Resettlement Plan

April 2020

PRC: Ningxia Liupanshan Poverty Reduction Rural Road Development Project (Xiji)

Prepared by the Ningxia Department of Transport of the Ningxia Hui Autonomous Region Government for the People’s Republic of China and the Asian Development Bank. This is an updated version of the draft originally posted in July 2016 available on https://www.adb.org/projects/documents/prc-ningxia-liupanshan-rural-roads-xiji-rp.

This Resettlement Plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature.

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.

Updated Resettlement Plan

April 2020

Jiangtai–Xitan–Pingfeng Road Project of Xiji County of Guyuan City in Ningxia Hui Autonomous Region, PRC

Prepared by Transportation Department of Ningxia Hui Nationality Autonomous Region

CURRENCY EXCHANGE (According to the exchange rate on May 1, 2016) Monetary Unit: CNY CNY1.00 = US$0.1433 US$1.00 = CNY6.9787

ABBREVIATIONS AAOV – Average Annual Output Value ADB – Asian Development Bank APs – Affected Persons AV – Administrative Village CRO – County Resettlement Office DMS – Detailed Measurement Survey DI – Design Institute EA – Executing Agency FS – Feasibility Study IA – Implementation Agency LAB – Land and Resources Bureau LAR – Land Acquisition and Resettlement L&RO – Land & Resources Office M&E – Monitoring and Evaluation PADO – Poverty Alleviation and Development office PAH – Project Affected Households PAP – Project Affected Person PPTA – Project Preparatory Technical Assistance PRA – Participatory Rural Appraisal PRC – People’s Republic of China PRO – Project Resettlement Office RP – Resettlement Plan SES – Socioeconomic Survey TRO – Town/township Resettlement Office

Notes “$” refers to US dollars in this report This resettlement plan belongs to a document of the ADB borrower, and the opinions expressed therein do not fully represent ADB official and may be inappropriate. Please pay attention to this item. ADB assumes no legal risk in participating in any national plan, program, financing project or other regional development project mentioned in this document.

COMMITMENT LETTER

The Xiji County People’s Government is applying for a loan from Asian Development Bank for the Jiangtai–Xitan–Pingfeng Road Project of Xiji County of Guyuan City in the Ningxia Hui Autonomous Region. Therefore, the implementation of the project must meet the social security policies of the ADB. This Resettlement Plan (RP) is a key planning document that is required by ADB’s involuntary resettlement safeguard policy. The RP adheres to relevant laws and regulations of the Xiji County, Guyuan City, Ningxia Hui Nationality Autonomous Region, the People’s Republic of PRC and ADB’s involuntary resettlement safeguard policy requirements. In order to better complete the resettlement work, the plan also includes some additional measures, implementation and monitoring arrangements. Xiji County People’s Government hereby acknowledges the report content and ensures that land acquisition, demolition of houses, resettlement, compensation and budget funds will be carried out grounded on this plan. The RP is updated based on the final design and detailed measurement survey The RP should be approved by ADB before implementation.

County Magistrate of Xiji County People’s Government

______(Signature)

______(Date)

ABBREVIATIONS ADB – Asian Development Bank AHs – Affected Households APs – Affected Persons AAOV – Average Annual Output Value AV – Administrative Village CRO – County Resettlement Office DMS – Detailed Measurement Survey DI – Design Institute DRO – District Resettlement Office EA – Executing Agency FS – Feasibility Study HD – House Demolition IA – Implementation Agency LA – Land Acquisition LAB – Land and Resources Bureau LAR – Land Acquisition and Resettlement L&RO – Land & Resources Office LEF – Land-Expropriated Farmer M&E – Monitoring and Evaluation MOU – Memorandum of Understanding NDRC – National Development and Reform Commission PADO – Poverty Alleviation and Development office PAH – Project Affected Households PAP – Project Affected Person PDRC – Provincial Development and Reform Commission PRO – Project Resettlement Office PPTA – Project Preparatory Technical Assistance PRA – Participatory Rural Appraisal RP – Resettlement Plan RIB – Resettlement Information Booklet SES – Socioeconomic Survey SPS – Safeguard Policy Statement of ADB TRO – Town/township Resettlement Office WEIGHTS AND MEASURES m² – square meter mu – 666.7 m² km – kilometer

GLOSSARY

Affected person (or - Those who are physically displaced (relocation, loss of household) 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 in kind to which the people affected are entitled in order to replace the lost asset, resource or income Entitlement - Range of measures comprising compensation, income restoration, transfer assistance, income substitution, and relocation which are due to affected people, depending on the nature of their losses, to restore their economic and social base

Income restoration - Reestablishing income sources and livelihoods of people affected Resettlement - Rebuilding housing, assets, including productive land, and public infrastructure in another location

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

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

Vulnerable Group - Distinct groups of people who might suffer disproportionately from resettlement effects, as specified in this plan

CONTENTS

NOTE ON THE RP UPDATE OF XIJI COMPONENT...... I EXECUTIVE SUMMARY ...... IV 1 PROJECT OVERVIEW ...... 1

1.1 PROJECT BACKGROUND ...... 1 1.2 OVERVIEW OF PROJECT PREPARATION ...... 3 1.3 SUBPROJECTS IN XIJI COUNTY ...... 4 1.4 MEASURES EMPLOYED TO AVOID OR FURTHER REDUCE LAND ACQUISITION AND DEMOLITION ...... 6 2 PROJECT IMPACT ...... 10

2.1 SURVEY METHOD AND PROCESS ...... 10 2.2 PROJECT IMPACT SCOPE AND OVERVIEW ...... 11 2.3 IMPACT OF PERMANENT COLLECTIVE LAND ACQUISITION ...... 12 2.4 TEMPORARY LAND OCCUPATION ...... 15 2.5 ANALYSIS OF IMPACT OF RESIDENTIAL HOUSE DEMOLITION ...... 15 2.6 AFFECTED INFRASTRUCTURE AND GROUND ANCILLARY FACILITIES ...... 15 2.7 AFFECTED POPULATION ...... 16 2.7.1 Overview ...... 16 2.7.2 Affected vulnerable groups ...... 17 2.7.3 Project impact on women ...... 18 2.7.4 Affected minority population ...... 18 3 SOCIAL AND ECONOMIC PROFILE ...... 19

3.1 SOCIOECONOMIC PROFILE OF PROJECT AREA ...... 19 3.1.1 Socioeconomic profile of Guyuan City ...... 19 3.1.2 Socioeconomic profile of Xiji County ...... 19 3.1.3 Socioeconomic profile of affected towns ...... 20 3.1.4 Introduction to Socioeconomic status of affected villages ...... 20 3.2 SOCIOECONOMIC PROFILE OF AFFECTED VILLAGES ...... 21 3.2.1 Sample survey ...... 21 3.2.2 Nationality and gender ...... 22 3.2.3 Age structure...... 22 3.2.4 Education background ...... 23 3.2.5 Housing size ...... 23 3.2.6 Farmland resource ...... 23 3.2.7 Household income and expenditure...... 24 3.2.8 Public opinion survey ...... 25 3.3 THE SOCIAL, CULTURAL AND ECONOMIC CHARACTERISTICS OF AFFECTED HUI NATIONALITY .... ERROR! BOOKMARK NOT DEFINED. 3.4 WOMEN DEVELOPMENT IN PROJECT AREAS ...... 26 3.4.1 Rural women profile in project areas ...... 26 3.4.2 Women’s roles in household livelihoods ...... 27 3.4.3 Decision-making at household and community levels ...... 27 3.4.4 Women’s transport needs ...... 28 3.4.5 Project Impacts on Women ...... 28 3.4.6 Measures in RP in facilitating women’s development ...... 30 4 LEGAL FRAMEWORK AND POLICIES ...... 31

4.1 ADB'S POLICY ...... 31 4.2 THE PRC’S LAWS AND REGULATIONS ON LAND ACQUISITION AND RELOCATION ...... 31 4.3 RELEVANT POLICIES OF NINGXIA HUI AUTONOMOUS REGION AND XIJI COUNTY ...... 33 4.4 ADB’S POLICY REQUIREMENTS ON INVOLUNTARY RESETTLEMENT ...... 33 4.5 DIFFERENCES OF ADB’S AND LOCAL POLICIES ...... 36

4.5.1 Compensation and resettlement for house ...... Error! Bookmark not defined. 4.5.2 Compensation and resettlement for land ...... Error! Bookmark not defined. 4.5.3 Compensation and resettlement for vulnerable groups ...... Error! Bookmark not defined. 4.5.4 Consultation and disclosure ...... Error! Bookmark not defined. 4.5.5 Resettlement monitoring, evaluation and reporting ...... Error! Bookmark not defined. 5 COMPENSATION PRINCIPLE AND ENTITLEMENT ...... 39

5.1 RESETTLEMENT PRINCIPLES ...... 39 5.2 CUT-OFF DATE OF COMPENSATION ...... 39 5.3 COMPENSATION RATE FOR PERMANENT LAND ACQUISITION ...... 40 5.4 TEMPORARY LAND OCCUPATION ...... 41 5.5 COMPENSATION RATE FOR HOUSE DEMOLITION ...... 41 5.6 COMPENSATION FOR GROUND ATTACHMENT AND INFRASTRUCTURE ...... 43 5.7 COMPENSATION FOR YOUNG CROPS ...... 43 5.8 STANDARD OF OTHER COSTS ...... 43 5.9 ENTITLEMENT MATRIX ...... 44 6 INCOME RESTORATION AND HOUSING RESETTLEMENT MEASURES...... 48

6.1 IMPACT OF LAND ACQUISITION AND INCOME RESTORATION MEASURES ...... 48 6.1.1 Impact of land acquisition ...... 48 6.1.2 Income restoration plan and assistance measures ...... 50 6.2 DEMOLITION AND HOUSING RESETTLEMENT PLAN ...... 54 6.2.1 House Demolition Impacts and Relocation options ...... 54 6.2.2 Other subsidy policy ...... Error! Bookmark not defined. 6.3 MEASURES FOR VULNERABLE GROUPS ...... 55 6.4 WOMEN’S DEVELOPMENT MEASURES ...... 55 6.5 RECOVERY PLAN OF GROUND ATTACHMENTS AND SPECIAL FACILITIES ...... 56 7 INSTITUTIONAL ARRANGEMENTS ...... 57

7.1 INSTITUTIONAL ARRANGEMENTS ...... 57 7.2 ORGANIZATIONAL RESPONSIBILITY ...... 58 7.3 STAFFING AND EQUIPMENT ...... 61 7.3.1 Staffing ...... 61 7.3.2 Equipment ...... 61 7.3.3 Organizational Training Program ...... 61 8 RESETTLEMENT BUDGET ...... 63

8.1 RESETTLEMENT BUDGET ...... 63 8.2 RESETTLEMENT INVESTMENT PLAN AND SOURCE OF FUND ...... 64 8.3 MANAGEMENT AND DISBURSEMENT OF RESETTLEMENT FUNDS ...... 65 8.4 APPROVAL OF BUDGET INCREASE ...... 66 9 PUBLIC PARTICIPATION AND GRIEVANCE REDRESS ...... 67

9.1 PUBLIC PARTICIPATION ...... 67 9.1.1 Stakeholder identification and information disclosure ...... 67 9.1.2 Participation during project preparation ...... 68 9.1.3 Public opinion of Xiji County ...... 73 9.1.4 Participation plan during implementation ...... 73 9.1.5 Adaptation of RP based on public opinions ...... 75 9.2 GRIEVANCES AND REDRESS ...... 75 9.2.1 Grievances ...... 75 9.2.2 Grievance Procedures ...... 75 9.2.3 Grievance Redress Principle ...... 77 9.2.4 Contents and Form of Reply to Complaints ...... 77 9.2.5 Report of Grievance ...... 78 10 IMPLEMENTATION PLAN OF LAND ACQUISITION AND RESETTLEMENT ...... 79

10.1 PRINCIPLE FOR IMPLEMENTATION OF LAND ACQUISITION AND RESETTLEMENT ...... 79 10.2 RP IMPLEMENTATION SCHEDULE ...... 79 11 MONITORING, EVALUATION AND REPORT ...... 83

11.1 INTERNAL MONITORING ...... 83 11.2 EXTERNAL MONITORING ...... 84 11.3 SCOPE AND METHODOLOGY OF EXTERNAL MONITORING ...... 84 11.4 POST EVALUATION RESETTLEMENT COMPLETION REPORT ...... 85 ANNEXES ...... 86

ANNEX A RESETTLEMENT INFORMATION BOOKLET ...... 86 ANNEX B INFORMATION MANUAL ...... 102 ANNEX C TERMS OF REFERENCE FOR EXTERNAL MONITORING AND EVALUATION AGENCY ...... 107

Table List

TABLE 1-1 BASIC INFORMATION OF JIANGTAI-XITAN-PINGFENG ROAD PROJECT ...... 5 TABLE 2-1TOWNS AND ADMINISTRATIVE VILLAGES AFFECTED BY LAND ACQUISITION AND DEMOLITION ...... 11 TABLE 2-2 PERMANENT ACQUISITION OF COLLECTIVE LAND (BY AFFECTED VILLAGE) ...... 12 TABLE 2-3 FARMLAND LOSS AFFECTED BY PROJECT LAND ACQUISITION (BY AFFECTED HH) ...... 13 TABLE 2-4 FARMLAND LOSS OF THE HOUSEHOLDS AFFECTED BY LA ...... 14 TABLE 2-5 LIST OF IMPACT OF DEMOLISHED RURAL HOUSE ...... 15 TABLE 2-6 AFFECTED GROUND ANCILLARY FACILITIES ...... 16 TABLE 2-7 AFFECTED POPULATION ...... 16 TABLE 2-8 BASIC INFORMATION OF VULNERABLE GROUPS OF XIJI COUNTY ROAD PROJECT ...... 17 TABLE 3-1 SOCIAL AND ECONOMIC STATUS OF AFFECTED TOWNS ...... 20 TABLE 3-2 SOCIOECONOMIC INDICATORS OF THE AFFECTED VILLAGES ...... 21 TABLE 3-3 SAMPLING PROPORTION ...... 22 TABLE 3-4 ANALYTICAL TABLE OF INCOME AND EXPENDITURE OF SURVEYED HOUSEHOLDS ...... 24 TABLE 3-5 PUBLIC OPINION SURVEY ...... 25 TABLE 5-1 RESETTLEMENT PRINCIPLES OF THE COMPONENT ...... 39 TABLE 5-2 COMPENSATION STANDARD FOR THE PROJECT LAND UNIT: CNY /MU ...... 41 TABLE 5-3 COMPENSATION STANDARD FOR DEMOLITION OF RESIDENTIAL HOUSE AND ANCILLARY FACILITIES ...... 42 TABLE 5-4 ESTIMATION OF CONSTRUCTION COST OF HOUSE BY TYPE (UPDATED) ...... 42 TABLE 5-5 COMPENSATION STANDARD FOR GROUND ATTACHMENTS AND INFRASTRUCTURE ...... 43 TABLE 5-6 TAX AND FEE STANDARD OF RESETTLEMENT ...... 43 TABLE 5-7 COMPENSATION ENTITLEMENT AND RESETTLEMENT POLICY MATRIX ...... 45 TABLE 6-1 PERMANENT FARMLAND ACQUISITION IMPACT ...... 49 TABLE 6-2 SUMMARY SHEET OF INCOME RESTORATION WILLINGNESS OF THE ACQUIRED HOUSEHOLDS ...... 50 TABLE 6-3 PROJECT EMPLOYMENT INFORMATION ...... 52 TABLE 6-4TRAINING PLAN FOR PROJECT IMPLEMENTATION ...... 53 TABLE 6-5 DEMOLITION SCHEME OF RESIDENTIAL HOUSES ...... 54 TABLE 8-1RESETTLEMENT BUDGET ...... 63 TABLE 8-2RESETTLEMENT INVESTMENT PLAN ...... 65 TABLE 9-1 PUBLIC PARTICIPATION DURING PROJECT PREPARATION （FINISHED） ...... 70 TABLE 9-2 PROJECT PUBLIC PARTICIPATION SCHEME ...... 73 TABLE 10-1SCHEDULE OF LAND ACQUISITION AND RESETTLEMENT ACTIVITIES ...... 80 TABLE 11-1 SCHEDULE OF MONITORING AND EVALUATION ...... 85

Figure List

FIGURE 1-2 SKETCH MAP OF JINGTAI-XITAN-PINGFENG ROAD PROJECT ...... 6 FIGURE 3-1 AGE DISTRIBUTION STRUCTURE ...... 22 FIGURE 3-2 DISTRIBUTION STRUCTURE OF EDUCATION ...... 23 FIGURE 7-1PROJECT RELOCATION ORGANIZATIONS ...... 58 FIGURE 8-1RESETTLEMENT FUNDS FLOW OF DISTRIBUTION ...... 66 FIGURE 9-1PUBLIC SURVEY SITE ...... 69

Note on the RP Update of Xiji Component As required by ADB, it is necessary to update the RP based on the completed DMS, and the Updated RP (URP) will serve as the basis for resettlement implementation. The project planned to be implemented in this file is the updated RP of Jiangtai–Xitan–Pingfeng Road Project. According the detailed design, the Xiji County PMO of Guyuan City and Land Resource Bureau conducted a Detailed Measurement Survey (DMS) for the section of the road involved in this project in July 2019. On this basis, this RP was updated. The URP mainly includes resettlement influence quantity, compensation and resettlement policies, resettlement programs, organizational structure, resettlement budget, resettlement implementation schedule, etc. Compared with the original RP, the LAR impact in this URP is changed for the following reasons: (i) the section in Gansu Province will not be widened and the land acquisition impact is reduced; (ii) based on the red line and final design, the house demolition impact is increased. It is confirmed that the principle of avoidance of involuntary resettlement impacts was applied for the subproject while the house demolition couldn’t be avoided.

Content Original RP Updated RP difference

The start point K0+000 of the main road of this The start point K0+000 of the main road of this project is located in the east of Jiangtai Middle project is located in the east of Jiangtai Middle School, Jiangtai Township, Xiji County, the T School, Jiangtai Township, Xiji County, the T shaped plane intersection of Guyuan – Jiangtai shaped plane intersection of Guyuan – Jiangtai Road and G566 road (the former S202 road, (1) Start point is the same. The Road and G566 road (the former S202 road, which has been reconstructed to reach the new ending point is which has been reconstructed to reach the east east of Jiangtai Township passing by around K73+295. The total length of Jiangtai Township passing by around the the urban area); The ending point of this is increased by 0.295 km. Project design urban area); The ending point of this project project K73+295 is located in Libu Village, K73+000 is located in Libu Village, Pingfeng Pingfeng Town, Xiji County at the border of (2) Section in Gansu Province Town, Xiji County at the border of Ningxia and Ningxia and Gansu. The total length is 73.295 will not be widened. Gansu. The total length is 73.000km, the design km, the design speed adopted is 40km/h, speed adopted is 40km/h, which is the technical which is the technical standard of 3rd class standard of 3rd class road, the width of the road, the width of the subgrade is 8.5m and the subgrade is 7.5m1 and the width of pavement is width of pavement is 7m. 7m.

The project involves of Gansu Province, all of which are only the pavement of old road Land of 1898.6mu is acquired, in which, farm Land of 1,815.9mu is acquired, in which, farm without any impact of land land is 1387.4mu, homestead is 2.7mu, forest land is 1356.4mu, homestead is 2.9mu, forest - acquisition and house LA impact land is 505.4mu, unused land is 3.1mu, 5281 land(shrub) is 456.6mu, 5132 persons and demolition. So the mount of LA persons and 1188 households are affected. 1171 households are affected. and AHs have correspondingly decreased, including Dry land reduced by 31 mu, forestland reduced by 48.8 mu.

1 During feasibility study stage, although the width of the subgrade is 7.5 m, the width of right of way (ROW) of the road is 8.5m including the subgrade width of 7.5m and pavement width of 7m. And the impact survey during preparation stage was conducted based on this ROW. I

Content Original RP Updated RP difference The house demolition area increased by 843 m2, the number of affected households increased by 2, and the abandoned storage room of village to be demolished The house demolition area is 1,343 m2, in The house demolition area is 500 m2. All are increased. The original which, the brick-timber structure house is 832 HD impact earth-wood structure houses, affecting 8 resettlement plan is based on m2, earth wood structure house is 511 m2, households and 35 persons. the feasibility study and is not affecting 10 households, 43 persons. accurate enough. The updated resettlement plan is based on the construction drawing design, which is very accurate and supplements the omissions in the feasibility study. The land acquisition compensation standard of farmland and residential land in this project is 13,472 CNY/mu; the forest-land(arbor) compensation standard is 9,430 CNY/mu; forest - Policies and rates land(shrub) and grass land compensation standard is 8,083CNY/mu. The crops compensation is No change for LA 850 CNY/mu.

Compensation rates for structures are the same. Housing compensation standard: 600 CNY/m2 for brick and timer structure house, 310 CNY/m2 for Relocation subsidy and Policies and rates earth wood structure. transition subsidy will not be for HD provided, as these HHs do not require relocation and transition2. Livelihood The LA impact is limited, and cash compensation will be adopted. No change restoration HD resettlement Available options include monetary compensation or decentralized resettlement. AHs will rebuild No change programs houses on their own vacant residential land at their wills. Resettlement cost CNY 49.063 million CNY 46.068 million The cost have decreased by

2 In the RP 2016, relocation subsidy (CNY 1000/HH) and transition subsidy (CNY300/HH/Month for 6 months) will be provided even for HHs affected by partial house demolition. It’s confirmed by the Xiji PMO that this’s a mistake in the RP 2016 as these HHs don’t require relocation and transition. II

Content Original RP Updated RP difference about CNY 2.995 million. Commencement date of the Implementation Civil engineering plan is scheduled to start in Civil engineering plan is scheduled to start in civil engineering plan is schedule July 2017 with a two-year construction period. July, 2020. delayed by 36 months. Source: DMS results.

III

EXECUTIVE SUMMARY E1. DESCRIPTION OF THE PROJECT The trunk road of Jiangtai-Xitan-Pingfeng Road Project proposed by Xiji County starts from K0+000 in the east of Jiangtai Middle School, Jiangtai Town of Xiji County and at the T- shaped intersection of Guyuan-jiangtai Road and road G566 (the former road S202, which has been reconstructed and bypasses the county in the east of Jiangtai), and ends at K73+295 at Libu Village, Pingfeng Town of Xiji County, which is the provincial boundary of Ningxia and Gansu. The total length is 73.295km with the subgrade width of 8.5m and pavement width of 7m, the design speed is 40km/h according to the technical standard of grade III road, and the total investment is estimated to be CNY 396.113363 million. E2. LAND ACQUISITION AND RESETTLEMENT SCOPE The project involves of Gansu region, all of which are only the reconstruction of old road without any impact of land acquisition and house demolition. The land acquisition and resettlement (LAR) will affect 4 towns and 19 administrative villages in Xiji county. 1,815.9 mu of land will be acquired by project, including farmland of 1356.4 mu, residential land of 2.9 mu, forest-land(shrub) of 456.6 mu. Houses of 1,343m2 will be demolished, in which brick-wood structure house is 832 m2, earth-wood structure house is 511m2, 1171 households with 5132 people will be affected by LA and 10 households with 43 people will be affected by HD, totaling 1171 households with 5132 people affected. And no enterprise or shop will be affected by LA and HD. In addition, scattered trees, poles, wires, tombs, enclosures, water wells and other ground ancillary facilities will be affected. As the project is mainly for the reconstruction of old roads, local customs and religious facilities of the Hui people will not be adversely affected by the implementation of the project. On the contrary, as the implementation of the project improves the local traffic conditions, the Hui people actively support the implementation of the project as soon as possible. E3. RESETTLEMENT PRINCIPLES AND ENTITLEMENTS The Resettlement Plan (RP) is prepared in accordance with the related land acquisition and house demolition policies of Xiji County, Guyuan City, Ningxia Hui Autonomous Region, PRC, as well as Safeguards Requirement 2 on Involuntary Resettlement in ADB’s Safeguards Policy Statement (SPS 2009). The goal of the RP is to ensure the affected production and infrastructure is recovered, affected labor forces are reemployed, demolished housing is rebuilt, and the incomes and lives of affected persons (APs) are improved or at least restored to the pre-project (physical and/or economic) levels.

E4. COMPENSATION STANDARDS The resettlement policy of this RP is in accordance with ADB SPS 2009, national laws, regulations, and rules, as well as the resettlement policies of Xiji County, Guyuan City, Ningxia Hui Autonomous Region, and based on the full and extensive consultations with the APs and confirmation of the project implementing agency. It can be implemented after the approval of local governments. The compensation standard is CNY 13,472 for both farmland and residential land, CNY 9,430 for forest-land(arbor), and CNY 8,083 for forest-land(shrub) and grass land for affect area in Ningxia. The compensation fee for young crops is determined to be CNY 850/mu. No LA and HD is involved in Gansu Province. According to the ADB policies and national provisions, market price evaluation is adopted for rural residents’ housing and the compensation standard for house demolition is therefore meets the replacement cost principle. The compensation price will not be lower than the base price stipulated in this plan, and will increase appropriately based on the housing market in similar regions in 2019. The specific standards are: CNY 600/ m2 for timber-brick structures, and CNY 310/m² for earth-wood structures. The compensation standards for other affected assets including trees, surface attachments, and water and power facilities are set according to replacement cost. Compensation for land acquisition, residential housing, and other attachments will be paid directly to the affected villages or APs respectively. E5. RESETTLEMENT AND LIVELIHOOD REHABILITATION There are 1171 households affected by land acquisition in this project. There are 540 households whose average cultivated land loss rate is less than 5%, and 631 households will lose 5% ~ 10% of their land. The average loss rate of cultivated land per household is not more than 10%, and the average loss rate per household is only 6.21%. From the perspective of affected villages, the average land loss rate is only 0.96%. In addition, in the income structure of the farmers in the project area, the income from working outside accounts for the largest proportion of the total income, which is 40.2%. And the traditional planting industry is no longer the main source of income. Therefore, the impact of land acquisition on household income is limited and it has little impact on the lives of the affected households. In order to reduce the impact of land acquisition and restore the living standards of affected people, a detailed economic recovery plan has been formulated. The economic recovery plan of this project covers all affected people. Measures include expanding the cultivation of cash crops and increasing the output value of existing low- V yield crops Encourage land transfer. These measures will help offset the losses caused to farmers by land acquisition. In addition, policies and measures such as providing employment positions, encouraging farmers to participate in agricultural operations and non-agricultural production, and special compensation policies and endowment insurance limits for landless farmers and vulnerable groups have been implemented. For physically displaced households (i.e., house demolition), many options are available for them to choose according to their own desire in order to restore their living condition. Any options are determined based on the compensation principle of replacement price. Including cash or in-kind compensation standards and relocation subsidies for homesteads, houses and their attachments, the major options include: (i) Cash compensation and self-relocation by displaced household. The compensation standard will be determined in accordance with replacement cost proposed in the resettlement plan. (ii) Allocated resettlement and subsidy policy: The villagers committees select and allocate appropriate Residential land to the affected households, and the allocated area shall be not less than the former area. And the villagers committees have promised that they will arrange residential lands within their Due to the impact of the project, the average house site area of the villagers is relatively large. After demolishing the house, the AHs can rebuild the house with compensation money within the scope of remaining housing plot. Compensation includes homestead compensation, house compensation, etc. E6. PUBLIC PARTICIPATION AND GRIEVANCE From April to June 2016, over five socioeconomic surveys and public opinion consultation activities were carried out with the APs (including 50% women) by the project design agency and Survey Group of Shaanxi Academy of Social Sciences. A supplementary investigation was carried out during the period of updating the RP from July to August 2019. The PMO, implementing agency, affected villages, towns/townships, and APs have consulted with each other on land acquisition and resettlement of the project. The issues raised included compensation scheme, resettlement plan, fees payment, economic recovery, resettlement site and procedures; their concerns and comments have been integrated into the RP. Further consultations will be held during the implementation of the RP .A grievance redress procedure has been established for the APs to manage LAR and other project related issues. Both oral and written grievances received and their redress actions will be recorded and will be made available to the external monitor and ADB

VI missions on request. The affected masses can also lodge a complaint to the external monitor. E7. INSTITUTIONAL ARRANGEMENT Transportation Department of Ningxia Hui Nationality Autonomous Region is the executing agency (EA), who will be responsible for organizing and applying for ADB loan, coordinating the implementation of the RP, supervising and checking the payment and use of land acquisition, demolition, and resettlement fees, formulating land acquisition and demolition progress reports, and providing training for personnel of the project implementing agency. Xiji County Transport Bureau (CTB) on behalf of Xiji County Government is the implementing agency (IA) of the subproject in Xiji County. Xiji PMO as a working body set up in the CTB in is mainly responsible for organizing the resettlement work of the subproject, and making decisions and consultations on major issues arising from construction and resettlement. Xiji County Resettlement Office (CRO) under Xiji PMO is responsible for the detailed work of preparation and implementation of the RP. Each involved town government and the affected village and community committees are responsible for working with Xiji Project Resettlement Office in the implementation of this RP. 1-2 leaders in each town government and each village committee respectively will be nominated to lead the RP preparation and implementation. E8. RESETTLEMENT IMPLEMENTATION SCHEDULE The resettlement implementation schedule has been prepared based on the preparation and construction progress of Xiji County road engineering. However, the final schedule needs to be updated based on the final design and detailed measurement before civil works contract is signed. It is therefore scheduled that the main work of land acquisition and housing demolition will commence in April 2020, and completed in June 2020. However, rehabilitation and residence allocation may take longer to complete. Ningxia PMO has agreed to a set of supervision milestones with ADB to ensure timely and effective implementation of the resettlement work. E9. RESETTLEMENT COST The LA and resettlement costs are budgeted in the project. According to the price in 2018, the resettlement costs total CNY 46.068 million. E10. MONITORING AND EVALUATION To ensure the land acquisition and resettlement work is implemented smoothly as planned, two supervision modes are adopted by two institutions. Firstly, internal supervision system composed of governmental departments (Ningxia PMO and county PMO) conducts VII supervision based on RP clauses from the perspective of administrative management. Secondly, Ningxia PMO has engage an external resettlement monitoring institute or firm to undertake external monitoring of the RP implementation. A baseline study will be conducted before the LAR begins and the first monitoring report will be submitted shortly thereafter. After that and until LAR completion, semi-annual monitoring reports will be prepared and submitted for ADB’s review. After completion of the LAR, annual evaluation reports will be submitted to ADB for 2 years or longer if there are any remaining issues.

VIII

1 Project Overview 1.1 Project Background The Ningxia Hui Autonomous Region is one of the most underdeveloped provinces/regions in PRC. In 2018, its per capita GDP is CNY 54,094, per capita disposable income of urban residents is CNY 31,895, and per capita disposable income of rural residents is CNY 11,708, respectively accounted for about 83.68% (CNY 64,643), 81.26% (CNY 39,251), and 80.1% (CNY 14,617) of the national average values, ranking 14th, 24th, and 22th among 31 administrative provinces and regions. There are 22 counties (districts) in Ningxia, and eight of them have been listed as nationally designated poor counties, accounting for 36.4% of the number of all counties and districts. The poverty-stricken areas in Ningxia are mainly distributed in the mountain areas of southern Ningxia, including Guyuan City (Xiji County, Pengyang County, Longde County, Jingyuan County, and zhou District), as well as Hai County in Zhongwei City and Wuzhong City (Tongxin County and Yanchi County), which are collectively known as “Xihaigu” region (national-level poverty county), one of the “Three-Xi” (Hexi and Dingxi City of Gansu Province and Xihaigu Area of Ningxia Hui Autonomous Region) poverty-stricken regions in PRC. Liupanshan region involved in the project is located in the mountain area of southern Ningxia, including Xiji County, Pengyang County, Jingyuan County, zhou District, Hai County, and Tongxin County, which are key poverty relief and development regions in PRC, as well as the destitute areas among poor rural areas nationwide and national-level poverty-stricken counties. Due to the poor natural conditions and economic foundation, and limited investment, and other constraints, the highway traffic in the region is featured by poor layout, low technical standard, insufficient construction funds, etc., and cannot satisfy the demands of economic and social development. Currently, undeveloped traffic and other infrastructure have become the bottleneck and disadvantage for the development of Liupanshan destitute area, and the poor transport infrastructures have become the most serious problem reported frequently by the masses in Liupanshan. In order to accelerate the development of Liupanshan, enhance poverty alleviation, guarantee and improve people’s livelihood, facilitate people to overcome poverty and achieve prosperity, ensure all people can share the reform and development achievements, boost PRC Western Development, promote the coordinated development of regions, and achieve the overall strategic objective of national regional development, Transportation Department of Ningxia Hui Nationality Autonomous Region grasps the opportunity of historical development, starts from eliminating the phenomenon that 1 undeveloped traffic and infrastructure restrict the development of contiguous destitute areas in Liupanshan, and now plans to implement Liupanshan rural highway development project for poverty alleviation in Ningxia Hui Autonomous Region with the ADB loan, which includes seven subprojects, involving Xiji County, Pengyang County, Jingyuan County and Yuanzhou District in Guyuan City, Hai County in Zhongwei City, and Tongxin County in Wuzhong City. The construction of Liupanshan rural road development project for poverty alleviation in Ningxia Hui Autonomous Region (the Project) with the ADB loan mainly targets at: 1) improving the technical grade for road network project, increasing network capacity, and perfecting regional road network; 2) enhancing the connection between the project area and surrounding area, improving regional traffic condition, and promoting the economic development of the project area and region; 3) constructing six subprojects and 7 arterial roads (including two branch lines) in Xiji County, Pengyang County, Jingyuan County, and Yuanzhou District in Guyuan City, Hai County in Zhongwei City, and Tongxin County in Wuzhong City. The Project will benefit about 2.10 million local residents from six project counties and districts as well as surrounding provinces, counties and cities, of which, urban residents and rural residents respectively account for 16% and 84%.

Figure 1-1 Sketch Map of Rural Road Distribution

1.2 Overview of Project Preparation The project is funded by the Asian Development Bank and NHAR TD. Before engineering implementation, resettlement plan shall be formulated in accordance with the standard and requirements for loan financing project. On February 24-26, 2015, ADB Project Launch Delegation (hereinafter referred to as “Launch Delegation”) visited Yinchuan, and determined the content, principle and 3 requirement of project resettlement plan. “Launch Delegation” and Transportation Department of Ningxia Hui Nationality Autonomous Region (executing agency) confirmed the resettlement plan shall include: with each county and district implementing the project as an unit, formulate the resettlement plan for seven independent counties and districts, including resettlement plan for trunk road projects of Yuanzhou, Xiji, Tongxin, Pengyang and Haiyuan, resettlement plan for trunk road and feeder road project of Jingyuan, and resettlement plan for feeder road project of Longde. On the basis of the task above, Transportation Department of Ningxia Hui Nationality Autonomous Region authorized the consultants and experts from Shaanxi Keshe Business Information Consulting Co., Ltd. to formulate corresponding documents. The document is namely RP for trunk road and feeder road construction confirmed for the subproject. There are four sources for critical data and information in RP: a. Feasibility study report and preliminary design of the project, preliminary demographic census results, and relevant government documents; b. Relevant information of functional department, such as, policy document, work summary and statistical data; c. Information of the affected villages and towns and village collectives, such as basic information and statistical report; d. Information from focus group discussion (FGDs), interview and household (HH) questionnaire survey. e. The RP was updated according to the final design and DMS conducted in July 2019. 1.3 Subprojects in Xiji County To accelerate the economic and social development of Xiji County and the surrounding area, make life conditions of local people better, improve infrastructure construction level, and facilitate poor masses get rid of poverty and become better off, by the chance of “Ningxia Liupanshan Poverty Reduction Rural Road Development Project Financed by the ADB”, and in order to solve the problem of infrastructure (traffic facilities) development lag restricting the development of Liupanshan destitute areas in Ningnan County, it plans to launch Jiangtai-Xitan-Pingfeng Road project in Xiji County, so as to provide favorable traffic conditions for the local economic and social development. According to the final design, the project area concerns with 19 administrative villages in 4 towns of Xiji, and 1,171 households with 5,132 persons are affected. The total length of Jiangtai-Xitan-Pingfeng Road project is 73.295km in length, with width of subgrade is 8.5m and width of pavement is 7m, and the design speed is 40km/h according to the technical standard of 3rd class road. The ending point K73+295 is located 4 at Libu Village of Pingfeng Town in Xiji County at the boundary of Ningxia and Gansu. The total investment in the project is estimated to be CNY 375.008257 million, and the construction are planned to be commenced from July 2020, the construction period is two years. (See Table 1-1) Table 1-1 Basic Information of Jiangtai-Xitan-Pingfeng Road Project Project Project Category construction Construction grade Project radiation effect content It affects 4 towns (Jiangtai Town, Xitan Town, Xingping Town, Pingfeng Town), 19 The total length Adopt design speed administrative villages (Maogou of the project is of 40km/h Village, Mingtai Village, 73.295km, the according to the Shencha Village, Xitan Village, Jiangtai- total technical standard Heihugou Village, Gancha Xitan- Road investment is of grade-III road, Village, Youai Village, Wangbu Pingfeng reconstruction estimated to be with the subgrade Village, Xingping Village, Road CNY width of 8.5m and Pingfeng Village, Sanhe Village, 375.008257 pavement width of Miaoping Village, Chentan million 7m Village, Minhe Village, Shawa

Village, Wangnao Village, Libu Village, Gaozhao Village, Bacha Village ). Data source: Socioeconomic and physical impact survey in July 2019

Figure 1-2 Sketch Map of Jingtai-Xitan-Pingfeng Road Project

1.4 Measures Employed to Avoid or further reduce Land Acquisition and Demolition To avoid or reduce the negative impact of economic and social development and benefit people is the basic objective of this project. The following principles are followed for determination of project site selection and project boundary during the survey and design stages: • Avoid cultural landscape (including temples and other religious activity sites) and key culture relics protection units. • Avoid schools. • Avoid or try to reduce the existing or planned residential area. • Avoid or try to reduce environmentally sensitive area. • Avoid/minimize house demolition and relocation • Avoid/minimize use of good farmland. • Avoid/minimize ground attachments. In fact, at design stage of the project, two construction schemes or more were prepared for each road project, and the best one was chosen based on the comprehensive analysis on engineering, environmental protection and feasibility of land acquisition in line with the requirements mentioned above. To be specific:

●An example of scheme selection: (1) K29+080.784-K32+400 a. New construction Depart from the former road at K29+080.784 and go southwest, lay the line along a rural unsurfaced road near Xinzhuangzi Village of Xingping Town, design two bridges of 6-20m and 4-20m respectively at K31+033.5 and K31+409 crossing flood discharge trench and Lanni River, then go north along the mountain and join the former road at Nanchuan Village of Xingping Town. Stake mark at end of the road is K32+400 and the total length is 3.32km. In this scheme, horizontal radius, horizontal length, length between horizontal curves, and other indicators could meet the technical standard of grade III road with design speed of 40km/h. b. Totally adopt the former road In this scheme, lay the road line along the former road starting from K29+080.784. For the sections which cannot meet the technical standard of grade III road with design speed of 40km/m, increase the horizontal radius and the length between horizontal curves. End of the road is also set on the former road. Stake mark at end of the road is K32+532.649 and the total length is 3.453km.

Red line: a scheme blue line: b scheme

(2) K56+700-K60+500 a. Totally adopt the former road In this scheme, lay the road line along the former road starting from K56+700. For the sections which cannot meet the technical standard of grade III road with design speed of 40km/m, increase the horizontal radius and the length between horizontal curves. End of the road is also set on the former road at K60+500 and the total length is 3.8km. b. New construction Depart from the former road at K56+700 and go southwest, lay the line economically and reasonably by taking advantage of the mountain trend, and finally join with the former road. Stake mark at end of the road is K61+167.821 and the total length is 4.468km. In this scheme, horizontal radius, horizontal length, length between horizontal curves, and other indicators could meet the technical standard of Grade III road with design speed of 40km/h.

Red line: a scheme blue line: b scheme (3) K58+100-K60+700 (section in Gansu Province) a. The old road subgrade of this section is 6.5 meters, and the preliminary design of the subgrade is 8.5 m, with requiring of 68.9 mu in land acquisition. b. After confirmation with the Xiji project office, the old road is still used in this section. The pavement hardening is only applied within the scope of the old road, and no land acquisition is required.

Table 1-4 Comparison of Mitigation Results of Selected Route Line Scheme on Land Acquisition and Resettlement Selected scheme and Scheme a Scheme b the mitigation result of No resettlement Project . Selecte Mitigation Resettlemen Resettlemen Scheme Scheme d result of t impact t impact scheme resettlement Land acquisition increased by 30mu, farmland Requires for acquisition Requires for Totally LA of decreased LA of adopt collective by 4mu, New 1 K29+080.784 collective the land of 5mu a increase construction -K32+400 land of 35mu former and HD of unused land road 1,500m2 acquisition by 26mu, and area of building demolishing decreased by 1,500m2 Requires for Requires for LA of a. N Land Totally LA of K56+700- collective ew acquisition 2 adopt the collective a K60+500 land of constru decreased former road land of 3.5mu ction by 1mu 4.5mu

Requires for K58+100- Only LA of Land K60+700 paveme Widen the collective acquisition 3 (section in nt No LA b road land of decreased Gansu hardeni 68.9mu by 68.9 mu Province) ng

Data source: Composed according to the primary design of the project and the socioeconomic and physical impact survey in July 2019

2 Project Impact 2.1 Survey Method and Process The approval time of the feasibility study design of the project is July 29, 2016; The approval time of the primary design is May 16, 2019; This report updated the original RP according to the primary design. The updated RP needs to be approved by Asian Development Bank before signing the contract. The preliminary survey of land acquisition and demolition impact mainly includes two aspects: 1) Document review: Consult the feasibility study report of the project, economic and social development document in the project implementation areas, and statistical data, as well as data collection. 2) Field survey: From July 20, 2019 to July 25, 2019, by consultant experts of Shaanxi Keshe Business Information Consulting Co., Ltd. together with and the personnel in charge of project design and relevant personnel of the project implementing agency conducted preliminary project impact survey on the socioeconomic overview and degree of the affected area, public consultation activities, and sought for the opinions of local department and some affected villagers within a certain scope. From July to August in 2019, consultant experts of Shaanxi Keshe Business Information Consulting Co., Ltd. updated the original RP according to the result of the DMS carried out by the PMO of Xiji County and the Land Resources Bureau in the same period. The main works include the confirmation of implementation range of the project and the impact of land acquisition and house demolition, public consulting on the resettlement compensation policies for the affected people and updating the land acquisition and resettlement compensation plan of the project, meanwhile, they evaluated the new occurred land acquisition impact and the resettlement compensation to be implemented, made a sampling survey on the social economic development level of the affected region, and updated the data of the sampling villages and sampling families in original RP. The survey includes 4 towns with 19 administrative villages of Xiji subproject, including seven sampling villages, namely Maogou Village of Jiangtai Town, Xitan Village and Gancha Village of Xitan Town, Wangbu Village of Xingping Town, and Pingfeng Village, Wangnao Village and Sanhe Village of Pingfeng Town, accounting for 35% of all villages affected. There’re 800 sampling households, which account for 33% of the total 2,446 households of sampling villages. Five group interviews were conducted. They verified the land acquisition impact described in the project construction drawing design (detailed design) on site, meanwhile, based on the analysis and process of the survey data and information

10 above, according to the resettlement policies of the country and Asian Development Bank, they compiled the updated RP of the project. 2.2 Project Impact Scope and Overview The impact of land acquisition and demolition of the project involves 4 towns and 19 administrative villages. See Table 2-1 for reference. Table 2-1Towns and Administrative Villages Affected by Land Acquisition and Demolition

Name of village/ neighborhood Construction content Name of town/ street committee Jiangtai Town , Maogou village，Mingtai village，Shencha village，

Xitan Town , Xitan village，Heihugou village，Gancha

village，

Youai village，Wangbao village，Xingping Jiangtai-Xitan-Pingfeng Road Xingping Town , village，

Pingfeng village，Sanhe village，Miaoping Pingfeng Town , village，Chentan village，Minhe village， Shawa village，Wangnao village，Libao village，Gaozhao village，Bacha village，

Note: The project involves of Gansu region, all of which are only the reconstruction of old road without any impact of land acquisition and house demolition. Data source: Socioeconomic and physical impact survey in July 2019 1815.9 mu of collective land will be acquired by project, including farmland of 1356.4 mu, residential land of 2.9 mu, forest land of 456.6 mu. Among the 1356.4 mu farmland, 231.5 mu is basic farmland. 1,343 m2 of buildings will be demolished, in which, the brick-wood structure house is 832 m2, earth-wood structure house is 511m2, 10 households of 43 people and 165 m2 of the village collective houses are affected by the land acquisition and house demolition, a total of 1,171 households of 5,132 people are affected. According to the surveys, no households will lose more than 10% of farmland and income. In addition, scattered trees, power poles, electric wire, and other ground ancillary facilities will also be affected by the land acquisition and demolition. 144.5 mu dry land will be occupied temporarily.

2.3 Impact of Permanent Collective Land Acquisition The project will permanently acquire 1815.9 mu rural collective land of the above- mentioned areas, including Dry land of 1356.4 mu (74.70%), Residential land of 2.9 mu (0.16%), forest land of 456.6mu (25.14%). According to the definition in “the feasibility report on the use of forest land for Jiangtai–Xitan–Pingfeng Road Project of Xiji County”, the forest land type of the project is shrub land. See Table 2-2 for reference.

Table 2-2 Permanent Acquisition of Collective Land (by affected village) Permanent land acquisition (mu) Affecte Village Affecte d Road Town committee/com Forest d HH Residenti Subtot person munity Dry land land(shru al land al b) Maogou 83.3 0 5.4 88.7 93 379 Jiangtai Town Mingtai 43.1 1.2 3 47.3 120 508 Shencha 70.1 0 4 74.1 89 338 Xitan 170.6 0 28.1 198.7 74 358 Xitan Town Heihugou 108.2 0 15.8 124 70 296 Gancha 135.5 1.7 38.3 175.5 72 342 Youai 99.6 0 62.8 162.4 102 433 Xingpin g Town Wangbao 86.4 0 43.9 130.3 80 412 Jiangtai Xingping 95.8 0 47.5 143.3 122 472 -Xitan- Pingfen Pingfeng 113.5 0 27.2 140.7 46 243 g Road Sanhe 33.7 0 19.8 53.5 38 185 Miaoping 40.8 0 22.2 63 33 123 Chentan 28.5 0 15.6 44.1 29 132 Pingfen Minhe 35.3 0 22.9 58.2 32 133 g Town Shawa 56.5 0 25.4 81.9 41 180 Wangnao 33.7 0 17.7 51.4 33 145 Libao 46.4 0 24.5 70.9 32 132 Gaozhao 35.8 0 18.4 54.2 30 166 Bacha 39.6 0 14.1 53.7 35 155 Total 4 19 1356.4 2.9 456.6 1815.9 1171 5132 Proportion 74.70% 0.16% 25.14% 100% / / Data source: Socioeconomic and physical impact survey in July 2019

Table 2-3 Farmland Loss Affected by Project Land Acquisition (by affected HH) Before land acquisition After land acquisition Per No. of Village Affected Per household No. of HH Farmland Farmland village Farmland household Farmland Road Town HH affected loss loss Farmland loss by LA rate % rate % Village (HH) (mu) (mu/HH) (HH) (mu) % % name Maogou 348 4,640 13.33 93 83.3 1.80 6.72 Jiangtai Mingtai 688 3,567 5.18 120 43.1 1.21 6.93 Town Shencha 318 3,660 11.51 89 70.1 1.92 6.84 Xitan 445 18,600 41.80 74 170.6 0.92 5.52 Xitan Heihugou 420 10,600 25.24 70 108.2 1.02 6.12 Town Gancha 303 8,990 29.67 72 135.5 1.51 6.34 Youai 540 7,500 13.89 102 99.6 1.33 7.03 Xingping Wangbao 420 6,560 15.62 80 86.4 1.32 6.91 Town Jiangtai- Xingping 818 8,500 10.39 122 95.8 1.13 7.56 Xitan- Pingfeng 232 11,300 48.71 46 113.5 1.00 5.07 Pingfeng Road Sanhe 368 5,000 13.59 38 33.7 0.67 6.53 Miaoping 412 7,948 19.29 33 40.8 0.51 6.41 Chentan 319 5,280 16.55 29 28.5 0.54 5.94 Pingfeng Minhe 342 6,850 20.03 32 35.3 0.52 5.51 Town Shawa 348 8,856 25.45 41 56.5 0.64 5.41 Wangnao 330 5,673 17.19 33 33.7 0.59 5.94 Libao 232 5,555 23.94 32 46.4 0.84 6.06 Gaozhao 305 5,580 18.30 30 35.8 0.64 6.52 Bacha 348 6,000 17.24 35 39.6 0.66 6.56 Total 4 19 7536 140659 18.66 1171 1356.4 0.96 6.21 Data source: Socioeconomic and physical impact survey in July 2019

Table 2-4 Farmland Loss of the Households Affected by LA

Distribution of proportion of Farmland loss of Administrative region Project name the households affected by LA (household)

Town Village 5% 5%—10% ﹥10% Maogou 41 52 0 Jiangtai Town Mingtai 54 66 0 Shencha 40 49 0 Xitan 38 36 0 Xitan Town Heihugou 33 37 0 Gancha 34 38 0 Youai 49 53 0 Xingping Town Wangbao 30 50 0 Xingping 62 60 0 Jiangtai-Xitan-Pingfeng Pingfeng 24 22 0 Road Sanhe 15 23 0 Miaoping 15 18 0 Chentan 13 16 0 Minhe 13 19 0 Pingfeng Town Shawa 26 15 0 Wangnao 14 19 0 Libao 12 20 0 Gaozhao 12 18 0 Bacha 15 20 0 Total 4 19 540 631 0 Data source: Socioeconomic and physical impact survey in July 2019 The above table shows that a total of 1171 households are affected by farmland acquisition of this project. 540 households show the farmland loss rate of less than 5%, 631 households show the rate of 5%-10%, and none of the households show the rate of more than 10%, the average farmland loss rate is only 6.21%; Even in Xingping Village, Xingping Township who has the highest farmland loss rate of 7.56% per household, One household suffers from farmland loss of 8.67% which is the highest one. From the aspect of affected villages, the average farmland loss rate is only 0.96%. Thus the land acquisition of this subproject has no significant impact on the households affected by the land acquisition from the perspective of both affected villages and affected households.

2.4 Temporary Land Occupation 144.5 mu dry land will be occupied temporarily, affecting 52 HHs. 2.5 House Demolition 1,343 ㎡ of rural buildings will be demolished, in which, brick-wood houses is 832 ㎡, earth-wood houses is 511 ㎡. A total of 10 households with 43 people and 165 m2 of village collective houses are affected in total. See Table 2-5 for the impact of residential house demolition. Among the affected households of residential house demolition, 10 households are all partially demolished. The demolished houses are mainly storage rooms and kitchens, while the main houses are not affected. The medical room will be fully demolished. See Chapter 6 for resettlement plan. Table 2-5 List of Impact of Demolished Rural House

House Demolition Number Area Brick-wood Earth-wood Town Village Householder area of family of the （㎡）（㎡）（㎡） HH

Mingtai Zhang Wanliang 4 260 122 72 50 Mingtai Zhang Wanhai 5 280 124 78 46 Mingtai Xie Weihong 4 260 115 75 40 Jiangtaibu Mingtai Qu Xiaobin 4 250 106 66 40 Mingtai Jin Wenwu 3 260 107 72 35 Mingtai Wang Wenkui 5 260 106 70 36 Subtotal 1 6 25 1570 680 433 247 Gancha Bai Yanling 3 260 119 72 47 Xitan Gancha Hu Jingping 6 260 110 68 42 Gancha Bai Dengfa 5 300 140 82 58 Gancha Bai Yunfei 4 260 129 79 50 Subtotal 1 4 18 1080 498 301 197 Total 2 10 43 2650 1178 734 444 Village Xitan Gancha Medical room 165 98 67 committee Total 1343 832 511 Data source: Socioeconomic and physical impact survey in July 2019 2.6 Affected Infrastructure and Ground Ancillary Facilities The project affects of ground attachments, including ground structures, Miscellaneous trees.According to the definition in “the feasibility report on the use of forest land for Jiangtai–Xitan–Pingfeng Road Project of Xiji County”， See Table 2-6 for the types and numbers of trees.

Table 2-6 Affected Ground Ancillary Facilities

Category Item Unit Quantity Lair ㎡ 1708 Brick wall M 18 Earth wall M 51 Structures on Toilet ㎡ 5 ground Brick shed ㎡ 6 Cellar single 1 Cave dwelling ㎡ 83 Grave single 26 Weed tree3 (φ<10cm) single 1173 Miscellaneous trees Weed tree (10<φ<30cm) single 2512 spruce*(plant height 0.8~1m) single 353 *Note：The affected spruce will be compensated according to the compensation standard, and then transplanted in other places by the relevant department. Data source: Socioeconomic survey and physical impact survey in July 2019 2.7 Affected Population 2.7.1 Overview A total of 1171 households with 5132 people are affected, 1171 households with 5132 people are affected by land acquisition, and 10 households with 43 people affected by both land acquisition and house demolition. No enterprises and public institutions are affected by the land acquisition and demolition. See the Table 2-7 for details of the affected population. No enterprises and shops are affected. Table 2-7 Affected Population

Jiangtai-Xitan-Pingfeng Road Subtotal N Categ Jiangtai Town Xitan Town Xingping Town Pingfeng Town o. ory House Perso House Pers House Perso House Perso House Perso hold n hold on hold n hold n hold n Affected 302 1225 216 996 304 1317 349 1594 1171 5132 household Land acquisi 1 302 1225 216 996 304 1317 349 1594 1171 5132 tion impact Demoli 2 tion 6 25 4 18 0 0 0 0 10 43 impact Data source: Socioeconomic and physical impact survey in July 2019

3 Miscellaneous trees include Armeniaca sibirica,Hippophae rhamnoides Linn, Caragana korshinskii Kom, Amygdalus davidiana,and other tree species used for soil and water conservation and barren mountain greening. 16

2.7.2 Affected vulnerable groups The vulnerable groups affected by the subproject mainly include the elderly with no other supporting family members, single-parent families, orphans, family under MLSS, the disabled, poverty families, etc. A total of 62 households with 255 people of vulnerable groups are affected by the subproject. All VHs are affected by land acquisition. See Table 2-8 for the definition standard of vulnerable groups and the number of vulnerable group households.

Table 2-8 Basic Information of Vulnerable Groups of Xiji County Road Project

Jiangtai-Xitan-Pingfeng Type Definition standard Road (household) Family with women as primary labors, without young Women-headed 14 family and middle-aged men laborers (18-55 years old) The elderly over 60 years old without children, The elderly family 3 relatives and other supporting members Family with the members identified according to The disabled family 3 national standard of level I or level II disabled Family with member losing work capacity due to Family with long- 42 term patients disease or in need of long-term medical care Total 62 Note: Double counting has been excluded in the subtotal and total. According to the poverty line of Ningxia province in 2019 which is CNY 3,800 per capita per year, 62 vulnerable households all belong to low-income and poverty-stricken families. Data source: Socioeconomic survey and physical impact survey in July 2019 According to the survey, compared with 2015, after the government’s effort on poverty alleviation, the number of low-income families affected by the project has been reduced from 102 to 62, which are all the land acquisition affected households, the poverty causes include aspects of: (1) labor force lacks of labor skills, which leads to less opportunity to find a job in non-farming industry and the remuneration is reduced; (2) disability caused by illness or accident, plus the heavy economical load, the living standard is hard to improve. The residential site the vulnerable groups affected by the project is located in the region where our country recognizes it as a deep poverty region, the natural condition is harsh, especially the water resource is extremely insufficient, and the annual average value of agricultural production of farm land is very low, so the farm land loss rate of the vulnerable groups is very small, so does the economic impact. (See Section 6.1 for the specific analysis). Xiji County People’s Government is the executing agency. 62 households of vulnerable groups affected by this project will be included in the poverty alleviation plan and “targeted poverty alleviation” of the Xiji County Government, and enjoy the support and preferential policies implemented by the district government (See Chapter 6 for specific measures).

2.7.3 Project impact on women A total of 2386 (46.5%) of the affected persons are female. During the field survey, women focus group discussions were held in each surveyed village. Household interviews paid special attention to women. Among the relocated farmers, no negative impact on women due to land acquisition and demolition was found. On the contrary, after the project was completed, the majority of men and young people left, leaving women, children and the elderly, so the roads were opened Make women with a large proportion of the left-behind population walking safer on the roads, reduce the labor intensity of transporting crops and daily necessities, make it easier to see a doctor, and travel to towns and urban areas is easier. Facilitate reunion with families of migrant or school children. In the longer term, women expected the road improvement will stimulate local industrial development and urbanization, bring more local non-farming job opportunities which will particularly help women with agricultural income as main source to increase their non-farm income. 2.7.4 Affected minority population Project implementation area is Hui people concentrated area. The affected population is Hui people. Since the project is mainly the reconstruction of old road, hence, the lifestyles and customs of the local Hui people will not be affected by the negative effect of LAR; on the contrary, since project implementation improves the local traffic condition, Hui people will positively support the rapid implementation of the project (See Chapter 9 Public Participation).

3 Social and Economic Profile 3.1 Socioeconomic Profile of Project Area Within the project scope of Jiangtai-Xitan-Pingfeng road, 19 administrative villages of 4 towns will be affected. 3.1.1 Socioeconomic profile of Guyuan City Guyuan is located in the Liupanshan area in the south of Ningxia Hui Autonomous Region. Its jurisdiction territory includes over Xiji County, Longde County, Wuyuan County, Xiji County and Yuanzhou District. It is adjacent to Qingyang City and Pingliang City in Gansu Province in the east and south, Baiyin City in Gansu Province in the west, and Zhongwei City and Wuzhong City in the north. The geographical range is between 35º14 '～ 35r Xiji County, Longde County, Wu～ 106 Xiji County, Longde County, Wuyuan County, Xiji County and Yu, and the area of Guyuan City is 45 square kilometers. It is located in the center of a triangle zone formed by the capital cities of Xi'an, Lanzhou and Yinchuan. It is an area with great prospects for development in western China, and it is also one of the “three western” areas identified by the central government for poverty alleviation. The total number of households in the city is 384,104, and the total registered population is 1,512,268, of which: 783,392 males, 728,876 females, 1,326,232 agricultural people, 186,025 non-agricultural population, and 657,938 Hui population, accounting for 43.5% of the total population. In 2018, the city's total regional GDP was CNY30.32 billion, an increase of 6.6%; The total retail sales of consumer goods was CNY7.37 billion with an increase of 3.8% year-on-year; The general budgetary revenue of local public finance was CNY 1.73 billion with an increase of 3.5% year-on-year; The disposable income is CNY 26,709 with an increase of 8.4%; The per capita disposable income of rural residents is CNY9,557 with an increase of 11.4%. 3.1.2 Socioeconomic profile of Xiji County Xiji County is in the south part of Ningxia and at the west foot of Liupanshan Mountain. It now governs 3 towns, 16 towns, 296 administrative villages, 7 residents committees, and 1,870 teams of villagers, with total population amounting to 509,000, including agricultural population of 456,000 and population of Hui nationality of 294,000 (accounting for 57.8%). Thus it is the first county in terms of population in Ningxia. It is also a county of minorities and the major county of poverty relief and development of the state and Ningxia. The total area of the county is 3,130 km2, and 1,740,000 mu is farmland. Geomorphic types are

19 mainly plain terrain of Hulu River, loess hilly and gully region in southwest and earth-rock mountain region in northeast, with elevation of 1,688 m-2,633 m. In 2018, the county achieved a regional GDP of CNY 6.49 billion, increased by 3.6%. The primary industry achieved value added of CNY 1.77 billion, increased by 4.4%; the secondary achieved value added of CNY 1.29 billion, year on year decreased by 10.8%, and the tertiary industries completed value added of CNY 3.43 billion, increased by 9.6%; The component ratio of tertiary industry added value is 27.2:19.8:53.0.,local public financial budget revenue is CNY 169 million, increased by 0.4%; the total investment in fixed assets is CNY 4.27 billion, decreased by 26.7% on same basis; the social consumable total retail sales is CNY 1.59 billion, decreased by 1.5% compared with last year; the urban per capita disposable income is CNY 25,215, increased by 8.5%; the rural per capita disposable income is CNY 9,308, increased by 10.8% 3.1.3 Socioeconomic profile of affected towns The project affects 4 towns in Xiji County. In the five affected towns, the average population is 3.9~5.2 per household, per capita farmland is 4.6~6.1 mu, and per capita income is CNY 8000~10500. Table 3-1 Social and Economic Status of Affected Towns

Rural Average per Number househol capita Farmland(mu Per capita of Populatio d net Road Town ) Farmland(mu househol n (person) populatio incom ) d n e (CNY /year) Jiangtai 4221 21805 100159 5.2 4.6 10,251 Town Xitan Jiangtai- 3633 15379 84000 4.2 5.5 9,380 Xitan- Town Pingfen Xingpin 6036 25624 130800 4.3 5.1 9,015 g Road g Town Pingfen 6693 26326 160466 3.9 6.1 8,865 g Town Total 4 20583 89134 475425 4.3 5.3 9,336 Source: Statistical yearbook of Xiji in 2018 3.1.4 Introduction to Socioeconomic status of affected villages The project affects 19 administrative villages in Xiji County. The average population is 3~6 per households. The per capita farmland ranges from 1 to 10mu. The per capita income of the 19 administrative villages is between CNY 8200 and CNY 11000.

Table 3-2 Socioeconomic Indicators of the Affected Villages Annual rural Number Per per Househol of Populatio Farmlan capita capita Road Town Village d househol n (person) d (mu) cultivate net population d d land incom e (CNY ) Maogou 348 1,414 4,640 4.1 3.3 10550 Jiangtai 688 2,984 3,567 4.3 1.2 11400 Town Mingtai Shencha 318 1,450 3,660 4.6 2.5 9900 Xitan 445 2,220 18,600 5 8.4 9100 Xitan Heihugo 420 2,180 10,600 5.2 4.9 8900 Town u Gancha 303 1,431 8,990 4.7 6.3 9800 Youai 540 2,400 7,500 4.4 3.1 8800 Xingping Wangba 420 2,260 6,560 5.4 2.9 9120 Town o Jiangtai- 818 3,100 8,500 3.8 2.7 8600 Xitan- Xingping Pingfen Pingfeng 232 1,167 11,300 5 9.7 9300 g Road Sanhe 368 1,841 5,000 5 2.7 8750 Miaoping 412 1,782 7,948 4.3 4.5 8700 Chentan 319 1,386 5,280 4.3 3.8 8200 342 1,420 6,850 4.2 4.8 8700 Pingfen Minhe g Town Shawa 348 1,560 8,856 4.5 5.7 8640 Wangna 330 1,476 5,673 4.5 3.8 8300 o Libao 232 960 5,555 4.1 5.8 8300 Gaozhao 305 1,760 5,580 5.8 3.2 8240 Bacha 348 1,550 6,000 4.5 3.9 8500 Total 4 19 7536 34341 140659 4.6 4.1 9111 Source: Statistical yearbook of Xiji in 2018 3.2 Socioeconomic Profile of Affected Villages 3.2.1 Sample survey In order to understand the basic status of population affected by the land acquisition, the socioeconomic survey group conducts sampling survey for sampling households. The 7 sample villages are Maogou Village, Xitan Village, Gancha Village, Wangbao Village,Pingfeng Village, Wangnao Village and Sanhe Village in Xiji County with 14,909 people from 3,264 households in total. The project surveys the sample of 3,445 people from 800 households, with the sampling proportion of 33% of the total population. See the distribution of sample in Table 3-3.

Table 3-3 Sampling Proportion

Sample Number of household in Sampling No. Village Number of sampling village (household) Population proportion (%) household 1 Maogou 348 115 473 33 2 Xitan 445 125 630 28 3 Gancha 303 100 467 33 4 Wangbao 420 125 677 30 5 Pingfeng 232 95 471 41 6 Wangnao 330 115 519 35 7 Sanhe 368 125 628 34 Total 7 2,446 800 3,445 33 Source: Socioeconomic survey and physical impact survey in July 2019 3.2.2 Nationality and gender The 800 sample households have a total population of 3,445, a total labor force of 2,193and an average population of 4.3per household. Most of the households surveyed are Hui people. There are 1,586 females (46%) of the total surveyed population; most women are mainly engaged in agriculture, housework and other production activities. 3.2.3 Age structure Among the 3,445 sample people from 800 households, 644 are under 16 years old (18.7%), 1,159 are from 16-39 years old (33.6%); 12,14from 40-59 (35.2%); and 428 people are over 60 (12.4%). See age structure in Figure 3-1.

Figure 3-1 Age Distribution Structure

3.2.4 Education background Among the surveyed 3445 people of 800 households, 2,014 of them have received primary or below education(58.5%); 878 people received junior high school education (25.5%); 491people received senior high school or technical secondary school education (14.3%); 62 people had received junior college or above education (1.8%). See education distribution in Figure 3-2.

Figure 3-2 Distribution Structure of Education 3.2.5 Housing size Among the surveyed 3445 people of 800 households, the major houses are of earth-wood or brick-wood structure with a total housing area of 174,800m², and 218.5m² per household on average and 50.7m² per capita. 286 households (8.3%) have an area less than 100m²; 1,085 (31.5%) households with an area of 100-150m²; 1,483 (43%) households with an area of 151-300m²; 490(14.2%) with an area of 301-450m²and 101 household (3%) with an area over 451m². 3.2.6 Farmland resource Among the surveyed 3445 people of 800 households, average household Farmland is 18.5mu and average capita Farmland is 4.3mu. The Farmland mainly refers to farm land and the major crops are corn and wheat, with yearly net return of about CNY 500 /mu. There are 543 households (67.9%) with average capita farmland of less than 5mu; 219 households (27.3%) with 5-10mu; 38(4.8%) households with more than 10 mu.

3.2.7 Household income and expenditure 1) Annual household income Among the 3,445 people from 800 households, the average annual income of household is CNY 36,860. The average capita annual net income is CNY 8,572. Farmers' income mainly comes from migrant labor (wage income from working outside the village/town), agriculture and animal husbandry. Among them, migrant labor accounts for 41% of the total income. This is consistent with the local industrial structure. Women generally work in agriculture while engaged in manual manufacturing, while men generally work in agriculture or go out to work. 2) Annual family expenditure The average annual household expenditure is CNY32,895 /household, of which household running expenses are CNY 8,385 / household, accounting for 25.5%; Living expenses are CNY 17,018 / household, accounting for 48.6%; Other expenses are CNY 7,492 / household, accounting for 25.9%. The sample survey of the income and expenditure of the affected households is shown in Table 3-4. Table 3-4 Analytical Table of Income and Expenditure of Surveyed Households

Per household Per capita Item Proportion % (CNY /household) (CNY /person) Agricultural income 27.9% 10082 2391 Forestry income 0 0 0 Income from animal 26.1% 9823 2238 husbandry Industrial income 0 0 0 Income from construction 0 0 0 industry Income from transportation 0 0 0 industry Annual household Income from trade, food and 0 0 0 income service industry Income from other non- 5% 1845 429 farming jobs Income from working outside the village/town as 41% 15110 3514 wage laborers Income from collective 0 0 0 distribution Income from property 0 0 0

Subtotal 36,860 8,572 Per household Per capita Proportion (CNY /year) (CNY /year) 24

Per household Per capita Item Proportion % (CNY /household) (CNY /person) Household operation 25.5% 8385 1950 expenditure Annual household Living expenditure 48.6% 17018 3725 expenditure Others 25.9% 7492 1983

Subtotal 32895 7658 Sources: Survey on socioeconomic and physical impact in July 2019 3.2.8 Public opinion survey People formulating the Resettlement Plan surveyed the public opinion of the 800 households on a sample. 432 households of 7 sampling villages affected by land acquisition and demolition are all sampling households for survey on public opinion. The results are shown as follows: The survey has issued 800 questionnaires, and all of them have been returned.  Awareness: 88.5% of surveyed households are aware the subproject is going to be constructed,7.8% are not quite clear about the subproject and 3.7% know nothing about it.  Attitude: 98.9% of surveyed households support the project construction, and 1.1% do not care about it.  Livelihood options: 57.8% surveyed households are not willing to continue in agriculture anymore; 69.6% are willing to be given non-agricultural status; 100% are willing to participate in social insurance; and 97.8% are willing to receive technical training. See public opinion survey in Table 3-5. Table 3-5 Public Opinion Survey Selection proportion of the opinions of the affected No. Questions Answers households (%) 1 2 3 Total Do you know the project will (1) Yes (2) Not quite clear (3) 1 88.5 7.8 3.7 100 be constructed? No Do you approve the project 2 (1)Yes (2)No (3) I don’t care 98.9 0.0 1.1 100 construction? Who do you think can benefit (1) Nation (2) Collectivity (3) 3 from the project? (multiple 100.0 99.8 99.6 \ Individual choices) Do you know the 4 compensation policy for land (1) Yes (2) No 63.8 36.3 \ 100 acquisition? Do you accept the land 5 acquisition for supporting the (1) Yes (2) No 86.0 14.0 \ 100 project?

Selection proportion of the opinions of the affected No. Questions Answers households (%) 1 2 3 Total Are you willing to continue 6 (1) Yes (2) No 42.3 57.8 \ 100 farming after land acquisition? Are you willing to be given 7 non-agricultural status after (1) Yes (2) No 69.6 30.4 \ 100 land acquisition? Are you willing to work in 8 enterprises or work for others (1) Yes (2) No 91.5 8.5 \ 100 after land acquisition? Are you willing to do business 9 (1) Yes (2) No 34.4 65.6 \ 100 after land acquisition? Are you willing to participate 10 in social insurance after land (1) Yes (2) No 100.0 0.0 \ 100 acquisition? Are you willing to receive 11 technical training after land (1) Yes (2) No 97.8 2.3 \ 100 acquisition? Selection of housing (1) Local resettlement (2) 12 89.4 10.6 \ 100 resettlement methods. Monetary compensation Where do you want to choose (1) The group (2) The 13 as housing resettlement village/community (3) The 54.0 31.9 14.1 100 point? town/township Do you know you can lodge a complaint when your lawful 14 (1) Yes (2) No 97.8 2.3 \ 100 rights and interests are violated? Sources: Survey on socioeconomic and physical impact in July 2019. 3.3 Women development in project areas 3.3.1 Rural women profile in project areas The proportion of female population was 48% in Xiji County in 2018, of which the majority was rural women accounting for 65% of total female population. Women are playing important roles both in agricultural sector as well as rural household development. Based on the socioeconomic survey and as presented in the RP 2016, there are differences in the education level between women and men. Specifically, 28.1% of female respondents are in the no-schooling category, higher than the proportion of male respondents (11.8%). Similarly, the proportion of female respondents with 7 years of education (38.4%), is lower than that of males (42.9%), and female respondents with 10- 12 years of education (4.8%), is also lower than that of males (13.6%). However, 38.7% of female have received elementary education, which is higher than that of male (36.5%) The majority of respondents were farmers with 73.1% of females and 61.6% of males being concentrated in agriculture on their farmland. Both long-term and seasonal migrant laborers were mostly men. 13.3% of males were engaged in the long-term migrant labor compared to 6.3% for women. 26.4% of men were seasonal migrant labors against only

7% of women. Women were often left at home both for cultivating household land and taking care of household members. The survey indicated that there were slightly more females running small businesses than men. However, among the respondents, only 1.9% of females were village cadre compared to males (10.5%), indicating that women’s participation in decision-making at village level was lower than for men. 3.3.2 Women’s roles in household livelihoods Among surveyed villages, women and men are involved not only in agricultural activities but also non-agricultural practices. Women and men have different roles in agricultural production practices. Males usually dominate ploughing and clearing activities, while females are more engaged in planting and weeding. Both women and men take part in activities such as fertilizing, harvesting and animal husbandry. Tending poultry feeding is solely a woman’s activity. Men and women in the project affected area have different roles in the division of family and society: women are mainly responsible for raising and family agricultural production (agricultural production and cooking, laundry, care for the elderly, etc.), but young women also go with men Work. Women exclusively perform household work in addition to their agricultural work. Their roles are cooking, washing and care of small children and elders in their households. It is obvious that men contribute more to cash income generation in the household, and women’s roles tend to be in household maintenance like growing corn and grain, raising animals for household consumption rather than for selling purpose. Looking after children is women’s domain. Around 13% of interviewed women reported that they are living in rented houses in the town to look after their school children. They no longer cultivated their land in the village. The household expenditures were fully met from their husbands’ non- farm earnings. 3.3.3 Decision-making at household and community levels Among the surveyed households, women in few families have decision-making power, and in most households, men made the decision. Couples jointly discuss agriculture production activities such as planting, crop selections, seed purchases, fertilizer and equipment/tools. In many cases, women’s voices are heard during the discussion process but men make final decisions. Men dominate decision making on household investments such as buying vehicles, running small shops or building new houses. The interviewed villagers indicated that men have more opportunities to go outside than women and therefore have more experience and knowledge with which to make decisions.

Men also dominated with respect to decision making on renting out land and on borrowing and lending money. These are very important household decisions and are definitely the responsibility of household heads. Among the 85% of families surveyed, women undertake all housework; both men and women take part in farm work and feeding work; a majority of men have the experience of migrant workers, while less women have. Men and women equally share decision-making on household saving and buying durable consumables such as TVs, furniture, washing machines and electronic cookers. Women dominate decisions on purchase of daily consumables. The participation of women in community decision-making is still much less than for men because there are the fewer women members in decision-making bodies of communities. Women’s participation in community management include organizing traditional festivals, special occasions like marriage ceremonies and funeral activities, attending community meetings in the absence of men, and contributing labor for public works such as village road routine maintenance and irrigation repair. 3.3.4 Women’s transport needs The women’s role in the household shapes their transport patterns, frequency of women’s mobility and travel costs. Women’s transport activities are different from men’s since women often have the primary responsibility for transporting goods to and from market, and for accompanying children and elders to hospital, and for seeking job opportunities to meet increasing cash demand of households. Women have similar transport needs to other social groups. Due to their higher level of domestic responsibility, women assign greater importance to transport that is easier, faster, and safer and provides more mobility, as this in turn provides more home time for productive work. Women also expect more buyers to come to the village, which would in turn further reduces travel time and thus saves more time. Specifically, women are more reliant on public transport and prefer safe and regular public transports with fixed fares. 3.3.5 Project Impacts on Women The subproject will bring benefits equally to women and other social groups through improvement of road safety facilities, trunk road rehabilitations and particular rural road upgrade. Shorter travel time on roads is beneficial to them, as it increases mobility, and allows more productive use of time. Women are primarily local travelers for buying home consumption goods and selling produce, sending and picking up small children to and from school, traveling for health

28 purposes, and more frequently accompanying family members to hospital. Accessing better roads, thereby, will provide them easier, faster and safer travel. Public or private transport operators will be more willing to provide services when the road condition and road safety is improved. Firstly, this could increase the potential for young women to travel outside the village to seek employment. Specifically, availability of public transport services, which are their primary means of travel to visit relatives and friends, is especially important to women. Secondly, the project area in Xiji County is in extremely arid region, and only Xitan Town has diversion works, but the water pressure is not stable, and sometimes there’s water and sometimes there’s not. The villagers in the other 4 towns have to go to the water source to buy water at CNY 5 /ton, and due to the bad road condition, the freight is as high as CNY 150 /ton. Therefore, the improvement of traffic could reduce the cost of villagers to buy drinking water, which further relieves the life stress of women who look after the family throughout the year. In case the land acquisition and resettlement problems are not solved, the project construction will pose potential negative impacts on women. So the negative impact caused by land acquisition and demolition on women shall be considered in the resettlement. Firstly, compared to men, women will have less income and job opportunities due to low-level education and gender discrimination after they lose land, and will be in a bad situation in the labor market. For example, for the same job, a male worker can get more than female. Secondly, in the public meeting of negotiation and participation, women’s demand and interests are often neglected, only a few women show their opinions in public. Thirdly, due to the location of resettlement is far away from farmland, women will become busier to do both household work and farm work, which may lay more stress on women. But resettlement may probably increase the distance from school or hospital to their home, which would result in more time on going out. In order to reduce the negative impact on women, the local government plans to provide more choices for resettlement, so as to ensure each family could have the chance to choose the best one for themselves. If APs choose to build new houses nearby, this problem could be solved; if APs choose the residential land within their villages, the new site of residential land is generally within 1km of the former, and the problem can also be solved. To facilitate income restoration for affected women, various skill-training programs will be provided through a number of ongoing government initiatives. According to women’s needs, relevant training courses such as housekeeping and handicrafts will be introduced to women through Women’s Federation, or the Human Resources and Social Security

Bureau with close cooperation with the Project sponsor. Provision of jobs to women will be prioritized during project construction. Local government should constantly promote the restoration of income of affected females. Firstly, on the basis of actual situation of local females and the small land acquisition of the project, the government can conduct agricultural support for female, and provide them with channels and subsidies for planting high-yield crops and fruiters as well as livestock breeding, so as to restore their incomes as soon as possible. Secondly, relevant departments of government should take the lead of providing various skill training. According to the demand of female, Women’s Federation, Department of Human Resources and Social Security and project sponsor should closely cooperate with each other to introduce relevant training causes to females, such as housekeeping, handicraft, etc. Thirdly, in the project construction period, female should be given priority to employment, with improving the salary for females according to workload. All the above measures have been included in the Gender Action Plan (GAP), which has been extensively discussed with project sponsor. The GAP addresses women’s needs and ensures women will be benefited equally by the Project and to mitigate negative impacts for women that might arise. 3.3.6 Measures in RP in facilitating women’s development Participation and consultation: separate consultation meetings and focus group discussions have been undertaken in each surveyed village. These were very helpful for women to voice their particularly needs on road safety, compensation modes, concerns over compensation standards, etc. Women’s needs, comments and suggestions on the project have been documented and incorporated in the RP, such as training needs of handicraft, landscaping, seedling producing and fruit tree caring. Women show stronger desire for project participation and most of them expressed willingness to take part in the project activity in their free time. They also expressed desires to be informed about the project job opportunities. In terms of compensation on LA and HD, women are not worried about their rights. The national laws and regulations guaranteed that women have equal rights on land use rights and house property legal rights. All households constructed or purchased during marriage automatically have shared-ownership between the couple, regardless of how or to whom the property was registered.

4 Legal Framework and Policies 4.1 ADB's Policy The relevant ADB policy is: ADB Safeguard Policy Statement (2009). 4.2 The PRC’s Laws and Regulations on Land Acquisition and Relocation (1) The Land Administration Law of the People’s Republic of PRC (Amended at the Twelfth Session of the Standing Committee of the Thirteenth National People’s Congress on August 26, 2019; and effective on January 1, 2020)

Main contents: formulations on land ownership, overall land use plan, farmland protection, land for construction, supervision and inspection, legal responsibility, including land expropriation compensation, subsidy standard for relocation, and manner of relocation of relocated people. (2) Regulations on the Protection of Basic Farmland (No.257 Decree of the State Council of The People’s Republic of PRC on December 27, 1998) Main contents: in line with Agriculture Law of the People’s Republic of PRC and the Land Administration Law of the People’s Republic of PRC, concrete formulations for the country’s protection of basic farmland, including delimitation, protection, supervision and management, legal responsibility, etc. (3) Interim Regulations on Farmland Use Tax of the People’s Republic of PRC (No. 511 Document of the State Council issued on December 1, 2007 and effective on January 1, 2008) Main contents: formulations about tax contribution standard and contribution range of state construction occupied Farmland (4) Decision on Furthering Reform of Land Management of the State Council (Guofa [2004] No. 28) Main contents: In order to use the land properly, to protect the legal rights of the farmers whose land i`s expropriated, to maintain social stability, and to perfect the land expropriation and resident relocation system, the decision puts forward the guiding principle and way to perfect the compensation of land expropriation. The decision requires all the county, city and province governments to take effective measures to ensure that farmers’ living standards will not decrease after their land is expropriated, and that according to laws in force, the land compensation, relocation compensation, ground ancillary facilities and young crop compensation are paid in full and in time. If after the payment of land compensation and relocation compensation in accordance with the laws in force, the farmers whose land has been expropriated cannot maintain their original living 31 standard and their social safeguards cannot be paid, the province, autonomous region and/or municipality government should agree to provide further relocation compensation. If the sum of land compensation and relocation compensation reaches the legal upper limit, but the farmers whose land has been expropriated cannot maintain their previous living standard, the local people’s government can offer subsidy with the state-owned land income. The government of province, autonomous region and/or municipality should work out and promulgate the standard of output value or price of land. The land expropriation should be the same price for the same land. National key construction projects should incorporate the expense of land expropriation into its budget. (5) Notice on the Suggestions for Completing Compensation and Relocation System of Land Expropriation by the Ministry of Land Resources of People’s Republic of PRC (November 3, 2004, Guotuzifa [2004] No. 238) The main contents: to put forward how to carry through The Decision of the State Council on Deepening the Reform and Strictly Enforcing Land Administration especially aiming at some problems during the land expropriation compensation and relocation system. There are two aspects: (i) To formulate unified annual output value standard. The provincial land and resources administration along with relevant agencies woks out the minimum unified annual output value of every county in the province, then announce and carry out it after the approval of the province government. The workout of unified annual output value standard should consider the type and quality of expropriated land, the investment on the land, the price of agricultural products, the grade of land, and so on. (ii) To affirm unified annual output value multipliers. The unified annual output value times of land compensation and resettlement subsidy should ensure the farmers whose land is expropriated remain a standard no lower than before and be worked out within the legal limit. According to the legal unified annual output value times, if the land compensation and resettlement subsidy couldn't ensure that the peasants whose land is expropriated can’t maintain the original living level or pay for their social security, the times can be increased after the approval of provincial government. If the sum of land compensation and resettlement subsidy is 30 times as the unified annual output value, the farmers whose land is expropriated couldn't remain the original living standard, the local government can provide subsidy from the state-owned land income. If the basic farmland is expropriated by the legal approval, the land compensation should be carried out according to the highest compensation standard announced by the local government. 32

(6) Real Property Right Law of the People’s Republic of PRC (Order of the People’s Republic of PRC No. 62, in effect as of October 1, 2007) Main contents: In accordance with the Constitution Law, the present Law is enacted with a view to maintaining the basic economic system of the state, protecting the socialist market economic order, clearly defining the attribution of the property, utilization of property, and safeguarding the real right of the right holder. The civil relationships incurred from the attribution and utilization of the property shall be governed by the present Law. 4.3 Relevant Policies of Ningxia Hui Autonomous Region and Xiji County (1) Notice on Implementing Compensation Standard for Land Acquisition for Towns (Cities and Districts) of Ningxia Hui Autonomous Region of the People’s Government of Ningxia Hui Autonomous Region (Ning Zheng Fa [2010] No.3) (taking effect on January 7, 2010) Main contents: Specify the detailed implementation regulations according to the reality of Ningxia Hui Autonomous Region and complying with Land Administration Law of the People’s Republic of PRC. (2) Notice on Publishing the Compensation Standard for Land Acquisition of Ningxia Hui Autonomous Region of the People’s Government of Ningxia Hui Autonomous Region (Ning Zheng Fa [2015] No.101), which was issued and took into effect January 1, 2016. Main contents: According to Land Administration Law of the People’s Republic of PRC and Land Administration Regulation of Ningxia Hui Autonomous Region, decide to publish Compensation Standard for Land Acquisition of Ningxia Hui Autonomous Region after deliberation of executive meeting of the People’s Government. (3) Notice on Issuing Compensation Standard for Land Acquisition and Demolition of the Additional Construction of the Second Line Project in Ningxia Section of Baotou-Lanzhou Railway of the General Office of the People’s Government of Ningxia Hui Autonomous Region (Ning Zheng Ban Fa [2010] No.43); (4) Notice on Compensation Standard for unified Land Acquisition of Xiji County (Xi Zheng Fa [2016] No.41) issued by Xiji County People’s Government in 2016, by referring to Ning Zheng Fa [2015] No.101 document 4.4 ADB’s Policy Requirements on Involuntary Resettlement ADB involuntary resettlement safeguards covers physical displacement (relocation, loss of residential land, or loss of shelter) and economic displacement (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. It covers them whether such losses and involuntary restrictions are full or partial, permanent or temporary. 33

The objectives of the policy: To avoid involuntary resettlement wherever possible; to minimize involuntary resettlement by exploring project and design alternatives; to enhance, or at least restore, the livelihoods of all displaced persons in real terms relative to pre- project levels; and to improve the standards of living of the displaced poor and other vulnerable groups. The basic principles include: (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 gender analysis, specifically related to resettlement impacts and risks. (ii) Carry out meaningful consultations with affected persons, host communities, and concerned nongovernment 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, 34 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 non-land 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 displacement. 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.

4.5 Differences of ADB’s and Local Policies The main aspects of the legal system include the collective land acquisition, the procedures for transferring collective land to the state, house demolition on collective land in rural areas, and house demolition on state-owned land in urban areas triggering the need for compensating and relocating persons, households, and communities. Key gaps between SPS and the PRC’s system and how to the bridge the gaps are as follows: (i) Lack of identification of the poor and vulnerable groups during the screening process. Specific to vulnerable households (men, women, ethnic groups), they are identified by the Government as those who belong to the (i) Five-Guarantee program (the elderly, weak, widowed and disabled members who are unable to work and have no means of living, or whose households lack labor) who are being provided with production and living assistance (e.g. food, clothing, fuel, education and burial expenses) and (ii) those eligible for the Minimum Living Guarantee System and are provided with living subsidy each month. Furthermore, identification of the poor and vulnerable households are only done during implementation. Those who are not considered as vulnerable groups as per Government definition but may become at risk of being vulnerable or experience hardship due to impacts of LA/HD; i.e., may need special support during the transition period (eg during relocation such as provision of labor, transport) will also be identified and will be provided with necessary assistance. Those belonging to ethnic minorities, the elderly, and women-headed-households who do not fall under the Government criteria require greater in-depth assessment during DMS to determine their vulnerability. In this project, there are 62 vulnerable households (VH) with 255 people affected by the project. All of 62 VHs will be only affected by land acquisition. (ii) Lack of documentation on the consultation and information disclosure activities, and grievances received. Meetings and interviews held with the affected households are reflected in the RP and will continue to be documented during RP implementation. The grievance redress will also be documented as part of the monitoring reports. Disclosure of the key information in the RP will be carried out through the distribution of resettlement information booklets in local language.

(iii) Inadequate social and risk analysis as resettlement planning is focused on loss of land and impacts on houses. Impact assessment was carried out during RP planning through the conduct of socioeconomic surveys, consultation meetings, inventory of losses, and key informant interviews. Gender analysis was also carried out. Such measures led to the preparation of project entitlements, relocation, rehabilitation, and gender strategies; and they are reflected in this RP. (iv) Assistance to households who are not eligible for compensation of houses at replacement cost. Based on the Regulations on the Demolition and Compensation of Houses on State- owned Land (2011), the illegal houses and temporary structures which were constructed after the approval period will not be compensated. However, if the Aps belong to the vulnerable groups and are in need of housing, they will be assisted in securing affordable housing or low-rent housing which is 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 the affordable housing and low-rent housing. Compensation for non-land assets will be at replacement cost and provision of resettlement assistance similar to those who have licensed houses provided that the affected households meet the Project’s cut-off date. If an earlier cut-off date has been established by the Government, the Government’s cut-off date will be followed provided that the following conditions are met: (i) copy of Halt Notice for Land Acquisition and House Demolition/ pre-notice for Land Acquisition and House Demolition published, (ii) documents confirming dissemination of information (billboards, minutes of public meetings, letters to households, newspapers, websites, broadcast, etc), and (iii) confirmation from households that they were informed about the cut-off-date verbally and in writing. For households who are not eligible for compensation for houses at replacement cost, the history or reason why the structure has no certification/license; and their socio-economic conditions and vulnerability will be assessed by the Project (through its 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. In this subproject, there were no illegal houses found. (v) Inadequate monitoring and reporting arrangements Monitoring is not done on a regular basis. Each implementing agencies have their own way of monitoring and documenting the process. 37

For this Project, regular monitoring and submission of monitoring reports should be carried out. An external monitor has been engaged by the PMO. All monitoring reports will be submitted to ADB and disclosed to the public.

5 Compensation Principle and Entitlement 5.1 Resettlement Principles The principles for compensation and entitlement of the Project have been developed in accordance with the regulations and policies of the PRC and ADB, with the aim of ensuring that APs obtain sufficient compensation based on replacement cost and assistance so that their production and livelihoods are at least restored to pre-project levels. Table 5-1 presents the resettlement principles of the Component. Table 5-1 Resettlement Principles of the Component

No. Principle 1 Involuntary resettlement should be avoided where feasible. The APs are granted compensation and rights that can at least maintain or even improve their 2 livelihoods in the absence of the project. The rate of compensation for acquired housing, land and other assets will be calculated at full replacement costs. The APs are given compensation in full replacement cost and assistance in resettlement whether 3 legal title is available or not. If the land available to everyone is insufficient to maintain his/her livelihood, replacement in cash 4 or in kind and other income-generating activities are provided for the lost land. The IA will ensure that APs fully understand their entitlements, the method and standard of 5 compensation, the livelihood and income restoration plan, and the project schedule, and participate in the implementation of the RP. The IA will ensure that no physical displacement or economic displacement will occur until (i) compensation at full replacement cost has been paid to each AP for project components or sections that are ready to be constructed; (ii) other entitlements listed in the RP have been 6 provided to APs; and (iii) a comprehensive income and livelihood rehabilitation program, supported by an adequate budget, is in place to help APs improve, or at least restore, their incomes and livelihoods. Vulnerable groups are provided special assistance or treatment so that they lead a better life, and 7 all APs should have an opportunity to benefit from the project. At least two members of each AH receive skills training, including at least one woman. 8 The resettlement plan should combine with the overall planning of county/ city/ district. If feasible, changing from “agricultural to non-agricultural” status can be provided to LEF on a 9 voluntary basis. All resettlement cost is included in the project budget and sufficient to cover all affected aspects. 10 The fund needs to be paid in time. The IA and an external monitoring agency will monitor and measure the progress of 11 implementation of the RP and will prepare monitoring reports to ensure that the implementation of the RP has produced the desired outcomes. 5.2 Cut-off Date of Compensation The cut-off date for the eligibility for compensation is on July 31, 20194, which is also the date of Xiji PMO and RO conducting resettlement DMS . Any newly claimed land, newly built house or settlement in the project area by the APs after this date is not entitled to compensation or subsidization. Any building constructed or tree planted purely for extra compensation is not counted in the inventory of losses. For those HHs who will not be affected, they were notified during DMS.

4 In the RP 2016, the cut-off date is November 1, 2016, which is also the planned date of DMS. 39

5.3 Compensation Rate for Permanent Land Acquisition According to the Notice of Further Regulating the Farm Road Land Affirmation Work of the General Office of Ministry of Land and Resources(Guo Tu Zi Ting [2013] No.581): “ First, farm roads refer to the roads (inclusive of farm track) that conform to the definitions for land in Land-use Status Classification (GB/T21010-2007)”, and is used for the transportation in village and field within the rural scope and served rural agricultural production outside of the state road network system. The public roads (inclusive of interchange) in town and village and land for border tree are not farm roads. Second, the width of farm roads shall not be larger than 6.0 m, or the width of subgrade not larger than 6.5 m. The width of farm roads or the width of subgrade exceeds the upper limits after reconstruction and expansion, and the roads only with one-way lanes shall not be identified as farm roads and shall be incorporated into the management scope of construction land.” The subproject does not belong to rural road construction, and if land acquisition and resettlement within the area of Ningxia is involved, policies shall be formulated in accordance with the Government’s requirements for construction land. According to the Notice on Compensation Standard for unified Land Acquisition of Xiji County (Xi Zheng Fa [2016] No.41)，the standards of land requisition compensation from ADB of this project for Xiji county are as follows: The dry land/homestead: CNY 13,472/mu; Forest(shrub) and grassland: CNY 8,083/mu; Young crops: CNY850/mu. The standards of draft RP land acquisition compensation were drawn up according to Ning Zheng Fa [2015] No. 101, and dry land/homestead and young crop compensation standards are same with Xiji current compensation standard. According to Ning Zheng Fa [2015] No.101, the forest-land(arbor) is compensated with 70% of the dry land compensation standard, namely, CNY 9,430/mu; Grassland and shrub-land is compensated according to the 60% of dry land compensation, that is, CNY 8,083/mu. All compensation rates are the same as in the RP 2016. The project involves of Gansu region, all of which are only the reconstruction of old road without any impact of land acquisition and house demolition. Table 5-2 has summarized the compensation standard for land acquisition of this RP by land category.

Table 5-2 Compensation Standard for the Project Land Unit: CNY /mu

Dry land/residential Forest- Forest- Young Category land land(arbor) land(Shrub) crops Compensation standard for Xiji 13,472 9,430 8,083 850 5.4 Temporary Land Occupation At present stage, according to the designing scheme, the project involves a temporary land occupation of 144.5mu. The compensation for temporary land occupation shall be calculated according to years of the land occupation, the standard referred is the Notice on Compensation Standard for unified Land Acquisition of Xiji County (Xi Zheng Fa [2016] No.41) , the compensation standard of temporary dryland occupation was determined as CNY 850/mu. Up to two years of land occupation, and the occupied land shall be restored to be the original shape before it is returned to the owner. 5.5 Compensation Rate for House Demolition The compensation for all houses demolished will follow the following principles. (i) Full replacement costs without depreciation: House demolition will be compensated at replacement costs. Table 5-4 has the detailed cost estimations based on the local house construction practice by type. The affected persons shall receive full replacement price without depreciation for the original house. Meanwhile, the affected people can use the building materials of the original house free of charge/cost. (ii) Various voluntary replacement choices available: The affected household can choose scattered settlement by providing similar condition of individual housing site, or choose concentrated settlement by participating in new rural construction scheme or other planning construction projects of the government, or self-settlement by using cash compensation. (iii) No demolition prior to new house ready/or agreement on new house plot/ apartment units singed: No house demolition will commence prior to the new house constructed or transition house arranged. Transition period should not be over 6 months. The affected households will obtain transition compensation prior to moving to the new house. In case of some household facing difficulties of moving, village committee and Xiji PMO will provide assistance of transport. For those household facing difficulties to find transition house, the village committee and Xiji PMO will provide assistance in renting. According to the policy of Asian Development Bank and regulations of PRC, market price evaluation is adopted for the rural residential houses of the RP. The houses to be demolished will receive compensation according to the “replacement price”, the compensation price will be determined through market price evaluation, and will not be

41 lower than the compensation base price of the RP. The compensation base standard for house demolition is formulated based on the Notice of Issuing Compensation Standard for Land Acquisition, Demolition, and Resettlement of the Second Line Rebuilding Project for Baotou-Lanzhou Railway in Ningxia (Ning Zheng Ban Fa [2010] No.43. Table 5-3 shows the classified compensation standards. According to the updated construction cost based on the price in 2019 in table 5-4, the compensation standards are higher than the construction cost. Final compensation will be finalized based on appraisal which will be conducted by a qualified appraiser and negotiation with the AHs. Table 5-3 Compensation Standard for Demolition of Residential House and Ancillary Facilities5 Type Base Structure type Unit Remark price House Residential land CNY/mu 13,472 The compensation for the on Compensation Brick-wood6 CNY/m² 600 house shall not be lower than collective for house the proposed base price. land Earth-wood CNY/m² 310

Table 5-4 Estimation of Construction Cost of House by Type (updated) (per 100m²) Brick-wood Earth-wood Item No. Unit price Amount Unit price Amount No. (CNY) (CNY) (CNY) (CNY) A. Subtotal of main 29, 780 11,830 building materials Wood 4 1,000 4,000 5 1,000 5,000 Concrete 8 450 3,600 0 0 0 Adobe 0 0 0 12,000 0.2 2,400 Brick 50,000 0.35 17,500 1,000 0.35 350 Lime (coating) 4 400 1,600 6 400 2,400 Tile (tilestone) 8,000 0.21 1,680 8,000 0.21 1,680 Sand 20 70 1,400 0 0 0 B. Subtotal of 7,500 7,000 other materials Nails, iron wire, Nails, iron wire, Miscellany 2,500 3,000 electronic charge electronic charge Water and 5,000 4,000 electricity materials C. Subtotal of 19,000 12,000

5 In the RP 2016, relocation subsidy (CNY 1000/HH) and transition subsidy (CNY300/HH/Month for 6 months) will be provided even for HHs affected by partial house demolition. It’s confirmed by the Xiji PMO that this’s a mistake in the RP 2016 as these HHs don’t require relocation and transition. 6 In the compensation standard of Ning Zheng Ban Fa [2010] No.43 document, the Brick-wood price is CNY 500 /m2 and the Earth-wood price is CNY 210 /m2, but the standard was released in 2011. In view of the current economic and social development, the standard has not been suitable for the existing housing compensation. Hence, through the consultation with the representatives of affected villages, and comprehensive consideration of the local current economic level and the compensation policies of Xiji County in the past, it is increased to CNY CNY 600 /m2 and 310 /m2 respectively. 42

Brick-wood Earth-wood Item No. Unit price Amount Unit price Amount No. (CNY) (CNY) (CNY) (CNY) labor Skilled 70 200 14,000 40 200 8,000 Unskilled 50 100 5,000 40 100 4,000 Total 56,280 30,830

5.6 Compensation for Ground Attachment and Infrastructure The compensation standard for the ground attachment facilities and infrastructure of the subproject is determined based on the principle of “replacement price”, shown as Table 5- 5. Table 5-5 Compensation Standard for Ground Attachments and Infrastructure

Item Unit Compensation standard （CNY) Lair ㎡ 60 Brick wall m 170 Earth wall m 60 Toilet ㎡ 500 Concrete floor ㎡ 150 Brick shed ㎡ 120 Cellar single 1,000 Cave dwelling ㎡ 200 Grave single 2,000 Weed tree(φ<10cm) single 35 Weed tree(10<φ<30cm) single 42 Spruce (plant height 0.8~1m) single 10

5.7 Compensation for Young Crops In accordance with Article 29 of Measure of Ningxia Hui Autonomous Region on Implementing Land Management Law of the PRC, and based on the unified annual value of production in project area in Xiji County, compensation standard for young crops of Xiji County is CNY 850/mu. 5.8 Standard of Other Costs The standard of other expenses is given in Table 5-6. Table 5-6 Tax and Fee Standard of Resettlement No Item Tax and fee standard Policy basis Notice on re-issuing the Levying Farmland Land reclaiming Reclaiming Fee and Use Management Methods of 1 CNY2,666.8 /mu fee Ningxia Hui Autonomous Region. Ning Cai (Zong) Fa [2012] No.13) Notice on Adjustment of Policy of New Construction New Land Use Fee of Ministry of Finance, Ministry of Land 2 construction CNY6,667/mu and Resources and People's Bank of PRC (Cai Zong land use fee [2006] No. 48); Notice on Adjustment of Classification

No Item Tax and fee standard Policy basis of New Construction Land Use Fee in Some Regions by Ministry of Finance and Ministry of Land and Resources (Cai Zong [2009] No. 24) Farmland Provisional Regulations on Farmland Occupation Tax 3 CNY3,333.5/mu occupation tax of the People’s Republic of PRC

5.9 Entitlement Matrix

The entitlement matrix has been established in accordance with the applicable policies in this chapter. See Table 5-7 for details.

Table 5-7 Compensation Entitlement and Resettlement Policy Matrix

Affected Type of loss Impact degree Compensation policy Compensation standard person a. Pay land acquisition compensation to the rural collectives according to the compensation standard in Land within the project Table 5-2 of this RP implementation area - b. Payment by affected road right of way Unit: CNY /mu village collectives of cash (estimated as 1815.9 a)20 affected Dry compensation (100%) to Forest- Forest- Permanently mu of collective land, villages land/resid Young AHs losing land with user Category land(arb land(Sh acquired collective mu,including Dryland collectives ential crops rights if land is contracted to or) rub) land of 1356.4 mu, b) 5,132 APs of land APs residential land of 2.9 1171 HHs who Compensation c. Cash compensation for all 13,472 9,430 8,083 850 mu, and lose their land. standard the ground attachment (e.g., forestland(shrub) of trees) according to 456.6 mu) standards in Table 5-5 and standing (young) crops according to standard in Table 5-2. Land temporarily used Cash compensation for the as construction area To be determined annual loss during land loss Temporary loss of within the project during period. Restore to the status The dryland of temporary occupation compensation standard land implementation area or construction prior to the construction, and is CNY 850 /mu per year. close by area period maintain the life of APs at the (estimated as 144.5mu) former level at least. Cash compensation for Structure Base AHs, including residential Unit Remark type price 1343 m2 structures, 10 households land, and housing, and Residential including 1178 and 43 attachments. Cash CNY/mu 13,472 The compensation for the Loss of structures land residential houses and persons/village compensation for various house shall not be lower 165 m2 medical room committee housing type according to Brick-wood CNY/m² 600 than the proposed base the replacement cost in price.

Earth-wood CNY/m² 310 Table 5-3.

45 Affected Type of loss Impact degree Compensation policy Compensation standard person

All facilities within the Cash compensation based on Affected public project implementation Proprietor of all the market price and Proprietor receives the total compensation facilities area (no impacts have facilities negotiation with proprietor been identified yet)

These HHs can still benefit from the local ongoing targeted poverty alleviation project. A series of additional measures have been put in place to help them with income restoration and will be closely monitored.

(1) The households with a labor force will be given priority in skill training and Any affected person priorities given in provision of In the same condition, enjoy the priority of project Vulnerable groups who is also vulnerable 62 households arranged jobs by the project compensation and assistance and local government. Eliminating zero employment of poor households (with a labor force) is the target of government poverty alleviation; it will also be the target of this project.

(2) According to the MLSS policy of Xiji County, eligible vulnerable groups affected by the Project will be included in the MLSS before land acquisition and receive MLSS

46 Affected Type of loss Impact degree Compensation policy Compensation standard person subsidies each month. The PMO will assist the VHs to apply the MLSS subsidy.

47 6 Income Restoration and Housing Resettlement Measures

6.1 Impact of Land Acquisition and Income Restoration Measures

6.1.1 Impact of land acquisition The subproject involved permanent land acquisition of 1815.9 mu of rural collective land, including farmland of 1356.4 mu, residential land of 2.9 mu, forest land of 456.6 mu. The land acquisition will affect 5132 persons in 1171 households in 19 administrative villages of 4 towns of Xiji County, 10 households and 43 people are affected by the house demolition. For the 19 affected villages, land loss rate caused by LA is only 0.96%; for Shencha Village of Jiangtai Town, farmland loss rate is the highest, being 1.92%. Crops in Xiji County are mainly wheat, corn and potato. In the 19 administrative villages within project area, annual average value of farmland is about CNY 600/mu. In addition, according to the survey, the cost of production is about CNY 100/mu for grain crops. So net income of farmland is around CNY 500/mu based on the main crops in project area. Therefore, even for Xingping Village which has the highest farmland loss rate(7.56%), loss of revenues from farmland due to LA shall be CNY 47,900 which is only 1.18% of the total income of all APs of Xingping Village in 2018 (CNY 4,059,200). What’s more, for households affected by LA, calculated according to the highest loss rate of 8.67% (1 household in Xingping Village that has 15mu farmland, and 1.3mu is acquired), and without calculating the compensation for LA, the direct income loss shall be CNY 650/year, which is only 1.9% of the total annual income (about CNY 32,680). No household in the project area will suffer from farmland loss rate above 10%. Therefore, for neither the affected village nor the affected household, LA of the project will exert no significant influence (see Table 6-1).

48 Table 6-1 Permanent Farmland Acquisition Impact

Before land acquisition After land acquisition Income loss Per Rate of Per Total AHs of APs of Farmlan Total capital Per Roa Affected Total Per HH Farmlan Town Total capita farm land land d loss income average capital d Village populati farmlan d loss HH income land acquis acquisiti rate of lost income average on d (mu) (mu) (CNY) (mu) ition on AH % (CNY) loss income (CNY) loss (%) Maogou 348 1414 10,550 4640 13.33 93 379 83.3 6.72% 41,650 110 1.04% Jiangtai Mingtai 688 2984 11,400 3567 5.18 120 508 43.1 6.93% 21,550 42 0.37% Shencha 318 1450 9,900 3660 11.51 89 338 70.1 6.84% 35,050 104 1.05% Xitan 445 2220 9,100 18600 41.8 74 358 170.6 5.52% 85,300 238 2.62% Xitan Heihugou 420 2180 8,900 10600 25.24 70 296 108.2 6.12% 54,100 183 2.05% Gancha 303 1431 9,800 8990 29.67 72 342 135.5 6.34% 67,750 198 2.02% Jian Youai 540 2400 8,800 7500 13.89 102 433 99.6 7.03% 49,800 115 1.31% gtai- Xingping Wangbao 420 2260 9,120 6560 15.62 80 412 86.4 6.91% 43,200 105 1.15% Xita Xingping 818 3100 8,600 8500 10.39 122 472 95.8 7.56% 47,900 101 1.18% n- Pingfeng 232 1167 9,300 11300 48.71 46 113.5 5.07% 56,750 234 2.51% Ping 243 feng Sanhe 368 1841 8,750 5000 13.59 38 185 33.7 6.53% 16,850 91 1.04% Roa Miaoping 412 1782 8,700 7948 19.29 33 123 40.8 6.41% 20,400 166 1.91% d Chentan 319 1386 8,200 5280 16.55 29 132 28.5 5.94% 14,250 108 1.32% Minhe 342 1420 8,700 6850 20.03 32 133 35.3 5.51% 17,650 133 1.53% Pingfeng Shawa 348 1560 8,640 8856 25.45 41 180 56.5 5.41% 28,250 157 1.82% Wangnao 330 1476 8,300 5673 17.19 33 145 33.7 5.94% 16,850 116 1.40% Libao 232 960 8,300 5555 23.94 32 132 46.4 6.06% 23,200 176 2.12% Gaozhao 305 1760 8,240 5580 18.3 30 166 35.8 6.52% 17,900 108 1.31% Bacha 348 1550 8,500 6000 17.24 35 155 39.6 6.56% 19,800 128 1.50% Tota 4 19 7536 35622 9,111 140659 18.66 1171 5132 1356.4 6.21% 678,200 132 1.45% l Source: Socioeconomic and physical impact survey in July 2019

49 6.1.2 Income restoration plan and assistance measures The land acquisition impact is limited and no household will lose more than 10% of their farmland or income, and thus there is no significant effect on APs’ livelihoods. Consequently, the rehabilitation strategy focuses on income restoration rather than livelihood restoration. The income restoration plan formulated is based on the will of the APs, impact degree and the feasibility of the potential options in each village. During the field consultation, cash compensation, agricultural resettlement with or without land readjustment, arranged jobs during the project construction and operation, assistance to non-farming employment and self-employment, social insurance approaches were discussed. Table 6-2 summarizes the preferences expressed by APs. Table 6-2 Summary Sheet of Income Restoration Willingness of the Acquired Households

Selection of resettlement willingness of AHs No. Agricultur No. of Job Social Self- Social Road Town of al AHs arrangem employm employm Insuran APs resettlem ent ent ent ce ent Jiangtai 302 1225 62 77 122 41 302 Jiangtai-Xitan- Xitan 216 996 34 55 112 15 216 Pingfeng Road Xingping 304 1317 45 72 151 36 304 Pingfeng 349 1594 67 78 173 31 349 Total 4 1171 5132 208 282 558 123 1171 Proportion （%） 17.76% 24.08% 47.65% 10.50% 100% Source: Socioeconomic and physical impact survey in July 2019 (i) Cash compensation and distribution The affected villages/village groups will be compensated in cash based on the standards discussed in Section 5, where compensation rate per mu for project area in Ningxia is: dryland/residential land CNY 13,472, and forest land CNY 9,430. Due to small area of LA, there’re two schemes as to land compensation and allocation for villages and APs: 1) If the land is contracted to APs, 100% of the compensation will be distributed to APs directly based on the will of the affected people. 2) If the land is not contracted to APs, the compensation will be reserved for village infrastructure maintenance or improvement. For young crops not harvested, the compensation rate is CNY 850/mu, which will be given to the affected households directly. The compensation will be listed into the general compensation standard for affected households. For the compensation rate, the current land lease price, average annual value of production and farmland income have been taken into consideration. According to the current land-leasing price in the project area, dry farmland (the main farmland type) is

50 CNY 200-300/mu per year, depending on location for convenience of transport. The project compensation for dry farmland per mu is CNY 13,472 that is worth of land leasing price at the existing higher rate of CNY 300 for 45 years, 20 times of annual average output value (CNY 700/mu) and 45 times of net income (CNY 300/mu). Due to limited land acquisition per household and high compensation rate, most of APs are not worrying about income loss caused by land acquisition because the compensation will free up three labor and the road will bring new economic opportunities. Also, to ensure that the affected households use the compensation in a rational manner, Xiji PMO and other related agencies will provide guidance and required training. The following are restoration options and assistance measures for households affected by permanent land acquisition. (ii) Agriculture Arrangement About 214 AHs or 18% of the total AHs chose agriculture restoration. They will use the cash compensation to improve the remaining land by increase of fertilizer use or change grain crops plantation to cash crops plantation such as garlic, allium mongolicum regel, flax, and other industrial crops which require intensive labor and capital investment. It is estimated that the plantation of garlic, allium mongolicum regel, flax and other industrial crops will increase annual income of CNY 300-500/mu, compared to the annual income of CNY 700/mu generated by crops. The annual growth is about 30% to 100% a year. It will be easy to offset their economic loss caused by land acquisition. For the garden seedlings and fruit tree plantation, corresponding training will be provided. For other crop plantation types, training is not desired by APs because most households have such skills already. It is estimated that about 50 members need training on garden plant seedling production and fruit tree care. (iii) Jobs Arrangement About 270 APs expressed interest in job arrangement for this project. The Ningxia Transport Department and Xiji PMO o committed to give priority to employing APs for the job opportunities from this project. But they will be arranged according to the actual demands for work during implementation. It is estimated around 200 unskilled jobs are only available during project construction, and 10-20 jobs during operation, including road maintenance, greening and cleaning. Their preferential treatment shall be implemented according to the provisions of Labor Law. All interested in the jobs will receive training. It is estimated a total of 200 APs will be trained. Table 6-3 summarizes the direct job opportunities from the project.

51 Table 6-3 Project employment information Proposed Planned Standard Projected Proposed Jobs No. targets workdays income income employment time (day) (CNY) (CNY) 50 After the project Local Earth- moving 20 CNY 80/day 32,000 starts (estimated villager 25 from July 2017 to Local Logistical July 2018) villager 100 CNY 50 /day 50,000 support

Road 75 Local After project 200/year CNY 50 /day 100,000 maintenance villager completion (2018 50 Local Unskilled labor onwards) 100/year CNY 80 /day 80,000 villager 200 Local Total villager Note: The remuneration for above jobs will be paid by day due to the existing financial system and job nature. The annual income of the position is predicted under full workload. Source: Socioeconomic and physical impact survey in July 2019 (iv) Non-farming employment/business As the income loss per household from land acquisition is quite limited and agricultural income is no longer their main income sources, about 681 AHs (58.15% of total AHs) stated that they will spend the land compensation and saved time on non-farming employment or self-employment business to offset their income loss. As indicated in Table 6-1, the maximum AP loss is CNY 650 per year in Xingping Village, 4~5 days of non- farming employment at a common rate per day would cover their annual income loss. As discussed in Section 3, over 80% of the households’ main income is from non-farming sources and agricultural source is supplementary. Regarding labor input, four basic models are used in operating their farmland: 1) by either female or the old family members left home to carry out agricultural plantation; 2) with the migrant family members who come back home during busy season to help with planting or harvesting, 3) by giving land to relatives to plant without charge, or 4) leasing out the land convenient for irrigation and transport at a price of CNY 100~150 per mu per year. Before year 2000, almost all households adopted the first two models, but now more and more households adopt the last two models to avoid interruption to their non-farming migrant jobs. For female left at home, they are willing to spend their saved time in either handicraft or finding local non- farming jobs. The surveyed households expressed their interest in non-farming jobs stimulated by the road improvements and hoped the project can provide market information and skills about handicraft, local non-farming jobs or business opportunities (including transport services). It is estimated that about 300 people need relevant skill training which has been provided for in the budget of this RP. (v) Training

52 Based on the above restoration options chosen by the AHs, training programs will be designed to meet the specific needs and preferences of AHs. For the households that choose agricultural improvement measures, agricultural technical training such as gardening plant seedling producing, fruit tree plantation and other cash crop plantation will be provided as required. For the non-farming employment, skill training will include landscaping, house decoration, handicraft production, car repair, transport services and other skills. It is estimated that about 100 AHs with 150 members require such training. Additionally, training in the form of farmer-back-farmer training will be organized. The farmers with skills in cash crops could be invited to share experiences and skills to the new growers in the same or other villages. It will be useful to organize study tours to other villages for APs who are interested in planting new cash crops. It will either be organized by Xiji PMO directly or by entrusted government agencies such as agriculture bureau, forestry bureau, or women’s federation. In terms of non-farm training, it will be delegated to labor and social insurance bureau. A total of CNY 50,000 has been budgeted in the RP. Table 6-4Training Plan for Project Implementation Year Target Scope Agency responsible Budget Gardening plant seedling 800 people plantation, fruit tree or other new CNY 50,000 in total, cash crop plantation, handicraft PMO, women’s included in project including production, farm machinery, federation, labor and 2020~20 RP budget in 450 motorcycle or other vehicle repair, social security 21 addition to local females driver, stonecutter, painter, bureau, agriculture government fiscal and 350 concrete worker, waterproofing and forestry bureaus funds. males worker, masonry worker, house decoration worker, etc. Source: Field Socioeconomic survey and survey on physical impact, July 2019. (vi) Social insurance All affected households expressed their interest in social insurance. However, the endowment insurance for land-expropriated farmers (LEF) only targets at eligible households. The land acquisition of the component is linear, so there are few opportunities to create LEF. No endowment insurance will be provided if there are no eligible APs. However, the APs are encouraged to participate in the general pension and insurance. To guarantee the vulnerable groups livelihood restoration, MLSS will be made available for officially identified poor. Other insurance options are optional and subject to APs voluntary decision. Since APs will receive cash compensation, they will have an opportunity to participate in voluntary programs; this may be attractive for older farmers.

53 As mentioned above, this project provides land acquisition farmers with diversified relocation measures, which widely covers affected households. See details in Table 7-5.

6.2 Demolition and Housing relocation Plan

I. House Demolition Impacts and Relocation options The subproject will involve demolition of 1,178 m² of housing and will affect 10 households with 43 members. In addition, 165 m2 medical room belongs to village community will be demolished. The village committee will allocate land and rebuild it. The affected households list is shown in Table 6-5. Guided by the principles of housing demolition and resettlement in this resettlement plan and after negotiation with affected people and relevant organizations in the village and town, a preliminary demolition and resettlement scheme was formulated as shown in Table 6-5: Table 6-5 Demolition Scheme of Residential Houses

House Head of Population Demolition Town Village Demolition Resettlement household situation (Persons) area (㎡) Mingtai Zhang Part Resettlement 4 122 Wanliang demolished on site Part Resettlement Mingtai Zhang Wanhai 5 124 demolished on site Part Resettlement Mingtai Xie Weihong 4 115 demolished on site Jiangtaibu Part Resettlement Mingtai Qu Xiaobin 4 106 demolished on site

Part Resettlement Mingtai Jin Wenwu 3 107 demolished on site

Part Resettlement Mingtai Wang Wenkui 5 106 demolished on site Part Resettlement Subtotal 1 6 25 680 demolished on site Part Resettlement Gancha Bai Yanling 3 119 demolished on site Part Resettlement Gancha Hu Jingping 6 110 demolished on site Xitan Part Resettlement Gancha Bai Dengfa 5 140 demolished on site Part Resettlement Gancha Bai Yunfei 4 129 demolished on site Part Resettlement Subtotal 1 4 18 498 demolished on site Part Resettlement Total 2 10 43 1178 demolished on site the village Village Completely committee will Xitan Gancha Health Room 165 collective demolished arrange land and rebuild.

54 House Head of Population Demolition Town Village Demolition Resettlement household situation (Persons) area (㎡) Amount to 43 1343 832 511 Source: Socioeconomic survey and survey on physical impact in July 2019 Because the area of the residential land of the affected households above is large, which are all larger than 2 mu, and are enough to build new houses at the remaining residential land. Therefore, all affected households chose to be resettled on site and be compensated in cash.

6.3 Measures for Vulnerable Groups

Due to the targeted poverty alleviation project implemented by local government from 2016 to 2019, the poverty alleviation fund7 acquired by each household has reached over CNY 80,000 averagely, which is much higher than the standard of CNY 3,000/HH as indicated in the original RP. These VHs can still benefit from the local ongoing targeted poverty alleviation project. A series of additional measures have been put in place to help them for income restoration and will be closely monitored. • The households with a labor force will be given priority in skill training and priorities given in provision of arranged jobs by the project and local government. Eliminating zero employment of poor households (with a labor force) is the target of government poverty alleviation and it will also be the target of this project. • According to the MLSS policy of residents of Xiji County, eligible vulnerable groups affected by the Project will be included in the MLSS after land acquisition and receive MLSS subsidies each month. The PMO will assist the VHs to apply the MLSS subsidy.

6.4 Women’s Development Measures

During the resettlement process, women’s rights and interests will be fully protected, and women will play an important role in socioeconomic and resettlement activities. Ensuring women’s equal rights: During the preparation of RP, separate meetings were held with female representatives of APs and the Women’s Federation in order to allow women to express their needs, expectations and suggestions on resettlement and restorations measures. Most of them including women-headed households stressed their concerns, namely: (i) receiving compensation on time; (ii) selection of resettlement mode

7 including reconstruction of dangerous houses and poverty reduction project which help the VHs increase their income 55 and housing land, (iii) improving agricultural production with limited farmland; and (iii) operating small businesses at home or at agricultural product fairs or markets with either the compensation or small loan which will be provided by the project. Measures to address these concerns have been included in the RP. Training priorities to women with preferential training methods and content: As women have relatively lower education levels and experience generated in migrant jobs, they have less available employment and income generation choices than men. Training is particularly crucial to them in developing new income sources given to opportunity generated from the industrialization and urbanization development. They hope to have not only agricultural skill training on horticulture, fruit tree caring, but also non-farming skills with handicraft, urban employment skills such as hotels, restaurants, shopping malls, and skills working in factories e.g. garment factories. Their training needs have been designed in this RP and training budget has been reserved (refer to Section 6.1). The project will ensure that 40%-67% training opportunities are provided for the affected females. The Women’s Federation representatives together with the employer agencies will further consult with women to detail the training design on methods and contents. Providing and assisting women to apply for the project-generated job opportunities: For those who are interested in participating in project job opportunities, Women’s Federation staff at the township and village levels will be responsible to inform them of job opportunities in advance and facilitate women to apply for the employment. Basic skill on landscaping and other relevant skill training will be provided prior to recruitment.

6.5 Recovery Plan of Ground Attachments and Special Facilities

To minimize disruption to residents, detailed surveys have been done and the budget has been included in the RP budget. The relevant line agencies will be responsible for detailed relocation planning and rebuilding electric power and communication facilities. For relocation of graves, based on consultation, cash compensation will be paid. The village committee will assist the AHs to select the location since there are enough unused land in the village.

7 Institutional Arrangements

7.1 Institutional Arrangements

Since resettlement is a very comprehensive task that needs the assistance and cooperation of various departments, relevant departments including transportation department, department of land and resources, department of finance, etc. shall participate in and support resettlement implementation. Each affected town/township or village has one or two chief leaders responsible for resettlement. The agencies responsible for the LA and the HD in the Project are: • Leading Group for Poverty Relief Road Project with ADB Loan of Transportation Department of Ningxia Hui Autonomous Region • Project Management Office for Poverty Relief Road with ADB Loan of Transportation Department of Ningxia Hui Autonomous Region • Xiji County Transport Bureau (implementing agency which also has a PMO) • Xiji County Project Resettlement Office of Poverty Relief Project with ADB Loan • Project town/township governments • Village committees • Project design institute • External monitoring and evaluation agency • Other departments: Land Resources Bureau (LRB), Demolition and Relocation Office, Women’s Federation, Labor and Social Security Bureau.

57 The Organizational Chart is shown in Figure 7-1.

Ningxia Transportation Department Project Leading Group with ADB loan

Project Management office with ADB Loan of Ningxia Transportation Department

Xiji Transportation Bureau Project design Internal External institute monitoring monitoring Xiji Project Resettlement Office

Town governments

Village/ Community committees

Affected people

AH by HD AH by LA Infrastructure

Figure 7-1Project Relocation Organizations

7.2 Organizational Responsibility

(i) Leading Group for Poverty Relief Road Project with ADB Loanof Transportation Department of Ningxia Hui Autonomous Region Leading Group for Poverty Relief Road Project with ADB Loanof Transportation Department of Ningxia Hui Autonomous Region is the executing agency for the overall deployment of the Project and solving major issues. The group includes Comprehensive Planning Department and Road Management Department, and is led by Deputy Director of Transportation Department of Ningxia Hui Nationality Autonomous Region. Ningxia PMO is the working body of Ningxia Hui Autonomous Region Project Leading Group as coordinating agency in charge of applying for ADB loan, coordinating the

58 formulation and implementation of RP, monitoring and evaluation of the RP implementation. (ii) Leading Group and Management Office of Poverty Relief Project with ADB Loan of Xiji County Xiji County People’s Government is the implementing agency of this Project, and the project leading group consists of heads from relevant bureaus, including transport bureau, land and resources bureau, resettlement bureau, development and reform bureau, etc. Xiji County PMO is the key working body set up in Xiji County Transport Bureau, responsible for the project management, coordination, supervision, direction, quality assurance and annual planning, and the follow-up monitoring of the implementation, reporting to Ningxia Hui Autonomous Region Project Leading Group regularly. The main responsibilities in resettlement include organizing the resettlement work of the project, developing the local policy on resettlement activities, coordinating relations among resettlement agencies at all levels, coordinating the work of the bureaus concerned at the preparation and implementation stages, and making decisions and consultation on major issues arising from construction and resettlement. (iii) Xiji County ADB Loan Poverty Reduction Road Project Resettlement Office Xiji County ADB Loan Poverty Reduction Road Project Resettlement Office, consisting of 4 persons, responsible for identifying and confirming the quantity of land acquisition and house demolition, special facilities and ground attachments, conducting the DMS and saving data; assisting in preparing the RP and implementing RP; selecting resettlement officials for operational training; organizing public consultation, and communicating resettlement policies; directing, coordinating and supervising LA and resettlement activities and progress; disbursing resettlement costs according to the agreement and handling grievances of APs; assisting and supervising the affected villages’ carrying out economic rehabilitation plans and ensuring the income restoration of the affected people; carrying out internal monitoring, preparing internal monitoring reports and reporting to Xiji County PMO. (iv) Town/township Government The town/township resettlement offices, headed by each Town/township leader are comprised of key officials of the land and resources office, police office, civil affairs office and villages. The main responsibilities are: • Participating in the survey of the Project, and assisting the preparation of the RP. • Organizing public participation, and communicating the resettlement policies;

59 • Implementing, inspecting, monitoring and recording all resettlement activities within the town; • Settling the house demolition and reconstruction; • Responsible for the disbursement and management of land compensation fees; • Supervision of LA, HD, income restoration and house reconstruction; • Reporting LA, HD and resettlement information to Xiji County Project Management Office; • Coordinating and handling conflicts and issues arising from its work. (v) Village committees and village groups • The resettlement working team of a village committee or village group comprises its key community leaders and representatives of APs and with authorization of villagers’ convention. Its main responsibilities are: • Participating in the socioeconomic survey and DMS; • Assistance in preparing the Resettlement Plan; • Organizing public consultation, and communicating the policies on LA and HD; • Organizing village meetings in discussing the proportion of compensation distribution to APs and supervision of the use of collective compensation funds in a village, • To choose resettlement sites and distribute housing land for relocated families; helping APs to get house construction approvals, • Organizing the implementation of agricultural (including land redistribution) and nonagricultural resettlement activities; • Reporting the APs’ opinions and suggestions to the relevant authorities; • Providing assistance to relocated households with difficulties, particularly the vulnerable families • Supervising land acquisition, housing and ancillary facilities demolishing and reconstruction; • Reporting the progress in land acquisition and resettlement to Xiji PMO; • Preparing clearance letter to confirm the facility and infrastructure have been restored and meet their requirement. (vi) Agency undertaking RP formulation Shaanxi Academy of Social Sciences has been entrusted by Ningxia Hui Autonomous Region PMO to formulate the RP. The responsibilities include: i) formulating the RP and ii) providing training to the RP implementation staff of PMO in provincial, county and township level.

60 (vii) Internal supervision agency Xiji CountyPMO sets up an internal supervision office for land acquisition and resettlement, consisting of 2 persons. The duty of the office is to guarantee all the land acquisition and resettlement officers can fulfill their tasks, carry out the requirements of the RP, and guarantee all the affected people can get their rights and interests. (viii) Design Institute At the planning and design stage, it will survey the physical indicators of LA and HD, environmental capacity, usable resources, etc. accurately, and assist the governments in the Project area in developing resettlement programs, preparing budgetary investment estimates for compensation for LA and HD, and preparing the relevant drawings. At the implementation stage, it will submit the design documents, technical specifications, drawings and notices to the owner, make design disclosure to the PMOs of all levels. (ix) External monitoring and evaluation agency Executing agency has engaged a qualified M&E institute as external M&E agency.. The main responsibility includes: • Monitoring all aspects of resettlement planning and implementation as an independent M&E agency, monitoring and evaluating the effectiveness of compensation, resettlement and income restoration measures for the APs, including women and vulnerable APs, and submitting M&E reports to NPMO and ADB semi-annually; • Providing technical advice to the Resettlement Office in data collection and processing. • Follow the TOR for external M&E (see Annex C).

7.3 Staffing and Equipment

7.3.1 Staffing In order to ensure the successful implementation of the RP, all resettlement agencies of the project have been provided full-time staff, and an efficient communication channel has been established. 7.3.2 Equipment All resettlement agencies of the Project have been provided basic office, transport and communication equipment, including desks and chairs, PCs, printers, telephones, facsimile machines and vehicles. 7.3.3 Organizational Training Program In order to ensure the successful implementation of the resettlement work, the resettlement staff will be provided training. As Ningxia Hui Autonomous Region Transport

61 Department has implemented previous ADB and World Bank projects, they are familiar with both ADB and PRC resettlement policy and procedures, and therefore do not need much training. In contrast, the staffs in county RO, Town RO and village levels is experienced with PRC resettlement policies and procedures, but are not familiar with ADB policy and procedures. Therefore the training will focus on county level and lower. A staff training and human resources development system for the county, township, and village level resettlement agencies will be established. Training will be conducted in such forms as expert workshop, skills training course, visiting tour and on-site training. The scope of training includes • ADB’s Safeguard Policy Statement (involuntary resettlement policy) • Differences between ADB and PRC polices, • Resettlement implementation planning and management • Key points require attention during RP implementation • RP implementation M&E • The training budget for resettlement agencies is CNY 50,000, which has been included in the administration budget. As to now, there were totally three trainings have been conducted for the resettlement staffs, including two provincial level trainings for all county/district PMOs in Yinchuan city and one on-site training in Xiji County during RP updating. Please find details in table 7-1 below. Table 7-1 Staff Trainings During Project Implementation Time Location Participants Scope of training 29 August 2018 Yinchuan The key staff of Resettlement management and county/district PMOs implementation 25 July 2019 Xiji The staff of Xiji County Differences between ADB and PRC PMO and affected polices, RP updating requirements and township governments resettlement implementation planning and management 16 to 20 Yinchuan The key staff of (i) ADB’s involuntary resettlement December 2019 county/district PMOs policy; (ii) resettlement implementation planning and management; (iii) key points require attention during RP implementation; (iv) RP implementation M&E.

8 Resettlement Budget

8.1 Resettlement Budget

All costs caused by LA and resettlement shall be included in the general budget of this project. Based on the prices in 2018, the estimated resettlement costs covered by this RP are CNY 46.068 million, including basic costs of CNY 24.418 million. Seen from the impact category, permanent collective land acquisition costs are CNY 23.771 million, housing demolition and relocation costs are CNY 0.658 million, compensation fees for ground attachments are CNY 1.203 million, and compensation fees for special facilities are CNY 150,000. Other fees include RP formulating fee, implementation & management fee, land acquisition fee, technical training fee, external monitoring evaluation fee and contingencies. See table 8-1 for details. Table 8-1Resettlement Budget

Quanti Standar Total amount Proportio No. Budget Item Unit ty d (CNY ) n (unit) Total of 1 Basic costs of resettlement CNY item \ 24,417,871 53.00% 1.1-1.5 1.1 Permanent land acquisition CNY \ 23,156,127 1356. 1.1.1 Farm land(Ningxia) mu 13,472 18,273,421 4 1.1.2 Residential land mu 13,472 2.9 39,069

1.1.3 Forest land(shrub) mu 8,083 456.6 3,690,698 1356. 1.1.4 Subsidies for young crops mu 850 1,152,940 4 Compensation fee for housing 1.2 CNY 657,610 demolition ㎡ 1.2.1 Rural brick-wood structure 600 832 499,200 1.2.2 Rural earth-wood structure ㎡ 310 511 158,410 Compensation for ground ancillary 1.3 CNY 331,309 facilities 1.3.1 Cowshed ㎡ 60 1708 102,480

1.3.2 Brick wall m 170 18 3,060

1.3.3 Soil wall m 60 51 3,060

1.3.4 Toilet ㎡ 500 5 2,500

1.3.5 Brick shed ㎡ 120 6 720

63 Quanti Standar Total amount Proportio No. Budget Item Unit ty d (CNY ) n (unit) 1.3.6 Water Cellar single 1000 1 1,000

1.3.7 Cave dwelling ㎡ 200 82 16,400

1.3.8 Grave single 2000 26 52,000

1.3.9 Weed tree (φ<10cm) single 35 1173 41,055 1.3.1 Weed tree (10<φ<30cm) single 42 2512 105,504 0 1.3.1 Spruce (plant height 0.8~1m) single 10 353 3,530 1 Compensation fee for special- 1.4 CNY 150,000 purpose facilities 1.5 Temporary Land mu 850 144.5 122,825

2 RP formulating and monitoring fee CNY 180,000 0.39%

2.1 Fee for formulation of RP CNY 80,000 M&E cost for relocation and 2.2 CNY 100,000 resettlement 3 Training cost CNY 100,000 0.22%

3.1 For resettling people CNY 50,000

3.2 For resettling agency CNY 50,000

4 Taxes related to land acquisition CNY 17,181,926 37.30% CNY 1356. 4.1 Farmland occupation tax 3333.5 4,521,559 /mu 4 CNY 1356. 4.2 Farmland reclamation fee 2666.8 3,617,248 /mu 4 Paid use fee for newly-added CNY 1356. 4.3 6667 9,043,119 construction land /mu 4 (10% of 5 Contingencies CNY item 1- 4,187,980 9.09% 4) 6 Total CNY 46,067,777 100.00%

8.2 Resettlement investment plan and source of fund

The source of resettlement funds is Xiji County government financial supporting funds and domestic loans. Before or during the construction phase, the investment plan will be implemented in stages in order to not affect the production and livelihood of the affected households. See details in Table 8-2.

Table 8-2Resettlement Investment Plan

Year 2020 2021 Total Amount of investment (CNY) 27,640,666 18,427,111 46,067,777 Proportion (%) 60 40 100 8.3 Management and Disbursement of Resettlement Funds

Land compensation fees and resettlement subsidies should be used in full consultation with the APs; forest-land(shrub) and young crop compensation fees are paid directly to the affected persons; compensation fees for infrastructure and attachments are paid to the affected entities or individuals. To ensure that the resettlement funds are available both timely and completely, and the APs ’production, livelihoods and income are restored, the following measures will be taken: (i) All costs related to this RP shall be included in the total budget of the project. (ii) Land compensation fees and resettlement subsidies shall be fully paid up before land acquisition, so as to ensure that all affected people are properly resettled. (iii) For AH who choose cash compensation, 50% of compensation fees for HD shall be paid to the APs upon execution of the HD compensation agreement, and the balance shall be paid when house is handed over for demolition. (iv) To ensure the smooth implementation of land acquisition, relocation and resettlement, the finance and supervision institutions at all levels will be established to ensure that all funds will be paid both timely and completely. (v) The resettlement costs may be increased due to the increase of the compensation standards and price inflation, but the Xiji County Government will ensure that compensation fees are fully paid.

65 Figure 8-1 shows the resettlement funds distribution flow.

Figure 8-1Resettlement Funds Flow of Distribution 8.4 Approval of Budget Increase The project implementation unit has the authority to adjust the budget among categories and the use of contingencies within the budget. Costs exceeding total RP budget should be reported to Ningxia Hui Autonomous Region Development and Reform Commission and Financial Department of Ningxia Hui Autonomous Region by the project office and the increase of the budget subject to the approval. The whole process shall not be more than one month.

66 9 Public Participation and Grievance Redress 9.1 Public Participation According to relevant policies and regulations of ADB, the PRC, Transportation Department of Ningxia Hui Nationality Autonomous Region and Xiji County, it is required to conduct public participation at the preparation and implementation stages in order to protect the lawful rights and interests of the APs, reduce grievances and disputes, and realize the resettlement objectives. It is necessary to develop a sound framework and implementation rules, preparing an effective RP, and organizing proper implementation. 9.1.1 Stakeholder identification and information disclosure The main stakeholders refer to the groups directly affected by or involved in the project, including: (1) those suffering land loss and property loss; (2) the villages to be benefited in the project area; and (3) all organizations and companies directly participating in project construction and operation, including the construction contractor. Other stakeholders include government organizations participating in the project activities as well as the people who are interested in the project and also participate in the relevant project activities in the process of land acquisition and demolition. Early stage information disclosure will be through agencies involved in project design and administrative line agencies at various levels. The main content includes project rationale, scope, road standard, alignment selection, and potential affected people by land acquisition and house demolition. During the PPTA phase, information disclosure occurred mainly through project management office at provincial and county level, and survey teams of RP, poverty and social analysis and environment assessment. Key information including resettlement principles and compensation standard, resettlement options and assistance measures, and up to date negotiation process and results were shared with the APs. Future information disclosure will be conducted through information booklet distribution and website, village bulletins and public media as well as through public consultation. Key information related to compensation standard, implementation schedules, resettlement budget and funds flow, organizational responsibility and contact persons, grievance redress, and internal and external M&E are included in the booklet and will be distributed to all affected households in mid July 2016. Project implementation progress will also be disclosed to the APs and posted in village bulletins. The draft and final RPs will be posted on ADB website and made available to APs in the Town ROs and affected villages.

67 9.1.2 Participation during project preparation At the stage of feasibility study report, PPTA, intensive consultations with stakeholders have been conducted with project executing agency, focusing on project scope and component, the alignment selection/shaping, design standards, and alternatives of reducing affected population. During the PPTA, surveys and consulting were undertaken in April 2016, and the second surveys and consulting were undertaken in July 2016, a survey for updating the RP was conducted according to the construction drawing design in July 2019. A total of 800 households (800 potential AHs along the line, including all AHs in sampling villages) were surveyed. In addition, a total of 10 interviews, 5 special group discussions and 5 consultation meetings have been held with women, the poor, the elderly and village representatives in the project area and a number of key informant interviews were held with various bureaus. Over 800 people were interviewed/surveyed or consulted in the process. The participants include individual villagers, village leaders, worker and government institution like Transportation Bureau, Development and Reform Committee. The quantitative and qualitative material provided in evaluation, investigation and discussion were used to formulate Resettlement Plan and other documents according to policy requirements of ADB and the PRC. See Figure 9-1 for details.

Figure 9-1Public survey site Methods and tools used include (i) field visits to collect basic information on the project impact from project beneficiaries and APs; (ii) household survey to understand family situations, livelihood status and living conditions; (iii) focus group discussion to learn expectations and requirements of affected people; (iv) interviews with representatives of households, villages or communities to find potential impacts, coping strategies and demands for support; (iv) interviews with government agencies, development organizations and industrial parks to identify existing programs that can help the poor to take advantages of the project benefits, and (v) workshops were held to collect feedback on the draft RP. The consultation during project preparation shows in Table 9-1 for details. The resettlement information booklet (RIB) has been formulated, and will be distributed in March 2020. The updated RP is subject to the detailed measurement survey, and will be handed over to ADB for approval before the land acquisition and resettlement and issuing of civil engineering contracts. Meanwhile, the updated RP will be disclosed to the APs and published on the website of ADB.

69 Table 9-1 Public Participation during Project Preparation （Finished）

Time Organizer Participants and number of people Objective comments and contents 2015.4~2016.3 Project Feasibility Affected people, town, village Project feasibility study, on- Introducing project background and purpose Report formulation leaders, engineering personnel, local site inspection and Site selectionshould minimize Farmland institute, Foreign agency of traffic management preliminary assessment of Route selection should minimize impact on Capital organization in project project impact APs Division of implementation county and district, Transportation 25 participants Department of Ningxia Hui Nationality Autonomous Region 2016.3~2016.4 Design personnel, Relevant government agencies, Relocation plan preparation, Assisting project impact survey Shaanxi Keshe villager representatives and grass- socioeconomic survey of Villager representatives expressed strong Business Information roots cadres, totally 60 participants, resettlement impact needs of the project and proposed Consulting Co., Ltd., 10 women and 3 persons in low suggestions for route adjustment Foreign Capital income family Socioeconomic survey and investigation on Division of resettlement households Transportation Department of Ningxia Hui Nationality Autonomous Region, PMO of Xiji County 2016.3~2016.4 Shaanxi Keshe Relevant government agencies and Preparation of income Negotiate compensation plan and Business Information villager representatives, totally 50 recovery plan incomerecoveryplan Consulting Co., Ltd., participants, 20 women, 4 low income Foreign Capital people Division of Transportation Department of Ningxia Hui Nationality Autonomous Region Xiji PMO

70 Time Organizer Participants and number of people Objective comments and contents 2016.3~2016.4 Xiji PMO, Shaanxi Affected towns, villages and villagers, Public consultation and Keshe Business totally 130 participants, 50 women, situation verification 1) Distribution and allocation method of Information Consulting 20 low income people and 50 Co., Ltd. affected people compensations for land acquisition

2) Distribution method and use of land reserved for placement 3) Impact degree of land acquisition and demolition on the income of AHs 4) Development planning of affected villages 5) Employment status and employment resettlement willingness of AHs 6) Training needs of AHs 7) Current status and willingness of AHs for endowment insurance 8) Relocation method selection of AHs 9) Relocation site selection ofAHs 10) Suggestions of APs on the form of housing construction and infrastructure construction 11) Women’s unique role in resettlement

2019.7.12~7.14 Xiji PMO, Shaanxi Affected towns, villages and villagers, Public consultation on RP Land acquisition and demolition data Keshe Business totally 60 participants, 15 women, 2 and survey on resettlement verification with local government and villagers Information Consulting low income people and 40 affected option on site Co., Ltd. people

71 Time Organizer Participants and number of people Objective comments and contents 2019.7~8 Xiji PMO, Shaanxi Affected towns, villages and villagers, 1) The affected people support the Keshe Business totally 80 participants, 20 women, 10 implementation of the project and hope it is Information Consulting low income people and 50 affected implemented as soon as possible. Co., Ltd. people 2) If only implement the compensation according to current land compensation policies, the affected people will accept the land acquisition and relocation for the construction of the project. 3) The 7 affected people think the income from planting crops is low and do not want go on with it. 4) The one affected people expressed that if it is demolished, they hope to rebuild their house nearby or to live at a place with better condition. 5) The 40 affected people think that the professional skill trainings should be added other than the training of primary industry. 6) Local residents should be encouraged to participate in the construction of the project, improving their income and degree of participation. 7)The participants all hope to attend in the rural endowment insurance and medical insurance 8) Supply employment information, it is better to arrange employment.

Response：The above suggestions have been accepted. Source: from Xiji PMO :

72 9.1.3 Public opinion of Xiji County In the public consultation, besides of introducing the relevant information about project implementation to the people in project area, we also gathered their opinions and suggestions on project implementation, mainly including: 1. The project has direct positive impacts for bettering the transport of local people for it is implemented in the mountainous rural area with bad road conditions and natural conditions, so the local people in consultation all required to launch the project as soon as possible, so that they could benefit from the project. 2. Local people hope to provide labor services after the project is launched as much as possible, for example, delivering earthwork and construction materials, and women hope to provide services for life of workers in the project. 3. Most people suggest trainings by the project team if possible, for example, people engage in agricultural production hope to have trainings on agricultural skills or relevant trainings on planting fine agricultural products and increasing value of agricultural production; women hope to have the relevant trainings on handicraft or housekeeping; some people hope to have trainings on breeding. 4. Local people participated in the consultation especially emphasized that the project would not only better the road transportation network and improve traffic conditions, but also have direct effect on improving the basic living conditions of them. Take Sanhe Village in Xiji County for example, due to lack of source of drinking water, people there have to buy water in the township with transportation expense 30 times of water rate, which is obviously a heavy burden for local people who have low per capita income. After completion of the project, water supply stations will be built near each village, and the basic living condition will be much better. This case is common also in other sub-projects areas. 9.1.4 Participation plan during implementation Along with project implementation, the Xiji PMO and RO will conduct further public participation. The arrangement of public participation is shown in Table 9-2. Table 9-2 Project Public Participation Scheme

Objective Approach Time Agency Participant Topic

Disclosing updated Village 2020.3 Xiji County APs, town, village Compensation Resettlement Plan announcement PMO and village group standard, and resettlement and villagers complaint information booklet meeting channels, etc. Disclosing updated Website 2020.3 ABD website Xiji PMO and Compensation Resettlement Plan ADB standard, complaint channels, etc.

73 Objective Approach Time Agency Participant Topic

Land acquisition Village 2020.5 Xiji County All APs Announcing land announcement announcement PMO, DRB, acquisition area, and villagers LRB, Highway compensation meeting Bureau in standard, affected resettlement counties, LRB method, etc. and town, village leaders Announcement for Village 2020.5 Xiji County All APs Compensation compensation and announcement PMO, DRB, amounts and resettlement and villagers LRB, Highway mode of payment scheme of land meeting Bureau in acquisition affected counties, LRB and town, village leaders Detailed Field survey 2019.7 Xiji County All APs Confirm the final Measurement PMO, affection quantity Survey (DMS) JCPMO, DRB, LRB, Details of assets Highway of loss and the Bureau in occupied land of affected resettlement counties, LRB households and town, village leaders Preparation of the basis contract for compensation agreement Prepare final RP Village 2019.7~ Xiji County APs, town, village Detailed impact based on detailed announcement 2020.2 PMO and village group numbers, AHs, design and DMS and villagers compensation and disclose meeting standards and RP budget Confirming income Villagers Before JCPMO, All APs Discussing the recovery plan and its meeting implementation DRB, LRB, final scheme for implementation (several times) Highway income recovery Bureau in and usage affected scheme for counties, LRB compensation and town, village leaders Selecting residential Villagers Three months LRB, town, 3 or 4 AHs that Viewing of plot land plots for related meeting before and village have housing options and HHs demolition leaders completely selecting final demolished plots Training plan Villagers 2020~2021 LSPB, town All APs Discussing the meeting and village training needs leaders Monitoring Villagers 2018.2~2022.12 Town, village All APs 1) Resettlement participates in leaders progress and meeting impacts 2) Payment of compensation 3) Information disclosure 4) income restoration Source: from Xiji PMO

74 9.1.5 Adaptation of RP based on public opinions According to public consultation done by RP survey team of SASS, PPTA consultants, and Xiji PMO, some reasonable opinions and suggestions of the affected people are included in the resettlement plan as follows: (i) The views and concerns towards the project have been included in the RP. (ii) All resettlement options fully reflect the needs and wishes of APs. (iii) Based on the survey results in 2016, the compensation standard for housing demolition was then updated based on the current local market replacement price8. (iv) During the updating of the resettlement plan, the public pointed out that the current road conditions do not benefit to the residents’ living and economic development. They hoped to implement the project as soon as possible and participate in the construction of the project. 9.2 Grievances and Redress To ensure rehabilitation and improvement of the affected persons’ production, livelihood and living conditions, the provincial and county PMO closely consulted with the affected persons to reduce complaints. A mechanism has been set up to provide AP with opportunities to complain and to solve problems during implementation. 9.2.1 Grievances Contents of grievances include any aspect of resettlement, for example, house compensation, quantity of assets, land compensation, selection of housing sites, and income loss, relocation fees and compensations during house rebuilding, temporary land occupation, other construction impacts, etc. 9.2.2 Grievance Procedures The public participation is always encouraged in the process of compiling and implementing the RP. No substantial dispute is expected to arise; however there may be some unforeseeable problems that occur in the process. In order to solve such potential problems effectively and ensure the project construction and land acquisition to be carried out successfully, a transparent and effective appeal channel has been set up. The grievance procedures will be operative throughout the entire construction period so that they can be used by villagers to deal with problems relating to infrastructure rehabilitation, such as the reconstruction of irrigation networks, the positioning and design of drainage culverts, local road access, the use of temporary land, etc. In this way villagers will have an effective procedure to bring these matters to the attention of Xiji PMO and the

8according to current effective regulations, the compensation rates for HD range from CNY 210/m2 to CNY650/m2. The consultations and field survey shows that they are not adequate to rebuild the house now with development of local economics. The rates therefore are improved for the subproject. See details in Table 5-3 in Section 5.5. 75 contractors, as well as a forum, for their timely resolution. As an additional measure, village leaders will be provided with a name and contact point (e.g. Telephone number), to whom they can raise matters relating to the road construction as and when they arise. The basic procedure of the grievance solution is: APs-Village committees - town resettlement office - Township or town government - county resettlement office - Xiji PMO and Ningxia PMO. The basic grievance redress system is as follows: (i) Stage 1: If APs have any dissatisfaction with RP or implementation, they may report to the villagers’ committee. Alternatively, the villagers’ committee or the APs may directly appeal to the town resettlement office for negotiated resolution or put forward an oral or written grievance. The town resettlement office records the complaints and resolves the problems within two weeks after the receipt of the complaints if the grievance is oral. (ii) Stage 2: If the APs who lodge the complaints are not satisfied with the results of the Stage 1, they may lodge a grievance to Xiji county RO or PMO. The latter will make resolution within two weeks. (iii) Stage 3: If the persons who lodge the complaints are still not satisfied, they may after receiving the decision, lodge complaints to the Ningxia PMO for arbitration. The latter will make arbitration decision within a month. If the persons are still dissatisfied with the decision of the Stage 2 or 3, they may, after receiving the arbitration decision, appeal to administrative setups step by step (township office, county office, authorities of letters and calls, administrative supervision, disciplinary inspection and procurement department) according to Administrative Procedure law. The complaints and appeal procedures will be conveyed to APs through public meetings and other information dissemination procedures such as village notice boards, to ensure they fully understand their rights and the mechanisms for complaint and appeal. Any complaints raised by APs and resolutions must be registered in written form by the resettlement office that receives these grievances. At any point, if the appellant is dissatisfied, he/she may bring a suit in a civil court in accordance with the Civil Procedure Law of the PRC. The APs may also express grievance to the external monitoring agency, who would then report it to Xiji County Resettlement Office, Xiji Land and Resource Bureau, and PMO of the Ningxia Hui Autonomous Region. Alternatively, the APs may submit a complaint to the ADB’s Project Team to try to resolve the problem. If good faith efforts are still unsuccessful, and if there are grievances that stemmed from a violation of ADB’s safeguard policy, the

76 APs may appeal directly to ADB in accordance with ADB’s Accountability Mechanism (2012)9. All the grievances received, oral or written will be recorded and their redress will be recorded as well and these will be made available to the external monitoring agency or ADB review missions on request. All agencies will accept grievances and appeals from the APs for free, and costs so reasonably incurred will be disbursed from the contingencies. During the whole construction period of the Project, these appeal procedures shall remain effective to ensure that the APs can use them to address relevant issues. The above grievance redress system will be communicated to the APs at a meeting or through the RIB, so that the APs know their right of appeal. In addition, the appeal process will be published to affected population on mass media. 9.2.3 Grievance Redress Principle The resettlement offices at each level must perform on site investigations on the complaints from the people and closely consult with them on their opinions before providing practical and justified redress opinions in accordance with the principles and standards specified in national laws and ADB’s involuntary resettlement safeguards principles enshrined in the RP. The complaints that could not be solved must be timely submitted to the higher resettlement department, and the RO at each level are required to provide assistance on investigations. 9.2.4 Contents and Form of Reply to Complaints a.) Contents Description of the complainants’ grievance; Results of investigations; National policies, and the ADB’s principles and standards specified in RP; Resolution and its basis; The complainant has the rights to appeal to the higher resettlement department or to the courts. b.) Form of Reply For complaint concerning individual case, the reply can be directly delivered to the complainant in written form. For complaints frequently addressed, notify the local village or sub-village by convening village meeting or issuing documents.

9http://www.adb.org/site/accountability-mechanism/main 77 9.2.5 Report of Grievance During implementation of the RP, the resettlement units shall make proper records and management of the complaints and solutions, and report them to the Ningxia PMO in written form monthly.

10 Implementation Plan of Land Acquisition and Resettlement

10.1 Principle for Implementation Of land Acquisition And Resettlement

The schedule for land acquisition and resettlement will be integrated with the schedule of Project construction. The basic principles for RP implementation are as follows.  LA and HD should be completed at least 3 months prior to the commencement of construction, and the starting time will be determined as necessary for LA, HD and resettlement. There will no commencement of related civil works until all compensation is paid.  During resettlement, the APs shall have opportunities to participate in the Project. Before the commencement of LA and HD, the DMS results will be disclosed and confirmed with the APs.  All compensation fees will be paid to the affected proprietors directly and fully within 3 months of approval of the compensation and resettlement program for LA. No entity or individual should use such compensation fees on their behalf, nor should such compensation fees be discounted for any reason. i. After project approval and completion of detailed design, the Xiji resettlement office will organize a survey team along with town resettlement office as well as village leaders to conduct detailed measurement and investigation. ii. Xiji PMO will update the Resettlement Plan based on the detailed measurement and investigation results, and the plan will be submitted to Ningxia PMO. iii. Ningxia PMO shall submit the updated Resettlement Plan to ADB for concurrence; this is a condition for ADB award of civil works contracts.

10.2 RP Implementation Schedule

The general resettlement schedule of the project has been drafted based on the planned progress of road project construction, LA and implementation of Xiji County. The exact implementation schedule may be adjusted due to deviations in overall project progress. See details in Table 10-1.

79 Table 10-1Schedule of Land Acquisition and Resettlement Activities No. Resettlement Task Target Responsible unit Time Remark 1 Information disclosure 4 towns Xiji County PMO and each 1.1 Information booklet and 19 March, 2020 town governments villages Disclosure draft RP Implementation agency, 1.2 March, 2020 on ADB website PMO and ADB 2 RP and budget 2.1 Approve the draft RP and budget (including Government, Xiji County March, 2020 compensation PMO standard) 2.2 Update RP based on detailed design and Xiji County PMO, Ningxia July 2019 to

DMS and submit to PMO, ADB March, 2020 ADB for concurrence 3 Detailed measurement survey 3.1 Detailed measurement 19 complete Xiji County PMO July 2019 on LA and HD villages d 4 Compensation agreements 4.1 Village-level land 19 April-June, compensation LRB villages 2020 agreement Demolition 10 April-June, 4.2 compensation LRB HHs/VC 2020 agreement 5 Implementation of income restoration measures 5.1 Distribution land compensation to AHs 19 Township and VCs June,2020 and/or allocation of villages land (if possible) 5.2 Village-level 19 VCs 2020 to 2021 development plan villages 5.3 Income restoration 1171 Township, VCs and labor through business and 2020 to 2021 HHs bureau employment 5.4 Implementation of AP 1171 Labor bureau 2020 to 2021 training plan HHs

80 No. Resettlement Task Target Responsible unit Time Remark 5.5 Vulnerable groups identification and 419 PMO and civil affairs 2020 ~ 2021 assistance measures persons implementation 5.6 Hiring APs for employment under PMO, labor bureau and project during 200 APs 2020~ 2021 Contractors construction and for operations 6 Capacity building of LAR implementation agencies 6.1 Train relevant Project implementation 10 personnel in Xiji consulting (PIC) firm and April 2020 persons County PMO Ningxia PMO 6.2 Train relevant 20 personnel in county, Xiji PMO and RO April 2020 persons town, and village 7 Monitoring and evaluation 7.1 Build internal Based on Ningxia PMO and IAs February2018 Submitted monitoring system RP 7.2 Engage external 1 Monitor Ningxia PMO February2018 Done monitoring unit 7.3 Sample Baseline survey external monitoring unit February2018 Done of AHs 7.4 Internal monitoring Quarterly PMO and implementation Start from Done report report agency February2018 7.5 From Feb 2018 to Dec 2020. External social 3 M&E reports for combined the whole project external has been social Semi- External monitoring submitted. The M&E annual External monitoring unit report progress of this report has report subproject been should be disclosed reflected in the on ADB M&E report in website. 2020.

81 No. Resettlement Task Target Responsible unit Time Remark 7.6 External monitoring Annual June 2021 1st report External monitoring unit report report June 2022 2nd report 7.7 1 combine Resettlement Ningxia PMO and county December, d report completion report PMOs 2022 for the Project 8 Consultation and Participation Xiji PMO Ongoing records 9 Grievance records Xiji PMO Ongoing 10 Process of land compensation and resettlement capital flows 10.1 PMO already -To Xiji PMO Xiji County Government June 2020 has initial start up funds 10.2 - To village Xiji PMO and RO June 2020 10.3 Xiji PMO, RO and 19 village - To household June 2020 committees 11 Start civil works 11.1 Xiji County project Xiji County PMO July 2020 Data Source: Socioeconomic and physical impact survey in July 2019

11 Monitoring, Evaluation and Report In order to ensure the successful implementation of the RP, two types of supervision modes will be applied at the same time and it will be supervised by two organizations from different channels: First, internal supervision system comprised of government departments (autonomous region, PMOs at county level with resettlement focal persons with support from Project Management System consultant) conduct supervision according to RP provisions from the perspective of public administration. Second, external supervision system comprised of sociology experts conduct evaluation and supervision through social survey. 11.1 Internal Monitoring The internal resettlement monitoring agencies will include PMO of Ningxia Hui Autonomous Region, Xiji PMO, Finance Bureau and other departments concerned (e.g., Land and Resources Bureau). The PMO shall develop a detailed internal monitoring plan for land acquisition and resettlement, including: (i) Investigation, coordination of and suggestion on key issues of the resettlement and implementing agencies during implementation; (ii) Status of LA and HD and any variations for the final RP; (iii) Restoration of the household income of the APs after LA; (iv) Preparation of housing plots and relocation after HD; (v) Restoration and resettlement of women and vulnerable persons; (vi) Payment, use and availability of compensation fees for resettlement; (vii) Degree of public participation and consultation during resettlement; (viii) Resettlement training and its effectiveness; (ix) Establishment, staff training and working efficiency of resettlement management agencies; and (x) Any unexpected changes from the final RP and corrective plans prepared to deal with the changes. The Ningxia PMO shall submit progress sheet and an internal monitoring report to ADB. Such report shall indicate the statistics of the past months in tables, and reflect the progress of LA, resettlement and use of compensation fees. Ningxia PMO will also be responsible to prepare a resettlement completion report; this can be done in conjunction with the external monitor. This report will be submitted to ADB.

83 11.2 External Monitoring According to ADB’s policies, the Ningxia PMO shall employ a qualified, independent and experienced resettlement institute/firm as the external RP M&E agency. The external M&E agency shall conduct follow-up M&E of resettlement activities periodically, monitor resettlement progress, quality and funding, and give advice. It will also conduct follow-up monitoring of the APs production levels and living standard, and submit M&E reports to the Ningxia PMO and Xiji PMO for their review, follow-up and disclosure to APs. Ningxia PMO shall submit the external M&E report to ADB semiannually for their review, comment and disclosure on website. 11.3 Scope and methodology of external monitoring (i) Baseline survey The external M&E agency will conduct a baseline survey on the affected villages to obtain baseline data on the sample AHs’ production levels and living standard (living, production and income level). The production level and living standard sample surveys will be conducted semiannually to track variations of the APs. This survey will adopt typical sample tracking investigation, (sample size: 25% of land acquisition AHs, 100% of DHs; the sample households will be selected in form of random selection), random interview and field observation to acquire necessary information. Statistical analysis and evaluation will be made on this basis. (ii) Periodic M&E During the implementation of the RP, the external M&E agency shall conduct periodic follow-up resettlement monitoring semiannually of the following activities by means of field observation, key informants interview, random interview and focus group discussion: • Payment and amount of compensation fees; • Livelihood training; • Support of women and the vulnerable groups; • Restoration and reconstruction of infrastructure and special facilities; • Income restoration options and results • House demolition and reconstruction; • Compensation for lost property; • Time table of the above mentioned activities (applicable for any time); • Performance of resettlement organizations; • Use of collective land compensation and the income of APs; • Income growth of labor through employment; and • Whether the APs benefited from the project.

84 (iii) Public consultation and participation The external M&E agency will attend public consultation meetings held during resettlement implementation to evaluate the effectiveness of public participation. (iv) Grievance redress The external M&E agency will visit the affected villages and groups regularly, and interviewing the township RO and county PMO that accept grievances about how grievances have been handled. It will also meet complainants, and propose corrective measures and advice for existing issues so as to make the resettlement process more effective. (v) External monitoring reports The external M&E agency will submit a monitoring or evaluation report to the ADB and Ningxia PMO semiannually. See Table 11-1 for external monitoring activity and report submitting time. The TOR for External M&E can be found in Annex C. Table 11-1 Schedule of Monitoring and Evaluation No. Report Date Mark 1 Socioeconomic baseline survey report Feb 2018 Done 2 First monitoring report March 2018 Disclosed. 3 Second monitoring report January 2019 Disclosed. 4 Third monitoring report October 2019 Disclosed. 5 Forth monitoring report June 2020 6 Fifth monitoring report December 2020 7 First evaluation report June 2021 8 Second evaluation report June 2022

11.4 Post Evaluation Resettlement Completion Report After project implementation, the post-evaluation will be implemented to evaluate the Project’s resettlement activities on the basis of M&E to (i) confirm the RP objectives have been met and (ii) to obtain successful experience and lessons in land acquisition and property demotion as a reference for future work.

85 Annexes

Annex A Resettlement Information Booklet

ADB LOAN PROJECT (TA-8440)

NINGXIA LIUPANSHAN POVERTY REDUCTION RURAL ROAD DEVELOPMENT PROJECT FINANCED BY THE ADB

Resettlement Information Booklet for Jiangtai–Xitan–Pingfeng Road project of Xiji County of Guyuan City in Ningxia Hui Autonomous Region

March 2020

Prepared by Transportation Department of Ningxia Hui Nationality Autonomous Region

1 Project Background Transportation Department of Ningxia Hui Nationality Autonomous Region grasps the opportunity of historical development, starts from eliminating the phenomenon that undeveloped traffic and infrastructure restrict the development of contiguous destitute areas in Liupanshan, and now plans to implement Liupanshan rural highway development project for poverty alleviation in Ningxia Hui Autonomous Region with the ADB loan, which includes seven subprojects, involving Xiji County, Pengyang County, Jingyuan County and zhou District in Guyuan City, Hai County in Zhongwei City, and Tongxin County in Wuzhong City. The construction of Liupanshan rural road development project for poverty alleviation in Ningxia Hui Autonomous Region (the Project) with the ADB loan mainly targets at: 1) improving the technical grade for road network project, increasing network capacity, and perfecting regional road network; 2) enhancing the connection between the project area and surrounding area, improving regional traffic condition, and promoting the economic development of the project area and region; 3) constructing seven trunk roads and 21 branches in Xiji County, Pengyang County, Jingyuan County, and zhou District in Guyuan City, Hai County in Zhongwei City, and Tongxin County in Wuzhong City. The total length of Jiangtai-Xitan-Pingfeng Road project is 73.295km in length, with width of subgrade is 8.5m and width of pavement is 7m, and the design speed is 40km/h according to the technical standard of 3rd class road. The ending point K73+295 is located at Libu Village of Pingfeng Town in Xiji County at the boundary of Ningxia and Gansu. The total investment in the project is estimated to be CNY 375.008257 million, and the construction will commence since July 2020, the construction period is two years.

Figure 1 Sketch Map of Rural Trunk Road Distribution 2 Project Impact 2.1 Project Impact Scope and Overview The impact of land acquisition and demolition of the project involves 4 towns and 19 administrative villages. Table 1 Towns and Administrative Villages Affected by Land Acquisition and Demolition of the Project Construction content Name of town/ street Name of village/ neighborhood committee Maogou village，Mingtai village，Shencha village， Xitan village，Heihugou village，Gancha village， Jiangtai Town ,Xitan Youai village，Wangbao village，Xingping village， Jiangtai-Xitan-Pingfeng Road Town ,Xingping Pingfeng village，Sanhe village，Miaoping Town ,Pingfeng Town village，Chentan village，Minhe village，Shawa village，Wangnao village，Libao village，Gaozhao village，Bacha village

88 2.2 Impact of Permanent Collective Land Acquisition The project will permanently acquire 1815.9 mu rural collective land of the above-mentioned areas, including Farmland of 1356.4 mu (74.70%), Residential land of 2.9 mu (0.16%), Forest land of 456.6 mu (25.14%). According to the definition in “the feasibility report on the use of forest land for Jiangtai–Xitan–Pingfeng Road Project of Xiji County”, the forest land type of the project is shrub land. Table 2: Permanent Acquisition of Collective Land (by affected village)

Village Permanent land acquisition (mu) Affected Affected Road Town committee/comm HH person Residential Forest unity Dry land Subtotal land land(shrub)

Maogou 83.3 0 5.4 88.7 93 379 Jiangtai Town Mingtai 43.1 1.2 3 47.3 120 508 Shencha 70.1 0 4 74.1 89 338 Xitan 170.6 0 28.1 198.7 74 358 Xitan Town Heihugou 108.2 0 15.8 124 70 296 Gancha 135.5 1.7 38.3 175.5 72 342 Youai 99.6 0 62.8 162.4 102 433 Xingping Town Wangbao 86.4 0 43.9 130.3 80 412 Jiangtai- Xingping 95.8 0 47.5 143.3 122 472 Xitan- Pingfeng Pingfeng 113.5 0 27.2 140.7 46 243 Road Sanhe 33.7 0 19.8 53.5 38 185 Miaoping 40.8 0 22.2 63 33 123 Chentan 28.5 0 15.6 44.1 29 132 Pingfeng Minhe 35.3 0 22.9 58.2 32 133 Town Shawa 56.5 0 25.4 81.9 41 180 Wangnao 33.7 0 17.7 51.4 33 145 Libao 46.4 0 24.5 70.9 32 132 Gaozhao 35.8 0 18.4 54.2 30 166 Bacha 39.6 0 14.1 53.7 35 155 Total 4 19 1356.4 2.9 456.6 1815.9 1171 5132 Proportion 74.70% 0.16% 25.14% 100% / /

2.3 Temporary Land Occupation Up to now, the temporary land use in project design scheme is 144.5 mu. 2.4 Analysis of Impact of House Demolition The houses involved in the demolition are rural houses of 1343 ㎡, are brick-wood houses of 832 ㎡ and earth-wood houses of 511 ㎡. A total of 8 households with 35 people are affected in total. Table 3 List of Impact of Demolished Rural Residential House Housing demolition (㎡) Affected population Road Town Village Brick- Earth- Population Subtotal Household wood wood (person) 301 197 498 4 18 Jiangtai-Xitan- Xitan Gancha 98 67 165 Village collective Pingfeng Road Jiangtai Mingtai 433 247 680 6 25 Total 832 511 1343 10 43

89 2.5 Impact of Demolished Buildings of Enterprises and Public Institutions No enterprises and public institutions will be affected by land acquisition and demolished. 2.6 Affected Infrastructure and Ground Ancillary Facilities The project affects of ground attachments, including ground structures, Miscellaneous trees. See Table 4 for details. Table 4 Affected Ground Ancillary Facilities Category Item Unit Quantity Lair ㎡ 1708 Brick wall M 18 Earth wall M 51

Structures on Toilet ㎡ 5 ground Brick shed ㎡ 6 Cellar single 1 Cave dwelling ㎡ 83 Grave single 26 Weed tree (φ<10cm) single 1173 Miscellaneous Weed tree (10<φ<30cm) single 2512 trees Picea asperata Mast(plant height single 353 0.8~1m)

3 Legal Framework and Policies and compensation rates 3.1 Policy Basis The resettlement policies of this project are based on ADB’s policies and on the laws and regulations of the People’s Republic of China (PRC). These are as follows.  ADB Safeguard Policy Statement (2009), Safeguard requirement 2: Involuntary Resettlement  The Land Administration Law of the People’s Republic of PRC  Regulations on the Protection of Basic Farmland  Interim Regulations on Farmland Use Tax of the People’s Republic of PRC  Decision on Furthering Reform of Land Management of the State Council (Guofa [2004] No. 28)  Notice on the Suggestions for Completing Compensation and Relocation System of Land Expropriation by the Ministry of Land Resources of People’s Republic of PRC (November 3, 2004, Guotuzifa [2004] No. 238)  Notice on Further Specification of the Land Type Identification of Farm Road of General Office of Ministry of Land and Resources of the People’s Republic of PRC (Guo Tu Zi Ting [2013] No. 581)  Notice on Publishing the Compensation Standard for Land Acquisition of Ningxia Hui Autonomous Region of the People’s Government of Ningxia Hui Autonomous Region (Ning Zheng Fa [2015] No.101) 3.2 Cut-off Date of Compensation The cut-off date for the eligibility for compensation is on July 31, 2019, which is also the date of Xiji PMO and RO conducting resettlement DMS. Any newly claimed land, newly built house or settlement in the project area by the APs after this date is not entitled to compensation or subsidization. Any building constructed or tree planted purely for extra compensation is not counted in the inventory of losses. 3.3 Compensation Rate for Permanent Land Acquisition According to the Notice on Compensation Standard for unified Land Acquisition of Xiji County (Xi Zheng Fa [2016] No.41)，the standards of land requisition compensation from ADB of this project for Xiji county are as follows:

90 The dry land/homestead: CNY 13,472/mu; Forest(shrub) and grassland: CNY 8,083/mu; Young crops: CNY850/mu. The standards of draft RP land acquisition compensation were drawn up according to Ning Zheng Fa [2015] No. 101, and dry land/homestead and young crop compensation standards are same with Xiji current compensation standard. According to Ning Zheng Fa [2015] No.101, the forest-land(arbor) is compensated with 70% of the dry land compensation standard, namely, CNY 9,430/mu; Grassland and forest-land(Shrub) is compensated according to the 60% of dry land compensation, that is, CNY 8,083/mu. The project involves of Gansu region, all of which are only the reconstruction of old road without any impact of land acquisition and house demolition. Table 5 Compensation Standard for the Project Land Unit: CNY /mu Forest- Forest- Category Dry land/residential land Young crops land(arbor) land(Shrub) Compensation standard for Xiji 13,472 9,430 8,083 CNY 850 /mu

3.4 Temporary Land Occupation Temporary land occupation of the subproject is 144.5 mu, and is the land belongs to unused land. The compensation for temporary land occupation shall be calculated according to years of the land occupation, the standard referred is the Notice on Compensation Standard for unified Land Acquisition of Xiji County (Xi Zheng Fa [2016] No.41) , the compensation standard of temporary dryland occupation was determined as CNY 850/mu. It will be for a maximum of 2 years and the land will be restored to its pre-occupation standards prior to its redistribution to the owners. 3.5 Compensation Rate for House Demolition According to the policy of Asian Development Bank and regulations of PRC, market price evaluation is adopted for the rural residential houses of the RP. The houses to be demolished will receive compensation according to the “replacement price”, the compensation price will be determined through market price evaluation, and will not be lower than the compensation base price of the RP. Table 6 Compensation Standard for Demolition of Residential House and Ancillary Facilities Type Structure type Unit Base price Remark Residential land CNY/mu 13,472 The compensation House on for the house shall Compensation Brick-timber CNY/m² 600 collective not be lower than for house land Earth-timber CNY/m² 310 the proposed base price.

3.6 Compensation for Ground Attachment and Infrastructure

The compensation standard for the ground attachment facilities and infrastructure of the subproject is determined based on the principle of “replacement price”. Table 7 Compensation Standard for Ground Attachments and Infrastructure

Item Unit Compensation standard （CNY)

Lair ㎡ 60 Brick wall m 170 Earth wall m 60 Toilet ㎡ 500 Concrete floor ㎡ 150 Brick shed ㎡ 120 Cellar single 1,000

91 Item Unit Compensation standard （CNY)

Cave dwelling ㎡ 200 Grave single 2,000 Weed tree(φ<10cm) single 35 Weed tree(10<φ<30cm) single 42 spruce (plant height 0.8~1m) single 10

3.7 Compensation for Young Crops According to the compensation policy for the same crop by the average annual output value in the first three years for the common crops (inclusive of manual seeding), the compensation standard for young crops is CNY 850 /mu of Xiji County. 3.8 Entitlement Matrix The entitlement matrix has been established in accordance with the applicable policies.

92 Table 8 Compensation Entitlement and Resettlement Policy Matrix

Type of loss Impact degree Affected person Compensation policy Compensation standard a. Pay land acquisition compensation to the rural collectives according to the Land within the project compensation standard in Table implementation area - 5-2 of this RP road right of way b. Payment by affected village Unit: CNY /mu (estimated as 1815.9 mu a)20 affected collectives of cash compensation Dry Forest- Forest- Permanently acquired of collective land, villages collectives (100%) to AHs losing land with Category land/reside land(arbo land(Sh Young crops collective land mu,including Dryland of b) 5,132 APs of user rights if land is contracted to ntial land r) rub) 1356.4 mu, residential 1171 HHs who APs Compensation 13,472 9,430 8,083 850 land of 2.9 mu, and lose their land. c. Cash compensation for all the standard for Xiji

Forest-land(shrub) of ground attachment (e.g., trees) 456.6 mu) according to standards in Table 5-5 and standing (young) crops according to standard in Table 5- 2. Land temporarily used as Cash compensation for the annual construction area within the To be determined loss during land loss period. The dryland of temporary occupation compensation standard is CNY Temporary loss of land project implementation during construction Restore to the status prior to the 850 /mu per year. area or close by area period construction, and maintain the life (estimated as 144.5mu) of APs at the former level at least. Base Structure type Unit Remark Cash compensation for AHs, price 1343 m2 structures, including residential land, and 10 households and Residential including 1178 residential housing, and attachments. Cash CNY/mu 13,472 Loss of structures 43 persons/village land houses and 165 m2 compensation for various The compensation for the committee house shall not be lower than medical room housing type according to the Brick-wood CNY/m² 600 replacement cost in Table 5-3. the proposed base price.

Earth-wood CNY/m² 310

All facilities within the Cash compensation based on the project implementation area Proprietor of all Affected public facilities market price and negotiation with Proprietor receives the total compensation (no impacts have been facilities proprietor identified yet)

93 Type of loss Impact degree Affected person Compensation policy Compensation standard These HHs can still benefit from the local ongoing targeted poverty alleviation project. A series of additional measures have been put in place to help them with income restoration and will be closely monitored.

(1) The households with a labor force will be given priority in skill training and priorities given in provision of arranged jobs by the Any affected person who is project and local government. In the same condition, enjoy the priority of project compensation and Vulnerable groups also vulnerable 62 households Eliminating zero employment of assistance poor households (with a labor force) is the target of government poverty alleviation; it will also be the target of this project.

(2) According to the MLSS policy of Xiji County, eligible vulnerable groups affected by the Project will be included in the MLSS before land acquisition and receive MLSS subsidies each month. The PMO will assist the VHs to apply the MLSS subsidy.

94 4 Institutional Arrangements Since resettlement is a very comprehensive task that needs the assistance and cooperation of various departments, relevant departments including transportation department, department of land and resources, department of finance, etc. shall participate in and support resettlement implementation. Each affected town/township or village has one or two chief leaders responsible for resettlement. The agencies responsible for the LA and the HD in the Project are: • Leading Group for Poverty Relief Road Project with ADB Loan of Transportation Department of Ningxia Hui Autonomous Region • Project Management Office for Poverty Relief Road with ADB Loan of Transportation Department of Ningxia Hui Autonomous Region • Xiji County Transport Bureau (implementing agency which also has a PMO) • Xiji County Project Resettlement Office of Poverty Relief Project with ADB Loan • Project town/township governments • Village committees • Project design institute • External monitoring and evaluation agency • Other departments: Land Resources Bureau (LRB), Demolition and Relocation Office, Women’s Federation, Labor and Social Security Bureau. The Organizational Chart is show in Figure 2.

95 Ningxia Transportation Department Project Leading Group with ADB loan

Project Management office with ADB Loan of Ningxia Transportation Department

Xiji Transportation Bureau Project design Internal External institute monitoring monitoring Xiji Project Resettlement Office

Town governments

Village/ Community committees

Affected people

AH by HD AH by LA Infrastructure

Figure 2 Project Relocation Organizations

5 Resettlement Budget Based on the prices in 2018, the estimated resettlement costs are CNY 46.068 million. Land compensation fees and resettlement subsidies should be used in full consultation with the APs; forest- land(shrub) and young crop compensation fees are paid directly to the affected persons; compensation fees for infrastructure and attachments are paid to the affected entities or individuals. To ensure that the resettlement funds are available both timely and completely, and the APs’ production, livelihoods and income are restored, the following measures will be taken: (vi) All costs related to this RP shall be included in the total budget of the project. (vii) Land compensation fees and resettlement subsidies shall be fully paid up before land acquisition, so as to ensure that all affected people are properly resettled. (viii) For AH who choose cash compensation, 50% of compensation fees for HD shall be paid to the APs upon execution of the HD compensation agreement, and the balance shall be paid when house is handed over for demolition.

96 (ix) To ensure the smooth implementation of land acquisition, relocation and resettlement, the finance and supervision institutions at all levels will be established to ensure that all funds will be paid both timely and completely. (x) The resettlement costs may be increased due to the increase of the compensation standards and price inflation, but the Xiji County Government will ensure that compensation fees are fully paid.

Figure 3 Resettlement Funds Flow of Distribution 6 Grievances and Redress To ensure rehabilitation and improvement of the affected persons’ production, livelihood and living conditions, the provincial and county PMO closely consulted with the affected persons to reduce complaints. A mechanism is set up to provide AP with opportunities to complain and to solve problems during implementation. The basic procedure of the grievance solution is: APs-Village committees- town resettlement office - Township or town government- county resettlement office-Xiji PMO and Ningxia PMO. The basic grievance redress system is as follows:

97 (iv) Stage 1: If APs have any dissatisfaction with RP or implementation, they may report to the villagers’ committee. Alternatively, the villagers’ committee or the APs may directly appeal to the town resettlement office for negotiated resolution or put forward an oral or written grievance. The town resettlement office records the complaints and resolve the problems within two weeks after the receipt of the complaints if the grievance is oral. (v) Stage 2: If the APs who lodge the complaints are not satisfied with the results of the Stage 1, they may lodge a grievance to Xiji county RO or PMO. The latter will make resolution within two weeks. (vi) Stage 3: If the persons who lodge the complaints are still not satisfied, they may after receiving the decision, lodge complaints to the Ningxia PMO for arbitration. The latter will make arbitration decision within a month. If the persons are still dissatisfied with the decision of the Stage 2 or 3, they may, after receiving the arbitration decision, appeal to administrative setups step by step (township office, county office, authorities of letters and calls, administrative supervision, disciplinary inspection and procurement department) according to Administrative Procedure law. The complaints and appeal procedures will be conveyed to APs through public meetings and other information dissemination procedures such as village notice boards, to ensure they fully understand their rights and the mechanisms for complaint and appeal. Any complaints raised by APs and resolutions must be registered in written form by the resettlement office that receives these grievances. At any point, if the appellant is dissatisfied, he/she may bring a suit in a civil court in accordance with the Civil Procedure Law of the PRC. The APs may also express grievance to the external monitoring agency, who would then report it to Xiji County Resettlement Office, Xiji Land and Resource Bureau, and PMO of the Ningxia Hui Autonomous Region. Alternatively, the APs may submit a complaint to the ADB’s Project Team to try to resolve the problem. If good faith efforts are still unsuccessful, and if there are grievances that stemmed from a violation of ADB’s safeguard policy, the APs may appeal directly to ADB in accordance with ADB’s Accountability Mechanism (2012)10. All the grievances received, oral or written will be recorded and their redress will be recorded as well and these will be made available to the external monitoring agency or ADB review missions on request. All agencies will accept grievances and appeals from the APs for free, and costs so reasonably incurred will be disbursed from the contingencies. During the whole construction period of the Project, these appeal procedures shall remain effective to ensure that the APs can use them to address relevant issues. The above grievance redress system will be communicated to the APs at a meeting or through the RIB, so that the APs know their right of appeal. In addition, the appeal process will be published to affected population on mass media.

7 Implementation Plan of land Acquisition and Resettlement The general resettlement schedule of the project has been drafted based on the planned progress of road project construction, LA and implementation. The exact implementation schedule may be adjusted due to deviations in overall project progress.

10 http://www.adb.org/site/accountability-mechanism/main 98 Table 9 Schedule of Land Acquisition and Resettlement Activities No. Resettlement Task Target Responsible unit Time Remark 1 Information disclosure 4 towns Xiji County PMO and each town 1.1 Information booklet and 19 March, 2020 governments villages Disclosure draft RP on Implementation agency, PMO 1.2 March, 2020 ADB website and ADB 2 RP and budget 2.1 Approve the draft RP and budget (including Government, Xiji County PMO March, 2020 compensation standard) 2.2 Update RP based on detailed design and DMS Xiji County PMO, Ningxia PMO, July 2019 to

and submit to ADB for ADB March, 2020 concurrence 3 Detailed measurement survey 3.1 Detailed measurement on 19 villages Xiji County PMO July 2019 completed LA and HD 4 Compensation agreements 4.1 Village-level land 19 villages LRB April-June, 2020 compensation agreement Demolition compensation 4.2 10 HHs/VC LRB April-June, 2020 agreement 5 Implementation of income restoration measures 5.1 Distribution land compensation to AHs 19 villages Township and VCs June,2020 and/or allocation of land (if possible) 5.2 Village-level development 19 villages VCs 2020 to 2021 plan 5.3 Income restoration Township, VCs and labor through business and 1171 HHs 2020 to 2021 bureau employment 5.4 Implementation of AP 1171 HHs Labor bureau 2020 to 2021 training plan 5.5 Vulnerable groups identification and 419 PMO and civil affairs 2020 ~ 2021 assistance measures persons implementation 5.6 Hiring APs for employment under project PMO, labor bureau and 200 APs 2020~ 2021 during construction and for Contractors operations 6 Capacity building of LAR implementation agencies 6.1 Train relevant personnel in 10 persons Project implementation April 2020

99 No. Resettlement Task Target Responsible unit Time Remark Xiji County PMO consulting (PIC) firm and Ningxia PMO 6.2 Train relevant personnel in county, town, and 20 persons Xiji PMO and RO April 2020 village 7 Monitoring and evaluation 7.1 Build internal monitoring Based on Ningxia PMO and IAs February2018 Submitted system RP 7.2 Engage external 1 Monitor Ningxia PMO February2018 Done monitoring unit 7.3 Sample of Baseline survey external monitoring unit February2018 Done AHs 7.4 Quarterly PMO and implementation Start from Internal monitoring report Done report agency February2018 7.5 From Feb 2018 to Dec 2020. 3 External social combined M&E reports for external the whole project Semi- social M&E has been External monitoring report annual External monitoring unit report has submitted. The report been progress of this disclosed subproject should on ADB be reflected in the website. M&E report in 2020. 7.6 Annual June 2021 1st report External monitoring report External monitoring unit report June 2022 2nd report 7.7 1 Resettlement completion combined Ningxia PMO and county December, 2022 report report for PMOs the Project 8 Consultation and Participation Xiji PMO Ongoing records 9 Grievance records Xiji PMO Ongoing 10 Process of land compensation and resettlement capital flows 10.1 PMO already -To Xiji PMO Xiji County Government June 2020 has initial start up funds 10.2 - To village Xiji PMO and RO June 2020 10.3 Xiji PMO, RO and 19 village - To household June 2020 committees 11 Start civil works

100 No. Resettlement Task Target Responsible unit Time Remark 11.1 Xiji County project Xiji County PMO July 2020

8 Monitoring, Evaluation and Report

In order to ensure the successful implementation of the RP, two types of supervision modes will be applied at the same time and it will be supervised by two organizations from different channels: First, internal supervision system comprised of government departments (autonomous region, PMOs at county level with resettlement focal persons with support from Project Management System consultant) conduct supervision according to RP provisions from the perspective of public administration. Second, external supervision system comprised of sociology experts conduct evaluation and supervision through social survey. According to ADB’s policies, the Ningxia PMO shall employ a qualified, independent and experienced resettlement institute/firm as the external RP M&E agency. The external M&E agency shall conduct follow-up M&E of resettlement activities periodically, monitor resettlement progress, quality and funding, and give advice. It will also conduct follow-up monitoring of the APs production levels and living standard, and submit M&E reports to the Ningxia PMO and Xiji PMO for their review, follow-up and disclosure to APs. Ningxia PMO shall submit the external M&E report to ADB semiannually for their review, comment and disclosure on website. The external M&E agency will submit a monitoring or evaluation report to the ADB and Ningxia PMO semiannually.

Table 10 Schedule of Monitoring and Evaluation No. Report Date Mark 1 Socioeconomic baseline survey report Feb 2018 Done 2 First monitoring report March 2018 Disclosed. 3 Second monitoring report January 2019 Disclosed. 4 Third monitoring report October 2019 Disclosed. 5 Forth monitoring report June 2020 6 Fifth monitoring report December 2020 7 First evaluation report June 2021 8 Second evaluation report June 2022

101 Annex B Information Manual

A Key articles of Land Administration Law of PRC, SC [2004] No.28 and MLR [2004] No.238 Land Administration Law of PRC (2004) and the Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28) promulgated in October 2004 defines the principles and rates of compensation for land acquisition and resettlement, land acquisition procedures, and monitoring system, and the Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (MLR [2004] No.238) play a similar role. These legal documents have become the legal basis for resettlement of the Project. The key provisions of the above policies are as follows:

Table A2.1: Abstract of the Land Administration Law and Relevant Policies Item Key points Index Land ownership The People's Republic of China resorts to a socialist public ownership i.e. Article 2 of the an ownership by the whole people and ownerships by collectives, of land. Land The State introduces the system of compensated use of land owned by the Administration Law of State except the land has been allocated for use by the State according to the PRC law. Application for Any unit or individual that need land for construction purposes should apply Articles 43 and 44 of construction land for the use of land owned by the State according to law; Whereas the Land occupation of land for construction purposes involves the conversion of Administration Law of agricultural land into land for construction purposes, the examination and the PRC approval procedures in this regard shall be required. All applications for land use for construction shall be accepted by the Article 17 of the administrative department in charge of land of the county government in a Land unified manner, and submitted to higher authorities level by level after Administration examination by the county government. If the acquisition or use of land Regulations of for construction involves farmland conversion, the administrative Shaanxi Province department in charge of land of the county government shall file an application, which shall be submitted to higher authorities level by level after examination by the county government. In case of acquisition or use of woodland, or acquisition or use of land in the urban planning area, the land user shall obtain the approval of the forestry and construction departments at or above the county level, and go through the construction land approval formalities as stipulated herein. The approved construction land must be used for the approved purpose and its use shall not be altered without authorization. If the change of use is necessary, Article 56 of the Land Administration Law of the PRC shall apply. Land acquisition The acquisition of basic farmland exceeding 35 hectares outside the Article 45 of the authority basic farmland, and other land exceeding 70 hectares shall be Land approved by the State Council. Acquisition of land other than Administration Law of prescribed in the preceding paragraph shall be approved by the the PRC governments of provinces, autonomous regions and municipalities and submitted to the State Council for the record The acquisition of not more than 35 hectares of cultivated land other than Article 20 of the basic farmland, and not more than 70 hectares of other land than cultivated Land land shall be approved by the provincial government. Administration Regulations of Shaanxi Province

102 Item Key points Index Land For the acquisition of land by the State the local governments at and above acquisition the county level shall make an announcement and organize the announcement implementation after the approval according to the legal procedures. system After the plan for land compensation and resettlement fees is finalized, related local governments shall make an announcement and hear the opinions of the rural collective economic organizations and peasants whose land has been acquired. Rural collective economic organizations shall make public to its members Articles 46, 48 and the 49 of the Land receipts and expenditures of the land compensation fees for land acquired Administration Law of and accept their supervision. the PRC Compensation In acquiring land, compensation should be made according to the original Article 47 of the rates for land purposes of the land acquired. Land acquisition Compensation fees for land acquired include land compensation fees, Administration Law of resettlement fees and compensation for attachments to or green crops on the PRC the land. The land compensation fees shall be 6-10 times the average output value of the three years preceding the acquisition of the cultivated land. The resettlement fee shall be calculated according to the number of agricultural population to be resettled. The number of agricultural population to be resettled shall be calculated by dividing the amount of cultivated land acquired by the per capital land occupied of the unit whose land is acquired. The resettlement fees for each agricultural person to be resettled shall be 4-6 times the average annual output value of the three years preceding the acquisition of the cultivated land. However, the maximum resettlement fee per hectare of land acquired shall not exceed 15 times of the average annual output value of the three years prior to the acquisition. Article 23 of the Land (1) Acquired vegetable land or irrigated land shall be compensated for at 8- Administration 10 times the average annual output value (AAOV) of the three years prior to Regulations of acquisition of such land, acquired irrigable land, garden land or lotus root Shaanxi Province pond at 7-9 times, acquired rain-fed farmland or non-irrigated land at 6-8 times, crop rotation land at 6 times, and pasture land or fishpond at 3-5 times; (2) Acquired newly reclaimed farmland that has been cultivated for less than 3 years shall be compensated for at twice the AAOV, and the investment in development shall be compensated for; (3) Acquired housing land, threshing ground or sunning ground shall be compensated for based on the original land type; (4) The compensation rate for allocated state- owned farm, forest farm, pasture or fishing ground shall be based on subparagraphs (1), (2) and (3) of this paragraph. The compensation rate for acquired or allocated woodland shall be as stipulated by the state. Temporary Users who use the land temporarily should use the land according to the Article 57 of the land use purposes agreed upon in the contract for the temporary use of land and Land should not build permanent structures. The term for the temporary use of Administration Law of land shall not usually exceed two years. the PRC If state-owned or collectively owned land is to be used temporarily for project Article 31 of the Land construction, geologic investigation or any other purpose, an application Administration shall be filed along with the application for construction land and approved Regulations of by the administrative department in charge of land; in case of separate Shaanxi Province application for temporary land use, it shall be approved by the administrative department in charge of land of the county government in case of non- cultivated land, by the administrative department in charge of land of the prefecture or municipal government in case of cultivated land, or the administrative department in charge of land of the provincial government in case of basic farmland. Temporary land use in the urban planning area shall be first approved by the municipal administrative department in charge of construction before submission for approval. The user of temporarily used land shall use the land for the approved purpose and shall not construct any permanent building thereon. The period of temporary land use shall not exceed 2 years in general.

103

Table A2.2: Key Provisions of SC [2004] No.28 and MLR [2004] No.238, and their Application SC [2004] No.28—Improvement of Compensation and Resettlement Systems for Land MLR [2004] No.238 Acquisition Article 12 County-level and above local governments shall take practical measures Fixation of uniform Improvement of so that the standard of living of LEFs is not reduced by land AAOV rates measures acquisition. Determination of compensation Land compensation, resettlement subsidy and compensation for ground uniform AAOV land acquisition attachments and crops shall be paid in full and timely pursuant to law. If multiples Fixation of for for the land compensation and resettlement subsidy pursuant to the prevailing integrated land prices laws and regulations are insufficient to maintain the former standard of for land acquisition living of the LEFs or to pay the social security expenses of farmers who areas Distribution of lose all land due to land acquisition, governments of provinces, land autonomous regions and municipalities directly under the central compensation government shall approve an increased resettlement subsidy. If the sum of the land compensation and the resettlement subsidy attains the statutory upper limit and is still insufficient to maintain the former standard of living of the LEFs, local governments may pay a subsidy from the income from compensated use of state land. Governments of provinces, autonomous regions and municipalities directly under the central government shall fix and publish the uniform AAOV rates or integrated land prices for land acquisition of all cities and counties, so that the same price applies to the same kind of land. For key construction projects of the state, land acquisition expenses must be listed in the budgetary estimate in full. Article 13 County-level and above local governments shall take specific measures to Resettlement for Proper guarantee long-term livelihoods of LEFs. agricultural resettlement o For projects with a stable income, farmers may become a shareholder production LEFs using the right to use of land used for construction approved pursuant to Resettlement by law. reemployment Within the urban planning area, local governments shall bring farmers who Resettlement lose all land due to land acquisition into the urban employment system, by dividend and establish a social security system; out of the urban planning area, in distribution Non-local acquiring land collectively owned by farmers, local governments shall resettlement reserve necessary arable land or arrange appropriate jobs for LEFs within the same administrative area; farmers without land who do not have the basic living and production conditions shall be subject to non-local resettlement. The labor and social security authorities shall propose guidelines for the employment training and social security systems for LEFs as soon as possible. Article 14 During land acquisition, the ownership of collective land of farmers and Disclosure of Improvement of the right to contracted management of farmers’ land shall be maintained. information on land land acquisition Before acquisition is submitted for approval pursuant to law, the use, acquisition procedures location, compensation rate and mode of resettlement of the land to be Confirmation of land acquired shall be notified to LEFs; the survey results of the present acquisition survey situation of the land to be acquired shall be confirmed by rural collective results Organization economic organizations and farmers to be affected by land acquisition; if of land acquisition necessary, the land and resources authorities shall organize a hearing in hearing accordance with the applicable provisions. The materials for notification to and confirmation by the LEFs shall be taken as requisite materials for approval for land acquisition. Accelerate the establishment and improvement of the coordination and judgment mechanism for disputes over compensation and resettlement for land acquisition to protect the lawful rights and interests of LEFs and land users. Approved matters of land acquisition shall be disclosed unless in special cases. Article 15 If the compensation and resettlement for land acquisition has not been Disclosure of Strengthening implemented, the acquired land shall not be used forcibly. approval items of

104 SC [2004] No.28—Improvement of Compensation and Resettlement Systems for Land MLR [2004] No.238 Acquisition Supervision over Governments of provinces, autonomous regions and municipalities land the implementation directly under the central government shall formulate the procedures for acquisition of land acquisition the distribution of the land compensation within rural collective economic Payment of organizations on the principle that the land compensation is used for rural compensation and households affected by land acquisition mainly. resettlement Rural collective economic organizations affected by land acquisition shall expenses for disclose the receipt, disbursement and allocation of land compensation land acquisition fees to their members and accept supervision. The agricultural and civil Post-approval affairs authorities shall strengthen the supervision over the allocation and supervision and use of land compensation fees within rural collective economic inspection of land organizations. acquisition

B Notice on Publishing the Compensation Standard for Land Acquisition of Ningxia Hui Autonomous Region of the People’s Government of Ningxia Hui Autonomous Region，Ning Zheng Fa [2015] No.101

The various departments and organizations directly under the people’s government of the various cities, counties (districts) and autonomous regions: To promote the scientific and sustained use of land resources, it was decided to publish Compensation Standard for Land Acquisition of Ningxia Hui Autonomous Region (hereinafter referred to as the new compensation standard for land acquisition) in accordance with The Law of Land Administration of the People’s Republic of China and Land Administration Regulations of Ningxia Hui Autonomous Region as well as other laws and regulations and through the deliberation of the executive meeting of the People’s Government of Ningxia Hui Autonomous Region, to be implemented from January 1, 2016. The relevant matters are notified as follows: The new compensation standard for land acquisition is farmland-based. The compensation for the garden acquired shall be equal to that for farmland in the same area, that for forest-land(arbor) acquired shall be equal to 70% of that for farmland in the same area, that for new irrigable land (within three years) acquired shall be equal to 60% of that for farmland in the same area, that for artificial grassland acquired shall be equal to that for dry farmland in the same area, that for natural grassland and forest-land(shurb) shall be equal to 60% of that for dry farmland in the same area, that for unused land acquired shall be equal to 20% of that for dry farmland in the same area, and that for homestead and threshing ground acquired shall be equal to that for farmland in the same area. For use of state-owned agricultural (forestry, animal husbandry) land, refer to the compensation standard for acquisition of the neighboring collective lands.

105 Compensation Standard for Land Acquisition of Ningxia Hui Autonomous Region(Xiji) No. City, county (district) Number Area (city) No. Range of area (city) Compensation Remark of area standard for land (city) acquisition CNY/ CNY/ ha. mu 5 Guyuan Xiji 3 I Irrigable County planning area 23,000 345,000 City County land Dry 14,314 214,710 farmland II Irrigable Other areas in Jiqiang 21,240 318,600 land Town apart from the Dry county planning area, 13,472 202,080 farmland Xinying Town, Jiaohe Town, Jiangtai Town, Malian Town, Xinglong Town, Shizi Town III Irrigable Pingfeng Town, 20,060 300,900 land Hongyao Town, Dry Tianping Town, Majian 13,472 202,080 farmland Town, Zhenhu Town, Xingping Town, Xitan Town, Wangmin Town, Piancheng Town, Shagou Town, Baiya Town, Huoshizhai Town Pengyang 4 I Irrigable Township of Baiyang 27,300 409,500 County land Town (within the county Dry planning area) 18,900 283,500 farmland II Irrigable Other areas in Baiyang 20,900 313,500 land Town except the Plain dry township, Gucheng 15,200 228,000 farmland Town, Xinji Town, Hill plateau Honghe Town, 11,200 168,000 land Chengyang Town III Township of Wangwa 14,000 210,000 Town IV Other areas in Wangwa 11,200 168,000 Town except the township, Caomiao Town, Jiaocha Town, Xiaocha Town, Fengzhuang Town, Mengzhi Town, Luowa Town

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Annex C Terms of Reference for External Monitoring and Evaluation Agency

A. Purpose resettlement monitoring and evaluation According to ADB’s SPS 2009 on involuntary resettlement, the resettlement work of this Project will be subject to external M&E. The monitoring will ensure that the resettlement processes are being implemented in accordance with the requirements set out in Resettlement Plans (RPs). The external M&E will also undertake an evaluation of changes in peoples’ standard of living as a result of the project and project- related LAR activities. A TOR is drafted and a specialist with 8~10 years of relevant social and resettlement experience will be engaged by CQS method. M&E reports will be submitted to ADB and the PMO of Ningxia Hui Autonomous Region Transport Department regularly twice a year during the land acquisition and resettlement (LAR) implementation period and once a year following LAR completion. Through external M&E, ADB and the EAs can fully understand if the LAR work is implemented on schedule and according to the quality standard, point out existing issues, and propose suggestions for improvement.

B. Scope and Methods of External Monitoring (i) Baseline Survey The external monitor will undertake a baseline survey of the villages affected by land acquisition and house demolition of the Project, and collect baseline data on the production level and standard of living of the monitored displaced households (standard of living, production, and income levels). The survey methods include follow-up survey of sample households (minimum sample size: 10% of households affected by land acquisition, 20% of households affected by house demolition, 40% households significantly affected, 50% of affected villages; the households will be sampled randomly). A statistical analysis will be made on this basis for evaluation. (ii) Regular Monitoring and Evaluation During the RP implementation, the external monitor will perform regular follow-up resettlement monitoring of the following activities twice a year through field observation, follow-up survey of the sample households, and random interview with affected persons. The external monitor will monitor:  the progress of disbursement of compensation for LAR and house demolition;  the progress of selection and preparation of resettlement sites including provisions for civic amenities, construction of new houses, and adequacy of construction;  institutional capacity of the resettlement office—adequate trained staffing, office space and equipment, and provisions for ongoing training;  financial capacity of the PMO and IAs, particularly the budgetary arrangements and cash flow for resettlement activities;  the process of public participation and consultation, ensuring that the public participation and consultation schedule is being followed and outcomes are being incorporated in resettlement implementation process;  the functioning of the GRM;  the progress of livelihood rehabilitation plans and training, restoration of productive assets, and livelihood systems;  rehabilitation of affected shops;

107  that the vulnerable groups are being provided support in accordance to the criteria set out in the RP;  the progress of restoration and reconstruction of infrastructure and special  facilities;  implementation schedule for the RP activities; and  the overall RP implementation process and if any significant involuntary resettlement are identified, the agency will prepare a corrective action plan to address such issues. In addition, the external monitor will be responsible for verifying the internal monitoring reports of IAs on implementation and progress of the RPs. These internal monitoring reports are prepared by the IAs and the PMO as part of the quarterly progress report. On the basis of the baseline survey, the external monitoring agency will evaluate the project impacts and will provide a “without” and “with” project comparative analysis. (iii) Monitoring Indicators The following indicators shall be monitored and evaluated in accordance with principles, entitlements, and rehabilitation strategies/plans set out in the RPs:  Progress: including preparation, implementation of land acquisition, house demolition, resettlement site construction, housing relocation and rehabilitation of livelihoods and living conditions;  Quality: including resettlement implementation, civil construction quality, timeliness, minimal disturbance/inconvenience and transition time, and degree of APs’ satisfaction;  Entitlements: timely allocation of full compensation entitlements and proper and timely use of funds, and adequate and timely availability of funds for resettlement site construction;  Economic/income conditions: household economic development before and after resettlement, including assets, production materials, subsistence materials, income, savings and debts, income generation potential, etc.;  Living conditions: living environment before and after resettlement, including traffic, education, sanitation, social services, commercial service facilities, etc. in the new resettlement sites;  Livelihood/employment: change in livelihood (income sources) and employment, including employment rate, assistance to the different APs, especially for women, and vulnerable APs, and seriously-affected households, such as those at risk of impoverishment due to land loss or housing loss; training and skill enhancement;  Community development: local economy in resettlement sites, environmental development, neighborhood relations and safety, and public opinions (by gender and age groups) after resettlement; and  Conditions of the vulnerable groups and seriously-affected households: including before and after situations of those people. (iv) Monitoring and Evaluation Method The external monitor will use both quantitative and qualitative methods to undertake the M&E such as: Surveys – questionnaire surveys based on random sampling with a minimum sample size of 10% of households affected by land acquisition, 20% of households affected by house demolition and 50% of the affected villages. These surveys will be done on annual basis to assess the impact on yearly basis. Out of the above indicated survey population, the external monitor will select a suitable sample size and will undertake follow-up surveys by using tracer survey method. It will require following the same respondents on a yearly basis to assess the project impacts.

108 Qualitative interviews and focus group discussions – with project affected persons, village and community representatives, officials in PMO, IAs and other government departments that are involved in the resettlement process; and, Along with written materials, photos, audio and video records, real objects shall also be used. C Reporting The RP monitoring report will include: 1)Summary of findings and conclusion of investigations and evaluation; 2) Major problems identified (existing and potential); 3) Recommended mitigation or prevention measures which need to be taken; and 4) Assessment of previous follow-up actions. Reports will be submitted to ADB every 6 months during the resettlement implementation. After the preparation of resettlement completion reports, annual evaluations will be conducted for 2 years, or until all issues have been successfully resolved. The final evaluation report should summarize monitoring results and should clearly establish whether resettlement has been successfully completed. All reports will be provided in English and Chinese. It should be ensured that information on the progress and status on all aspects of LAR activities will be provided to the external monitor for verification, including records of grievances. D Consultant Specifications and Inputs The specialist shall have a degree in a relevant subject (sociology, anthropology, or related subject) with 8~10 years’ experience in M&E of projects funded by ADB or other international development funding agencies. The consultant’s inputs will be spread intermittently over the life of the Project for a total of 6 months. E Monitoring Budget A total budget for RP is about $150,000.

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