Resettlement Plan

August 2016

PRC: Integrated Development of Key Townships in

Central Liaoning

Prepared by Shenbei New District International Financial Institutions Loaned Project Management Office for the Asian Development Bank. This is a revised version of the draft originally posted in June 2012 available on https://www.adb.org/projects/documents/integrated- development-key-townships-central-liaoning-resettle ment-plan-shenbei.

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.

Integrated Development Project of Key Towns of Liaoning Central City Group

Shenbei Subproject

Resettlement Plan (New District WWTP)

Liaoning Province Urban and Rural Construction and Planning Design Institution Shenbei New District International Financial Institutions Loaned Project Management Office

August 2016

Contents

ABBREVIATIONS AND ACRONYMS ...... 1 PREFACE ...... 2 EXECUTIVE SUMMARY ...... 3 1. BRIEF INTRODUCTION ...... 8 1.1 THIS RP ...... 8 1.2 SUBPROJECT DESCRIPTION ...... 8 1.2.1 Project Summary ...... 8 1.2.2 Measures to Minimize Land Acquisition and Resettlement Impact ...... 11 2. SCOPE OF LAND ACQUISITION AND RESETTLEMENT ...... 12 2.1 PROJECT IMPACT ...... 12 2.2 AFFECTED VULNERABLE GROUPS ...... 12 2.3 AFFECTED ETHNIC MINORITIES ...... 12 3. SOCIAL ECONOMIC PROFILES AND IMPACT ANALYSIS ...... 13 3.1 SOCIAL ECONOMIC STATUS OF SHENBEI NEW DISTRICT AND AFFECTED VILLAGES ...... 13 3.1.1 Shenbei New District ...... 13 3.1.2 Affected Villages ...... 13 3.2 SOCIAL ECONOMIC SURVEY ...... 13 3.3 SOCIAL ECONOMIC STATUS OF THE APS ...... 14 3.3.1 Education and Occupation ...... 14 3.3.2 Land Resources ...... 15 3.3.3 Income and Expenditure of APs ...... 15 3.4 GENDER ANALYSIS ...... 16 3.4.1 Gender Difference on Education ...... 16 3.4.2 Gender Difference in Employment and Income ...... 16 3.4.3 Opinions on Resettlement ...... 16 3.5 IMPACT ASSESSMENT ...... 17 3.5.1 Farmland and Income Loss ...... 17 4. PUBLIC PARTICIPATION, CONSULTATION AND GRIEVANCE REDRESS ...... 18 4.1 PUBLIC CONSULTATION DURING THE PROJECT PREPARATION ...... 18 4.1.1 Public Consultation ...... 18 4.1.2 Opinions and Concerns of APs ...... 20 4.2 PUBLIC PARTICIPATION AND CONSULTATION PLAN ...... 22 4.2.1 Public Participation on Subproject Construction ...... 23 4.2.2 Women’s Participation ...... 23 4.3 DISCLOSURE OF RP ...... 23 4.4 APPEAL AND GRIEVANCE REDRESS ...... 24 5. LEGAL FRAMEWORK AND RESETTLEMENT POLICIES ...... 26 5.1 LAWS AND POLICIES RELEVANT TO RESETTLEMENT ...... 26 5.1.1 ADB Policy Requirements ...... 26 5.1.2 Main Policy Documents of Liaoning Province and Shenbei New District ...... 26 5.1.3 Policy Objectives ...... 26 5.2 SUMMARY OF ADB POLICY REQUIREMENTS ON INVOLUNTARY RESETTLEMENT ...... 27

I 5.3 MAIN DIFFERENCES BETWEEN ADB AND PRC POLICIES ...... 28 5.4 COMPENSATION STANDARD ...... 31 5.4.1 Compensation Standards for Permanent Collective Land Acquisition ...... 31 5.4.2 Compensation Standards for Ground Attachments ...... 31 5.5 COMPENSATION ENTITLEMENT ...... 32 6. LIVELIHOOD REHABILITATION PLAN ...... 33 6.1 Compensation Utilization by the Collectives ...... 33 6.2 Compensation Utilization by the Individual ...... 33 7. INSTITUTIONAL ARRANGEMENT ...... 35 7.1 INSTITUTION SETUP ...... 35 7.2 RESPONSIBILITIES ...... 35 7.3 CAPACITY BUILDING ...... 36 7.3.1 Staff Training ...... 36 7.3.2 Measures to Strengthen the Capacity Building ...... 36 8. MONITORING AND EVALUATION ...... 38 8.1 INTERNAL MONITORING...... 38 8.1.1 Contents of Internal Monitoring ...... 38 8.2 EXTERNAL MONITORING AND EVALUATION ...... 39 8.2.1 Procedure ...... 40 8.2.2 Contents of External Monitoring ...... 40 8.2.3 Requirements on Reports ...... 41 9. IMPLEMENTATION SCHEDULE...... 43 9.1 PRINCIPLES FOR RESETTLEMENT IMPLEMENTATION ...... 43 9.2 IMPLEMENTATION SCHEDULE ...... 43 10. BUDGET FOR RESETTLEMENT ...... 45 10.1 BUDGET ...... 45 10.2 FUND FLOW ...... 45 ANNEX I RESETTLEMENT INFORMATION BOOKLET (RIB) ...... 47 ANNEX II TOR FOR EXTERNAL M&E ...... 52 ANNEX III RELEVANT LAWS AND REGULATIONS OF THE PRC ...... 55

II Abbreviations and Acronyms

AAOV Average Annual Output Value ADB Asian Development Bank AP Affected Person CC Community Committee DI Design Institution DMS Detailed Measurement and Survey EA Executive Agency FSR Feasibility Study Report GDP Gross Domestic Product HH Household IA Implementing Agency LSSL Lowest Social Security Line M&E Monitoring and Evaluation MRM Management Review Meeting PMO Project Management Office PPTA Project Preparation Technical Assistance PRA Participatory Rapid Assessment PRC People’s Republic of China RIB Resettlement Information Book RP Resettlement Plan Shenbei New District International Financial Institutions Loaned Project SNDPMO Management Office SNDLRB Shenbei New District Land Resource Bureau SNDLAB Shenbei New District Land Acquisition Bureau SWWC Shenyang Shenbei Water Works Co. Ltd. TA Technical Assistance ToR Terms of Reference VC Village committee

Units of measure m meter m2 Square meter m3 Cubic meter mm millimeter km2 Square kilometer

1 Chinese mu = 666.7 m2

1 Preface

In recent years, with the rapid progress of economic and social development of

Shenbei New District and the new type urbanization, the regional development plan was greatly adjusted, Qingshui and Xinlong New Towns became the focus of development in the New District, and the demand for the construction of two towns is urgent now. Since the implementation period of ADB project is relatively long, during the declaration and implementation stage of the project, the New District implemented

Shantytowns Renovation Project in Qingshui New Town and Qixing Tourism Belt

Project in Xinglong New Town in accordance with the requirements of the state, province and city. At present, the construction of main roads and branch roads in

Qingshui New Town has been basically completed, and the supporting roads in

Xinglong New Town have been constructed. Xinchengzi New Town is the important residential area to afford the rural population transferred from the north of New District, is the “old area” of the District, the roads and wastewater treatment facilities need to be improved, and the demand of the urban residents is strong.

The adjusted scheme is mainly about: there were 47 roads to be constructed in the original construction scheme of Qingshui, which will be 9 roads after research, to construct No.4 Branch Road, No.3 Secondary Main Road (original No.6 to No.8), No.5

Secondary Main Road, No.7 Secondary Main Road, No.8 Secondary Main Road, and

No.1, 2, 3, 30 alley roads. The rest roads in Xinglong and Qingshui New Towns will not be constructed. This RP is about a new WWTP in Xinchengzi New Town, which will be constructed with Loan savings due to road component change. The total investments between the adjusted and the original projects is roughly the same, and the loan amount to apply for the ADB will not change.

2 Executive Summary A. Subproject Description

As part of Integrated Development Project of Key Towns of Liaoning Central City Group, ADB loaned Shenbei New District Subproject, Integrated Development of Shenbei New District Ecological Central Town, the newly proposed Project component is to construct (i) one wastewater treatment plant, and the treatment capacity is 25,000 ton/day, (ii) sewage mains, and (iii) rainwater collection system. The sewage main pipes will be constructed along Yinhe Street, Zhongyang Road and Jinxing Road. The pipe diameter is d1000mm, and the length of which is 2100m; to construct the sewage main pipes between Jinxing Street and the existing d1200mm sewage main pipe, the pipe diameter is d1200mm, and the length of which is 1200m. They will reconstruct 344 rainwater collection wells and newly construct 8650 meters of rainwater connecting pipes and 688 rainwater olivieri. It includes 749 meters of rainwater main pipes, the diameter of which is from d600mm to d1800mm.

B. Scope of Land Acquisition and Resettlement

The new wastewater treatment plant of the project will acquire 16.95 mu of collective lands in San Village of Xinchengpu (former township), which are arable lands.

There will be 13 people of 4 households affected by the land acquisition.

C. Policy Framework

The resettlement objectives are to avoid involuntary resettlement wherever possible; to minimize involuntary resettlement by exploring project and design alternatives; and to enhance, or at least restore, the livelihoods of all affected persons (APs) in real terms relative to pre-project levels. The resettlement is in line with not only Chinese laws and regulations, but also with Asian Development Bank’s (ADB’s) policy requirements stated in the Safeguard Policy Statement (2009). The key laws and regulations of the PRC include: (i) the Land Law (2004); (ii) the Decision on Reinforcing Reform in Land Administration by the State Council (State Council [2004] No. 28); and (iii) directive opinions on improvement of compensation and resettlement system for land acquisition (MLR [2004] No. 238, November 3, 2004). Meanwhile, Liaoning Province and Shenyang City formulated relevant regulations, including: (i) Liaoning Provincial Implementation Regulations of Land Administration Law of the PRC in Liaoning

3 Province (effective on April 1, 2002); (ii) Notice on Implementation of Regional Integrated Land Price in Land Acquisition in Liaoning Province Area Comprehensive Land Price Standards by Liaoning Provincial People's Government Office (LPG [2010] No.2, effective on January 7, 2010); (iii) Notice on the Implementation of Comprehensive Land Price of Land Acquisition Regions in Shenyang City by Shenyang City People’s Government (SCG [2015] No.65); and (iv) Notice on Publishing Compensation Methods for the Reconstruction of Shantytowns (villages in city) and Acquisition of Houses in Shenbei New District (SNDG [2015] No.26).

All these documents have provided essential guidelines for the preparation and implementation of the Resettlement Plan (RP).

Compensation and entitlement policy is designed to cover all compensation for land loss and non-land assets, including assistance to restore or enhance livelihoods of all APs. APs will receive compensation for land and non-land assets according to the latest land acquisition and resettlement policy of Shenyang City Government. Moreover, various special assistances will be made available to severely APs and vulnerable groups. An entitlement matrix is prepared and included in the RP.

D. Resettlement and Rehabilitation

Livelihood rehabilitation of affected people. The initial assessment indicated that there will be 4 rural households losing 100% of their farmlands. The rehabilitation measure is for the village to provide replacement land to the 4 HHs, three months prior to displacement, to let them continue planting flowers.

E. Public Participation and Negotiation

Public participation has become the important part of the RP preparation; from December 2015 to March 2016, a number of consultation meetings were held at the project area, and the agencies involved included: Development and Reform Bureau, Land Resources Administration Bureau, Land and House Acquisition Bureau, and Street Office of Shenbei New District, the affected people and Consulting Institution. In addition, the 4 HHs were targeted and interviewed for sample household socioeconomic survey. During the consultation meetings and interviews, information about the subproject and resettlement planning activities were provided to various stakeholders. Also, opinions and suggestions raised by various stakeholders about the planning and implementation of resettlement activities were collected through these

4 consultation meetings and were incorporated in the RP. Local government and the design institution (DI) will continue their consultation activities during preliminary design and detailed design.

The resettlement information booklet (RIB) was drafted and will be distributed to every affected HH. During RP implementation, local government will follow the detailed process of the information disclosure and notification procedures as specified in the RP. RP implementation will continue to follow the participation approach, and a follow-up participation and consultation plan is included in the RP.

F. Appeals and Grievance Redress

The procedures on appeals and grievance redress have been included in the RIB. Before the land acquisition and resettlement implementation, they will be further explained in the public meetings by the implementing agency (IA) and the relevant resettlement agencies.

APs can appeal on any aspect of resettlement to VC or township office. If they are not satisfied with the decision of the above, they can appeal to Shenbei New District Land Resource Bureau (SNDLRB), PMO, even directly to ADB. The civil division of a people’s court will be the last if necessary. Also, they can take their case to the civil division of a people’s court at any time.

G. Resettlement Budget

The budget for land acquisition and resettlement (LA&R) of WWTP of Shenbei New District Subproject is CNY 4.9724 million accounting for 2.05% of the total investment (CNY 242.0879 million) of the subproject. The budget includes: (i) CNY 0.9323 million for land acquisition; (ii) CNY 2.5725 million for ground attachments; (iii) CNY 0.115 million for M&E, management, and training fees; (iv) CNY 1.0024 million for taxes; and (v) CNY 0.3505 million for contingency.

H. Institutional Arrangements

The Liaoning Provincial Project Management Office (LPMO), under Housing and Urban-Rural Construction Department of Liaoning Province, is the executing agency (EA) of the entire project, and there are seven subprojects including this one. Shenbei New District International Financial Institutions Loaned Project Management Office (SNDPMO) is the implementation agency (IA) of the subproject. There is a

5 resettlement department under the IA to coordinate implementation of resettlement activities including planning, negotiation, financing, implementation, and monitoring the delivery of entitlements in time. Actual LA&R will be carried out by the Shenbei New District Land Acquisition and Resettlement Office (SSLARO) and the Shenbei New District Land Resource Bureau (SNDLRB) with the assistance of township offices and affected villages. The training program is included in the RP for building the capacities of resettlement personnel at various levels.

I. Implementation Schedule

Land acquisition and resettlement is planned to start on September 2016 and complete in June 2018. The resettlement implementation schedule agreed by SNDPMO and ADB can ensure the resettlement activities will be implemented timely and effectively (see Table A0-1).

Table A0-1: Resettlement and Implementation Schedule Responsible Completion No. Resettlement Tasks Target Agency Deadline Consultation and Information 1. Disclosure 1.1 Distribution of RIB among APs 4 copies SNDPMO March 2017 RP distribution to affected villages, 1.2 street offices and relevant 3 copies SNDPMO March 2017 government agencies 2. Capacity Construction 2.1 LA&R department SNDPMO March 2017 2.2 Designation of village authorities SNDPMO March 2017 2.3 Staff training SNDPMO March 2017 3. Final RP based on DMS SNDLAB, March 2017 3.1 DMS SNDPMO and DI 3.2 RP updating SNDPMO and DI March 2017 3.3 Submit Final RP to ADB for approval SNDPMO and ADB March 2017 4. Compensation Agreements SNDLAB, 4.1 Agreements with villages 1 village April 2017 SNDPMO SNDLAB, 4.2 Agreements with affected HHs 4 HHs April 2017 SNDPMO Relocation and Livelihood 5. Rehabilitation SWWC, SNDPMO 5.1 Skill training for APs 8 APs May 2017 and SNDG SNDLAB, 5.2 Allocation of replacement farmland 4 HHs March 2017 SNDPMO and VC 6 M&E Entrusting external monitor, SNDPMO and 6.1 November 2013 preparing internal monitoring plan LPMO

6 Responsible Completion No. Resettlement Tasks Target Agency Deadline External monitor, 100% of land 6.2 Baseline survey SNDPMO and March 2017 loss HHs LPMO SNDPMO and 6.3 Internal monitoring report quarterly 2017 - 2018 LPMO 6.4 External monitoring and evaluation Semi-annual External monitor 2017 - 2018 External monitor, Resettlement completion report for 6.5 SNDPMO and December 2018 the whole Project LPMO 7 Civil Works Commencement of civil works for 7.1 SNDPMO June 2017 components without LA&R impacts Commencement of civil works for 7.2 SNDPMO June 2017 components with LA&R impacts 7.3 Completion of civil works SNDPMO June 2018

J. Monitoring and Report

SNDPMO, with the support of SNDLRB, SSLARO, townships, and villages, will carry out internal monitoring of the RP implementation. SNDPMO will report to the LPMO on the progress of its RP implementation, while the latter will then report to ADB quarterly1. The LPMO will also prepare a resettlement completion report for each subproject for submission to ADB.

Meanwhile, the LPMO will entrust independent monitor to carry out external M&E for this and all other subprojects. The external M&E reports will be submitted to the LPMO and ADB every six months by the external monitoring agency until the resettlement tasks are completed. One evaluation report will also be prepared by the external monitor after LA&R completion. The external monitor will also assist SNDPMO and LPMO to prepare a consolidated resettlement evaluation/completion report for the whole project.

1 LPMO reports to ADB on progress of all subprojects.

7 1. Brief Introduction 1.1 This RP

This RP is prepared based on (i) ADB “Safeguard Policy Statement” (Safeguard 2: involuntary resettlement) (June 2009); (ii) Chinese relevant laws and regulations; and

(iii) Local relevant laws and regulations.

The purpose of the RP is to ensure the APs can benefit from the subproject and that their living standards can be at least restored or improved.

Data and relevant information of this RP were from: (i) FSR (January 2016, draft); (ii) on-site survey (January 2016); (iii) consultations with the affected households; and (iv) the socio-economic survey for the affected people (in March 2016).

1.2 Subproject Description

1.2.1 Project Summary

As part of Integrated Development Project of Key Towns of Liaoning Central City

Group, ADB loaned Shenbei New District Subproject, Integrated Development of

Shenbei New District Ecological Central Town, the newly proposed drainage Project is to construct (i) one wastewater treatment plant, and the treatment capacity is 25,000 ton/day, (ii) sewage mains, and (iii) rainwater collection system. The sewage main pipes will be constructed along Yinhe Street, Zhongyang Road and Jinxing Road. The pipe diameter is d1000mm, and the length of which is 2100m; to construct the sewage main pipes between Jinxing Street and the existing d1200mm sewage main pipe, the pipe diameter is d1200mm, and the length of which is 1200m. They will reconstruct 344 rainwater collection wells and newly construct 8650 meters of rainwater connecting pipes and 688 gullies. It includes 749 meters of rainwater main pipes, the diameter of which is from d600mm to d1800mm.

The new wastewater treatment plant of the project will cause land acquisition and

8 resettlement impact.

Table 1-1: Project Components Land Contents Description Acquisition and Resettlement It is to reconstruct 14 roads, including 4 main roads, 4 secondary main roads, and 6 branch roads. The total length of 1 Road the roads is 16.37km, and the total area of which is 0.2836 No million square meters. It is to set 92 motor vehicle signal lights, and 184 pedestrian crosswalk signal lights. It is to construct one 3×8m simply supported beam bridge, with 2 Bridge the width of 7m; and to demolish one 2×9m beam slab bridge, No with the width of 6m. It is to construct the water supply main pipe on the southern Water 3 extension of Yinhe Street, the pipe diameter is DN600mm, and No Supply the length of which is 4300m. It is to construct the sewage main pipes on Yinhe Street, Zhongyang Road and Jinxing Road, the pipe diameter is d1000, and the length of which is 2100m; to construct the sewage main pipes between Jinxing Street and the existing d1200 sewage main pipe, the pipe diameter is d1200, and the 4 Drainage length of which is 1200m. It is to reconstruct 344 rainwater Yes wells, to construct 8650 meters of rainwater connecting pipes and 688 gullies. It is to construct 749 meters of rainwater main pipes, the diameter of which is from d600mm to d1800mm. It is to construct one wastewater treatment plant, and the treatment capacity is 25000ton/day.

9

Figure 1-1: General Layout of Xinchengzi Wastewater Scheme

10 1.2.2 Measures to Minimize Land Acquisition and Resettlement Impact

The land acquisition and resettlement (LA&R) impacts of the subproject arise from the wastewater treatment component. Through comparative studies the wastewater treatment plant respectively, LA&R impacts have been minimized by SNDPMO and the design institution (DI). Table 1-2 compares the two schemes.

Table 1-2 Comparison between Two Schemes Component Scheme 1 Scheme 2 Remark Newly construct one Expand the existing To choose Scheme 2 Wastewater wastewater treatment plant plant will occupy will reduce farmland Treatment Plant will occupy 30 mu of arable 16.95 mu of arable acquisition by 13.05 mu. lands lands

To reduce the subproject impacts, the following measures are recommended: (i) to minimize impact on the surrounding environment and traffic; (ii) to reduce dust; (iii) to control the construction noise; and (iv) to properly dispose the waste on the construction site. These have been included in the Environment Management Plan.

11 2. Scope of Land Acquisition and Resettlement 2.1 Project Impact

The subproject wastewater treatment plant will permanently acquire 16.95 mu of collective lands of San Village of Xinchengpu (see details in Table 2-1). Table 2-1: Permanent Land Acquisition (Unit: mu) Street Office Permanent Land Occupation (arable land) Affected HHs APs Shenbei 16.95 4 13 Note: The land acquisition area is of Class II.

The project will affect 4 households of farmers who live in Xinchengpu San Village and contracted the flower planting in the village. The contract period is 3 years (newly signed in December 2015), and the lands are owned by the village. The project will affect ground attachments, such as guard rooms, flower greenhouses and others (see details in Table 2-2).

Table 2-2 Affected Infrastructures and Ground Attachments Street Guard Room Flower Greenhouses Flower plants Village Office (m2) (m2) (mu) Xinchengpu San Shenbei 280 7000 10.5 Village

Demolition Photo 1 Demolition Photo 2 2.2 Affected Vulnerable Groups

The vulnerable groups include: (i) for rural people, below the national poverty line of CNY 2,800 CNY per capita per year in 2015; (ii) disabled residents; (iii) elders are living alone older than 60; and (iv) woman-headed HHs. According to the standards above, there is no vulnerable group in the project.

2.3 Affected Ethnic Minorities

There is no ethnic minority affected in the project.

12 3. Social Economic Profiles and Impact Analysis 3.1 Social Economic Status of Shenbei New District and Affected Villages

3.1.1 Shenbei New District

Shenbei New District is located in northern suburbs of Shenyang City, in the middle of “Northeast City Corridor” connecting Dalian, Shenyang, Changchun and Harbin, next to Shenyang City on the south, separated from Tieling and Faku County on the north by Liaohe River and Wanquan River, adjacent to Fushun City and Tieling County on the east, connecting West Liaoning Corridor on the west, and next to Xinmin City and Yuhong District. It is the golden channel connecting Jilin, Heilongjiang and Inner Mongolia provinces and the important hub of "Northeast City Corridor".

Shenbei Street Office is located in the middle of Shenbei New District Shenyang City Liaoning Province. There are 30,400 people, 12 communities, 10 administrative villages, and the area is 94.64 km2. The address of the office is No. 54 Beidou Street. Beijing - Harbin Railway, S2 Expressway, 203 National Highway, Shiwang, Shenyang - Xinmin, and Xinpan Highway, 107 Provincial Highway and other roads go through the district. 3.1.2 Affected Villages

The project will affect one village, and the basic data is detailed in Table 3-1.

Table 3-1 Basic Situation of the Affected Village Income GDP Component (%) Farmland per Street Agricultural Village HH Holding Capita in Office Population Primary Secondary Tertiary (mu) 2015 Sector Sector Sector (CNY) Shenbei San Village Street of 562 1768 3000 15000 20 30 50 Office Xinchengpu Note: since lack of village level statistic data, the income data and proportion of 3 sectors were indicative. Source: Field survey in March 2016. 3.2 Social Economic Survey

Basic situation and resettlement wishes were surveyed for the affected households within the scope in March 2016. The objectives of the survey and consultation are: (i) to collect the socio-economic information of the APs and affected villages; and (ii) to discuss relevant issues of land acquisition and livelihood rehabilitation.

The main part of the survey is the questionnaire survey of affected HHs. Since there

13 are only affected households, the sampling proportion is 100%.

Table 3-2 Surveyed Village and Household Affected Surveyed Sampling Street Office Village HHs HHs Proportion Shenbei Street San Village of 4 4 100% Office Xinchengpu 3.3 Social Economic Status of the APs

3.3.1 Education and Occupation

Table 3-3 presents the education and occupation status of the surveyed HHs.

For education: (i) most of the APs have more than six years of education (76.9% of the surveyed APs over primary school); (ii) no Illiteracy; and (iii) some people have more than nine years of education (23.1% of the surveyed APs over high school).

For employment: (i) there are 7 out of the total 8 surveyed APs (87.5%) are engaged in farming; (ii) only one of the surveyed APs is in private enterprise.

Table 3-3 Education and Occupation Status of the Surveyed Households Item San Village of Xinchengpu Surveyed HHs 4 Population 13 Gender Male Female Student (children) 2 3 Labor 4 4 Retired Total 6 7 Education Illiteracy Primary School 2 1 Middle School 3 4 High School 1 1 College University 1 Total 6 7 Occupation Farming 3 4 Migrant Work Business Worker 1 Total 4 4 Source: social economic survey in March 2016.

Most people had taken the education of primary school and middle school. 23.1% of the surveyed APs have finished or are attending high school or higher level education (one of them is attending college or university education currently).

14 3.3.2 Land Resources

According to the survey, the farmland area per capita in San Village of Xinchengpu is 1.7 mu. Table 3-5 Land Statistics of the Affected Village Unit: mu/household Total Farmland Farmland Area per Farmland Area Street Office Village Area (mu) Household (mu) per Capita (mu) Shenbei San Village of 3000 5.34 1.7 Street Office Xinchengpu

Through the discussion with Shenbei New District Land Resource Bureau (SNDLRB) and the staff of the affected village, the collective lands of Shenbei New District were redistributed and contracted in the second round in 1999, and since then, the lands have not been redistributed anymore. According to the on-site survey, the affected village is located within the urban planning area, the farmland area per capita is limited, and about 70% of the farmers have contracted their lands to the larger planting households and go out for other migrant work. At present, the main crop of the farmland in San Village of Xinchengpu is corn, and the net income is 800 CNY/mu.

3.3.3 Income and Expenditure of APs

Table 3-6, 3-7, and 3-8 presented the economic status of the affected HHs, including annual income, main income sources and expenditure structure.

Table 3-6 Income and Expenditure of the APs in 2015 Per Surveyed Surveyed Per Household (CNY) Village Indicator Capita HHs Person Minimum Maximum Average (CNY) San Village Net Income 50000 200000 127500 39230 of 4 13 Expenditure 20000 50000 35000 10770 Xinchengpu Savings 30000 150000 92500 28460

Table 3-7 Income Sources of the Surveyed Households in 2015 Income Source Proportion (%) Village Farming Other Total San Village of Xinchengpu 95 5 100 Note: “Others” refers to the income from house and land renting, banking and stock investment.

15 Table 3-8 Expenditures of the Surveyed Households in 2015 Expenditure Proportion (%) Culture Transpor Village And tation/ Gifts Food Clothes Education Medical Total Entertain Communi Giving ment cation San Village of 40 8 15 7 2 3 25 100 Xinchengpu 3.4 Gender Analysis

Gender analysis mainly focused on the three aspects: (i) educational difference; (ii) occupational and income difference; and (iii) different opinions on resettlement.

3.4.1 Gender Difference on Education

The survey data in Table 3-3 indicated that the education level of women is slightly higher than men.

3.4.2 Gender Difference in Employment and Income

Considering the potential gender differences on educational and occupational background, the income of women is consequently lower than men (See Table 3-9).

Table 3-9 Women’s Contribution to Annual HH Income in 2015 Town Surveyed Household (HH) Minimum Maximum Average Xinglongtai Town 4 30% 50% 40%

3.4.3 Opinions on Resettlement

Concerns about land acquisition, house demolition and resettlement of different gender were collected and presented in Table 3-10.

According to the survey, the most concerned two problems by both men and women are fair and timely compensations. The second most concern is reemployment, and accounted for 100% of the surveyed women and 50% of the surveyed men. The percentage gap (50%) matched the fact reflected in Chapter 3.4.2 that women mainly stay at home for farming work.

Actually, both men and women share the same worries about education, occupation, income and other benefits.

16 Table 3-10 Opinions on Land Acquisition and Resettlement Male (N=2) Female (N=2) Both (N=4) Item Major Minor Major Minor Major Minor 1 Fair compensation 100% 0% 100% 0% 100% 0% 2 Timely compensation 100% 0% 100% 0% 100% 0% 3 Start a business 50% 50% 50% 50% 50% 50% 4 Cultivation on replacement land 100% 0% 100% 0% 100% 0% 5 Income loss 100% 0% 100% 0% 100% 0% 6 Re-employment 50% 50% 100% 0% 75% 25% 7 Child's education 50% 50% 50% 50% 50% 50% 8 Assistance in resettlement 50% 50% 100% 0% 75% 25% 9 Separation from families and relatives 0% 100% 0% 100% 0% 100%

The surveyed people paid more attention on the land acquisition, and emphasized the replacement lands should be provided for planting flowers. 3.5 Impact Assessment

After analyzing the social-economic status and the concerns of the surveyed households, this chapter assesses the social impact of land acquisition and resettlement. 3.5.1 Farmland and Income Loss

The land acquisition of the project affected San Village of Xinchengpu of Shenbei Street Office in Shenbei New District. The total permanent farmland acquisition is 16.95 mu. The land acquisition of the project affects 13 people from 4 households, and the land loss per capita is 1.36 mu.

Table 3-11 Analysis of Land Acquisition Impact on the Affected Village No. Town/Village San Village of Xinchengpu 1 Quantity of Households 562 2 Population 1768 3 Farmland (mu) 3000 4 Land Acquired (mu) 16.95 5 Farmland per Capita before Land Acquisition 1.7 6 Farmland per Capita after Land Acquisition 1.69 7 Land Loss (%) 0.6 8 Income Loss (%) 0.12

The land loss will not greatly affect the village, but according to the surveyed data by the land department, the impact on the 4 affected households is relatively large, as the affected households will loss 100% of the lands (flexible lands mean the lands belong to the village, not distributed to farmers, and the utilization right belongs to the village). Since the 4 households are mainly focused on farming, losing lands means losing main income sources of the family. So all APs are considered to be severely affected.

17 4. Public Participation, Consultation and Grievance Redress 4.1 Public Consultation during the Project Preparation

According to ADB policies and laws and regulations of the PRC, public participation and consultation work is the starting point and the important procedure for all resettlement activities. APs actively participating in the complete process of resettlement, including design, planning, implementation, preparation of resettlement policy and other important issues, can help prepare a better Resettlement Plan, ensure the smooth implementation of the project and reduce negative impact of the project.

During the preparation of Resettlement Plan, public participation and consultation had been given great attention, various social organizations, government departments, communities and the APs had been fully consulted and encouraged to participate in resettlement. During the implementation of the subproject, various levels of resettlement agencies will further encourage APs to participate in resettlement, production rehabilitation and reconstruction.

4.1.1 Public Consultation

The relevant government agencies and the DI had conducted a series of surveys and consultation meetings during the preparation of RP. Some important survey and consultation activities are presented in Table 4-1.

Figure 4-1: Public Consultations

18 Table 4-1 Records of Consultation Participants Major Discussion/ Date Participants Purpose Results Response Total Female To introduce the subproject; to DI and IA DI, IA, estimate the proposed the October Impact survey to SSLARO, LA&R impacts; survey, and 15 15 5 minimize the LA&R SNDLRB, To discuss the SNDLRB and 2015 impacts SNDSO survey plan and VCs will coordination cooperate. issues. DI, consulting company To understand Project scope expert, To discuss the the policies of was confirmed, SSLARO, policies of land January land acquisition and the land SNDLRB, acquisition and 12 18 5 and resettlement, acquisition SNDSO, Labor resettlement in 2016 as well as the amount will be and Social Shenbei New District social security confirmed by Security and province. policies for APs street office. Bureau, Civil Affairs Bureau To understand APs view, to put forward compensation standards, To conduct rehabilitation Learned about survey; to collect measures, and the socio- basic information resettlement sites, to economic DI, IA, SNDSO, for RP understand the status of the March village 10 2 preparation; to preferred APs and their 9 2016 committee, prepare rehabilitation concerns, and Affected HHs compensation measures of Aps, all were and rehabilitation and to discuss the incorporated in plan advantages and the RP. disadvantages of various compensation approaches. The affected households accepted the RP; the affected Further confirm SNDPMO, households the All were April 7 SNDSO, RP suggested that 8 2 compensation incorporated in 2016 preparation extensive standards and the RP. institute, APs consultation be resettlement plan conducted during the implementation stage. SNDPMO, To confirm the To discuss the Confirm the SNDSO, RP location of the August livelihood location, and preparation 8 2 replaced lands for 3 2016 rehabilitation bring into the institute, and flower planting of the plan of the APs RP. VC APs.

19 In March 2016, the DI conducted surveys for public participation and consultation with the support of SNDPMO, 4 questionnaires were sent out and 4 came back. All the affected people involved in the land acquisition of the subproject were covered.

4.1.2 Opinions and Concerns of APs

The opinions of APs on LA&R are shown in Table 4-2. In general, APs support the project and believe they can be fairly compensated. Their major concerns were presented earlier in Table 3-10.

Table 4-2 Public Consultations with APs Question Answer % I know 100% (1) Do you know “ADB Loaned Development Project of I know a little bit 0% Shenbei New District Ecological Central Town”? I know nothing about it 0% Less than half a year 100% (2) If you know, when: One year ago 0% Two years ago 0% Newspaper 0% TV 0% Village meetings 100% (3) How do you know the subproject? Heard from neighbors, 0% relatives and friends; 0% Social surveyor 0% Less than half a year 100% (4) When did you know that your land or house will be One year ago 0% acquired for the first time? Two years ago 0% Social surveyor 0% Town/village leaders 100% (5) How do you know that your land or house will be disclosed acquired? Town/village meetings 0% Heard from neighbors, 0% relatives and friends 0% Yes 75% No 25% (6) Do you support the subproject? Don’t care 0% I don’t know 0% Yes 75% (7) Do you think that the subproject will increase the No 25% employment opportunities for the local people? I don’t know 0% Yes 100% (8) Do you think the subproject will improve the quality of No 0% water, health and air? I don’t know 0% Yes 100% (9) Do you think the subproject will improve the local No 0% environment? I don’t know 0% Yes 100% (10) Do you think the subproject will promote the local No 0% economic development? I don’t know 0% Yes 100% (11) Do you think the subproject will promote the No 0% development of local tourism? I don’t know 0%

20 Yes 25% (12) Do you think the subproject will stimulate the local No 0% house price rising? I don’t know 75% Yes 75% (13) Do you think the subproject will improve the local No 0% investment environment? I don’t know 25% Yes 50% (14) Do you think the poor people will get benefit from the No 0% subproject? I don’t know 50% Yes 50% (15) Do you think women will get benefit from the No 0% subproject? I don’t know 50% 0% Getting better and better Getting worse and worse 50% (16) How will your life be affected by the subproject? No change I don't know 50% 0% Get benefit 50% (17) Do you think if you will get benefit from the subproject Suffer loss 25% overall? I don't know 25% Yes 100% (18) Are you fully aware of the subproject impacts on your No 0% family? I don’t know 0% I know 0% (19) Do you know the Land Law of the PRC issued in 1998? I know a little bit 25% I know nothing about it 75% Yes 100% (20) Do you think your losses will be compensated fairly? No 0% I don’t know 0% (21) Do you think you will get necessary assistance from Yes 75% relevant agencies in the resettlement process, except for the No 0% compensation? I don’t know 25% Yes 100.0% (22) Your farmland is acquired, and do you agree to take No 0% cash compensation? I don’t know 0% Cash N.A. (23) If your house is demolished, which resettlement mode Cash + House Plot N.A. will you choose? Resettlement House N.A. Note: There were 4 people answered question 1-22, but no one answered question 23.

These meetings and surveys contributed great impact on the preparation of this RP, especially on the establishment of compensation standards, resettlement policies, training programs and livelihood restoration. 100% of the surveyed APs expressed their major concerns as the compensation standards and timely payment.

The land compensation standards of the subproject were developed according to the implementation methods of “Land Administration Law of the PRC” of Liaoning Province, the Notice on implementing Comprehensive Land Price in Land Acquisition Region of Shenyang City, and the consultation with the leaders of the affected village and the representatives of the people who lost lands, and which will be adjusted after the

21 detailed assessment by the independent evaluation company.

4.2 Public Participation and Consultation Plan

Although certain degrees of public consultations have already been carried out, EA/IA and local government fully admitted that more consultation meetings need to be conducted during the implementation of the resettlement and land acquisition. The main activities to be conducted are: (i) publish and distribute Resettlement Information Booklet (RIB) (see Annex 1) which summarizes the policies, entitlements, compensation standards, grievance procedures and resettlement/land acquisition schedule; (ii) further explain and consult with APs on resettlement policies, regulations and compensation standards; (iii) hold formal village meetings to approve compensation payment solution and utilization of unallocated compensation funds, and (iv) conduct the Detailed Measurement Survey (DMS) in the field to specify land/property acquisition on individual affected HH. If the prject impacts will be changed after DMS, the RP will be updated accordingly. Table 4-3 presented the plan of consultation activities.

Table 4-3 Public Consultation Plan Responsible Tasks Time Participants Remark Agency September IA, street/village Hand out the RIB to all the (i) Publicity of RIB All the APs 2016 committee affected households Confirm all assets and landholding losses and list (ii) DMS and September IA, SSLARO, All the APs of final APs; Consultation 2016 VC Explain and discuss entitlements Discuss and finalize compensation standards; September IA, SSLARO, Discuss and determine the (iii) Consultation All the APs 2016 VC location of replacement land and other rehabilitation measures (vi) Disclosure of Final September IA, SSLARO, Provide the final RP to the VC RP 2016 VC affected village committee Draft compensation (v) Signing October IA, SSLARO, contracts; Compensation All the APs 2016 VC Finalize compensation Agreements delivery scheme. (vi) Implementation of Discuss and determine the October IA, SSLARO, Final RP in Village All the APs use of the unallocated 2016 VC Level compensation funds

22

4.2.1 Public Participation on Subproject Construction

To ensure the APs get benefit from the subproject, the public including APs will be encouraged to participate in the construction, and facilitate the construction material supply and employment opportunities.

4.2.2 Women’s Participation

Since the beginning of the subproject preparation, SNDPMO and the local government have been paying special attention to women, the demands of female-headed families, to ensure the women can fully participate in the implementation of resettlement.

In the affected area, women have the same rights and social status as men, and play very important role in the economic development and family life. Especially in the rural area, most of the women stay at home, but the male laborers go to cities to find jobs. Except for the family responsibilities, during the agricultural production, no matter farming or non-farm work, women play very important role. Consequently, women showed more interest and passion in the subproject than men. Many female farmers in the affected villages had been invited to the small consultation meetings to express their ideas and concerns. Except for showing their support to the subproject, they more cared about the accuracy of the practical indicators, the rationality of the compensation standards and worried whether the compensation would be paid in time.

During the preparation of RP, the DI invited female farmers to discuss about issues such as resettlement and livelihood rehabilitation. These consultations are expected to dispel their worries on income sources and traditional production pattern changes, and to make sure that women can equally benefit from the subproject like men.

Moreover, at least one female leader of the village committee will be assigned into the SSLARO. During RP implementation, SNDPMO and local government will further encourage women to participate, especially in resettlement and livelihood rehabilitation. More opportunities and priority on employment will be given to women during subproject construction period.

4.3 Disclosure of RP

Resettlement is an important social activity. Information disclosure should be processed in advance to ensure all the involved people understand the subproject

23 purpose as well as the land acquisition, resettlement, compensation, and the appeal and grievance mechanism procedure. SNDPMO will disseminate the RIB (see annex 1) to all the APs before the resettlement implementation and publicize the RP to all the affected VC/village.

4.4 Appeal and Grievance Redress

The public participation is always encouraged in the process of preparing and implementing of the RP, but there will always be some unforeseeable problems occurring in the process of RP implementation. To effectively solve problems and ensure the project construction and land acquisition are carried out successfully, transparent and effective grievance and appeal channel has been set up. The basic procedures for grievance include the followings:

(i) If any AP is aggrieved by any aspects of the resettlement, he/she can state his/her grievance and appeal to the village committee in oral or in written form. If an oral appeal is made, the village committee will record it on paper and process it. The village committee will make a decision on or resolve it in two weeks.

(ii) The aggrieved AP can state the grievance and appeal to the township office in oral or in written form. The township office will make a decision on or resolve it in two weeks.

(iii) If the aggrieved AP is not satisfied with the decision of the street office, he/she can appeal to SSLARO or SNDLRB after receiving the decision; the SSLARO/SNDLRB will make a decision in two weeks.

(iv) If the aggrieved AP is still not satisfied with the decision of the SSLARO or SNDLRB, he/she will appeal to the Liaoning Project Management Office (EA for all subprojects). After receiving the appeal, the PMO will make a decision in two weeks.

APs can appeal on any aspects of resettlement, including compensation standard and price. APs will be appraised of their rights for lodging appeals during participation in the public meetings and by receiving resettlement information booklet. At the same time, the grievance and appeal process will be publicized among the APs through media. The relevant authorities will sort out the opinions and proposals of the APs and SSLARO and IA will process the information in a timely and effective manner.

The organizations will accept the grievance and appeals of the APs free of charge, and the reasonable expenses incurred there will be covered by contingency of the RP

24 budget.

The aggrieved person may also express grievance to the external monitoring agency, who would then report it to SSLARO or SNDLRB, IA and PMO.

Alternatively, the aggrieved person(s) may submit a complaint to the ADB Project Team to try to resolve the problem. If good faith efforts are still unsuccessful, they may directly submit their complaint to ADB Accountability Mechanism (2012)1.

At any point, the aggrieved person may appeal to the civil division of a people’s court according to the civil court procedure. However, it hoped that the less formal project level GRM will be more beneficial to APs to have their concerns heard and resolved quickly.

1 http://www.adb.org/site/accountability-mechanism/main

25 5. Legal Framework and Resettlement Policies 5.1 Laws and Policies Relevant to Resettlement

The resettlement policies for the project are formulated based on ADB policies and the applicable laws, regulations of China and policies of Liaoning Province.

5.1.1 ADB Policy Requirements

The main ADB policy requirement is the Safeguard Requirements 2: Involuntary Resettlement of the “Safeguard Policy Statement” (2009).

In addition, there are also gender development requirements under ADB “Gender and Development” (June 2003). For this project, (including another 6 subprojects) the separate gender action plan (GAP) is prepared and will be implemented to complement and enhance the implementation of this RP.

5.1.2 Main Policy Documents of Liaoning Province and Shenbei New District

The policies included: i) Liaoning Provincial Implementation Regulations of Land Administration Law of the PRC in Liaoning Province (effective on April 1, 2002); ii) Notice on Implementation of Regional Integrated Land Price in Land Acquisition in Liaoning Province Area Comprehensive Land Price Standards by Liaoning Provincial People's Government Office (LPG [2010] No. 2, effective on January 7, 2010); iii) Notice on the Implementation of Comprehensive Land Price of Land Acquisition Regions in Shenyang City by Shenyang City People’s Government (SCG [2015] No. 65, effective on January 1, 2016); iv) Notice on Publishing Compensation Methods for the Reconstruction of Shantytowns (villages in city) and Acquisition of Houses in Shenbei New District (SNDG [2015] No. 26, effective on July 30, 2015).

5.1.3 Policy Objectives

The policy objectives included:

(i) Avoiding involuntary resettlement wherever possible;

(ii) To minimize involuntary resettlement by exploring project and design alternatives;

26 (iii) To enhance, or at least restore, the livelihoods of all displaced persons in real terms relative to pre-project levels;

(iv) To improve the standards of living of the displaced poor and other vulnerable groups;

(v) Any affected ethnic minorities receive culturally appropriate social and economic benefits.

The laws and regulations above strengthened the protection of the APs whose living conditions may be worsened by the implementation of the subproject.

5.2 Summary of ADB Policy Requirements on Involuntary Resettlement

The compensation for acquired houses, lands and other assets will be calculated according to the replacement costs. The complete replacement cost should include the following elements: (i) fair market value; (ii) transaction cost; (iii) interest accrued; (iv) transitional and restoration cost and (v) other applicable payments, if any.

For the physically relocated persons, the borrower/client will provide: (i) relocation assistance, the relocation land with secured tenure, better houses at resettlement sites with comparable access to employment and production opportunities, and civic infrastructures and community services as required; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) opportunities to derive appropriate development benefits from the project.

For the economically relocated persons, regardless whether or not they are physically relocated, the borrower/client should compensate for the loss of income or livelihoods sources according to the replacement costs. The borrower/client will also provide assistance such as credit facilities, training, and employment opportunities so that they can improve, or at least restore their income-earning capacity, production levels, and standards of living to pre-displacement levels. The borrower/client will also provide opportunities to the relocated persons to derive appropriate development benefits from the project. The borrower/client will compensate economically the relocated people for lost assets such as crops, irrigation infrastructure, and other improvements made to the land (but not for the land) according to the replacement costs. Special attention will be given to ensure women and vulnerable persons.

Involuntary resettlement should be conceived of and executed as part of a

27 development project or program.

The borrower/client should provide the relevant resettlement information, including information from disclosing on ADB website in a timely manner, in an accessible place and in a form and language(s) understandable to affected persons and other stakeholders. For illiterate people, suitable other communication methods will be used.

5.3 Main Differences between ADB and PRC Policies

Table 5-1 compares the policies between ADB and the PRC, and listed the main differences.

28 Table 0-1: Differences of Involuntary Resettlement Policies between ADB and the PRC ADB Policy on Involuntary Measures to Make-up No. Comparison Actual Experience in the PRC Resettlement Difference In practice, the quantity of land Similar. Normally, it can be Efforts were made to minimize acquired in the PRC each year achieved through alternative LAR impacts during FSR and 1 Avoid resettlement if possible. is very large due to the broad options of technical and financial further efforts will be made during scope and use of eminent schemes. detailed design. domain. Similar. People’s Governments at If unavoidable, the provision of the county level and above shall In practice, cash compensation rehabilitation measures should be adopt practical measures to ensure Specific rehabilitation and support 2 is provided rather than implemented to restore incomes and that the farmers whose land is measures are included in this RP. rehabilitation support. livelihoods. acquired shall not be made worse off.

Similar. Provision of compensation and The lost property should be Sometimes, housing appraisal subsidies. Land value is based on a No depreciation based on age will 3 compensated at the replacement include depreciation based on multiple of annual gross output be permitted for house valuations. value. age. value and housing is assessed based on appraisal

APs want to have better The affected persons are fully aware Difference. In the PRC, the information at earlier stages to ADB procedural requirements for of the resettlement and land 4 information disclosure usually takes ensure compensation and consultation and disclosure are acquisition and they are fully place after RP approval. rehabilitation measures are being followed. consulted with. acceptable. The PRC approach is equal treatment based on physical This RP follows ADB policy to Similar. The policy has been trialed losses rather than conduct social impact assessment 5 Social and cultural sensitive before being applied. The PRC is socio-cultural impact. Normally, and formulate measures based on very experienced in this regard. vulnerable groups are assisted degree of impacts, particularly for through existing local women and vulnerable groups. government programs.

29 ADB Policy on Involuntary Measures to Make-up No. Comparison Actual Experience in the PRC Resettlement Difference APs with lack of land or property Some difference. In the PRC, This is one of the most difficult ownership rights should still be people without land ownership for LAR issues to address. eligible for compensation and house plots do not get Practical solutions must be This project doesn’t have this 6 rehabilitation; although ADB does compensated for land, but the found in lieu of local issue. not require compensation for land in structure compensation is regulations. Some such cases, solutions must be found negotiated, if the rates under the municipalities are more to ensure APs are no worse off legal provisions are not adequate. progressive. This RP includes a cut-off date. Two notifications will be given to Sometimes, no cut-off date is APs, and the entitlements will be Confirmation of the compensation 7 Similar. stipulated or it is not adequately disclosed prior to LAR and results entitlement disclosed or enforced. of compensation agreements and fund use made transparent in each village. All compensation and Some differences. Also refer to administrative costs are All the related resettlement costs Article 12 of No.28 Decree. The included. Some rehabilitation and sources of funding are All the resettlement costs should be total resettlement cost of the 8 measures are covered by local specified in the RP. External included into the project cost. national key development project government. There is no monitor costs have been added as should include in the total project requirement or budget for per ADB requirements. cost estimate. external monitoring. Often, the government’s Although the policy states the responsibility for rehabilitation This RP includes a rigorous Project should assist the affected Monitoring and evaluation on ends when compensation is monitoring and evaluation 9 people for their housing and income resettlement paid. There is no follow-up process, including internal and recovery, there is no requirement monitoring to assess whether independent (external) processes. for socio-economic monitoring. APs are better off.

30 5.4 Compensation Standard

5.4.1 Compensation Standards for Permanent Collective Land Acquisition

The compensation standard is prepared according to the laws and regulations in Chapter 5.1.2 as: (i) Liaoning Provincial Implementation Regulations of Land Administration Law of the PRC in Liaoning Province (effective on April 1, 2002); (ii) Notice on Implementation of Regional Integrated Land Price in Land Acquisition in Liaoning Province Area Comprehensive Land Price Standards by Liaoning Provincial People's Government Office (LPG [2010] No. 2, effective on January 7, 2010); (iii) Notice on the Implementation of Comprehensive Land Price of Land Acquisition Regions in Shenyang City by Shenyang City People’s Government (SCG [2015] No. 65, effective on January 1, 2016); and (iv) Notice on Publishing Compensation Methods for the Reconstruction of Shantytowns (villages in city) and Acquisition of Houses in Shenbei New District (SNDG [2015] No. 26, effective on July 30, 2015).

The compensation standard for land acquisition is detailed in Table 5-1. The affected region belongs to Class 2, and the compensation standard is 55,000 CNY/mu.

The relevant taxes and fees are as follow: (i) 28 CNY/m2 for farmland occupation tax; (ii) 10 CNY/m2 for farmland reclamation fee; (iii) 48 CNY/m2 for the utilization fee of new construction land; and (iv) 1.8 CNY/m2 for land acquisition administration fee.

Table 5-1 Compensation Standards for Land Acquisition Total Land Land Land Resettlement Compensation and Ownership Class Compensation Type Subsidy (CNY) Resettlement Subsidy (CNY) (CNY/mu) Farmland Collective 2 34375 20625 55000

5.4.2 Compensation Standards for Ground Attachments

The compensation standards for ground attachments are detailed in Table 5-2.

Table 5-2 Compensation Standards for Ground Attachments Item Unit Compensation Standard Guard Room m2 750 Flower Greenhouse m2 300 Flowering plants mu 25000 Note: Actual standards for various ground attachments will be determined on relevant evaluation and will be compensated according to the replacement price. Here just provides an estimate.

31 5.5 Compensation Entitlement

All the affected people are entitled to get compensations for the affected properties (land, houses, crops or income sources), confirmed during the detailed measurement survey (DMS).

The cut off date for eligibility of entitlement is set on the date the DMS is completed. All the eligible property losses will be compensated. Table 5-3 presents the entitlement matrix.

Table 5-3 Compensation Entitlement Matrix Compensation and Type of Impact Qualification Resettlement Implementation Arrangement Impact Degree Policy Village committee will determine the use of fund. Activities, such as small business operation/training, The land recommendations and assistance compensation to moving into cities, need standard for approval of higher authorities. And farmland is the higher authorities will monitor CNY34,375/mu, and the village-level development plan. the resettlement If it is necessary, the training plan subsidy is Permanent for moving into cities will be a) 1 village CNY20,625/mu. farmland 16.95 mu prepared. b) 4 HHs acquisition The remaining 20% land Because the compensation fund will be used to acquired lands of the improve agriculture production village belong to conditions. flexible lands, all the VC will return the fees of the land compensation remaining contract period to the will be paid for village APs, coordinate the replaced collective lands for flower planting for 4 APs, and select the location at least one month before the acquisition. Objects Guard room: attached 750CNY/m2; Ground on the Property Flower greenhouse: Give notice at least one month attachments ground owner of 300CNY/m2; before the land requisition. loss (see attachments Flowering plants: Table 25000CNY/mu. 2-2).

32 6. Livelihood Rehabilitation Plan

The purpose of livelihood rehabilitation is to ensure all the affected people who lost living means (like farmlands) could at least maintain the living standard and the income level before the implementation of the project.

6.1 Compensation Utilization by the Collectives

According to Implementation Methods of Land Administration Law of the PRC in Liaoning Province and the Notice on Implementation of Regional Integrated Land Price in Land Acquisition in Liaoning Province, the compensation will be mainly used for livelihood and income rehabilitation for those people who have land/property loss. It is impossible to redistribute lands within the suburban planning areas. In short term, agricultural production of affected communities/villages will decrease. Because the acquired lands of the village belong to flexible lands, all the land compensation legally belongs to the by the village collective, all compensation will be mainly used for the improvement of agricultural production, for the welfare of all villagers (including the affected people), and the use of funds will be discussed and decided by villager representatives.

The latest lease agreement between the 4 affected HHs and the village committee was signed in December 2015, and the contract period is 3 years. If the land is acquired within the leasing period, the VC will return the remaining lease rent. The land adjustment to APs will be implemented before March 2017, which will not induce any loss to APs.

6.2 Compensation Utilization by the Individual

The APs will get the compensations for ground attachments as CNY 2.5725 million (CNY 0.643 million per HH). Through the meetings and discussions with the 4 affected HHs, they have been planting flowers over 10 years, and do not possess experience to start other business, so they hope the village can provide lands for them to continue planting flowers. Through the negotiation among SNDPMO, Shenbei Street Office and Village Committee of San Village of Xinchengpu, the Village said that all the houses in the village would be demolished and the registration of lands would be conducted in this year, the VC had allocated all the remained over 100mu of flexible lands to the villagers who have no lands, and there would be no lands for the 4 affected HHs, however, there are many spare flower greenhouses in Xincheng Pu Er Village next to

33 San Village (see photos below), which are 1km from the wastewater treatment plant of the project. SNDSO and leaders of VC will coordinate with Er Village to supply flower greenhouses for the 4 affected HHs to rent, and select the location at least one month in advance, to avoid transition period. Therefore, the income of the APs will not be affected.

34 7. Institutional Arrangement 7.1 Institution Setup

The Liaoning Provincial Project Management Office (LPMO) is the executing agency (EA) of the entire project, and there are seven subprojects including this one. Shenbei New District International Financial Institutions Loaned Project Management Office (SNDPMO) is the implementation agency (IA) of the subproject. Actual LA&R will be carried out by SNDLAB with the assistance of township offices and affected villages. The institutional setup is shown in Figure 7-1.

LPMO

SNDPMO & SWWC (IA)

SNDLAB

Township Offices External Monitoring Agency Hired by LPMO

APs and Affected Villages

.

Figure 7-1: Institutional Arrangement for Resettlement

7.2 Responsibilities

The responsibilities of relevant agencies are detailed in Table 7-2.

35 Table 7-2 Responsibilities of Relevant Agencies Agency Responsibility Coordinating subproject to prepare RP and carry out internal M&E LPMO Submitting implementation progress reports to ADB Entrusting external monitoring agency Preparing RP Organizing public consultation and participation Disclosing resettlement information, including distribution of RIB SNDPMO Supervising resettlement fund payment Coordinating and supervising resettlement activities and progress Carrying out internal M&E and report the PMO Settling conflicts and problems Making relevant LA&R polices Take part in RP preparation Issue land occupation license for the subproject SNDLRB Directing, coordinating and monitoring land acquisition and resettlement activities Settling conflicts and problems Participating in RP preparation, reviewing and approving RP Comforting AP’s grievance SNDLAB Implementing RP Applying relevant resettlement procedures Signing resettlement compensation agreements with APs Assisting IA, SSLARO and SNDLRB to carry out LA&R in a transparent way Township Office Solving conflicts and problems Reporting to SSLARO or SNDLRB on problems without resolution at township Participating in socio-economic survey Participating in preparation of resettlement plan Assisting IA for public consultation, Village Committee Assisting LA&R Office to implement RP Reporting AP’s opinions and suggests to authorities Providing assistance to vulnerable HHs External Monitoring Providing the technical support to land acquisition and resettlement. Agency Monitoring RP implementation reporting to LPMO and ADB. 7.3 Capacity Building

7.3.1 Staff Training

The PMO will organize a series of training sessions for subproject resettlement staff on: (i) ADB’s policy requirements on involuntary resettlement; (ii) national polices; and (iii) successful experience of similar projects in Liaoning and other provinces. The training will start in September 2016.

7.3.2 Measures to Strengthen the Capacity Building

Various measures will be adopted to support the organization construction, to ensure the effective implementation and control of resettlement plan, including:

36 (i) EA and IA will have sufficient funds and equipment;

(ii) EA and IA will establish resettlement related database;

(iii) Coordination meeting will be quarterly organized to strengthen communication.

37 8. Monitoring and Evaluation

To ensure the smooth implementation of the RP and achieve the proposed objectives of resettlement and rehabilitation, RP and project IA should conduct the monitoring and evaluation (M&E). There will be both internal and external monitoring.

8.1 Internal Monitoring

SNDPMO under the supervision of LPMO will carry out internal monitoring with the assistance of SNDRO, street offices, and the affected villages. Internal monitoring will be basically focused on the resettlement progress. The SNDPMO will prepare the detailed internal monitoring plan.

During RP implementation, SNDPMO will report to LPMO quarterly and the latter will then submit an internal monitoring report or progress report that covers all subprojects to ADB quarterly. In such reports, the statistical data of the past three months will be tabulated to reflect progress through comparison of the actual and planned use of the land acquisition, resettlement, and compensation fees.

Upon completion of all resettlement activities and before closing ADB loan account, SNDPMO will prepare the resettlement completion report which will then be forwarded to ADB by LPMO after review and approval.

8.1.1 Contents of Internal Monitoring

Generally, the internal monitoring shall include the followings:

(i) Organization: The establishment and assignment of resettlement and relevant organizations and their personnel assignment and capability development;

(ii) Resettlement policy and compensation rate: The design and implementation of resettlement policy; the actual implementation of compensation rates of various losses caused by the resettlement (permanent land acquisition, temporary land occupation, house relocation, store relocation, the relocation of public institution and enterprise and the relocation of specific facility) and specific identification of whether the rates in the RP is implemented and the causes of any changes occurred;

(iii) Progress of compensation and livelihood rehabilitation: The general schedule and the yearly schedule, the progress of personnel assignment of the resettlement agency, the progress of land acquisition and temporary occupation, the progress of land

38 adjustment and acquisition of resettlement area, and the progress of assignment of replacement land for flower production;

(iv) Resettlement budget and implementation: The amount and time of payment of resettlement fund to various levels, the use and management of resettlement fund of ROs at various levels, the amount and time of payment of compensation fund to the proprietor of affected property (village and group) and the user of affected land, the use and management of compensation fund of the collective land at village level, the supervision and audit of the use of fund;

(v) Production and employment rehabilitation of economically displaced/affected persons: The main measures for the rehabilitation of rural persons, the number of persons, the recovery of the land occupied temporarily and the results of rehabilitation on APs’ incomes and livelihoods;

(vi) The restoration of various specific facilities (power supply, water supply, communication, traffic and pipelines);

(vii) Complaint, appeal, public involvement, negotiation, information publicity and independent monitoring: The channel, procedure and responsible organization of complaining and appealing, the main complaints and appeals and their handling, main content and means of public involvement and negotiation, the effect of public involvement and negotiation, resettlement information brochure and information publicity and their effectiveness, the activities and results of independent monitoring organization;

(viii) Effectiveness and results of handling of relevant grievances raised by APs;

(ix) Existing problems and solutions.

8.2 External Monitoring and Evaluation

The LPMO will entrust independent agency to carry out external M&E for the whole project (i.e., Integrated Development of Key Townships in Central Liaoning), including this subproject. The external monitor will make follow-up monitoring and evaluation of resettlement activities and provide advisory opinions. It will also make follow-up monitoring of the level of production and livelihood rehabilitation of APs, and semi-annual reports to the LPMO and ADB.

The LPMO has separately prepared a TOR for external M&E for all the subprojects (See Annex II) and has already engaged the external monitor.

39 8.2.1 Procedure

The external monitor shall conduct the followings:

(i) Before the resettlement, the living standard baseline survey shall be carried out to document the basic living and production conditions of the displaced persons.

(ii) In the process of the resettlement, the external monitor shall follow up and monitor the implementation of the resettlement, collect the comments and complaints of the displaced persons and report them to SNDPMO and SNDLAB timely. And the external monitor shall submit monitoring report to SNDPMO and ADB.

(iii) The external monitor shall investigate the living conditions of the displaced persons periodically and evaluate the resettlement activities and relevant measures.

(iv) Upon survey, research and discussion with the displaced persons, the external monitor shall propose constructive comments to SNDPMO and SNDLAB to ensure the smooth implementation of the resettlement and fast recovery of the living and production conditions of the displaced persons.

8.2.2 Contents of External Monitoring

8.2.2.1 Land Acquisition

The external monitoring on the land acquisition and production resettlement shall be focused on the following:

(i) Whether the compensation rates of various lands are determined in accordance with relevant laws of the state, and whether they represent adequate replacement cost;

(ii) Whether the VC received the amount of land compensation and resettlement compensation stated in compensation standards;

(iii) Whether the amount of land acquired, compensation rate, compensation amount are publicized in the village, by which means they are publicized and the effectiveness of disclosure and consultation;

(iv) Whether a definite and feasible plan is made for the collective use of land compensation, and whether is implemented effectively;

(v) Whether the plan of the use of land compensation is designed after the collection of the comments of related villagers and how the fund use plan is finally determined;

(vi) How the replacement land is allocated and how the livelihood of the displaced

40 persons is guaranteed.

8.2.2.2 Monitoring of Resettlement Office

Capable, specialized and efficient ROs may assure the success of resettlement. The monitoring on the operation of ROs is an important part of independent monitoring. The means of monitoring are mainly visits to the ROs and the inspection on the working data and record. The main contents of monitoring on ROs include:

(i) Whether the personnel structure of the ROs at various levels meets the requirements of the resettlement;

(ii) Whether necessary working conditions are provided for the ROs at various levels;

(iii) Whether the quality of resettlement personnel meets the requirements of the resettlement;

(iv) Whether adequate resettlement staff training is conducted; and

(v) The internal data and information management of the ROs is established and functions effectively.

8.2.2.3 Living Standard Baseline Survey of Affected Persons

Before the formal commencement of the resettlement, the external monitoring organization shall collect the basic information for the resettlement of the project using sampling survey. Structured questionnaires are adopted for the baseline survey. The sampling proportion for living standard baseline survey is determined to be 100% (only 4 affected households).

The living standard baseline survey of the affected households covers: family structure, production conditions, gross floor area of the houses, annual income of the household, employment situation, annual expenditure of the household, traffic conditions, water supply, power supply and heat supply conditions, living environment, subjective appraisal of production and living conditions.

8.2.3 Requirements on Reports

Internal monitoring and evaluation (M&E) reports will be submitted to LPMO quarterly by SNDPMO while the external M&E reports will be submitted to LPMO and ADB every six months by the external monitoring agency. The external (M&E) reports will be continued once every six months until the resettlement and rehabilitation tasks are completed. These reports will also be submitted to ADB every six months and

41 uploaded onto the ADB website. One annual evaluation report will also be prepared by the external monitoring agency until the project is completed. After the completion of rehabilitation, LPMO should submit to ADB the resettlement completion report. See Table 8-1.

Table 8-1 Reporting Schedule of External Monitoring Preparing work plan of external M&E, including: preparing TOR of survey and August 2016 form, establishing monitoring system, confirming tasks, and confirming monitoring points. September 2016 Baseline survey December 2016 Submitting No.1 Monitoring Report June 2017 Submitting No.2 Monitoring Report December 2017 Submitting No.3 Monitoring Report June 2018 Submitting evaluation/completion report for this subproject

42 9. Implementation Schedule 9.1 Principles for Resettlement Implementation

According to the implementation schedule of the subproject, the construction will commence in October 2016 and be completed in October 2017. To ensure the connection between resettlement activity and project construction, land acquisition and monitoring will commence in July 2016 and be completed in December 2017. The basic implementation principles of resettlement are:

(i) Land acquisition should be completed 3 months before the commencement of construction.

(ii) During resettlement, APs should have opportunities to participate in the resettlement activities. Before the commencement of construction, the scope of land acquisition will be disclosed, and various methods will be used to ensure public consultations and participations.

All types of compensations should be directly paid to the property owners within 3 months from the date of approval of the land acquisition compensation and resettlement plan. No entity or individual should use the compensation fees for properties on their behalf, and such fees should not be hold back during disbursement for any reason.

9.2 Implementation Schedule

The implementation schedule of resettlement activities of the subproject has been completed. The detailed arrangement may be adjusted according to the actual situation. The schedule of key tasks of implementation and monitoring are detailed in Table 9-1.

43 Table 9-1: Resettlement and Implementation Schedule Responsible Completion No. Resettlement Tasks Target Agency Deadline Consultation and Information 1. Disclosure September 1.1 Distribution of RIB among APs 4 copies SNDPMO 2016 RP distribution to affected villages, September 1.2 street offices and relevant government 3 copies SNDPMO 2016 agencies 2. Capacity Construction September 2.1 LA&R department SNDPMO 2016 September 2.2 Designation of village authorities SNDPMO 2016 September 2.3 Staff training SNDPMO 2016 3. Final RP based on DMS SNDLAB, 3.1 DMS August 2016 SNDPMO and DI September 3.2 RP updating SNDPMO and DI 2016 SNDPMO and September 3.3 Submit Final RP to ADB for approval ADB 2016 4. Compensation Agreements SNDLAB, September 4.1 Agreements with villages 1 village SNDPMO 2016 SNDLAB, September 4.2 Agreements with affected HHs 4 HHs SNDPMO 2016 Relocation and Livelihood 5. Rehabilitation SWWC, SNDPMO 5.1 Skill training for APs 8 APs October 2016 and SNDG SNDLAB, September 5.2 Allocation of replacement farmland 4 HHs SNDPMO and VC 2016 6 M&E Entrusting external monitor, preparing SNDPMO and November 6.1 internal monitoring plan LPMO 2013 External monitor, 100% of land September 6.2 Baseline survey SNDPMO and loss HHs 2016 LPMO SNDPMO and 6.3 Internal monitoring report quarterly 2016 - 2017 LPMO 6.4 External monitoring and evaluation Semi-annual External monitor 2016 - 2017 External monitor, Resettlement completion report for the 6.5 SNDPMO and June 2018 whole Project LPMO 7 Civil Works Commencement of civil works for November 7.1 SNDPMO components without LA&R impacts 2016 Commencement of civil works for November 7.2 SNDPMO components with LA&R impacts 2016 7.3 Completion of civil works SNDPMO October 2017

44 10. Budget for Resettlement 10.1 Budget

The budget for resettlement of this subproject is CNY 4.9724 million, accounting for 2.05% of the total investment (CNY 242.0879 million) of the subproject. The detailed budget for land acquisition, demolition and resettlement of the proposed subproject is shown in Table 10-1.

Table 10-1 Resettlement Budget Compensation Item Quantity Unit Cost (104 CNY) Standard (CNY) A. Basic Cost 350.48 I. Land acquisition & resettlement 93.23 1. Land compensation and resettlement 16.95 mu 55000 93.23 subsidy II. Ground attachments 257.25 Guard room 280 m2 750 21.00 Flower greenhouses 7000 m2 300 210.00 Flowering plants 10.5 mu 25000 26.25 B. Other Cost 11.5 1. Monitoring and evaluation (preparation of 1% of A 3.5 monitoring reports and equipment) 2. Management cost for implementing 1% of A 3.5 resettlement (including staff training) 3. Skill training for APs 1.00 4. External monitoring 1% of A 3.5 C. Taxes and Fees 100.21 Arable land occupation fee 16.95 mu 18,667 31.64 Arable land reclaim fee 16.95 mu 6,667 11.3 New construction land using fee 16.95 mu 32000 54.24 Management fee for land acquisition 16.95 mu 1200 2.03 Land mapping fee 16.95 mu 1.00 Subtotal (A+B+C) 462.19 D. Contingency 10% of A 35.05 Total (A+B+C+D) 497.24

10.2 Fund Flow

Shenbei New District International Financial Institutions Loaned Project Management Office will be responsible for the payment of compensations as the implementation agency. The compensations must be paid within 3 months since APs signed their compensation agreements. Figure 10-1 shows the compensation fund flow.

45

Shenbei New District Government Shenbei New District Finance Bureau

SNDPMO (IA)

SNDLAB

APs Owners of Land Taxes Affected Village Committee Infrastructur and Fees es/Ground Collecting Attachments Agencies

Figure 10-1: Compensation Fund Flow

46 Annex I Resettlement Information Booklet (RIB)

(Name of AP)

ADB Loaned the Development Project of Shenbei New District Ecological Central Town is the important part of Integrated Development Project of Key Towns of Liaoning Central City Group, the construction of which will cause certain impact on your family or institute. The purpose of sending you the RIB is to let you know the basic information, impacts on your family, the compensation standard, resettlement policies and appeals and grievance mechanism of the subproject.

1. Project Summary

The project consists of 5 components: (1) road (2) bridge (3) water supply (4) drainage and (5) lighting.

1. Road Project: It is to reconstruct 14 roads, including 4 main roads, 4 secondary main roads, and 6 branch roads. The total length of the roads is 16.37km, and the total area of which is 0.2836 million square meters. It is to set 92 motor vehicle signal lights, and 184 pedestrian crosswalk signal lights.

2. Bridge Project: It is to construct one 3×8m simply supported beam bridge, with the width of 7m; and to demolish one 2×9m beam slab bridge, with the width of 6m.

3. Water Supply Project: It is to construct the water supply main pipe on the southern extension of Yinhe Street, the pipe diameter is DN600mm, and the length of which is 4300m.

4. Drainage Project: It is to construct the sewage main pipes on Yinhe Street, Zhongyang Road and Jinxing Road, the pipe diameter is d1000, and the length of which is 2100m; to construct the sewage main pipes between Jinxing Street and the existing d1200 sewage main pipe, the pipe diameter is d1200, and the length of which is 1200m. It is to reconstruct 344 rainwater wells, to construct 8650 meters of rainwater connecting pipes and 688 gullies. It is to construct 749 meters of rainwater main pipes, the diameter of which is from d600mm to d1800mm. It is to construct one wastewater treatment plant, and the treatment capacity is 25000ton/day.

5. Road Lighting Project: It is to construct one dedicated box type transformer for street lamps, 1.48km of power cables, 62 LED street lamps, and 60 solar street lights.

47 2. Project Impact

The new wastewater treatment plant of the project will acquire 16.95mu of collective lands in San Village of Xinchengpu, which are arable lands.

There will be 13 people of 4 households affected by the land acquisition.

3. Compensation Standard

The compensation standard is prepared according to the laws and regulations below: (i) Liaoning Provincial Implementation Regulations of Land Administration Law of the PRC in Liaoning Province (effective on April 1, 2002); (ii) Notice on Implementation of Regional Integrated Land Price in Land Acquisition in Liaoning Province Area Comprehensive Land Price Standards by Liaoning Provincial People's Government Office (LPG [2010] No.2, effective on January 7 2010); (iii) Notice on the Implementation of Comprehensive Land Price of Land Acquisition Regions in Shenyang City by Shenyang City People’s Government (SCG [2015] No.65, effective on January 1 2016); and (iv) Notice on Publishing Compensation Methods for the Reconstruction of Shantytowns (villages in city) and Acquisition of Houses in Shenbei New District (SNDG [2015] No.26, effective on July 30 2015).

Table 1 Compensation Standard for Land Acquisition Land Total Land Compensation and Land Resettlement Region Compensation Resettlement Subsidy Type Subsidy (CNY) (CNY) (CNY/mu) Arable 2 34375 20625 55000 Land

Table 2 Compensation Standard for Ground Attachments Item Unit Compensation Standard Guard Room m2 750 Flower Greenhouse m2 300 Flower mu 25000

4. Project Implementation Schedule

48 Table 3: Implementation Schedule Responsible No. Resettlement Tasks Target Completion Deadline Agency Consultation and Information 1. Disclosure 1.1 Distribution of RIB among APs 4 copies SNDPMO March 2017 RP distribution to affected 1.2 villages, street offices and 3 copies SNDPMO March 2017 relevant government agencies 2. Capacity Construction 2.1 LA&R department SNDPMO March 2017 2.2 Designation of village authorities SNDPMO March 2017 2.3 Staff training SNDPMO March 2017 3. Final RP based on DMS SNDLAB, March 2017 3.1 DMS SNDPMO and DI 3.2 RP updating SNDPMO and DI March 2017 Submit Final RP to ADB for March 2017 3.3 SNDPMO and ADB approval 4. Compensation Agreements SNDLAB, 4.1 Agreements with villages 1 village April 2017 SNDPMO SNDLAB, 4.2 Agreements with affected HHs 4 HHs April 2017 SNDPMO Relocation and Livelihood 5. Rehabilitation SWWC, SNDPMO 5.1 Skill training for APs 8 APs May 2017 and SNDG Allocation of replacement SNDLAB, 5.2 4 HHs March 2017 farmland SNDPMO and VC 6 M&E Entrusting external monitor, SNDPMO and 6.1 preparing internal monitoring November 2013 LPMO plan 100% of External monitor, 6.2 Baseline survey land loss SNDPMO and March 2017 HHs LPMO SNDPMO and 6.3 Internal monitoring report quarterly 2017 - 2018 LPMO External monitoring and 6.4 Semi-annual External monitor 2017 - 2018 evaluation External monitor, Resettlement completion report 6.5 SNDPMO and December 2018 for the whole Project LPMO 7 Civil Works Commencement of civil works 7.1 for components without LA&R SNDPMO June 2017 impacts Commencement of civil works 7.2 for components with LA&R SNDPMO June 2017 impacts 7.3 Completion of civil works SNDPMO June 2018

49 5. Rights and Obligations of APs

(i) Rights

APs can obtain all kinds of deserved compensation according to the compensation standard above. APs can raise their opinions and suggestions to SSLARO and village committee on the cardinal amount of compensation, compensation standard and compensation payment schedule and so on. SSLARO must give their reply to APs timely according to the appeal and grievance mechanism in the subproject.

(ii) Obligations

APs should cooperate with the land acquisition and resettlement activities in the subproject.

6. Grievance Mechanism

The public participation is always encouraged in the process of preparing and implementing of the RP. There will always be some unforeseeable problems occurring in the process of RP implementation. In order to solve problems effectively and ensure the project construction and land acquisition are carried out successfully, a transparent and effective grievance and appeal channel has been set up. The basic procedures for grievance include the followings:

(i) If any AP is aggrieved by any aspects of the resettlement, he/she can state his/her grievance and appeal to the village committee in oral or in written form. If an oral appeal is made, the village committee will record it on paper and process it. The village committee will make a decision on or resolve it in two weeks.

(ii) The aggrieved AP can state the grievance and appeal to the township office in oral or in written form. The township office will make a decision on or resolve it in two weeks.

(iii) If the aggrieved AP is not satisfied with the decision of the street office, he/she can appeal to SNDLRB after receiving the decision; the SNDLRB will make a decision in two weeks.

(iv) If the aggrieved AP is still not satisfied with the decision of SNDLRB, he/she will appeal to LPMO. After receiving the appeal, LPMO will make a decision in two weeks.

(v) If the AP is still dissatisfied with the above decisions, he/she will appeal to the civil division of a people’s court according to the civil court procedure.

50 APs can appeal on any aspects of resettlement, including compensation standard and price. APs will be appraised of their rights for lodging appeals during participation in the public meetings and by receiving resettlement information booklet. At the same time, the grievance and appeal process will be publicized among the APs through media. The relevant authorities will sort out the opinions and proposals of the APs and SSLARO and IA will process the information in a timely and effective manner.

The organizations will accept the grievance and appeals of the APs free of charge, and the reasonable expenses incurred there will be covered by contingency of the RP budget.

The aggrieved person may also express grievance to the external monitoring agency, who would then report it to SSLARO or SNDLRB, IA and PMO. Alternatively, the aggrieved person(s) may submit a complaint to the ADB’s Project Team to try to resolve the problem. If good faith efforts are still unsuccessful, they may directly submit their complaint to ADB Accountability Mechanism (2003)4.

At any point, the aggrieved person may appeal to the civil division of a people’s court according to the civil court procedure. However, it hoped that the less formal project level GRM will be more beneficial to APs to have their concerns heard and resolved quickly.

4 http://www.adb.org/site/accountability-mechanism/main

51 Annex II TOR for External M&E

1. Purpose

According to the ADB Policy on Involuntary Resettlement, it is need to conduct external monitoring for the demolition and resettlement of the proposed subproject. Through the inspection and tracking for the progress of demolition and resettlement and the management of funds, the changes in living standard of the affected people before and after the project will be analyzed and compared. The external monitoring agency should submit the report, information and suggestions to ADB, EA and the related departments regularly (twice a year during the implementation period), to fully understand if the land acquisition and resettlement work is implemented on schedule and is accordance with the quality standard, and point out existing issues, and propose suggestions for improvement.

2. External Monitoring Tasks

(1) The external monitoring of land acquisition progress includes: i) Land acquisition progress; ii) Temporary land occupation progress; iii) Demolition and resettlement of the affected households; iv) Restoration of infrastructures.

(2) The external monitoring of availability and payment of funds includes: i) Availability of funds; ii) Utilization of funds (planned and actual).

(3) The external monitoring of the living standard of the AP includes: i) Production level and living standard of AP before LA&R; ii) Production level and living standard of AP after LA&R; iii) Comparison of production level and living standard of AP before and after LA&R.

(4) The external monitoring of the implementing agencies, public participation, and capacity in complaints and appeals.

3. External Monitoring Agency

The external resettlement monitoring and evaluation work of the project should be

52 undertaken by the external monitoring agency entrusted by the PMO and accepted by ADB.

4. Organization of Monitoring and Evaluation i. The LPMO will entrust the external monitoring agency to conduct the survey, data collection and computational analysis for monitoring and evaluation, and to review the corresponding findings. ii. The external monitoring agency will set up one “resettlement monitoring and evaluation taskforce of the Project”, to monitor and evaluate the resettlement work of the project, to prepare the monitoring and evaluation outline, to select monitoring targets, to conduct on-site survey, monitoring and in-house analysis, and to prepare resettlement monitoring and evaluation reports according to the ADB Policy on Involuntary Resettlement. iii. During the on-site monitoring and survey by the taskforce, the PMO and IA should offer assistance in staffing and traffic.

5. Methods of Monitoring and Evaluation i. Adopting the method of combining on-site survey, computational analysis and comprehensive evaluation ii. The complete on-site survey will be conducted for the progress, funds, organization and management, and sampling survey will be conducted for the relocated households. iii. Tracking surveys will be conducted for the fixed typical samples based on random sampling. Sampling rates: 10-20% of severely affected HHs and a number of others, such as vulnerable HHs. iv. The complete survey includes structural survey (questionnaire survey), discussion and literature research. v. Tracking surveys will be conducted for the changes in living standard, livelihoods and income through the baseline survey questionnaire. This is the basis to determine whether resettlement has been successfully completed. vi. Except the written documents, photos, audio and video records, and real objects shall also be collected.

53 6. Monitoring Indicators

The baseline survey and the follow up monitoring and post evaluation will cover but not limited to the following socioeconomic indicators: i. Education level of adults by gender ii. Occupation of adults by gender iii. Land area by type iv. House type (quality) v. Housing area vi. Income by source vii. Expenditure by type viii. Major assets ownership ix. Cropping pattern (cultivated area of each crop)

7. Report of External Monitoring and Evaluation

The external monitoring agency should submit the report of external monitoring and evaluation to the LPMO and ADB semiannually. Before the completion of the project and within at least two years since the land acquisition and resettlement work is finished, the external monitoring agency should prepare the monitoring and evaluation annual report annually. The external monitor will also prepare the consolidated resettlement evaluation/completion report for the whole project.

Reporting Schedule of External Monitoring Preparing work plan of external M&E, including: preparing TOR of survey and August 2016 form, establishing monitoring system, confirming tasks, and confirming monitoring points. September 2016 Baseline survey December 2016 Submitting No.1 Monitoring Report June 2017 Submitting No.2 Monitoring Report December 2017 Submitting No.3 Monitoring Report June 2018 Submitting evaluation/completion report for this subproject

8. Monitoring Budget

The monitoring budget for each subproject is 1% of the basic cost (compensation budget). The total monitoring budget for all subprojects is about CNY 0.8 million, including CNY 35000 for this subproject.

54 Annex III Relevant Laws and Regulations of the PRC

(1) The regulations in Liaoning Province on the Implementation of Land Administration Law of the PRC

Article 23: The compensation standards for farmland and the resettlement subsidy are:

1. The land compensation standards are 6-7 times of AAOV calculated on the basis of three years preceding such land acquisition for the urban infrastructure subprojects listed as one of public purpose projects, if land to be acquired lies in outside of urban planning area. While the land compensation standards are 8-10 times of AAOV calculated on the basis of three years preceding such land acquisition for other purposes of the subproject.

2. The resettlement subsidies for each person needing to be resettled are 4-6 times of AAOV calculated on the basis of three years preceding such farmland acquisition. However, the maximum resettlement subsidies shall not exceed 15 times calculated on the basis of three years preceding such farmland acquisition.

In case of land compensation and resettlement subsidies provided pursuant to the provisions of the above-mentioned Article cannot maintain their original living standard, after approval of provincial people’s government, the total of land compensation and resettlement subsidies can be increased, however, shall not exceed 30 times of the average annual output value calculated on the basis of three years preceding such farmland acquisition.

Article 24: The land compensation and resettlement subsidies for other types/purpose of land should be identified on the basis of the following stipulation:

1. For types of forestry land, grassland, reed pond and breeding aquatics pond and land for water resources infrastructures, the land compensation standards should be 4-6 times of AAOV of adjacent dry land calculated on the basis of three years preceding such land acquisition.

2. For lands used by public facilities owned by town/township or village, township enterprises and rural house plot, the land compensation standards are 5-7 times of AAOV of adjacent dry land calculated on the basis of three years preceding such land acquisition.

3. For lands of idle land, waste stack, wasteland, waste plain and unutilized land, the

55 land compensation standards are 2-3 times of AAOV of adjacent dry land calculated on the basis of three years preceding such land acquisition.

4. The compensation for village threshing floor and bleachery and etc. are based on the compensation standards for their original types of land.

As for forestry land, grassland, reed pond, breed aquatics pond and land for water resources infrastructures, and rural construction land, resettlement subsidies for per agricultural person shall be 4 times the average annual output value calculated on the basis of three years preceding such land acquisition. However, the maximum resettlement subsidies for cultivated land per hectare shall not exceed 10 times of the average annual output value calculated on the basis of three years preceding such land acquisition.

No resettlement subsidies are provided for the land acquisition of idle land, waste stack, wasteland, waste plain, and unutilized land since no agricultural taxes are levied to these lands.

Article 25: The compensation standards for appurtenances and young crops are:

1. The appurtenances are compensated based on their values and actual costs;

2. The compensation standards for young crops are calculated based on the output value of single season cropping.

Any trees, young crops planted and the buildings are not entitled to be compensation after the land acquisition notice publicized.

Article 45: The state-owned land rights or the collective land rights could be taken back subject to the approval of the People’s Government under the conditions of serving public purposes, the old city rebuilding as part of implementing the urban planning and construction of town/village public infrastructures.

However, the original landowners should be compensated. The specific compensation standards are made based on the local actual conditions.

56 (2) The regulations in the Notice on Implementing Land Acquisition Area Comprehensive Land Price standard issued by Liaoning Provincial People's Government Office

1. This land acquisition area comprehensive land price standard refers to the summation of the compensation fees and resettlement subsidy fee for acquiring general agricultural land; the other land type should be adjusted according to the following coefficient based on the comprehensive land price standard: constructive land 1.0; unused land 0.8. Any units or individuals are not allowed to change or reduce the land acquisition area comprehensive land price standard without approval.

2. If there are fixtures and young crops on the acquired land, there should be other compensation for the owners. The detailed compensation standard (except for the compensation for tress) should be prepared by the local municipal government, and reported to the provincial government for record. The compensation for young crops should be calculated according to the output value of seasonal crops while implementing land acquisition.

3. Acquiring peasant family land according to law, 80% of land acquisition compensation fee is owned by farmers, 20% owned by the collective economic organizations; acquiring the land not contracted or contracted in other ways by the collective economic organizations, land acquisition compensation fee is owned by the collective economic organizations, distributed or used according to law.

4. If the subproject construction or geological survey need to use country collective or state-own lands temporarily for 1 year, the compensation standard account for 15% of the land acquisition area comprehensive land price; the compensation standard account for 20% of the land acquisition area comprehensive land price for 2 years.

5. If the subproject construction is approved to utilize state-own agricultural and unused lands, the compensation for which should refer to the comprehensive land price of collective agricultural and unused lands within the area.

57