53050-001: Hunan Xiangxi Rural Environmental Improvement And

Home , Baojing County, Fenghuang County, Guzhang County, Huayuan County, Hunan, Jishou

Resettlement Plan (Draft)

Project Number: 53050-001 August 2020

People’s Republic of China: Hunan Xiangxi Rural Environmental Improvement and Green Development Project

Prepared by the People’s Government of Xiangxi Tujia and Miao Autonomous Prefecture for the Asian Development Bank.

CURRENCY EQUIVALENTS (As of 19 June 2020) Currency unit – yuan (CNY) CNY 1.00 = $0.1411 $1.00 = CNY 7.0892

ABBREVIATIONS ADB Asian Development Bank CNY Chinese Yuan XPG Xiangxi Prefecture Government DDR Due Diligence Report XDRC Xiangxi Development and Reform Commission XEPB Xiangxi Environmental Protection Bureau XFB Xiangxi Finance Bureau XHURDB Xiangxi Housing & Urban-Rural Construction Bureau DI Design Institute XLRB Xiangxi Land Resource Bureau XWRB Xiangxi Water Resource Bureau EA Executing Agency EMDP Ethnic Minority Development Plan FGDs Focus Group Discussions FSR Feasibility Study Report GAP Gender Action Plan HPG Hunan Provincial Government IAs Implementing Agencies IURDPAAB Integrated Urban–Rural Development Pilot Area Administration Bureau IWRM Integrated Water Resources Management LAR Land Acquisition and Resettlement LURT Land Use Right Transfer M&E Monitoring and Evaluation MOU Memorandum of Understanding NPS Non-Point Source PAM Project Administration Manual PLG Project Leading Group PMO Project Management Office PPMS Project Performance Management System PRC People’s Republic of China PSA Poverty and Social Analysis RP Resettlement Plan RRP Report and Recommendation of the President SDAP Social Development Action Plan SPS Safeguard Policy Statement TLU Temporary Land Use TOR Terms of Reference TPA Targeted Poverty Alleviation TrTA Transactional Technical Assistance WTP Willingness-To-Pay WWTP Wastewater Treatment Plants

WEIGHTS AND MEASUREMENTS cm – centimeter g – gram h – hour ha – hectare kg – kilogram kg/d – kilogram per day kg/m3 – kilogram per cubic meter km – kilometer km/h – kilometer per hour kV – kilo–volt kV/m – kilo–volt per meter kw – kilo-watt L – liter L/d – liter per day m – meter m2 – square meter m3 – cubic meter mu – 666.67 square meters

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

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

Asian Development Bank

RPC: Hunan Xiangxi Rural Environmental Improvement and Green Development Project

Resettlement Plan (Draft Final)

The People’s Government of Xiangxi Tujia and Miao Autonomous Prefecture Office of Work Leading Group for ADB Financed Project of Xiangxi Autonomous Prefecture August 2020

Executive Summary

A. Project Overview E1. The proposed Hunan Xiangxi Rural Environmental Improvement and Green Development Project (hereinafter referred as “Project”) consists of three outputs and project implementation support will be implemented in Xiangxi Tujia and Miao Autonomous Prefecture in Hunan Province of the People’s Republic of China (hereinafter referred as “PRC”). E2. The project outcome is the enhanced rural living environment and agricultural and forestry productivity in Xiangxi. The three outputs of the project include (i) rural waste and sanitation management facilities and services improved, (ii) local- featured ecological agricultural and forestry products developed, (iii) values added to local products through value chains and by eco-tourism. Project implementation support will be financed by ADB as well. E3. All the three outputs will involve civil works construction and land use impacts, which can be defined as four categories: (i) existing state-owned land occupation (SLO); (ii) permanent land acquisition (PLA); (iii) land use right transfer (LURT); and (vi) land use for rural public infrastructure (LURPI). In addition, temporary land occupation (TLO) will be required for a few components during the project implementation. E4. Regarding involuntary PLA and TLO induced by the project, this resettlement plan (RP) has been prepared in line with ADB’s Safeguards Policy Statement (SPS 2009) as well as laws and regulations of PRC and local governments. In addition, frameworks for LURT and LURPI have been prepared and attached in appendices of this RP to ensure their proper implementation along the RP. Due diligence reports for completed land acquisition of proposed facilities and existing facilities have been prepared as well. This RP is primarily for the scope of PLA and TLO under the project.

B. Land Use Scope and Impacts E5. The project will require a total land use of 11,634.1 mu, including SLO of 535.1 mu, the PLA of 98.59 mu, the LURT of 9,860 mu, and the LURPI of 1,140.5 mu. In addition, the project will require TLO of 9 mu during construction stage. The involuntary PLA of the project will affect 13 villages (communities) in 10 townships in 5 counties/cities, with 61 households and 261 persons affected, and among them 34 households with 151 persons will be significantly affected (losing more than 10% income). The project does not involve any residential house and structure demolition. Given that the number of significantly affected persons is below 200 persons after the optimization of project design, the project’s involuntary resettlement category is classified as category B. E6. The project will temporarily use rural collective land with a total area of 9 mu, affecting 34 households with 125 persons. Some ground attachments will be involved. E7. Voluntary agreements for LURT and LURPI will be finalized during the implementation in line with the frameworks prepared for respective land use types.

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C. Policy Framework and compensation rates E8. This RP is prepared in accordance with relevant national, Hunan provincial and Xiangxi Prefecture laws and policies on land acquisition and resettlement, as well as the ADB’s requirements on Involuntary Resettlement in its Safeguard Policy Statement (SPS, 2009). The resettlement and livelihood restoration measures aim to at least restore AHs’ livelihoods to the levels before the project, improve income and living levels of vulnerable groups, restore affected infrastructures, and increase employment and income opportunities of affected persons. E9. Cash compensation will be paid to all households affected by permanent land acquisition on basis of latest annual average output value (latest AAOV released in 2018) in project area. Compensation for land acquisition includes land compensation and resettlement subsidy. The specific distribution plan will be discussed and decided by the villager representatives meeting, but the proportion paid to the affected HHs will not be less than 75%. The compensation for young crops and ground attachments will be paid directly to the owners. Cash Compensation will be provided for affected villager groups and households in a fully and timely manner. E10. In terms of LURT and LUPRI, the land rental rates and/or land subsidies will be confirmed on basis of equal and voluntary negotiation between IAs and involved farmer households, following the principles and procedures in LURT and LURPI frameworks, respectively.

D. Livelihood Restoration and Assistance E11. Based on the sampling household survey, the agricultural income of AHs averagely accounts for 45.8% of their total household incomes, while the non- agricultural income accounts for 54.2% in the project area. Among 61 AHs, 34 or 55.7% will loss more than 10% of HH income due to permanent land acquisition. E12. To mitigate the impacts of PLA and restore AHs’ livelihood, detailed livelihood restoration programs have been prepared based on extensive consultations, such as cash compensation, agricultural development measures, employment promotion (supports of employment opportunities, skill training, special care of vulnerable groups, etc.). These measures will help AHs, particularly the severely affected, to restore their income and livelihood levels after LA. E13. In addition, when a farmer household whose per capita cultivated land is less than 0.3 mu after land acquisition voluntarily participates in the basic endowment insurance for urban workers or the endowment insurance for urban and rural residents, the government and rural collective economy organization will provide insurance premium subsidies for these land-expropriated farmers. E14. Priorities and special assistances will be provided to vulnerable groups during livelihood restoration to ensure their living levels can be improved.

E. Public Participation and Grievance Redress Mechanism E15. Several rounds of public participation have been conducted since the RP preparation kicked-off in January 2020, despite the impacts of COVID-19 pandemic. The project scope, rationale, benefits and impacts, as well as applicable compensation policies and draft resettlement plan were consulted with affected communities and villagers publicly via various means. Meetings (including some virtual ones) were held with affected village leaders and farmer representatives about overall socioeconomic background of the project area, and their expectations and concerns were collected and integrated in this RP. Some local resettlement experiences were shared and adopted in RP as well. Household questionnaire survey was carried out with APs to

iv know their livelihood condition, thoughts and expectations about the project and its LAR. A total of 42 AHs and 169 people were sampled and surveyed, accounting for 68.9% and 64.8% of the total households and persons affected by PLA, respectively. Additional visits to local government agencies (including Women’s Federation, Natural Resources Bureau, Human Resources and Social Security Bureau, Agriculture and Rural Affairs Bureau, Poverty Alleviation Office, etc.) were taken for collecting more data and understanding relevant policies, comments and suggestions related to the project. E16. To ensure that APs have effective channels to file complaints on any issue associated with land acquisition and resettlement, a grievance redress mechanism (GRM) has been established during the preparation and described in Section 6.4 of the RP. E17. The GRM has been discussed during the RP preparation and will be further notified to the APs while distributing resettlement information booklet through meeting or otherwise, so that the APs are fully aware of their right of complaint.

F. Institutional Arrangement E18. The resettlement implementation agencies of the project have been established at all levels. Xiangxi PMO is responsible for overall management, coordination and supervision of the project implementation and RP implementation. Project County/City PMOs and IAs are responsible for day-to-day planning, coordination, supervision and reporting of LAR affairs. Project County/City Natural Resources Bureau (NRB) and their subsidiaries (land acquisition offices in towns) are responsible for implementation of the resettlement plan. Project County/City Human Resources and Social Security Bureau (HRSSB) is responsible for APs’ skill training and promoting employment. Local All-China Women’s Federation (ACWF) supports female labors employment and protects their legal rights. All township governments and village committees support local NRB to implementing the RP. In addition, an external monitoring and evaluation (M&E) agency will be recruited by Xiangxi PMO to ensure the whole implementation process of the RP is strictly in line with the domestic and ADB policies related to LAR.

G. Implementation Schedule E19. According to the timeline of the project, the LAR schedules will be linked up with the construction schedules of the components. The main part of LAR of the project will be commenced in September 2021 and end in December 2022. The civil works of the project will be started in December 2021.

H. Land Use Budget E20. Based on the land use of the project and the price in May 2020, the total budget for land use of the project is CNY 93.255 million yuan, including basic costs of land acquisition 6.376 million yuan, subsidy fees for LUPRI 28.659 million yuan, LURT rental fees of LURT 39.993 million yuan, resettlement monitoring and evaluation costs 2.249 million yuan, staff training costs 0.275 million yuan, land acquisition related taxes and fees 7.186 million yuan, contingencies 8.478 million yuan. All the land use budget will be financed by counterpart funds of project counties and city.

I. Monitoring and Evaluation E21. The RP implementation will be subject to internal and external monitoring. The internal supervision and monitoring will be performed by the Xiangxi PMO (with supports from county/city PMOs and local Natural Resources Bureaus, etc.) to ensure

v that resettlement is conducted as planned. The external M&E will be conducted by an external M&E agency to be recruited by Xiangxi PMO. External M&E reports shall be submitted semiannually to the ADB by the external M&E agency directly till a resettlement completion report is submitted to ADB.

Abbreviations

ADB Asian Development Bank AAOV Average Annual Output Value HPG Hunan Provincial Government The Government of Xiangxi Tujia and Miao Autonomous XTMAPG Prefecture DI Design Institute EA Executing Agency FSR Feasibility Study Report HD House Demolition IA Implementing Agency LA Land Acquisition NRB Natural Resources Bureau LAR Land Acquisition and Resettlement M & E Monitoring and Evaluation NDRC National Development and Reform Commission PADO Poverty Alleviation and Development Office PLA Permanent Land Acquisition RP Resettlement Plan RIB Resettlement Information Booklet SES Socio-economic Survey SPS ADB's Safeguard Policy Statement TLO Temporary Land Occupation m2 Square Meter mu Equal to 666.7 square meters km Kilometer

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Definition of Terms

Affected Person or In the context of involuntary resettlement, affected/displaced Displaced persons are those who are physically displaced (relocation, Persons: loss of residential land, or loss of shelter) and/or economically displaced (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. Compensation: Money or payment given to affected persons for property, resources and income losses. Entitlement: According to the losses categories of affected persons, they are entitled to get compensation, income restoration, relocation costs, income subsidies and resettlement to restore socioeconomic conditions. Income Rebuild the affected persons’ source of income and living Restoration: standard. Resettlement: Rebuild houses and properties including productive land and public facilities at another area. Resettlement Material and immaterial property losses due to LAR, including Impact: loss of residential houses, communities, production land, income sources, subsidies, culture centers, social structure, network, culture characteristic and cooperative system. Resettlement Plan: An action plan with timeline and budget, including resettlement strategies, targets, rights, action, responsibilities, monitoring and evaluation. Vulnerable Group: Refers to a special group of people who may be impacted more seriously during the resettlement process.

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Table of Contents

EXECUTIVE SUMMARY ...... III 1. PROJECT OVERVIEW ...... 1

1.1 PROJECT BACKGROUND ...... 1 1.2 PROJECT OUTPUTS AND CONSTRUCTION CONTENTS...... 1 1.3 PREPARATION OF RESETTLEMENT PLAN ...... 3 1.4 MEASURES TO AVOID/MINIMIZE LAND ACQUISITION AND RESETTLEMENT IMPACTS ...... 4 1.5 DDR FOR COMPLETED LAR ACTIVITIES OF PROPOSED OR EXISTING FACILITIES ...... 5 2. PROJECT LAND USE AND IMPACTS ...... 7

2.1 OVERVIEW OF LAND USE TYPES AND IMPACTS...... 7 2.2 DETAILED SCOPE OF LAND USE ...... 11 2.2.1. State-owned Land Occupation (SLO) ...... 11 2.2.2 Permanent Land Acquisition (PLA)...... 13 2.2.3. Land Use Rights Transfer (LURT, Voluntary) ...... 19 2.2.4. Land Use for Rural Public Infrastructure (LURPI, Voluntary) ...... 20 2.2.5. House Demolition (HD) ...... 24 2.2.6. Temporary Land Occupation (TLO)...... 24 2.2.7. Yong Crops and Ground Attachments...... 25 2.3 SUMMARY OF PROJECT LAND USE SCOPE...... 25 2.3.1. Summary of Land Use and Affected Population...... 25 2.3.2. Summary of Affected Vulnerable Groups ...... 27 2.3.3. Summary of Affected Ethnic Minorities ...... 27 3. SOCIOECONOMIC PROFILES OF PROJECT AREA AND AFFECTED POPULATION ...... 29

3.1 SOCIOECONOMIC PROFILES OF AFFECTED AREAS ...... 29 3.1.1 Socioeconomic Profile of Xiangxi Autonomous Prefecture ...... 29 3.1.2 Socioeconomic Profile of Project Counties and Cities ...... 30 3.1.3 Socioeconomic Profile of Affected Towns and Villages ...... 30 3.2 SAMPLING SURVEY ANALYSIS OF AFFECTED HOUSEHOLDS ...... 31 3.2.1 Socio-Economic Conditions of the AHs ...... 31 3.2.2 Expected Resettlement Modes and Measures...... 33 3.3 GENDER ANALYSIS...... 33 4. LEGAL AND POLICY FRAMEWORK ...... 35

4.1 LAWS, REGULATIONS AND POLICIES ON LAND ACQUISITION AND RESETTLEMENT...... 35 4.2 ADB POLICY ON INVOLUNTARY RESETTLEMENT ...... 37 4.3 DIFFERENCES BETWEEN THE ADB’S POLICIES AND DOMESTIC POLICIES AS WELL AS SOLUTIONS ...... 38 4.4 LAR PRINCIPLES FOR THIS PROJECT...... 48 4.5 CUT-OFF DATE OF ELIGIBILITY FOR COMPENSATION AND RESETTLEMENT ...... 48 4.6 COMPENSATION AND SUBSIDY STANDARDS...... 48 4.6.1 Compensation Standards for Permanent Land Acquisition ...... 48 4.6.2 Compensation Standards for Temporary Land Occupation...... 51 4.6.3 Subsidy Standards for Endowment Insurance Premium of Land-expropriated Farmers...... 51 4.6.4 Compensation Standards for Ground Attachments ...... 52 4.6.5 Standards for Taxes and Fees Related to LA ...... 53 4.7 ENTITLEMENT MATRIX...... 53 5. LIVELIHOOD RESTORATION AND ASSISTANCE MEASURES ...... 80

5.1 CASH COMPENSATION TO HOUSEHOLDS SLIGHTLY AFFECTED BY LAND ACQUISITION ...... 80 5.2 INCOME RESTORATION MEASURES FOR HHS SEVERELY AFFECTED BY LAND ACQUISITION ...81 5.2.1 Supportive Measures for Agricultural Development ...... 81

5.2.2 Employment Assistance Measures ...... 80 5.2.3 Skills Training Measures ...... 80 5.2.4 Social Security ...... 81 5.3 RESTORATION PROGRAM FOR TEMPORARY LAND OCCUPATION...... 82 5.4 SUPPORTIVE MEASURES FOR AFFECTED VULNERABLE GROUPS...... 83 5.5 SUPPORTIVE MEASURES FOR WOMEN’S DEVELOPMENT ...... 83 6. INFORMATION DISCLOSURE, PUBLIC PARTICIPATION AND GRIEVANCE REDRESS ...... 84

6.1 METHODS OF INFORMATION DISCLOSURE AND PUBLIC PARTICIPATION ...... 84 6.2 PUBLIC PARTICIPATION AND CONSULTATION DURING PREPARATION STAGE ...... 85 6.3 PUBLIC PARTICIPATION AND CONSULTATION ACTIVITIES IN NEXT STAGES ...... 80 6.4 WOMEN'S PARTICIPATION ...... 81 6.5 GRIEVANCE REDRESS MECHANISM...... 82 6.5.1 Grievance Redress Procedures during RP implementation ...... 82 6.5.2 Agencies and Personnel for Resolution of Grievance...... 83 7. ORGANIZATIONS AND RESPONSIBILITIES ...... 85

7.1 ORGANIZATION STRUCTURE...... 85 7.2 INSTITUTIONAL RESPONSIBILITIES ...... 86 7.3 RESETTLEMENT AGENCY STAFFING AND FACILITIES...... 89 7.3.1 Equipment and Facilities...... 90 7.3.2 Training Program for Resettlement Implementation Agency and Staff ...... 90 8. BUDGET ...... 92

8.1 LAND USE BUDGET ...... 92 8.2 FUNDS SOURCE AND USING PLAN ...... 98 8.3 FUNDS FLOW ...... 98 9. IMPLEMENTATION SCHEDULE ...... 100

9.1 PRINCIPLES OF SCHEDULE ...... 100 9.2 IMPLEMENTATION SCHEDULE ...... 100 10. MONITORING AND EVALUATION ...... 103

10.1 INTERNAL MONITORING ...... 103 10.1.1 Implementation Procedures...... 103 10.1.2 Monitoring Scope ...... 103 10.1.3 Internal Monitoring Reports ...... 103 10.2 EXTERNAL MONITORING...... 103 10.2.1 Contents and Methods of External Monitoring ...... 104 10.2.2 External Monitoring Report...... 105 10.3 RESETTLEMENT COMPLETION REPORT ...... 105 APPENDIX 1: DETAILED COMPONENTS AND ACTIVITIES OF THE PROJECT ...... 106 APPENDIX 2: LAND USE RIGHTS TRANSFER FRAMEWORK ...... 109 APPENDIX 3: LAND USE FOR RURAL PUBLIC INFRASTRUCTURE FRAMEWORK .....116 APPENDIX 4: DUE DILIGENCE REVIEWS FOR COMPLETED LAND ACQUISITION OF PROPOSED FACILITIES...... 120

(I) 1.1.1: HUAYUAN COUNTY DOMESTIC WASTEWATER TREATMENT AND SUBPROJECT 3.9: HUAYUAN COUNTY ZIXIA LAKE AGRICULTURE AND TOURISM INTEGRATION DEMONSTRATION (MIAOZU INTANGIBLE CULTURAL HERITAGE EXHIBITION CENTER) ...... 121 (II) 3.5 FENGHUANG AND YONGSHUN ECOLOGICAL CORRIDOR CONSTRUCTION DEMONSTRATION 128 (III) 3.6 GUZHANG COUNTY QIFENG LAKE AGRICULTURE AND TOURISM INTEGRATION DEMONSTRATION ...... 129 (IV) 3.8: LONGSHAN COUNTY BANYUE LAKE AGRICULTURE AND TOURISM INTEGRATION...... 130

(V) 3.1: GUZHANG COUNTY LOCAL FEATURED AGRICULTURAL PRODUCTS LOGISTICS AND COLD CHAIN BASE ...... 133 (VI) 3.2: YONGSHUN COUNTY LOCAL FEATURED AGRICULTURAL PRODUCTS LOGISTICS AND COLD CHAIN BASE ...... 139 (VII) 3.3: JISHOU CITY LOCAL FEATURED AGRICULTURAL PRODUCTS LOGISTICS AND COLD CHAIN BASE ...... 146 (VIII) 3.4 LUXI COUNTY XINNV AGRICULTURAL PRODUCTS TRADING CENTER ...... 148 APPENDIX 5: RESETTLEMENT DUE DILIGENCE FOR EXISTING FACILITIES LINKED TO THE PROJECT ...... 149

(I) LONGSHAN COUNTY LIYE WASTEWATER TREATMENT STATION ...... 149 (II) LUXI COUNTY PUSHI WASTEWATER TREATMENT STATION...... 151 (III) HUAYUAN COUNTY GARBAGE LANDFILL...... 153 (IV) LONGSHAN COUNTY LIYE GARBAGE LANDFILL ...... 155 (V) LUXI COUNTY GARBAGE LANDFILL...... 157 (VI) JISHOU TAI'ERCHONG GARBAGE LANDFILL ...... 159 (VII) GUZHANG COUNTY GARBAGE LANDFILL ...... 161 (VIII) FENGHUANG COUNTY GARBAGE LANDFILL...... 163 (IX) YONGSHUN COUNTY GARBAGE LANDFILL...... 165 APPENDIX 6: RELEVANT LAWS, REGULATIONS AND POLICIES OF THE CENTRAL AND LOCAL GOVERNMENTS ...... 169 APPENDIX 7: LAND PRELIMINARY APPROVALS AND RELATED STATEMENT/EXPLANATIONS ...... 181

1. Project Overview

1.1 Project Background

1. The proposed Hunan Xiangxi Rural Environmental Improvement and Green Development Project (hereafter refer as the “project”) will be implemented in Xiangxi Tujia and Miao Autonomous Prefecture of Hunan Province, with the purpose of promoting rural revitalization and improving rural production and living standards by improving the living environment in the countryside, developing the rural special industries, and integrating the agricultural industry chains in the project area. 2. The scope of the project covers the entire territory of Xiangxi Tujia and Miao Autonomous Prefecture (hereafter refer as the “Xiangxi Prefecture”), including Jishou City, Luxi County, Fenghuang County, Huayuan County, Baojing County, Guzhang County, Yongshun County, Longshan County, with a total of 1 city and 7 counties. 3. The project aims at vitalizing the rural areas in all the 7 counties and 1 city of Xiangxi Tujia and Miao autonomous prefecture of Hunan province.

1.2 Project Outputs and Construction Contents

4. According to the feasibility study report of the project, the project includes the following three outputs and project implementation support component: 5. Output 1: Rural waste and sanitation management facilities and services improved. Activities for this output will include (i) construction and operation of wastewater management systems with innovative technologies (e.g., distributed wastewater management systems which have advantages over the traditional centralized system in rural areas, such as lower operation cost), innovative approach (e.g., public–private partnership appropriate for the operation and maintenance [O&M] of the small wastewater management systems in rural areas), and capacity development of technicians for the O&M of the wastewater management systems; (ii) construction and operation of garbage transfer stations; provision of equipment for garbage collection; capacity development of technicians for the O&M of the garbage transfer stations; capacity development of rural residents for garbage classification and recycling (particularly recycling of plastic), with at least 45% of female participants; and establishment and operation of rural garbage management teams, of which at least 30% are led by women; and (iii) renovation of rural households’ unsanitary toilets to sanitary ones. 6. Output 2: Local-featured ecological agricultural and forestry products developed. This output will develop local-featured ecological agricultural and forestry products in Xiangxi such as citrus, kiwi fruit, camellia, tea, and herbal medicine; which are grown with organic fertilizer and/or low chemical fertilizer and pesticide and qualities of which are guaranteed by certificates. Activities for this output will include (i) construction and operation of four bases for the development of local-featured ecological agricultural and forestry products, including research and development facilities, species reserve bases, seedling nurseries and breeding areas (greenhouses, open fields, etc.), water and fertilizer integrated irrigation systems, and field weather stations; (ii) provision of equipment (for laboratories, agriculture, pest control, insecticide, etc.) and materials (organic fertilizers, etc.) to the bases; (iii) research on breeding of and virus-free technologies for local-featured ecological agricultural and forestry products; and (iv) capacity development for technicians of the bases and the farmers, particularly the training of farmers at the bases for extension and sharing of

advanced technologies for local-featured ecological agricultural and forestry products, with at least 40% are female participants. 7. Output 3: Values added to local products through value chains and by eco-tourism. This output will add values to local agricultural and forestry products in Xiangxi through improvement of value chains and integration with eco-tourism, particularly ethnic minority inclusive eco-tourism, by effectively using rural landscapes, historical and cultural heritages, and cultural customs.1 Activities for this output will include (i) improvement of value chains for local-featured ecological agricultural and forestry products, including (a) construction and operation in six locations in Xiangxi of the facilities for storage, cold storage, processing, packaging, exhibition, e-commerce (to help famers sell their products to urban consumers), customer service (with agricultural product traceability system), and/or logistics; and (b) capacity development for staff of government agencies on the O&M of the facilities, with at least 40% are female participants; and (ii) integration of agriculture and/or forestry with eco-tourism, particularly ethnic minority inclusive eco-tourism, in six locations in Xiangxi, including (a) protection and/or improvement of ethnic minority inclusive eco-tourism resources such as forests, plant communities, lakes, and rivers; and the houses, family workshops, and festivals of the ethnic minorities; (b) construction of sightseeing footpaths, rest pavilions, public toilets, and parking lots in farmlands and forests; (c) construction and operation of fruit, vegetable, or tea-picking gardens; (d) construction and operation of ethnic minority historical and cultural exhibition facilities, sales plaza and supermarkets for local-featured ecological agricultural and forestry products and ethnic minority cultural products, and tourist service stations; (e) brand publicity; and (f) capacity development of farmers on protection of ethnic minority intangible heritage and management of fruit, vegetable, and tea-picking gardens; staff of government agencies, including technicians, on updated technologies for eco-tourism resource improvement; tourism service and management staff of government agencies on eco- tourism service skills; and management staff of government agencies on integration of agriculture and forestry with eco-tourism, with at least 40% are female participants. 8. Project implementation support. The implementation support component is to ensure successful implementation of the project with adequate capacity of management staff, well cross-sector collaboration of implementing agencies, stakeholders fully participation, well-performed monitoring and evaluation (M&E) of the project, and enhanced technical services. 9. The detailed components and activities of the project are shown in Appendix 1, and the location map is shown in Figure 1-1 and Figure 1-2.

1 Values added to local agricultural and forestry products will be measured as difference between the retail price and production cost (Design and Monitoring Framework in Appendix 1).

Figure 1-1: Location Map of XiangXi Autonomous Prefecture

1.3 Preparation of Resettlement Plan

10. XTMAPG and PMO prepared this Resettlement Plan for ADB’s review and approval, in accordance with ADB’s policy and procedure requirements on resettlement safeguard. 11. In January 2020, the PMO, through bidding, engaged a consulting agency to assist the preparation of RP. From March to April 2020, under the guidance of the consulting agency, the PMO and implanting agencies in project cities and counties carried out screening and scoping of LAR impacts, inventory of losses, socioeconomic survey in project area, consulted the legal framework and applicable policies with various stakeholders, and broadly discussed the organization arrangement and implementation schedule for the project. On this basis, the consulting agency also assisted the PMO in drafting the RP, which was finalized in ADB format with the help of Transaction Technical Assistance (TrTA) consultants. 12. The main methods adopted in RP preparation include: (1) secondary data collection and analysis; (2) first-hand data collection from on-site investigation; (3) consultation with relevant local government departments and other relevant units on key points in draft RP; (4) interviews with stakeholders, including sampling surveys of affected villages and HHs, focus group discussions (FDG) and key informant interviews (KII). 13. During project design phase, the draft RP will be updated according to the final design and detailed measurement survey (DMS) of LAR impacts. The updated

RP shall be submitted to the ADB for review and approval prior to contract award of civil works and commencement of land acquisition and resettlement works.

1.4 Measures to Avoid/Minimize Land Acquisition and Resettlement Impacts

14. In the project planning and feasibility study stages, the design institutes (DI), PMO and IAs worked together to find out ways to optimize the design schemes as well as to avoid and/or minimize LAR impacts where possible. See Table 1-2 for details. Table 1-1: Design Options and Reduced LAR Impacts Plan A: Plan B: Reduced LAR Subprojects original optimized impacts option option The site is Zixia Lake sewage The site is Output located on LA with an area of treatment station of located on rural 1 existing state- 14 mu avoided Huayuan County collective land owned land Kiwi fruit and citrus seedling technical Land use by Land use by Reduce land Output research and means of land means of land acquisition with an 2 development breeding use rights acquisition area of 260 mu base in XiangXi transfer (LURT) Prefecture Characteristic The site is agricultural products The site is located on LA with an area of logistics cold chain located on rural existing state- 26 mu avoided base in Yongshun collective land owned land County The agriculture and The site is The site is tourism integration located on LA with an area of located on rural project in Banyue lake existing state- 17 mu avoided collective land of Longshan County owned land Output The rural agriculture 3 Land use by Land use by and tourism integration Reduce land means of land means of land project in Sicheng acquisition with an acquisition use rights Village of Yongshun area of 350 mu transfer (LURT) County With a total length With a total length The ring road round of 20 km, of 13.87 km, Reduce land Qifeng Lake in including newly including newly acquisition with an Guzhang County constructed constructed area of 183.45 mu section of 9.6 km section of 3.34 km

left：original scheme right: optimized scheme Figure 3: Design Options of the Ring Road Round Qifeng Lake in Guzhang County

15. At the RP updating and implementation stages, following measures will be taken to further minimize the local impacts of the project: ➢ The Xiangxi and local PMOs will be responsible to strengthen the daily communication among PMO, Design Institute, IAs and affected villages and households to find potential measures to further avoid and/or minimize the LAR impacts during preliminary design, RP updating and implementation; ➢ The individual resettlement specialist to be recruited for startup support will organize meaningful consultation meetings with IAs, DIs, affected villages/communities, villager representatives and other stakeholders on the final design and potential measures to reduce LAR impacts during final design and RP updating; ➢ The project management resettlement specialist to be recruited by Xiangxi PMO will be responsible to consult with IAs, DIs and affected communities and people to find out potential schemes to reduce LAR impacts during RP implementation stage. ➢ The external resettlement monitor to be recruited by Xiangxi PMO will be responsible to monitor and report the measures and performance in avoiding and/or minimizing LAR impacts throughout the project.

1.5 DDR for Completed LAR Activities of Proposed or Existing Facilities

16. Due diligence reports (DDR) on LAR have been for (i) proposed facilities under the Project whose LAR had been completed before project preparation; and (ii) existing facilities linked to the project that identified in IEE. All those DDRs are included as appendixes of the RP and summarized in Table 1-2. Table 0-1: Summary of Resettlement DDRs for Proposed Facilities and Existing Facilities DDR SN County/City Subproject LAR Profiles Remarks conclusions I. Completed LAR of proposed Facilities under the Project 1.1: Huayuan County PLA with an area of No pending See DDR 1 Huayuan Domestic Wastewater 20 mu completed in issues (I) Treatment and Mar 2017 State-owned forest Fenghuang 3.1 Ecological corridor land in history, 60 No pending See DDR 2 and construction mu for each of issues (II) Yongshun demonstration Fenghuang and Yongshun county. 3.2 Guzhang county 220.5 mu of state- Qifeng lake agriculture No pending See DDR 3 Guzhang owned existing flood and tourism integration issues (III) fluctuation zoon demonstration 3.4: Longshan county PLA with an area of No pending See DDR 4 Longshan Banyue lake agriculture 17 mu completed in issues (IV) and tourism integration 2006 3.5: Huayuan County PLA with an area of Zixia Lake Agriculture No pending See DDR 5 Huayuan 30 mu completed in and Tourism Integration issues (I) Mar 2017 Demonstration 3.7: Guzhang county PLA with an area of locally-featured No pending See DDR 6 Guzhang 30 mu completed in agricultural products issues (VI) Nov 2017 logistics cold chain 3.8: Yongshun County Locally-featured PLA with an area of No pending See DDR 7 Yongshun Agricultural Products 16.17 mu completed issues (VII) Logistics and Cold Chain by the end of 2017 Base

DDR SN County/City Subproject LAR Profiles Remarks conclusions Unused state-owned 3.9: Jishou city locally- land with an area of featured agricultural No pending See DDR 8 Jishou 36.6 mu acquired products production and issues (VIII) from an enterprise in processing base 2013 Rebuilding on the 3.10 Luxi county Xinnv exsiting land, No pending See DDR 9 Luxi agricultural products involving 16.1mu of issues (IX) trading center state-owned land. II. Completed LAR of Existing Facilities linked to the Project Longshan County Liye PLA with an area of No pending 1 Wastewater Treatment 4.28 mu completed issues Station in 2014 Longshan PLA with an area of Longshan County Liye No pending 2 86.9 mu completed Garbage Landfill issues in 2010 Luxi County Pushi PLA with an area of No pending 3 Wastewater Treatment 15.6 mu completed issues Station in 2016 Luxi PLA with an area of Luxi County Garbage No pending 4 85.5 mu completed Landfill issues in 2008 PLA with an area of See DDR Huayuan County No pending 5 Huyuan 121.73 mu in Appendix Garbage Landfill issues completed in 2006 5 PLA with an area of Jishou Tai'erchong No pending 6 Jishou 399.27 mu Garbage Landfill issues completed in 2017 PLA with an area of Guzhang County No pending 7 Guzhang 128.32 mu Garbage Landfill issues completed in 2009 Fenghuang Qingshanxi PLA with an area of No pending 8 Fenghuang Construction Waste 82.32 mu completed issues Disposal Site in 2007 PLA with an area of Yongshun County No pending 9 Yongshun 113.25 mu Garbage Landfill issues completed in 2006

2. Project Land Use and Impacts

2.1 Overview of Land Use Types and Impacts

17. The project will involve four categories of land use, including: ➢ (i) State-owned land occupation (SLO): some subprojects will occupy existing state-owned land as prescribed by law, or the existing state-owned land that was expropriated in recent years. As a public welfare project invested by local government, this project adopts the way of allocating and using the existing state- owned land in accordance with the land use master plan, and does not involve land compensation. See Appendix 4 for resettlement DDRs of completed LAR. ➢ (ii) Permanent land acquisition (PLA) of rural collective land: according to the actual construction needs, some rural collective land in project area will need to be acquired permanently and transferred to state-owned land following relevant land administration regulations of PRC. In that case, the affected rural collective and farmer households shall be reasonably compensated and properly restored according to relevant law and regulations. The project’s large-scale permanent structures or facilities need to permanently acquire rural collective land if existing state-owned land is not available, such as wastewater treatment plants in project towns, cultural exhibition center, historical and cultural museum, research and development center, featured agriculture production exhibition and sales centers, fresh-keeping storehouses, parking lots, etc. ➢ (iii) Land use rights transfer (LURT): it refers to the transfer of land use rights (including rights of land management) to implementing units of some subprojects from land (use right) holders (farmer households or rural collective) through voluntary and equal negotiation. If LURT agreements reached, the land holders will receive land rental according to the agreement signed by the two sides. The LURT is mainly applicable to those subprojects for agriculture and forestry development, such as featured fruit breeding and research base, tea-oil tree planting base, vegetable planting base, germplasm resources base of rare tree species, tea planting base, fresh orchard base, etc. See Appendix 2 for LURT framework. ➢ (iv) Land Use for rural public infrastructures (LUPRI): in accordance with the rural revitalization development planning and rural construction land use planning, the IAs will propose sites of rural public infrastructures under the project, and then consult with involved villages and farmer households on land use area and land compensation/subsidy (or internal land adjustment) through equal and voluntary manner. After completion of civil works, such kind of rural public infrastructures will belong to rural collective or farmer households for management and use, while the land occupied is still owned by rural collectives and held by original holders. Under this project, the small-scale rural wastewater treatment facilities, the rural solid waste transfer facilities and rural roads are applicable to LURPI. See Appendix 3 for LUPRI Framework. 18. The land use types and scope are summarized in Table 2-1.

Table 2-1 Summary of Land Use Types and Scope

(I) Use of existing （II）Involuntary land (III) Voluntary land land use SN. Project outputs/subprojects use Subtotal SOL PLA LUPRI LURT (Mu) (Mu) (Mu) (Mu) Rural waste and sanitation （I） management facilities and services 20 19.61 556.8 0 596.41 improved. 1.1 Wastewater management system Huayuan county domestic wastewater 1.1.1 20 0 50 0 70 treatment 1.1.2 Longshan county wastewater treatment 0 12.5 150 0 162.5 1.1.3 Luxi county wastewater treatment 0 0 60.8 0 60.8 Jishou city rural domestic wastewater 1.1.4. 0 7.11 50 0 57.11 treatment Guzhang County rural wastewater 1.1.5 0 0 50 0 50 treatment 1.1.6 Baojing County rural wastewater treatment 0 0 50 0 50 Yongshun county rural wastewater 1.1.7 0 0 50 0 50 treatment 1.2 Garbage management Huayuan county Zixia lake rural domestic 1.2.1 0 0 2 0 2 garbage treatment Longshan county Youshui river rural 1.2.2 0 0 84 0 84 domestic garbage treatment Luxi county rural domestic garbage 1.2.3 0 0 2 0 2 treatment Jishou city Dong river rural domestic 1.2.4 0 0 2 0 2 garbage treatment Guzhang county rural domestic garbage 1.2.5 0 0 2 0 2 Treatment Baojing county rural domestic garbage 1.2.6 0 0 2 0 2 treatment Yongshun county rural domestic garbage 1.2.7 0 0 2 0 2 treatment 1.3 Renovation of rural households’ unsanitary toilets to sanitary ones 1.3.1~1.3.4 Household toilet renovation 0 0 0 0 0

(I) Use of existing （II）Involuntary land (III) Voluntary land use land use SN. Project outputs/subprojects Subtotal SOL PLA LUPRI LURT (Mu) (Mu) (Mu) (Mu) Local featured agricultural and forestry （II） 0 33.5 80 9335 9448.5 products developed. Xiangxi prefectural kiwi fruit and citrus 2.1 0 0 260 260 seedlings research and breeding Base Baojing county Lvdongshan gold tea 2.2 0 33.5 0 0 33.5 industrial park Huayuan county Zixia lake area local 2.3 0 0 80 3000 3080 special-featured agricultural Base Wuling moutain area valuable germplasm 2.4 0 0 0 6075 6075 resources conservation Values added to agricultural and （III） 515.1 45.48 503.7 525 1589.28 forestry products. Guzhang County local featured 3.1 agricultural products logistics and cold 56.1 0 0 0 56.1 chain base Yongshun County local featured 3.2 agricultural products logistics and cold 16.1 7.27 0 0 23.37 chain base Jishou City local featured agricultural 3.3 36.6 0 0 0 36.6 products logistics and cold chain base Luxi county Xinnv agricultural products 3.4 16.6 0 0 0 16.6 trading center Ecological corridor construction 3.5 120 0 0 0 120 demonstration Guzhang County Qifeng Lake agriculture 3.6 220.5 0 100.4 0 320.9 and forestry integration with tourism Fenghuang county Shanjiang village 3.7 0 20.01 16.6 0 36.61 tourism demonstration Longshan county Banyue lake agriculture 3.8 17 0 0 0 17 and tourism integration Huayuan county Zixia lake agriculture and 3.9 32.2 0 384.9 0 417.1 tourism integration demonstration

(I) Use of existing （II）Involuntary land (III) Voluntary land use land use SN. Project outputs/subprojects Subtotal SOL PLA LUPRI LURT (Mu) (Mu) (Mu) (Mu) Yongshun County Sicheng Village 3.10 agriculture integration with ethnic minority 0 18.2 1.8 525 545 inclusive eco-tourism Total 535.1 98.59 1140.5 9860 11634.1 Data source: surveys of IAs and DIs on sites (May 2020).

2.2 Detailed Scope of Land Use 2.2.1. State-owned Land Occupation (SLO)2 19. See Table 2-2 for details of SLO impacts of each subproject. Occupation of existing state-owned land will not involve any affected people. For state-owned land acquired in recent years, see the DDR of LAR in Appendix 4.

Figure 4: Land to be Occupied by Guzhang county locally-featured agricultural products logistics cold chain

Figure 5: Land to be Occupied by Yongshun county locally-featured agricultural products logistics and cold Chain base

Figure 6: Land to be Occupied Jishou city locally-featured agricultural products production and processing base

2 The right to use the state-owned land now belongs to the project IAs and is managed by them, e.g. the reservoir management land hold by local water resource bureau, the state-owned forestry land hold by local forestry bureau. During implementation of these components, no need to obtain land use rights from other entities.

Table 2-2 Summary of SLO of Each Subproject Village/com SN. Project outputs/subprojects County Town SLO (mu) Land Use Manner Remarks munity Rural waste and sanitation （I） management facilities and services subtotal 20 in Xiangxi improved Huayuan county domestic wastewater Xingnongyua Provided by local Acquired recently, see DDR in Huayuai Huayuai 20 1.1.1 treatment n government appendix 4. （III Agricultural value chain in Xiangxi improved through industrial subtotal 515.1 ） integration Guzhang county local featured Provided by local Acquired recently, see DDR in agricultural products logistics and cold Guzhang 56.1 3.1 chain base government appendix 4. Yongshun County local featured Provided by local Acquired recently, see DDR in 3.2 agricultural products logistics and cold Yonshun Furong Xincheng 16.1 chain base government appendix 4. QIanzhou Jishou city local featured agricultural Provided by local Acquired recently, see DDR in 3.3 JIshou Subdistric Tuyan 36.6 products logistics and cold chain base government appendix 4. t Luxi county Xinnv agricultural products Reconstruction on original site 3.4 Luxi Wuxi 16.6 State-owned trading center See DDR in Appendix 4 Fenghuan Stated-owned forestry land, 60 Ecological corridor construction 3.5 g & various various 120 State-owned mu in each county. See DDR in demonstration Yongshun Appendix 4 Guzhang County Qifeng Lake Stated-owned reservoir 3.6 agriculture and forestry integration with Guzhang various various 220.5 State-owned management land. See DDR in tourism Appendix 4 Acquired in 2010, without any Longshan county Banyue lake Provided by local 3.8 Longshan 17 pending issues. See DDR in agriculture and tourism integration government Appendix 4 Huayuan county Zixia lake agriculture Xingnongyua Provided by local Acquired recently, see DDR in 3.9 Huayuai Huayuai 32.2 and tourism integration demonstration n government appendix 4. Total 535.1 Data source: surveys of IAs and DIs on sites (May 2020).

2.2.2 Permanent Land Acquisition (PLA) 20. According to the preliminary investigation, rural collective land with a total of 98.59 mu will be permanently acquired by the project, involving 13 villages (communities) in 10 townships in 5 counties/cities, with 61 households and 261 persons affected. All the affected people are ethnic minorities. See Table 2-3 and 2-4 for details.

Figure 7: Land to be acquired by Miaoertan WWWT in Longshan County

Figure 8: Land to be acquired by Baojing county Lvdongshan gold tea industrial park (Parking)

Table 2-3 Detailed Impacts of PLA (by Subproject) In which, Affected Population In which, Miao Tujia Reserved SN Project outputs/subprojects PLA（mu） Paddy Dry Garden Forestry Unused construction AHs APs AHs APs AHs APs land land land land Land land Rural waste and sanitation management facilities and 19.61 1.75 0.7 2.13 2.48 11.6 0.95 22 93 12 51 10 42 （I） services improved. Longshan county wastewater 1.1.2 12.5 11.6 0.9 14 59 4 17 10 42 treatment

Jishou city rural domestic 7.11 1.75 0.7 2.13 2.48 0.05 8 34 8 34 0 0 1.1.4 wastewater treatment Local featured agricultural （II） and forestry products 33.5 7.5 13 0 0 3 10 14 60 14 60 0 0 developed. Baojing county Lvdongshan 2.2 33.5 7.5 13 3 10 14 60 14 60 0 0 gold tea industrial park Values added to （III） agricultural and forestry 45.48 8.373 17.79 0 3.2 0 16.117 25 108 19 81 6 27 products. Yongshun County local 3.2 featured agricultural products 7.27 7.27 3 14 0 0 3 14 logistics and cold chain base Fenghuang county Shanjiang 3.7 20.01 1.103 2.79 16.117 19 81 19 81 0 0 village tourism demonstration Yongshun county Sicheng 3.10 village agriculture and 18.2 15 3.2 3 13 0 0 3 13 tourism integration

Total 98.59 17.623 31.49 2.13 5.68 14.6 27.067 61 261 45 192 16 69

Data source: surveys of IAs and DIs on sites (May 2020).

Table 2-4 Detailed Impacts of PLA (by County) Affected In which, In which Tujia Village Population Miao County/ Community/Villa PLA SN Town r Reserved City ge （mu） Padd Dry Garde Forestr Unuse AH AP AH AP Group constructio AHs APs y land land n land y land d Land s s s s n land Miao’ert Miaoshi 1 Longs 2nd 9.6 0 0 0 0 9.6 0 9 38 9 38 an Community han 2 Xichehe Xiche Community 4th 2.9 0 0 0 0 2 0.9 5 21 4 17 1 4 4 Subtotal 12.5 0 0 0 0 11.6 0.9 14 59 4 17 10 42 Majing’a 5 Xima Community 5th 2.5 0 0 0.02 2.48 0 0 1 4 1 4 0 0 o 6 Yilue Longwu Village 3rd 1.75 1.75 0 0 0 0 0 3 13 3 13 0 0 Jishou 7 Taiping Taiping 村 3rd 1.22 0 0 1.17 0 0 0.05 2 9 2 9 0 0 Qingming 8 Danqing 1st 1.64 0 0.7 0.94 0 0 0 2 8 2 8 0 0 Community 9 Subtotal 7.11 1.75 0.7 2.13 2.48 0 0.05 8 34 8 34 0 0 Bangh 10 Huangjin Village 13 0 13 0 0 0 0 2 9 2 9 0 0 ai 11 Hangji Village Hangji 7.5 7.5 0 0 0 0 0 5 21 5 21 0 0 Baojin Lvdong Hangs 12 g shan Hangsha Village 10 0 0 0 0 0 10 6 26 6 26 0 0 ha Lvdon 13 Lvdong Village 3 0 0 0 0 3 0 1 4 1 4 0 0 g 14 Subtotal 33.5 7.5 13 0 0 3 10 14 60 14 60 0 0 Fengh Shanjian Laojiaz 15 Xionglong Village 20.01 1.103 2.79 0 0 0 16.117 19 81 19 81 0 0 uang g hai 16 Lingxi Sicheng Village Sicheng 18.2 0 15 0 3.2 0 0 3 13 0 0 3 13 Yongs Xincheng Shuaid 17 hun t 7.27 7.27 0 0 0 0 0 3 14 0 0 3 14 Community ong 18 Subtotal 25.47 7.27 15 0 3.2 0 0 6 27 0 0 6 27 Tota 17.62 31.4 5 10 13 13 98.59 2.13 5.68 14.6 27.067 61 261 45 192 16 69 l 3 9 Data source: surveys of IAs and DIs on sites (May 2020).

21. Generally speaking, the land and income losses of affected villages are not significant, as there are no large-scale structures to be constructed under the project. However, there are still some HHs that will lose most of their farmland. Table 2-5 shows the details of land and income losses at HH level. And Table 2-6 provides the further analysis of loss of income, especially for those higher than 10% loss of APs and related HHs due to LA, who are identified as severely affected people and households. It is estimated that a total of 61 households with 261 persons will be affected permanently by the project’s land acquisition impacts; and among them 34 households with 151 persons will be significantly affected (losing more than 10% income), including 33 people of 7 households with less than 0.3mu per capita after LA who are eligible for application of social security insurance.

Table 2-5 Land and Income Losses of AHs

Affected land loss rate Income loss rate County/C Community/Vill Villager Population <10% 11%-30% 31-50% >51% <10% 11%-30% 31-50% SN Town ity age Group AH AP AH AP AH AP AH AP AH AP AH AP AH AP AHs APs s s s s s s s s s s s s s s Miao’erta Miaoshi 1 2nd 9 38 2 8 5 21 1 4 1 5 5 20 4 18 0 0 Longsha n Community n Xiche 2 Xichehe 4th 5 21 2 8 3 13 0 0 0 0 2 7 3 14 0 0 Community 4 Subtotal 14 59 8 4 1 4 1 5 7 27 7 32 0 0 Xima 5 Majing’ao 5th 1 4 0 0 1 4 0 0 0 0 0 0 1 4 0 0 Community 6 Yilue Longwu Village 3rd 3 13 0 0 3 13 0 0 0 0 2 8 1 5 0 0 Jishou 7 Taiping Taiping 村 3rd 2 9 0 0 2 9 0 0 0 0 1 4 1 5 0 0 Qingming 8 Danqing 1st 2 8 1 3 1 5 0 0 0 0 1 5 1 3 0 0 Community 9 Subtotal 8 34 7 1 0 0 0 0 4 17 4 17 0 0 10 Huangjin Village Banghai 2 9 0 0 1 5 1 4 0 0 1 5 0 0 1 4 11 Hangji Village Hangji 5 21 1 4 3 13 1 4 0 0 2 7 2 10 1 4 Lvdongsh Baojing Hangsh 12 an Hangsha Village 6 26 1 5 4 16 1 5 0 3 13 3 13 0 0 a 13 Lvdong Village Lvdong 1 4 0 0 0 0 1 4 0 0 1 4 0 0 0 0 14 Subtotal 14 60 8 2 4 17 0 0 7 29 5 23 2 8 Fenghua Xionglong Laojiazh 15 Shanjiang 19 81 4 17 11 46 2 9 2 9 4 15 9 37 6 29 ng Village ai 16 Lingxi Sicheng Village Sicheng 3 13 0 0 0 0 1 5 2 8 3 13 0 0 0 0 Yongshu Xincheng Shuaido 17 n Furong 3 14 1 5 1 5 1 4 0 0 2 9 1 5 0 0 Community ng 18 Subtotal 6 27 1 1 2 9 2 8 5 22 1 5 0 0 Tot 15 27 11 11 5 10 13 13 61 261 12 50 35 9 39 5 22 26 8 37 al 0 0 4

Table 2-6 Severity of Impacts and Estimates of Severely Affected HHs and Persons

Group 1 Group 2 Group 3 Group 4 No. of Persons/HHs No. of Persons/HHs No. of Persons/HHs No. of Persons/HHs losing land ncome loss losing land Income loss losing land Income loss losing land Income loss Total severely between less than between between 10- between 30%- between 15- more than more than affected Remarks 10%-20%. 10% 20%-30% 15% 50% 25% 51% 25% HHs/APs Average Average Average Average Average land average land average land average land income loss Income loss Income Income loss loss 15% loss 25% loss 40% loss 80% 6.9% 11.5% loss18.4% 36.8% Group 60 (15 HHs) 90 (20 HHs) 39 (9 HHs) 22 (5 HHs) 151 (34 HHs) (2+3+4) Of the above, 11 persons of 2 HHs Of the above, 22 persons of 5 Group Eligible for social security subsidy with less than 0.3mu per capita HHs with less than 0.3mu per 33 （7 HHs） (3+4) after LA capita after LA

2.2.3. Land Use Rights Transfer (LURT, Voluntary) 22. The project also involves numerous activities of featured product development and ecological protection in rural areas, such as the construction of organic tea garden, oil-tea base, the forest, fruit planting base, fine vegetable bases, the kiwi fruit and citrus seedling technical research and breeding base, and the construction of germplasm resources pool of rare tree species. According to relevant laws and regulations as well as the practices of rural construction, these activities of rural industrial development and ecological protection will not change the collective ownership of rural land or the nature of agricultural land, so the land will be used through land use rights transfer (LURT) on basis of voluntary negotiation with current land holders; wherein it is necessary to construct buildings, the formalities of land use for agricultural facilities shall be submitted to and approved by local rural and agriculture affairs bureau. The IAs will negotiate with involved village groups and farmer households on sites on an equal and voluntary basis during project implementation, so as to determine the specific site selection, scope and land area, as well as LURT arrangements, e.g. rental rate, duration, benefit sharing mechanism. 23. In order to standardize the negotiation principle and implementation process of the above-mentioned LURT, a LURT framework has been prepared, see details in Appendix 2. Table 2-7: Summary of Scope of Project LURT/Lease (by Subproject)

LURT In Which NS Project outputs/subprojects （mu） Agriculture Forestry Unused land land land Local featured agricultural and (II) 9335 5601 2800.5 933.5 forestry products developed. Xiangxi prefectural kiwi fruit and 2.1 citrus seedlings research and 260 156 78 26 breeding Base Huayuan county Zixia lake area 2.3 3000 1800 900 300 locally-featured agricultural base Wuling moutain area valuable 2.4 germplasm resources 6075 3645 1822.5 607.5 conservation Values added to agricultural (III) 525 315 157.5 52.5 and forestry products. Yongshun county Sicheng village 3.10 agriculture and tourism 525 315 157.5 52.5 integration Total 9860 5916 2958 986 Data source: surveys of IAs and DIs on sites (May 2020).

Table 2-8: Summary of Project LURT/Lease (by County and City)

LURT In Which County Subprojects （mu） Agriculture land Forestry land Unused land Xiangxi prefectural kiwi fruit and citrus 260 156 78 26 seedlings research and breeding Base Fenghuang Wuling moutain area valuable germplasm 6075 3645 1822.5 607.5 resources conservation Subtotal 6335 3801 1900.5 633.5 Upgrading of Huayuan county Zixia lake area Huayuan 3000 1800 900 300 locally-featured agricultural base

LURT In Which County Subprojects （mu） Agriculture land Forestry land Unused land Yongshun county Sicheng village Yongshun 525 315 157.5 52.5 agriculture and tourism integration Total 9860 5916 2958 986 Data source: surveys of IAs and DIs on sites (May 2020).

2.2.4. Land Use for Rural Public Infrastructure (LURPI, Voluntary) 24. The project will construct a large number of village-level public infrastructures in rural area, such as rural decentralized wastewater treatment facilities, rural garbage collection and transfer facilities, rural toilet renovation and rural road construction, which will use small-scale land on flexible locations. These facilities will be managed, used and maintained by the local township government, village committees, villager groups or even farmer households, so there is no need to expropriate the land as state-owned land. According to relevant laws and regulations as well as the practices of rural construction, the IAs will consult with the villager groups and farmer households on site selection for these village-level public infrastructure via an equal and voluntary procedure during project implementation stage, as well as to reach voluntary agreements on land use area, compensation/subsidy rates, or land adjustment within villager groups. See the summary of LURPI impacts in Table 2-8 and 2-9. 25. In order to standardize the consultation procedures and implementation arrangements of the above-mentioned LURPI, a LURPI framework has been prepared as shown in Appendix 3.

Figure 9： Proposed rural scattered small-scale wastewater treatment facilities (example)

Table 2-9: Summary of LURPI Scope (by Subproject)

In which, SN Project outputs/subprojects LURPI（mu） Paddy land Dry land Garden land Forestry land Unused Land Reserved construction land Rural waste and sanitation management 556.8 55.68 139.2 111.36 111.36 83.52 55.68 （I） facilities and services improved. Huayuan county domestic wastewater 50 5 1.1.1 treatment 5 12.5 10 10 7.5 1.1.2 Longshan county wastewater treatment 150 15 37.5 30 30 22.5 15 1.1.3 Luxi county wastewater treatment 60.8 6.08 15.2 12.16 12.16 9.12 6.08 Jishou city rural domestic wastewater 50 5 1.1.4 treatment 5 12.5 10 10 7.5 1.1.5 Guzhang County rural wastewater treatment 50 5 12.5 10 10 7.5 5 1.1.6 Baojing County rural wastewater treatment 50 5 12.5 10 10 7.5 5 1.1.7 Yongshun county rural wastewater treatment 50 5 12.5 10 10 7.5 5 Huayuan county Zixia lake rural domestic 1.2.1 2 0.2 garbage treatment 0.2 0.5 0.4 0.4 0.3 Longshan county Youshui river rural 1.2.2 84 8.4 domestic garbage treatment 8.4 21 16.8 16.8 12.6 Luxi county rural domestic garbage 1.2.3 2 0.2 treatment 0.2 0.5 0.4 0.4 0.3 Jishou city Dong river rural domestic 1.2.4 2 0.2 garbage treatment 0.2 0.5 0.4 0.4 0.3 Guzhang county rural domestic garbage 1.2.5 2 0.2 Treatment 0.2 0.5 0.4 0.4 0.3 Baojing county rural domestic garbage 1.2.6 2 0.2 treatment 0.2 0.5 0.4 0.4 0.3 Yongshun county rural domestic garbage 1.2.7 2 0.2 treatment 0.2 0.5 0.4 0.4 0.3 Local featured agricultural and forestry （II） 80 8 products developed. 8 20 16 16 12 Huayuan county Zixia lake area locally- 2.3 80 8 featured agricultural base 8 20 16 16 12

Values added to agricultural and forestry （III） 503.7 products. 50.37 125.925 100.74 100.74 75.555 50.37 Guzhang county Qifeng lake agriculture and 3.6 100.4 10.04 tourism integration demonstration 10.04 25.1 20.08 20.08 15.06 Fenghuang county Shanjiang village tourism 3.7 16.6 1.66 demonstration 1.66 4.15 3.32 3.32 2.49 Huayuan county Zixia lake agriculture and 3.9 384.9 38.49 tourism integration demonstration 38.49 96.225 76.98 76.98 57.735 Yongshun county Sicheng village agriculture 3.10 1.8 0.18 and tourism integration 0.18 0.45 0.36 0.36 0.27 Total 1140.5 114.05 285.125 228.1 228.1 171.075 114.05 Data source: surveys of IAs and DIs on sites (May 2020).

Table 2-10: Summary of LURPI Scope (by County)

In which, County SN Project outputs/subprojects LURPI（mu） Forestry Unused Reserved Paddy land Dry land Garden land land Land construction land 1.1.1 Huayuan county domestic wastewater treatment 50 5 12.5 10 10 7.5 5 Huayuan county Zixia lake rural domestic garbage 1.2.1 2 0.2 treatment 0.2 0.5 0.4 0.4 0.3 Huayuan county Zixia lake area local special-featured Huayuan 2.3 80 8 agricultural Base 8 20 16 16 12 Huayuan county Zixia lake agriculture and tourism 3.9 384.9 38.49 integration demonstration 38.49 96.225 76.98 76.98 57.735 Subtotal 516.9 51.69 129.225 103.38 103.38 77.535 51.69 1.1.2 Longshan county wastewater treatment 150 15 37.5 30 30 22.5 15 Longshan county Youshui river rural domestic garbage Longshan 1.2.2 84 8.4 treatment 8.4 21 16.8 16.8 12.6 Subtotal 234 23.4 58.5 46.8 46.8 35.1 23.4 1.1.3 Luxi county wastewater treatment 60.8 6.08 15.2 12.16 12.16 9.12 6.08 Luxi 1.2.3 Luxi county rural domestic garbage treatment 2 0.2 0.5 0.4 0.4 0.3 0.2 Subtotal 62.8 6.28 15.7 12.56 12.56 9.42 6.28 Jishou 1.1.4 Jishou city rural domestic wastewater treatment 50 5 12.5 10 10 7.5 5

In which, County SN Project outputs/subprojects LURPI（mu） Forestry Unused Reserved Paddy land Dry land Garden land land Land construction land 1.2.4 Jishou city Dong river rural domestic garbage treatment 2 0.2 0.5 0.4 0.4 0.3 0.2 Subtotal 52 5.2 13 10.4 10.4 7.8 5.2 1.1.5 Guzhang County rural wastewater treatment 50 5 12.5 10 10 7.5 5 1.2.5 Guzhang county rural domestic garbage Treatment 2 0.2 0.5 0.4 0.4 0.3 0.2 Guzhang Guzhang county Qifeng lake agriculture and tourism 3.6 100.4 10.04 integration demonstration 10.04 25.1 20.08 20.08 15.06 Subtotal 152.4 15.24 38.1 30.48 30.48 22.86 15.24 1.1.6 Baojing County rural wastewater treatment 50 5 12.5 10 10 7.5 5 Baojing 1.2.6 Baojing county rural domestic garbage treatment 2 0.2 0.5 0.4 0.4 0.3 0.2 Subtotal 52 5.2 13 10.4 10.4 7.8 5.2 1.1.7 Yongshun county rural wastewater treatment 50 5 12.5 10 10 7.5 5 1.2.7 Yongshun county rural domestic garbage treatment 2 0.2 0.5 0.4 0.4 0.3 0.2 Yongshun Yongshun county Sicheng village agriculture and 3.10 1.8 0.18 tourism integration 0.18 0.45 0.36 0.36 0.27 Subtotal 53.8 5.38 13.45 10.76 10.76 8.07 5.38 Fenghuang county Shanjiang village tourism Fenghuang 3.7 16.6 1.66 demonstration 1.66 4.15 3.32 3.32 2.49 Total 1140.5 114.05 285.125 228.1 228.1 171.075 114.05 Data source: surveys of IAs and DIs on sites (May 2020).

2.2.5. House Demolition (HD) 26. Identified and confirmed by the FSR DI and the IAs, the project does not involve any impacts on house nor structures owned by households or agencies. 2.2.6. Temporary Land Occupation (TLO) 27. According to the FSR, the project will mostly involve construction of small- scale rural infrastructures; meanwhile, most project activities, including camping, building materials stacking or other TLO is expected within the project boundary, it isn’t expected to have a large-scale temporary land occupation impact. On basis of preliminary screening, some temporary facilities such as access road, workers’ camp and stock-yard, will involve temporary occupation of rural collective land during construction stage. Totally, the project will temporarily use rural collective land with a total area of 9 mu, affecting 34 households with 125 persons, as shown in Table 2-11 and 2-12. The impact related to TLO will be updated based on the project detail design and DMS when the exact impacts have been confirmed. Table 2-11: Impacts of Temporary Land Occupation (by Subproject) Affected In which, TLO Population SN Project outputs/subprojects （mu） Dry Forest AHs APs land land Rural waste and sanitation management facilities and 2.6 1.82 0.78 12 41 （I） services improved Rural domestic wastewater 2.6 1.82 0.78 12 41 1 treatment Longshan county wastewater 1.1.2 1.5 1.05 0.45 6 19 treatment Jishou city rural domestic 1.1 0.77 0.33 6 22 1.1.4 wastewater treatment Local-featured ecological （II） agricultural and forestry 1.8 1.26 0.54 7 26 products developed. Baojing county Lvdongshan 2.2 1.8 1.26 0.54 7 26 gold tea industrial park Value added to local （III） products through value 4.6 3.22 1.38 15 58 chains and by eco-tourism Fenghuang county Shanjiang 3.7 1.6 1.12 0.48 7 27 village tourism demonstration Yongshun county Sicheng 3.10 village agriculture and tourism 3 2.1 0.9 8 31 integration Total 9 6.3 2.7 34 125 Data source: surveys of IAs and DIs on sites (May 2020).

Table 2-12: Impacts of Temporary Land Occupation (by County)

Total

Luxi

Item

）））））））

）

1 2 3 4 5 6 7 8

Unit Longshan Jishou Baojing Fenghuang Huayuan Yongshun Guzhang （（（（（（（（ TLO (mu) 1.5 1.1 1.8 1.6 0 3 0 0 99 Affected AHs 6 6 7 7 0 8 0 0 34 Population APs 19 22 26 27 0 31 0 0 125 Data source: surveys of IAs and DIs on sites (May 2020).

2.2.7. Yong Crops and Ground Attachments 28. It is expected that the project will involve impacts on various young crops and ground attachments, such as crops, fruit trees, rural roads, electric poles, telecommunication poles, etc. However, the specific amounts of these ground attachments will be surveyed and accounted when the sites and scopes of numerous rural facilities are fixed with the final design in the implementation stage. During project design and RP update stages, PMOs and IAs will carry out detailed measurement survey (DMS) to further identify the ground attachments to be affected by the project.

2.3 Summary of Project Land Use Scope

2.3.1. Summary of Land Use and Affected Population 29. See Table 2-13 for the summary of land use and affected population under the project.

Table 2-13: Summary of Land Use; and Affected Population

（1）（2）（3）（4）（5）（6）（7）（8） Categories Items Total Unit Longshan Jishou Baojing Fenghuang Huayuan Yongshun Guzhang Luxi SLO mu 17 36.6 0 60 52.2 76.1 276.6 16.6 535.1 PLA mu 12.5 7.11 33.5 20.01 0 25.47 0 0 98.59 (I) Permanent/long- LUPRI mu 234 52 52 16.6 516.9 53.8 152.4 62.8 1140.5 term Land Use LURT mu 0 0 0 6335 3000 525 0 0 9860 Subtotal mu 263.5 95.71 85.5 6431.61 3569.1 680.37 429 79.4 11634.1 (II) Temporary land Subtotal mu 1.5 1.1 1.8 1.6 0 3 0 0 9 use (TLO) (III) Total land use Total mu 265 96.81 87.3 6433.21 3569.1 722.07 429 79.4 11681.89 area AHs 14 8 14 19 0 6 0 0 61 PLA APs 59 34 60 81 0 27 0 0 261 (IV) Affected AHs 6 6 7 7 0 8 0 0 34 TLO population APs 19 22 26 27 0 31 0 0 125 AHs 20 14 21 26 0 14 0 0 95 Total* APs 78 56 86 108 0 58 0 0 386 Data source: surveys of IAs and DIs on sites (May 2020). * The number of AHs and APs in this table are those affected by PLA and TLO.

2.3.2. Summary of Affected Vulnerable Groups 30. The vulnerable groups refer to poverty-stricken population, minimum living allowance households, disabled and the female-headed households. 31. According to preliminary survey among affected population, 10 HHs of vulnerable groups have been identified by PMOs and IAs, see details in table 2-14. All of them will be affected by permanent land acquisition, however the land and income impacts will not be significant for them. Table 2-14: Summary of Vulnerable Groups

In which, Total VG Total minimum County Village poverty female- AHs disabled living HHs APs stricken headed allowance Miaoshi Community 4 0 0 0 1 1 3 Longshan Xiche Community 5 0 0 1 0 1 3 Longtou Community 5 0 0 0 1 1 3 Xima Community 1 0 0 0 0 0 Longwu Village 3 0 0 2 0 2 5 Jishou Taiping 2 0 0 1 1 2 Qingming 2 0 0 1 0 1 2 Community Huangjin Village 2 0 0 0 0 0 0 Hangji Village 5 0 0 0 0 0 0 Baojing Hangsha Village 6 0 0 0 0 0 0 Lvdong Village 1 0 0 0 0 0 0 fenghuang Xionglong Village 19 1 2 0 0 3 10 Sicheng Village 3 0 0 0 0 0 0 Yongshun Xincheng Community 3 0 0 0 0 0 0 Total 61 1 2 5 2 10 28 Data source: surveys of IAs and DIs on sites (May 2020).

2.3.3. Summary of Affected Ethnic Minorities

32. The total population of Xixiangxi Miao and Tujian Anthonomus Prefecture consists of 80.3% ethnic minority population, even with a higher EM proportion in the rural area. On basis of the preliminary survey, all the people affected by PLA are EM. See details in table 2-15. Table 2-15: Summary of Ethnic Minorities Affected by PLA In which, County/ Community/ Villager Affected Population Tujia SN Town Miao City Village Group AHs APs AHs APs AHs APs Miaoshi 1 Miao’ertan 2nd 9 38 0 0 9 38 Community Longshan Xiche 2 Xichehe 4th 5 21 4 17 1 4 Community 4 Subtotal 14 59 4 17 10 42 Xima 5 Majing’ao 5th 1 4 1 4 0 0 Community Longwu 6 Yilue 3rd 3 13 3 13 0 0 JIshou Village 7 Taiping Taiping 3rd 2 9 2 9 0 0 Qingming 8 Danqing 1st 2 8 2 8 0 0 Community 9 Subtotal 8 34 8 34 0 0

In which, County/ Community/ Villager Affected Population Tujia SN Town Miao City Village Group AHs APs AHs APs AHs APs Huangjin 10 Banghai 2 9 2 9 0 0 Village Hangji 11 Hangji 5 21 5 21 0 0 Village Baojing Lvdongshan Hangsha 12 Hangsha 6 26 6 26 0 0 Village Lvdong 13 Lvdong 1 4 1 4 0 0 Village 14 Subtotal 14 60 14 60 0 0 Xionglong 15 Fenghuang Shanjiang Laojiazhai 19 81 19 81 0 0 Village Sicheng 16 Lingxi Sicheng 3 13 0 0 3 13 Village Yongshun Xincheng 17 Furong Shuaidong 3 14 0 0 3 14 Community 18 Subtotal 6 27 0 0 6 27 Total 5 10 13 13 61 261 45 192 16 69 Data source: surveys of IAs and DIs on sites (May 2020).

3. Socioeconomic Profiles of Project Area and Affected Population

3.1 Socioeconomic Profiles of Affected Areas

3.1.1 Socioeconomic Profile of Xiangxi Autonomous Prefecture

33. Xiangxi Tujia and Miao Autonomous Prefecture, with the capital stationed in Jishou City, is one of the 14 prefectural-level divisions in Hunan Province and located in the northwest of Hunan Province. In 2019, the Xiangxi Prefecture achieved a GDP of CNY 70.571 billion yuan. Calculated by the permanent resident population, the per capita GDP of the prefecture is CNY 26,691 yuan. 34. By the end of 2019, the resident population of Xiangxi Prefecture was 2,638,300 with 1,259,800 urban population and 1,378,500 rural population. The urbanization rate was 47.75%, up 1.21 percentage points than that of last year. In the whole prefecture, 30,400 people were born in the whole year, with a birth rate of 9.93‰; and 13,500 people died, with a death rate of 5.53‰. The annual natural population growth rate was 4.4‰. 35. In 2019, the per capita disposable income of the residents of the Xiangxi Prefecture reached CNY 16,934 yuan. Among them, the per capita disposable income of urban residents was CNY 26,756 yuan, and the per capita disposable income of rural residents was CNY 10,046 yuan. The per capita living expenditure of the residents in the Xiangxi Prefecture was CNY 13,663 yuan. Among them, the per capita living expenditure of urban residents was CNY 17,936 yuan, and the per capita living expenditure of rural residents was CNY 10,667 yuan. The proportion of food consumption expenditure to the total consumption expenditure (Engel coefficient ) was 28.2%. The per capita living area of urban residents in the prefecture was 49.2 square meters, and the per capita living area of rural residents was 44.9 square meters. 36. The number of urban employed persons of the Xiangxi Prefecture increased by 27,000. By the end of the year, the urban registered unemployment rate was 2.95%, and 11,600 unemployed people were re-employed. A total of 2,518,100 people participated in basic medical insurance in urban and rural areas, with a rate of joining insurance of 97.54%. The number of urban employees covered by the basic medical insurance reached 182,700, including 134,300 working staff and 48,400 retirees. The number of urban employees covered by the basic endowment insurance reached 170,000, including 90,000 on-post staff and 80,000 retirees. The number of employees covered by the industrial injury insurance reached 237,500, the number of workers covered by the maternity insurance reached 132,300, and the number of workers covered by the unemployment insurance reached 165,200. A total of 1,407,500 people were registered in the new type rural social endowment insurance. 37. In the whole year of 2019, a total of 36,000 urban residents received minimum subsistence allowances, with a total fund of CNY 169 million yuan in Xiangxi Prefecture. And a total of 156,500 rural residents received minimum subsistence allowances, with a total fund of CNY 409 million yuan. 38. By the end of 2019, there were 165,000 registered poverty-stricken families in Xiangxi Prefecture, reducing the poverty-stricken population by 89,500 throughout the year. A total of 5.766 billion yuan was invested in poverty alleviation, bringing the poverty incidence down to 0.65%, 3.74 percentage points lower than that of the previous year. 39. According to the sixth national population census in 2010, in the permanent resident population of Xiangxi Tujia and Miao Autonomous Prefecture, the ethnic minority population was 1,967,096, accounting for 77.21%. The Tujia population was 1,089,301, accounting for 42.75%; and the Miao population was 863,141, accounting for 33.88%.

3.1.2 Socioeconomic Profile of Project Counties and Cities

40. The main socioeconomic indicators of the 8 counties and cities in project area are shown in Table 3-1. Table 3-1 Basic socioeconomic Situation of Each City and County of the Project (2018) GDP Annual per capita Total population Per capita GDP City and county (ten thousand disposable income of (ten thousand) (yuan) yuan) rural residents (yuan) Luxi County 29.32 562760 19194 7518 Fenghuang County 32.99 777398 23565 9142 Huayuan County 29.76 673729 22639 7859 Baojing County 29.66 520926 17563 8658 Guzhang County 13.40 250190 18671 6932 Yongshun County 44.64 649822 14557 7168 Longshan County 49.28 786620 15962 8494 Jishou City 34.77 1534070 44121 9720 Average of Xiangxi / / 21824 8273 Prefecture Average of Hunan Province / / 49558 12936 Data source: statistical bulletin and statistical yearbook of cities and counties in 2019.

3.1.3 Socioeconomic Profile of Affected Towns and Villages

41. See the socioeconomic profile of project towns in table 3-2. Table 3-2：Basic socioeconomic Situation of Project Towns (2019) Arable Per capita annual Forestry County Town HHs Pupation Land disposable income（Yuan, Land（mu）（mu） in 2019） Miao’ertan 7618 30533 13125 252975 10256 Longshan Xichehe 3934 14141 12660 236850 9656 Majing’ao 6500 29000 24607 7246 8500 Yilue 1780 8000 9181 6602 6800 Jishou Taiping 4281 14766 16810 9826 6500 Danqing 4300 19000 25632 9625 6000 Baojing Lvdongshan 3621 14916 25655.5 265505 10500 Fenghuang Shanjiang 3500 17800 17913 102838 6120 Lingxi 45736 45736 66754.4 11095.62 16000 Yongshun Furong 10568 32765 43614 251366 7280 Data source: local PMOs and Governments of Project Towns. 42. See the socioeconomic profile of project towns in table 3-3. Table 3-3：Basic Socioeconomic Situation of Project Villages (2019) Arable Forestry Per capita annual County Village HHs Pupation Land Land disposable income（Yuan, （mu）（mu） in 2019） Miaoshi 856 2526 1856 9240 11568 Community Longshan Longtou 1182 4221 2568 5205 11456 Community Xiche Community 570 1605 852 13110 10258 Xima Community 445 2200 4100 1455 9000 Longwu Village 525 2000 1254 1022 7000 Jishou Taiping Village 519 2014 4500 1123 6800 Qingming 471 1885 5200 1200 6500 Community Huangjin Village 821 3383 5074.5 47362 12000 Hangji Village 537 2214 5092.2 39852 10000 Baojing Hangsha Village 391 1611 2899.8 24165 11000 Lvdong Village 318 1312 1836.8 20992 10000 Fenghuang Xionglong Village 100 678 1267 3746 5430 Sicheng Village 596 893 5595 56418 7120 Yongshun Xincheng 913 3781 4923 29141 7798 Community Data source: local PMOs and Governments of Project Towns.

3.2 Sampling Survey Analysis of Affected Households

3.2.1 Socio-Economic Conditions of the AHs

43. In order to learn the basic socioeconomic profile of the project's affected population, a local survey team engaged by RP-DI conducted socioeconomic surveys on the AHs in project area in April and May 2020. A total of 42 AHs and 169 people were sampled and surveyed, accounting for 68.9% and 64.8% of the total households and persons affected by PLA, respectively (see details in Table 3-4). With the assistance of PMOs, IAs and the cadres of affected towns and villages, the local survey team conducted a questionnaire survey on the sampled households. Table 3-4：Distribution of Sample HHs in Project Towns Sampled for Sampling Affected Population SN County/City Town socioeconomic survey Rates AHs APs AHs APs AHs APs 1 Miao’ertan 9 38 5 21 55.6% 55.3% Longshan 2 Xichehe 5 21 5 14 100 % 66.7% 3 Majing’ao 1 4 1 4 100% 100% 4 Yilue 3 13 3 13 100% 100% Jishou 5 Taiping 2 9 2 9 100% 100% 6 Danqing 2 8 2 8 100% 100% 7 Baojing Lvdongshan 14 60 8 32 57.1% 53.3% 8 Fenghuang Shanjiang 19 81 10 41 52.6% 50.6% 9 Lingxi 3 13 3 13 100% 100% Yongshun 10 Furong 3 14 3 14 100% 100% Total 5 10 61 261 42 169 68.9% 64.8% Source: Local survey team.

(i) Ethnic and gender composition

44. Among the 42 sample households, the total population and labor force is 169 people and 115 persons, respectively. The average family population is about 4.02 persons; the number of women is 83 people, accounting for 49.1% of the total population; all of them are Miao or Tujia people. (ii) Age structure

45. Among the 169 people in 42 sampled HHs, 51 were minors aged 15 and below, accounting for 30.2% of the total; 32 people aged 16 to 40, accounting for 18.9%; 60 people aged between 41 and 60, accounting for 35.5%; 26 people aged 61 or above, accounting for 15.4%. See Table 3-5 for details. (iii) Educational level

46. Among the 118 people aged 16 and above in sampled HHs, 4 people did not go to school, accounting for 3.4%; 35 people with primary education, accounting for 29.7%; 68 with junior middle school education, accounting for 57.6%; 7 with senior secondary school/technical secondary school education, accounting for 5.9%; and 4 with junior college, bachelor degree or above, accounting for 3.4%. See Table 3-5 for details. Table 3-5： Demographic Profile of the Population in Sampled Households Male Female Total Item No. Percent No. Percent No. Percent Age ≤15 years 26 30.2% 25 30.1% 51 30.2% 16-40 years 18 20.9% 14 16.9% 32 18.9% 41-60 years 30 34.9% 30 36.1% 60 35.5% ≥61 years 12 14.0% 14 16.9% 26 15.4% Subtotal 86 100% 83 100% 169 100% Educational level (>16 years old)

Male Female Total Item No. Percent No. Percent No. Percent did not go to school 2 3.3% 2 3.4% 4 3.4% Primary school or below 17 28.3% 18 31.0% 35 29.7% Junior high school 34 56.7% 34 58.6% 68 57.6% Senior high school / secondary technical school 4 6.7% 3 5.2% 7 5.9% Junior college or above 3 5.0% 1 1.7% 4 3.4% Subtotal 60 100% 58 100% 118 100% Source: Local survey team. (iv) House size

47. Among the 42 sample households, the housing structure is mainly brick-concrete and brick-wood, of which 37 HHs have the brick-concrete structure (accounting for 88.1%), 5 HHs have brick-wood structure (accounting for 11.9%).Total housing area of 8,232 m2, with an average household housing area of 233 ㎡ and per capita housing area of 48.7 ㎡. (v) Land resources

48. Among the 42 sample households, the total area of contracted farmland is 156 mu, with an average household contracted farmland of 3.7 mu and per capita contracted arable land of 0.92 mu. The land types are mainly paddy land and dry land, where paddy, wheat, corn and potato mainly planted, with an annual comprehensive income of about 1,100 yuan per mu. (vi) Household properties

49. Among the 42 sample households, each household, in average, has 3.74 mobile phones, 1.55 color TVs, 1.02 computers, 2.5 electric fans, 0.95 refrigerators, 0.76 air conditioners, 0.88 washing machines, 1.48 bicycles, 2.02 electric cars/motorcycles, and 0.59 cars. In terms of the property owned by these HHs, the living standard of the affected households is basically in the medium level in project area. (vii) Household income and expenditure

50. According to the statistical analysis of 42 sample households with 169 people, the average per capita income of the affected households was 11,032.7 yuan, and the average per capita annual expenditure of the affected households was 9,277.91 yuan, including 1,572.4 yuan for the per capita production and operation expenses. The per capita disposable income of sample households is 9,277.9 yuan. The income and expenditure of sample HHs are shown in Table 3-6. Table 3-6： Income and Expenditure of Sample Households Average per Per capita Percent Items Sub items household (yuan) (yuan) (%) Wages Income 6844.1 1700.9 15.4% Operational income 23551.0 5852.9 53.1% In which, 20327.1 5051.7 45.8% agricultural operation Non-agricultural operation 3223.9 801.2 7.3% Property income 611.2 151.9 1.4% Household Transfer-payment incomes 12956.2 3219.9 29.2% income In which, remittances from 8758.2 2176.6 19.7% migrant workers Policy-related subsidies 851.8 211.7 1.9% Social Insurance incomes 1567.3 389.5 3.5% Other transfer incomes 1778.8 442.1 4.0% Other incomes 431.0 107.1 1.0% Subtotal 44393.4 11032.7 100% Consumption expenditures 25379.8 6307.4 68.0% Household Production and operation costs 6327.0 1572.4 16.9% expenditure Property Expenditure 86.9 21.6 0.2%

Average per Per capita Percent Items Sub items household (yuan) (yuan) (%) Transfer expenditures 366.6 91.1 1.0% Asset purchase expenditure 3012.2 748.6 8.1% Other expenditures 2160.0 536.8 5.8% Subtotal 37332.5 9277.9 100% Per capita disposable income3 9460.3 Source: local survey team.

3.2.2 Expected Resettlement Modes and Measures

51. The local survey team surveyed the resettlement willingness of sample affected households. See Table 3-7 for details. Table 3-7：Expected Resettlement Modes of the Households Affected by PLA Expected Resettlement Modes（HHs） Sample Town HHs Cash Social Crop Skills Local Migrant Commercial compensation security restructuring training employment Work operations Longshan 10 10 10 5 7 6 3 4 Jishou 8 8 8 5 5 5 4 5 Baojing 8 8 8 4 5 5 3 4 Fenghuan 10 10 10 5 6 5 4 2 g Yongshun 6 6 6 4 3 3 2 2 Total 42 42 42 23 26 24 16 17 61.9 38.1 Percentage 100% 100% 54.8% 57.1% 40.5% % % Source: local survey team.

3.3 Gender Analysis

52. Among the 261 people permanently affected by PLA, 127 are women, accounting for 48.7%. 53. This project is categorized as effective gender mainstreaming. So a separate Gender Action Plan prepared for the Project will ensure gender mainstreaming at the implementation stage. ADB’s gender and development policy is a key strategy for promoting gender equality and mainstreaming. The PRC government also attaches great importance to gender equality and women’s development, and takes gender equality as a basic state policy. The local survey team has conducted a detailed gender analysis on affected women as a reference for resettlement implementation. See Table 3-8. 54. At the design stage, particular attention will be paid to women’s needs so that they can benefit more from the Project, such as public facilities and services, livelihood restoration, skills training and job opportunities. Table 3-8 Gender Analysis Part A—Gender analysis of women in the project area 1. Legal rights of According to laws of the PRC, women have equal legal rights with men, though women some women are not fully aware of this. 2. Social status of Local women have relatively good social status. All key matters of a family are women determined by the couple through discussion. Men are considered the backbone of families, and attend the important village meetings. However, women can influence men when they make decisions at meetings. 3. Title to land and Women have the same title as men. Like other parts of PRC, in the project area, properties when a daughter is married, her land will remain in her mother’s family and she can only share the land owned by her husband’s family since the household

3 Disposable income= Household income - Production and operation costs

contract responsibility system was implemented in 1982. If LA, HD or resettlement is involved, women will have equal rights to compensation. 4. Right to collective Women have equal rights. properties 5. Living and gender There is no restriction on gender role. However, women do housework and role appropriate farm work mainly in rural areas, while men mostly do farm work or work outside. 6. Contribution to Women’s income is from farming and household sideline operations mainly, household income equally contributing to household income. 7. Family status Women have an equal voice in decision-making; when men are away for work, women make decisions themselves in many aspects. 8. Educational level Boys and girls enjoy equal opportunities in receiving education, and as long as children study hard, their parents would do their best to support their school education. 9. Health Women’s health condition is quite good and there is no significant difference in nutrition level compared to men; however, medical expenses are rising and have become a significant burden for some households, and women may suffer more. 10. Village and Women are represented in all village committees. In addition, women have a government agencies good informal network in the village and the village group. Women participate in the election of the village committee, and have the right to elect and be elected. 11. Overall evaluation Women enjoy a good status in the project area, and there is no restriction on and key risks gender role. B—Gender analysis of women during resettlement Questions on Gender issue potential Impact of the Project Mitigation measures concern/risks 1. Land, Are women Men and women have equal rights to (1) Cash properties and deprived of land or compensation for land acquisition and compensation right to properties or have livelihood restoration; the project will not (2) Livelihood compensation no right to have any significantly adverse impact on restoration measures compensation? women. 2. Production Are women All AHs, comprising women as well as (1) Women as well as and income affected even men, will lose part of land, and the AHs will men will receive restoration more seriously, lose part of income only. Compensation compensation fees for after land and receive less fees will be used at the AHs’ discretion. land acquisition; (2) At acquisition assistance? Only seriously affected households have least 40% of trainees to change their income sources. In of skills training will be addition to cash compensation, the AHs women; (3) During will be assisted in restoring income construction, women through auxiliary measures (e.g., priority in will obtain at least employment during construction, skills 30% of unskilled jobs. training and subsequent support). 3. Increase of Have women a The project will not lead to gender Monitoring and gender heavier burden or inequalities. reporting inequalities fewer opportunities? 4. Social Is the social The project will not affect the social No impacts network network damaged? network seriously. system 5. Impact on Are three serious The project will not affect the villages Providing assistance health / health or social seriously in terms of health. Some together with the civil increase of problems due to seriously affected households and affairs department social resettlement vulnerable groups will be faced with problems (violence, AIDS difficulties. propagation, etc.)?

4. Legal and Policy Framework

4.1 Laws, Regulations and Policies on Land Acquisition and Resettlement

55. The RP preparation of this project and its implementation will be strictly accordance with relevant laws and regulations of the People’s Republic of China, Hunan Province and Xiangxi Autonomous Prefecture, as well as the ADB’s SPS requirements for involuntary resettlement. The laws, regulations and policies related to land acquisition and resettlement of the project are shown in Table 4-1. 56. The Land Administration Law of the People’s Republic of China was amended on August 26, 2019 and took effect on January 1, 2020. Any new regulations and policies enacted in accordance with the amended Land Administration Law will be incorporated into the updated RP prior to the commencement of land requisition and resettlement activities of this project. Table 4-1: Summary of Relevant Laws, Policies and Regulations

Levels Contents of Regulations Effective Date Land Administration Law of the People’s Republic of China January 1, 2020 Property Law of the People’s Republic of China October 1, 2007 Decision of the State Council on Deepening the Reform and October 21, 2004 Rigidly Enforcing Land Administration (SC [2004] No.28) Notice of the State Council on Issues Related to August 31, 2006 Strengthening Land Regulation and Control (SC [2006] No. 31) State and Notice on Providing Guidelines on Employment Training and April 10, 2006 Ministries of Social Security Work for Land-expropriated Farmers (NS Central [2006] No.29) Government Guidelines on Improving Compensation and Resettlement November 3, 2004 Systems for Land Acquisition (MLR [2004] No.238) Notice on Issues Concerning Effective Implementation of April 28, 2007 Social Security Work for Land-expropriated Farmers (MOLSS [2006] No .14) Notice of the Ministry of Land and Resources on Further June 26, 2010 Improving the Management of Land Acquisition (MLR [2010] No.96) Notice of the People's Government of Hunan Province on the May 8, 2018 Adjustment of Compensation Standards for Land Acquisition in Hunan Province (Hunan Government [2018] No.5) Measures for the Implementation of the Land Administration March 31, 2012 Law of the People's Republic of China in Hunan Province (Revision) Opinions of the People's Government of Hunan Province on February 15, 2005 Deepening the Reform and Rigidly Enforcing Land Administration (Hunan Government [2005] No.4) The General Office of the People's Government of Hunan July 24, 2007 Province Forwarded the Notice of the Provincial Department Hunan of Labor and Social Security on Providing Guidelines on Province Employment Training and Social Security Work for Land- expropriated Farmers (Hunan Government Office [2007] No.35) Notice on Printing and Distributing (Hunan Society Rescue Letter [2009] No.1) Notice of the Department of Civil Affairs of Hunan Province January 10, 2014 and Hunan Provincial Department of Finance on the Establishment of the Guidance Standard System of Minimum Subsistence Allowances in Urban and Rural Areas (Hunan Government [2014] No.2)

Levels Contents of Regulations Effective Date Opinions on Effective Implementation of Social Security Work May 6, 2014 for Land-expropriated Farmers (Hunan Government Office [2014] No.31) Notice of the General Office of the People's Government of November 7, 2016 Hunan Province on Effective Implementation of Social Security Work for Land-expropriated Farmers (Hunan Government Office [2016] No.80) Decision of the People's Government of Hunan Province on May 17, 2019 the Revision of Measures for the Implementation of Small-sum Guaranteed April 10, 2019 Loan for Employment Promotion in Hunan Province (Hunan Government Office [2009] No.34) Measures for Compensation and Resettlement of Collective March 19, 2019 Land Acquisition and House Demolition in Xiangxi Autonomous Prefecture (Xiangxi Government [2019] No.5) Implementation Rules of Interim Measures for the September 27, 2016 Administration of Public Welfare Posts in Xiangxi Autonomous XiangXi Prefecture Prefecture Implementation Plan of Social Security Work for Land- expropriated Farmers in Xiangxi Autonomous Prefecture (Xiangxi Government Office [2017] No.2) Interim Measures for the Administration of Public Welfare February 14, 2014 Posts in Xiangxi Autonomous Prefecture (Xiangxi Government Office [2014] No.5) Implementation Plan of Social Security Work for Land- March 28, 2017 expropriated Farmers in Jishou City Measures for Compensation of Collective Land Acquisition, April 8, 2017 Demolition and Resettlement in Jishou City (Jishou Government [2017] No.11) Notice of the Office of the People's Government of Guzhang July 15, 2020 County on the Implementation of the Standard for Allocation of Compensation of Land Acquisition in Guzhang County (Guzhang Government Office [2010] No.8) Notice of the People's Government of Guzhang County on the August 9, 2018 Implementation of Social Security Work for Land-expropriated Farmers (Guzhang Government [2018] No.6) Measures for the Implementation of Social Security Work for January 24, 2019 Land-expropriated Farmers in Baojing City (Baojing Government Office [2019] No.1) Measures for Dividing the Comprehensive Premium Area of July 13, 2018 Project Land Acquisition in Luxi County (Luxi Government [2018] Cities and No.16) Counties Notice of the People's Government of Fenghuang County on June 27, 2018 the Adjustment of the Compensation Standard for Land Acquisition and Demolition in Fenghuang County (Fenghuang Government [2018] No.19) Compensation and Resettlement Plan for Land Acquisition July 9, 2013 and Demolition of Small Town Construction in Yongshun County (Yongshun Government [2013] No.12) Measures for Compensation and Resettlement of Collective September 14, 2016 Land Acquisition and House Demolition in Longshan County (Longshan Government [2016] No.50) Supplementary Opinions on Measures for Compensation and July 16, 2017 Resettlement for Collective Land Acquisition and House Demolition in Longshan County (Longshan Government [2017] No.44) Measures for the Implementation of Social Security for Land- June 2, 2017 expropriated Farmers in Huayuan County (Huayuan Government [2017] No.7) ADB’s Safeguard Policy Statement - Safeguard June 2009 ADB requirements 2: Involuntary resettlement

4.2 ADB Policy on Involuntary Resettlement

57. ADB’s policies on involuntary resettlement aim to (1) avoid involuntary resettlement wherever possible; (2) to minimize the involuntary resettlement impacts by exploring project and design alternatives; (3) to improve, or at least restore, the living standards of all displaced persons to pre-project levels; and (4) to improve the standards of living of the displaced poor and other vulnerable groups. 58. Involuntary resettlement, as an important part in the RP, must be in line with the basic principles as following: (i) Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning through a survey and/or census of displaced persons, including a gender analysis, specifically related to resettlement impacts and risks. (ii) Carry out meaningful consultations with affected persons, host communities, and concerned nongovernmental organizations. Inform all displaced persons of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs. Pay particular attention to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensure their participation in consultations. Establish a grievance redress mechanism to receive and facilitate resolution of the affected persons’ concerns. Support the social and cultural institutions of displaced persons and their host population. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase. (iii) Improve or at least restore, the livelihoods of all displaced persons through (i) land- based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible. (iv) Provide physically and economically displaced persons with needed assistance, including the following: (i) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required. (v) Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards. In rural areas provide them with legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing. (vi) Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status. (vii) Ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of nonland assets.

(viii) Prepare a resettlement plan elaborating on displaced persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. (ix) Disclose a draft resettlement plan, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders. (x) Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of project’s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation. (xi) Pay compensation and provide other resettlement entitlements before physical or economic relocation. Implement the resettlement plan under close supervision throughout project implementation. (xii) Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and whether the objectives of the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports.

4.3 Differences Between the ADB’s Policies and Domestic Policies as well as Solutions

59. Key gaps between ADB SPS and PRC’s system and local practice as well as gap filling measures are identified as presented in Table 4-2 below.

Table 4-1: Comparative Analysis of PRC’s System and ADB Safeguard Policy Statement as well as Measures Taken in the RP

Legal Provisions and Local Practice; and Differences ADB SPS Measures in the RP compared to ADB SPS Policy Principle 1: Screen the project early on to identify Management Regulations for Construction Project Land Use The resettlement plan and due diligence has been past, present, and future involuntary resettlement impacts Pre-examination (Decree No.42 of MLR) requires to screen the undertaken to identify all involuntary resettlement and risks. Determine the scope of resettlement planning area and type of the land to be provided for the project before impacts and risks, including identification of issues through a survey and/or census of displaced persons, approving the FSR or checking the project proposal. of gender and vulnerable group. including a gender analysis, specifically related to Before land acquisition, local LRB conducts detailed resettlement impacts and risks. measurement survey (DMS). Before house demolition, the house demolition agency conducts detailed measurement survey. PRC regulations do not assess past impacts. There is no specific legal provision to include analysis of gender and vulnerability in resettlement planning. However, in line with local government policies and program, special needs and measures for women and vulnerable group can be identified and assessed. In particular, identification of vulnerable group and support measures can be developed based on the (i) Five- Guarantee Households and (ii) Minimum Living Guarantee System. Please see Policy Principle 5 for more details. Policy Principle 2: Carry out meaningful consultations with At national level, Land Administration Law of the People’s The RP includes (a) adequate provisions of affected persons, host communities, and concerned Republic of China, State Council's Decision on Deepening consultations, including with the poor and nongovernment organizations. Inform all displaced persons of Reform and Managing Strictly Land (the State Council made vulnerable groups; (b) documentation of the their entitlements and resettlement options. Ensure their [2004]28), Guidelines on Improving the System of Land consultation and information disclosure; (c) participation in planning, implementation, and monitoring and Acquisition Compensation and Resettlement (the Ministry of grievance redress mechanism. evaluation of resettlement programs. Land and Resources made [2004] number 238), and Pay particular attention to the needs of vulnerable Regulations on the Compensation of Houses on State-owned groups, especially those below the poverty line, the landless, Land and Compensation (2011) have similar requirements on the elderly, women and children, and Indigenous Peoples, consultation and participation. In the province, relevant and those without legal title to land, and ensure their regulations and policies also require consultation, participation participation in consultations. and information disclosure throughout the land acquisition and Establish a grievance redress mechanism to receive resettlement procedures. and facilitate resolution of the affected persons’ concerns. Although there are consultation and participation activities Support the social and cultural institutions of displaced conducted by local government, only some government’s persons and their host population. procedural documents are documented. To improve the Where involuntary resettlement impacts and risks are documentation, all activities need to be properly documented. highly complex and sensitive, compensation and resettlement As per law, a grievance redress mechanism is established at the decisions should be preceded by a social preparation phase. local government where farmers can first raise their concerns with the village collective or bring their grievances through the legal system directly. However, the documentation system is not adequate. In line with local government programs, the needs of vulnerable groups affected by any project can be identified and assessed based on the (i) Five-Guarantee Households and (ii) Minimum Living Guarantee System. In practice, local village committee, civil affairs bureau, social security bureau and other government

Legal Provisions and Local Practice; and Differences ADB SPS Measures in the RP compared to ADB SPS agencies pay attention to the needs of the poor and vulnerable groups. Policy Principle 3: Improve, or at least restore, the Land Administration Law [2019] requires that for collective land The RP includes adequate measures of: (i) livelihoods of all displaced persons through (i) land-based compensation, the provincial government needs to formulate and compensation based on replacement costs; (ii) resettlement strategies when affected livelihoods are land publish district comprehensive land prices for Land Acquisition, relocation of affected structures; and (iii) livelihood based where possible or cash compensation at replacement and social security budget should be considered. restoration. value for land when the loss of land does not undermine State Council [2004] number 28 states that (1) where the project livelihoods, (ii) prompt replacement of assets with access to concerned generates profits the people displaced can use the assets of equal or higher value, (iii) prompt compensation at land as investment to have a right to share in those profits; (2) full replacement cost for assets that cannot be restored, and within a planned urban area, improvement of employment (iv) additional revenues and services through benefit sharing system and social security to safeguard AP’s lives. (3) out of a schemes where possible. planned urban area, land resettlement, employment Policy Principle 4: Provide physically and economically resettlement, or displacement resettlement shall be displaced persons with needed assistance, including the implemented (4) carry out employment trainings. following: (i) if there is relocation, secured tenure to relocation Ministry of Land and Resources [2004] 238 and relevant land, better housing at resettlement sites with comparable provincial policies require that (1) Agricultural production access to employment and production opportunities, resettlement; (2) re-employment resettlement; (3) using the land integration of resettled persons economically and socially into as share of the project; and (4) provision of replacement land. their host communities, and extension of project benefits to Compensation rates for affected assets are administratively host communities; (ii) transitional support and development determined through application of prescribed valuation assistance, such as land development, credit facilities, processes. training, or employment opportunities; and (iii) civic infrastructure and community services, as required. Policy Principle 5: Improve the standards of living of the As per legal provisions, poor and vulnerable groups are defined Identification of vulnerable groups has been made; displaced poor and other vulnerable groups, including as those (i) who fall within the f ive-guarantee households; and and the RP includes the measures for vulnerable women, to at least national minimum standards. In rural areas (ii) eligible for the Minimum Living Guarantee System. group. provide them with legal and affordable access to land and The local village/community committee, civil affairs bureau, resources, and in urban areas provide them with appropriate social security bureau and other agencies pay attention to the income sources and legal and affordable access to adequate needs of the poor and vulnerable groups: a) Five-Guarantee housing. program provide production and living assistance (e.g. food, clothing, fuel, education and burial expenses to targeted vulnerable people (the elderly, weak, widowed and disabled members who are unable to work and have no means of living, or whose households lack labor a rural production cooperative would); b) Those eligible for the Minimum Living Guarantee System are provided with living subsidy each month; c) Other assistance - urgent cash assistance if the HHs have serious illness in addition to the subsidy paid under rural cooperative medical care system; cash or in-kind assistance for the women headed HHs provided by the women’s federation; priority given by the village committee to be included in the endowment insurance system for the farmers affected by LA. Regulations on the House Demolition and Compensation on State-owned Land (2011) states that: If the residential houses of any individuals are to be demolished and they meet the conditions for affordable housing, the concerned city and county

Legal Provisions and Local Practice; and Differences ADB SPS Measures in the RP compared to ADB SPS people's governments shall give priority to providing affordable housing to such persons. According to the Regulations to Solve the Housing Difficulties for the Low Income HHs issued by State Council [GF 2007, No 24], affordable housing and low-rent housing should be provided to the households who have housing difficulties. The demolished HHs can apply for the affordable housing and low-rent housing. Principle 6: Develop procedures in a transparent, consistent, Not relevant as the project does not involve land N/A and equitable manner if land acquisition is through negotiated acquisition through this means. settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status. Policy Principle 7: Ensure that displaced persons without Based on the Regulations on the Demolition and The RP provides compensation for all affected titles to land or any recognizable legal rights to land are Compensation of Houses on State-owned Land (2011), the persons regardless of legal ownership of land or eligible for resettlement assistance and compensation for loss illegal houses and temporary structures which were constructed assets. of non-land assets. after the approval period will not be compensated. As good practice, (for households who are not eligible for compensation for houses at replacement value) the history or reason why the structure has no certification/license and their socio-economic conditions and vulnerability will be assessed by the local government and concerned bureaus to determine the necessary assistance that can be provided to them to ensure that they will be able to restore or will not be worse-off. According to the Regulations to Solve the Housing Difficulties for the Low Income HHs issued by State Council [GF 2007, No 24], affordable housing and low-rent housing should be provided to the households who have housing difficulties. The demolished HHs can apply for the affordable housing and low-rent housing. Policy Principle 8: Prepare a resettlement plan (RP) Except for large-scale water sector projects, there are no RP has been prepared for the project elaborating elaborating on displaced persons’ entitlements, the income specific requirements to prepare a resettlement plan which is on affected persons’ entitlements, income and and livelihood restoration strategy, institutional arrangements, similar to the RP required by ADB. livelihood restoration measures, institutional monitoring and reporting framework, budget, and time-bound arrangements, monitoring and reporting implementation schedule. framework, budget, and time-bound Policy Principle 9: Disclose a draft resettlement plan, implementation schedule. including documentation of the consultation process in a The RP will be disclosed to affected timely manner, before project appraisal, in an accessible villages/communities and affected people. place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders. Policy Principle 10: Conceive and execute involuntary Refer to Article 12 of No. 28 Decree, the total resettlement The RP includes full costs of LAR, which are resettlement as part of a development project or program. cost should be included in the total project cost. All included in the overall project cost. Include the full costs of resettlement in the presentation of compensation and administrative costs are included. project’s costs and benefits. For a project with significant Decree 29 issued in 2006 states land compensation and involuntary resettlement impacts, consider implementing the resettlement should ensure that the living standards and

Legal Provisions and Local Practice; and Differences ADB SPS Measures in the RP compared to ADB SPS involuntary resettlement component of the project as a stand- sustainability of the livelihood of the land-loss farmers are alone operation. ensured; and that vocational training and social security programs should be properly implemented for land-loss farmers. Any shortfall in the resettlement budget should be provided by the local government. Policy Principle 11: Pay compensation and provide other Regulations generally require compensation and other The includes measures ensuring that APs receive resettlement entitlements before physical or economic financial forms of resettlement assistance to be paid before their compensation and entitlement before displacement. Implement the resettlement plan under close physical or economic displacement. displacement. supervision throughout project implementation. Local government is responsible for supervising throughout the project implementation period, but only focused on if the AHs have received the full compensation Policy Principle 12: Monitor and assess resettlement Except for large-scale water projects, there are no Coordination mechanism between the PMO and outcomes, their impacts on the standards of living of requirements to monitor and evaluate outcomes, including concerned LAR implementing agencies have been displaced persons, and whether the objectives of the impacts on standards of living of displaced persons. established in the RP to properly monitor and resettlement plan have been achieved by taking into account Local government is responsible for supervising supervise LAR activities. The enhanced the baseline conditions and the results of resettlement throughout the project implementation period however, information sharing will include the disclosure of monitoring. Disclose monitoring reports. monitoring reports are not disclosed monitoring reports. Monitoring reports will be disclosed in project areas.

4.4 LAR Principles for this Project

60. According to the above policy framework, the principles of resettlement and compensation for land acquisition of this project are formulated as follows: ➢ Community engagement and their suggestions that can improve the APs’ living standard and livelihoods should be adopted; ➢ Compensation and rehabilitation programs should improve the APs’ living standard or at least restore it to the pre-project level; ➢ APs should be meaningfully consulted and should have opportunities to participate in planning and implementing resettlement programs; ➢ Affected properties shall be compensated at full replacement cost; ➢ Land acquisition should be conducted after compensation has been fully paid; ➢ Identification of APs: the formal cut-off date for the identification of APs is the date of publication of the announcement of LAR. After this date, the APs should not build, rebuild or expand their properties; should not change the uses of their properties and land; should not lease their land, lease, sell or purchase their properties; and any person that moves in after this date should not qualify as an AP. 61. According to the socioeconomic research and analysis as well as the provisions of the legal framework, in combination with the actual situation in Xiangxi Prefecture, various compensation standards have been formulated. Before the project land acquisition (land use) is implemented, the EA/IA will review and confirm in the updated RP whether the compensation standards applicable to the project land acquisition (land use) have been adjusted and updated; if adjusted, the new standard will not be lower than the compensation standard recorded in this RP.

4.5 Cut-off Date of Eligibility for Compensation and Resettlement

62. According to the scope of the project determined in the feasibility study report, the preliminary cut-off date for the compensation and resettlement eligibility is May 31, 2020; which has been disclosed to the affected persons during inventory of losses and socioeconomic survey on sites. The final official cut-off date will be announced by the Natural Resources Bureaus in the project counties and city. After the cut-off date is formally disclosed, APs shall not increase the physical quantities on the land to be acquired or used in the project area, or construct production buildings or facilities on the farmland, or transfer the land. Any person whose Hukou is transferred in after the final cut-off date will not be eligible for the compensation.

4.6 Compensation and Subsidy Standards

4.6.1 Compensation Standards for Permanent Land Acquisition 63. According to Land Administration Law of the People’s Republic of China, Measures for the Implementation of the Land Administration Law of the People's Republic of China in Hunan Province (Revision), and Notice of the People's Government of Hunan Province on the Adjustment of Compensation Standards for Land Acquisition in Hunan Province (Hunan Government Doc [2018] No.5), for acquiring paddy fields ,1.2 times of the basic standard shall be applied; the acquisition of cultivated land (except paddy fields), grassland (except other grasslands), rural roads, reservoirs, water level of ponds, ditches, farming land, riser of terrace and construction land shall be carried out according to the basic standards; for acquiring unused land, 0.6 times of the basic standard shall be applied; the

acquisition of garden land or forest land shall be carried out according to the corresponding coefficient of land type. 64. Table 4-3 indicates the LA compensation standard which is an integration standard with both land compensation fee and resettlement subsidy. If the standards for land acquisition are updated prior to announcement of PLA, the new standards for land acquisition will apply to the project during RP updating and implementation. Table 4-3: Compensation Standards for Permanent Land Acquisition

Compensation Coefficient of Land Types Standards City and (yuan/mu) Prefecture County Paddy non- Unused Area field irriga Garden Forest land Area I Area II ted land land land Jishou City 67200 N/A 1.2 1 0.8 0.8 0.6 Luxi County 52100 45500 1.2 1 1 0.8 0.6 Fenghuang 1.2 1 0.6 62400 52000 1 0.8 County Huayuan 1.2 1 0.6 57600 48000 1 0.8 Xiangxi County Baojing 1.2 1 0.6 Autonomous 51000 45500 1 0.8 Prefecture County Guzhang 1.2 1 0.6 52100 46800 0.8 0.8 County Yongshun 1.2 1 0.6 52100 46800 1 0.8 County Longshan 1.2 1 0.6 52100 46800 1 0.8 County Source: Notice of the People's Government of Hunan Province on the Adjustment of Compensation Standards for Land Acquisition in Hunan Province (Hunan Government [2018] No.5) Table 4-4: Compensation Standards for Permanent Land Acquisition City and Compensation Area County Area I Area II Area All the villages and townships in Jishou City belong to Area I. The project involved: Pinglang Village, Xinxi Village, Aizhai Community, Dehang Jishou City N/A Village, Taiping Village, Longwu Village, Xima Community, Qingming Community, Zhaiyang Village, Shuguang Village, Qinfeng Village Xixi Town, Tanxi Town, Dalan Town, Heshui Town, Luxi Xinglongchang Town, Baiyangxi Wuxi Town, Pushi Town County Township, Shiliuping Township, Jiefangyan Township,Xiaozhang Township

City and Compensation Area County Area I Area II Area Heku Community of Heku Town where the Town Government is located, Lianglin Village of Lianglin Township, Duoxi Community of LaErShan Town, General Barracks Community of Shanjiang Town, Shangma Community of Machong Village, Luochaojing Village of Luochaojing Town, Heping Community of Ala Ying Town, Liaojiaqiao Fenghuang Community of Liaojiaqiao Town, Yanbanjing Other villages County Community of Qiangongping Town, Xinyang Village of Xinyang Town, Chatian Community of Chatian Town, Huangluozhai Village of Linfeng Township, Shuitian Village of Shuidatian Township, Xintianlong Community of Tuojiang Town, Mujiangping Community of Mujiangping Town, Deshengying Community of Jixin Town, Sangongqiao Village of Ganziping Town Huayuan Original Huayuan Town Area and Xingnongyuan Other townships and villages County Community Huajing Village of Qianling Town, Sifangcheng 12 villages and towns including Village, Lashui Village, Dayuepo Community and Qianling Town (villages outside Eryuepo Community, Shashuijing Community, the urban planning area), Maogou Fengzhengping Community, Chaoyang Town, Fuxing Town, Shuitianhe Baojing Community, Xiquexi Community (namely the Town, Hulu Town, Bi’er Town, County original Zhenfeng Village, Shefeng Village, Qingshuiping Town, Wanmipo Guoyuan Village), Zhuziping Community, Part of Town, Lvdongshan Town, Purong the land of Tubi Village of Weizhulu Community Town, Yangchao Township, (included in the urban planning area) etc. Changtanhe Township Qifeng Lake Village, Luoyixi Village, Chaye Except for 10 villages in Area I, Guzhang Village, Qiecha Village, Heitan Village, Longtan the remaining 93 villages in County Village, Guyang Village, Ganziping Village, Guzhang County all belong to Nanshan Village, Changtan Village (10 in total) Area II Yongshun All 23 townships in Yongshun County are in Area I County Min'an Sub-district Office, Huatang Sub-district Longshan Office, Shigao Sub-district Office, Xinglong Sub- Other rural townships County district Office, Liye Town Source: Natural Resources Bureau of each project city and county (April 2020).

65. Compensation analysis: as indicated as Table 4-5, the average annual output value (AAOV) of cultivated land of villages in the project area ranged from CNY1,050 to 4,000/mu. In the project area, the 2nd round 30-years land contract was signed around 1998, so there are remaining 8 years. Based on the land compensation of CNY 45,500/mu or 67,200/mu, at least 11 years of compensation will be paid to the AHs if it is calculated by the lowest compensation rate CNY45,000/mu divided by the highest AAOV, CNY4,000/mu. Hence, the compensation for land is higher than the remaining outputs of the land. 66. Distribution ratio: Where a rural collective economic organization cannot adjust the contracted land to offset the land losses of affected farmer HHs, no less than 75% of the land compensation fees shall be paid to the farmer HHs affected by PLA. 67. Compensation for young crops will be directly and fully paid to affected HHs, see the rates in Table 4-5. Table 4-5: Compensation Standards for Young Crops

Compensation Type of Land Standard (yuan/mu) Remarks Professional 2000 Unplanted, but already preliminarily invested vegetable field 4000 Planted, but not harvested Paddy field 1700 Unplanted, but already preliminarily invested

Compensation Type of Land Standard (yuan/mu) Remarks 2900 Planted, but not harvested non-irrigated 1050 Unplanted, but already preliminarily invested land 2050 Planted, but not harvested Non-artificial afforestation (20% to 100% compensation 2000 based on canopy density, coverage and forest land type) Artificial afforestation (20% to 100% compensation Forest Land 3500 based on canopy density, coverage and forest land type) Economic forest (20% to 100% compensation based 4500 on canopy density, coverage and forest land type) Source: Measures for Compensation and Resettlement of Collective Land Acquisition and House Demolition in Xiangxi Autonomous Prefecture (Xiangxi Government [2019] No.5) 4.6.2 Compensation Standards for Temporary Land Occupation 68. For the young crops affected by the temporary land occupation, the compensation is calculated according to the annual output value and the occupied time. If it is occupied for one year, a year’s compensation for annual output value will be paid to the AHs. If it is occupied for two years, two years' compensation for annual output value shall be paid. The occupation of land is usually within one year. The land reclamation fee is included in the comprehensive unit price of the civil works and is not regarded as a separate item of resettlement budget. The compensation standards for the temporary land occupation are same as these for the young crops, as shown in table 4-5. 4.6.3 Subsidy Standards for Endowment Insurance Premium of Land-expropriated Farmers 69. According to the Implementation Scheme of Social Security Work for Land- expropriated Farmers in Xiangxi Autonomous Prefecture (Xiangxi Government Office [2017] No.2), the land-expropriated farmers who meet the conditions of participating in relevant social insurances can voluntarily choose to participate in the basic endowment insurance for urban workers or the endowment insurance for both urban and rural residents, and the government and collective economy organization provide insurance premium subsidies for land-expropriated farmers. The land-expropriated farmers voluntarily choose not to participate in urban workers basic endowment insurance or social endowment insurance for urban and rural residents, and those who do not meet the conditions for participation in the insurance will not be eligible the insurance premium subsidies. The subsidy standards are as follows: Table 4-6: Subsidy Standards for Endowment Insurance Premium of Land-expropriated Farmers Subsidy Accepted Item Eligibility Unit Subsidy Years Standards accounts Subsidy of (i) Entitled to the Yuan/ 60% of the The farmers whose Personal endow- rural land perso average land is expropriated social ment contractual n annual and above the age of insurance insurance management salary of 60 (including 60) for accounts premium right, the on-post males and 55 for land- registered staff in the (including 55) for expro- agricultural; (ii) province in females, will enjoy 15 priated household capita last years for the payment farmers contracted year ×12% subsidy. Those men farmland is less × subsidy aged 45 to 59 and than 0.3 mu after years women aged 40 to 54 land acquisition will enjoy 10 years for according to law the payment subsidy.

Subsidy Accepted Item Eligibility Unit Subsidy Years Standards accounts Those men aged 16 to 44 and women aged 16 to 39 will enjoy 5 years for the payment subsidy. Source: Implementation Plan of Social Security Work for Land-expropriated Farmers in Xiangxi Autonomous Prefecture (Xiangxi Government Office [2017] No.2) 4.6.4 Compensation Standards for Ground Attachments 70. The compensation standards for ground attachments will be based on the replacement costs. As other compensation fees, the compensation fees for ground attachments will be paid directly to the affected households or entities. See details in Table 4-7. Table 4-7: Compensation Standards for Ground Attachments Compensation Class Subclass Unit Standards Remarks Poles and Wires Cement pole Stick 600 Including equipment over 8 meters on the pole, carriage expense Cement pole Stick 45 Including equipment below 8 meters on the pole, carriage expense Wood pole Stick 170 Terrace Cement terrace Square meter 80 Concrete Square meter 50 terrace Plain soil Square meter 20 terrace Road Concrete road Square meter 450 Includes part of steel bar, including leveling fee Cement Square meter 100 pavement Bituminous Square meter 40 pavement Macadam Square meter 25 Flat surface, pavement including leveling fee Vegetable Steel frame Square meter 120 greenhouse greenhouse Wooden stand Square meter 50 greenhouse Bamboo frame Square meter 30 greenhouse Grave Soil grave Mound 2500 Relocation and Grave with Mound 3000-3500* removal expenses of gravestone, but 3000-3500* grave (yuan) without wreath (based on the size of the gravestone) Grave with Mound 4500-11000 gravestone and 4500-11000 wreath (based on the size of the gravestone)

Source: Measures for Compensation and Resettlement of Collective Land Acquisition and House Demolition in Xiangxi Autonomous Prefecture (Xiangxi Government [2019] No.5)

4.6.5 Standards for Taxes and Fees Related to LA 71. See Table 4-8 for the standards of tax and fees related to PLA. Table 4-8: Standards for Land Taxes and Other Related Fees

Tax items Unit Standards Receiver Police Sources Measures of Hunan Province for Farmland National Implementing Provisional occupation Yuan/mu 14666 Tax Bureau Regulations of the People's Republic tax of China on Farmland Utilization Tax 66000 (paddy Notice on the Administrative

Land field, medium) Measures for Collection and Use of Department reclamation Yuan/mu 38000 (non- Cultivated Land Reclamation Fees in of Natural fee irrigated land, Hunan Province (Hunan Government Resources medium) Office〔2019〕No.38) Notice on Adjustment of the Policies Fees of Related to the Collection and using newly- Department Management of the Fees for added Yuan/mu 9334 of Finance Compensated Use of Newly-added construction Construction Land (Hunan Finance land and Economics〔2018〕No.42) 6667 (arbor Implementation Measures for Forest forest) Collection and Use of Forest vegetation 4002 Department Yuan/mu Vegetation Recovery Fees in recovery (shrubbery) of Forestry Hunan Province (Hunan Finance and fees 2001 (suitable Economics〔2018〕No.44) land for forest) Social Implementation Plan of Social Ministry of security fees Security Work for Land-expropriated Resources for land- Yuan/mu 33350 Farmers in Xiangxi Autonomous and Social expropriated Prefecture (Xiangxi Government Security farmers Office [2017] No.2) Note: if there is any difference in the relevant fees of each project in the counties and cities, the actual fees shall prevail.

4.7 Entitlement Matrix

72. The entitlement matrix for PLA and TLO is developed according to the relevant policies, regulation and compensation analysis in this section, and will be provided to the affected villager groups and AHs, as presented in Table 4-9. Anticipated rates for subsidies/compensation for LURT and LUPRI are described in frameworks for relevant land uses.

Table 4-9: Entitlement Matrix Entitled Compensation Rates / Impact Type Impact Scope Compensation and Restoration Policies People/agencies Assistance Fund 1. Cash Compensation Cash compensation will be paid to all households affected by PLA on basis of latest annual average output value (AAOV) in project area. Compensation for land acquisition includes land compensation and resettlement subsidy. The specific distribution scheme will be discussed and decided by the villagers and or their representatives through democratic Land compensation: see procedures, however the proportion paid to AHs shall not be Table 4-3 less than 75%. Green crop The compensation for young crops and ground attachments compensation: see Table will be paid directly to the owners. 4-4. 98.59 mu of Cash Compensation will be provided for affected villager Subsidy standards for Permanent collective land groups and HHs in a full and timely manner. endowment insurance Land will be 56 AHs with 216 2. Endowment insurance Premium subsidy for land- premium of land- Acquisition permanently APs expropriated farmers expropriated farmers: (PLA) acquired. The local government will provide insurance premium 60% of the average

subsidies to eligible farmers, for whom (i) the per capita annual salary of on-post cultivated land is less than 0.3 mu after land acquisition and staff in the province last (ii) application for basic endowment insurance of urban year ×12% × subsidy workers or endowment insurance for urban and rural residents years is applied after LA. 3. Livelihood Restoration Assistance Detailed livelihood restoration programs, such as agricultural development measures, employment promotion (supports of employment opportunities, skill training, special care of vulnerable groups, etc.), will be implemented to mitigate the impacts of PLA and restore AHs’ livelihood. The APs will obtain cash compensation for temporary land on 9 mu of basis of the latest annual average output value for one year in Compensation standards Temporary land collective land 34 AHs with 125 project area. for temporary land occupation will be occupied persons Land reclamation fee will be paid by contractors to institutes occupation: see Table 4- (TLO) temporarily. or households who are responsible to restore the land to its 4. original status and quality.

Entitled Compensation Rates / Impact Type Impact Scope Compensation and Restoration Policies People/agencies Assistance Fund All APs will receive cash compensations at replacement cost Ground Compensation standards: Some Asset owner on basis of applicable latest compensation policy in project attachments see Table 4-6. area. Special assistance measures for vulnerable groups include: (i) The local PMOs, Bureau of Agriculture and Rural Affairs and Human Resources and Social Security Bureau of project counties and city will preferentially provide agricultural and non-agricultural skills training to enhance their capacity; (ii) The local PMOs and IAs will give priority to provide the employment opportunities created by the project to the Contingencies among Permanent land vulnerable groups; LAR impacts on project resettlement acquisition and 10 AHs with 28 (iii) The local PMOs and relevant departments of project vulnerable budget will be used for temporary land persons counties and city will help the affected vulnerable groups to groups supporting vulnerable occupation achieve market-oriented employment in neighboring areas groups where necessary. through employment assistance programs; and (iv) The local PMOs and relevant government departments in project counties and city will help the vulnerable groups to apply public welfare and/or assistance programs, e.g. minimum living security allowance, temporary difficulty aid, medical assistance, as needed. More details will be included in the updated RP.

5. Livelihood Restoration and Assistance Measures

5.1 Cash Compensation to Households Slightly Affected by Land Acquisition

73. The villager groups and HHs that are affected not sigificantly (with a loss of less than 10% of household income) will receive cash compensation in strict accordance with the applicable regulations and compensation policies in RP. The specific standards are shown in table 4-3. 74. The distribution of land compensation shall be decided by the village committee through full consultation and democratic decision-making among villagers or their representatives. The distribution scheme shall be implemented after being approved and publicized by township government. Most villager hope that the compensation of contracted land will be paid fully and directly to the affected HHs, since the villager group will not make any land adjustment after LA. However, some other villager groups may follow democratic procedures and local practices to discuss the collective retention rate of land compensation, but will not exceed 25%, which is in line with relevant regulations of Hunan Provincial Government. During RP preparation, the retention schemes have been extensively consulted with affected villager groups, who explained that the final schemes can only be discussed and decided by representatives of villagers during RP implementation stage. In addition, the retention to be held collectively by villager groups will be utilized mainly for social security premium of AHs, public welfares and/or public infrastructures in affected villages. For the non-contracted land managed by rural collectives, compensation for land and ground attachments will be paid directly to the village collectives to subsidize land- expropriated farmers to participate in endowment insurance, invest the public infrastructure and/or for public welfare affairs in villager groups. 75. After land compensation received, the affected HHs will carry out various livelihood restoration activities with the assistance of local government departments. Based on public consultations during RP preparation, most AHs are planning to use the land compensation to do some income generation activities upon their own interesting, willingness and capacity, such as small business, transport running, catering, airbnb, e-commerce, etc., or to finance children’s education for human resource investment and/or house decoration for living environment improvement. 76. The HHs with slight LA impacts will continue to farm on the remaining land and use land compensation for income-generating activities, such as small businesses and logistics. Following facts/trends have been observed during public consultations and/or assessments, including: (i) land compensation rates are more than 11 times of annual land output values of land to be acquired, which is longer than remaining 8 years of land contracting duration of AHs; (ii) most of the labor in AHs work in cities as migrant workers who contribute over half of HH income; (iii) AHs do not rely on land- based and agricultural incomes since the rapid industrialization and urbanization; (iv) AHs have strong confidence on income and livelihood restoration given the minor impacts and adequate land compensation; and（v）DDRs of completed LAR (see appendix 4 and 5 in RP) indicated that HHs affected by LA in project areas can quickly restore their income and livelihood after LA. If AHs want to cultivate more land after LA, they can obtain it through land use rights transfer (LURT) system. Annual land rent for LURT is normally 300yuan/mu to 700yuan/mu in project areas. The LA compensation rates are adequate for AHs to lease land as needed. Therefore, the livelihoods of these families, which are less affected by land acquisition, can easily be restored after land acquisition compensation.

5.2 Income Restoration Measures for HHs Severely Affected by Land Acquisition

77. Additional income restoration and livelihood support measures, such as agricultural development, skills training, non-agricultural employment and social security, will be provided in addition to cash compensation for severely affected HHs (where household income losses exceed 10% and remaining land is less than 0.3 mu per capita, 34 HH with 151 persons identified as severely affected during project preparation stage). All these measures are compliant with the existing livelihood development strategies of the local governments as well as rural revitalization schemes under the proposed project. As indicated in para. 65, land compensation rates are more than 11 times of annual land output values of land to be acquired, which is longer than remaining 8 years of land contracting duration of AHs. It reveals that land compensation can fully make up the land-related losses of AHs after LA, and it is expected that AHs will not face income decrease after LA compensation paid. Therefore, the income restoration and assistance measures focus on the economic transformation and sustainable livelihood in a long run. These measures will be implemented after LA agreements signed and LA compensation paid, see the schedule details in table 9-1. 78. These livelihood and income recovery measures are primarily targeted at severely affected villages and HHs, but all affected villager groups and HHs are eligible to participate and benefit from them. 5.2.1 Supportive Measures for Agricultural Development 79. Most of the affected HHs still have some land left after PLA (see table 2-5), or can obtain additional land nearby through LURT. Therefore, the local PMOs of project counties and city will coordinate with local agriculture and rural affairs bureaus to provide support for affected HHs to continue and improve agricultural production and operation activities, and give them the priorities to participate in locally-featured agricultural development components under this project. All the APs affected by the project, including Output 1, will enjoy the priorities to participate in and benefit from Output 2 and 3. Local PMOs and IAs will be responsible for coordinating with relevant stakeholders to ensure APs get the participation and benefit sharing opportunities from the project including Output 2 and 3. The implementation progress and achievements will be monitored and reported to Xiangxi PMO and ADB by external monitor. See Table 5-1 for details.

Table 5-1: Supportive Measures for Agricultural Development of Affected Farmers

Number of AHs Number of APs Means of participation/benefit Output Subprojects Construction contents expected to expected to of Affected HHs participate participate Introduction project R&D Centre Parent field, observation nursery, open nursery, water and fertilizer 1. Give priority to the supply of integrated irrigation system high-quality characteristic fruit 2.1 Xiangxi prefectural Seedling raising shed, wing-style seedlings; kiwi fruit and citrus nursery stock breeding bed frame 2. Give priority to providing 16 64 seedlings research and Purchase of organic fertilizer and technical guidance and training on breeding Base other production materials, planting characteristic fruits agricultural machinery purchase, tending and management, Construction of ancillary works of Output II: Local- material yard, wall, gate, etc. featured ecological R&D Centre agricultural and Germplasm nursery， construction forestry products of quality improvement in inefficient 1. Give priority to the supply of developed. tea garden, ancient tea tree high-quality tea seedlings; protection and construction, tea 2. Give priority to the supply of garden working path organic fertilizer; Seedling shed 3. Give priority to providing 2.2 Baojing county New tea garden, tea garden technical guidance and training on Lvdongshan gold tea 31 128 working path tea planting, processing and industrial park Purchase of organic fertilizer and sales; other production materials, tending 4. Give priority to providing and management exhibition and sales center Construction of tea processing plant platform to promote tea and other Exhibition and sales center products Parking lot, rest kiosk, tea garden toilet Output III: Values 3.1 Guzhang county 1. Give priority to providing cold added to local local featured Characteristic agricultural products storage space; products through value agricultural products cold chain logistics project in 2. Give priority to providing cold 15 50 chains and by eco- logistics and cold chain Guzhang County chain transportation and tourism. base distribution

Number of AHs Number of APs Means of participation/benefit Output Subprojects Construction contents expected to expected to of Affected HHs participate participate 1. Give priority to providing cold 3.2 local featured Characteristic agricultural products storage space; agricultural products logistics cold chain base in 2. Give priority to providing cold 116 465 logistics and cold chain Yongshun County chain transportation and base distribution 1. Give priority to vegetable planting greenhouses 2. Give priority to providing cold Fine vegetable cultivation storage space; Intelligent greenhouse 3. Give priority to providing cold 3.3 Jishou city local Simple greenhouse chain transportation and Processing and cold chain logistics featured agricultural distribution； 10 34 products logistics and integrated warehousing 4. Give priority to purchasing cold chain base Agricultural product traceability qualified vegetable products; system Agricultural products processing 5. Give priority to providing technical guidance and training on vegetable planting, processing and sales Main works Ancillary works 1. Give priority to leasing the Equipment procurement: 3.4 Luxi county Xinnv trading booth; information management facilities, agricultural products 2. Give priority to the opportunity 10 35 logistics storage equipment, cold trading center to use warehousing and cold storage equipment, office storage equipment equipment, etc. Total 198 776 Note: AHs can participate in different subprojects and benefit from them at the same time.

5.2.2 Employment Assistance Measures

(1) Job opportunities to be created by the project

80. According to the poverty, gender and social analysis (PGSA), the project will create around 2,798 temporary jobs during construction period and 4,131 jobs during operation stage. The job positions might include workers for civil works on construction sites and for operation and maintenance of constructed facilities, security guards, cleaning personnel and other support staff. The monthly income will be more than 2,000 yuan per capita. Priority will be granted to the labor force in HHs affected by land requisition. These job opportunities are preliminarily estimated on basis of FSR. More detailed assessments will be conducted during project detailed design and RP updating stage. The proposed activities in FSR, as well as RP, EMDP, SDAP and GAP, have integrated various skills training programs and budgets. These will bridge any skill gaps between job position needs and actul status of APs as confirmed during detailed project design, RP update and implementation. 81. In addition, the affected persons can gain more income opportunities by providing materials and services for the project during construction phase. For example, some affected persons may provide surplus houses (if any) for the construction contractors as offices or accommodation for construction workers; or open grocery stands to provide food, water and other supplies to the engineering team, or provide construction materials, fittings and transport services.

(2) Public service jobs

82. The labors aged more than 50 among APs may face difficulties to find sound jobs in labor market. Therefore, the project counties and city governments will provide some public service jobs to this group, such as public affairs assistants, cleaners, doorkeepers or security guards in public buildings and facilities. According to local human resources and social security bureaus, the monthly salary is normally around 1,500 yuan, in which upto 25% will be subsidized by public funds of local governments. Annually around 300 public service jobs are available in project counties and city for the groups need special employment assistance.

(3) Market-oriented employment opportunities

83. Benefiting by the rapid socio-economic development in project counties and city in recent years, more and more enterprises are attracted and invest in project area, resulting in many skilled and unskilled job opportunities. According to local human resources and social security bureaus, more than 600 new jobs are created each year, with a monthly salary of more than 2,500 yuan. 84. In order to implement the above measures of employment assistance, local PMOs will coordinate with the local human resources and social security bureau to: (i) collect the labor demand and supply information, (ii) disclose and give publicity to labor employment information in affected villager groups, and (iii) provide employment assistance to affected population during RP implementation. According to local human resources and social security bureaus, it is expected that 140 persons (mainly the labor force, accounting for 65% of the APs) among 216 people affected by PLA will need and be able to obtain employment assistance. 5.2.3 Skills Training Measures 85. In order to implement the aforementioned agricultural development and employment promotion measures smoothly, it is critical to improve the labor skills of the affected population through skills training. This project design also includes a large

number of skills training arrangements, and the farmers affected by land acquisition will be given preferential rights to participate in these training. 86. The skills training will cover the follows:

(1) Agricultural skills training

➢ Technical training and practical skills training for the cultivation, planting, harvesting, storage and transportation, processing, intelligent management and other links of locally-featured products (such as citrus, kiwifruit, grape, tea, Chinese herbal medicine, etc.) ➢ Green agricultural products management and certification knowledge training; ➢ Sales skills training for locally-featured products (such as citrus, kiwifruit, grape, tea, Chinese herbal medicine, etc.), including e-commerce skills training. (2) Non-agricultural skills training

➢ Sanitary works, public environmental greening, parking management and other community public service job training; ➢ Horticultural technology, sewing and weaving training for women, hairdressing and beauty skills training; ➢ Maintenance skills training for motorcycle, car, electrical equipment; ➢ Automobile decoration, cleaning equipment management training; ➢ Catering service, domestic service training; ➢ Transportation, marketing and business training, etc. 87. In order to improve the pertinence and effectiveness of skills training, the local PMOs will coordinate with local human resources and social security bureaus to survey and collect the training needs of the affected population, integrate the training resources and formulate detailed training plan so as to conduct free skills training for APs during RP implementation. These training will be financed by annual budget of human resources development and employment assistance of project counties and city. According to local human resources and social security bureaus, it is expected that 140 persons (mainly the labor force, accounting for 65% of the APs) among 216 people affected by PLA will need and be able to obtain free skills training. These skills training programs will be implemented from Feb. 2022 to Dec. 2025, along with the LAR activities under the project. See details in table 9-2. 5.2.4 Social Security 88. According to Notice of the Office of the People’s Government of Xiangxi Autonomous Prefecture on Printing and Distributing Implementation Plan of Social Security Work for Land-expropriated Farmers in Xiangxi Autonomous Prefecture (Xiangxi Government Office [2017] No.2) and the implementation regulations of project counties and city government, these registered land-expropriated farmers who are (i) over the age of 16 and (ii)enjoy the second round rural collective land contracting and management rights as well as (iii) have less than 0.3 mu of cultivated land per capita after land acquisition, will be eligible to obtain endowment insurance premium subsidy provided by the local government. 89. Taking Baojing County as an example, the endowment insurance premium subsidy standard of eligible land-expropriated farmers is 60% of the average annual salary of on-post staff in Hunan province last year ×12% × subsidy years; when land- expropriated farmers pay one-time urban workers basic endowment insurance premium, the term of subsidy will be 5 years (e.g. by December 31, 2018, the subsidy standard was based on the average annual salary of the employed workers in Hunan province in 2017, the calculation formula was: the amount of payment subsidy = 5,500

yuan ×60%×12%×60 months = 23,760 yuan per capita). The endowment insurance premium subsidy will be transferred to the insured person’s individual pension account. 90. With the endowment insurance subsidy, the affected people have two options to enroll in different endowment pension systems： ➢ (i) Basic Endowment Insurance for Urban and Rural Residents, for which the individual premium includes 14 levels (100, 200, 300, 400, 500, 600, 700, 800, 900, 1,000, 1,500, 2,000, 2,500 and 3,000 yuan per annum). Although more than 95% of affected people have been covered by this insurance system, the premium levels are usually quite low (mostly 100-500 yuan per annum). The affected people can use the government subsidy to increase their premium levels voluntarily, so as to receive better pensions when get aged. The pension that can be received after reaching the retirement age will include: (a) basic pension: at present, the minimum standard of basic pension for urban and rural residents in Hunan Province is 103 yuan per person per month; (b) monthly individual account pension: accumulative amount of individual account (including interest) divided by 139.

➢ (ii) Endowment Insurance for Urban Workers. The eligible land-expropriated farmers who opt to participate in the basic endowment insurance for urban workers as flexible employment personnel, will pay the basic endowment insurance premium at one time, then establish the endowment insurance relationship, and will enjoy the insurance premium subsidy according to the standards stipulated above. The base of one-time payment of insurance premiums is 60% or 100% (optional) of the average monthly wages of on-post staff in Hunan province last year ×payment ratio (20%) × months when land- expropriated farmers pay the premiums. The starting time of one-time payment shall not be earlier than the time when the land-expropriated farmer has reached the age of 16, and ends when land-expropriated farmers participate in the insurance, while the period of payment shall not exceed 15 years. The eligible land-expropriated farmers will receive the same pensions as the urban retired workers after they have paid the fees in full and met the requirements for pension disbursement. The pension will consist of basic pension and one 139th of the individual endowment insurance account balance (averagely 3,000 yuan/month per person in 2019 in Hunan Province). 91. The local PMOs of project counties and city will coordinate local Human Resources and Social Security Bureau to explain more details of social insurance programs for affected people and implement these programs after land acquisition in a timely manner. According to local human resources and social security bureaus, it is expected that 33 persons (mainly the land-expropriated farmers, accounting for 15% of the APs) among 216 people affected by PLA will be eligible for endowment insurance premium subsidy.

5.3 Restoration Program for Temporary Land Occupation

92. For temporary occupation of land, project activities, including camping, building materials stacking or other TLO, is expected within the project boundary, it isn’t expected to have a large-scale temporary land occupation impact. As estimated by the IAs, a total of 9 mu of TLO required, affecting additional 34 AHs and 125 APs, 0.26mu per household in average. Where impact takes place outside the project boundary, the project implementing agencies will pay compensation according to corresponding compensation standards. One-off compensation will be paid for one year’s land occupation, despite the occupation period is usually no more than one year.

If the temporary land is overdue during the implementation process, the annual output value of the cultivated land shall be paid from the second year until land reclamation. 93. The IAs or contractors who occupy the land temporarily will be responsible for reclaiming the land to its original status and quality after land occupation; the local natural resources bureaus and affected villager groups/households will supervise and review the quality of land reclamation.

5.4 Supportive Measures for Affected Vulnerable Groups

94. As indicated, there are 28 vulnerable people from 10 households affected by PLA of the project. All the identified vulnerable groups of the affected population will receive assistance and support during the land acquisition process and subsequent livelihood recovery activities, mainly including: ➢ (i) The local PMOs, Bureau of Agriculture and Rural Affairs and Human Resources and Social Security Bureau of project counties and city will preferentially provide agricultural and non-agricultural skills training to enhance their capacity; ➢ (ii) The local PMOs and IAs will give priority to provide the employment opportunities created by the project to the vulnerable groups; ➢ (iii) The local PMOs and relevant departments of project counties and city will help the affected vulnerable groups to achieve market-oriented employment in neighboring areas through employment assistance programs; and ➢ (iv) The local PMOs and relevant government departments in project counties and city will help the vulnerable groups to apply public welfare and/or assistance programs, e.g. minimum living security allowance, temporary difficulty aid, medical assistance, as needed. 95. During project and RP updating and implementation, the local PMOs, implementing agencies and concerned local government departments will carefully identify vulnerable groups among APs, and then grant priorities of all kinds of restoration and assistance measures to the vulnerable groups (such as employment, skills training and other supports during implementation stage). Contingencies among project resettlement budget will be used for supporting vulnerable groups where necessary. On basis of such supportive measures, the vulnerable groups can be properly restored and their livelihoods will be effectively improved.

5.5 Supportive Measures for Women’s Development

96. In order to fully safeguard the rights and interests of women among APs during RP implementation, the following supportive measures will be implemented:

(1) Skills training based on women’s needs

97. The project will focus on the needs of women who want to be trained and employed locally. The local PMOs of project counties and city will work closely with town-level labor and employment and social insurance center to collect information on women’s needs and give priority to providing them with appropriate skills training, such as organizing special training courses for women.

(2) Priority in applying for small-sum guaranteed loan

98. According to the relevant policies of the Women's Federation of Hunan Province and XiangXi Autonomous Prefecture, if local women are willing to start business by themselves or with other partners, the Women's Federation will provide

financial support together with financial sectors. The women can apply for small-sum loans through the Women's Federation, such businesses include clothing, handicrafts, catering, etc. The loan can reach up to 100,000 yuan per person. The Women's Federations will also provide guidance on entrepreneurship to women regularly. 99. In addition to the above support, the measures designed for livelihood restoration and assistance in this RP will also prioritize women. Additional women's development measures has been developed in the Gender Development Plan (GAP) of the project.

6. Information Disclosure, Public Participation and Grievance Redress

100. In accordance with relevant policies and regulations on land acquisition and resettlement in PRC, Hunan Province and Xiangxi Prefecture, as well as the involuntary resettlement requirements in ADB’s Safeguard Policy Statement (SPS 2009), the local PMOs and IAs, with assistance of consultants, have carried out information disclosure, public participation and consultation, and established corresponding grievance redress mechanism during the preparation; and this will be continued during implementation of the project.

6.1 Methods of Information Disclosure and Public Participation

101. During the period of investigation and resettlement planning, the PMOs and project IAs, with the assistance of consultants, conducted extensive consultations with the concerned local government departments, town governments and village leaders and representatives of affected persons on the proposed project activities, design schemes, resettlement impacts, compensation entitlements and resettlement measures. 102. In accordance with the principles of effectiveness, the public participation activities take following forms:

(1) Focus group discussions

103. In total, 15 focus group discussions (FGDs) were conducted in the affected villager groups, including the normal affected persons, as well as the elderly, women and other special groups, to ensure that they account for an appropriate proportion of the interviewees.

(2) Structured questionnaire survey

104. Based on the project characteristics and impact categories under the project, the consultants designed a structured questionnaire survey to comprehensively understand APs’ socioeconomic profiles, attitude, willingness and expectation on the land acquisition and resettlement affairs induced by the project. A total of 42 AHs and 169 people were sampled and surveyed, accounting for 68.9% and 64.8% of the total households and persons affected by PLA, respectively (see details in Table 3-4).

(3) Meeting discussions and key informant interviews

105. According to the contents of public participation activities, key informants were interviewed to collect relevant information, such as village cadres, key staff of local

acquisition centers/offices, lead of local human resources and social security bureaus, staff of local civil affairs bureaus. 106. During RP update and implementation, the local PMOs and IAs will continue to carry out extensive public consultations with affected people in project area, with assistance of consultants to be recruited during implementation stage. 107. At the same time, affected people can also raise complaints, opinions and suggestions to village committees, town governments in project area, RP implementing agencies, local PMOs and external monitor. These comments and suggestions will be addressed in accordance with following grievance address mechanism (GRM) as explained in subsection 6.5.

6.2 Public Participation and Consultation During Preparation Stage

108. The project carried out a series of public participation and consultation activities via various means during RP preparation stage, including filed visits, face-to- face FGDs, virtual meetings/interviews, remote surveys, etc., despite the impacts of COVID-19 pandemic. See details in table 6-1.

Table 6-1: Public Consultation and Participation Activities in Project Preparation Stage

Person-times Main concerns and Measures incorporated in the Date Organizer Participants Purpose Key activities Male Female suggestions received project design and RP (i) Introduce the project profiles, the proposed Feasibility activities, Optimize the project scope, design study, field Minimize the impacts on income APs, village preliminary where possible to reduce the PMOs, IAs FSR- investigation, design schemes, and living, and keep project impacts of LAR; information Jan 2020 cadres, 60 50 DI preliminary and expected information and resettlement disclosure, consultation and technicians measurement impacts; (ii) policies transparent participation measures were survey explore options discussed and developed. to avoid and/or minimize the impacts of LAR. Participating in socioeconomic Draft RP was developed to survey and ensure APs’ losses can be fully resettlement compensated and their income Reps. of intention RP preparation, A few APs expressed concerns and living standards can be PMOs, IAs, RP- APs and survey; Village Feb to Mar 2020 86 83 socioeconomic about their future livelihood after effectively restored, on basis of DI government representatives survey LA socio-economic characteristics agencies expressed their of affected population in project views on the area as well as the willingness project and and expectation of APs. policy framework related to LAR The compensation rates on Consult on All participants request basis of replacement costs will land and reasonable compensation for the be paid to affected assets Cadres, and loss of land and assets can be communities/villages following Pubic compensation APs in the paid fully and timely following the latest AAVO standards PMOs, IAs, RP- consultation, rates and April 2020 affected 75 60 latest regulations and policies. issued by Hunan Provincial DI including FGD allocation plan; village Transparent payment procedures Government, and the payment and KII discuss the groups should be established and status will be subject to public procedures of disclosed in villages/communities supervision. Compensation for compensation affected by LAR. temporary land occupation will payment be compensated to the crops

Person-times Main concerns and Measures incorporated in the Date Organizer Participants Purpose Key activities Male Female suggestions received project design and RP affected in line with the policy. And, the land will be restored by the IAs afterward. GRM and external monitoring mechanism will be established to supervise and monitor the payment of compensation funds. Various income and livelihood restoration measures have APs hope specific and effective been consulted with APs and livelihood rehabilitation measures incorporated in draft RP, such Discuss the can be implemented after land as providing employment income and acquisition to ensure a opportunities, organizing skills livelihood sustainable livelihood in future; Officials and training and providing social Pubic restoration APs hope they can participate in APs in the security options and premium PMOs, IAs, RP- consultation, measures; and benefit from the project May 2020 affected 65 55 subsidies. Special and DI, consultants including FGD discuss the directly. village prioritized assistance measures and KII assistance Representatives of APs wish groups for vulnerable groups have measures to necessary special assistance can been consulted and vulnerable be provided to vulnerable groups incorporated in draft RP. A groups during RP implementation; and GRM has been developed and complaint channels should be included in draft RP to address open and smooth. any complaints and appeals from APs in a timely manner.

Figure 6-1: Field Investigation and Public Consultation Activities

6.3 Public Participation and Consultation Activities in Next Stages

109. Although public participation has been carried out in many rounds, the local PMOs and implementing agencies will continue to carry out public participation and consultation activities throughout project detailed design, RP updating and implementation stages. The public consultation and participation plan for the next phase is shown in Table 7-2. Table 7-2: Public Participation Plan During Implementation Purpose Mode Time Agencies Participants Topic Village bulletin Disclosure of Local PMOs and Disclosure of RP board, Jul 2020 All APs RP and RIB IAs and RIB villagers’ meeting

Purpose Mode Time Agencies Participants Topic Local PMO, IAs, Finding out Field DMS results town anything omitted investigation verification and Jul 2021 governments, All APs to determine the and RP update community final impacts; and consultation committees updating the RP The project Village county/city Land bulletin Announcement of governments, local acquisition board, Sept 2021 All APs land acquisition PMOs and local announcement villagers’ area, Natural Resources meeting Bureaus Land The project acquisition Village county/city Compensation compensation bulletin governments, local standard and and board, Sept 2021 All APs PMOs and local resettlement settlement, villagers’ Natural Resources measures program meeting Bureaus announcement Determination of the list of Discuss and persons eligible The project disclose (i)the for social county/city final list of insurance governments, local persons eligible for premium Villagers’ PMOs and Natural social insurance Oct 2021- subsidies; meeting Resources All APs premium subsidies Dec 2021 discussion and (many times) Bureaus and and (ii) the disclosure of Human Resources allocation scheme allocation and Social of land scheme of land Security Bureaus compensation compensation funds fees, etc. Local PMO, IAs, Discussing final Determination/ concerned local income and implementation Village government livelihood of income and meeting Oct 2021- departments, restoration All APs livelihood (many Dec 2022 town programs and restoration times) governments, participating in programs village/community their committees implementation Revenue Local PMO, IAs, Public Villagers’ 2021- recovery; town participation meeting, toward All affected compensation for governments, and during project interview, project population temporary impact external implementation etc. completion during monitoring agency construction

6.4 Women's Participation

110. During planning and preparation of the project, the PMOs and concerned local government departments have paid special attention to the role of women, their needs and expectations, and will emphasize the role of women in RP implementation. 111. In the project area, women enjoy the same rights and status as men, and play a crucial role in economic activities and housework, especially in rural areas, where most men and young women work outside and a few women stay at home for taking care of elders, children and home affairs. Therefore, in the project area, women

even show greater enthusiasm about the project than men. They not only participate actively in all stages of resettlement planning, but also play an outstanding role in the consultation about resettlement impacts and mitigation measures. All women support the Project. 112. During the social survey of the project, a certain number of women representatives were invited to participate in the survey to ensure communication and consultation with the affected women during the survey process. In the FDGs held in the affected villages, female participants account for more than 40%. In addition to expressing their positive support for the project, they also paid much attention to the correctness of the physical indicators of the survey, the rationality of the compensation standards and whether the compensation funds could be timely delivered. During the resettlement planning stage, the consultants also actively invited female representatives to collect their comments, requirements and concerns about compensation entitlements and restoration programs. The national laws and regulations guaranteed that women have equal rights and interests in land acquisition. Husband and wife enjoy together all household property after marriage, regardless of who contributed to the property and when. 113. Women also expressed their desire to participate in endowment insurance, so that after reaching certain age, their families will receive a relatively stable income. For young women, they specifically suggested that if the land would be acquired, they would like to attend skills training and get employed nearby. Some women also expressed the wishes to get some job opportunities during the implementation and O&M stages of the project. They wish they, their husbands, or other family member could get local employment opportunities. 114. More measures on women's participation and consultation are in the Gender Action Plan (GAP) of the Project.

6.5 Grievance Redress Mechanism

115. During RP implementation, the following measures will be taken to reduce grievances and appeals: (i) The implementing agencies and the local governments will conduct extensive publicity of the resettlement policies in such forms as meeting, discussion and door-to-door survey so that the APs are informed of the resettlement policies and principles, and compensation entitlements; (ii) Disclose information on land acquisition and losses, PLA agreements, compensation fee disbursement, and the resettlement agencies through mass media and bulletin boards to accept the public supervision; and (iii) Strengthen regular communication and consultation with the APs, with assistance of consultants. The implementing agencies and concerned local governments will listen to the APs’ comments and requirements carefully, conduct meaningful communication and consultation with them, help them solve difficulties and problems encountered during RP implementation, and meet their reasonable requirements where possible. 116. During RP updating and implementation, continuous attention will be paid to the participation of the APs, and an appeal mechanism will be operational. If any AP is dissatisfied with any compensation arrangement or thinks that he/she is treated unfairly or unreasonably during the resettlement, he/she may seek a solution through the appropriate procedures. 6.5.1 Grievance Redress Procedures during RP implementation 117. To ensure that APs have effective channels to file complaints on any issue associated with land acquisition and resettlement, a four-stage grievance redress mechanism (GRM) has been established during the preparation and continued for implementation of the RP:

Stage 1: If the AP is dissatisfied with the compensation and/or resettlement measures, he/she may make oral or written complaint to the community/village committee; in case of oral complaint, the community/village committee shall handle such complaint and make written records. The community/village committee shall provide solution within one week; Stage 2: If the AP is dissatisfied with the resolution of Stage 1, he/she may file the complaint to township government orally or in writing. In case of an oral complaint, the township government should make a written record. Such complaint should be solved and provided with feedback within two weeks. Stage 3: If the AP is still dissatisfied with the resolution of Stage 2, he/she may file the complaint to project county/city Natural Resources Bureau or local PMO and requires for arbitration. The result shall be made within 2 weeks. Stage 4: If the AP is still dissatisfied with the resolution of Stage 3, he/she may file the complaint to Xiangxi Prefecture Natural Resources Bureau and/or Xiangxi PMO and requires for arbitration. The final result shall be made within 2 weeks. 118. The AP may appeal to a local court in accordance with the Administrative Procedure Law of the PRC as their alternative way of grievance redress at any time. 119. APs may also complain about any aspects of resettlement, including compensation rates, etc. to Xiangxi PMO and the external monitoring and evaluation agency. Affected persons can also submit complaints to ADB which will first be handled by the project team. If an affected person is still not satisfied and believes he/she has been harmed due to non-compliance with ADB policy, s/he may submit a complaint to ADB’s Accountability Mechanism.4 120. The above grievance channels have been discussed during the RP preparation and will be further notified to the APs while distributing resettlement information booklet through meeting or otherwise, so that the APs are fully aware of their rights of complaint. 6.5.2 Agencies and Personnel for Resolution of Grievance 121. All grievance redress procedures will remain valid throughout project implementation to ensure that the APs will have a way to address related issues. The above grievance redress mechanism will be disclosed to the APs through meetings and RIB so that the APs are fully aware of their rights to file complaints. Media will also be used to improve publicity. Table 6-2 summarizes the main contact information of the persons in charge of grievance address. Table 6-2: Contact Persons in Relevant Agencies Subproject Contact Title Tel Rural Waste and Sanitation Management Facilities and Services Improved (18) Rural Domestic Sewage Treatment (7) Rural Domestic Sewage Treatment in Huayuan County Deputy Long Zuoyi General 15367228999 Zixia Lake WWTP (3000m3/d) Manager Zixia Lake Rural Domestic Sewage Treatment Rural Domestic Sewage Treatment in Longshan County Miao’ertan Town WWTP (1200m3/d) Subsection Xichehe Town WWTP (800m3/d) Li Shuchun 13787905028 Chief Longtou Community WWTP (800m3/d) Rural Domestic Sewage Treatment of the Subsection Yang Canghai 13348739918 Youshui River Chief Round-Banyue Lake Rural Domestic Sewage Zhang Deputy 18607430004 Treatment Changsheng Director

4 For further information, see: http://www.adb.org/Accountability-Mechanism

Subproject Contact Title Tel Drinking Water Source Area Conservation in Subsection Yang Canghai 13348739918 Liye Town Chief Luxi Rural Domestic Sewage Treatment Dalan Town WWTP (550m3/d) Heshui Town WWTP (550m3/d) Tan Zhijie 13739005382 Xinglongchang Town WWTP (800m3/d) Pushi Town Rural Domestic Sewage Treatment Rural Domestic Sewage Treatment in Jishou City Majing’ao Town WWTP (1000m3/d) Deputy Jilue Xiang WWTP (300m3/d) Hu Lixue Director- 15174369398 Taiping Town WWTP (300m3/d) general Danqing Town WWTP (300m3/d) Deputy Rural Domestic Sewage Treatment of the Dong Gao Jianjun Director- 15207435173 River general Rural Domestic Sewage Treatment in Guzhang County Deputy Rural Domestic Sewage Treatment of Qifeng Tian Hong Director- 18874302963 Lake general Rural Domestic Sewage Treatment in Baojing County Rural Domestic Sewage Treatment of the Liu Chengjin Director 13357238588 Lvdong Mountain Rural Domestic Sewage Treatment in Yongshun County Rural Domestic Sewage Treatment in Sicheng General Peng Zeyong 13974303616 Village Manager Rural Domestic Waste Treatment (7) Rural Domestic Waste Treatment of Zixia Lake in Huayuan County Rural Domestic Waste Treatment in Shilan Town Deputy Rural Domestic Waste Treatment in Longtan Long Zuoyi General 15367228999 Town Manager Rural Domestic Waste Treatment in Malichang Town Rural Domestic Waste Treatment in Huayuan Town Rural Domestic Waste Treatment of the Youshui River in Longshan County Rural Domestic Waste Treatment in Xichehe Town Rural Domestic Waste Treatment in Miao’ertan Town Zeng Director 17775936923 Domestic Waste Collection and Treatment Xiangsheng Equipment in Liye Town Domestic Waste Treatment of the Drinking Water Source Area in Liye Town Rural Domestic Waste Treatment in Pushi Town Rural Domestic Waste Treatment in Pushi Town Tan Zhijie 13739005382 Rural Domestic Waste Treatment in Dalan Town Rural Domestic Waste Treatment of the Dong River in Jishou City Deputy Rural Domestic Waste Treatment of the Dong Hu Lixue Director- 15174369398 River general Rural Domestic Waste Treatment of Qifeng Lake in Guzhang County Director- Rural Domestic Waste Treatment of Qifeng Lake Song Jianhong 13974335237 general Rural Domestic Waste Treatment of the Lvdong Mountain in Baoqing County Rural Domestic Waste Treatment of the Lvdong Liu Chengjin Director 13357238588 Mountain Rural Domestic Waste Treatment of Sicheng Village in Yongshun County Rural Domestic Waste Treatment of Sicheng General Peng Zeyong 13974303616 Village Manager Rural Household Toilet Reconstruction (4)

Subproject Contact Title Tel Deputy Rural Household Toilet Reconstruction around Long Zuoyi General 15367228999 Zixia Lake in Huayuan County Manager Deputy Rural Household Toilet Reconstruction along the Director of the Xu Chunyun 13508432307 Dong River in Jishou City Agricultural Reform Office Rural Household Toilet Reconstruction of the Liu Chengjin Director 13357238588 Lvdong Mountain in Baoqing County Rural Household Toilet Reconstruction of General Peng Zeyong 13974303616 Sicheng Village in Yongshun County Manager Local featured agricultural and forestry products developed. (7) Xiangxi Kiwi Fruit and Citrus Seedling Science and Technology Research and Development Peng Jimiao President 13574328858 Breeding Base Deputy Director- Construction and Transformation of Tea Tian Erwen, 13974322752 general Gardens in Lvdong Mountain in Baojing County Su Fahong 13574352511 Deputy Director Quality Improvement and Upgrading of Deputy Advantageous and Characteristic Agricultural Long Zuoyi General 15367228999 Industry Bases in Zixia Lake Area in Huayuan Manager County Featured Agricultural Logistics Cold Chain Base Deputy Chen Nenglin 15874393368 in Yongshun County Director Deputy Director- general of the Featured Agricultural Cold Chain Logistics in Zhang Fazhou county 13574377029 Guzhang County industry, IT and science bureau Production and Processing Base of Special Wu Zhiguo Manager 15174378200 Agricultural Products in Jishou City Xinnv Agricultural Products Trading Center in Deputy Jia Rui 18974399799 Luxi County Director Values added to agricultural and forestry products. (7) Ecological Corridor Construction Demonstration Zhang Jingui Section Chief 13974323599 Germplasm Bank of Rare Native Tree Species He Gang Vice President in the Wuling Mountain CPC Qifeng Lake Agriculture and Tourism Integration Jia Chunhua Committee 13907437870 Demonstration in Guzhang County Secretary Rural Tourism Demonstration in Shanjiang in Assistant Tan Shijun 13100273778 Fenghuang County Chairman Banyue Lake Agriculture and Tourism Zhang Deputy 18607430004 Integration in Longshan County Changsheng Director Agriculture and Tourism Integration in Sicheng General Peng Zeyong 13974303616 Village in Yongshun County Manager 7. Organizations and Responsibilities

7.1 Organization Structure

122. The land acquisition/use and resettlement is a wide-ranging work which requires the assistance and cooperation of various concerned departments of local governments. Therefore, a series of responsible agencies, such as local PMOs, local natural resources bureaus, project implementing agencies and the township governments in project area, will participate and assist in the implementation of land acquisition (land use) and resettlement plan. The township governments involved by

the project will be equipped with 1 to 3 key staff to assist in the land use and resettlement of the project.

Executing Agency (EA): Government of XiangXi Prefecture Xiangxi ADB Loan Project Leading Group Xiangxi Project Management Office

Implementing Agency (IA): Governments of Project External Counties and City Monitoring Local PMOs of Counties and City; PIUs in Project and Counties and City Evaluation Agency

Governments of Township (Town) in Project Affected Area

Project Affected Villages and Villager Groups

Affected Population Ground attachments Owners

Figure 7-1: Organization Chart

7.2 Institutional Responsibilities 123. The agencies responsible for the land acquisition/use and resettlement and their responsibilities are as follows: 124. ADB Loan Project Leading Group of Xiangxi Prefecture: as the executing agency, the high-level project leading group of Xiangxi People’s Government is responsible for guiding, coordinating and supervising the project preparation and implementation, including the implementation of resettlement plan. ➢ Establish the ADB Project Management Office; ➢ Organize project preparation and ADB loan application; ➢ Coordination, management, supervision and guidance of project implementation; ➢ Report the progress of project implementation to Xiangxi People’s Government and ADB; ➢ Coordinate and raise supporting funds for this project. 125. ADB Loan Project Management Office of Xiangxi Prefecture: Xiangxi PMO, as the coordination and management organization of the project and resettlement affairs, is mainly responsible for the overall management, planning, coordination and supervision of land acquisition/ use and resettlement work. The PMO of Xiangxi Prefecture is responsible for the following work: ➢ Coordination, management, supervision and services in the implementation of the project and resettlement plan;

➢ Report the progress of project implementation to Xiangxi People’s Government and ADB; ➢ Organize and carry out the preparation, update and publicity of the resettlement plan; ➢ Provide coordination and support for project technical assistance, research and training; ➢ Supervise and coordinate the implementation of land acquisition/ use and resettlement plan; ➢ Coordinate and supervise the establishment and operation of the grievance redress mechanism; ➢ Coordinate and supervise the PMO and construction units of each county and city in carrying out the internal monitoring and assessment of land acquisition and resettlement; ➢ Submit internal monitoring reports of resettlement to the ADB; ➢ Employment of external monitoring agencies for land acquisition and resettlement. 126. Governments of Project Counties and City: as the implementing agency of the project, they are responsible for the management and implementation of subprojects within their respective scope of management, as well as land acquisition/use and resettlement related to the construction content of the project. The people’s government in each district and county has set up its own project management office. 127. PMO of Project Counties and City: management, planning, coordination and supervision of land acquisition and resettlement of subprojects within each county and city, including: ➢ Coordination, management, supervision and service in the implementation of subprojects; ➢ Entrust land acquisition and resettlement implementing agencies to organize land acquisition/use and resettlement activities according to the subproject construction schedule; ➢ Organize and carry out the detailed physical quantity survey of subprojects and the statistical summary of resettlement impact data; ➢ Organize and carry out public participation and consultation on subprojects; ➢ Coordinate and supervise the signing of subproject land acquisition /use agreement and payment of compensation; ➢ Coordinates and supervise the implementation of livelihood restoration measures for affected populations of the subprojects; ➢ Carry out resettlement internal monitoring of subprojects and submit internal monitoring data and information to the PMO of Xiangxi Prefecture; ➢ Accept, coordinate and supervise the handling of appeals. 128. Project implementing agencies of Project Counties and City: the main responsibilities are to apply for land use procedures as project construction unit and owner unit, raise supporting funds for project land use, allocate land expenses, supervise the payments of land expenses, and assist in the preparation, implementation and monitoring activities of resettlement report: ➢ Go through the examination and approval procedures of Opinions on Land Preliminary Examination, Land Use Permit and Construction Permit; ➢ Raise and pay resettlement fees and monitor their usages; ➢ Coordinate and supervise the implementation of resettlement plan; ➢ Organize and carry out internal monitoring and evaluation, coordinate and cooperate with external monitoring and evaluation;

➢ Report to the PMO on the progress of land acquisition /use and resettlement, as well as the implementation and the use of funds; ➢ Participate in bidding and supervise the construction progress and quality of contractors. 129. Natural Resources Bureaus of Project Counties and City (land acquisition and resettlement implementing agencies): the main responsibilities are to coordinate and organize the implementation of land acquisition /use and resettlement within the county and city, including: ➢ Carry out preliminary review of land use; ➢ Go through the approval formalities related to land acquisition /use; ➢ Publicize and explain the policies of land acquisition /use and resettlement of the project; ➢ Organize and carry out public participation and consultation and, when necessary, hearings; ➢ Organize specialized land acquisition agencies and personnel to implement land acquisition, land-use consultation, land transfer/lease, land compensation and resettlement activities in accordance with the Resettlement Plan approved by the ADB; ➢ Sign the land acquisition and resettlement contracts/agreements with the affected persons, pay the land expenses, and report to the PMO and the project construction unit for record; ➢ Accept and handle resettlement grievances and complaints; ➢ Carry out resettlement internal monitoring of subprojects and submit data and information of resettlement internal monitoring to the PMO of the county and city. 130. Township governments where the project is located: responsible for assisting the resettlement implementing agencies to carry out land acquisition /use and resettlement work within the township, including: ➢ Assist in the publicity and explanation of the policies of land acquisition /use and resettlement of the project; ➢ Assist in carrying out public participation and consultation activities; ➢ Assist in implementing land acquisition, land-use consultation, land transfer/lease, land compensation and resettlement activities; ➢ Assist in signing the land acquisition and resettlement contracts/agreements with the affected persons and supervising the payment of land expenses; ➢ Participate in the handling of complaints and appeals in the process of resettlement; ➢ Participate in internal monitoring activities of resettlement. 131. Affected villages/community committees: their main responsibilities are to cooperate with and assist the resettlement implementing agencies in carrying out land acquisition /use and resettlement work within the village/community, including: ➢ Cooperate and assist in carrying out land acquisition /use impact survey and resettlement socioeconomic survey; ➢ Cooperate with and assist in carrying out public consultation and participation activities to publicize land acquisition /use and resettlement policies; ➢ Cooperate with and assist in carrying out agricultural and non-agricultural production resettlement and other activities; ➢ Cooperate and assist in the distribution of land compensation (subsidy) fees to affected families; ➢ Participate in the handling of complaints and appeals in the process of resettlement;

➢ Timely report the views and suggestions of migrants to the higher authorities; ➢ Cooperate and assist in carrying out internal and external monitoring and assessment activities. 132. External monitoring and evaluation agency: the PMO Xiangxi prefecture will recruit an external monitoring agency, whose main responsibilities include: ➢ Acting as an external monitoring and evaluation agency, it conducts field investigation and monitoring, and collects information and data to monitor and assess the implementation and effectiveness of all aspects of the Resettlement Plan; ➢ Investigate and assess the satisfaction of the affected persons and their attitudes, intentions, needs and recommendations regarding land acquisition /use and resettlement; ➢ Supervise the operation of information disclosure and grievance redress mechanism; ➢ Provide technical advice and guidance to the PMO and resettlement implementing agencies at all levels to ensure the effective implementation of the Resettlement Plan; ➢ Provide timely feedback on monitoring findings to the PMO and resettlement implementing agencies at all levels and provide reasonable suggestions to ensure proper compliance with ADB Safeguard Policy Statement; ➢ Timely submit the semi-annual external monitoring and evaluation reports of resettlement to project management offices at all levels and ADB; ➢ After the completion of land acquisition and resettlement, prepare and submit the completion report of the project in time.

7.3 Resettlement Agency Staffing and Facilities

133. In order to proceed the resettlement work smoothly, the project resettlement agencies at all levels will be equipped with special staff to form a smooth channel of information transmission. The resettlement agencies at all levels will be mainly composed of administrative personnel and professional and technical personnel, they all have a certain level of expertise and management quality as well as a considerable amount of work experience in land acquisition, demolition and resettlement. The staffing of the resettlement agency for this project is shown in Table 8-1. Table 7-1: Staffing of Resettlement Implementing Agencies

Organization Names Key Staff Composition ADB Loan Project Leading Group of 4 persons Government official XiangXi Prefecture PMO of XiangXi Prefecture 6 persons Civil servant, specialized persons PMO of Each County and City 3 persons/county and city District/county officials Project Implementing Unit of Each 3-5 persons/institution Administrative staff, professional County and City (Construction Unit) and technical staff Department of Natural Resources of 4 persons/county and city Civil servant, professional and Each County and City technical staff Township 3 persons/township Township cadres Each village Committee 2-3 persons/village Village cadres Design Unit 8 persons Senior engineer, engineer External Monitoring Organization (to 4-6 persons Resettlement experts and social be selected) experts

7.3.1 Equipment and Facilities 134. The project management office and the resettlement implementing agency will both make full use of existing resources and have been equipped with basic office equipment, transportation equipment and communication equipment, including office desks and chairs, computers, printers, telephones, fax machines, vehicle and other equipment. 7.3.2 Training Program for Resettlement Implementation Agency and Staff 135. During the preparation stage of the project, the resettlement experts from the ADB technical assistance team have provided training on the ADB Safeguard Policy Statement (SPS), in particular requirement 2: involuntary resettlement, to personnel from the PMO, implementing agencies, department of natural resources, township governments and other relevant units. In addition, the resettlement experts held consultations with relevant agencies and personnel to discuss key elements of the Resettlement Plan, including socioeconomic analysis, compensation policies and standards, restoration measures and plans, grievance resolution mechanisms, and internal and external monitoring. The main staff of the PMO in Xiangxi Prefecture and counties and cities participated in these training and meetings, including those who will be responsible for the implementation of the resettlement plan. 136. However, most staff are only familiar with the domestic laws and regulations on land acquisition and resettlement and have some experience in carrying out land acquisition and resettlement work in domestic projects. This is the first time for them to participate in the preparation and implementation of ADB loan projects, which have more requirements on the implementation of resettlement (see Table 4-2 for details). In addition, movement of persons may occur during the implementation of the project and the resettlement plan. As a result, the project plans to carry out more training on the implementation, management, coordination, monitoring and reporting of resettlement plans to strengthen the capacity of relevant institutions and their personnel. The details are described below. 137. Training overall objective: to train the relevant administrative staff and technical staff who are responsible for the land acquisition and resettlement work of this project, so that they can understand and master the policies and procedures related to land acquisition and resettlement to ensure compliance with the resettlement plan. 138. Training specific objectives: ➢ Land acquisition and resettlement administrative staff - conduct land requisition and resettlement training for top executives of the project to enable them to fully understand the ADB resettlement policies and related requirements for the implementation of the Resettlement Plan, and to be responsible for publicizing and popularizing the knowledge and requirements to all personnel involved in the land acquisition and demolition activities of the project. ➢ Land acquisition and resettlement technical staff – conduct training for them to understand the contents and specific requirements of the Resettlement Plan and familiarize themselves with the details of resettlement policies and restoration measures to ensure the smooth implementation of land acquisition and resettlement activities. 139. Training methods: the training of senior management personnel shall be organized and carried out by the PMO of the of Xiangxi prefecture, and resettlement experts from the project implementation consulting team and government officials from relevant departments are invited to give lectures. The training of the project resettlement staff shall be organized and carried out by the district/county PMO, and the implementation agencies of land acquisition and resettlement in each county and city shall assign personnel to guide them. 140. Training contents: include project overview and background, laws, regulations and policies related to land acquisition/use and resettlement, specific contents and requirements of the resettlement plan of the project, management and coordination, reporting procedures, financial management, monitoring and evaluation and complaint handling mechanism of land acquisition and resettlement.

141. Training time: within 1 month before the start of land acquisition/use and resettlement activities. 142. Training budget: the training funds for resettlement workers have been listed in the budget of land use and resettlement of this project, as shown in Table 10-1.

8. Budget

8.1 Land Use Budget

143. Based on the land impact of the project and the price in May 2020, the total budget for land use of the project is CNY 93.255 million yuan, including basic costs of land acquisition 6.376 million yuan, subsidy fee for LUPRI 28.659 million yuan, land transfer rental fees of LURT 39.993 million yuan, resettlement monitoring and evaluation costs 2.249 million yuan, staff training costs 0.275 million yuan, land acquisition related taxes and fees 7.186 million yuan, contingencies 8.478 million yuan. See Table 8-1 and 8-2 for details.

Table 8-1: Project Land Use Budget (by County)

SN Item 1：Longshan 2：Jishou 3：Baojing 4:Fenghuang 5:Huayuan 6:Yongshun 7:Guzhang 8:Luxi Total Percent I Basic Fees for PLA 525252 487845 2256931 1270721 0 1835353 0 0 6376102 6.8% 1.1 Compensation fees for PLA 434229 382159 1836265 1047789 0 1467304 0 0 5167746 5.5% 1.1.1 Paddy land 0 117233 502425 73890 0 487017 0 0 1180565 1.3% 1.1.2 Dry land 0 39078 725725 155752 0 837375 0 0 1757929 1.9% 1.1.3 Garden land 0 112555 0 0 0 0 0 0 112555 0.1% 1.1.4 Forestry land 0 110757 0 0 0 142912 0 0 253669 0.3% 1.1.5 Unused Land 388542 0 100485 0 0 0 0 0 489027 0.5% 1.1.6 Reserved construction land 45687 2538 507630 818147 0 0 0 0 1374002 1.5% 1.2 Compensation fees for young crops 0 26190 48400 8918 0 66233 0 0 149741 0.2% 1.2.1 Paddy land 0 5075 21750 3199 0 21083 0 0 51107 0.1% 1.2.2 Dry land 0 1435 26650 5720 0 30750 0 0 64555 0.1% 1.2.3 Garden land 0 8520 0 0 0 0 0 0 8520 0.0% 1.2.4 Forestry land 0 11160 0 0 0 14400 0 0 25560 0.0% 1.3 Compensation fees for TLU 4178 3064 5013 4456 0 8355 0 0 25065 0.0% 1.3.1 Dry land 2153 1579 2583 2296 0 4305 0 0 12915 0.0%

1.3.2 Forestry land 2025 1485 2430 2160 0 4050 0 0 12150 0.0% 1.4 Compensation fees for ground attachments 86846 76432 367253 209558 0 293461 0 0 1033549 1.1% II Subsidies for LUPRI 5879987 1306664 1306664 417127 12988741 1351894 3829530 1578048 28658655 30.7% 2.1 Paddy land 783783 174174 174174 55602 1731357 180203 510464 210349 3820105 4.1% 2.2 Dry land 1632881 362863 362863 115837 3606993 375423 1063466 438226 7958552 8.5% 2.3 Garden land 1236515 274781 274781 87719 2731429 284293 805320 331851 6026687 6.5% 2..4 Forestry land 1045044 232232 232232 74136 2308475 240271 680618 280465 5093473 5.5% 2.5 Unused Land 587837 130631 130631 41701 1298517 135152 382848 157761 2865079 3.1% 2.6 Reserved construction land 593927 131984 131984 42133 1311970 136552 386814 159396 2894760 3.1% III Rental for LURT 0 0 0 25656750 12150000 2126250 0 0 39933000 42.8% 3.1 Agriculture land 0 0 0 19005000 9000000 1575000 0 0 29580000 31.7% 3.2 Forestry land 0 0 0 5701500 2700000 472500 0 0 8874000 9.5% 3.3 Unused land 0 0 0 950250 450000 78750 0 0 1479000 1.6% IV Subtotal of Land Use Costs 6405239 1794509 3563595 27344598 25138741 5313498 3829530 1578048 74967757 80.4%

SN Item 1：Longshan 2：Jishou 3：Baojing 4:Fenghuang 5:Huayuan 6:Yongshun 7:Guzhang 8:Luxi Total Percent （No.1-3） Cost of external resettlement M&E V 192157 53835 106908 820338 754162 159405 114886 47341 2249033 2.4% （3％ of IV） Staff training fees for resettlement affairs VI 32026 8973 17818 136723 125694 26567 19148 7890 374839 0.4% （0.5％ of IV） VII Relevant Fees and Taxes 525149 609761 2626227 939584 0 2484928 0 0 7185649 7.7% 7.1 Farmland Occupation Tax 0 67170 300653 57095 0 326612 0 0 751530 0.8% 7.2 Farmland Reclamation Fee (Paddy land) 0 115500 495000 72798 0 479820 0 0 1163118 1.2% 7.3 Farmland Reclamation Fee (Dry land) 0 107540 494000 106020 0 570000 0 0 1277560 1.4% 7.4 Use Fee of Additional Construction Land 108274 65898 219349 36337 0 237737 0 0 667596 0.7% 7.5 Forest Vegetation Restoration Fee 0 16534 0 0 0 21334 0 0 37869 0.0% 7.6 Endowment Insurance for LEFs 416875 237119 1117225 667334 0 849425 0 0 3287977 3.5% VIII Subtotal of IV to VII 7154572 2467077 6314548 29241243 26018597 7984398 3963564 1633279 84777277 90.9% IX Contingency （10% of VIII） 715457 246708 631455 2924124 2601860 798440 396356 163328 8477728 9.1% X Total 7870029 2713785 6946002 32165367 28620456 8782838 4359920 1796607 93255005 100% XI Percent 8.4% 2.9% 34.5% 30.7% 9.4% 4.7% 1.9% 100%

Table 8-2: Project Land Use Budget (by Subproject) Output (I) Output (II) SN Item Subp #1 Subp #2 Subp #3 Subp #1 Subp #2 Subp #3 Subp #4 I Basic Fees for PLA 1013096.81 0 0 0 2256931 0 0 1.1 Compensation fees for PLA 816388.175 0 0 0 1836265 0 0 1.1.1 Paddy land 117232.5 0 0 0 502425 0 0 1.1.2 Dry land 39077.5 0 0 0 725725 0 0 1.1.3 Garden land 112554.525 0 0 0 0 0 0 1.1.4 Forestry land 110756.8 0 0 0 0 0 0 1.1.5 Unused Land 388542 0 0 0 100485 0 0 1.1.6 Reserved construction land 48224.85 0 0 0 507630 0 0 1.2 Compensation fees for young crops 26190 0 0 0 48400 0 0 1.2.1 Paddy land 5075 0 0 0 21750 0 0 1.2.2 Dry land 1435 0 0 0 26650 0 0 1.2.3 Garden land 8520 0 0 0 0 0 0 1.2.4 Forestry land 11160 0 0 0 0 0 0

Output (I) Output (II) SN Item Subp #1 Subp #2 Subp #3 Subp #1 Subp #2 Subp #3 Subp #4 1.3 Compensation fees for TLU 7241 0 0 0 5013 0 0 1.3.1 Dry land 3731 0 0 0 2583 0 0 1.3.2 Forestry land 3510 0 0 0 2430 0 0 1.4 Compensation fees for ground attachments 163277.635 0 0 0 367253 0 0 II Subsidies for LUPRI 11579051.5 2412302 0 0 0 2010252 0 2.1 Paddy land 1543449.6 321552 0 0 0 267960 0 2.2 Dry land 3215520 669900 0 0 0 558250 0 2.3 Garden land 2434982.4 507288 0 0 0 422740 0 2..4 Forestry land 2057932.8 428736 0 0 0 357280 0 2.5 Unused Land 1157587.2 241164 0 0 0 200970 0 2.6 Reserved construction land 1169579.52 243662.4 0 0 0 203052 0 III Rental for LURT 0 0 0 1053000 0 12150000 24603750 3.1 Agriculture land 0 0 0 780000 0 9000000 18225000 3.2 Forestry land 0 0 0 234000 0 2700000 5467500 3.3 Unused land 0 0 0 39000 0 450000 911250 Subtotal of Land Use Costs IV 12592148.3 2412302 0 1053000 2256931 14160252 24603750 （No.1-3） Cost of external resettlement M&E V 377764.45 72369.1 0 31590 67707.9 424807.56 738112.5 （3％ of IV） Staff training fees for resettlement affairs VI 62960.7417 12061.5 0 5265 11284.7 70801.26 123018.75 （0.5％ of IV） VII Relevant Fees and Taxes 1134910.38 0 0 0 2626227 0 0 7.1 Farmland Occupation Tax 67170.28 0 0 0 300653 0 0 7.2 Farmland Reclamation Fee (Paddy land) 115500 0 0 0 495000 0 0 7.3 Farmland Reclamation Fee (Dry land) 107540 0 0 0 494000 0 0 7.4 Use Fee of Additional Construction Land 174172.44 0 0 0 219349 0 0 7.5 Forest Vegetation Restoration Fee 16534.16 0 0 0 0 0 0 7.6 Endowment Insurance for LEFs 653993.5 0 0 0 1117225 0 0 VIII Subtotal of IV to VII 14167783.9 2496733 0 1089855 4962151 14655861 25464881.25 IX Contingency （10% of VIII） 1416778.39 249673 0 108986 496215 1465586.1 2546488.125 X Total 15584562.3 2746406 0 1198841 5458366 16121447 28011369.38 XI Percent 16.7% 2.9% 0% 1.3% 5.9% 17.3% 30.0%

(continued)

Output (III) SN Item Subp Subp #2 Subp #3 Subp Subp #5 Subp #6 Subp Subp #8 Subp Subp Total Percent #1 #4 #7 #9 #10 I Basic Fees for PLA 0 0 1270721 0 0 1229849 0 605504 0 0 6376102 6.8% 1.1 Compensation fees for PLA 0 0 1047789 0 0 980287 0 487017 0 0 5167746.5 5.5% 1.1.1 Paddy land 0 0 73889.97 0 0 0 0 487017.3 0 0 1180564.77 1.3% 1.1.2 Dry land 0 0 155751.8 0 0 837375 0 0 0 0 1757929.25 1.9% 1.1.3 Garden land 0 0 0 0 0 0 0 0 0 0 112554.525 0.1% 1.1.4 Forestry land 0 0 0 0 0 142912 0 0 0 0 253668.8 0.3% 1.1.5 Unused Land 0 0 0 0 0 0 0 0 0 0 489027 0.5% 1.1.6 Reserved construction land 0 0 818147.3 0 0 0 0 0 0 0 1374002.12 1.5% 1.2 Compensation fees for young crops 0 0 8918.2 0 0 45150 0 21083 0 0 149741.2 0.2% 1.2.1 Paddy land 0 0 3198.7 0 0 0 0 21083 0 0 51106.7 0.1% 1.2.2 Dry land 0 0 5719.5 0 0 30750 0 0 0 0 64554.5 0.1% 1.2.3 Garden land 0 0 0 0 0 0 0 0 0 0 8520 0.0% 1.2.4 Forestry land 0 0 0 0 0 14400 0 0 0 0 25560 0.0% 1.3 Compensation fees for TLU 0 0 4456 0 0 8355 0 0 0 0 25065 0.0% 1.3.1 Dry land 0 0 2296 0 0 4305 0 0 0 0 12915 0.0% 1.3.2 Forestry land 0 0 2160 0 0 4050 0 0 0 0 12150 0.0% Compensation fees for 1.4 0 0 209558 0 0 196057 0 97403.5 0 0 1033549.3 1.1% ground attachments II Subsidies for LUPRI 0 2522866 417127 0 9671824.9 45230.7 0 0 0 0 28658655 30.7% 2.1 Paddy land 0 336289.8 55601.7 0 1289222.55 6029.1 0 0 0 0 3820104.75 4.1% 2.2 Dry land 700603.8 115836.9 0 2685880.31 12560.63 0 0 0 0 7958551.56 8.5% 2.3 Garden land 0 530538.7 87718.55 0 2033907.83 9511.65 0 0 0 0 6026687.13 6.5% 2..4 Forestry land 0 448386.4 74135.6 0 1718963.4 8038.8 0 0 0 0 5093473 5.5% 2.5 Unused Land 0 252217.4 41701.28 0 966916.913 4521.825 0 0 0 0 2865078.56 3.1% Reserved construction 2.6 254830.3 42133.29 0 976933.935 4568.67 0 0 0 0 2894760.08 3.1% land III Rental for LURT 0 0 0 0 0 2126250 0 0 0 0 39933000 42.8% 3.1 Agriculture land 0 0 0 0 0 1575000 0 0 0 0 29580000 31.7% 3.2 Forestry land 0 0 0 0 0 472500 0 0 0 0 8874000 9.5% 3.3 Unused land 0 0 0 0 0 78750 0 0 0 0 1479000 1.6% Subtotal of Land Use Costs IV 0 2522866 1687848 0 9671824.9 3401330 0 605504 0 0 74967757 80.4% （No.1-3） Cost of external V resettlement M&E 0 75686 50635.4 0 290154.75 102040 0 18165.1 0 0 2249032.7 2.4% （3％ of IV）

Output (III) SN Item Subp Subp #2 Subp #3 Subp Subp #5 Subp #6 Subp Subp #8 Subp Subp Total Percent #1 #4 #7 #9 #10 Staff training fees for resettlement VI affairs 0 12614.3 8439.24 0 48359.125 17006.7 0 3027.52 0 0 374838.79 0.4% （0.5％ of IV） VII Relevant Fees and Taxes 0 0 939584 0 0 1588173 0 896755 0 0 7185648.6 7.7% 7.1 Farmland Occupation Tax 0 0 57094.74 0 0 219990 0 106621.8 0 0 751529.838 0.8% Farmland Reclamation Fee 7.2 0 0 72798 0 0 0 0 479820 0 0 1163118 1.2% (Paddy land) Farmland Reclamation Fee 7.3 0 0 106020 0 0 570000 0 0 0 0 1277560 1.4% (Dry land) Use Fee of Additional 7.4 0 0 36337.26 0 0 169878.8 0 67858.18 0 0 667595.682 0.7% Construction Land Forest Vegetation 7.5 0 0 0 0 0 21334.4 0 0 0 0 37868.56 0.0% Restoration Fee Endowment Insurance 7.6 0 0 667333.5 0 0 606970 0 242454.5 0 0 3287976.5 3.5% for LEFs VIII Subtotal of IV to VII 0 2611167 2686506 0 10010339 5108550 0 1523451 0 0 84777277 90.9% IX Contingency （10% of VIII） 0 261117 268651 0 1001033.9 510855 0 152345 0 0 8477727.7 9.1% X Total 0 2872283 2955157 0 11011373 5619405 0 1675796 0 0 93255005 100% XI Percent 0 % 3.1% 3.2% 0 % 11.8% 6.0% 0% 1.8% 0 0% 100%

8.2 Funds Source and Using Plan

144. The land-use funds of the project will come from the supporting funds of bureau of finance and construction unit of each county and city. The government of each county and city will make the allocation of land-use related fees for the project from 2021 to 2025. The annual fund use plan is shown in Table 8-3. Table 8-3: Tentative Plan for Use of Land-use Funds (yuan)

Year 2021 2022 2023 2024 2025 Total Percent 20% 40% 20% 10% 10% 100% Longshan 1574005.8 3148012 1574006 787002.9 787002.9 7870029 Jishou 542757 1085514 542757 271378.5 271378.5 2713785 Baojing 1389200.4 2778401 1389200 694600.2 694600.2 6946002 Fenghuang 6433073.4 12866147 6433073 3216537 3216537 32165367 Huayuan 5724091.2 11448182 5724091 2862046 2862046 28620456 Yongshun 1756567.6 3513135 1756568 878283.8 878283.8 8782838 Guzhang 871984 1743968 871984 435992 435992 4359920 Luxi 359321.4 718642.8 359321.4 179660.7 179660.7 1796607 Total 18651001 37302002 18651001 9325501 9325501 93255005

8.3 Funds Flow

145. During the implementation of this project, the compensation agreement will be signed with the affected groups or/and households according to the compensation policy and compensation standard determined by the resettlement plan, and the compensation cost for land acquisition and resettlement will be paid directly to the affected villages/families. The project management office of Xiangxi Prefecture will provide necessary supervision and guidance on the use of funds to prevent misappropriation. 146. According to the local compensation practices, the land acquisition compensation fees (land compensation fees, resettlement subsidy fees, young crops fees and ground attachment fees) will be allocated by the bureau of finance in each county and city to the PMO or construction unit in each county and city, and then will be allocated by the PMO or construction unit in each county and city to the land acquisition (resettlement plan) implementation unit, and allocated to the affected villages/households according to the approved list. The local resettlement bureau, bureau of finance and project implementation unit will jointly set up a working group to supervise and implement the project. 147. The land compensation (subsidy) fees, land rent, young crops and ground attachments compensation fees will be paid directly to the affected village groups or the households, and the affected persons can collect it at the bank by means of payment notice and personal ID card.

County and city Management PMO/finance bureau supervision Implementing Entrustment County and city land agencies acquisition office

Implementation

Application for approval Approval

Entering into compensation and resettlement agreements

Fund payment Entities / households affected by land acquisition

Entities / households Young crops and Entities / households affected by affected by land occupation attachments owner temporary land occupation

Figure 8-1: Disbursement Flowchart of Land-use Fund

9. Implementation Schedule

9.1 Principles of Schedule

148. According to the implementation schedule, the project will be constructed over a period of 6 years from June 2021 to June 2026. The main part of LAR of the project will be commenced in September 2021 and end in December 2022. The civil works of the project will be started in December 2021.The basic steps for resettlement implementation are as follows: ➢ Update the resettlement plan and get ADB approval before civil contract is awarded. ➢ The land acquisition (land use) shall be completed at least one month prior to the commencement of the work. The time of commencement of the land acquisition (land use) shall be determined according to the circumstances. ➢ The compensation shall be provided to the affected villages/persons prior to the impacts of land acquisition and resettlement. All compensation fees will be directly paid to the affected villages/persons within 1 month of formal signing of the land acquisition agreement. No entity or individual should use such compensation fees on their behalf, nor should such compensation fees be discounted for any reason.

9.2 Implementation Schedule

149. The overall implementation plan of resettlement of the project shall be formulated according to the construction, land acquisition and implementation progress of the project. The final implementation time will be adjusted in the updated resettlement plan according to the overall schedule of the project. See Table 9-1.

Table 9-1: Implementation Schedule

No. Task Target population Agency responsible Date Remarks 1 Information Disclosure Resettlement information All affected villages 1.1 Local PMOs Jul. 2020 booklets and APs Disclosure of the draft RP Xiangxi PMO and the 1.2 Jul. 2020 on ADB’s website ADB 2 Update of Resettlement Plan and Approval of Resettlement Budget Detailed measurement Local PMOs and IAs; May 2.1 Affected persons survey consultants 2021 Update resettlement plan All affected villages Local PMOs and IAs; Jun. 2.2 based on DMS and APs consultants 2021 Submit the updated RP to Aug. 2.3 ADB for review and Xiangxi PMO and IAs 2021 approval Updated resettlement budget approved Aug. 2.4 Local PMOs and IAs (including compensation 2021 rates) All affected villages Local PMOs and IAs; Sep. 2.5 Disclosure of updated RP and APs consultants 2021 3 Inventory of losses and Release Compensation and Resettlement Schemes Release the pre- governments of All affected villages Sep. 3.2 announcement of land project counties and and APs 2021 acquisition city Verification of DMS and release draft land All affected villages PMO, project Oct, New land law 3.2 compensation and and APs implementing agency 2021 Requirement resettlement schemes

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No. Task Target population Agency responsible Date Remarks Social stability risk Local PMOs, IAs, RP Oct-Nov, New land law 3.3 assessment and organize implementing 2021 Requirement public hearing as needed agencies Finalize the land Local PMOs, IAs, RP Nov, New land law 3.4 compensation and implementing 2021 Requirement resettlement schemes agencies 4 Sign Compensation Agreements and Pay Land Compensation Local PMOs, IAs, RP pre-signing of land All affected villages Dec, New land law 4.1 implementing acquisition agreements and APs 2021 Requirement agencies Local PMOs, IAs, RP Application and approval Jan, New land law 4.2 implementing of land acquisition 2022 Requirement agencies Local PMOs, IAs, RP Pay land compensation Feb, 4.3 Affected persons implementing fees per agreements 2022 agencies PMO, project implementing agency Pay compensation for and Feb, 4.4 young crops and Affected persons resettlement plan 2022 attachments implementation agency of each county and city 5 Livelihood Restoration Measures Local PMOs and IAs; Feb. Implementation of resettlement plan 2022- 5.1 livelihood restoration and Affected persons implementation Dec. assistance measures agency of each 2025 county and city Local PMOs and IAs; Feb. Implementation of skills and local human 2022- 5.2 Affected persons training programs resources and social Dec. security bureaus 2025 Local PMOs and IAs; Feb. Employment promotion and local human 2022- 5.3 Affected persons and assistance resources and social Dec. security bureaus 2025 6 Capacity Building of Resettlement Implementing Agencies Training staff of PMOs Jul. and RP implementing Persons Xiangxi PMO, 2021- 6.1 agencies in Xiangxi responsible for RP consultants Sep. Prefecture and project implementation 2021 counties and city Training staff involved in Aug. Persons land acquisition and Local PMOs, 2021- 6.2 responsible for resettlement in affected consultants Oct. resettlement towns/townships 2021 7 Monitoring and Evaluation Establishing an internal Local PMOs and Xiangxi PMO, local Sep. 7.1 monitoring system IAs PMOs, consultants 2021 from Internal monitoring Xiangxi PMO, local 7.2 Sep. reports PMOs, consultants 2021 Engage an external Jun. 7.3 monitoring and evaluation Xiangxi PMO 2021 agency All affected villages Dec. 7.4 Baseline survey External monitor and APs 2021 No.1 report Jan. and baseline Affected villages, 2022 survey report External monitoring villagers’ groups 7.5 External monitor Jul. 2022 No.2 reports and affected Jan. persons No.3 2023 Jul. 2023 No.4

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Jan. No.5 2024 Jul. 2024 No.6 Jan. No.7 2025 Jul. 2025 No.8 Jun. No.9 2026 Resettlement completion PMO and external Dec. 7.6 No.10 report monitor 2026 Local PMOs and 8 Public Consultation Ongoing IAs; Local PMOs and 9 Grievance Redress Ongoing IAs; 10 Disbursement of Compensation Funds Governments of -Disbursement to the Dec. 10.1 project counties and county or city PMO or IAs 2021 city -Disbursement to RP Jan. 10.2 implementing agencies or Local PMOs and IAs 2022 town governments -Disbursement to the RP implementing Feb. 10.3 affected villager groups agencies or town 2022 and households governments 11 Commencement of Civil Works From See Project Xiangxi PMO, local 11.1 Subprojects Mar. Procurement PMOs and IAs 2022 Plan for details

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10. Monitoring and Evaluation

150. In order to ensure the smooth progress of land acquisition and resettlement work as planned, two monitoring methods are implemented simultaneously: (i) internal monitoring system composed of relevant project management and implementation agencies; and (ii) external monitoring and evaluation by external monitoring agency for resettlement.

10.1 Internal Monitoring

10.1.1 Implementation Procedures 151. The internal monitoring responsibility of the project lies with the PMO of each county and city, in collaboration with the project implementation agencies (construction units) of each county and city under the leadership of Xiangxi PMO. The detailed internal monitoring formats will be prepared by the Xiangxi PMO during the implementation of the project, and the resettlement experts of the project implementation consulting agency will provide technical guidance. 10.1.2 Monitoring Scope 152. The scope of internal monitoring includes: ➢ Implementation of land approval procedures for projects; ➢ Progress in the implementation of land acquisition/use; ➢ Negotiation and signing of land acquisition agreement/use; ➢ Payout status of land compensation fees, subsidies and rents; ➢ Compensation for young crops and ground attachments; ➢ Progress on temporary land use and compensation; ➢ Implementation of measures to restore the livelihood of the population affected by land acquisition/use; ➢ Implementation of supportive measures for vulnerable groups; ➢ Payment and utilization of project land-use funds; ➢ Information disclosure, participation and negotiation with the affected persons (including performance indicators regarding adequacy and frequency of public consultations, as well as the nature of discussions and documentation); ➢ Recording and handling of complaints and appeals; ➢ Resettlement implementation management agencies, implementation personnel training and arrangements in the project area; ➢ Internal monitoring findings and follow-up work plan arrangements.

10.1.3 Internal Monitoring Reports 153. ADB Loan Project Management Office of XiangXi Prefecture will semiannually submit internal monitoring reports to ADB, and the internal monitoring report on resettlement will be an integral part of the project progress report. The report will include tables demonstrating the key information such as the impacts and progress of project land use, the implementation of livelihood restoration measures and the payment for land-use costs for the last 6 months. The resettlement experts of the implementation consulting agency will provide technical support and guidance on carrying out the internal monitoring and preparing internal monitoring reports for the projects and construction units in Xiangxi prefecture and other counties and cities.

10.2 External Monitoring

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154. According to ADB’s requirements, Xiangxi PMO will hire a qualified and experienced monitor to carry out external resettlement monitoring and evaluation. 155. The external monitoring and evaluation agency will conduct baseline survey prior to land acquisition and resettlement, carry out follow-up monitoring and evaluation of resettlement activities periodically, monitor impact of land use, progress in land compensation and resettlement, performance, fund payment, satisfaction and complaints, and provide suggestions. It will also conduct follow-up monitoring of the affected person’s satisfaction level and livelihood restoration and submit monitoring and evaluation reports to the PMO and ADB. 10.2.1 Contents and Methods of External Monitoring

(1) Baseline Survey

156. The external monitoring agency will conduct baseline survey on the villages affected by the land acquisition of this project to collect baseline data on the production and living standard (living, production and income levels) of the monitored households. Random sampling survey will be conducted for no less than 20% of the affected households and 100% of the vulnerable groups. The survey should be completed prior to start of land acquisition and resettlement. The contents of the baseline survey report will be included into the 1st external monitoring report.

(2) Regular Monitoring and Evaluation

157. The external monitoring agency will conduct resettlement follow-up monitoring during the implementation of the Resettlement Plan and the project, monitoring will be conducted twice a year. The monitoring will be conducted through site observation, sample follow-up survey and random interviews with the affected persons, and typical sample follow-up survey (sample size will be 20% of all the affected households and 100% of the vulnerable groups, sample households are selected by random sampling). Monitoring of the following activities: ➢ Actual impacts of land acquisition/use; ➢ Progress in the implementation of land acquisition/use; ➢ Negotiation and signing of land acquisition agreement/use; ➢ Payout status of land compensation fees, subsidies and rents; ➢ Compensation for young crops and ground attachments; ➢ Progress on temporary land use and compensation; ➢ Schedule and progress of land use and resettlement activities; ➢ Implementation of measures to restore the livelihood of the population affected by land use; ➢ Implementation and effectiveness of skills training program for affected populations; ➢ Implementation of land-expropriated farmers’ participation in social insurance; ➢ Changes in the livelihood patterns and production and living standards of the affected populations; ➢ Sharing of project benefits among the affected populations; ➢ Implementation of supportive measures for women and vulnerable groups; ➢ Information disclosure, participation and negotiation of the affected populations; ➢ Recording and handling of complaints and appeals; ➢ Implementation of resettlement implementation management agency, the capacity of the implementation personnel and training plan in the project area; 104

➢ Collect data on gender-specific livelihood restoration for analysis and presentation in the monitoring reports; ➢ Main findings and recommendations on land use and resettlement.

(3) Public Consultations and Negotiations

158. The external monitoring agency will participate in some of the public consultation and negotiation meetings conducted during the implementation of resettlement plan to evaluate the effectiveness of public participation. Performance indicators regarding adequacy and frequency of public consultations, as well as the nature of discussions and documentation, will be regularly monitored and reported in external monitoring reports,

(4) Complaints

159. The external monitoring agency will conduct regular visit to the affected villages and follow up handling of the complaints of the relevant township governments and implementation agencies. If there are any issues identified during monitoring, corrective measures should be proposed to PMO for effective resettlement implementation. 10.2.2 External Monitoring Report 160. The external monitoring agency will prepare external monitoring reports based on observations and surveys and submit them regularly to ADB through the PMO. 161. The external monitoring will start in July 2021 until resettlement completion and the production and living of the affected populations are restored. Table 11-1 Monitoring and Evaluation Plan

No. Report Time Remarks 1 Including the baseline 1st report Jan. 2022 survey report 2 2nd report Jul. 2022 Semi-annual report 3 3rd report Jan. 2023 Semi-annual report 4 4th report Jul. 2023 Semi-annual report 5 5th report Jan. 2024 Semi-annual report 6 6th report Jul. 2024 Semi-annual report 7 7th report Jan. 2025 Semi-annual report 8 8th report Jul. 2025 Semi-annual report 9 Completion report Jun. 2026 Completion report

10.3 Resettlement Completion Report

162. After the completion of the project, the resettlement activities will be subject to completion review on the basis of monitoring and evaluation. The successful experience of land acquisition will be evaluated to provide reference that can be drawn on for future resettlement. The completion review will be carried out by the external monitoring and evaluation agency hired by the PMO. The monitoring and evaluation agency will prepare a work plan for completion review to establish a system of evaluation indicators, conduct socioeconomic analysis and survey, and prepare the Resettlement Completion Report for submission to ADB through the PMO of Xiangxi Prefecture.

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Appendix 1: Detailed Components and Activities of the Project

No. Subprojects Major Contents 1. Output 1: Rural waste and sanitation management facilities and services improved. 1.1 Wastewater management system Construct a centralized wastewater treatment station (3000 m3/d) in Xingnongyuan community of Huayuan township Huayuan county domestic and 315 decentralized wastewater treatment facilities (200 1.1.1 wastewater treatment single household four-tank wastewater purification systems and 115 grouped households wastewater treatment facilities). Construct three centralized wastewater treatment stations (1200 m3/d, 800m3/d, 800m3/d) in 3 communities of Miaoertan and Xichehe townships and 586 decentralized wastewater treatment facilities (420 single household 4- Longshan county wastewater 1.1.2 tank wastewater treatment systems and 166 grouped treatment households wastewater treatment facilities) in Youshui river area and Liye townships, and assist an existing wastewater treatment system to extend its coverage of villages in Banyue lake area. Construct three wastewater treatment stations (550m3/d, 550m3/d, 800m3/d,) in Dalan, Heshui and Xinglongchang Luxi county wastewater townships and assist an existing wastewater treatment 1.1.3 treatment system to extend its coverage of villages through building of 66.6 km pipelines, 1716 inspection wells and a pump station. Construct four wastewater treatment stations (1000m3/d, 300m3/d, 300m3/d, 300m3/d, ) in Majingao, Yilve, Taiping Jishou city rural domestic 1.1.4 and Danqing townships and 15 decentralized grouped wastewater treatment households wastewater treatment facilities in Dong river area. Construct 31 decentralized wastewater treatment facilities Guzhang County rural 1.1.5 in 6 villages, with the size varying from 5 m3 to 100 m3 wastewater treatment each. Construct 570 decentralized wastewater treatment facilities Baojing County rural (500 single household 4-tank wastewater treatment 1.1.6 wastewater treatment systems and 70 grouped households wastewater treatment facilities) in Lvdongshan township. Construct 5 decentralized wastewater treatment facilities in Yongshun county rural 1.1.7 Sicheng village, with the size varying from 5 m3 to 15 m3 wastewater treatment each. 2.1 Garbage management Construction of 4 garbage transfer stations and Huayuan county Zixia lake rural procurement of garbage collection and transportation 1.2.1 domestic garbage treatment equipment and vehicles in Shilan, Longtou, Malichang and Huayuan townships. Construction of 3 garbage transfer stations and procurement of garbage collection and transportation Longshan county Youshui river equipment and vehicles in Xichehe, Miaoertan and Liye 1.2.2 rural domestic garbage townships, provision of garbage collection and treatment transportation equipment and vehicles for Liye town drinking water source area. Construction of 2 garbage transfer stations and Luxi county rural domestic 1.2.3 procurement of garbage collection and transportation garbage treatment equipment and vehicles in Pushi and Dalan townships. Renovation and expansion of a garbage transfer station Jishou city Dong river rural 1.2.4 and procurement of garbage collection and transportation domestic garbage treatment equipment and vehicles in Aizhai township. Procurement of garbage collection and transportation Guzhang county rural domestic 1.2.5 equipment and vehicles for Qifeng lake area. Garbage garbage Treatment transfer station has been constructed. Construction of a garbage transfer station and Baojing county rural domestic 1.2.6 procurement of garbage collection and transportation garbage treatment equipment and vehicles in Lvdongshan township. 106

No. Subprojects Major Contents Sicheng village domestic garbage treatment: Procurement Yongshun county rural of garbage collection and transportation equipment and 1.2.7 domestic garbage treatment vehicles for Sicheng village. No need for construction of garbage transfer station. 1.3 Renovation of rural households’ unsanitary toilets to sanitary ones Huayuan county household Construction of 500 new sanitary household toilets and 1.3.1 toilet renovation around Zixia renovation of 3000 unsanitary household toilets in 17 lake villages of 4 townships. Jishou city household toilet Construction of 249 new sanitary household toilets and 1.3.2 renovation around Dong lake renovation of 579 unsanitary household toilets. Construction of 50 new sanitary household toilets and Baojing county Lvdongshan 1.3.3 renovation of 1000 unsanitary household toilets in 4 household toilet renovation villages. Yongshun county Sicheng Renovation of 82 unsanitary household toilets in Sicheng 1.3.4 village household toilet village. renovation 2. Output 2: Local-featured ecological agricultural and forestry products developed. Introduction and screening of species, construction of research and development center, establishment of parent Xiangxi prefectural kiwi fruit garden, observation garden and open field nursery, 2.1 and citrus seedlings research construction of seedling greenhouses and steel frame and breeding Base sheds, and capacity building for farmers on kiwi fruit and citrus planting and management and technicians on updated techniques. Construction of research and development center, establishment of germplasm resources nursery, construction of greenhouses and steel frame sheds for Baojing county Lvdongshan 2.2 seedling culture, old tea tree protection, establishment of gold tea industrial park Golden tea demonstration garden, construction of tea processing workshop and exhibition and marketing center, and capacity building and brand publicity. Establishment of camellia oleifera demonstration base and seedling culture base, construction of water and fertilizer Upgrading of Huayuan county integrated irrigation system, application of green pest 2.3 Zixia lake area locally-featured prevention and control technologies, integrated utilization agricultural base of crop residuals and livestock manure, and capacity building for both farmers and technicians. Collection of rare and valuable species, construction of Wuling moutain area valuable tree species reserve and breeding test area, establishment 2.4 germplasm resources of rare and valuable species nursery and breeding area, conservation and technical exchange and cooperation with relevant institutes, academies and universities. 3. Output 3: Values added to local products through value chains and by eco-tourism. Construction of logistics cold storage and sorting and packaging workshop and establishment of block chain data Guzhang County local featured management and traceability system to (1) enhance 3.1 agricultural products logistics branding and promote the marketing and development of and cold chain base locally-featured agricultural products such as kiwi fruit, citrus, melon, blueberry and vegetables; and (2) improve the products supply and services to tourists. Construction of logistics cold storage and citrus processing workshop and establishment of traceability system and e- Yongshun County local commerce platform to (1) enhance branding and promote 3.2 featured agricultural products the marketing and development of locally-featured logistics and cold chain base agricultural products such as kiwi fruit, citrus, Xiangxi black swine and cattle; and (2) improve the products supply and services to tourists. Construction of logistics cold storage for vegetable and Jishou City local featured mushroom preservation and workshops for processing agricultural products cured food, preserved ham, and dried fruit and vegetables 3.3 logistics and cold chain and establishment of blockchain data management and base traceability system and e-commerce platform to (1) enhance branding and promote the marketing and

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No. Subprojects Major Contents development of locally-featured agricultural products; and (2) improve the products supply and services to tourists. Construct trading and distribution center for locally- featured agro-products such as Luxi poonen citrus, Luxi county Xinnv Waxiang rice, chilli, camellia oleifera oil, ginger, and kiwi 3.4 agricultural products trading fruit, etc. to (1) enhance branding and promote the center marketing and development of locally-featured agricultural products; and (2) improve the products supply and services to tourists. Emphasize on integration of forestry with tourism through Ecological corridor renovating the forest form on roadside hills along two 3.5 motorways with soil and water conservation, landscaping construction demonstration and valuable tree species, and building forest trails for people's natural experiencing, relaxation and sightseeing. Emphasize on integration of agriculture, forestry and environmental ecology with tourism through construction of 13 km round-the-lake road, 14.7 ha phytocoenosis Guzhang county Qifeng lake restoration, Reynolds revetment, lake water protection and 3.6 agriculture and tourism management, forest form improvement, mid-lake island integration demonstration optimization, capacity building on tourism service and brand publicity. An existing tea garden in the Qifeng lake area will be integrated with tourism. Emphasize on integration of agriculture and forestry with tourism through construction of tourism infrastructure, a Miaozu culture and art exhibition center, a Miaozu history and culture museum, renovation of homestay, Fenghuang county Shanjiang establishment of family ethnic minority handicraft 3.7 village tourism demonstration workshops with skill trainings, improvement of forest form, establishment of fruit gardens for picking experience by tourists, exhibition and marketing of featured agro- products, capacity building on integration of agriculture and forestry with tourism, and brand publicity. Emphasize on integration of agriculture and environmental ecology with tourism through renovation of two pump stations, lake water circulation engineering, phytocoenosis Longshan county Banyue lake restoration, water surface protection and management, 3.8 agriculture and tourism building of footpath, construction of featured agro-products integration exhibition and marketing center, capacity building on tourism services and integration of agriculture with tourism, and brand publicity. Emphasize on integration of agriculture, forestry and environmental ecology with tourism through construction of 8.9 km traffic road, 11.2 km footpath and a Miaozu Huayuan county Zixia lake intangible cultural heritage exhibition center, transformation 3.9 agriculture and tourism of forest form, establishment of fruit demonstration garden, integration demonstration rehabilitation of lake ecology, lake water body protection and management, ancillary facilities for tourism, brand publicity, and capacity building for integration of agriculture with tourism. Emphasize on integration of agriculture and environmental ecology with tourism through riverway slope ecological protection, renovation of homestay, construction of tourism Yongshun county Sicheng infrastructure, a Tujiazu and Miaozu intangible cultural 3.10 village agriculture and tourism heritage exhibition center, and fruits fresh preservation integration facilities, establishment of 35 ha locally-featured fruit orchard, brand publicity, and capacity building on integration of agriculture with tourism.

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Appendix 2: Land Use Rights Transfer Framework

1. Background

According to project construction content and implementation plan, the sub-items of agricultural industrial development of this project will be applicable to land use right transfer/land lease, such as characteristic fruit breeding and research base, tea-oil tree planting base, vegetable planting base, germplasm resources base of rare tree species, tea planting base, fresh orchard base, etc. The main reasons for obtaining the land use right through LURTinclude: (1) activities of the project are agricultural related. According to the Land Management Law, agricultural land (including facility agricultural land) can be used without the need to be converted into state- owned land for construction and acquisition ; (2) governments at all levels are promoting the reform of rural LURTsystem to minimize the scope of land acquisition; and encourage the implementation of non-engineering construction projects through LURT; (3) the farmers are more willing to lease land to the users on the premise of retaining the right to contract the land, so that they have more options in the future. The transfer of land use right means that the farmer who owns the land contract right transfers the land management right (right to use) to other farmers or economic organizations, retaining the contract right and transferring the right to use the land. According to the Administrative Measures on the Transfer of Rural Land Contractual Management Right (Decree No .47 of the Ministry of Agriculture)(Amendment in 2019 and effective on 1 January 2020), the construction units of the sub-items of agricultural industrial development will lease land from the farmers and obtain the right to use land, and follow the principle of equal consultation, law-based, voluntary and compensation. No unit or individual may compel or obstruct the farmer to transfer his contracted land according to law. All LURT consultations are subject to the relevant management practices and procedures set out in this LURT framework. The external monitoring bodies will document the consultation and agreement process of LURT. Controversies or disputes arising from the transfer of contracted rural land management rights shall be settled through consultation between the parties according to law. If the parties concerned fail to negotiate, they may request mediation from the villagers' committee or the township (town) people’s government. If the parties are unwilling to negotiate with each other or fail to mediate, they may apply to the rural land contracting arbitration institution for arbitration or bring a suit directly to the people’s court. The construction units of the sub-items of agricultural industry development will consult with the farmers and provide the farmers with a land rent not less than the net income of the land. According to the site survey, the net income of paddy land with the best quality is around RMB500/mu per year . As consulted to the IAs, the LURT is very common in Xiangxi and even, in other places of Hu’nan province. The price is generally from RMB 300/mu (barren land) to RMB700/mu per year. And as introduced, most LURT contract will be renewed every 5 years, some contract is updated every year. Sometimes, the price may also determined by the market price of crop in October when the new crops are in harvest season. According to the price of 2019, it was RMB600/mu per year. Budget estimated in the report is based on the price of RMB1,000/mu per year. In practice , LURT is subject to negotiation by voluntary and fair basis. When the contract of LURT is signed, the existing crops on the land will be harvested by the farmer and the land will be handed over as negotiated schedule. The land will be returned to the original land contractor upon the expiration of the LURT period in accordance with the law or the agreement. The original land contractor shall have the right to terminate the LURTcontract according to law or the agreement. In this case, the construction units of the sub- items of agricultural industry development shall be responsible for restoring the land to its original condition before the project. In order to ensure that the LURTmeets the requirements of PRC’s relevant laws and regulations and good practice of ADB on voluntary land use agreements, the executing agencies / implementing agencies, with the help of consulting experts, have prepared this Land Use Right Transfer Framework (LURTF). The LURTF is designed to help project implementing agencies (county and district people's governments) and project implementing units to assess, monitor and report on LURT. 109

2. Main principles of LURT

The guiding principles to be followed in the transfer of land use rights during the implementation of this project include: 1. Equality, voluntary, legal procedure and fair compensation. Equality means that the two parties have equal legal status. Voluntary means that the transfer of contractual right of land must be entirely voluntary by both parties, and neither party may force the other to transfer or accept the transferred land. Legal procedure means that the transfer of land use rights must be subject to legal procedure and legal consultation. Fair compensation means that the compensation fee for LURT should be negotiated according to the market price. 2. Agricultural properties and ownership of transferred land shall not be changed. The transfer of land use rights means the transfer of use rights rather than ownership rights. The ownership of land should therefore remain unchanged. Therefore, the users who obtain the land use right in the future shall not change the nature of the use of agricultural land, that is, the land shall not be used for non-agricultural purposes. 3. Government guidance and management. The agricultural sectors of county-level governments shall guide and manage the legal transfer of rural land. 4. Mediation of conflicts through grievance mechanism. In the event of any dissatisfaction, the grievance system of the PMO should facilitate resolving the grievances and conflicts. 5. LURT consultation will follow the relevant management measures and procedures. Failure to negotiate will not result in land acquisition or any restrictions on the use of land resources. The internal as well as external monitoring agencies will document the consultation and agreement process of LURT. II. Legal Framework for LURT

All subprojects LURTs must comply with the law of the Rural Land Contract Law of the People’s Republic of China and the Administrative Measures on the Transfer of Rural Land Contractual Management Right of the People’s Republic of China, as well as the policies of Hunan Province and its local governments and the ADB good practice on voluntary land use. The main laws and policies are as follows: 1. Rural Land Contract Law of the People’s Republic of China -- the ownership of land shall remain unchanged, and the nature of agricultural use of land shall remain unchanged (permanent cultivated land shall not be converted into construction land structure). 2. The Regulations of Administrative Measures on the Transfer of Rural Land Contractual Management Right of the People’s Republic of China, Hunan Province and the PMO: ⚫ The time for transferring the land use right shall not exceed the term of the land contract

⚫ The land transferrer and the transferee shall negotiate for a settlement

⚫ The transfer of land use right shall accord with legal procedures

⚫ Standard contract (signed by a third party if required by land transferrer and transferee)

⚫ If necessary, township agricultural stations need to verify LURT contract

3. Measures for mediation and arbitration of rural land contract disputes under the laws of the People’s Republic of China, relevant management methods of Hunan Province and PMO —— bottom-up grievance redress mechanism (GRM). 4.The ADB good practices on voluntary land use—— meaningful consultation; negotiated voluntary agreements; establishment and operation of grievance redress mechanism; record; external monitoring.

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III. Implementation Procedures of LURT

The implementation procedures of the transfer of land use right are as follows (as shown below): (1) Disclosure of information. The project construction unit shall, together with the township agricultural station, release the information of project construction content, construction plan, schedule, LURT demand, LURT policy, intention feedback method and approach within the scope of proposed project land. The above information will be published through the Internet, broadcast, newspaper, bulletin board and electronic display screen in the project area in time. (2) Collection of LURT intention. The project construction unit shall, together with the township agricultural station, collect the intention of the farmers to transfer land in the project area. The farmers willing to transfer their land use right will provide the village committee with detailed information about the land to be transferred, such as location, area, use and reference price. The village committee will then report to the township agricultural station and the project construction unit. The farmers may also entrust their land to other lessees or intermediary institutions, and issue a letter of authorization to transfer the right to use the land to the transferee, stating the entrusted matters, the content of the authorization and the term of validity, etc., and it shall be signed by the authorized person. (3) Consultation between the transferrer and the transferee of land use rights. Based on the principles of equality, voluntariness and mutual benefits, the township agricultural station will arrange the two parties to negotiate the terms and prices of the transfer of land use right. (4) Sign a contract for the transfer of land use right. Where both parties agree on the terms and prices of the transfer, the township agricultural station shall provide 4-5 standard contracts (the standard contract is provided by the provincial agricultural department) to be signed by both parties. The township agricultural station is also required to agree to the contract. (5) Verification of the land use right transfer contract. If necessary, the township agricultural station is required to verify the contract. (6) Registration of transfer of land use right. The township agricultural station shall promptly and accurately register the information of land use right transfer and submit relevant information to the county-level agricultural department for archiving. (7) Archiving. The county-level agricultural department shall collate all relevant documents and materials related to the transfer of land use right. These documents shall be stored in the Agricultural Bureau and easily accessible to the PMO (PMO) at all levels. (8) Failure to negotiate will not result in land acquisition or any restrictions on the use of land resources. The external monitoring units will document the consultation and agreement process of LURT. (9) Supervision of contract execution. Both parties shall actively execute the contract, and the township agricultural station shall also supervise the execution of the contract. In the case of conflicts and disputes, the township agricultural station shall promptly report to the county-level agricultural station in time, and the latter will notify the PMO to synchronize.

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Information disclosure

Intention collection

Equal consultation

Fill in land transfer standard contract

Sign standard contract

Contract verification (if necessary)

Contract execution

Monitoring, evaluation and reporting

Figure 1: Flow Chart of Land Use Right Transfer IV. Responsibility of Implementing Agencies

According to the relevant laws and regulations of Hunan Province and the PMO, the county agricultural and rural departments and township agricultural stations will manage and guide the transfer of rural land use rights within their administrative areas. 1. Responsibilities of Bureau of Agriculture and Rural Affairs in XiangXi Prefecture:

(1) Publicize the policies on the transfer of rural land use rights.

(2) Guide the lawful and orderly transfer of land use rights.

(3) Guide and resolve dispute arbitration.

(4) Strengthen and standardize the transfer of rural land use rights.

(5) Put forward the solution to the problem of land use right transfer and establish a new mechanism of land use right transfer.

2. Responsibilities of Bureau of Agriculture and Rural Affairs in counties and cities:

(1) Guide the transfer and contracting of rural land use rights.

(2) Establish a service center for the transfer of land use rights and an information network platform to realize online transactions and/or open transactions of LURT.

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(3) Receive, manage and guide the applications from rural land use right transfer agencies.

(4) Deal with disputes.

(5) Advisory services on land use right transfer policies.

3. Responsibilities of agricultural stations in townships:

(1) Information collection, analysis and disclosure, the transfer of land use right can be carried out in counties or townships.

(2) Provide a standard contract to parties who have reached agreement on the terms and conditions of the contract and assist them in signing the contract.

(3) Where the transferer and transferee of the transfer of land use right require, approve the signing of the contract as a third-party organization.

(4) Establish a registration system for the transfer of rural land use rights and record relevant information in a timely and accurate manner.

(5) Archive the transfer materials of land use rights.

(6) Investigate and rectify the transfer of illegal land use rights.

(7) Resolve disputes over the transfer of rural land use rights.

(8) Guide and manage the transfer of land use rights lawfully.

(9) Offer consultation services.

4. Responsibilities of village committee:

(1) The data of land use right transfer are collected and classified, and reported to the township agricultural station.

(2) Assist the townships to resolve disputes.

5. Responsibilities of PMO in each county and city:

(1) Supervise the execution of the contract.

(2) If it can not be solved in the townships, it needs to participate in the conflicts and disputes solved by the county-level units.

6. Responsibilities of external monitoring agency:

(1) Record the negotiation and agreement process of LURT, confirm whether the LURT follows the relevant management methods and procedures established in this LURT framework, and confirm whether the failure of the negotiation will lead to land acquisition or restrictions on the use of land resources.

V. Contract for LURT

The contract for transfer of land use right shall include the following provisions:

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(1) Name and domicile of both parties.

(2) Location, boundaries, areas and nature of the land to be transferred.

(3) Date of commencement and completion of the transfer.

(4) Ways of transfer.

(5) Methods of land use.

(6) Rights and obligations of both parties.

(7) Fees and payment methods for the transfer of land use rights.

(8) The manner of handling attachments and related facilities after the expiration of the contract.

(9) Liability for breach of contract.

(10) Methods of dispute resolution.

(11) Other provisions deemed necessary by both parties.

(12) The seal of the relevant institution.

(13) The date of the final contract.

VI. Measures to protect the interests of the parties to the contract

The following measures will be taken to protect the interests of the parties to the contract during the transfer of the land use right of the project: (1) In order to prevent the leased land from serious damages caused by natural disasters or force majeure during the contract period, the parties to the contract may terminate or change the contract through negotiation, and the land will be returned to the original user for cultivation. When there is a specific clause in the contract on the land that has been seriously damaged, the clause takes precedence. (2) The contract shall stipulate policy subsidies for the grain production and production controls. (3) The land lease contract for all families will be signed by both husband and wife. (4) The township contract verification requested by each contracting party is free of charge. (5) According to Rural Land Contract Law of the People’s Republic of China, Administrative Measures on the Transfer of Rural Land Management Right of the People’s Republic of China and other laws and regulations concerning the transfer of land use right in Hunan province, the term of the transfer of land use right shall be negotiated by both parties on an equal footing, but within the limits stipulated in the rural land contract (duration 1998-2028 or so). (6) The rate of transfer of land use right will be determined according to the type of land, feasibility, grade and other reference conditions, and even the transfer price of land use right in nearby areas. Taking into account the interests of farmers, if the transfer of land use rights exceeds 5 years, the transferrer and the transferee should set a time for renegotiating the land price. It is suggested that land prices be adjusted with reference to interest rates after five years. (7) The consultation on LURT will follow the relevant management measures and procedures determined by the resettlement plan. Failure to negotiate will not result in land acquisition or any restrictions on the use of land resources. The external monitoring units will document the consultation and resettlement process of LURT.

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VII. Grievance Redress Mechanism

The contract for the transfer of land use rights used in this project is based on negotiation and mutual consultation, so complex disputes are unlikely to occur. However, there may be some unexpected problems during and after the LURT. According to the Law of the People’s Republic of China on Mediation and Arbitration of Rural Land Contract Disputes, the project has established a transparent and effective procedure and grievance compensation procedure to resolve disputes and breach of contract following the transfer of land use rights. Details of complaint and grievance mechanism is provided in chapter 6 of the Resettlement Plan.

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Appendix 3: Land Use for Rural Public Infrastructure Framework

1. Background

The project involves the constructions of a large number of village-level public infrastructure, such as rural decentralized sewage treatment facilities, rural garbage collection and transfer facilities, rural toilet renovation and rural road construction. These facilities have smaller scales and flexible locations. The completed facilities shall be managed, used and maintained by the local township government, village group or farmer households, so there is no need to expropriate the land as state-owned land. According to relevant laws and regulations as well as the practices of rural construction, the construction unit will consult with the village groups and farmers in the project site on these village-level public infrastructure land on an equal and voluntary basis during the construction stage of the project, so as to determine the specific site selection, the land area, the compensation standard or subsidies. Voluntary land use of rural public infrastructure, under the premise of rural vitalization development plan and rural construction land planning, the construction unit determines the project site selection, land area and land compensation or subsidy provided through equal and voluntary consultation and agreements with the village groups where the project is located and the involved households in the construction of rural public infrastructure. After the completion of the construction activities, the land occupied still belongs to the rural collectives, and the completed public infrastructure belongs to the rural economic organizations or rural households for management and use. During the site survey, LURPI is a common practice in Xiangxi. The compensation or subsidy is based on voluntary and fair negotiaton. The budget estimated for LURPI is subject to vary elements, such as the depth of benefit, location, quality and type of lands, and therefore, there are three common practices in local: 1) it may be no any compensation required by the villagers where the facilities are extremely shortage and needed; 2) an appropriate compensation may be provided or internal land adjustment will be carried out; however, compensation rate may be lower than that is indicated in the policy of the formal land acquisition standard; and 3) it is compensated as the same standard of land acquisition as indicatd in the policy, which is completedly based on negotiation between the villagers and IAs and it is also called as “case by case”. Budget estimated for LURPI in this report is RMB16,000/mu to RMB 33,000/mu. Location of the project facilities may be adjusted in case failure of negotiation. When the contract of LURPI is signed, the existing crops on the land will be harvested by the farmer and the land will be handed over as negotiated schedule. In this project, rural sewage treatment facilities, rural garbage transfer facilities and rural roads are applicable to this pattern of land use. In order to ensure that the voluntary land use of rural public infrastructure meets the requirements of PRC’s relevant laws and regulations and ADB good practice on voluntary land use. The executing agencies / implementing agencies, with the help of consulting experts, have prepared the Voluntary Land Use of Rural Public Infrastructure (LURPIF). The LURPIF is designed to help project implementing agencies (county and district people's governments) and project implementing units to assess, monitor and report on voluntary LURPI. 2. Policy on Land Use for Rural Public Infrastructure

2.1 Policy framework

(i) Land Administration Law of the People’s Republic of China, January 1, 2020 (ii) Guidelines of the State Council on Promoting the Revitalization of Rural Industries (SC [2019] No.12), June 17, 2019 (iii) Notice on Deepening Agricultural Supply-side Structural Reform and Ensuring Land Use for Rural Industrial Integration and Development (MLR [2017] No.12) December 7, 2017 (iv) ADB good practice on voluntary land use

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2.2 Relevant Clauses Article 61 of Land Administration Law of the People’s Republic of China: where land is needed for the construction of public facilities or public welfare undertakings in township (town) village, an application shall be submitted to the department in charge of natural resources under the local people’s government at or above the county level after examination and verification of the township (town) people's government, and shall be approved by the local people's government at or above the county level in accordance with the approval authority prescribed by the province, autonomous region or municipality directly under the Central Government. Where the occupation of agricultural land is involved, the examination and approval procedures shall be handled in accordance with the provisions of Article 44 of this Law. National Development and Reform Commission of Ministry of Land and Resources issued Notice on Deepening Agricultural Supply-side Structural Reform and Ensuring Land Use for Rural Industrial Integration and Development (2017): (1) Give play to the leading role of overall planning for land use. In the preparation and implementation of overall planning for land use for various regions, it shall meet the needs of the integration development of modern agriculture and rural industries, and give priority to the allocation of land for rural infrastructure and public services. The overall planning for township (town) land use can be reserved a small amount (not more than 5%) of planned construction land for the constructions of scattered and separate agricultural facilities, rural tourism facilities and so on. Make land use arrangements for agricultural industrial parks, science and technology parks and high-tech business incubator, guide rural secondary and tertiary industries to concentrate in counties, key town and industrial parks on the premise of ensuring agricultural land is used for agricultural purposes, reasonably ensure the demand for construction land in agricultural industrial parks, and strictly guard against disguised development of real estate. The competent departments of land and resources at the provincial level shall formulate land control standards and strengthen the implementation and supervision. (2) Strengthen the index support of construction land plan. Arrange a certain proportion of the annual land use plan to support the integrated development of new industries and new forms of business in rural areas. For cities and counties that use the stock of construction land for agricultural products processing, cold chain of agricultural products, logistics and storage, wholesale market of producing areas, or for small and micro high-tech business incubator, leisure agriculture, rural tourism, rural e-commerce and other rural secondary and tertiary industries, newly-added construction land planning indicators can be awarded. (3) Strengthen coordination among departments. The competent department in charge of land and resources at all levels should strengthen the coordination and linkage with the relevant departments of development and reform, agriculture, urban and rural planning, construction, environmental protection, forestry, tourism and fire control to jointly carry out the investigation and analysis of the current situation and needs of land for rural industrial integration and development in their respective regions, determine the land use standards and land use security methods for all types of industries, improve the policy system, jointly enforce law supervision, do a good job of risk prevention and control, and jointly promote rural and agricultural development in the new era. The subprojects involved in this project, such as sewage treatment facilities, garbage collection and transfer facilities, and rural roads, are necessary means to improve the rural ecological environment. The characteristics of land use in project construction are as follows: scattered in rural residential areas and surrounding areas; the single project covers a small area; the ownership of its land still belongs to the collective land after the completion of the project. These construction contents and the nature of land use are in line with the requirements of “accelerating the modernization of agriculture and rural areas” and “prioritizing rural infrastructure and public service land” in the above-mentioned policies. 3. Principles for Voluntary Land Use of Rural Public Infrastructure

Rural public infrastructure land construction and village public facilities, in line with the category of “one project one discussion”, must follow the principles of "act within the capabilities, the 117

masses benefit, democratic decision-making, upper control limit and open uses”, put forward a land use plan through the convening of a villagers’ meeting or a villagers’ representatives meeting, and determine the amount and scope of the land use with the voluntary consent of the affected people on accepting the land adjustment plan or land-use subsidy standards. The consultation process follows the principles of voluntariness and equality, and the involved villages and farmer households shall not be forced to accept the land use plan. If the land use agreement can not be reached on a voluntary basis, the project construction unit shall adjust the site selection and/or land use scale of the facilities to be built, and negotiate with the new affected villages and households again until the land use agreement is reached voluntarily. 4. Procedures for Voluntary Land Use of Rural Public Infrastructure

With the assistance of the PMO of counties and cities, the project construction units and the local township governments, release project construction information and land requirement, understand and collect the intention and demand for land provided by the involved villages and farmers, and then carry out land use negotiation by the means of “one project one discussion” with the involved village groups as the collective units. After reaching consensus, an agreement on land use for rural public infrastructure is signed, which sets out key information such as land use subsidy within the village groups. The project construction party, the involved village groups and households shall perform their respective duties in accordance with the agreement prior to the land use. The external monitoring agency will monitor and evaluate the negotiation process, negotiation results, signing and implementation of the agreement, and report to the Xiangxi PMO and ADB every six months. The flow chart of implementation is shown in Figure 1.

Information disclosure

Intention collection

Equal consultation

Fill in land use agreement

Sign land use agreement

Agreement verification (if necessary)

Agreement execution

Monitoring, evaluation and reporting

Figure 1: Flow Chart of Voluntary Land Use of Rural Public Infrastructure

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5. Subsidies for Voluntary Land Use of Rural Public Infrastructure Land

In principle, villagers shall solve the land use problem by themselves through internal adjustment or subsidy for the construction of public infrastructure within the village groups. However, considering that some village groups may have difficulties in land use for public infrasture, the PMO and project construction unit of each county or city will provide land subsidies to the involved village groups and households according to the actual situation and the results of consultation, so as to make up for the loss of land use and assets of the involved households. The specific land-use subsidy standards will be based on the results of the consultation and local practical experience. If the occupation of rural public infrastructure land affects young crops or ground attachments, the project construction unit will use the contingencies in the resettlement budget to pay compensation to the farmers involved. The standards of compensation shall be in accordance with the compensation standards for young crops and ground attachments in chapter 4 of the resettlement plan. 6. Grievance Redress Mechanism

The contract for the transfer of land use rights used in this project is based on negotiation and mutual consultation, so complex disputes are unlikely to occur. However, there may be some unexpected problems during and after the land use. According to the Law of the People’s Republic of China on Mediation and Arbitration of Rural Land Contract Disputes, the project has established a transparent and effective grievance redress procedure to resolve disputes. Details of complaint and grievance mechanism is provided in chapter 5 of the Resettlement Plan. 7. Monitoring and Evaluation

The external monitoring agency will monitor and evaluate the negotiation process, the results of the negotiation, the internal land use adjustment or the payment of land subsidies; and report to the Xiangxi PMO and the ADB every six months.

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Appendix 4: Due Diligence Reviews for Completed Land Acquisition of Proposed Facilities

Due Diligence Reviews for Completed Land Acquisition of Proposed Facilities

Summary of DDR for completed LAR of Proposed Facilities DDR SN County/City Subproject Profiles Remarks conclusions 1.1.1: Huayuan County PLA with an area of No pending See DDR Huayuan Domestic Wastewater 20 mu completed in issues (I) Treatment and Mar 2017 1 3.9: Huayuan County PLA with an area of Zixia Lake Agriculture No pending See DDR Huayuan 30 mu completed in and Tourism Integration issues (I) Mar 2017 Demonstration State-owned forest Fenghuang 3.5 Ecological corridor land in history, 60 No pending See DDR 2 and construction mu for each of issues (II) Yongshun demonstration Fenghuang and Yongshun county. 3.6 Guzhang County 220.5 mu of state- Qifeng Lake agriculture owned existing No pending See DDR 3 Guzhang and forestry integration flood fluctuation issues (III) with tourism zoon 3.8: Longshan county PLA with an area of No pending See DDR 4 Longshan Banyue lake agriculture 17 mu completed in issues (IV) and tourism integration 2006 3.1: Guzhang county PLA with an area of local featured agricultural No pending See DDR 5 Guzhang 30 mu completed in products logistics and issues (V) Nov 2017 cold chain base 3.2: Yongshun County PLA with an area of local featured agricultural No pending See DDR 6 Yongshun 16.17 mu completed products logistics and issues (VI) by the end of 2017 cold chain base Unused state- 3.3: Jishou city local owned land with an featured agricultural No pending See DDR 7 Jishou area of 36.6 mu products logistics and issues (VII) acquired from an cold chain base enterprise in 2013 Rebuilding on the 3.4 Luxi county Xinnv exsiting land, No pending See DDR 8 Luxi agricultural products involving 16.1mu of issues (IX) trading center state-owned land.

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(I) 1.1.1: Huayuan County Domestic Wastewater Treatment and Subproject 3.9: Huayuan County Zixia Lake Agriculture and Tourism Integration Demonstration (Miaozu Intangible Cultural Heritage Exhibition Center)

1. Background

The proposed subproject 1.1.1: Huayuan county domestic wastewater treatment and subproject 3.9: Huayuan county Zixia lake agriculture and tourism integration demonstration, had completed land acquisition with a total area of 50 mu in Xingnongyuan Community of Huayuan Town in 2017, affecting 23 households and 95 persons in total. See the profiles in table 1.

Therefore, due diligence has been carried out by Xiangxi PMO with assistance of consultants, to identify that if there is any pending issues related to land use.

Table 1: Profiles of Subproject 1.1.1 and 3.9 and Completed Permanent Land Acquisition Location Lan Remarks SN Subproject Construction Activities Acquired (mu) Construct a centralized wastewater treatment station (3000 m3/d) in Xingnongyuan Huayuan community of Huayuan township Xingnongyuan county and 315 decentralized Community of See 1.1.1 domestic 20 wastewater treatment facilities Huayuan figure 1 wastewater (200 single household four-tank Town treatment wastewater purification systems and 115 grouped households wastewater treatment facilities). Huayuan county Zixia lake agriculture and tourism integration Xingnongyuan a Miaozu intangible cultural demonstration Community of See 3.9 heritage exhibition center to be 30 (Miaozu Huayuan constructed figure 2 intangible Town cultural heritage exhibition center)

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Figure 1: Land to be Occupied by Huayuan County Domestic Wastewater Treatment

Figure 2: Land to be Occupied by Huayuan County Zixia Lake Agriculture and Tourism Integration Demonstration (Miaozu Intangible Cultural Heritage Exhibition Center)

2. Procedures of PLA See table 2 for the main milestones of PLA procedures

Table 2: Milestones of Permanent Land Acquisition Procedures Completion Supporting SN Milestones Date Documents Remarks 1 Approval of PLA (together with other 18 Mar 2016 Hunan Province See figure land plots) State-owned Land 3 Doc No.417 [in 2016] 2 Announcement of PLA (together with Jan 2017 N/A other land plots) 3 Inventory of losses survey and May to Jul 2017 N/A verification 122

Completion Supporting SN Milestones Date Documents Remarks 4 Signing of land acquisition and Aug 2017 Signed LA See figure compensation agreements Agreements 5 5 Land pre-examination for subproject 8 May 2019 Huayuan- planning See figure 1.1 and land-pre- 4 examination-Doc No.82 [in 2019]

Figure 3: Approval of Permanent Land Acquisition (together with other land plots)

Figure 4: Land Pre-Examination for Subproject 1.1 123

3. Impacts of Completed Permanent Land Acquisition

See table 3 for the summary of PLA impacts.

Table 3: Summary of Permanent Land Acquisition Impacts In which PLA Subproject Town Village Paddy Dry AHs APs (mu) others land land Huayuan county

domestic wastewater 20 0 20 0 6 25 Huayuan Xingnongyuan treatment Huayuan county Miaozu Intangible Xingnongyuan 30 0 30 0 17 70 Cultural Heritage Huayuan Exhibition Center Total 50 0 50 0 23 95

4. Compensation Payment The applicable compensation policy was fully complied during land acquisition and compensation. See table 4 for the compensation compliance analysis. See figure 4 and 5 for the supporting docs of PLA agreements and payment records.

Table 4：Compensation Compliance Analysis Compensation Dry land Yong crops Specific policy followed Rate （yuan/mu）（A）Policy 38400 1600 Huayuan Government Office Doc Provision No. 68〔in 2015〕（B）Actual 38400 1600 Huayuan Government Office Doc Payment No. 68〔in 2015〕 (C) Dif. (B-A) 0 0

Figure 5: Permanent Land Acquisition Agreements Signed with Farmer Households (sample)

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Figure 6: Affected Persons were signing the Permanent Land Acquisition Agreements (in August 2017)

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Figure 7: Payment Record for Permanent Land Acquisition and Young Crops (sample)

5. Livelihood Restoration and Satisfaction Levels

According to the field survey and interviews by consultants, the livelihood of affected people has been fully restored through various means in past years, including cash compensation, agriculture development measure，non-agricultural employment, skills training, and social security measures, etc.

Out of all the 23 AHs, 15 were interviewed through phone and/or Wechat APP to evaluate their livelihood restoration status and satisfaction levels. See details in Table 5. Table 5: Survey Results Percentages No, Questions Answers (1) (2) （3）（4）（5） ① younger ② middle aged 1 How old are you? 20% 53.3% 26.7% 0 % 0 % ③elderly How many family 2 ① <=3 ② 35 13.3% 46.7% 40% 0% 0% member? ①illiterate ②primary school What’s your 3 ③ middle school ④ college 6.7% 33.3% 53.3% 6.7% 0% education level? and above Which livelihood ① cash compensation ② restoration agriculture development 4 measure was measures ③non-agriculture 100% 53.3% 80.0% 60.0% 46.7% provided to your employment ④skills training family? ⑤others （multiple） Are your satisfied ①very satisfied ②satisfied 5 with these ③ so-so ④ unsatisfied ⑤ 33.3% 53.3% 13.3% 0% 0% measure? very unsatisfied ① don’t know ② directly or How did you indirectly to village express your committee and/or village 6 opinions and cadres ③ directly or 0% 80% 20% 0% 0% thoughts during indirectly to local LA, if any? governments④ to media⑤ to the IAs How about the ① significantly increased ② 7 46.7% 40% 13.3% 0% 0% income increased ③basic stable ④ 126

Percentages No, Questions Answers (1) (2) （3）（4）（5） opportunities after decreased ⑤ significantly implementation of decreased these measures? How about the ① significantly increased ② income levels after increased ③basic stable ④ 8 33.3% 60% 6.7% 0% 0% implementation of decreased ⑤ significantly these measures？ decreased Are you satisfied ①very satisfied ②satisfied with your live after 9 ③ so-so ④ unsatisfied ⑤ 33.3% 60% 6.7% 0% 0% implementation of these measures? very unsatisfied Source: survey conducted by consultants of DIs in Jun 2020.

6. Public Consultation and Grievance Redress

As shown in section 2, all the policy and information related to LA had been broadly disclosed in Xingnongyuan Community of Huayuan Town. Inventory of losses, LA agreements signing, compensation payment as well implementation of livelihood restoration measures had been completed on basis of broad public consultation and participation in affected area. The land acquisition and compensation work was understood and supported by all 23 affected households in Xingnongyuan Community. The compensation fees had been paid in a full and timely manner following applicable regulations and policies, so the affected people were highly satisfied, and there was no complaints nor appeals received regarding PLA. Some minor issues, e.g. verification of measurement results, disputes of land ownership, had been timely and smoothly addressed at village level, explained villager cadres and representatives of APs during interview.

7. Conclusions

According to the due diligence review for completed PLA under Subproject 1.1: Huayuan county domestic wastewater treatment and Subproject 3.5: Huayuan county Zixia lake agriculture and tourism integration demonstration (Miaozu intangible cultural heritage exhibition center), the incomes of affected villagers had significantly increased compared with that before, benefiting from the rapid development around project area. The affected households were satisfied with the land compensation and restoration measures implemented by relevant government departments. Key information about development plan and land acquisition had been broadly disclosed in a timely manner, and the affected population had widely participated in the consultation activities on land acquisition, compensation and livelihood restoration activities. No complaints or appeals were received during the due diligence review, nor pending issues were observed/identified on land acquisition and compensation of the proposed facilities.

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(II) 3.5 Fenghuang and Yongshun Ecological corridor construction demonstration According to the IA of the subproject, it just involves re-planting of high quality trees and construction of small walking paths in the existing forest where they were stated- owned forest in the history. There are no any farmland in the forest. And there is no any land pending issue. See Figure II-1 and Figure ii-2 below for the statements provided by the IAs of Fenghuang and Yongshun accordingly.

Figure II-1 Statement issued by Fenghuang IA

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Figure II-2 Statement issued by Yongshun IA

(III) 3.6 Guzhang county Qifeng lake agriculture and tourism integration demonstration According to the NRB and DRC of Guzhang County, the 220.5mu of state-owned includes two parts, i) in the flood fluctuation zone, strict management around the area is undertaking by the county government and implementation agencies all the time of years. There is no vegetable on the land since there is no basic condition for planting. See below a statement provided by the IA.

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(IV) 3.8: Longshan county Banyue lake agriculture and tourism integration The proposed Subproject 3.4: Longshan county Banyue lake agriculture and tourism integration is located in Maicha Community of Liye Town in Longshan Count (nearby the original Changtan River bank), occupying construction land with a total area of 17 mu. The area where the subproject is located had completed the land acquisition in 2006 by Longshan County Government, with a total of 580 mu rural collective land acquired, not involving any house demolition impacts. The land acquisition started in 2005 and completed in 2006. According to a statement (see Statement 1 below) jointly provided by Longshang County NRB and DRC, the approval of transfer from farmland to construction land had been completed and obtained, while the land use certificate is still in application. The statement 1 also says all related land use approvals obtained previously were lost during the flood of June 22, 2016 when the office of document storage was fully flooded.

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Statement 1: Explanation of Apprval of Land Use In addition, there is a Statement 2 issued by the IA, indicating the land acquisition mentioned above were strictly compliant with applicable laws and regulations of central government, Hunan Province Government, Xiangxi Prefecture Government and Longshan County Government. The approval of land acquisition was issued by provincial government and compensation for land and ground attachments had been paid to affected villages and households following applicable policies. The production and living standards of affected people have been fully restored and improved after land acquisition. There are no any grievance and appeal records raised by affected people, nor any pending issues related to land acquisition and compensation. 131

Longshan County Liye Administration District Management Committee 2 June 2020

(Note: see the scanned copy in next page.)

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(V) 3.1: Guzhang County local featured agricultural products logistics and cold chain base 1. Background The proposed subproject 3.7, i.e. Guzhang County Locally-featured Agricultural Products Logistics Cold Chain, had completed its land acquisition with a total area of 30 mu in Shuqike Village of Guyang Town of Guzhang County in 2017, affecting 20 households and 85 persons in total. See the profiles in table 1. Therefore, due diligence has been carried out by Xiangxi PMO with assistance of consultants, to identify that if there is any pending issues related to land use. Table 1: Profiles of Subproject 3.7 and completed PLA Land LA SN Subproject Construction activities Location Acquired Completion Remarks (mu) Date Construction of logistics cold storage and sorting and packaging workshop and establishment of block chain Guzhang data management and County traceability system to (1) Locally- Shuqike enhance branding and featured Village of See 3.7 promote the marketing and 30 Nov 2017 Agricultural Guyang figure 1. development of locally- Products Town featured agricultural Logistics products such as kiwi fruit, Cold Chain citrus, melon, blueberry and vegetables; and (2) improve the products supply and services to tourists.

Figure 1: Land to be Occupied by Guzhang County Locally-featured Agricultural Products Logistics Cold Chain 2. Procedures of PLA See table 2 for the main milestones of PLA procedures. Table 2: Milestones of PLA Procedures SN Milestones Completion Supporting Remarks Date Documents 1 Approval of PLA (together with other Aug 2015 Hunan Province land plots) State-owned Land Doc No.1295 [in 2015]

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SN Milestones Completion Supporting Remarks Date Documents 2 Announcement of PLA (together with 13 Jan 2017 Guzhang See figure other land plots) Government Notice 1 No. 2 [in 2017] 3 Announcement of Land Jul 2017 Guzhang Land See figure Compensation and Resettlement Bureau Notice 2 Scheme (together with other land plots) 4 Inventory of losses survey and May to Sep N/A verification 2017 5 Signing of land acquisition and May to Nov Signed LA See figure compensation agreements 2017 Agreements 3 6 Land handover to local land bureau Dec 2017 N/A 7 Land pre-examination for subproject 30 Jul 2019 Guzhang- planning 3.7 and land-pre- examination-Doc No.25 [in 2019]

Figure 1: Announcement of Permanent Land Acquisition in January 2017

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Figure 2: Announcement of Land Compensation and Resettlement Scheme on 22 January 2017 (together with other land plots) 3. Impacts of Completed Permanent Land Acquisition See table 3 for the summary of PLA impacts. Table 3: Summary of PLA Impacts

In which Villager PLA Town Village AHs APs Group (mu) Tea Farmland garden others land Guyang Shuqike No.1 30 0 30 0 20 85

4. Compensation Rates and Payment The applicable compensation policy was fully complied during land acquisition and compensation. See table 4 for the compensation compliance analysis. See figure 4 and 5 for the supporting docs of PLA agreements and payment records. Table 4：Compensation Compliance Analysis Compensation Tea garden Yong crops Specific policy followed Rate land （yuan/mu）（A）Policy 32080 2000-5000 Guzhang Government Office Provision Doc No. 30〔in 2016〕（B）Actual 32080 2000-5000 Guzhang Government Office Payment Doc No. 30〔in 2016〕 (C) Dif. (B-A) 0

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Figure 4: Permanent Land Acquisition Agreements Signed with Farmer Households (samples)

Figure 5: Payment Record for Permanent Land Acquisition and Young Crops (samples) 136

5. Livelihood Restoration and Satisfaction Levels According to the field survey and interviews by consultants, the livelihood of affected people has been fully restored through various means in past years, including cash compensation, agriculture development measure，non-agricultural employment, skills training, and social security measures, etc. Out of all the 20 AHs, 12 were interviewed through phone and/or Wechat APP to evaluate their livelihood restoration status and satisfaction levels. See details in Table 5. Table 5: Survey Results Percentages No, Questions Answers (1) (2) （3）（4）（5） ①younger ②middle aged 1 How old are you? 16.7% 50.0% 33.3% 0% 0% ③elderly How many family 2 ① <=3 ② 35 8.3% 50.0% 41.7% 0% 0% member? ①illiterate ②primary What’s your 3 school ③middle school ④ 8.3% 25.0% 58.3% 8.3% 0% education level? college and above ①cash compensation ② Which livelihood agriculture development restoration measures ③non- 4 measure was 100% 58.3% 75.0% 58.3% 50.0% agriculture employment ④ provided to your ⑤ family? skills training others （multiple） Are your satisfied ①very satisfied ②satisfied 5 with these ③so-so ④unsatisfied ⑤ 33.3% 50.0% 16.7% 0% 0% measure? very unsatisfied ①don’t know ②directly or How did you indirectly to village express your committee and/or village 6 opinions and cadres③directly or 0% 83.3% 16.7% 0% 0% thoughts during indirectly to local LA, if any? governments④ to media⑤ to the IAs How about the ①significantly increased② income increased ③basic stable ④ 7 opportunities after 50.0% 41.7% 8.3% 0% 0% implementation of decreased ⑤significantly these measures? decreased How about the ①significantly increased② income levels increased ③basic stable ④ 8 after 41.7% 50% 8.3% 0% 0% implementation of decreased ⑤significantly these measures？ decreased Are you satisfied ①very satisfied ②satisfied with your live after 9 ③ ④ ⑤ 33.3% 58.3% 8.3% 0% 0% implementation of so-so unsatisfied these measures? very unsatisfied Source: Survey conducted by consultants of design institutes in June 2020. 6. Public Consultation and Grievance Redress As shown in section 2, all the policy and information related to LA had been broadly disclosed in Shuqike Village of Guyang Town. Inventory of losses, LA agreements signing, compensation payment as well implementation of livelihood restoration measures had been completed on basis of broad public consultation and participation in affected area. The land acquisition and compensation work was understood and

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supported by all 20 affected households in Shuqike Village. The compensation fees had been paid in a full and timely manner following applicable regulations and policies, so the affected people were highly satisfied, and there was no complaints nor appeals received regarding PLA. Some minor issues, e.g. verification of measurement results, disputes of land ownership, had been timely and smoothly addressed at village level, explained villager cadres and representatives of APs during interview. 7. Conclusions According to the due diligence review for completed PLA under Subproject 3.7: Guzhang County Locally-featured Agricultural Products Logistics Cold Chain, the incomes of affected villagers had significantly increased compared with that before, benefiting from the rapid development around project area. The affected households were satisfied with the land compensation and restoration measures implemented by relevant government departments. Key information about development plan and land acquisition had been broadly disclosed in a timely manner, and the affected population had widely participated in the consultation activities on land acquisition, compensation and livelihood restoration activities. No complaints or appeals were received during the due diligence review, nor pending issues were observed/identified on land acquisition and compensation of the proposed facility.

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(VI) 3.2: Yongshun County local featured agricultural products logistics and cold chain base 1. Background

The proposed subproject 3.8, i.e. Yongshun County Locally-featured Agricultural Products Logistics and Cold Chain Base, had completed its land acquisition with a total area of 16.17 mu in Shuaidong Group of Xincheng Community in Furong Town of Yongshun County by the end of 2017, affecting 5 households and 22 persons in total. See the profiles in table 1.

Therefore, due diligence has been carried out by Xiangxi PMO with assistance of consultants, to identify that if there is any pending issues related to land use.

Table 1: Profiles of Subproject 3.8 and completed PLA Location Land LA Remarks SN Subproject Construction activities Acquired Completion (mu) Date Construction of logistics cold storage and citrus By the end of processing workshop and 2017: the land establishment of Yongshun acquisition traceability system and e- county work was commerce platform to (1) Shuaidong locally- completedby enhance branding and Group of featured the end of promote the marketing Xincheng See 3.8 agricultural 16.17 2017 with the and development of Communit figure 1. products land pre- locally-featured y in Furong logistics examination agricultural products such Town and cold approval as kiwi fruit, citrus, Chain base which was Xiangxi black swine and obtained in cattle; and (2) improve Nov. 2017. the products supply and services to tourists.

Figure 1: Land to be Occupied by Yongshun county locally-featured agricultural products logistics and cold Chain base

2. Procedures of Permanent Land Acquisition

See Table 2 for the main milestones of PLA procedures.

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Table 2: Milestones of Permanent Land Acquisition Procedures SN Milestones Completion Supporting Remarks Date Documents 1 Land pre-examination 21 Nov 2017 Yongshun- land-pre- See figure examination-doc 1 No.21 [in 2017] 2 Pre-announcement of PLA 15 Sep 2019 Yongshun Land See figure Bureau Doc No. 26 2 [in 2017] 5 Approval of PLA (together with other 6 Mar 2019 State owned land See figure land plots) Doc No.148 [in 2019] 3 6 Announcement of PLA and 13 Mar 2019 Yongshun See figure Resettlement Scheme (together with Government Doc No. 4 other land plots) 23 [in 2019]

Figure 1: Land Pre-Examination Approval in 2017

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Figure 2: Pre-announcement of Permanent Land Acquisition in September 2017

Figure 3: Approval of Permanent Land Acquisition in March 2019 (together with other land plots)

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Figure 4: Announcement of PLA and Resettlement Scheme in March 2019 (together with other land plots)

3. Impacts of Completed PLA See table 3 for the summary of PLA impacts. Table 3: Summary of PLA Impacts In which Villager PLA Town Community AHs APs Group (mu) Paddy Dry others land land Furong Xincheng Shuaidong 16.17 16.17 0 0 5 22

4. Compensation Rates and Payment The applicable compensation policy was fully complied during land acquisition and compensation. See table 4 for the compensation compliance analysis. See figure 4 and 5 for the supporting docs of PLA agreements and payment records. Table 4：Compensation Compliance Analysis Compensation Paddy land Yong crops Specific policy followed Rate （yuan/mu）（yuan/mu）（A）Policy 40100 1000-4000 Yongshun Government Provision Doc No. 8〔in 2016〕（B）Actual 40100 1000-4000 Yongshun Government Payment Doc No. 8〔in 2016〕 (C) Dif. (B-A) 0 0

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Figure 4: Permanent Land Acquisition Agreements Signed with Farmer Households (samples)\

Figure 5: Payment Record for Permanent Land Acquisition, Young Crops, and Ground Attachments (samples)

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5. Livelihood Restoration and Satisfaction Levels

According to the field survey and interviews by consultants, the livelihood of affected people has been fully restored through various means in past years, including cash compensation, agriculture development measure， non-agricultural employment, skills training, and social security measures, etc.

All the 5 AHs were interviewed through phone and/or Wechat APP to evaluate their livelihood restoration status and satisfaction levels. See details in Table 5.

Table 5: Survey Results Percentages（%） No, Questions Answers (1) (2) （3）（4）（5） ①younger ②middle aged ③ 1 How old are you? 20% 40% 40% - - elderly How many family 2 ① <=3 ② 35 0% 60% 40% - - member? ①illiterate ②primary school What’s your 3 ③middle school ④college 0% 40% 60% 0 0 education level? and above ①cash compensation ② Which livelihood agriculture development restoration measure 4 measures ③non-agriculture 100% 20% 80% 60% 60% was provided to your employment ④skills training family? ⑤others （multiple） ①very satisfied ②satisfied ③ Are your satisfied 5 so-so ④unsatisfied ⑤very 40% 60% 0% 0 0 with these measure? unsatisfied ①don’t know ②directly or How did you express indirectly to village committee your opinions and and/or village cadres③ 6 0% 80% 20% 0 0 thoughts during LA, directly or indirectly to local if any? governments④ to media⑤ to the IAs How about the ①significantly increased② income opportunities increased ③basic stable ④ 7 40% 40% 20% 0 0 after implementation decreased ⑤significantly of these measures? decreased How about the ①significantly increased② income levels after increased ③basic stable ④ 8 40% 40% 20% 0 0 implementation of decreased ⑤significantly these measures？ decreased Are you satisfied ①very satisfied ②satisfied ③ with your live after 9 ④ ⑤ 40% 40% 20% 0 0 implementation of so-so unsatisfied very these measures? unsatisfied Source: survey conducted by consultants of DIs in Jun 2020.

6. Public Consultation and Grievance Redress

As shown in section 2, all the policy and information related to LA had been broadly disclosed in Xincheng Community. Inventory of losses, LA agreements signing, compensation payment as well implementation of livelihood restoration measures had been completed on basis of broad public consultation and participation. The land acquisition and compensation work was understood and supported by all 5 affected households in Xincheng Community. The compensation fees had been paid in a full and timely manner following applicable regulations and policies, so the affected people 144

were highly satisfied, and there was no complaints nor appeals received regarding PLA. Some minor issues, e.g. verification of measurement results, disputes of land ownership, had been timely and smoothly addressed at village level, explained villager cadres and representatives of APs during interview.

7. Conclusions

According to the due diligence review for completed PLA under Subproject 3.8: Yongshun county locally-featured agricultural products logistics and cold Chain base, the incomes of affected villagers had significantly increased compared with that before, benefiting from the rapid development around project area. The affected households were satisfied with the land compensation and restoration measures implemented by relevant government departments. Key information about development plan and land acquisition had been broadly disclosed in a timely manner, and the affected population had widely participated in the consultation activities on land acquisition, compensation and livelihood restoration activities. No complaints or appeals were received during the due diligence review, nor pending issues were observed/identified on land acquisition and compensation of the proposed facility.

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(VII)3.3: Jishou city local featured agricultural products logistics and cold chain base The proposed Jishou city locally-featured agricultural products production and processing base is located in Tuyan Community in Qianzhou East District of Jishou City, with a total area of 36.6 mu state-owned land to be occupied, not involving any affected people. This land plot was reserved construction land held by Xiangxi Prefecture Huarui Metallurgical Co. Ltd., who got the land use rights from local government in October 2010 through bidding procedure but not actually started civil works construction nor used the land afterward.

In December 2013, due to the land use master plan adjustment of Qianzhou East District, the Jishou City Land and Resources Bureau negotiated with Huarui Metallurgical Co. Ltd. to withdraw the land use rights, and then signed a contract to provide land compensation to later, in which the compensation fees included (i) the cost that Xiangxi Prefecture Huarui Metallurgical Co. Ltd. obtained the land use rights in 2010, and (ii) the fund interest of land cost in past 3 years. The compensation had been fully and timely paid to the Xiangxi Prefecture Huarui Metallurgical Co. Ltd., following the contract signed between two parties.

In conclusion, the land to be occupied by the proposed Jishou city locally-featured agricultural products production and processing base is a reserved state-owned construction land, without any pending issues related to land use.

Jishou City Natural Resources Bureau 10 June 2020

(Note: see the signed contract in next page)

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(Scanned Contract Between Jishou City Land and Resources Bureau and Huarui Metallurgical Co. Ltd. Signed in Dec 2013 )

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(VIII) 3.4 Luxi County Xinnv Agricultural Products Trading Center The subproject of Luxi Xinnv Agricutural Product Trading Center will be rebuilt on existing site. According to the IA, the land acquisition of the site was implemented in 1990s and the land use certificate was obtained in 2001. See the figure VIII-1

Figure VIII-1: Land Use Certificate According to the IA, the current market is very old, poor structure and could be unsafe if it is overused, especially in raining seasons, which has baddly affected the business of the current tenants, each of them renting a small place of the market for vegetable business in yearly basis. As the IA provided, about 230 tenants can be contained when it is fully functioned, however, many tenants were moving to other places, and most places of the market are closed. The rebuilding of the market will be started from the area where no any business opening, and thus, it will not affect the current business of the existing tenants. When construction of the first part completed, the tenants will move into and continue their business, while the other part of construction will be implemented accordingly.

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Appendix 5: Resettlement Due Diligence for Existing Facilities Linked to the Project

1. Overview According to the FSR, the rural waste and sanitation management facilities and services improvement under Output 1 will involve wastewater treatment and garbage disposal at some existing facilities. This Appendix is undertaking the Due Diligence of Resettlement for these LAR completed sites. Table 1 indicates the summary of lands at these facilities.

Table 0-1: Summary of Lands for the Existing Facilities Land Area No. Name of Facilities Status Land Owner approved/c (mu) ertified Wastewater Treatment Stations

Longshan County Liye In operation State-owned， 1 4.28 Y Wastewater Treatment Station since 2013 PLA in 2014

Luxi County Pushi Wastewater In operation State-owned， 2 15.6 Y Treatment Station since 2018 PLA in 2016 Garbage Disposal Plants/Incineration Plants

Huayuan County Garbage In operation State-owned， 3 121.73 Y Landfill since 2010 PLA in 2006

State-owned， Longshan County Liye Garbage In operation 4 86.9 State-owned， Y Landfill since 2012 PLA in 2010

In operation State-owned， 5 Luxi County Garbage Landfill 85.5 Y since 2010 PLA in 2008 Jishou Tai'erchong Garbage In operation State-owned， 6 399.27 Y Landfill since 2009 PLA in 2017 Guzhang County Garbage In operation State-owned， 7 128.32 Y Landfill since 2012 PLA in 2009 Fenghuang Qingshanxi In operation State-owned， 8 Construction Waste Disposal 82.32 Y since 2008 Site PLA in 2007 Yongshun County Garbage In operation State-owned， 9 113.25 Y Landfill since 2007 PLA in 2006

(I) Longshan County Liye Wastewater Treatment Station Longshan County Liye Wastewater Treatment Station is located at the northwest of the crossing area of Changsha Road and Tianpingqiu Road, covering 4.28mu of land. See Figure 1 for the location on the map.

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Figure 1: Location and Land Acquisition Boundary of Liye Wastewater Treatment Station There is no residential house demolition impact within the boundary of the plant. Compensation for land acquisition and attachments were implemented in accordance with the Land Administration Law of PRC (2004) and Xiangxi local implementation requirements. According to the Land Planning Permit which issued in December 2015 (see Figure 2), land using for this subproject complies with the Land Using General Plan. As mentioned ( Figure 3), the land acquisition of the site was conducted in 2013. Prior to commencement of construction, consultation with local affected people shows people were informed with the project information and they supported the construction of the plant. As confirmed with the owner, there is no any remaining issues related to land acquisition.

Figure 2: Land Planning Permit

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Figure 3: Statement of Land Acquisition issued by Longshan County Development and Reform Committee

(II) Luxi County Pushi Wastewater Treatment Station Luxi County Pushi Wastewater Treatment Station is located at Group 3 of Yinjiaqiao Neighborhood in Pushi Town of Luxi County, covering 15.6mu of land. See Figure 4 for the layout of the Pushi Wastewater Treatment Station.

Figure 4: Layout of the Pushi Wastewater Treatment Station According to the land acquisition agreement, the land acquisition was implemented in April and May 2016. The Land Planning Permit (Figure 5) which issued in September 2016 as well as the Approval of Land Allocation (Figure 6) issued on 31 October 2016 151

shows the land using for this subproject complies with the Land Using General Plan, and complies with regulated approvals.

Figure 5: Land Planning Permit Figure 6: Approval of Land Allocation There is no residential house demolition impact within the boundary of the plant. In total, 22 households with 63 people were affected by land acquisition in 2016. Compensation for land acquisition and attachments were implemented in accordance with the Land Administration Law of PRC (2004) and Notice of Luxi County on Land Acquisition and Compensation (No.10 of Luzhengfa [2013]). See Figure 7 for a sample of compensation agreement and Figure 8 for the Payment record.

Figure 7: A Sample of Compensation Figure 8: Payment Record Agreement 152

As indicated in the Statement of Land Acquisition issued by Luxi House and Rural- Urban Construction Bureau (See Figure 9), the APs supported the construction of the project, and there were no any LAR remaining issues.

Figure 9: Statement of Land Acquisition issued by Luxi House and Rural–Urban Construction Bureau

(III) Huayuan County Garbage Landfill Huayuan County Garbage Landfill is located at Tatyouchong area of Yixi Village, Huyua Town of Huayuan County, covering 121.73mu of land. See Figure 10 for the layout of the Landfill.

Figure 10: Layout of Huayuan County Garbage Landfill 153

According to the Land Certificate which was obtained on 20 October 2011( see Figure 11and Figure 12), the land had been acquired lawfully and the land use of Huayuan Garbage Landfill complies with the Land Using General Plan.

Figure 11: Land Certificate Book (Preface) Figure 12: Land Certificate There is no residential house demolition impact within the boundary of the plant. In total, 58 households with 176 people were affected by land acquisition in 2006. Compensation for land acquisition and attachments were implemented in accordance with the Land Administration Law of PRC (2004) and Measures of Compensation and Resettlement for Land Acquisition and House Demolition in Xiangxi Autonomous Prefeacture (No.5 of Zhouzhengfa [2003]). See Figure 13 Figure 7for a sample of compensation agreement and Figure 14 for the Payment record.

Figure 13: A Sample of Compensation Agreement Figure 14: Payment Record As indicated in the Statement of land acquisition issued by Huayuan County DRC (See Figure 15), the APs supported the construction of the project, and there were no any LAR remaining issues.

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Figure 15: Statement of land acquisition issued by Huayuan County Development and Reform Committee

(IV) Longshan County Liye Garbage Landfill Longshan County Liye Garbage is located at Luojiatian, Yanchong Village, Liye Town of Longshan County, covering 86.9mu of land. See Figure 16 for the layout of the Landfill.

Figure 16: Location of the Longshan County Liye Garbage Landfill 155

The approval on transferring agricultural land to construction land was obtained on 25 August 2010 (see Figure 17) and the land acquisition and resettlement work was completed by October 2010. According to the Construction Land Use Planning Permit which issued on 4 March 2011, land using for this subproject complies with the Land Using General Plan.

Figure 17: Approval on Transferring Figure 18: Construction Land Use Agricultural Land to Construction Land Planning Permit

Per the project owner, there’s no residential house demolition impact within the boundary of the plant. In total, 13 households with 53 people were affected by land acquisition. Compensation for land acquisition and attachments were implemented in accordance with the Land Administration Law of PRC (2004) and Notice of Hunan Province Land Acquisition and Compensation Standards (XZF[2013] No.43). As checked with the IAs, the records of LA agreement and compensation were not available for review due to lack of documentation because the acquisition was done long time ago. As the statement as Figure 19 below issued by Longshan County DRC, the APs supported the construction of the project, and there were no any LAR remaining issues.

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Figure 19: Statement of Land Acquisition issued by the Longshan County Development and Reform Committee

(V) Luxi County Garbage Landfill Luxi County Garbage Landfill is located at Yangliuxi area of Baisha Townin Luxi County, covering 85.5mu of land. See Figure 20 for the layout of the Landfill.

Figure 20: Location of the Luxi County Garbage Landfill 157

According to the Land Use Right Certificate which issued on 20 December 2013 (see Figure 21), the land use of Luxi garbage landfill complies with the land administration law of PRC and other related regulations.

Figure 21: Land Use Right Certificate According to the statement issued by the Luxi County House and Rural-Urban Construction Bureau (see Figure 22), the land was originally stated-owned forest land, therefore, there was no land acquisition and house demolition issue. Hence, there were no any LAR remaining issues.

Figure 22: Statement of Land Acquisition issued by the Longshan County Development and Reform Committee

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(VI) Jishou Tai'erchong Garbage Landfill Jishou Tai’erchong Garbage Landfill is located Jizhuang Village, Qianzhou Sub-district of Jishou City, covering 399.27mu of land. See Figure 23 for the layout of the Landfill.

Figure 23: Location of the Jishou Tai’erchong Garbage Landfill

As checked with the Land Use Right Certificate as Figure 24, the land acquisition has completed all required regulation requirements. There is no residential house demolition impact within the boundary of the plant. In total, 36 households with 114 people were affected by land acquisition that started in 2015 and completed in 2017. Compensation for land acquisition and attachments were implemented in accordance with the Land Administration Law of PRC (2004) and Notice of Luxi County on Land Acquisition and Compensation (No.10 of Luzhengfa [2013]). See Figure 25 for a sample of compensation agreement and Figure 26 for the Payment record.

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Figure 24: Land Use Right Certificate

Figure 25: A Sample of Compensation Figure 26: Payment Record Agreement As the statement of land acquisition issued by Jishou DRC (see Figure 27), the APs supported the construction of the project, and there were no any LAR remaining issues.

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Figure 27: Statement of Land Acquisition issued by Jiushou Development and Reform Committee

(VII)Guzhang County Garbage Landfill Guzhang County Garbage Landfill is located at Caijia Village, Guyang Town of Guzhang County, covering 128.32mu of land, including 29.58mu of cultivated land, 60mu of forest land, 28.50mu of garden field and 10.23mu of unused land. See Figure 28 for the location of the Landfill on the map.

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Figure 28: Location of the Guzhang County Garbage Landfill Land acquisition of this project was completed by 2009, the land use approval was and the land use right certificate was obtained accordingly. See Figure 29 for the land use approval and Figure 30 for the land use right certificate.

Figure 29: Approval on Transferring Figure 30: State-Owned Construction Agricultural Land to Construction Land Land Use Right Certificate There is no residential house demolition impact within the boundary of the plant. There were 28 households with 97 people affected by land acquisition. According the statement issued by Guzhang county government, compensation for land acquisition

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and attachments were implemented in accordance with the related laws and regulations. But related compensation record had been lost due to lack of documentation for those of ten years ago. See Figure 31 for the statement issued by the Guzhang County-level DRC where it indicated there were no any LAR remaining issues.

Figure 31: Statement of Land Acquisition issued by the Guzhang County Development and Reform Committee

(VIII) Fenghuang County Garbage Landfill Fenghuang county garbage landfill is located at Gaofeng Village in Tuojiang Town, Fenghuang County, covering 82.32mu of land. See Figure 32 for the layout and location on map of the Landfill.

Figure 32: Location of Fenghuang County Garbage Landfill According to the Allocation Book of State-Owned which was obtained in May 2007, the Fenghuang Garbage Treatment Co., Ltd obtained the lawfully ownership of the land

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through Fenghuang county government allocation. See Figure 33 for the Allocation Book of State-Owned Land.

Figure 33: Allocation Book of State-Owned Land According a statement issued by Fenghuang county government, the land acquisition of the site was implemented in 2007. And, the land ownership was turned over for several rounds, therefore, it is not able to find the original land acquisition document. However, Fenghuang county government confirmed, there is no any LAR legacy issue for this site. See Figure 34 for the statement issued by Fenghuang Development and Reform Commission of the county government.

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Figure 34 :Statement of Land Acquisition issued by Fenghuang County Development and Reform Committee

(IX) Yongshun County Garbage Landfill Yongshun County Garbage Landfill is located at Tongyoushu, Chana Village, Lingxi Town of Yongshun County, covering 113.25 mu of land. See Figure 35 for the layout of the Landfill.

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Figure 35: Layout of the Yongshun County Garbage Landfill Land acquisition of this project was implemented in 2006, and the land use approval (or approval of tranfer from farmland to construction land issued by the Hunan provincial NRB) was obtained in December 2007 as shown as Figure 36. The Land Use Certificate may have been lost. The IA indicated it will be further checked and reapplication may be made if it is lost indeed.

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Figure 36: Land Acquisition Approval According to the Land Acquisition Approval, it recorded that there were 3 households with 232 m2 of house demolition, while no recording on households and personnel impacts on land acquisition. As the statement issued by the Yongshun County-level DRC (see Figure 37), there is no record on land acquisition and house demolition due to the long time and lack of documentation, however, it has confirmed all LAR impacts were compensated and resettled following related regulations and there are no any LAR remaining issues.

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Figure 37: Statement of Land Acquisition issued by the Yongshun County Development and Reform Committee

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Appendix 6: Relevant Laws, Regulations, and Policies of the Central and Local Governments

1. Land Administration Law of the People’s Republic of China (revised in 2019)

Article 2 The State may expropriate or requisition land according to law and make compensation on public interests. Article 44 Where the occupation of land for construction involves the conversion of farmland into construction land, the formalities for examination and approval of farmland transference shall be gone through. The conversion of permanent basic farmland into construction land shall be approved by the State Council. Where farmland is expropriated, the formalities for examination and approval of farmland transference shall be processed in advance in accordance with the provisions of Article 44 of this Law. Article 47 Where land is expropriated by the State, it shall be announced and implemented by the local people's government at or above the county level after approval in accordance with legal procedures. Where a local people's government at or above the county level intends to apply for land acquisition, it shall carry out a survey of the current situation of the land to be expropriated and a risk assessment of social stability. The scope of the expropriation, the status of the land, the purpose of acquisition, the compensation standard, the resettlement and social security shall be announced at least 30 days within the scope of the township (town), village or village groups where the land to be expropriated, and the opinions of the rural collective economic organizations and their members, villagers’ committees and other interested parties shall be heard. Where most members of rural collective economic organizations whose land is expropriated hold that the compensation and resettlement plan for land acquisition does not conform to the provisions of laws or regulations, the local people's government at or above the county level shall organize a hearing and revise the plan in accordance with the provisions of laws, regulations and the hearing. The owner of the land to be expropriated and the holder of the right to use the land shall, within the time limit specified in the public announcement, go through compensation registration by presenting the evidence of ownership of the immovable property. The local people's government at or above the county level shall organize the relevant departments to calculate and implement the relevant expenses, ensure that they are in place in full and sign an agreement with the owner or user of the land to be expropriated on compensation and resettlement. Where it is really difficult to reach an agreement, it shall be stated truthfully when applying for land acquisition. The local people’s governments at or above the county level may apply for land acquisition after the completion of the relevant preliminary work. Article 48 In acquisition of land, fair and reasonable compensation shall be given to ensure that the original standard of living of the land-expropriated peasants is not reduced and that the long-term livelihood is guaranteed. In acquisition of land, land compensation fees, resettlement fees and compensation fees for villagers' houses, other ground attachments and young crops shall be paid

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promptly and in full in accordance with the law, and social security expenses for the farmers have been expropriated shall be arranged. The standards for land compensation fees and resettlement subsidy fees for acquiring agricultural land shall be determined by the provinces, autonomous regions and municipalities directly under the Central Government through the formulation and publication of the comprehensive land price of the district. The comprehensive land price shall be formulated taking into account the original land use, land resource conditions, land output value, land location, land supply and demand relationship, population and level of economic and social development, and shall be adjusted or re- announced at least once every three years. The compensation standards for the acquisition of land other than agricultural land, ground attachments and young crops shall be formulated by the provinces, autonomous regions and municipalities directly under the Central Government. In accordance with the principles of compensation before relocation and improvement of living conditions, respect the willingness of rural villagers and give fair and reasonable compensation by means of rearranging homestead for housing, providing resettlement houses or monetary compensation, and compensate for the expenses of relocation and temporary resettlement caused by acquisition, so as to safeguard the rural villagers’ right to live and their legitimate rights and interests in housing property. The local people’s government at or above the county level shall incorporate the farmers whose land has been expropriated into the corresponding pension and other social security systems. The social security expenses of the farmers whose land is expropriated are mainly used for the endowment insurance and other social insurance payment subsidies of the eligible land-expropriated farmers. Article 49 The rural collective economic organizations whose land is expropriated shall make public to their members the balance of payment position of the compensation fees for the acquisition of land and accept supervision. It is prohibited to seize or misappropriate the land compensation fees and other related fees of the land -expropriated units. Article 50 The local people’s governments at various levels shall support the rural collective economic organizations and peasants whose land has been expropriated to engage in development and management and set up enterprises. Article 59 The construction of township (town) villages, such as township enterprises, township (town) villages public facilities, public welfare undertakings, and rural villagers’ houses, shall be rationally distributed, comprehensively developed and completed with supporting facilities in accordance with the plans of villages and market towns. The construction land shall conform to the overall plan of township (town) land use and the annual plan of land use, and shall go through the examination and approval procedures in accordance with the provisions of Articles 44, 60, 61 and 62 of this Law. Article 64 The users of collective construction land shall use the land in strict accordance with the purposes determined by the overall plan and urban and rural planning of land use. 2. Guidelines on Improving the System of Land Acquisition Compensation and Resettlement (the Ministry of Land and Resources made [2004] No.238) Agricultural production resettlement. The acquisition of the peasant’ collective land outside the urban planning area shall, first of all, make it necessary for the peasants who have been expropriated to cultivate the land and continue to engage in agricultural production through the use of the rural collective mobile land, the contracted land voluntarily returned by the contracted households, the transfer of the contracted land and the newly increased cultivated land by the land development and consolidation.

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Re-employment resettlement. Conditions should be actively created to provide free labor skills training to the farmers whose land have been expropriated and to arrange corresponding jobs. Under the same conditions, land use units should give priority to the employment of land-expropriated farmers. In expropriating the collective land of peasants within the planned urban areas, the peasants who are landless as a result of land acquisition shall be incorporated into the urban employment system and a social security system shall be established. Benefit-sharing compensation settlement. With respect to the project land with long- term stable income, on the premise of peasant households’ willingness, the rural collective economic organizations whose land is expropriated may, through consultation with the land-use units, become a shareholder with the compensation and resettlement fees for land acquisition, or become a shareholder with the approved land use right of the construction land. Rural collective economic organizations and farmers obtain income in the form of preferred stock through the contract agreement. Resettlement of migrants from other places. If it is indeed unable to provide the basic production and living conditions for the peasants whose land has been expropriated in this region, the government may, on the premise of fully soliciting the opinions of the rural collective economic organizations and farmers whose land has been expropriated, organize the resettlement of migrants in different places in a unified manner. The provisions of the document on information disclosure and supervision are as follows:

Disclose the items of land acquisition approval. The Ministry of Land and Resources and the provincial departments of land and resources shall, in addition to the special circumstances such as the state secrecy regulations, publicize the items of land acquisition approval to the public through the media. The district (city) department of land and resources shall, in accordance with the provisions of the Measures for the Announcement of Land Acquisition, announce the items of land acquisition approval in the village or group where the land is expropriated. 3. Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28) Strict protection of basic farmland. The basic farmland is the basis for ensuring national food security. Once the basic farmland is delimited, no unit or individual may occupy it or change its use without authorization, which is a “red line” that cannot be crossed. Those meet the statutory requirements and need to change or occupy basic farmland must report to the State Council for approval; for those have been approved to occupy the basic farmland, the compensation for land acquisition shall be carried out in accordance with the highest statutory standard; for those have supplemented the cultivated land by paying reclamation fees, the payment standard shall be carried out in accordance with the local highest standard. Improve land acquisition compensation measures. The local people’s governments at or above the county level shall take practical measures to ensure that the living standards of the farmers whose land has been expropriated will not be lowered because of land acquisition. It is necessary to ensure that land compensation fees, resettlement fees, and compensation for ground attachments and young crops are paid in full and on time in accordance with the law. In accordance with the provisions of the current law, where the payment of land compensation fees and resettlement subsidies are not sufficient to maintain the original standard of living of the land-expropriated farmers and are insufficient to pay the social security expenses for the landless farmers resulting from the acquisition of land, the people’s governments of provinces,

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autonomous regions and municipalities directly under the Central Government shall approve the increase in the resettlement subsidy fees. If the sum of the land compensation fees and the resettlement subsidy fees reaches the legal upper limit but is not enough to maintain the original living standard of the farmers whose land has been expropriated, the local people’s government may subsidize with the fee of using state-owned land. The people’s governments of provinces, autonomous regions and municipalities directly under the Central Government shall formulate and publish the unified standards for the annual output value or the land area comprehensive value of land acquisition in each city and county, and the land requisition acquisition shall be at the same price as the land expropriated. The land acquisition costs for national key construction projects must be included in the budget estimate in full. Proper resettlement of land-expropriated farmers. The local people’s governments at or above the county level shall formulate specific measures to ensure the long-term livelihoods of farmers whose land has been expropriated. For projects with stable income, the farmers may become shareholders with the right to use construction land approved according to law. In the planned urban areas, the local people’s government shall incorporate the farmers who have no land because of land acquisition into the urban employment system and establish the social security system for them. In the case of acquisition of land collectively-owned by the farmers outside the planned urban areas, the local people’s government shall, within its own administrative area, reserve the necessary cultivated land or arrange corresponding jobs for the farmers who have been expropriated. Landless farmers who do not have basic conditions for production and living shall be resettled to other places. The labor and social security department shall, together with the relevant departments, put forward the guidelines on the establishment of employment training and social security system for land-expropriated farmers as soon as possible. Improve land acquisition procedures. In the process of land acquisition, the farmers’ collective land ownership and their contracted land management rights should be safeguarded. Before the land acquisition is submitted for approval according to law, the farmers should be informed of the use, location, compensation standard and approaches of resettlement of the land to be expropriated. The results of the investigation on the status of land to be expropriated must be confirmed by the the rural collective economic organizations and farmers. Where it is indeed necessary, the department of land and resources shall organize hearings in accordance with the relevant provisions. The relevant materials informed and confirmed by the farmers shall be taken as the necessary materials for approval of land acquisition. It is necessary to speed up the establishment and improvement of a mechanism for coordinating and adjudicating disputes over compensation and resettlement of land acquisition, so as to safeguard the legitimate rights and interests of land-expropriated farmers and land users. Approved land acquisition matters shall be made public with the exception of special circumstances. Strengthen the supervision over implementation process of land acquisition. Where compensation and resettlement for land acquisition is not implemented, the expropriated land shall not be forcibly used. The people’s governments of provinces, autonomous regions and municipalities directly under the Central Government shall, in accordance with the principle that land compensation fees shall mainly be used for land-expropriated farmers, formulate measures for the distribution of land compensation fees within rural collective economic organizations. The rural collective economic organization whose land has been expropriated shall make public to the members the income, expenditure and allocation of the compensation fees for land acquisition and accept supervision. Departments of agriculture and civil affairs should

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strengthen supervision over the allocation and use of compensation fees for acquisition of land within rural collective economic organizations. 4. Guidelines on Employment Training and Social Security for Land-expropriated Farmers (SC [2006] No.29) The employment training and social security of land-expropriated farmers will be implemented as an important part of the reform of the land acquisition system. The local people’s governments at all levels should strengthen employment training and social security in order to integrate the employment of land-expropriated farmers into the government’s economic and social development plan and annual plan from the perspective of coordinating the harmonious economic and social development of urban and rural areas. Establish a social security system suited to the characteristics and needs of farmers whose land has been expropriated as soon as possible, take effective measures to provide employment training and social security funds, promote the employment of land-expropriated farmers and their integration into urban society, as well as ensure that the living standards of land-expropriated farmers will not be lowered by land acquisition, thus ensuring their long-term livelihoods. Define the scope, highlight the key points, and make overall plans and take all factors into consideration. The objects of employment training and social security for land- expropriated farmers refer to the registered agricultural population who lost all or most of their land due to the unified acquisition of rural collective land by the government, and who enjoy the rural collective land contract rights at the time of land acquisition. The specific objects shall be determined by the localities. The employment training and social security of land-expropriated farmers should focus on the newly land- expropriated farmers, the land-expropriated farmers in the working age as the key target of employment training, and the older and elderly people as the key target of social security. For the newly land-expropriated farmers who meet the requirements, the government should make employment training arrangements and implement corresponding social security policies at the same time of land acquisition. Give targeted guidance according to different situations inside and outside the urban planning area. All localities should properly solve the problems of employment training and social security problems of land-expropriated farmers according to the actual situations. In the planned urban areas, the local people’s government shall incorporate the land-expropriated farmers into the urban employment system and establish the social security system for them. In the case of land acquisition outside the planned urban areas, the local people’s government shall, within its own administrative area, reserve the necessary cultivated land or arrange corresponding jobs for the farmers who have been expropriated and incorporate them into the rural social security system. The land-expropriated farmers who do not have basic conditions for production and living shall be resettled to other places and incorporated into the social security system at the place of resettlement. Promote the employment of land-expropriated farmers. Adhere to a market-oriented employment mechanism, coordinate urban and rural employment, develop employment posts through multiple channels, and improve the employment environment. Encourage and guide all kinds of enterprises, public institutions and communities to absorb the farmers whose land has been expropriated, and support the farmers in finding jobs on their own and starting their own businesses. In planned urban areas, the land-expropriated farmers should be incorporated into the unified unemployment registration system and urban employment service system. Unemployed land-expropriated farmers can register for unemployment at local public employment services agencies. The public employment service agencies shall promptly handle the matter and actively provide services such as employment

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consultation, employment guidance, employment training and job introduction to the land-expropriated farmers, so as to promote the employment of the farmers with aspirations to work within their labor ages as soon as possible. Those who have not yet been employed at the labor age but have the desire for employment may enjoy the relevant supportive policies to promote employment and re-employment as prescribed. Implement the responsibility of employment and resettlement of land-expropriated farmers. The government should actively develop public welfare positions for the farmers whose land has been expropriated, urge and guide land-use units to give priority to arrange jobs for the farmers whose land has been expropriated. The employment resettlement may adopt the way that the land use unit directly provides the employment posts and signs the labor contract with the resettlement objects meeting the employment conditions, or the land use unit, the employment service agency and the land-expropriated farmers may sign a contract to entrust the resettlement. Strengthen the training of land-expropriated farmers. In planned urban areas, all localities should formulate specific vocational training plans suited to the characteristics of farmers whose land has been expropriated, and help them find jobs through order-oriented training and other means. Outside the planned urban areas, all localities should actively carry out vocational training in view of the characteristics of farmers whose land has been expropriated, so as to improve their abilities to compete for jobs and start businesses. Guarantee basic living standards and long-term livelihoods. All localities should take various measures to guarantee the basic living standards and long-term livelihood of land-expropriated farmers in light of their actual conditions. For the land-expropriated farmers in the urban planning areas, the measures for maintaining the basic living standard and endowment security shall be formulated according to the local economic development level and the different age groups of the land-expropriated farmers. Those who meet the minimum living security conditions for urban residents shall be included in the scope of minimum living security for urban residents according to the regulations. Where a pilot urban medical assistance system has been carried out, those who are eligible for the conditions of medical assistance shall be included in the scope of assistance in accordance with the provisions. Where conditions permit, the land-expropriated farmers can be included in the coverage of endowment, medical, unemployment and other social insurances of urban workers, and their basic livelihood can be guaranteed through the existing urban social security system. For land- expropriated farmers outside the planned urban area, where the rural social endowment insurance system has already been established, the pilot rural cooperative medical care system has been carried out and the rural minimum living security system has been implemented, the farmers should be included in the corresponding coverage according to the relevant provisions. In the areas where the above-mentioned systems have not been established, the local people’s government may take various forms to guarantee the basic life of the land-expropriated farmers according to the actual situation, provide necessary endowment and medical services, and include qualified persons in the scope of local social assistance. Reasonable determination of the level of security. The basic living and endowment security level of land-expropriated farmers should not be lower than the local minimum living security standard. Implementation of employment training and social security funds. The funds needed to carry out the employment training for land-expropriated farmers are financed from the local financial expenditure; and the funds needed for social security are uniformly arranged from the increased resettlement subsidy fess and the land compensation

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fees approved by the local government. If the two fees are not enough to be paid, the local government may subsidize with the fee of using state-owned land. Where conditions permit, the local finance and the collective economy should give greater support to farmers whose land has been expropriated and encourage them to participate in urban and rural social insurance. 5. Notice of the Ministry of Labour and Social Security Ministry of Land Resources on Issues Concerning Effective Implementation of Social Security Work for Land- expropriated Farmers (MOLSS [2007] No .14) The social security objects, projects, standards and methods for raising fees of land- expropriated farmers should be included in the procedures such as notification and hearing before the approval of land acquisition, so as to safeguard the democratic rights of the land-expropriated farmers to be informed and participate. The people’s government of urban area should give an explanation of the above situation when submitting the materials for the approval of land acquisition. The labor and social security departments and the land and resources departments should strengthen communication and coordination to jointly examine the implementation of social security for farmers whose land have been acquired. Where land acquisition is to be submitted to the provincial government for approval, the municipal (prefectural) labor and social security departments shall provide review comments on the above- mentioned explanatory materials; where land acquisition is to be submitted to the State Council for approval, the provincial labor and social security department shall provide review comments. According to Decree No.100 of NS, all income from the transfer of use rights of state- owned land shall be paid in the local treasury, and all expenditures shall be arranged from the land transferLURT income through the budgets of the local funds. The social security expenses of the land-expropriated farmers shall, within 3 months from the date of approval of the land acquisition compensation and resettlement plan, be assigned to the “special account of the social security funds of the land-expropriated farmers” in full according to the standards, and be credited to the individual account or the pooling account according to the regulations. 6. Notice of the Ministry of Land and Resources on Further Improving the Management of Land Acquisition ([2010] No.238) (1) Fully implement the unified standard for the annual output value and the land area comprehensive value of land acquisition. It is an important measure to improve the compensation mechanism for land acquisition and realize the same price for land acquisition by formulating the unified standard for the annual output value and the land area comprehensive value. It is also an inevitable requirement to raise the compensation standard of land acquisition and safeguard the farmers’ rights and interests. The acquisition of rural collective land for all kinds of construction projects must be strictly implemented. For the new construction projects, strict checks should be made during the preliminary examination of land use to ensure that the compensation for land acquisition is calculated in full according to the published and implemented unified standard for the annual output value and the land area comprehensive value of land acquisition, and must be included in the budget estimate in full. If the construction land is located in the same annual output value or comprehensive land price area, the compensation level of land acquisition should be basically consistent, so as to achieve the same price of land acquisition compensation. All localities shall establish a dynamic adjustment mechanism for the compensation standards for land acquisition, and adjust the compensation standards every two to three years in accordance with the level of economic development and the growth rate of local per capita income, so as to gradually raise the level of compensation for land 175

acquisition. The provinces that have implemented the compensation standard for land acquisition over the prescribed period of time shall adjust and revise it according to this requirement as soon as possible. Those who fail to make timely adjustment shall not pass the examination of land use. (2) Explore and improve the pre-deposit system of compensation fees for land acquisition. In order to prevent the arrears of compensation fees for land acquisition and ensure that the compensation fees are paid in full and on time, all localities should explore and improve the deposit system of compensation fees for land acquisition. When organizing land acquisition approval in the city or county, the compensation fees for land acquisition shall be calculated according to the scale of land acquisition and the compensation standard. The land acquisition compensation fees shall be paid in advance by the unit applying for land use. For the urban construction land and the land for the construction project which is separately selected by way of transfer, the local government shall reserve the compensation fees for land acquisition in advance. After the land use is approved according to law, the pre-deposit compensation fees for land acquisition shall be accounted for in a timely manner according to the approval situation, refund for any over payment or a supplemental payment for any deficiency. The provincial land and resources department shall, together with the relevant departments, establish and improve the relevant rules and regulations for the pre- deposit of land compensation fees combined with the actual situation of the province (district or city), and check when the land use is examined and approved. (3) Reasonable allocation of compensation fees for land acquisition. After the implementation of unified standard of annual output value of land acquisition and the comprehensive land price of the area, the provincial land and resources department shall, in conjunction with the relevant departments, formulate and improve the allocation method of compensation fees for land acquisition according to the principle that the compensation fees shall be mainly used for the farmers, in combination with the implementation of land acquisition in recent years, and submit it to the provincial government for approval. When land acquisition is implemented after approval, the municipal and county-level land and resources departments shall pay the compensation and resettlement fees in full and in time according to the confirmed compensation and resettlement plan for land acquisition. If it should be paid to the farmers who have been expropriated, pay directly to the individual farmers to prevent and timely correct the problems of retaining and misappropriating land acquisition compensation and resettlement fees. (4) Priority is given to agricultural resettlement. All localities should take various effective land acquisition and resettlement measures according to local conditions, and adjust measures to local conditions. In some rural areas where cultivated land has been increased through land renovation and rural collective economic organizations have reserved more mobile land, priority should be given to agricultural resettlement when land is expropriated. And new cultivated land or mobile land should be arranged to the land- expropriated farmers so that they can own a certain area of cultivated land and maintain basic production conditions and income sources. (5) Standardize land usufruct returning. The land is expropriated within the scope of urban construction land determined in the overall planning for land use, the land usufruct returning may be adopted in the light of local conditions, but guidance and management shall be strengthened. The reserved land shall be arranged within the scope of urban construction land and shall be expropriated by the state. Where conversion of agricultural land is involved, it shall be included in the annual land use plan to prevent the expansion of urban construction land due to land usufruct returning. The development of the reserved land shall conform to the requirements of urban construction planning and relevant regulations. In areas where the reserved land is resettled, the local government shall 176

formulate strict management measures to ensure the arrangement of the reserved land is standardized and orderly and the development and utilization of the reserved land is scientific and reasonable. （6） Promote the implementation of social security funds for land-expropriated farmers. It is an effective way to solve the long-term livelihoods of land-expropriated to integrate them into social security system. Under the unified leadership of the local governments and in cooperation with relevant departments, the land and resources departments at all levels shall actively promote the construction of the social security system for the farmers whose land has been expropriated. At present, the key to solve the problem of social security for the farmers whose land has been expropriated lies in the implementation of social security funds. In line with the principles of “the person uses the land shall assume the responsibility”, all localities are encouraged to actively expand the channels of social security funds in combination with land acquisition compensation and resettlement. In the process of review and approval for land use, all localities should strictly check the implementation of social security funds for farmers whose land has been expropriated, and earnestly promote the implementation of social security funds for the farmers. In the areas where the pilot project for a new rural pension insurance system is implemented, the social security for the farmers whose land has been expropriated should be linked to the new rural pension insurance system. If the land-expropriated farmers are included in the new rural pension insurance system, the social security of the land- expropriated farmers should also be implemented, and the social security of land- expropriated farmers should not be replaced by the new rural pension insurance. (7) Do a good job in the relocation compensation and resettlement work related to the land acquisition. All localities should attach great importance to the farmers’ housing demolition and relocation in land acquisition, and conscientiously strengthen management in accordance with the requirements of the Emergency Notice. The compensation and resettlement of farmers’ housing demolition involves land, planning, construction, census registration, civil administration and other aspects, as well as social issues such as public security, environment renovation and customs. Under the unified organization, leadership and deployment of the local government, the land and resources departments of cities and counties should cooperate with relevant departments to establish a coordination mechanism, formulate measures as well as jointly carry out the demolition and relocation work. It is necessary to strictly implement relevant laws, regulations and policies, perform relevant procedures, make sure that the resettlement is followed by demolition, and resolutely stop and correct illegal compulsory demolition and removal. (8) Reasonable compensation and resettlement for house demolition. In the course of land acquisition, the farmers’ houses should be compensated reasonably, and diversified resettlement methods should be adopted according to local conditions, so as to properly solve the housing problem. In urban suburbs and rural areas, the method of relocation and resettlement is used to rearrange the houses on homesteads. The compensation for demolition should not only take into account the houses to be demolished, but also the homestead to be expropriated. The housing demolition shall be compensated according to the replacement cost of the building, and the acquisition of homestead shall be compensated according to the standard of land acquisition stipulated by the local government. In the rural-urban continuum and “villages” in cities, in principle, there will be no arrangements for houses on the homestead any more, but by the way of monetary or in- kind compensation, and the displaced farmers buy houses by themselves or the resettlement houses provided by the government. The sum of the compensation for

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demolition and the government subsidies obtained by the households to be demolished shall guarantee their purchase of the houses with a reasonable living standard. (9) Overall planning and orderly promotion of land acquisition and demolition. In the rural- urban continuum and “villages” in cities, the local government should reasonably predict the scale of rural housing demolition and resettlement involved in land acquisition for a period of time according to the needs of urban development, make overall planning, make arrangements for land used for relocation and resettlement and the construction of houses in advance, as well as organize the demolition work in an orderly manner. The construction of resettlement houses should conform to the urban development plan to prevent “repeated demolition”. In urban suburbs and rural areas, the relocation and resettlement should be arranged within the scope of construction land in villages and market towns, and priority should be given to the use of idle land and homestead sites. Villages included in the scope of demolition and resettlement should be concentrated in planned residential areas. Where conditions permit, the overall arrangements should be made for the resettlement houses of the households to be demolished in combination with the construction of new rural areas or central villages. (10) Do a good job in the informing, confirming and hearing before the approval for land use. The land acquisition is closely related to the vital interests of the farmers. It is necessary to ensure the farmers’ right to know, participate, appeal and supervise. The municipal and county-level land and resources departments should strictly follow the relevant regulations, conscientiously carry out the procedures before the approval of land acquisition, and fully listen to the opinions of farmers. The land acquisition should be informed to village groups and farmers in real earnest. In combination with the publicity of village affairs information, the land acquisition program should be notified in various forms and ways through broadcasting, information board of village affairs and other obvious positions. If the land-expropriated farmers have objections and put forward a hearing, the local land and resources department shall promptly organize a hearing and listen to the opinions of the farmers. The reasonable demands put forward by the masses must be properly addressed. (11) Simplify the implementation procedures after approval of land acquisition. In order to shorten the implementation time after the approval of land acquisition, where the procedures of notification, confirmation and hearing have been performed before land acquisition approval and the confirmation and compensation registration of land ownership, land category, area, ground attachments and young crops have been completed, the compensation and resettlement program for land acquisition may be formulated at the same time as the approval for land acquisition is submitted. After the land acquisition is approved, the announcement of land acquisition and the announcement of compensation and resettlement plan for land acquisition can be carried out simultaneously. If the masses once again put forward their opinions in the announcement, they shall conscientiously do a good job in policy propaganda and interpretation as well as guidance of the masses so as to gain understanding and support of the masses, and shall not forcibly expropriate land. (12) Strengthen the main responsibilities of municipal and county-level governments in expropriating land. In accordance with the law, the municipal and county-level governments are the main body for organizing and implementing the land acquisition. They are mainly responsible for determining the compensation standards for land acquisition, compensation and resettlement for demolition, timely and in full payment of compensation fees, organizing employment training for land-expropriated farmers, and integrating the farmers into the social security system. Under the unified organization and leadership of the government, the department of land and resources shall conscientiously fulfill the responsibilities of the department and ensure that the work of land acquisition is carried out in a standardized and orderly manner according to law.

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(13) Implement the feedback system after approval of land acquisition. Within six months after the approval of construction land (of which urban construction land approved by the State Council, after the provincial government examined and approved the implementation plan for the conversion of agricultural land and land acquisition), the municipal and county- level land and resources departments shall timely report to the provincial land and resources departments and the Ministry of Land and Resources through the online reporting system the completion of implementation after approval of land acquisition, including the scope and scale of land acquisition, the implementation of the procedures after approval of land acquisition, the payment of land compensation, the resettlement of land-expropriated farmers and the implementation of social security, etc. The provincial land and resources departments shall urge and guide city and county departments to do a good job of reporting, check and verify the information submitted, and timely correct the problems of non-reporting, late reporting and reporting errors. The departments of land and resources at all levels shall make full use of the submitted information, timely grasp and analyze the implementation after the approval of land acquisition, strengthen the supervision after land use approval, and ensure the implementation of land acquisition in accordance with the approval requirements. 7. Notice of the People's Government of Hunan Province on the Adjustment of Compensation Standards for Land Acquisition in Hunan Province (Hunan Government [2018] No.5) i. The compensation standard for land acquisition only includes the sum of land compensation fees and resettlement subsidy fees, of which the land compensation fees account for 40% and the resettlement subsidy fees account for 60%. The compensation standards for ground attachments and young crops shall be prescribed by the people's governments of cities and prefectures divided into districts. If the state-owned land, such as agriculture, forestry, animal husbandry and fishery, needs to be recovered due to non-agricultural construction, it shall be implemented with reference to this standard. ii. The acquisition of paddy fields, 1.2 times the standard shall be applied; the acquisition of cultivated land (except paddy fields), grassland (except other grasslands), rural roads, reservoirs, water level of ponds, ditches, farming land, riser of terrace and construction land shall be carried out according to the standards; for acquiring unused land, 0.6 times the standard shall be applied; the acquisition of garden land or forest land shall be carried out according to the corresponding coefficient of land type; the acquisition of basic farmland shall be carried out in accordance with the standards of paddy fields in the area where the land is located. 8. Opinions on Effective Implementation of Social Security Work for Land- expropriated Farmers (Hunan Government Office [2014] No.31) iii. Adhere to the principle of “guarantee before acquisition” which means the land acquisition is approved after implementation of social security funds. The farmers whose land has been expropriated will be included in the current social insurance system, and social insurance premiums will be paid in full.The government, collectives and individuals shall jointly bear the social security funds of the land-losing farmers, and the rights and obligations correspond, and the level of security is in line with the economic development. Ensure the living standards of land-expropriated farmers are not reduced by land acquisition, and long-term livelihoods are guaranteed. iv. The objects of social security for land-expropriated farmers refer to the registered agricultural population who is over the age of 16 and lose all or most of their land due to the unified acquisition of rural collective land by the government, and enjoy the rural collective land contract rights at the time of land acquisition. The specific

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measures for determination shall be formulated by the people’s governments of cities, prefectures, counties and districts. v. The land-expropriated farmers who meet the conditions of participating in the insurance voluntarily choose to participate in the basic endowment insurance for urban workers or the social endowment insurance for urban and rural residents, and the government and collective economic organizations provide subsidies for the farmers to participate in the above-mentioned social endowment insurance. vi. Subsidy standards for insurance contribution. The amount of contribution subsidy for land-expropriated farmers to participate in social endowment insurance = 60% (or 100%) of the average annual salary of on-post staff in the province last year × 12% (or 20%)× subsidy years when land-expropriated farmers pay one-time urban workers basic endowment insurance premium. The specific years and proportions of subsidies shall be determined by the people’s governments of cities, prefectures and counties. The same land-expropriated farmer, whether choose to participate in urban workers basic endowment insurance or social endowment insurance for urban and rural residents, shall enjoy the same standard of subsidies. The land-expropriated farmers voluntarily choose not to participate in urban workers basic endowment insurance or social endowment insurance for urban and rural residents, and those do not meet the conditions for participation, do not enjoy the subsidies for insurance contribution. vii. The land-expropriated farmers can pay social insurance premium with their own land compensation fees. The social security funds of land-expropriated farmers (payment subsidy used for land-expropriated farmers to participate in social insurance) mainly comes from the payment by land units, government subsidies and collective subsidies (a lump sum of 10% of the land compensation fees used for social security of land-expropriated farmers).

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Appendix 7: Land Preliminary Approvals and Related Statements and/or Explanations

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