40683-013: Risk Mitigation and Strengthening of Endangered

Resettlement Plan

November 2013

PRC: Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project

Updated Resettlement Plan for Songshan Reservoir Subproject in Linqu County (English)

Prepared by Shandong provincial government for the Asian Development Bank. This is an updated version of the report originally posted in August 2010 available on http://www.adb.org/projects/40683-013/documents.

Linqu County Songshan Reservoir Risk Mitigation Project

Under

Risk Mitigation of Endangered Reservoir Project

in Shandong Province

The People’s Republic of China

Resettlement Plan (Updated)

KeYuan Water Resources Design and Research Institute of Shandong Province May 2013

CURRENCY EQUIVALENTS (as of 23 April 2013) Currency unit – yuan (CNY) CNY1.00 = $0.1616 $1.00 = CNY6.1871

ABBREVIATIONS ADB – Asian Development Bank AP – affected person IMA – independent monitoring agency LLAB – Linqu Land Administration Bureau LAR – land acquisition and resettlement LCWRD – Linqu County Water Resources Department M&E – monitoring and evaluation MWR – Ministry of Water Resources PMO – project management office PPTA – project preparatory technical assistance PRC – People’s Republic of China RP – resettlement plan SRPMB – Songshan Reservoir Project Management Bureau TA – technical assistance TOR – term of reference

WEIGHTS AND MEASURES 1 hectare – 15 mu 1 kilogram – 2 jin km = kilometer km2 = square kilometer m = meter mm = millimeter m2 = square meter m3 = cubic meter mu = a Chinese unit of land measurement

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

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

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

Letter of Endorsement

The Linqu County Water Resources Department (LCWRD) received the approval of constructing the Risk Mitigation of Songshan Reservoir Project in Linqu City from the related departments. This project is proposed to be started in January 2010, and completed by November 2013 The Linqu county government, through Ministry of Finance, has requested a loan from the Asian Development Bank (ADB) to finance part of the project. Accordingly, the project will be implemented in compliance with ADB social safeguard policies. This resettlement plan (RP) represents a key requirement of ADB and will constitute the basis for land acquisition and resettlement. The RP fully complies with requirements of the relevant laws, regulations, and policies of the People’s Republic of China (PRC), Shandong Province, and the Linqu county government as well as complies with ADB’s policy on involuntary resettlement.

The Linqu county government and LCWRD hereby affirm the contents of this updated RP prepared in April 2013 and ensures that the resettlement will be made available as stipulated in the budget. LCWRD has discussed the draft RP with relevant local officials and has obtained their concurrence. The Linqu County Songshan Reservoir Project Management Bureau under the Linqu county government was authorized as the responsible agency to manage the implementation of the project and related resettlement activities.

Governor, Linqu county government

_Liuyubin______(signature)

2013.11.15______(date)

iii

TABLE OF CONTENTS

EXECUTIVE SUMMARY ...... 1 1. BRIEF INTRODUCTION OF THE PROJECT ...... 3 1.1 BACKGROUND ...... 3 1.2 DESCRIPTION OF THE PROJECT ...... 3 1.2.1 Location ...... 3 1.2.2 Scale and Contents of the Project ...... 4 1.2.3 Investment Budget and Schedule of the Project ...... 5 1.2.4 Social and Economic Benefits of the Project ...... 5 2. PROJECT IMPACT ...... 6 2.1 SURVEY OF PROJECT IMPACT ...... 6 2.2 RESULTS OF PROJECT IMPACT SURVEY ...... 6 2.2.1 Land Affected by the Project...... 6 2.2.2 Houses and Affiliated Facilities to be Demolished ...... 7 2.2.3 Ground Attachments to be Affected ...... 8 2.2.4 The Affected Road Passage ...... 9 2.2.5 Ethnic Minorities and Vulnerable Groups Affected by the Project ...... 9 3. NATURAL, SOCIAL, AND ECONOMIC SITUATIONS IN THE PROJECT AREA...... 10 3.1 NATURAL CONDITIONS ...... 10 3.2 SOCIAL AND ECONOMIC SITUATIONS ...... 10 3.3 SOCIOECONOMIC SITUATIONS OF THE TOWNS (OFFICES) AND VILLAGES IN THE PROJECT AREA . 10 3.3.1 Socioeconomic Situations of the Wujing Township ...... 10 3.3.2 Basic Situation of the Villages Affected by the Project ...... 11 3.4 BASIC INFORMATION OF THE HOUSEHOLDS AFFECTED BY THE PROJECT ...... 11 3.4.1 Survey Results and Analysis ...... 12 3.5 SOCIAL AND ECONOMIC IMPACT ON THE AFFECTED POPULATION ...... 14 4. COMPENSATION POLICY AND STANDARD ...... 16 4.1 APPLICABLE LAWS, REGULATIONS, AND POLICIES FOR RESETTLEMENT ...... 16 4.2 OBJECTIVES AND PRINCIPLES OF RESETTLEMENT ...... 16 4.3 ELIGIBILITY OF COMPENSATION ...... 16 4.4 COMPENSATION POLICY AND STANDARD ...... 17 4.4.1 Description of Farming in Drawdown Area ...... 17 4.4.2 Compensation and Resettlement Principles ...... 17 4.4.3 Basis and Standards of Compensation for Temporary Crops ...... 17 4.4.4 Compensation Standard for Scattered Trees ...... 17 4.4.5 Compensation Standard for Houses Demolition and the Attachments ...... 18 4.5 ENTITLEMENTS MATRIX ...... 18 5. RESETTLEMENT REHABILITATION ...... 20 5.1 RESETTLEMENT STRATEGY ...... 20 5.1.1 Resettlement Targets ...... 20 5.1.2 Resettlement Tasks ...... 20 5.2 PRODUCTION REHABILITATION PLAN ...... 20 5.3 HOUSE STRUCTURES RECONSTRUCTION ...... 21 5.4 THE REBUILDING OF THE VILLAGE ROAD PASSAGE ...... 21 5.5 JOB OPPORTUNITIES FROM THE PROJECT...... 21 5.6 INCOME RESTORATION PLAN OF WOMEN ...... 22 5.7 TRAINING FOR THE AFFECTED PERSONS ...... 22

6. RESETTLEMENT COST ...... 23 7. POST-RESETTLEMENT PROGRAM FOR RESETTLERS IN RESERVOIR AREA ...... 25 7.1 INUNDATION RESETTLEMENT DURING CONSTRUCTION PERIOD...... 25 7.2 BACKGROUND AND REMAINING ISSUES ...... 25 7.3 POST-RESETTLEMENT SUPPORT APPROACHES ...... 26 7.4 POST-RESETTLEMENT SUPPORT IN RESERVOIR AREA...... 26 8. INSTITUTIONAL ARRANGEMENT AND SCHEDULE ...... 28 8.1 RESPONSIBLE INSTITUTIONS FOR RESETTLEMENT IMPLEMENTATION ...... 28 8.2 TRAINING PLAN FOR RESETTLEMENT MANAGEMENT STAFF...... 28 9. PUBLIC PARTICIPATION AND GRIEVANCE PROCEDURE ...... 30 9.1 PUBLIC PARTICIPATION ...... 30 9.2 GRIEVANCE PROCEDURE ...... 31 10. MONITORING AND EVALUATION ...... 33 APPENDIX 1 COST ESTIMATION OF ROAD PASSAGE PROJECT ...... 34 APPENDIX 2 TERMS OF REFERENCE FOR EXTERNAL MONITORING ...... 35

PREFACE

This is an updated resettlement plan (RP) that was written in April 2013; the original RP had been approved by the Asian Development Bank (ADB) in 2010. After a due diligence investigation between November 2012 and Feburary 2013, the updated RP has thus been formed.

In the original RP, around 101 mu of farmland, including 90 mu of irrigated land, 4 mu of vegetable land, and 7 mu of orchard, will be affected. 23 households or 58 persons of 6 villages (Dongjing, Gouhe, Nuanshuihe, Ruitou, Shangzhuang, and Xijing) of Wujing township will be affected, of which 2 households or 6 persons from the Gouhe village will be affected by the structure demolition of 124 square meters (m2). After the November 2012 survey that was based on a complaint letter to ADB received in October 2012, a conclusion was reached that 3 persons of 1 household from the Dongjing village and a road passage that serves this village will also be affected.

Effects of projects on lands and resettlement main part is from elevation 289.0 meters (m) to 283.5 m of reservoir inundation land. Preliminary design of the Songshan reservoir reinforcement project was done in May 2007 reply, which uses the ADB loan project started in August 2010. Owing to influence national policy and industrial structure adjustment, drawdown area of temporary crops and some housing and related facilities were changed. The reasons are 1. Regulations for the protection of the environment, and reduce soil erosion, that are prohibited on the slope on the steep slopes of more than 25 degrees of reclamation land requirements; 2. Production costs is rising; 3. Central government’s issuance of resettlement support funds; and 4. Adjustment of planting structure.

According to the requirements of ADB’s involuntary resettlement policy, to smooth implementation of the RP, achieve the resettlement target, it is necessary to adjust the original RP.

The updated RP will still be paying compensation for young crops and other appendages on the ground, so compensation does not change.

EXECUTIVE SUMMARY

Songshan reservoir is located about 25 kilometers south-west of Linqu County, the upstream of Shihe River, which is the tributary of Mihe River. The main project of the reservoir was built in October 1966; and completed in January 1970 for water storage, which is a medium-sized reservoir mainly constructed for flood control and irrigation; and can also be used for fish breeding and power generation.

The reservoir flood control capacity is lower than the recent abnormal flood standard issued by the Ministry of Water Resources. There are also many quality problems in the project, resulting in the unsafe operation. To ensure the reservoir and people's lives and property in the downstream bring the economic and social benefits of the reservoir into full play, it is necessary for the implementation of risk mitigation and reinforcement.

After the operation of the Songshan reservoir, the drawdown area came into being. Villagers around the reservoir grow some temporary crops on the drawdown area. According to geographical location, topographical conditions, flood control works, and river situation of the Songshan reservoir, the main parts involved in project impacts on land and resettlement is the inundation impacts of reservoir land from the elevation of 289.0 meters (m) to 283.5 (m), which had been acquired during the construction of the reservoir in 1960.

The construction of the project has no permanent land acquisition impacts or temporary land use impacts. However, since the reservoir operated at the water level 283.5 m for a certain period, some villagers around the reservoir started farming on the unused stated-owned land in drawdown zone. The proposed improvements of the reservoir cause some impacts on their farming in this designated area.

The original RP had been approved by the Asian Development Bank (ADB) in 2010. After a due diligence investigation between November 2012 and Feburary 2013, the updated RP has thus been formed. After this survey that was based on a complaint letter to ADB received in October 2012, a conclusion was reached that 3 persons of 1 household from the Dongjing village and a road passage that serves this village will also be affected.

Totally, 235.5 mu farmland, including 225 mu of irrigated land, 10.5 mu of vegetable land, and 18.5 mu of orchard, will be affected. 56 households or 160 persons of 6 villages (Dongjing, Gouhe, Nuanshuihe, Ruitou, Shangzhuang, and Xijing) of Wujing township will be affected, of which 3 households with 9 persons from Gouhe and Dongjing villages are affected by the structure demolition of 317square meters (m2); 610m2 of nonresidential houses are affected by the project and a road passage that serves this village will also be affected. Farmland in the drawdown area is the state-owned land. The affected people can grow on this land when it is not used for reservoir operation purposes. To ensure the affected persons’ (APs) living standard will not be severely affected by the improvement of the project, compensation will be paid for the loss of young crops and other ground attachments. The compensation for young crops shall be based on the output value in one season, i.e., half of the average annual output value of CNY600/mu. This standard was used for implementation.

The local government will arrange the farmland development to be allocated to the affected villagers before the inundation impacts. In addition, all of the affected people are included in post-resettlement support program; and they can enjoy the assistance from the central government every year. The unit price of compensation for brick-concrete rural house is CNY658/m2; the unit price of compensation for brick-wood rural house is CNY518/m2; the unit

price of compensation for soil-wood rural house is the same as that of brick-wood house; and the unit price of houses for other purpose adopts CNY200/m2. In addition, the affected people are paid infrastructure assistance at the rate of CNY1,500 per person; and relocation subsidy and transition subsidy are CNY200 per person, respectively. These standards were used for implementation.

Based on consultation with affected households, all compensation on house and associated structures is paid in cash directly to each affected household who will arrange the reconstruction of the houses and other facilities themselves. The APs have participated in the planning process, and their concerns have been integrated into the RP.

The draft RP was distributed to the affected village in December 2009. In accordance with the Asian Development Bank’s (ADB) public communications policy, the draft RP was posted on the ADB website prior to loan appraisal.

This updated RP will been posted on the ADB website and the implementation of RP will begin immediately. It is planned to finish the resettlement work at the end of 2013.

An effective and transparent channel for lodging complaints and grievances has been established, and relevant institutions shall accept the complaints and grievances lodged by the APs free of charge. The reasonable costs incurred are covered by the contingency of the project.

To implement the RP successfully and achieve the goals of resettlement, the implementation of the RP has internal and external monitoring according to ADB resettlement policies. The external monitoring and evaluation (M&E) is done by an independent monitoring agency. The external M&E institution shall undertake regular M&E the resettlement implementation activities and provide necessary consultative recommendations.

1. BRIEF INTRODUCTION OF THE PROJECT

1.1 Background

1. Songshan reservoir is located about 25 kilometers (km) south-west of Linqu County, the upstream of Shihe River, which is the tributary of Mihe River. The main project of the reservoir was built in October 1966, completed in January 1970 for water storage, which is a medium-sized reservoir mainly constructed for flood control and irrigation, and can also be used for fish breeding and power generation. The control drainage area is 151 square kilometers (km2). The flood will be once in 300 years, and the corresponding flood level is 290.03 meters (m). The maximum flood level 290.98 m, and the maximum vent capacity is 1,532 cubic meters per second (m3/s). The total capacity is 56.28 million cubic meters (m3); the live storage capacity is 40.53 million m3; and the dead storage capacity is 5.33 million m3. The following are within downstream of the dam: 2 small type I reservoirs, 6 small type II reservoirs, and 2 dams. The total drainage area is 36.4 km2; and the total capacity is 2.22 million m3. There is no national basic rainfall station and hydrological station in the drainage area.

2. Reservoir flood protection will protect the urban area in Linqu, Qingzhou, and Shouguang counties (cities) in the downstream; and the life and property safety of a population of 320,000 along the river. The reservoir also protects the major traffic lines such as the Jiaoji railway and Jiqing expressway at 40 km in the downstream and hundreds of large and medium-sized enterprises as well as the safety of more than 200,000 mu of farmland. Therefore, the reservoir location is very important.

3. In accordance with relevant provisions of the Reservoir Dam Safety Appraisal Method issued by the Ministry of Water Resources (MWR), the Department of Water Resources of Shandong Province organized relevant departments and experts to appraise the safety of the Songshan reservoir in April 2003. To sum up, the reservoir flood control capacity is lower than the recent abnormal flood standard for water conservancy project danger removal and reinforcement issued by the MWR. There are also many quality problems in the project, resulting in the unsafe operation. The reservoir is assessed as dangerous reservoir, which belongs to 3rd class dam. In December 2003, the MWR’s Dam Safety Management Center approved the "Appraisal Opinions of the Dam to be 3rd Class Dam.”

4. To ensure the reservoir and people's lives and property in the downstream bring the economic and social benefits of the reservoir into full play, it is necessary for the implementation of danger removal and reinforcement. The Linqu county government presses for early implementation of the Songshan Reservoir Danger Removal and Reinforcement Project.

1.2 Description of the Project

1.2.1 Location

5. Linqu is located in central Shandong Province, adjoining with Changle County and Anqiu City in the east, adjacent to Zichuan District in the west, bordering Yishu and YiYuan counties in the south and adjacent to Qingzhou City in the north. The Linqu Songshan reservoir is located in southwest Linqu County, in the upper reaches of Shihe River, tributary of Mihe River, east longitude 118° 18', north latitude 36° 22'.

6. The geographical location of the Linqu County Songshan Reservoir Danger Removal and Reinforcement Project is shown in Figure 1-1.

Figure 1-1: Sketch Map of Songshan Reservoir

1.2.2 Scale and Contents of the Project

7. The Linqu County Songshan Reservoir Danger Removal and Reinforcement Project is the priority subproject of Shandong hilly area Songshan Reservoir Danger Removal and Reinforcement Project sponsored by the Asian Development Bank (ADB). It is a flood control project, and the main contents of the rehabilitation project are

(i) dam terrace section 0 +550-0 +810 anti-seepage wall; upstream slope sand-shell pressure, dam foot stone compression, and revetment demolition and reconstruction; 0 +070-0 +500 section core wall filling and grouting; and anti-wave wall demolition and reconstruction; (ii) the outlet tunnel original reinforced concrete pipe lined with gravel, glass, and steel pipe; outlet fork tube is removed and converted into steel fork tube; corridor and shaft are reinforced; and gates, hoisting machines, and trash rack are replaced; and (iii) spillway gate is removed and reconstructed; the curtain is grouted, and a new slope is constructed; and the outlet tunnel shall be appropriately lined.

8. Up to October 2009, the above-mentioned parts one and two have been started and will be completed in December 2009. So, only the third part will be under the loan project. The construction of the first two parts of works was implemented within reservoir engineering management scope, and no impacts of land acquisition or temporary land use were identified.

1.2.3 Investment Budget and Schedule of the Project

9. According to the Primary Design Report on the Reinforcement Project of Songshan Reservoir of Linqu, Weifang City, Shandong compiled by the Water Resources Research Institute of Shandong Province, the total investment for this project is CNY5.31 million, of which CNY4.68 million is for the resettlement investment. The construction of project will be completed in 12 months from December 2009 to December 2010, and the resettlement will be implemented from December 2010 to December 2013

1.2.4 Social and Economic Benefits of the Project

10. The implementation of this project can significantly improve the flood control capacity of the Songshan reservoir. The flood control standard will be improved from the current once in 20 years to once in 100 years to provide a good environment to protect the life and property safety of the people to the maximum. Owing to the improvement of the flood control standard, the people's sense of security in the downstream is enhanced; and the life and work are protected, which lays a solid foundation for industrial and agricultural production, and brings significant social and economic benefits.

2. PROJECT IMPACT

2.1 Survey of Project Impact

11. The investigators conducted a comprehensive survey of the project impact according to the inundation area determined by the project design, mainly including farmland survey, survey of population affected by land acquisition, survey of demolition of houses and ancillary facilities, survey of sporadic tree, and survey of agricultural and sideline facilities.

2.2 Results of Project Impact Survey

12. According to the survey, the project will have the inundation impacts of temporary crops and some houses and associated facilities in drawdown area of the reservoir.

2.2.1 Land Affected by the Project

13. Temporary crops in drawdown area. The temporary crops loss is 235.5 mu, including 225 mu of irrigated land, 10.5 mu of vegetable land, and 18.5 mu of orchard. The statistics of the survey of the temporary crops of the project by villages are shown in Table 2-1. Figures 2-1 and 2-2 show temporary crops and vegetable land in drawdown area. Since most of the affected households still have the remaining temporary crops in the drawdown area which has no definite statistical area, it is impossible to quantify the proportion of losses per households. However, based on the total area affected, the average income loss from the inundation of temporary crops is estimated to be CNY563 per capita annually, which is about 20% of the net rural incomes.

Table 2-1: Temporary Crops on Drawdown Area County Township Irrigated Vegetable (district) (town) Village Subtotal Land Land Orchard AHs APs Nuanshuihe 73.5 72.0 1.5 15 43 Gouhe 43.3 41.0 2.3 6.0 10 30 Linqu Wujing Ruitou 16.8 15.0 1.8 1.5 4 12 County Town Xijing 81.9 78.5 3.4 7.2 16 49 Dongjing 11.5 10.0 1.5 3.8 3 9 Shangzhuang 8.5 8.5 2 5 Total 6 235.5 225.0 10.5 18.5 50 148 AH = affected household, AP = affected person.

Figure 2-1: Temporary Crops in Drawdown Area Figure 2-2: Vegetable Land in Drawdown Area

2.2.2 Houses and Affiliated Facilities to be Demolished

14. Residential houses and attached facilities affected by the project. The project involves the residential housing of Wujing Town, which covers 6 people from 2 households from Gouhe village and 3 people from 1 household from Dongjing village. Among of them, two households in Gouhe village have normal residences in the village. The area of residential houses is 189 square meters (m2), including 105 m2 in brick-concrete structure; and 84 m2 simple houses. The 1 household in Dongjing village has no normal residences; and the area of this household is 128 m2, which is with brick-concrete structure (See Figure 2-4). In addition, some associated facilities will be affected, including 115 m2 of enclosing wall; and cable TV of 2 households. Figures 2-3 and 2-4 show the affected houses in Donghe and Dongjing villages.

Figure 2-3: Affected Houses in Donghe Village

Figure 2-4: Affected Houses in Dongjing Village

15. Nonresidential houses affected by the project. 4 households from Dongjing, Jijing, Nuanshuihe, and Ruitou villages built some temporary production houses to safeguard the orchard or vegetable or for breeding purpose. The area of main houses is 421 m2, including 47 m2 in brick-concrete structure; 97 m2 in brick-wood structure; and 83 m2 earth-wood structure. The area of simple houses is 279 m2, including 185 breeding pen; and 94 m2 utility space. In addition, 78 m2 enclosing walls will be affected. Table 2-2 provides the details of nonresidential houses to be affected.

Table 2-2: Nonresidential Houses to be Affected Main House (m2) Simple Houses (m2) Others Village and (residents’ Total Brick- Brick- Soil- Orchard Breeding Enclosing committee) AHs APs House Subtotal concrete wood wood House (brick-wood) Wall (m2) Total 4 12 610 421 47 97 82 42 153 78.0 Nuanshuihe 1 3 38 38 38 Ruitou 1 3 87 45 45 42 Xijing 1 3 181 52 52 44 42 85 62.5 Dongjing 1 3 115 47 47 26 16.5 AH = affected household, AP = affected person, m2 = square meter.

2.2.3 Ground Attachments to be Affected

16. According to the survey, there are 325 scattered trees in the affected area. The scattered trees affected by the project are shown in Table 2-3.

Table 2-3: Basic Information of the Scattered Trees Affected by the Project

Village (residents’ Amount of Affected Fruit Township (office) committee) Trees Wujing 325 Nuanshuihe 85 Gouhe 123 Ruitou 25 Xijing 48 Dongjing 44

2.2.4 The Affected Road Passage

17. This involves a road passage that serves five households in Dongjing village of Wujing town to travel. The road is with concrete structure, has a longth of 160 m and a width of 2 m. Figure 2-5 shows the affected road passage.

Figure 2-5: Affected Road Passage in Dongjing Village

2.2.5 Ethnic Minorities and Vulnerable Groups Affected by the Project

(i) Affected ethnic minorities. According to the survey, there is no cultural heritage to be particularly protected within the project area; and (ii) Vulnerable groups. According to the survey, the poverty line of rural per capita annual income is CNY1,500. No poor households are identified among the affected people farming land in drawdown area.

3. NATURAL, SOCIAL, AND ECONOMIC SITUATIONS IN THE PROJECT AREA

3.1 Natural Conditions

18. Songshan reservoir dam belongs to the hilly topography; there are low hills at the right and hills at the left. The dam area can be divided into two geomorphologic units of tectonic denudation and erosion according to the causes.

3.2 Social and Economic Situations

19. Linqu is located in north-west Shandong Province, the land area is of 1,833 km2. In 2000, the total population is 867,000 (including the male population of 447,800, and the female population of 419,200); the population density is 473 persons/km2; and the natural population growth rate is 4.5%.

20. In 2007, the gross domestic product (GDP) of the country was CNY98.20 billion, an increase of CNY1.84 billion in the first industry, increased by 10.2%; an increase of CNY5.05 billion in the secondary industry, increased by 15.7%; an increase of CNY2.93 billion in the tertiary industry, increased by 17.5%. The first, secondary, and tertiary industries respectively contributed to the GDP growth percentage of 2.8% and 5.2%. The proportion of three industries was adjusted from 20.5:50.3:29.2 in the previous year to 18.8:51.4:29.8. GDP per capita exceeded CNY10,000 for the first time, reaching CNY11,527.

3.3 Socioeconomic Situations of the Towns (Offices) and Villages in the Project Area

3.3.1 Socioeconomic Situations of the Wujing Township

21. According to the survey, the project affects only Wujing town, and there is a total of 64 village (residents) committees, with a total population of 72,000 from 18,800 households, of which the agricultural population is 51,220 from 13,941 households, accounting for 71.1% of the total population. The town has a total area of 55,000 mu of arable land (including irrigated land of 37,000 mu), per capita arable land area is of 1.07 mu. In 2007, the total agricultural revenue of Wujing town was CNY235.61 million. Details are shown in Table 3-1.

Table 3-1: Socioeconomic Situation of the Affected Towns Target Unit Wujing Town I. Basic Information 1. Number of village (residents) committees village 64.00 (i) Villages with electricity village 64.00 (ii) Villages with post village 64.00 (iii) Villages with telephone village 64.00 (iv) Villages with highway 64.00 2. Households 18,800.00 (i) Non-agricultural household 5,440.00 (ii) Agricultural household 13,941.00 3. Population 72,000.00 (i) Non-agricultural person 20,780.00 (ii) Agricultural person 51,220.00

Target Unit Wujing Town 4. Labor resource person 12,917.00 II. Agricultural Production Conditions 1. Arable land area mu 55,000.00 (i) Irrigated land 37,000.00 (ii) Dry land 18,000.00 2. Grain output ton 15,640.00 3. Agricultural population arable land per capita mu/person 1.07 III. Rural Economy (i) Agricultural income (i) Agricultural gross income CNY10,000 23,560.00 (ii) Agricultural net income CNY10,000 15,020.00 (ii) Net income per capita CNY 2,990.00

3.3.2 Basic Situation of the Villages Affected by the Project

22. The impact of project involves six administrative villages, with a total population of 3,695; the existing arable land area is 1,465.0 mu; and the agricultural population per capita arable land is 0.4 mu.

23. According to the survey, the level of per capita income of the six administrative villages is between CNY2,396/year and CNY3,016/year. In 2008, the level of per capita income of all the affected villages is CNY2,677/year, 10% lower than the per capita net income of farmers in the county. There is no minority population in the six administrative villages. The total poverty people is 25 persons in 6 villages (with poverty residence of only 0.7%).

24. The details of the basic situation of the affected villages are shown in Table 3-2.

Table 3-2: Socioeconomic Situation of the Villages Arable Arable Land Vulnerable Groups Land per Income Township (mu) C apita per Capita Proportion (office) Village Population Total (mu) (CNY/year) Population (%) Remarks Wujing 3,695 1,465 0.40 2,677 25 0.70 Arable Nuanshuihe 835 295 0.35 2,748 5 0.60 land area does not Gouhe 502 260 0.50 3,016 0 0.00 include Ruitou 311 120 0.38 2,506 3 0.96 land in Xijing 1,164 420 0.36 2,690 8 0.69 drawdown area. Dongjing 252 110 0.43 2,396 6 2.38 Shangzhuang 631 260 0.41 2,488 3 0.48

3.4 Basic Information of the Households Affected by the Project

25. Basic conditions of affected households were conducted by the investigators at the scene in random sample of land acquisition and resettlement, and the affected households fill out the survey form and sign for recognition. 25 households in the area impacted by the project are sampled, accounting for the project 45% of the total number of affected households. The

samples are representative and typical, which can be used as the basis for the project impact analysis. The distribution of affected households in sample survey is shown in Table 3-3.

Table 3-3: Survey Samples of the Affected Households by Drawdown Area Total Sampling Town Affected Affected Sample Proportion (office) Villages Households Households (%) Wujing 6 56 25 44.64% Nuanshuihe 16 8 50.00% Gouhe 10 5 50.00% Ruitou 5 3 60.00% Xijing 17 9 52.94% Dongjing 6 0 0.00% Shangzhuang 2 0 0.00% Source:the sample investigation was hold in 2008, the number of affected households is based on the investigation in 2013.

3.4.1 Survey Results and Analysis

26. Survey of the basic situation of affected households. In 2008, the survey and analysis of the basic situation of the affected households through sampling shows

(i) The size of the affected households. Among the households affected by the land acquisition, the average population is 3.72 per household, including 2.35 persons of 17-year-old to 60-year-old labor; 0.96 persons under the age of 17; and 0.4 persons over the age of 60; (ii) Sex ratio. 1.00:1.04 of men and women in the project area; (iii) Age composition. 17-year-old to 60-year-old labor force account for 63.1% of the total population, those below 17 years old account for 26.1%, and those over 60 years old account for 10.8%; (iv) Ethnic composition. The persons affected by the project are all of the Han nationality; (v) Level of education. Within the area affected by the project, for every hundred people, 39 people with high school educational background; 36 people with secondary school educational background; 22 people with primary school educational background; and 3 are illiterate or semi-literate; (vi) Housing area per capita. The housing area per affected household in the project area is 105.5 m2, the area per capita is 28.4 m2; and the house structure is mainly brick-wood structure; (vii) Contract collective land. The contract collective land per agricultural household in the area affected by the project is 1.49 mu, and the contract arable land per capita is 0.4 mu; the grain output per household is 972 kilograms (kg), and the grain possession per capita is 261 kg; and the livestock per household is 4.5, and the poultry per household is 9.8; (viii) Household properties. 72 TV sets (including 21 black and white TV sets, and 51color televisions) are owned by per hundred households in the affected area, 27 washing machines，52 telephones, and 40 mobiles are owned by per hundred households; and (ix) Income and expenditure. The annual gross income of affected households is CNY14,980 per household, and the per capita annual income is CNY4,027; the

annual consumption expenditure is CNY7,446 per household, and per capita annual living expenditure is CNY975; the annual net income per household is CNY11,947, and the per capita annual net income is CNY3,212.

27. The summary of the basic situation of the households affected by the land inundation of the project is shown in Table 3-4.

Table 3-4: Survey of Basic Information of Affected Households in Drawdown Area

Total Samples (25 households) Item Unit Total Target per Household I. Size of the affected households 1. Total household population person 93 3.72 Among which: female person 45 1.8 2. Labor force between and 60 years person 47 1.88 old 3. Population below 17 years old person 24 0.96 4. Population above 60 years old person 10 0.4 II. Education 1. Above senior high school person 2. Senior high school person 36 1.44 3. Secondary high school person 34 1.36 4. Primary school person 20 0.8 5. Illiterate person 3 0.12 III. Nationality 1. Han person 93 3.72 2. Minority person IV. House area 1. House area m2 2638 105.52 2. House area per capita m2/person - 28.4 V. Agricultural production 1. Contracted arable land mu 37.3 1.49

2. Arable land per capita mu/person - 0.40 3. Grain output kg 28,575 1,143 4. Grain owned per capita kg/person 361 5. Livestock 112 4.5 6. Poultry 245 9.8 VI. Ⅵ.Family property 1. TV set set 72 2.88 Among which: color TV set 51 2.04 2. Air conditioner set 3. Refrigerator set 16 0.64 4. Washing machine set 27 1.08 VII. Average annual gross income 374500 14980 1. Agriculture Yuan 122025 4881 2. Stock breeding Yuan 92700 3708 3. Non-agriculture Yuan 150100 6004

Total Samples (25 households) Item Unit Total Target per Household VIII. Average annual expenditure Yuan 186150 7446 1. Living Yuan 90700 3628 2. Production Yuan 75825 3033 3. Others Yuan 19625 785 IX. Annual net income per household Yuan 298675 11947 X. Annual savings per household Yuan 188350 7534 kg = kilogram, m2 = square meter.

28. Opinion survey of the affected people. In 2008, the survey of the basic situation of the affected households shows the following:

(i) Understanding of the situation. Understanding: 97.8% of the affected persons (APs), not understanding: 2.2%. (ii) Understanding channel. Through the investigators: 91.4%; through the villagers in the neighboring village: 52.6%. (iii) Support attitude. All APs hold supportive attitudes toward the project. (iv) Extent of impact. 71.0% of the APs think that there are great impacts of the project; 17.2% think that the impact is little, 4.3% think that the impact is minor. (v) Resettlement. 100% of the APs express that they preferred monetary

3.5 Social and Economic Impact on the Affected Population

29. The implementation of the project will affect the society and economy for the affected people to a certain extent.

(i) Within the scope of the project impact, Wujing town is located at the edge of Linqu County with poor infrastructure; but with the economic development, local farmers are provided with employment, work, business, and other opportunities for non-agricultural production, so they are less dependent on the land. According to the survey, in 2008, the rural labor in Wujing town reaches 22,170 people, including 11,300 people engaged in industry, construction, transportation, wholesale and retail, and other non-agricultural business, accounting for 51% of rural labor force. From the view of income structure, in 2008, the average annual gross income per affected household in the area is CNY14,980, among which agricultural income is CNY4,881, accounting for only 32.5% of total revenue. The total income from agricultural ctivities, including farming and husbandry, in drawdown area is CNY2,933, accounting for 19.6% of the total income. The survey shows that the project construction and loss of land resources will lead directly to the reduction in agricultural income of affected local farmers. However, their source of livelihood mainly rely on non-agricultural income. Crop income accounts for only a small part of the total income; the project will not bring great impact on their production and daily life;

(ii) Although the construction of the project will have some impacts on their agricultural activities in drawdown area, they can still keeping farming on drawdown land that will not be inundated. According to the historical hydraulically statistics, the water level reached the benefit level only once since 1970s, the villager will be allowed to continue farming in the drawdown zone when it is not inundated. So loss probability of the drawdown farmland is very low. In addition,

all of affected people are included in post-resettlement support program, they can enjoy the assistance from the central government every year; and

(iii) The three households living below the flood level have to move before the reservoir is rehabilitated. The process of decoration and relocation will consume certain human and material resources. However, this project will compensate for the loss of all their properties according to relevant policies and will provide necessary living allowance and new housing sites supporting infrastructure fees, such as relocation and transportation fees. During the house construction process, the project implementation agencies and the village will also provide necessary assistance, so the impact of the project construction on the impact of the relocatees can be mitigated.

30. Although the project construction will have little impacts on villagers, but the local government will pay for the loss of young crops to ensure their lives will not get worse. In addition, the same amount of farmland will be developed to make up the loss of their farmland in drawdown zone of the reservoir. All affected persons enjoy the post-resettlement support of central government.

4. COMPENSATION POLICY AND STANDARD

4.1 Applicable Laws, Regulations, and Policies for Resettlement

31. The resettlement policy for this project is established mainly in accordance with the relevant laws of the People’s Republic of China (PRC) and the relevant policies of ADB, including

32. ADB Policies

(i) Safeguard Policy Statement, July 2009 (effective from 20 January 2010) (ii) Handbook on Resettlement A Guide to Good Practice (effective from 1998) (iii) Gender and Resettlement Analysis, February 2003

33. Laws and regulations of the People’s Republic of China. Regulations on Land Requisition Compensation and Resettlement for Construction of Large and Medium-sized Water Conservancy and Hydropower Projects (effective 2006).

4.2 Objectives and Principles of Resettlement

34. The primary objective of the land acquisition and resettlement (LAR) program is to ensure that the APs will improve their standards of living, or at least will not be made worse off because of the project. The principles of the compensation and entitlements established for the project are as follows:

(i) Compensation and entitlements provided must be adequate to allow APs to at least maintain their pre-project standard of living, with the prospect of improvement; (ii) Compensation and entitlements provided are based on market or replacement value, and must be adequate; (iii) Compensation should not be paid to those people who occupy land or construct structures and auxiliaries in the project area after the cut-off date determined by the local government; (iv) Adequate compensation should be provided to the APs timely; (v) All the APs will be adequately informed about eligibility, compensation rates and standards, livelihood and income restoration plans, and project timing; and (vi) Close monitoring and timely actions will be carried out to identify and resolve any problems.

4.3 Eligibility of Compensation

35. The project APs who are entitled to receive compensation from the project refer to the persons affected by the involuntary taking of land resulting in (i) permanent or temporary loss of land or access to land; (ii) loss of income sources or means of livelihood, whether or not the APs must move to another location; and (iii) loss of ground attachments and standing crops.

36. All landowners and users in the project areas affected by LAR as a consequence of the project will be eligible for fair compensation and rehabilitation according to the type of loss and quantities as well as the cut-off date determined by the government within the completion date of the construction map and investigation. The newly cultivated land and newly built houses shall not be compensated after the cut-off date.The cut-off date is 30 November 2009.

4.4 Compensation Policy and Standard

4.4.1 Description of Farming in Drawdown Area

37. The affected people farming in drawdown area are from villages in Songshan reservoir area. The per capita farmland is less than average level due to the land acquisition of construction of the reservoir. The shortage of farmland is the main cause for them to farming in the drawdown zone. The local government has no definite management measures on the drawdown area, which results in the loose control or constraints in the farming activities. Since the reservoir operated at the lower storage water level under endangered condition, much land was never inundated and could be used for agricultural purposes. Farming activities in the drawdown land is extensive cultivation with low output. Farmers, especially young labors, concentrate on outside work regularly and only spend some spare time on farming in this area.

4.4.2 Compensation and Resettlement Principles

38. Farmland in the drawdown area is the state-owned land. The affected people can grow on this land when it is not used for reservoir operation purposes. According to Article 22 of the “Regulations on Land Acquisition Compensation and Resettlement for Construction of Large and Medium-sized Water Conservancy and Hydropower Projects”(effective since 1 September 2006), no compensation is required for use of unused state-owned land which is not to be used by any unit or individual. To ensure that the APs’ living standard will not be severely affected by the consolidation of the project, the compensation will be paid for the loss of young crops and other ground attachments. In addition, the local government will arrange the farmland development to be allocated to the affected villagers before the inundation impacts.

39. The compensation for housing or other property is the replacement price, without deduction for depreciation or other forms of discounts. Compensation in monetary form will be used. The relocation of residential units will be given resettlement subsidies. Affected people by house demolition will arrange the housing themselves.

4.4.3 Basis and Standards of Compensation for Temporary Crops 40. According to the “Notice on the Adjustment of Land Occupying Annual Production and Compensation Standard, which is forwarded by the General Office of Shandong Provincial People’s Government and issued by the Shandong Provincial People's Government Office” Luzhengbanfa [2004] No.51, project-influenced area, Linqu, belongs to the firth-class areas. The Annual Average Output Value (AAOV) of the fourth-class area is CNY1,200 per mu. The compensation for young crops shall be based on the output value in one season, i.e., half of the AAOV, CNY600/mu.

4.4.4 Compensation Standard for Scattered Trees 41. 36. According to the Weifang City Government Circular Concerning the Associated Auxicillaries Compensation Standard on Acquired Land, the compensation unit price is CNY200/tree.

4.4.5 Compensation Standard for Houses Demolition and the Attachments a) Residential and Nonresidential Houses 42. The houses in the project area are mostly of brick-concrete, brick-wood structure. To develop a reasonable standard of compensation to enable the relocatees to get the compensation equivalent to the replacement cost, the physical indicators and the replacement cost of the brick-wood houses in the affected area are investigated and analyzed on a detailed basis. According to the “Circular of Shandong Provincial Government Concerning the Adjustment of the Annual Output Value and Compensation Standard of Ground Attachments,” the unit price of compensation for brick-concrete rural house is CNY650.99/m2, plus the land price of CNY6.54/m2, the unit price adopts CNY658.00/m2; the unit price of compensation for brick-wood rural house is CNY511.66/m2, plus the land price of CNY6.54/m2, the unit price adopts CNY518.00/m2; the unit price of compensation for soil-wood rural house is the same as that of brick-wood house; the replacement price of houses for other purpose adopts 40% of brick-wood houses, or CNY204.66/m2 and the compensation price adopts CNY200.00/m2. In addition, the affected people will be paid infrastructure assistance at the rate of CNY1,500.00 per person; and relocation subsidy and transition subsidy are CNY200.00 per person, respectively.

43. Whereas the existing decoration and materials of the residential houses in the project area are different, the change range of the compensation for residential houses are 10% up and down, which is shown in Table 4-1.

Table 4-1: Compensation Standards of Residential and Nonresidential Houses Compensation Type Structure Unit Standard Remarks Brick-concrete Yuan/m2 658 Change range 592–724 Brick-wood Rural house Yuan/m2 518 Change range 466–570 and Earth-wood Soil-wood Yuan/m2 200

b) Affiliated Facilities 44. The compensation for the affiliated facilities shall be determined according to the current unit price of the construction materials of the similar projects in Shandong Province and Linqu County (Table 4-2).

Table 4-2: Compensation Standards of the Affiliated Facilities No. Item Unit Compensation Standard Notes 1 Wall Yuan/m2 58 2 Cable TV Yuan/Household 260

4.5 Entitlements Matrix

45. According to the field survey organized by the County Project Office and Resettlement Design unit, the main impacts of land acquisition are confirmed on the basis of natural loss. The table of rights and interests can be used as the basis for the payment of compensation (Table 4-3).

Table 4-3: Entitlement Matrix Compensation Standard (Yuan/unit) Type of Responsible Policies for Resettlement Caused by Compensation Impact Affected Items Organ Land Acquisition Item Standard Compensation for residential 1. All the houses will be compensated Brick-concrete CNY658/m2 (592–724) based on the replacement costs, and Brick-wood CNY518/m2 (466–570) no depreciation will be deducted. The Miscellaneous CNY200/m2 available materials of the old houses Residential are owned by the migrants; Affiliated facilities houses and 2 resettled County 2. Residential houses are principly Wall CNY58/m2 affiliated households Project Office compensated with money to the Cable TV CNY260/household facilities affected people; and 3. Before the completion of new houses, Compensation for infrastructure Ground leveling, the migrants can live in the original CNY1,500/person houses; and they cannot be forced to water and lighting move out before the prescribed date. Transportation fee CNY100/person Living subsidy CNY100/person Non- Orchard 1 owner residential house All non-residential houses shall be The compensation unit prices of houses of County houses and compensated with money to affected various structure shall be based on that of the Breeding Project Office affiliated 3 owners people. residential houses and miscellaneous houses. house facilities Sporadic County The sporadic trees shall be Owners Compensation standard CNY200/tree trees Project Office compensated to owners. 1. The temporary crops will be paid for one season loss. The cost for land development will be borne by local government; Temporary 2. Local government will develop new crops in 235.5 mu of land County farmland and allocate to the affected reservoir farmed by 56 Young crops: CNY600/mu Project Office villagers before the inundation drawdown households impacts (Table 5.1); area 3. Affected persons will have priority for construction employment; and 4. Skills training will be available for each affected household (Table 5.3).

5. RESETTLEMENT REHABILITATION

5.1 Resettlement Strategy

5.1.1 Resettlement Targets

46. To reasonably compensate for and properly mitigate the project impacts to ensure the living standard of affected people remains the same or be higher than the original production level, income level, and living standards.

5.1.2 Resettlement Tasks

47. According to the survey statistics, a total population of 56 households is actually affected by the loss of temporary crops or house in the reservoir drawdown area, among which a population of 9 from 3 households shall be resettled.

5.2 Production Rehabilitation Plan

48. According to the survey, the farmland in drawdown area to be affected by the project is 235.5 mu, including irrigated land of 225 mu, vegetable land of 10.5 mu, and orchard of 18.5 mu. For the agricultural population who has lost their land because of the project, the land development programs will be implemented to make up for their farmland loss. The availability amount of land for development is shown in Table 5-1.

Table 5-1: Land Resources for Development Farmland to be Affected (mu) Land Resources Irrigated Vegetable for Cultivation Village Subtotal Land Land Orchard (mu) Location Slope south of Nuanshuihe 73.5 72.0 1.5 90 the village Slope south of Gouhe 43.3 41.0 2.3 6.0 65 the village Slope west of Ruitou 16.8 15.0 1.8 1.5 50 the village Slope west of Xijing 81.9 78.5 3.4 7.2 95 the village Slope east of the Dongjing 11.5 10.0 1.5 3.8 40 village Slope south of Shangzhuang 8.5 8.5 60 the village Slope south of 6 235.5 225.0 10.5 18.5 400 the village

49. Through the analysis of the unit price of reclamation, the land cultivation cost is CNY8,914/mu (Table 5-2). The planned farmland development is 235.5 mu with the total cost of CNY2.10 million. The land development will be implemented according to the reservoir water impounding level. The villagers will be allowed to continue farming when the land in drawdown zone is not inundated. All land development will be finished in 3 months and then delivered to the villagers for cultivation. During the land development period, the villagers will be paid the loss of one season crops in advance.

Table 5-2: Unit Price Analysis for Land Cultivation Investment Item Unit Unit Price (CNY) Quantity (CNY/mu) 1. Earth Work 8,164 1.1 Ground leveling m3 8.5 333 2,830 1.2 Clay coverage m3 6.5 200 1,300 1.3 Backfill of arable layer m3 3.0 200 600 1.4 Leveling of plough layer m2 10.0 333 3,330 1.5 Construction of filed ridges m3 8.0 13 104 2. Soil Maturation 650 2.1 Farmyard manure m3 50.0 13 650 3. Field Supporting Facilities mu 100.0 1 100 Total 8,914

5.3 House Structures Reconstruction

50. The project involves the residential housing in Wujing Town, which covers 6 people from 2 households in Gouhe village and 3 people from 1 household in Dongjing village. The people in Gouhe village have normal residences in the village, so no additional house plot will be allocated to them. The project has little impact on their normal life. No living resettlement will be given after the monetary compensation of the demolished house. But for the 3 people of 1 household in Dongjing village, they need to be resettled when their temporary houses are removed because they do not have a normal residence. According to a negotiation between local government and this affected household, they reached the conclusion that the affected people are completely compensated with money; and after that, these affected people use this money to arrange (build) their house in other places within the village and the plot of land was homestead for them rebuild their house. In addition, the affected people will be paid infrastructure assistance at the rate of CNY1,500 per person; and the relocation subsidy and transition subsidy are CNY100 per person, respectively. After consultation with the affected households, they will arrange the construction of the houses and water and power facilities themselves. 4 households from Dongjing, Jijing, Nuanshuihe, and Ruitou villages built some temporary production houses to safeguard the orchard or vegetable or for breeding purpose. All compensation on house and associated structures will be paid directly to those affected households.

5.4 The Rebuilding of the Village Road Passage

51. The project leads to an inundation of the road passage that serves the people in Dongjing village to travel. So, the affected road passage needs to be rebuilt. The proposed road passage must reach a level of national fourth grade. The road passage should have a length of 160.00 m and a width of 3.50 m, and is composed of soil concrete materials. The whole standard may match a travelling speed of 30 km/hour. The roadbed is highly filled with soil, and its compactness is no less than 0.94. To stabilize the roadbed, a grouted stone pitching wall is to be constructed at the left side; and a refilling soil to be done at the right sideat the height of 290.00 m. The scope of refilling is at the right side, which is lower than a level of 290.00 m.

5.5 Job Opportunities from the Project

52. Totally, the risk mitigation of Songshan Reservoir need 250,000 person-days during the

project construction stage, of which 10% are unskilled job opportunities, including manual laborers for foundry worker, excavation, material handling, greening etc. According to the survey, since the affected villages are located near the construction site, they have already been offered many temporary job opportunities for the started construction works. With regarding to the loan project, about 10,000 person-days unskilled job opportunities will be created. The affected people will be provided the priority in future employment. The salary levels is around CNY50 to CNY80 per-days between. The average income increase is between CNY3,378 and CNY4,054 per person.

5.6 Income Restoration Plan of Women

53. In the stage of RP preparation, the affected women were organized to actively participate in the survey of project impacts so as to understand their ideas on income restoration. As a result, women hold a positive attitude toward project construction by thinking that the project will help improve the environment and improve the flood control.

54. Women will fully participate in the compensation activities through the information disclosure and village meetings; they have equal entitlement with men in receiving compensation and employment. In addition, the following measures will be taken to improve women’s income:

(i) During the project construction, SRPMB has ensured that a certain number of the affected women (at least 20% of the unskilled laborers) will be offered unskilled jobs. As per labor laws, women will get equal pay to men for the same work; and (ii) Technical training program including fruit and forest planting skills and livestock techniques, etc. will be provided for the affected female laborers to ensure their income would not be reduced.

5.7 Training for the Affected Persons

55. To ensure the income of the APs will be restored in a sustainable way, the Songshan Reservoir Project Management Bureau (SRPMB) will cooperate with the Linqu agriculture, forest, and husbandry bureaus to provide free skill training programs regularly. The skill training programs include fruit and forest planting skills, animal raising techniques, and vegetable growing skills, etc. The training plan is shown in Table 5-3.

Table 5-3: Schedule of Training for Affected Persons No. Time Place Manner Recipients Contents Workshop, lecture, Affected Forestry and fruit planting and 1 Jan 2010 Town practical persons insect control demonstration Workshop, Affected Vegetable growing and animal 2 Mar 2010 Town lecture persons raising Affected 3 Other irregular technical trainings Not determined yet persons

6. RESETTLEMENT COST

56. The estimated cost of resettlement is CNY5.31 million in 2012 prices, including contingency. In terms of the categories of resettlement impacts, compensation is CNY4,682,875, accounting for 88%.the other cost is 627,505 , accounting for 12% of the total budget.

57. Table 6-1 provides the cost estimation of resettlement.

Table 6-1: Resettlement Cost

Compensation Standard Investment Item Unit Quantity (CNY) (CNY) 1. Temporary Crops mu 235.5 600 141,300 2. Compensation for 389,310 houses and affiliated

facilities 2.1 Residential house ㎡ 85,890

Brick-wood ㎡ 105.0 658 69,090 Simple houses ㎡ 84.0 200 16,800 150,000 Brick-concrete household 1 150,000

2.2 Non-residential 84,224 ㎡ house Brick-concrete ㎡ 47.0 658 30,926 Brick-wood ㎡ 97.0 518 50,246 Earth-wood ㎡ 82.0 518 42,476 Simple houses ㎡ 42.0 200 8,400 2.3 Affiliated facilities 11,772

Enclosing Wall ㎡ 194.0 58 11,252 Cable TV Household 2 260 520 2.4 Relocation 9,000 Person 6 1,500 Subsidy 2.5 Transportation 600 Person 6 100 Subsidy 3. Ground Attachment 65,000

Fruit Trees No. 325 200 65,000 4. Special Facilities 1,988,018

4.1 Pumping Stations Location 5 140,000 700,000 4.2 380v Power line km 3.5 27,500 96,250 4.3 Road Passage m 160.0 See Appendix 1 1,191,768 5. Livehood Support 2,099,247 Measures 5.1 Land Development mu 235.5 8,914 2,099,247 Subtotal (1-5) 4,682,875

6. Other Costs 374,630

6.1 Research and 4,682,875 140,486 3% Design Cost

Compensation Standard Investment Item Unit Quantity (CNY) (CNY) 6.2 Implementation 4,682,875 140,486 3% Management 6.3 Training 4,682,875 0.50% 23,414 6.4 M&E 4,682,875 1.50% 70,243 Subtotal (1–6) 5,057,505

7. Contingencies 5,057,505 5% 252,875 Total 5,310,380

58. According to the planned water storage level after implementation of the project in November 2010, in the first year (i.e., in 2011) the water level will rise from 283.5 m to 285.5 m, which will result in 40% of the new affected land to be inundated. So 40% of the total budget, CNY2,124,152, will be allocated in 2011; and the other 60% will be paid in 2012 and 2013. The actual progress will depend on the water storage situation. The land and houses that are not inundated will be allowed for continuous farming or living, but compensation will be paid in advance when impacts are identified. The cost of passage construction estimated should be seen in Appendix1.

7. POST-RESETTLEMENT PROGRAM FOR RESETTLERS IN RESERVOIR AREA

7.1 Inundation Resettlement during Construction Period

59. Songshan reservoir was constructed in October 1966. In January 1971, the main engineering were finished and started to store water and produced benefit. The construction of the reservoir inundated 9 villages of Wujing Township of Linqu County. The house and farmland inundation impacts are 2,947 and 1,972 mu. Totally 2,346 persons were involved in resettlement. Based on the “Shandong Rural Resettlers Registration and Ratification Method of Large and Medium-sized Reservoirs”, in 2006, the total resettlers are 6,220 from 1,907 households in 3 townships due to population growth since 1970. The details of resettlement information is presented in Table 7-1.

Table 7-1: Resettlement Status Caused by Construction of Songshan Reservoir Resettlement Inundation Impacts Population in 2006 Resettlement Farmland Houses Pattern Townships Affected Village APs (mu) (no.) Households APs Nuanshuihe 799 480 1,078 209 776 Xijing 499 433 685 Dongjing 177 134 166 Gouhe 384 450 465 Overall Wujing Ruitou 487 253 541 83 312 Resettlement Shangzhuang 138 9 Xiazhuang 35 Wangjiaquan 42 Zhongzhuang 7 3 Subtotal 2,346 1,972 2,947 292 1,088 Disperse Yeyuan 73 299 Resettlement Wujing 1,426 4,570 Chengguan 116 263 Subtotal 1,615 5,132 Total 1,907 6,220 AP = affected person.

7.2 Background and Remaining Issues

60. Since the founding of new PRC, a number of large and medium-sized reservoirs have been constructed and brought into huge benefits in flood control, power generation, irrigation and water supply, and ecological aspects. A large number of resettlers of large and medium-sized reservoirs made major contributions to effectively promote the national economy and social development. To help them to improve production and living conditions, the country has established the reservoir area construction fund, and the maintenance of post-resettlement support fund; and try to solve the remaining resettlement issues in reservoir area. However, due to the low support level and insufficient direct benefit to resettlers, at present their production and living conditions are still generally poorer. To help the resettlers in reservoir shaking off the poverty and promote the economic and social development in the new period, the central government of the PRC issued the “Suggestions on Perfecting Post-resettlement Support Policies for Large and Medium-sized Reservoirs Resettlers” in 2006 (Guofa [2006]No.17).

61. The central government distributed special fund of CNY2.09 million since the construction of the reservoir to 1985 to help improve the living condition of resettlers in Songshan reservoir area. Due to the out-dated infrastructure and limited income sources, some villages still have some troubles in aspect of drinking water, transportation, medical services, and education. In addition, the employment difficulties stayed with resettlement villagers.

7.3 Post-Resettlement Support Approaches 62. Based on the “Suggestions of State Council on Perfecting the Post-resettlement Support Policies of Large and Medium-sized Reservoir Resettlement” and the corresponding implementation method issued by the Shandong provincial government, the Linqu county government led the preparation of the post-resettlement program for Songshan reservoir.

63. Based on the “Management Method of Post-resettlement Support Fund of Large and Medium-sized Reservoirs in Shandong Province”, the support fund can be paid directly to resettlers or be used in actual development programs. In Linqu County, after full consultation with affected people, all support fund has been paid to resettlers directly at the annual rate of CNY600/person. The total resettlers are 14,927 in 7 townships of Linqu County that were identified as the support target of Songshan reservoir. The support will last for 4 ½ years in the duration of 2006–2010. The total cash payment will be CNY16.79 million for resettlers of Songshan reservoir area. The cash subsidy was paid quarterly. In addition to the cash payment, some other development programs have been planned and implemented since 2006. The details of such programs and implementation status of Songshan reservoir area is presented in Table 7-2. It is planned that five development programs have been or will be implemented in reservoir area villages from 2006 to 2010, including water resources facilities and farmland improvement, domestic water supply, transportation works, power supply, and education facilities. It is expected through the improvement of infrastructures the living condition of people in Songshan reservoir area will be better off.

Table 7-2: Post-Resettlement Support Program of Songshan Reservoir Beneficiaries of Resettlers Investment Programs Contents (no.) (CNY104) Water Resources Facilities and Pipeline installation, irrigation 230 14.00 Farmland Improvement equipment Domestic Water Supply Tap water facilities 1,363 163.75 Transportation Village-village road 2,192 408.30 Power Supply 380v power line 312 13.00 Education Cultural Buildings 93 10.00 Total 609.05

7.4 Post-resettlement Support in Reservoir Area 64. In Linqu County, after full consultation with affected people, all support fund has been paid to resettlers quarterly at the annual rate of CNY600/person. The support will last for 4 ½ years in the duration of 2006–2010. The total cash payment will be CNY16.79 million for resettlers of Songshan reservoir area. In addition to the cash payment, some other development programs has been planned and implemented since 2006. The total budget of the programs is CNY6.09 million, and the overall progress is 100% in term of the expenditure of the investment. The progress varies in different programs. All support funds will be allocated by central government. Table 7-3 presents the details of the budget of the programs.

Table 7-3: Investment and Implementation of Post-Resettlement Support

Beneficiaries - Budget No. of Implementation Progress Programs Township (CNY104) Resettlers in Cost (CNY 104) (%) Water Resources Facilities and Farmland Chengguan 14.0 230 14.0 100 Improvement Wujing 143.7 1,283 143.7 100 Domestic Water Supply Chengguan 10.0 26 10.0 100 Yeyuan 10.0 54 10.0 100 Wujing 338.8 2,030 338.8 100 Transportation （Road） Chengguan 69.5 162 69.5 100 Power Supply Wujing 13.0 312 13.0 100 Education Wujing 10.0 93 10.0 100 Total 609.0 4,190 609.0 100

8. INSTITUTIONAL ARRANGEMENT AND SCHEDULE

8.1 Responsible Institutions for Resettlement Implementation 65. The departments responsible for planning, implementation, management, and monitoring of the resettlement activities of the Linqu Songshan Reservoir ADB Loan project are

(i) the Linqu Water Resources Department, (ii) the Songshan Reservoir Project Management Bureau, (iii) the Songshan villagers’ committees/affected communities, and (iv) the design institute.

66. The Linqu County Water Resources Department is in charge of resettlement investigation, development of the Resettlement Plan.

67. Songshan Reservoir Project Management Bureau is the specific implementing agency, which is responsible for the socio-economic investigation, coordinating with Linqu Land Resources Bureau, governments and the affected villagers’ committees, and implementing the work of compensation and resettlement.

68. Affected villagers’ committees and/or communities are responsible for providing the land contract, assisting or participating in the various surveys and the work of land acquisition, community mobilization activities for publicity, and undertaking the verification of the measurement, valuation, and finalization of demolition agreements after APs negotiations together with the relevant technical personnel.

69. Design institute is responsible for the design of the project and defining the scope of affected land and assets.

70. The staffing of institutional arrangement for LAR is presented in Table 8-1.

Table 8-1: Staffing of Institutional Arrangement for Land Acquisition and Resettlement Staff (No.) Name of Institution Male Female Personnel Composition Linqu Water Resources Department 2 Official Linqu County Songshan Reservoir Project 3 1 Officials Management Bureau 3 1 Cadres and representatives Affected villagers’ committees of affected persons Total 8 2

8.2 Training Plan for Resettlement Management Staff

71. A system for staff training and human resource development was established at all levels of resettlement management institutions. The training plan was organized by the LCWRD, and the form of training included specialist lectures, technical training seminars, inspection of other similar projects and site training, etc. The training is shown in Table 8-2.

Table 8-2: Schedule for Resettlement Implementation Training Training Time Location methods Recipients Training Content Centralized Resettlement Feb 2010 Jinan City Resettlement business training course work staff Learn from Key personnel The implementation site visit of the Jun 2010 Domestic demonstration of the office ADB project Resettlement Discuss the resettlement July 2013 Linqu County Seminars work staff experience and the problems

9. PUBLIC PARTICIPATION AND GRIEVANCE PROCEDURE

9.1 Public Participation 72. This updated resettlement plan was prepared with full public participation and full information sharing with APs. The Songshan Reservoir Project Management Bureau (SRPMB) has informed the resettlement policies to all the APs via socioeconomic survey, social impact survey, and other communication and consultation channels. SRPMB also has consulted with various -APs through consultation meetings. Through wide consultation, coordination and communication, related local government, affected villages and APs can fully understand the resettlement impacts and resettlement policies; and formulate feasible income restoration measures.

73. SRPMB has contacted with the affected villagers’ committees in August 2009, and discussed the project and compensation costs, compensation policies, entitlement, and impacts of the project on the village and APs. SRPMB will sign the compensation agreement with APs and the affected village in January 2010. The resettlement plan approved by the Linqu county government was distributed to village committee in December 2009 to any one wishing to consult the document at the affected village. Copies of the resettlement plan will be kept in the project office and affected villagers’ committees. At the same time, this resettlement plan will be posted on the ADB website in January2010. The public consultation activities and schedule is presented in Table 9-1.

Table 9-1: Public Consultation Activities and Schedule

Organizatio Objectives Task Date ns Involved Participant Release of location and 1. Inform and discuss area of Land use, LCWRD, Representatives issues related with land compensation Aug 2009 SRPMB and of each use, and obtain standards, and VC organization suggestion or advices resettlement, etc. 2. Survey on affected Field survey of affected Aug 2009 Representatives physical index, and physical index, and Dce 2012 SRPMB, VC of each preparation of due socioeconomic status March 2013 organization diligence of affected households Agreement of 3. Compensation complementation SRPMB, and Representatives Jan 2010 agreement signed with standards, and Affected of each June 2013 affected people grievance appeal People organization procedures Dec 4. Due diligence disclosure Release of draft 2009–Jan to APs and on ADB ADB Resettlement Plan 2010 website June 2013 5. Implementation of the Verification and Jan 2010 Representatives RP: compensation, SRPMB and implementation of Due June~Dec of each house reconstruction, VC Diligence 2013 organization rebuilding the road Survey on the Jan SRPMB, 6. Monitoring and rehabilitation of APs Socioeconomic 2010–Dec Linqu LAB, evaluation after resettlement sample survey 2014 VC, and IMA implementation

ADB = Asian Development Bank, IMA = independent monitoring agency, LAB = Linqu agriculture bureau, SRPMB = Shandong reservoir project management bureau, VC = villagers’ committee.

9.2 Grievance Procedure

74. During the preparation and implementation of the resettlement plan, public participation is encouraged; and thus, there should not be any major issues or grievances. However, some unforeseen issues may occur during such process. To settle such issues effectively and make the construction and land acquisition implement successfully, an effective and transparent channel for lodging complaints and grievances has been established. The basic stages for grievance redress are

75. Stage 1. The APs submit an oral or written petition and/or complaint to the village committee. For an oral complaint, the village committee must make written records properly and give a clear reply within 2 weeks.

76. Stage 2. If the complainant is not satisfied with the reply in Stage 1, he can appeal to the township government and/or subdistrict office after receiving the reply in Stage 1; and the township government and/or subdistrict office will deal with the complaint within 2 weeks.

77. Stage 3. If the affected person is still not satisfied with the reply of township government and/or subdistrict office, he can appeal to Linqu Land Resources Bureau and Linqu Land Resources Bureau must give a reply within 30 days.

78. Stage 4. If the affected person is still not satisfied with the reply of Linqu Land Resources Bureau, he can appeal to SPMO after receiving the reply of Stage 3. They also have the right to appeal to the civil court within 3 months of receiving the reply.

79. Besides the established channel above, the external monitor can also receive grievances from APs and the APs can even submit directly to ADB.1 The appeal process, institutions, sites, leaders, and telephone numbers for redress of grievances will be publicized to APs via meetings, notices, and the information handbook. In this way, the APs will fully realize their rights of appeal. Meanwhile, the system of information dissemination will be strengthened through use of the media; and all APs’ feedback will be compiled and distributed to all involved organizations.

80. Relevant institutions shall accept the complaints and grievances lodged by the APs free of charge. The reasonable costs incurred shall be covered by the management fees or the contingency of the project. During the whole process of project construction, these grievance procedures remain valid so that the APs may deal with relevant issues.

______1 ADB has an Accountability Mechanism to ensure policy compliance. APs are required to seek grievance resolution using the above procedures, but if they still believe that their concerns have not been resolved in accordance with

this RP or ADB's Involuntary Resettlement Policy (1995), they may submit a complaint to ADB. The procedures are provided on ADB's website: http://www.adb.org/Accountability-Mechanism/default.asp

10. MONITORING AND EVALUATION

81. To ensure the successful implementation of the resettlement plan and accomplish the objectives to achieve appropriate resettlement, monitoring and evaluation should be carried out for the implementation of resettlement in accordance with the requirement of the ADB resettlement policy. The monitoring include both internal and external.

82. The independent monitoring and evaluation is done by an independent monitoring agency (IMA). The IMA will carry out regular monitoring and evaluation to the resettlement activities.

83. The IMA, approved by ADB and the Linqu county government, will undertake the independent monitoring of the project in respects of (i) extent of consultation undertaken with APs; (ii) compensation disbursement to the APs and affected village or group; (iii) participation and consultation during project implementation; (iv) grievances, problem resolution, and follow-up; and (v) staffing, training, schedule, and work efficiency of the resettlement officers. The IMA, being independent of the project, will inspect the whole implementation from an overall and long-term point of view. The IMA will put forward proposals to the Linqu county government, SPMO, and SRPMB in time so that the problems taking place in the implementation of the resettlement can be solved as soon as possible. The terms of reference for external monitoring and evaluation is presented in Appendix 2.

84. The major external monitoring and evaluation indicators are as follows:

(i) Monitoring and evaluation on progress of land acquisition implementation. (a) Progress of land acquisition, (b) progress of temporary land occupation, and (c) progress of project impacts; (ii) Monitoring and evaluation on fund disbursement and usage. (a) fund disbursement, and (b) fFund usage (planning and actual fund usage); (iii) Monitoring and evaluation on rehabilitation of affected persons’ production and livelihood. (a) Production and living conditions of the APs before land acquisition, (b) production and living conditions of the APs after land acquisition, (c) analysis and evaluation of employment and living condition before and after the resettlement, and (d) grievance mechanism and problem resolution; and (iv) Monitoring and evaluation on capabilities of resettlement institution, public participation, grievance, and appeal procedures.

33 Appendix 1

COST ESTIMATION OF ROAD PASSAGE PROJECT

Item Meaurement Unit Quantity Price (CNY) Total (CNY)

1 Road Passage Project 1,191,768

1.1 Retaining Wall 734,608

1.1.1 Digging foundation trench (macadam) 100 m3 21.080 1,868.64 39,391

1.1.2 Digging foundation trench (weathered stone) 100 m3 8.640 1,868.64 16,145

1.1.3 Capstone, 100×60×20 cm 100 m3 1.600 67,888.42 108,621

1.1.4 Masonry materials, 40×30×20 cm 100 m3 1.280 32,695.64 41,850

1.1.5 M10 masonry stone 100 m3 11.143 32,606.25 363,331

1.1.6 C20 concrete 100 m3 3.035 37,669.84 114,328

1.1.7 C10 cushion for concrete 100 m3 0.717 34,116.77 24,462

1.1.8 HPZ-A2 waterstop m 72.000 90.00 6,480

1.1.9 φ50PVC drainpipe m 400.000 50.00 20,000

1.2 Road Passage Project 245,467

1.2.1 20-cm thickness cement and concrete 1,000 m2 0.608 75,053.94 45,633

1.2.2 15-cm thickness 5% cement stabilizing gravel 1,000 m2 0.768 57,075.96 43,834

1.2.3 Steel guardrail m 169.000 923.00 156,000

1.3 Soil Refilling 164,338

1.3.1 Buy soil 3,657.650 34.00 124,360

1.3.2 Works for soil refilling and compacting 100 m3 31.090 1,285.88 39,978

1.4 Model Project 47,355

1.4.1 Manufacturing normal steel model 100 m2 10.000 1,095.68 10,957

1.4.2 Installation and removal of the steel model 100 m2 10.000 3,639.78 36,398 cm = centimeter, m = meter, m2 = square meter, m3 = cubic meter.

34 Appendix 2

TERMS OF REFERENCE FOR EXTERNAL MONITORING

A. Objectives of Resettlement Monitoring and Evaluation

1. In accordance with the requirements of the Asian Development Bank’s (ADB) resettlement policy, it is to undertake external monitoring and evaluation for resettlement of the Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project. Through monitoring the progress, funds mobilization and management of land acquisition, demolition, and resettlement, it is to analyze and compare the changes and restoration of the production and livelihoods of the affected people; and thus, to provide with follow-up evaluation in this connection. In addition to the regular reports (twice a year in resettlement implementation period) respectively submitted to ADB, the Shandong project management office (SPMO), and relevant competent authorities. This process shall also provide information and suggestions to all departments for reference in policy making. Through external monitoring and evaluation (M&E), ADB and the project administrative agencies may have full understanding of the conditions and existing problems of land acquisition, demolition and resettlement, such as timely implementation of the resettlement plan, full achievement of the expected targets as well as the suggestions for improvement etc.

B. Major Contents of Resettlement Monitoring and Evaluation

(i) Baseline survey should include (a) family information, (b) household annual income and expenditure, (c) affected land production and income loss, and (d) affected informal land production and income loss; (ii) M&E of the progress of land acquisition include (a) progress of land acquisition, (b) progress of temporary land occupation, and (c) progress of house demolition and reconstruction; (iii) M&E of funds mobilization and utilization include (a) situation of in-place funds, and (b) utilization of funds (planned and actual); (iv) M&E of living standards of relocated of people include (a) production and living conditions before displacement, (b) production and living conditions after displacement, and (c) comparative analysis and evaluation of the employment and living conditions before and after displacement; and (v) Evaluation of the capacity of resettlement institutions and the situation of public participation and complaints handling.

C. External Monitoring Agency

2. The external monitoring agency in this project will be undertaken by an external institution entrusted by SPMO and accredited by ADB.

D. Organization and Work Division for Resettlement Monitoring and Evaluation

(i) SPMO entrusts external institutions take charge of the investigation, date collection, computing, and analysis about the M&E work, and review the research results; (ii) The external monitoring institutes compose the M&E Group of the Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project, the tasks of which conclude M&E of the resettlement according to the Involuntary Resettlement Policy of ADB; designing an outline of the M&E work; setting the monitoring spot; monitoring field investigation and internal analysis; and preparing

35 Appendix 2

M&E reports; and (iii) SPMO provides convenience on personal and traffic to the independent resettlement M&E institution during the on-the-spot monitoring and investigation.

E. Methods of Resettlement Monitoring and Evaluation

(i) M&E shall adopt the combined methods of site survey, computational analysis, and expert review; (ii) The method of point-area method shall be adopted in the survey. The progress, funds, organizations, and management of resettlement implementation shall be fully explored. While sample survey shall be conducted for the affected persons; (iii) The random sampling method shall be adopted in the sampling survey, while the typical samples shall be followed up for survey. (Samples are taken and categorized among all the affected households involved in the socioeconomic surveys at the project preparatory stages. It is primarily decided that 20–30 households affected by informal farmland occupation are sampled. All of the vulnerable groups if any are surveyed as sample families). The methods of tabular format survey, interview discussion, archives consultation, etc. shall be adopted in the full-coverage survey; and (iv) In addition to the written materials, other materials such as photos, recordings, videos, and articles in-kind shall also be collected.

F. Monitoring and Evaluation Report for Resettlement External Monitoring

3. According to the requirements of ADB and the project schedule, the external M&E agency would submit the M&E report to ADB and SPMO twice a year during resettlement implementation; and will then submit annual evaluation reports for 2 years to ensure resettlement was completed successfully.