Shandong Groundwater Protection Project – Internal Social Monitoring Report (January–June 2020)

Social Monitoring Report

Project Number: 47047-002 November 2020

PRC: Shandong Groundwater Protection Project – Internal Social Monitoring Report (January–June 2020)

Prepared by Shandong Provincial Project Management Office for the Asian Development Bank.

This social monitoring report 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.

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.

Internal Social Monitoring Report (No.6)

Project Number: 47047-002 Loan Number: 3400

The People's Republic of China: Shandong Groundwater Protection Project

Prepared by the Shandong Project Management Office November 2020

1 BACKGROUND AND REVIEW 1. This report is prepared based on resettlement progress as of June 2020. Shandong Province Project Management Office (Shandong PPMO), on behalf of SPG (Shandong Province Government), submits this report.

1.1. PROJECT PROFILE 2. The loan for the Shandong Groundwater Protection Project will contribute to ensuring sustained groundwater supply for the agricultural sector in the Weifang-Zibo area. The project will serve as a demonstration of an integrated approach for environmental restoration of overexploited groundwater aquifers through improving allocation of water resources, retention of storm water, and rehabilitating the water environment. The project will protect groundwater quantity and quality in the area, safeguard a sustainable groundwater source for the agricultural sector, and contribute to improving food security in the PRC. 3. The project has three outputs: (i) groundwater recharged and conserved, (ii) surface water allocation improved and monitored, and (iii) capacity development for water resources management enhanced. Demonstration activities will be implemented in Changle and Huantai counties, and Gaomi, Qingzhou, and Shouguang cities in Weifang and Zibo, which are representative for critical water-scarce conditions in intensive agricultural production bases in the Weifang–Zibo area.

1.2. RESETTLEMENT PLANS AND UPDATING 4. During the PPTA Stage, 5 RPs were prepared and approved by ADB for 5 subprojects involved in land acquisition and resettlement. During the project design stage, resettlement impacts of these four subprojects were varied and updated, including in Qingzhou, Shouguang, Huantai and Gaomi. Therefore, the RPs for these subprojects have been updated and submitted to ADB and were approved by ADB on 15 Dec 2016. The summarized LAR impacts in Original and Updated RPs are presented in the table1 below. 5. These four updated RPs have been disclosed to APs and uploaded on ADB’s website after approval.

1 TABLE1: PROJECT COMPONENTS & BASIC SITUATION OF RESETTLEMENT Subproject Name Reports Affected village Permanent Temporary Residential Affected Affected Estimated Budget Remarks number from land acquisition land use (mu) House Household People （ten thousand 2 permanent （mu） Demolition(m ) Yuan） land acquisition Changle Nanzhai Original RP 9 1026.71 674.87 44923.7 446 1697 17393.03 No change Reservoir Updated RP 9 1026.71 674.87 44923.7 446 1697 17393.03 and not Expansion Project need to be Difference 0 0 0 0 0 0 0 updated Shouguang Original RP 1 379.73 2754 0 598 2093 4680.62 Wetland and River Updated RP 1 379.73 2480.94 0 0 0 4757.648 Ecology Difference 0 0 -273.06 0 -598 -2093 77.028 Improvement Project Gaomi Reservoir Original RP 0 0 2730.18 0 741 2593 2137.15 The updated Updating and 1 Updated RP 0 0 2846.19 0 1265 No data 2400.26 RPs had Connection Difference 0 0 116.01 0 524 N/A 263.11 been Project submitted to Qingzhou Surface Original RP 0 0 1258.8 0 1200 4080 854.68 ADB and Water Allocation 2 Updated RP 0 0 1161.27 0 1759 No data 999.53 approved by and Improvement ADB on 15 Project Difference 0 0 -97.53 0 559 N/A 144.85 Dec, 2016 Huantai Wetland Original RP 0 0 2004 0 4551 15246 4210.64 Improvement and Surface Water Updated RP 0 0 1527.93 0 3473 No data3 3417.79 Allocation and Difference 0 0 -476.07 0 -1078 N/A -792.85 Improvement Project Original RP 10 1406.44 9421.85 44923.7 7536 25709 29276.12 Total Updated RP 10 1406.44 8691.2 44923.7 6943 No data 28968.26 Difference 0 0 -730.65 0 -593 N/A -307.862

2 1.3. New Project Component (NPC) 6. Based on the project implementation status and potential loan savings, 3 local PMOs in Qingzhou, Shouguang and Huantai have proposed new components to be financed by the remaining ADB loan during mid-term adjustment, in order to strengthen the achievements of the project outputs and outcomes. As the resettlement work in Qingzhou City has been completed before ADB’s mid-term review mission, a due diligence report has been prepared by Qingzhou PMO, with assistance of resettlement consultants. A resettlement plan (RP) prepared by PPMO with assistance of consultants has been approved by ADB in Feb 2020. A poverty, gender and social assessment (PGSA) report for NPCs also has been cleared. 7. The NPCs’ impacts include that :(i) 166.21mu farmland and 19.7 mu farmland will be temporarily used for one year in Huantai and Shouguang, affecting 193 and 40 households, respectively; (ii) some of ground attachments will be affected during temporary land sue in these two project counties, such as trees, graves, breeding houses, simple houses; (iii) totally 441.34 mu collective land of 418 affected households will be affected by temporary land use in Qingzhou. No permanent land acquisition (LA) and residential house demolition (HD) will be affected by NPCs. The land impacts of NPCs are presented in the table 2 below.

TABLE2: NEW PROJECT COMPONENTS & BASIC SITUATION OF RESETTLEMENT Affected village Estimated Permanent number Temporary Residential Budget Subproject land Affected Affected from land use House （ten Name acquisition Household People permanent (mu) Demolition(m2) thousand （mu） land Yuan） acquisition Qingzhou Expansion of Heihushan reservoir 0 0 441.34 0 418 1568 2220.568 store capacity subproject. Shouguang. Judian lake water 0 0 19.7 0 40 676 11.13 diversion works Huantai Mata lake water 0 0 166.21 0 193 170 303.39 canals subproject Total 0 0 627.25 0 651 2414 2535.088

1.4. EXTERNAL agency for external resettlement monitoring and evaluation (M&E)

8. An external monitor has been recruited by the PPMO from September 2015.The external monitor submitted the first external monitoring report including the baseline

3 study for Changle subproject in October 2016. An updated version of the 2nd external monitoring report including the baseline study for Gaomi, Qingzhou and Huantai subprojects was submitted in October2017. The 3rd external monitoring report including the baseline survey study for Shouguang subproject was submitted in February 2018. The 4th external resettlement monitoring and evaluation report, with satisfactory qualities of contents and language, has been submitted to ADB by 31 October 2018. The fifth external M&E has been submitted to ADB by Oct 2019.

1.5. CAPACITY BUILDING OF RESETTLEMENT ORGANIZATION 9. Shandong PPMO and 5 IAs involved in land acquisition and resettlement assigned the full staff to take charge with the resettlement activities and established the internal monitoring mechanism. The resettlement institutions involved in the project are well staffed: 2 staff at the PPMO and 58 staff under the PIOs and local implementation agencies. 10. As of June 2020, two rounds of training on the requirements of resettlement implementation and monitoring/reporting of ADB financed project have been carried out for relevant staff by PMO, with the assistance of the individual resettlement consultant. 11. In order to strengthen the capacity of IAs and their staffs, the Resettlement Specialist has conducted the resettlement training in March 2017. The training contents include involuntary resettlement policies of ADB, the requirements of resettlement monitoring and evaluation of ADB and the issues during the resettlement implementation as well. 12. Besides, each IA has publicized the hot line for APs’ appeal and complains. By June 2020, the owners and external monitor haven’t received any grievances and complaints related to land use and compensation.

TABLE 2, STAFF RESPONSIBLE FOR RESETTLEMENT & HOTLINES OF EACH SUB- PROJECT

Name of Counties Name of principal Telephone Hot line for complaining Sandong PPMO Chi Zhixue 18253166111 18253166111 Qingzhou Diao Youpeng 13386361516 0536-3222362 Shouguang Hu Zhimin 18253611686 18253611686 Changle Mao Fuli 13853665508 0536-6733522 Huantai Wen Jian 18954442633 8212005 Wang Gaomi 13884822889 15726060192 Yuanwu External monitoring agency Liu Yuanbin 15666967789 15666967789

4 2 RESETTLEMENT PROGRESS AND MONITORING

2.1 Land Use Approval 13. Within the 5 counties involving in land acquisition, 3 counties are only related to temporary land use, including Gaomi, Qingzhou and Huantai. In Shouguang, the permanent land occupation about 397.73 mu has been leased by PIO for wetland rehabilitation though land use rights transfer (LURT) on basis of voluntary and equal negotiation with one village committee affected, instead of land acquisition in the updated RP. See details of DMS, starting dates of LAR, expected completing date, and civil works commencement dates in Table 3.

Table3: Project Land Use and Resettlement

No Resettleme Land Resettleme Expected Civil works subproject approval/ nt starting Completin commenceme remark . nt DMS licence date g date nt Only June. complete 1 Qingzhou Nov, 2016 temporar Nov. 2016 Feb, 2017 2017 d y land Shouguan Temporar complete 2 g Nov, 2016 y land Aug. 2017 Dec. 2019 April, 2017 d 3 Changle Aug, 2014 Approved Oct. 2015 Dec. 2017 Dec, 2015 Complete d Only 4 Huantai Oct, 2016 temporar July. 2015 Dec, 2019 Dec, 2015 complete d y land Only complete 5 Gaomi Nov, 2016 temporar Dec. 2016 Dec. 2019 Feb, 2016 d y land

2.2 Resettlement Implementation 2.2 Implementation Status of LAR.

14. As of 30 June 2020, all the permanent land acquisition and house demolition（only in Changle）have been completed, all temporary land utilization and compensation in

5 counties have been completed. Permanent Land acquired has been completed which is totalling to 1,026.71mu, accounting to 73% of desired area of 1406.44 mu in RPs. Temporary land occupation is reaching to 8,944.48 mu, standing at 102.91% of 8,691.2 mu desired area in RPs. Ground attachment compensation have been paid with a total amount of CNY89.98 million, accounting to 149.09% of planned amount of CNY 60.35 million. The resettlement compensation has been made with CNY242.80 million, accounting to 83.82% of total amount of CNY288.18 million as estimated in RPs. See details in table 4 as follows.

5 Table 4: Land Requisition, Resettlement & Compensation Funds (as of Jun, 2020)

Ground Permanent Temporar House Resettleme No Land y Land Attachme subproject Items Demolitio nt cost . Acquisition(M Occupatio nt n (㎡) u) n (10KCNY) (10KCNY) Updated 0 1161.27 0 285.43 999.53 RP actually 1 Qingzhou 0 1161.27 0 478.79 1627.97 completed percentag 0 100.00% 0.00% 167.74% 162.87% e Updated 379.73 2480.94 0 399.71 4757.65 RP Shouguan actually 2 0 2480.94 0 1363.58 2361.08 g completed percentag 0 100.00% 0 341.14% 49.63% e Updated 1026.71 674.87 44923.7 3377.83 17393.03 RP actually 3 Changle completed 1026.71 649.88 42892.07 3423.35 15092.76 percentag 100.00% 96.30% 95.48% 101.35% 86.77% e Updated 0 1527.93 0 1527.32 3417.79 RP actually 4 Huantai 0 1883.87 0 2808.4 3276.86 completed percentag 0 123.30% 0.00% 183.88% 95.88% e Updated 0 2846.19 0 445.57 2400.26 RP actually 5 Gaomi 0 2768.52 0 924.74 1921.41 completed percentag 0.00% 97.27% 0.00% 207.54% 80.05% e Updated 1406.44 8691.2 44923.7 6035.86 28968.26 RP actually 6 total 1026.71 8944.48 42892.07 8998.86 24280.08 completed percentag 73.00% 102.91% 95.48% 149.09% 83.82% e

15. All actual compensation rates for permanent land acquisition, temporary land occupation and ground attachment are same with or higher than the compensation standards in updated RPs. In addition, the compensation standards of ground attachments for Huantai Subproject have increased to some extent from 1 Jan 2018 (see details in the No.5 external monitoring report). The counterpart funds are well prepared for LAR compensation and the compensation have been paid to affected villages and HHs in a timely manner. By June 30 2020, no complaint has been received and APs are satisfied with the compensation and resettlement policy. 16. For NPCs, the temporary land use and compensation in Shouguang and Huantai will start when required by construction. The temporary land use and compensation in Qingzhou have completed before midterm adjustment, see details in the due diligence report in the RP approved by ADB in Feb 2020.

6 2.3 IMPLEMENTATION STATUS OF LIVING RESTORATION MEASURES

17. The RPs included provisions of income restoration measures for APs, such as skills training and priority employment during project construction and operation. The RPs also included measures for vulnerable groups. 18. In Changle County, the land acquisition of 1,026.71 mu and house demolition of 44,923.7 m2 have been completed in 2018. Out of the 310 households affected by house demolition, 185 HHs selected the property exchange mode and have be moved in a new resettlement community, meanwhile the rest opted full cash compensation mode. 19. In Shouguang County, land occupation of collective unused and un-contracted land with an area of about 397.73 mu has been leased by PIO for wetland rehabilitation though land use right transfer (LURT) on basis of voluntary and equal negotiation with one village committee affected, instead of the manner of land acquisition in updated RP. The land rentals in 2019 and 2020 have been paid to the village committee in a timely and full manner. 20. In all counties, the civil works involve temporary land utilization and compensation for affected young crops and ground attachments have paid the compensation fees fully and timely to the affected people before the construction commencement for the rest constructions of the subprojects.

7 3. SOCIAL DEVELOPMENT AND GENDER

3.1 Social development 21. The SGAP has focused on issues related to directly affected people, vulnerable people, gender, and local social development. By June 30 2020, this project has engaged 1,921 employee and conduced training to every employee. For public awareness activities and campaigns on water saving technology, irrigation water quota, water rights trading, ascending water pricing, etc., PPMO and CPMOs have organized relevant activities with 4 times for all subprojects. 22. In Huantai subproject, twice public hearings on water tariff, water rights trading, and ascending water pricing have been conducted; there were also 10 times relevant training, meetings, consultations, case studies, workshops and seminars conducted by the Shandong Province PMO on ADB project management procedures, technical design and project implementation, public awareness raising, and consultation capacity enhancement.

3.2 Gender 23. The project is classified as “some gender elements”. The Shandong Province PMO and the participating local governments have taken following actions to enhance project benefits for women, and the main achievements include: (i) contractors hire women for project implementation with 32% of newly created jobs; (ii) hire women for facilities’ maintenance and operation with 31% of newly created positions in reservoirs, river courses, open canals, etc.; (iii) conduct workshops and seminars on capacity development and public awareness enhancement and rotation show cases by five subprojects with 35% of female participants; and (iv) hold public hearings for irrigation water quota, ascending pricing, and trading with 45% of female residents of the Huantai component. 24. For NPCs, there is an updated social and gender action plan in the table 6, in which the implementation status is presented in the last column.

8 TABLE 6: SOCIAL AND GENDER ACTION PLAN Output/ Funding Needs Monitoring Proposed Actions Target Group(s) Agencies Involved Timing Component and Source Indicators Output 1: 1. Employment Priority to Local About 2440 full SPMO, subproject PMOs 2016– Included in project • 1,921 of local (I) People During Project time positions and IAs, contractors, local street 2019 civil works cost and people employed : Implementation during project offices, township governments, paid by contractors 32% women for Output 2: construction village committees labors in civil (I) (II) • Priority to local labor in general. Targets: work;15% poor for ➢ 15% women unskilled labor in • Use of local construction materials, for labors in e.g., rock, gravel, clay, cement civil work;100% civil work workers receive • Training on work safety, health and ➢ 15% poor for relevant training skills to be provided by contractors unskilled labor in civil work ➢ 100% workers receive the training 2. Protect local communities from Residents close to Subproject PMOs, IAs, Included in project • No complaints 2016 construction disturbances and project sites contractors, local governments, – cost (refer to EMP) received 2020 ensure safe construction and residence communities • 100% of public practices facilities recovered • No Accidents on • Prohibit nighttime construction and temporary adhere to proposed noise standards construction • Reconstruct public facility systems roads such as road, poles and • No Accidents on transformers recovery due to water project site pipe installation • Construction safety enhancement, including temporary road traffic (e.g., safe road conditions and proper warning signage) 3. Control and Prevention of the of All project Subproject PMOs, IAs, Awareness training • 1,547 manuals, 2016 HIV/AIDS/STIs construction Contractors, local CDPCs, and – costs for workers posters and 2020 workers local governments are included in drawing contract costs. distributed Targets: • 2,368 people in

9 Output/ Funding Needs Monitoring Proposed Actions Target Group(s) Agencies Involved Timing Component and Source Indicators • Centre for Disease Prevention and ➢ 100% of Local CDPCs costs training sessions Control (CDPC) provides training to worksite health included in and trainees worksite health promoters promoters Department of comprise 32% • Health promoters provide training to ➢ 100% of Health budget women all workers and managers and workers • No HIV/AIDS/STI subcontractors managers and cases reported • HIV/AIDS and STI counseling sub- program and voluntary testing by constructors health agencies for workers ➢ 100% of • Provide manuals, posters and communities drawings and villages near the project sites ➢ 100% of workplaces and project sites 4. Employment Priority to Local 200 full time SPMO, subproject PMOs, 2018 Included in project • 145 local people People During Project Operation positions in IAs, HRB, WRB, local street onwards operation cost and employed reservoir, river offices, township paid by operation (disaggregated by course and open governments, village committees units • Priority to local labor sex, skilled/ canals operation in general unskilled and

• Training on work safety, health and poverty status) Targets: skills to be provided by operation • 100% local ➢ 30% women of units workers trained the positions ➢ 15% poor of the positions ➢ 100% workers receive the training

10 Output/ Funding Needs Monitoring Proposed Actions Target Group(s) Agencies Involved Timing Component and Source Indicators 5. Pro- poor program Rural poor Subproject city/county Subproject • 100% of poor affected by the governments, 2016 government budget among the resettlement CAB, HRB, township onwards • Inclusion of rural poor affected by affected villagers Targets: governments, village committees land acquisition and resettlement received special under the minimum living standard ➢ 100% of rural assistance during security program based on careful poor RP assessment of their economic status implementation • Inclusion of the poor and vulnerable households under project benefits • Inclusion of skill and job training for affected poor households for livelihood restoration Output 1: 1. Organize water conservation Subproject areas: SPMO, subproject Local government Participants and 2016 (II) awareness campaigns each year on Targets: PMOs, implementing agencies, – budget activities include: 2020 water law, irrigation water saving ➢ All the people WRS, FWUA, sub-districts, t • 72 communities knowledge, technologies and ➢ All the students village committees, schools • 102 villages sustainable usage. • 130 schools 2. Each year school activities, such as • 4 events class discussion, papers writing, public • 13,360 outreaches, on water law, irrigation participants with water saving knowledge, technologies 45% women and sustainable usage. Output 1: 1.Organize water conservation • Types of means awareness campaigns each year on (III) (TV, radio, irrigation water quota, water right trade, and ascending water pricing newspaper, 2.Each year school activities, such as mobile vehicle broadcasting, class discussion, papers writing, public outreaches, on irrigation water village quota, water right trade, and loudspeaker, ascending water pricing flyers, advertisements, LED messages, movies, etc.) used

11 Output/ Funding Needs Monitoring Proposed Actions Target Group(s) Agencies Involved Timing Component and Source Indicators Output 1: Public Hearings for Huantai Residents in SPMO, Huantai County Before No budget needed • 2 of public (III) Huantai County Government, Huantai PMO 2020 hearings Subproject on : (WRB), IAs, local FB, PB, sub- • 190 of participants Output 2: Target: districts, township • 100 women (III) ➢ At least 15% of governments and village • Agriculture Water Quota representatives committees • Agriculture Water Right Trade from low- • Agriculture Water Ascending Pricing income households ➢ At least 40% female representatives Output 3: 1. Capacity development and training Project SPMO, Subproject PMOs, local 2016– Budgets included in • 10 of workshops (I) (II) of SPG and county staff in ADB implementation governments, implementing 2020 Output 3 Project and seminars, etc. project management procedures, staff agencies Implementation • 328. of technical design and implementation, Target: Supported participants (sex and safeguard supervision and ➢ 30% female disaggregated) monitoring. participants • 159. of female 2. Provide overall project ➢ 1 female staff decision-makers implementation support for the SPG in each PMO and counties staff, including ➢ 1 assigned implementation of land acquisition staff in charge and resettlement. of SGAP and 3. Show cases on local good practices GAP by Subproject Counties/Cities: implementation 2016 Huantai (integrated circuit card) 2017 Shouguang (Smart Greenhouse) and Qingzhou 2018 Changle and Gaomi

12 4. ACTIONS TO BE TAKEN IN NEXT STEPS 25. The Shandong PPMO and the relevant implementing agencies will do the following works: (1) As the project will complete in Dec 2021, it is necessary to accelerate the construction speed of NPCs in Shouguang and Huantai. (2) Prepare and submit the No.6 resettlement external M&E report to ADB by the end of Dec 2020. (3) Pay more attention in social and gender issues in this project, in order to fulfil the targets as required in SGAP.