force, Chenbaizhen Community

Topics LA and HD progress, grievance redress, etc.

1. Groups 1 and 9 of Chenbaizhen Community have 150 mu of land in total, including

fishponds of 100 mu (3 big and one small), and over 50 mu of cultivated land. The

fishponds have been contracted, used to raise crayfishes. Only one contractor has

Key points entered into a contract for 60~70 mu at several thousand yuan per annum. There is and results limited cultivated land, used to grow vegetables and seedlings, mostly for

self-consumption, and agricultural income is low. After LA for the Project, Groups 1 and

9 will have almost no remaining land.

Residents can work locally, where wages of unskilled jobs are about 2,000 yuan/month.

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Appendix 11: Summary of HD Compensation Fees in Xisaishan

District

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Appendix 12: Summary of HD Compensation Fees in Xialu District

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