Resettlement Plan

August 2019

People’s Republic of : Integrated Rural-Urban Infrastructure Development Project—Xiangdong Zhangli River (Dacheng- Quanhulong) Improvement Subproject

Prepared by the Government (XDG) and Pingxiang Project Management Office (PMO) for the Asian Development Bank.

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

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

ADB-financed

Xiangdong District Zhangli River (Dacheng- Quanhulong) Improvement Subproject

Resettlement Plan

Xiangdong District Government (XDG) Pingxiang Project Management Office (PMO) August 2019

Contents 1 OVERVIEW OF THE SUBPROJECT ...... 1

1.1 BACKGROUND ...... 1 1.2 COMPONENTS ...... 1 1.3 MEASURES TO REDUCE RESETTLEMENT ...... 1 2 IMPACTS OF THE SUBPROJECT ...... 4

2.1 TYPES OF IMPACTS...... 4 2.2 SURVEY METHOD AND PROCESS ...... 4 2.3 IMPACTS OF THE SUBPROJECT ...... 4 2.3.1 Permanent LA...... 6 2.3.2 Temporary Land Occupation ...... 7 2.3.3 Demolition of Rural Non-residential Properties ...... 7 2.3.4 Other Temporary Impacts ...... Error! Bookmark not defined. 2.3.5 Affected Vulnerable Groups ...... 7 2.3.6 Affected Infrastructure and Ground Attachments ...... 8 3 SOCIOECONOMIC PROFILE OF THE SUBPROJECT AREA ...... 9

3.1 AFFECTED DISTRICT ...... 9 3.2 AFFECTED TOWNSHIPS ...... 9 3.2.1 Xiangdong Town ...... 9 3.2.2 Xiashankou Sub-district ...... 10 3.3 AFFECTED VILLAGES ...... 10 3.3.1 Ganquan Village ...... 10 3.3.2 Wuli Village ...... 10 3.3.3 Zhangli Village ...... 10 3.3.4 Xincun Community ...... 11 3.4 SAMPLING SURVEY ON AHS ...... 11 3.4.1 Age Distribution ...... 11 3.4.2 Educational Level ...... 11 3.4.3 Productive Resources ...... 12 3.4.4 Labor Employment ...... 12 3.4.5 Composition of Sample Population ...... 13 3.4.6 Annual Household Income and Expenditure ...... 14 3.4.7 Women ...... 15 4 POLICY FRAMEWORK AND COMPENSATION RATES ...... 16

4.1 LAWS, REGULATIONS AND POLICIES APPLICABLE TO RESETTLEMENT ...... 16 4.1.1 State Laws and Regulations ...... 16 4.1.2 Local Regulations and Policies ...... 16 4.1.3 ADB Policies ...... 17 4.1.4 ADB Policy on Involuntary Resettlement ...... 17 4.2 MAIN DIFFERENCES BETWEEN THE ADB POLICY AND PRC LAWS ...... 17 4.3 ELIGIBILITY FOR COMPENSATION AND CUT-OFF DATE ...... 24 4.4 COMPENSATION RATES ...... 24 4.4.1 LA ...... 24 4.4.2 Temporary Land Occupation ...... 25 4.4.3 Demolition of Non-residential Properties ...... 25 4.4.4 Ground Attachments ...... 25 4.4.5 Vulnerable Groups ...... 25 4.4.6 Rates of Other Costs ...... 25 4.5 ENTITLEMENT MATRIX ...... 27

1 5 PRODUCTION AND INCOME RESTORATION ...... 29

5.1 OBJECTIVE OF RESETTLEMENT ...... 29 5.2 PRINCIPLES FOR RESETTLEMENT ...... 29 5.3 LA IMPACTS AND RESETTLEMENT PROGRAM ...... 29 5.3.1 LA Impact Analysis ...... 29 5.3.2 Income Resettlement Program ...... 32 5.4 RESTORATION PROGRAM FOR TEMPORARY LAND OCCUPATION ...... 33 5.5 RESETTLEMENT PROGRAM FOR NON-RESIDENTIAL PROPERTIES ...... 33 5.6 PROTECTION OF WOMEN’S RIGHTS AND INTERESTS ...... ERROR! BOOKMARK NOT DEFINED. 5.7 RESTORATION MEASURES FOR VULNERABLE GROUPS ...... 33 5.8 RESTORATION PROGRAM FOR INFRASTRUCTURE AND ATTACHMENTS ...... ERROR! BOOKMARK NOT DEFINED. 6 PUBLIC PARTICIPATION AND GRIEVANCE REDRESS ...... 34

6.1 PUBLIC PARTICIPATION AT THE PREPARATION STAGE ...... 34 6.2 PUBLIC PARTICIPATION AT THE IMPLEMENTATION STAGE ...... 36 6.3 GRIEVANCE REDRESS MECHANISM ...... 36 6.4 GRIEVANCE REDRESS CHANNELS AND PROCEDURE ...... 37 6.5 CONTACT INFORMATION FOR GRIEVANCE REDRESS ...... 38 7 RESETTLEMENT BUDGET ...... 39

7.1 RESETTLEMENT BUDGET...... 39 7.2 ANNUAL INVESTMENT PLAN ...... 40 7.3 FUNDING SOURCES AND DISBURSEMENT ...... 40 7.3.1 Disbursement of Resettlement Funds ...... 40 7.3.2 Management of Resettlement Funds ...... 40 8 ORGANIZATIONAL STRUCTURE ...... 41

8.1 RESETTLEMENT AGENCIES ...... 41 8.2 ORGANIZATIONAL RESPONSIBILITIES ...... 41 8.3 STAFFING AND EQUIPMENT ...... 42 8.3.1 Staffing ...... 42 8.3.2 Equipment ...... 43 8.4 MEASURES TO STRENGTHEN INSTITUTIONAL CAPACITY ...... 43 9 RESETTLEMENT IMPLEMENTATION SCHEDULE ...... 45

9.1 WORK BEFORE RESETTLEMENT IMPLEMENTATION (RP UPDATING) ...... 45 9.2 WORK DURING RESETTLEMENT IMPLEMENTATION ...... ERROR! BOOKMARK NOT DEFINED. 9.3 RESETTLEMENT IMPLEMENTATION SCHEDULE ...... 45 10 M&E...... 47

10.1 INTERNAL MONITORING ...... 47 10.1.1 Purpose ...... 47 10.1.2 Agencies and Staff ...... 47 10.1.3 Scope ...... 47 10.1.4 Reporting ...... 47 10.2 EXTERNAL MONITORING...... 48 10.2.1 Scope and Methods ...... 48 10.2.2 External M&E Indicators ...... 49 10.2.3 Reporting ...... 50 APPENDIXES ...... 51

APPENDIX 1 REPLY OF THE JIANGXI PROVINCIAL DEVELOPMENT AND REFORM COMMISSION ON THE FEASIBILITY STUDY REPORT OF THE SUBPROJECT ...... 51 APPENDIX 2 GENERAL LAYOUT OF THE SUBPROJECT ...... 52

2 APPENDIX 3 REQUEST FOR INSTRUCTIONS ON ESTABLISHING THE SUBPROJECT CONSTRUCTION HEADQUARTERS AND REPLY ...... 53 APPENDIX 4 INTERVIEW MINUTES ...... 54 APPENDIX 5 NOTICE OF THE JIANGXI PROVINCIAL GOVERNMENT ON ADJUSTING UNIFORM AAOV RATES AND LOCATION-BASED COMPOSITE LAND PRICES FOR LAND ACQUISITION ...... 56 APPENDIX 6 DETAILED RESETTLEMENT BUDGET ...... 58

3 List of Tables TABLE 1-0-1 SCOPE OF CONSTRUCTION AND RESETTLEMENT IMPACTS OF THE COMPONENTS ...... 3 TABLE 2-1 AFFECTED AREA ...... 5 TABLE 2-2 SUMMARY OF RESETTLEMENT IMPACTS ...... 5 TABLE 2-3 SUMMARY OF LA IMPACTS (BY COMPONENT) ...... 6 TABLE 2-4 SUMMARY OF LA IMPACTS (BY GROUP) ...... 6 TABLE 2-5 SUMMARY OF TEMPORARY LAND OCCUPATION ...... 7 TABLE 2-6 SUMMARY OF DEMOLISHED NON-RESIDENTIAL PROPERTIES ...... 7 TABLE 2-7 SUMMARY OF AFFECTED VULNERABLE GROUPS...... 7 TABLE 2-8 SUMMARY OF AFFECTED INFRASTRUCTURE AND ATTACHMENTS ...... 8 TABLE 3-1 SOCIOECONOMIC PROFILE OF XIANGDONG DISTRICT (2018) ...... 9 TABLE 3-2 SOCIOECONOMIC PROFILE OF XIANGDONG TOWN ...... 9 TABLE 3-3 SOCIOECONOMIC PROFILE OF XIASHANKOU SUB-DISTRICT ...... 10 TABLE 3-4 AGE DISTRIBUTION OF SAMPLE POPULATION ...... 11 TABLE 3-5 EDUCATIONAL LEVELS OF SAMPLE POPULATION ...... 12 TABLE 3-6 LABOR EMPLOYMENT OF SAMPLE POPULATION ...... 12 TABLE 3-7 COMPOSITION OF SAMPLE POPULATION ...... 13 TABLE 3-8 HOUSEHOLD INCOME OF SAMPLE POPULATION ...... 14 TABLE 3-9 HOUSEHOLD EXPENDITURE OF SAMPLE POPULATION ...... 15 TABLE 3-10 SUMMARY OF WOMEN’S ECONOMIC ACTIVITIES ...... 15 TABLE 4-1 LA COMPENSATION RATES ...... 24 TABLE 4-2 YOUNG CROP COMPENSATION RATES ...... 24 TABLE 4-3 COMPENSATION RATES FOR NON-RESIDENTIAL PROPERTIES ...... 25 TABLE 4-4 COMPENSATION RATES FOR GROUND ATTACHMENTS ...... 25 TABLE 4-5 SUMMARY OF LA TAXES AND FEES ...... 25 TABLE 4-6 ENTITLEMENT MATRIX ...... 27 TABLE 5-1 LA IMPACT ANALYSIS ...... 31 T A B L E 5- 2 LAND LOSS RATES OF AHS ...... 31 TABLE 5-3 SUMMARY OF LA LOSSES AND COMPENSATION...... 31 TABLE 5-4 SKILLS TRAINING OFFERED BY THE PROJECT ...... 32 TABLE 6-1 PUBLIC PARTICIPATION AT THE PREPARATION STAGE ...... 35 TABLE 6-2 PUBLIC PARTICIPATION PLAN ...... 36 TABLE 6-3 REGISTRATION FORM OF GRIEVANCES AND APPEALS...... 37 TABLE 6-4 LIST OF CONTACTS ...... 38 TABLE 7-1 RESETTLEMENT BUDGET ...... 39 TABLE 7-2 RESETTLEMENT INVESTMENT PLAN (UNIT: 0,000 YUAN) ...... 40 TABLE 8-1 STAFFING OF RESETTLEMENT AGENCIES ...... 43 TABLE 8-2 TRAINING PROGRAM OF RESETTLEMENT AGENCIES ...... 43 TABLE 9-1 RESETTLEMENT IMPLEMENTATION SCHEDULE ...... 45 TABLE 10-1 SAMPLE LA AND HD SCHEDULE ...... 47 TABLE 10-2 SAMPLE FUND USE SCHEDULE ...... 47 TABLE 10-3 EXTERNAL M&E INDICATORS ...... 49 TABLE 10-4 RESETTLEMENT M&E SCHEDULE ...... 50

List of Figures FIGURE 2-1 CURRENT SITUATION OF RIVER EMBANKMENT ...... 6 FIGURE 2-2 AFFECTED TRANSFORMER ...... ERROR! BOOKMARK NOT DEFINED. FIGURE 3-1 AGE DISTRIBUTION OF SAMPLE POPULATION ...... 11 FIGURE 3-2 EDUCATIONAL LEVELS OF SAMPLE POPULATION ...... 12 FIGURE 3-3 LABOR EMPLOYMENT OF SAMPLE POPULATION ...... 13 FIGURE 3-4 COMPOSITION OF SAMPLE POPULATION ...... 14 FIGURE 3-5 HOUSEHOLD INCOME OF SAMPLE POPULATION ...... 15 FIGURE 3-6 HOUSEHOLD EXPENDITURE OF SAMPLE POPULATION ...... 15

4 FIGURE 6-1 GRIEVANCE REDRESS MECHANISM FOR SAFEGUARD ISSUES ...... 38 FIGURE 8-1 ORGANIZATIONAL CHART ...... 41

ABBREVIATIONS

AAOV - Average Annual Output Value ADB - Asian Development Bank AH - Affected Household AP - Affected Person DMS - Detailed Measurement Survey FGD - Focus Group Discussion HD - House Demolition LA - Land Acquisition M&E - Monitoring and Evaluation PMG Pingxiang Municipal Government PMO - Project Management Office PRC - People’s Republic of China RIB - Resettlement Information Booklet RP - Resettlement Plan XDG - Xiangdong District Government

Units

Currency unit = Yuan (CNY) 1.00 yuan = $0.15 1 hectare = 15 mu

5 Letter of Commitment

The Xiangdong District Government (XDG) in Pingxiang City, Jiangxi Province has applied for a loan from the Asian Development Bank (ADB) to finance the Xiangdong District Zhangli River (Dacheng-Quanhulong) Improvement Subproject (hereinafter, the “Subproject”). Therefore, the implementation of the Subproject should comply with the Safeguard Policy Statement of ADB. This Resettlement Plan (RP) represents a key requirement of ADB and will be the foundation of land acquisition, house demolition and resettlement involved in the Subproject. The RP complies with laws of the People's Republic of China and local regulations. To ensure the adequate and timely completion of resettlement, the RP also includes some additional measures and arrangements for implementation and monitoring. XDG hereby acknowledges the contents of this RP and warrants that the budgetary funds under this RP will be included in the general budget of the Project and made available on time. This RP is based on the preliminary design and the resettlement DMS. Therefore, the RP is the final report that will be approved by ADB before implementation. XDG hereby authorizes the Xiangdong PMO to implement the resettlement work of the Subproject, and the local governments are responsible for their respective resettlement tasks.

Agency Signature Date Xiangdong PMO

6 Executive Summary

1. Overview of the Subproject The Subproject consists of the following components: 1) River Rehabilitation: dredging for 4.18km; construction of an embankment of 0.468km and a flood wall of 0.072km, reinforcement of a flood wall of 0.921km, bank protection for 7.098km, construction of flood protection roads of 0.468km, tractor roads of 1.46km and waterfront footpaths of 0.78km; demolition and reconstruction of 5 weirs, construction or reconstruction of two steel dam sluices, and construction of 11 cross-embankment structures 2) Water Environment Management: demolition and reconstruction or construction of intercepting sewers of 5.089km (DN400 2.903km and DN300 2.186km) and associated facilities, construction of 7 small wastewater treatment facilities and an artificial wetland, and ecological rehabilitation by applying aquatic plant rehabilitation and aeration techniques, setting up composite artificial floating islands and solar fountain aerators, etc. 3) Landscaping: landscaping of the wetland purification experience zone, urban reconstruction zone and ecological development zone for the mainstream and tributaries of the Zhangli River to improve the embankment environment and create waterfront activity spaces 2. LA and HD Based on the preliminary design and the resettlement DMS, the Subproject affects 3 villages in two townships of Xiangdong District. The main types of impacts of the Subproject are permanent LA, temporary land occupation, demolition of rural non-residential properties, and infrastructure and ground attachments. 65.35 mu of collective land will be acquired for the Subproject (53.09 mu for River Rehabilitation and 12.26 mu for Water Environment Management), affecting 90 households with 496 persons in 3 villages in two townships of Xiangdong District, including 3.00 mu of irrigated land (4.59%), 27.65 mu of non-irrigated land (42.31%), 0.95 mu of garden land (1.45%), 0.91 mu of woodland (1.39%), 0.5 mu of abandoned fishpond (0.77%) and 32.84 mu of unused land (50.25%). 22.59 mu of land will be occupied temporary for river dredging River Rehabilitation, and intercepting sewer construction and reconstruction in Water Environment Management, including 5.15 mu of irrigated land, 15.87 mu of non-irrigated land, and 1.57 mu of unused land. A 35 m2 abandoned property will be demolished for River Rehabilitation, affecting one household with 8 persons. The Subproject does not involve the demolition of residential houses. 3. Policy framework and entitlements 1) LA The LA compensation rates of the Subproject have been fixed in consultation with the local governments and APs according to the Land Administration Law of the PRC, Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition, Measures of Jiangxi Province for the Implementation of the Land Administration Law of the PRC, and Uniform AAOV Rates and Location-based Composite Land Prices of Jiangxi Province (JPG [2015] No.81). Location- based composite land prices include land compensation and resettlement subsidy, where the uniform AAOV rates in Ganquan and Wuli Villages, Xiangdong Town, and Xincun Community, Xiashankou Sub-district are 41,847 yuan/mu for irrigated land, garden land and fishponds, 28,038 yuan/mu for non-irrigated land, 14,647 yuan/mu for woodland and other farmland, and 8,370 yuan/mu for unused land. The compensation rate for young crops is 1,500 yuan/mu. 2) Temporary land occupation The compensation rate for temporary land occupation is 3,500 yuan/mu per annum. Any occupied farmland will be reclaimed by the land user. 3) HD Attached facilities such as piggeries, toilets and simple sheds will be compensated for at replacement cost through consultation with agencies concerned and proprietors. The compensation rate for masonry timber structure is 460 yuan/m2. 4) Infrastructure and attachments The infrastructure and attachments affected by the Subproject will be compensated for at replacement cost. 4. Livelihood restoration and resettlement

7 Income restoration measures include cash compensation, skills training, agricultural development, social security, etc. Socioeconomic surveys and consultations with AHs confirmed that the AHs are not dependent on agricultural incomes from the cultivated land and have other alternative income sources, the livelihood losses due to the loss of agricultural land is not significant. No household (HH) will lose more than 10% of their livelihood sources. 5. Vulnerable groups and women 11 vulnerable households with 56 persons will be affected by the Subproject. In addition to the above resettlement policies, they will also be entitled to some preferential policies: 1) Vocational training, and employment information and guidance will be granted to laborers in vulnerable households to increase their job opportunities; and 2) Unskilled jobs generated at the construction and operation stages of the Subproject will be first made available to laborers in vulnerable households. The Subproject will affect 226 women, accounting for 45.56% of all APs. During resettlement, women will enjoy the same rights as men. At the construction and operation stages, women will be placed to suitable jobs, such as food purchasing and other logistical work. The measures to promote women's development under the Subproject include: 1) Women will have priority in employment; 2) Women will receive agricultural and nonagricultural skills training, where not less than 50% of the trainees should be women; 3) Women will receive relevant information during resettlement and may participate in public consultation; 4) A special FGD with women will be held to introduce resettlement policies and improve women’s awareness; and 5) Compensation agreements must be signed by couples. 6. Public participation and information disclosure All APs (with 30% being women) have been informed of the key points of this RP by various means and involved in the Subproject, such as meeting, interview, FGD, public participation meeting and community consultation, and their opinions have been well incorporated into this RP. The Resettlement Information Booklet (RIB) will be distributed to the APs in end August/early September 2019. 7. Grievance redress An appeal procedure has been established to settle disputes over compensation and resettlement. The aim is to respond to appeals of the APs timely and transparently. Grievances about the Subproject may be from LA, temporary land occupation, etc. Correspondingly, the Subproject Leading Group, Xiangdong PMO, affected township governments and village committees will coordinate and handle grievances and appeals arising from resettlement. The APs may file appeals about any aspect of resettlement, including compensation rates. 8. Organizational structure In order to ensure the successful implementation of the Subproject, PMG has established a leading group for overall leadership and coordination. The Xiangdong PMO has been established under the leading group for routine management and coordination, progress control and reporting, and communication between XDG and ADB. The Xiangdong PMO is the implementing agency (IA) of the Subproject, and is responsible for RP implementation together with the agencies concerned. 9. M&E In order to ensure the successful implementation of this RP, resettlement implementation will be subject to internal and external monitoring. Internal monitoring will be performed by the Xiangdong PMO and other agencies concerned (e.g., water resources bureau, land and resources bureau), and an internal monitoring report will be submitted to ADB semiannually during resettlement implementation till the completion of all RP provisions including the implementation of the livelihood restoration measures. Zhongrui Modernist Consulting Co., Ltd. (hereinafter, “Zhongrui”) is the external resettlement and social M&E consulting agency of the Jiangxi Pingxiang Integrated Rural-Urban Infrastructure Development Project (Contract CS2). Zhongrui entered into a contract with the Pingxiang PMO in April 2018, and will provide consulting services for the Project according to the terms of reference and the contract at the implementation stage. The external monitoring reports shall be prepared on semi-annual basis during the implementation of resettlement plan provisions including the implementation of the livelihood restoration program. A resettlement completion report will be prepared after 12 months of the completion of the land acquisition, compensation and resettlement activities. These reports will be submitted to ADB by the PMO for review and disclosed

8 subsequently on ADB website.

10. Resettlement budget and implementation schedule All costs incurred during LA and resettlement will be included in the resettlement budget of the Subproject. Based on prices in 2019, the resettlement budget is 5.5511 million yuan ($804,426); including LA and HD compensation, land taxes, monitoring costs, contingencies, etc. Resettlement will begin in September 2019 and is expected to be completed by September 2020, and then another one year to September 2021 will last to complete livelihood restoration measures.

9 Glossary

Affected person People (households) affected by project-related changes in use of (or household) land, water or other natural resources

Money or payment in kind to which the people affected are entitled in Compensation order to replace the lost asset, resource or income

Range of measures comprising compensation, income restoration, transfer assistance, income substitution, and relocation which are Entitlement due to affected people, depending on the nature of their losses, to restore their economic and social base

Income Reestablishing income sources and livelihoods of people affected restoration

Rebuilding housing, assets, including productive land, and public Resettlement infrastructure in another location

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

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

Vulnerable Distinct groups of people who might suffer disproportionately from group resettlement effects

10 1 Overview of the Subproject 1.1 Background There are two major rivers in Pingxiang City – the Lishui and Pingshui Rivers, all in the water system. The Zhangli River is a Tier-1 tributary of the Pingshui River, originating in Qingshan Town, and entering the in Xiangdong District, with a full length of 9.36km, a watershed area of 25.6km2 (15.3km2 in Xiangdong District and 10.3km2 in Anyuan District), and a longitudinal slope of 9.2‰. The existing urban segment of the Zhangli River has a relatively low flood control standard due to low embankments, and can only resist floods occurring every 5-10 years only. However, according to the 13th Five-year Water Resources Development Plan of Pingxiang City (2015), the flood control standard of Xiangdong District should be for floods occurring every 20 years. In addition, this segment is affected seriously by riverbed silting and water pollution, and river water would overflow during heavy rains, so farmland on both sides is often inundated; the flood carrying capacity of the river is reduced greatly due to flood channel occupation by houses and other structures. The flood control standard of the Zhangli River is too low to meet local economic and social development demand. To fully utilize the ADB loan /savings, Xiangdong District government proposed a new integrated river rehabilitation and flood risk management subproject following the ecological and ecosystem- based adaptation sponge city approach on the rural-urban Zhanglihe River.

1.2 Components The total length of river rehabilitation of the Subproject is 6.01km, including 3.68km from Chalingxia to the mouth of the Pingshui River (mainstream), and 2.33km from Ganquan Village to the mouth of the Zhangli River (tributary). The Subproject consists of the following components: 1) River Rehabilitation: dredging for 4.18km; construction of an embankment of 0.468km and a flood wall of 0.072km, reinforcement of a flood wall of 0.921km, bank protection for 7.098km, construction of flood protection roads of 0.468km, tractor roads of 1.46km and waterfront footpaths of 0.78km; deulemolition and reconstructionv of 5 weirs, construction or reconstruction of two steel dam sluices, and construction of 11 cross-embankment structures 2) Water Environment Management: demolition and reconstruction or construction of intercepting sewers of 5.089km (DN400 2.903km and DN300 2.186km) and associated facilities, construction of 7 small wastewater treatment facilities and an artificial wetland, and ecological rehabilitation by applying aquatic plant rehabilitation and aeration techniques, setting up composite artificial floating islands and solar fountain aerators, etc. 3) Landscaping: landscaping of the wetland purification experience zone, urban reconstruction zone and ecological development zone for the mainstream and tributaries of the Zhangli River to improve the embankment environment and create waterfront activity spaces The gross investment in the Subproject is 86.1606 million yuan, including an ADB loan of 46.4384 million yuan, accounting for 54%; and domestic counterpart funds of 39.7222 million yuan, accounting for 46%, to be raised by the owner.

1.3 Measures to Reduce Resettlement Resettlement impacts have been minimized at the design stage on the following principles:  Avoiding or minimizing occupation of existing and planned residential areas;

1  Avoiding or minimizing occupation of high-quality farmland;  Gaining access to the proposed construction sites through existing state and local roads;  Avoiding or minimizing occupation of environmentally sensitive areas;  Selecting a resettlement community in line with the local development plan At the planning and design stages, the design agency and the owner took the following effective measures in order to reduce the local socioeconomic impacts of the Subproject: A) The design was optimized at the planning stage: 1) The natural form of the river should be maintained where possible, and only irrational segments adjusted locally. 2) The embankments should be aligned with the existing shorelines naturally where possible; the normal operation of riverside structures or facilities should not be affected; farmland and house occupation should be minimized to facilitate flood control and project management. 3) The shorelines should not occupy the waterway, and the existing flood channels should be maintained properly. 4) The existing structures should be retained or reinforced where possible; any structure that has to be demolished and rebuilt should be rebuilt at or close to the former site. 5) The shorelines should be roughly parallel with the flood flow direction to facilitate flood discharge. 6) The river rehabilitation program should be based on the technical and economic comparison of revetment structure and dredging measures. 7) The cross-sectional design, slopes and revetments should be safe, ecological and natural. 8) Intercepting sewers will be provided on both sides of the embankments in order not to affect existing structures. Such sewers will be laid below the embankment-top roads if possible, or included in the embankment structure. B) At the RP preparation and implementation stages, when LA and HD are unavoidable, the following measures will be taken to reduce the local impacts of the Subproject: 1) Strengthen the collection of basic information, make an in-depth analysis of the local present socioeconomic conditions and future prospect, and develop a feasible RP based on the local practical conditions to ensure that the APs will not suffer losses due to the Subproject. 2) Encourage public participation actively. 3) Strengthen internal and external monitoring, establish an efficient and unobstructed feedback mechanism and channel, and shorten the information processing cycle to ensure that issues arising from project implementation are solved timely. 4) Conduct rational construction and traffic organization to ensure smooth construction and traffic, and minimize negative construction impacts on the surrounding communities.

2 Table 1-1 Scope of Construction and Resettlement Impacts of the Components Component Subcomponent Scope of construction Resettlement impacts Dredging the seriously silted segments of ZLH0+000~ZLH2+308 and Occupying 17.88 mu of collective land ZLH2+856~ZLH3+677.8 on the mainstream, and ZLHZ0+100~ZLHZ0+400, temporarily, including 4.23 mu of irrigated Dredging ZLHZ0+600~ZLHZ0+900 and ZLHZ1+447~ZLHZ2+097 on tributaries, with a total land, 12.63 mu of non-irrigated land and length of 4.38km, including 3.13km for the mainstream and 1.25km for tributaries 1.02 mu of unused land Acquiring 53.09 mu of collective land, affecting 56 households with 264 persons, Construction of an embankment of 0.468km (mainstream) and flood walls of including 51 households with 224 persons in 0.532km (0.072km out of the Quanhu New Town segment and 0.46km in the Ganquan Village, Xiangdong Town and 5 Embankment Quanhu New Town segment), reinforcement of a flood wall of 0.921km households with 30 persons in Xincun Improvement (mainstream), construction of a box culvert of 0.078km (Quanhu New Town Community, Xiashankou Sub-district; River segment), reconstruction of existing revetments of 0.439km (tributaries) and artificial demolishing a 35m2 non-residential property, Rehabilitation lake revetments of 1.17km affecting one household with 8 persons in Zhangli Village, Xiangdong Town 1) Weirs: reconstruction of the weir at ZLH0+098.0 on the mainstream ZLH0+106.0, River Barrage and the other 4 weirs at the former sites; 2) Steel dam sluices: reconstruction of the Constructed or reconstructed on the existing Construction weir at ZLH3+615.0 on the mainstream to a steel dam sluice (2#), and moving it waterway1, involving neither LA nor HD downstream by 16.0m to ZLH3+631.0 to reduce LA and HD Cross- embankment Construction of 11 cross-embankment structures, including 6 drainage culverts Constructed or reconstructed on the existing Structure and 5 diversion culverts waterway, involving neither LA nor HD Construction Occupying 4.71 mu of collective land Construction or reconstruction of DN400 sewer lines of 2,903m and DN300 sewer temporarily, including 0.92 mu of irrigated Intercepting Sewer lines of 2,186m, totaling 5,089m land, 3.24 mu of non-irrigated land and 0.55 mu of unused land. Small Wastewater Constructed or reconstructed on the existing Water Construction of wastewater treatment facilities and a collection network Treatment Station waterway, involving neither LA nor HD Environment 1) Wetland: construction of an artificial wetland on the mainstream of the Zhangli Management River (ZLH0+000.0~ZLH0+350.0), with a floor area of 21,180 m2 (4,080 m2 on the Acquiring 12.26 mu of collective land, Ecological left bank and 17,100 m2 on the right bank), and a treatment capacity of 26,000 m3/d; affecting 34 households with 242 persons in Rehabilitation 2) ecological rehabilitation by growing aquatic plants, setting up composite artificial Wuli Village, Xiangdong Town floating islands and solar fountain aerators, etc. on the mainstream and tributaries of the Zhangli River Wetland purification experience zone, urban reconstruction zone and ecological Landscaping / / development zone

1 The existing waterway is state-owned land that the IA has the right to use it. No additional requirement on land approval is needed. 3 2 Impacts of the Subproject 2.1 Types of Impacts According to the survey, the main types of impacts of the Subproject are permanent LA, temporary land occupation, demolition of rural non-residential properties, and infrastructure and ground attachments.

2.2 Survey Method and Process From April to May 2019, the Xiangdong PMO conducted a socioeconomic survey on the affected villages and households in the subproject area, and obtained detailed information on project impacts, covering LA and HD impacts, socioeconomic profile of the affected population, public opinions, etc. All APs were covered by the survey. During the survey, comments on LA, HD and resettlement were collected extensively from agencies concerned, township governments, village committees and local residents through consultation. All consultation reports have been included in this RP. 1) LA survey: conducting a survey on acquired land by use, ownership and type after the LA area is delimited 2) Survey on affected population: conducting a sampling survey, covering gender, family information, age, educational level, employment, etc. 3) Survey on houses and attachments: conducting a survey on demolished houses and attachments by ownership and structure 4) Survey on scattered trees: counting scattered trees within the LA area by species 5) Survey on special facilities: conducting a survey on water resources, electricity, telecom and other special facilities

2.3 Impacts of the Subproject The resettlement impacts of the Subproject are based on the recommended option selected at the preliminary design2 stage and resettlement detailed measurement survey. Resettlement under the Subproject is caused by Embankment Improvement in River Rehabilitation and Ecological Rehabilitation in Water Environment Management. 91 households with 504 persons (in which women account for 44.84%) in 4 villages / communities (Ganquan Village, Wuli Village, Zhangli Village, Xincun Community) in two townships (Xiangdong Town, Xiashankou Sub-district) in Xiangdong District will be affected by LA and/or HD, in which 90 households with 496 persons will be affected by LA. A 35 m2 abandoned property in masonry timber structure in Zhangli Village, Xiangdong Town will be demolished for River Rehabilitation, affecting one household with 8 persons. 65.35 mu of collective land will be acquired for the Subproject, affecting 90 households with 496 persons in 3 villages in two townships of Xiangdong District, including 30.65 mu of collective farmland, 0.95 mu of garden land, 0.91 mu of woodland, 0.5 mu of fishpond and 32.34 mu of unused land. A 35 m2 abandoned property in masonry timber structure in Zhangli Village, Xiangdong Town will be demolished for River Rehabilitation, affecting one household with 8 persons. The AH has moved to the urban area of Pingxiang City. The Subproject does not affect any store or entity. All the 3 villages affected by LA have land loss rates of below 5%, being 3.32% for Ganquan

2 In People’s Republic of China, the final design is called as construction drawing design that the technical aspect might be optimized further, but scope will not be changed. Therefore, when preliminary design is completed, the land delimitation of the project will be done and resettlement DMS will be carried out. This RP is based on the DMS and will not require to be updated.

4 Village, Xiangdong Town, 4.83% for Wuli Village, Xiangdong Town and 1.66% for Xincun Community, Xiashankou Sub-district. Among the 90 households with 496 persons affected by LA, 34 affected households have land loss rates of less than 10%, 35 households lose rate at 10%-20%, and 21 affected households have land loss rates of 20% or more of cultivated land. In terms of socioeconomic surveys, the cultivated land per capita in project area is limited to 0.19 mu. The socioeconomic survey also indicated that AHs’ agricultural income is mainly from orange plantation rather than rice plantation because AHs owns more hill land (1.4mu per capita) that is suitable for orange plantation. It is estimated that more than 90% of agricultural income is contributed by orange plantation3. No HH will lose more than 10% of their livelihood sources. The income loss rates of the affected villages are below 2%, being 1.03% for Ganquan Village, Xiangdong Town, 0.53% for Wuli Village, Xiangdong Town and 1.24% for Xincun Community, Xiashankou Sub-district. See Tables 2-1 and 2-2.

Table 2-1 Affected Area No. Component Subcomponent Township Village Group Remarks Yangjiawan Ganquan Permanent LA, temporary Shanglong Xiangdong Village land occupation Xialong River Embankment Town 1 Zhangli Demolition of non- Rehabilitation Improvement Village residential properties Xiashankou Xincun Permanent LA, temporary 1 Sub-district Community land occupation Water Zhangmuqiao Ecological Xiangdong Wuli Permanent LA, temporary 2 Environment Xintang Rehabilitation Town Village land occupation Management Gongzhangshu

Table 2-2 Summary of Resettlement Impacts Item Subtotal Townships (Xiangdong Town, Xiashankou Sub-district) 2 Villages / communities (Ganquan, Wuli and Zhangli Villages; Xincun Community) 4 Subtotal 65.35 Farmland 30.65 Garden land 0.95 Collective land (mu) Woodland 0.91 Fishpond 0.5 Unused land 32.34 Subtotal 22.59 Temporarily occupied land Farmland 21.02 (mu) Unused land 1.57 Subtotal 35 HD (m²) Rural non-residential properties 35 HHs affected by LA only 90 Population affected by LA only 496 Directly affected population HHs affected by HD only 1 Population affected by HD only 8

3 Based on per capita land availability of cultivated land for rice (0.19mu) and for orange plantation (1.4mu) and the annual incomes based on productivity at RMB 1200/mu and RMB 1600/mu for rice and orange plantations respectively.

5 Item Subtotal Directly affected HHs 91 Directly affected population 504 Minority HHs 0 Minority population 0 Total 504

2.3.1 Permanent LA 65.35 mu of collective land will be acquired for the Subproject (53.09 mu for River Rehabilitation and 12.26 mu for Water Environment Management), affecting 90 households with 496 persons in 3 villages in two townships of Xiangdong District, including 3.00 mu of irrigated land (4.59%), 27.65 mu of non-irrigated land (42.31%), 0.95 mu of garden land (1.45%), 0.91 mu of woodland (1.39%), 0.5mu of fish pond (0.77%) that has been abandoned without any facilities, and 32.34 mu of unused (50.25%). See Tables 2-3 and 2-4.

Figure 2-1 Current Situation of River Embankment

Table 2-3 Summary of LA Impacts (by Component) Planned LA area (mu) Affected Non- Component Irrigated Garden Wood unused irrigated Fish pond Total HHs Population land land land land land River 1.98 19.01 0.95 0.7 29.95 0.5 53.09 56 254 Rehabilitation Water Environment 1.02 8.64 0 0.21 2.39 0 12.26 34 242 Management Total 3 27.65 0.95 0.91 32.34 0.5 65.35 90 496

Table 2-4 Summary of LA Impacts (by Group) River Water Environment Township Village Group Total (mu) Rehabilitation Management Yangjiawan 2.01 2.01 Ganquan Shanglong 28.67 28.67 Xiangdong Village Town Xialong 18.7 18.7 Subtotal 49.38 49.38

6 River Water Environment Township Village Group Total (mu) Rehabilitation Management Zhangmuqiao 1.07 1.07 Wuli Village Xintang 2.89 2.89 Gongzhangshu 8.3 8.3 Subtotal 12.26 12.26 Xincun 1 3.71 3.71 Xiashankou Community Sub-district Subtotal 3.71 3.71 Total (mu) 53.09 12.26 65.35

2.3.2 Temporary Land Occupation 22.59 mu of land will be occupied temporary for river dredging River Rehabilitation, and intercepting sewer construction and reconstruction in Water Environment Management, including 5.15 mu of irrigated land, 15.87 mu of non-irrigated land and 1.57 mu of grassland. The expected occupation period is 2~3 months due to stage-by-stage construction, and nearby residents will be affected slightly. See Table 2-5.

Table 2-5 Summary of Temporary Land Occupation Collective land (mu) Component Irrigated land Non-irrigated land Grassland Total River Rehabilitation 4.23 12.63 1.02 17.88 Water Environment 0.92 3.24 0.55 4.71 Management Total 5.15 15.87 1.57 22.59

2.3.3 Demolition of Rural Non-residential Properties A 35 m2 abandoned property will be demolished for River Rehabilitation, affecting one household with 8 persons. This property is owned by Zhang Yongkang in Zhangjiang Group of Zhangli Village. The AH has moved to the urban area of Pingxiang City. This property was formerly a piggery, and has been abandoned for many years. See Table 2-6.

Table 2-6 Summary of Demolished Non-residential Properties Area (m2) Current Family Component Village HH head Masonry Masonry use of the size Simple Shed Subtotal concrete timber structure River Zhangli Zhang 8 0 35 0 0 35 Abandoned Rehabilitation Village Yongkang

2.3.4 Affected Vulnerable Groups Vulnerable groups include households below the minimum living standard (385 yuan/month per capita), orphans, old people, the physically and mentally disabled, and women-headed households. See Table 2-7. The 11 vulnerable AHs will experience partial loss of lands and none of the 11 AHs will experience significant (>10%) losses in their income sources resulting from the reduction of agricultural income.

Table 2-7 Summary of Affected Vulnerable Groups

7 Type of Vulnerable Where Family size Village HH head impact HHs Five guarantees4 MLS Disability Subtotal Male Female LA HD Yang Yijun Yes 4 3 1 Yes Ganquan Ganquan Yang Yiguo Yes 4 3 1 Yes 5 Zhou Dewen Yes 5 2 3 Yes Li Dexia Yes 5 2 3 Yes Zhou Pingbo Yes 5 4 1 Yes Zhong Jiafeng Yes 7 4 3 Yes Zhong Ruoxi Yes 11 6 5 Yes Wuli Wuli Zhang Jianming Yes Yes 4 2 2 Yes 6 Zhong Jianbang Yes 1 1 0 Yes Zhong Dehua Yes 7 4 3 Yes Zhong Hai Yes 3 2 1 Yes subtotal 56 33 23

2.3.5 Affected Infrastructure and Ground Attachments The Subproject will affect 7 types of attachments, including enclosing walls, lighthouses, transformers, etc. See Table 2-8.

Table 2-8 Summary of Affected Infrastructure and Attachments Item Unit Qty. Enclosing wall m2 650 Lighthouse / 2 10KV line km 1.99 220V line km 0.27 Transformer / 2 Communication line km 1.48 Gas pipeline km 0.46

4 “five guarantee program” refers to the elderly, weak, widowed and disabled members who are unable to work and have no means of living, or whose households lack labor. The “five guarantee program” subsidies or assistance from government are as follows: 1) Grain and oils, subsidiary food and fuel; 2) Living goods including clothes, quilt etc, and pocket money; 3) Basic residential housing, 4) Medical subsidies; 5) burial expenses.

8 3 Socioeconomic Profile of the Subproject Area 3.1 Affected District Xiangdong District is located in western Jiangxi Province and southwestern Pingxiang City, bordered by the urban area of Pingxiang City and Luxi County on the east, on the southeast, Youxian County on the south, City on the west and Lixian County on the north, and is known for its painting and musical arts. The district has a land area of 862.0 km2, and governs 8 towns, two Xiangs and one sub-district. In 2018, the district’s GDP was 18.469 billion yuan, up 8.7% year on year, in which the added value of primary industries was 1.329 billion yuan, up 4.0%; that of secondary industries 8.493 billion yuan, up 8.0%; and that of tertiary industries 8.647 billion yuan, up 11.0%, with a ratio of 7.2:46.0:46.8, and per capita GDP 55,550 yuan, up 4.7%.

Table 3-1 Socioeconomic Profile of Xiangdong District (2018) Indicator Qty. Gross (0,000) 41.07 Male (0,000) 21.1 Population Female (0,000) 19.97 Nonagricultural (0,000) 22.01 Agricultural (0,000) 19.06 Output value (00 million yuan) 13.29 Primary industries Percent (%) 7.20% Output value (00 million yuan) 84.93 Secondary industries Output value Percent (%) 46.0% Output value (00 million yuan) 86.47 Tertiary industries Percent (%) 46.8% Per capita GDP (yuan) 55550 Urban residents’ per capita disposable income (yuan) 35937 Income Rural residents’ per capita net income (yuan) 18214 Source: Statistical Yearbook 2018 of Xiangdong District

3.2 Affected Townships 3.2.1 Xiangdong Town Xiangdong Town is located in western Pingxiang City, being the political, economic and cultural center of Xiangdong District, with a land area of 64.03 hectares, a cultivated area of 25,084.5 mu, a woodland area of over 32,000 mu and 10 reservoirs, 24,439 households with 74,374 persons, governing 18 villages and 7 communities with 275 groups. Xiangdong Town is a typical old mining town, and has over 100 industrial enterprises making coal, porcelain, cement and calcium carbonate, including 34 ones above designated size. The Xiangdong Innovation and Startup Demonstration Base composed of the Xiangdong Service Center of Alibaba Group’s “Rural Taobao”, Ganxiang International Auto Plaza, an auto hotel, and a building material and furnishing market has been established.

Table 3-2 Socioeconomic Profile of Xiangdong Town Item Unit Qty. HHs / 24339 Population / 74374 Population and Agricultural population / 34515 employment Employed population of primary industries / 8722 Employed population of secondary industries / 13382 Employed population of tertiary industries / 16620

9 Item Unit Qty. Total assets 0,000 yuan 23041 Rural economy Public budgetary revenue 0,000 yuan 6057 Sown area of crops mu 67260 Cultivated area mu 162912 Per capita net income of rural residents yuan 12926.9

3.2.2 Xiashankou Sub-district Xiashankou Sub-district is located in the center of Xiangdong District, with a land area of 13.8 km2 and a population of 47,000, governing 10 communities. There are several major enterprises in the sub-district, such as Pxsteel, Pingxiang Power Plant and Pingxiang Steel. Since 2017, the sub-district has been developing under the guideline of promoting the balanced development of secondary and tertiary industries, and strengthening services.

Table 3-3 Socioeconomic Profile of Xiashankou Sub-district Item Unit Qty. HHs / 15537 Population / 47389 Population and Agricultural population / 21992 employment Employed population of primary industries / 5557 Employed population of secondary industries / 8527 Employed population of tertiary industries / 10590 Total assets 0,000 yuan 21325 Rural economy Public budgetary revenue 0,000 yuan 5963 Sown area of crops mu 171.4 Cultivated area mu 72 Per capita net income of rural residents yuan 16911

3.3 Affected Villages 3.3.1 Ganquan Village Ganquan Village is located in eastern Xiangdong District, with a land area of 3 km2, 682 households with 2,875 persons, and a cultivated area of 520 mu, rich in limestone. There are some public enterprises, two individual quarries, a primary school, and 3 groceries in the village. The whole village is covered by highways, water and power supply, and communication networks. In 2018, the village’s per capita income was 9,000 yuan and collective income 100,000 yuan. 3.3.2 Wuli Village Wuli Village is located in eastern Xiangdong Town, with a land area of 5.6 km2, 1,258 households with 4,928 persons, a per capita cultivated area of 0.3 mu, and per capita income of 30,000 yuan, governing 18 groups. There are 13 enterprises and two small reservoirs in the village. There is a high-standard seed R&D base in the village. Pingxiang Jiuding Stockbreeding Co., Ltd. in the village is a city-level key enterprise, with a floor area of 110 mu and a gross investment of 200 million, and absorbs a lot of labor annually. In 2018, the town government held a job fair in the village, involving porcelain, chemical, apparel, auto trade, technology, e-commerce and other enterprises, offering over 100 jobs, with over 200 participants. 3.3.3 Zhangli Village Zhangli Village is located in the political, economic and cultural center of Xiangdong District, with a land area of 5.6 km2, 1,532 households with 6,266 persons, and a cultivated area of 271 mu, governing 17 groups. The main crops are paddy rice and vegetables. There are 13 industrial enterprises in the village.

10 In recent years, new-type light industry, characteristic agriculture, integrated service industries and rural infrastructure construction have been booming in the village. In 2018, the village’s per capita net income was 6,500 yuan. 3.3.4 Xincun Community Xincun Community is located in Xiangdong District, with a land area of 2 km2, 686 households with 2,786 persons, a per capita cultivated area of 0.08 mu, and per capita annual income of 12,000 yuan. The community has strengthened cooperation with major local enterprises, and served residents and enterprises with its own advantages. It is undergoing steady economic and social development.

3.4 Sampling Survey on AHs From April to May 2019, the Xiangdong PMO and the task force conducted a sampling survey on 34 households with 105 persons in the 3 affected villages in the two affected townships of Xiangdong City, accounting for 37.78% of all AHs, and interviewed some village heads and villagers. See Appendix 4 for the interview minutes. 3.4.1 Age Distribution Among the 105 samples, 6 are aged 0~8 years, accounting for 5.88%; 19 aged 8~18 years, accounting for 17.65%; 35 aged 19~60 years, accounting for 33.33%; and 45 aged above 60 years, accounting for 43.14%. See Table 3-4 and Figure 3-1.

Table 3-4 Age Distribution of Sample Population Population Township Village Total ≤8 years 8-18 years 19-60 years >60 years Xiangdong Ganquan Village 3 9 16 21 49 Town Wuli Village 3 9 17 22 51 Xiashankou Xincun 0 1 2 2 5 Sub-district Community Total 6 19 35 45 105 Percent 5.88% 17.65% 33.33% 43.14% 100.00%

5.88%

17.65% 43.14%

33.33%

Figure 3-1 Age Distribution of Sample Population

3.4.2 Educational Level Among the 105 samples, 10 had no formal education, accounting for 9.80%; 33 have received primary school education, accounting for 31.37%; 43 have received junior high school education, accounting for 41.18%; 12 have received senior high school education, accounting for 11.76%; and 6 have received college or above education, accounting for 5.88%. See Table 3-5 and Figure 3-2.

11 Table 3-5 Educational Levels of Sample Population Population Township Village No formal Primary Junior high Senior high College or Total education school school school above Ganquan 5 15 20 6 3 49 Xiangdong Village Town Wuli Village 5 16 21 6 3 51 Xiashankou Xincun 0 2 2 1 0 5 Sub-district Community Total 10 33 43 12 6 105 Percent 9.80% 31.37% 41.18% 11.76% 5.88% 100.00%

5.88%

9.80% 11.76%

31.37%

41.18%

Figure 3-2 Educational Levels of Sample Population

3.4.3 Productive Resources The 34 sample households have a per capita cultivated land of 0.19 mu, including 0.12 mu of irrigated land and 0.07 mu of non-irrigated land. In addition, the sampled households have a per capita hill land of 1.4mu that is used for orange plantation. Due to limited cultivated land, the main agricultural incomes5 is from income of orange plantation which accounts for more than 90%. Of the 34 households that were surveyed, 3 were identified as vulnerable households. 3.4.4 Labor Employment The 105 samples have 35 laborers, in which 15 deal with farming, accounting for 43.18%; 12 work outside, accounting for 34.09%; two deal with individual business, accounting for 6.82%; two work at enterprises or public institutions, accounting for 6.82%; and 3 deal with other labor, accounting for 9.09%. See Table 3-6 and Figure 3-3.

Table 3-6 Labor Employment of Sample Population Population Enterprise / Other Township Village Outside Individual Total Farming public (casual employment business institution labor) Xiangdong Ganquan Village 6 5 1 1 1 14 Town Wuli Village 8 6 1 1 2 18 Xiashankou Xincun 1 1 0 0 0 3 Sub-district Community Total 15 12 2 2 3 35

5 According to the socioeconomic survey, agricultural income is mainly comprised of income of rice plantation and income of orange plantation. It is estimated by the respondent that annual incomes from rice plantation and orange plantation are CNY 1200/mu, and CNY 1600/mu respectively.

12 Population Enterprise / Other Township Village Outside Individual Total Farming public (casual employment business institution labor) Percent 43.18% 34.09% 6.82% 6.82% 9.09% 100.00%

6.82% 9.09%

6.82% 43.18%

34.09%

Figure 3-3 Labor Employment of Sample Population

3.4.5 Composition of Sample Population The 105 samples include 48 females, accounting for 45.56%; 35 laborers, accounting for 33.33%, 14 female laborers, accounting for 13.33%; 45 old people, accounting for 42.86%; and 19 school children, accounting for 17.65%. See Table 3-7 and Figure 3-4.

Table 3-7 Composition of Sample Population Population Township Village Female School Females Laborers Old people laborers children Xiangdong Ganquan Village 22 16 6 21 9 Town Wuli Village 25 17 7 22 9 Xiashankou Xincun Community 1 2 1 2 1 Sub-district Total 48 35 14 45 19 Percent 45.56% 33.33% 13.33% 42.86% 17.65%

13 50.00% 45.56% 45.00% 42.86%

40.00%

35.00% 33.33%

30.00%

25.00%

20.00% 17.65%

15.00% 13.33%

10.00%

5.00%

0.00% Fem ales Laborers Fem ale laborers Old people School chil dre n

Figure 3-4 Composition of Sample Population

3.4.6 Annual Household Income and Expenditure The average annual income of the sample households is 36,182 yuan, in which outside employment income accounts for 51.52%, wage income for 11.87%, agricultural income for 21.11%, sideline income for 7.90%, and other income for 7.60%. The average annual expenditure of the sample households is 19,347 yuan, in which agricultural expenses account for 9.61%, electricity expenses for 8.51%, water expenses for 1.03%, communication expenses for 9.43%, educational expenses for 11.37%, medical expenses for 1.45%, fuel expenses for 5.27%, non-staple food expenses for 48.15%, and other expenses for 5.17%. See Tables 3-8 and 3-9.

Table 3-8 Household Income of Sample Population Annual household income (yuan) Outside Item Agricultural Sideline Other Wage income employment Subtotal income income income income Average per HH 7639 2857 4295 18641 2750 36182 (yuan) Percent 21.11% 7.90% 11.87% 51.52% 7.60% 100.00%

7.60%

21.11%

7.90% 51.52% 11.87%

Ag ricu ltu ral in co m e Sideline incom e W age incom e O utside em ploym ent incom e O ther incom e

14 Figure 3-5 Household Income of Sample Population

Table 3-9 Household Expenditure of Sample Population Annual household expenditure (yuan) Communicat and furniture Educational Educational Agricultural Agricultural Non-staple Non-staple expenses expenses expenses expenses expenses expenses expenses expenses expenses expenses Electricity Electricity appliance Subtotal Subtotal Medical Water Water Home Other Other Fuel food Item ion

Average per 1860 1646 200 1825 2200 280 1020 9316 0 1000 19347 HH (yuan) Percent 9.61% 8.51% 1.03% 9.43% 11.37% 1.45% 5.27% 48.15% 0.00% 5.17% 100.00%

Figure 3-6 Household Expenditure of Sample Population

3.4.7 Women The 105 samples include 47 women, accounting for 45.56%. Two women had no formal education, accounting for 4.17%; 9 have received primary school education, accounting for 18.75%; 22 have received junior high school education, accounting for 45.83%; 14 have received senior high school education, accounting for 29.17%; and one has received college or above education, accounting for 2.08%. Local women enjoy the same rights and status as men, and mostly deal with farm work or housework (taking care of children). Women working outside usually deal with services, sewing and skilled jobs, and are paid 2,000-3,000 yuan, 2,500-3,500 yuan and 3,000-4,200 yuan per month respectively. See Table 3-10.

Table 3-10 Summary of Women’s Economic Activities Item Staying at home Doing farm work Services Sewing Skilled jobs Population 7 5 15 12 9 Income (yuan) 0 2000 2000-3000 2500-3500 3000-4200 Percent 14.58% 10.42% 31.25% 25.00% 18.75%

15 4 Policy Framework and Compensation Rates The resettlement work of the Subproject will be planned and implemented in accordance with the laws and regulations of the PRC, local regulations, and ADB’s policy on involuntary resettlement. 4.1 Laws, Regulations and Policies Applicable to Resettlement 4.1.1 State Laws and Regulations  Land Administration Law of the PRC (effective from January 1, 1999, amended on August 28, 2004)  Measures on Public Announcement of Land Acquisition (Decree No.10 of the Ministry of Land and Resources) (effective from January 1, 2002)  Regulations on House Acquisition on State-owned Land and Compensation (Decree No.590 of the State Council)  Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28)  Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (MLR [2004] No.238) (November 3, 2004)  Measures for the Administration of Preliminary Examination of the Land Used for Construction (Decree No.27 of the Ministry of Land and Resources) (effective from December 1, 2004)  Notice of the General Office of the State Council on Doing a Good Job in the Employment Training and Social Security of Land-expropriated Farmers (SCO [2006] No.29)  Notice of the State Council on Intensifying Land Control (SC [2006] No.31)  Notice of the Ministry of Land and Resources on Further Improving the Management of Land Acquisition (June 26, 2010)  Notice on Strengthening Supervision and Inspection, and Further Regulating Land Acquisition and House Demolition Behavior (ZJB [2011] No.8) 4.1.2 Local Regulations and Policies  Measures of Jiangxi Province for the Implementation of the Land Administration Law of the PRC (April 29, 2000)  Decision of the Standing Committee of Jiangxi Provincial People’s Congress on Amending the Administrative Measures for Land Acquisition of Jiangxi Province (Announcement No.96) (December 22, 2001)  Measures for the Settlement of Disputes over Compensation Rates for Land Acquisition of Jiangxi Province (JPG [2007] No.23)  Uniform AAOV Rates and Location-based Composite Land Prices of Jiangxi Province (JPG [2015] No.81)  Notice of the Jiangxi Provincial Government on Further Improving the Basic Endowment Insurance Policy for Land-expropriated Farmers (JPGO [2014] No.12) (April 9, 2014)  Measures of Jiangxi Province for the Implementation of Farmland Occupation tax (Decree No.170 of the Jiangxi Provincial Government)  Opinions of Pingxiang City on the Implementation of the Regulations on House Acquisition on State-owned Land and Compensation (PMG [2012] No.12)  Opinions of the Pingxiang Municipal Government on Further Strengthening and Regulating Land Management (PMG [2011] No.9)  Opinions of the Pingxiang Municipal Government on the Implementation of Basic Endowment Insurance for Land-expropriated Farmers (PMG [2014] No.27)

16  Opinions of the General Office of the Xiangdong District Government on Basic Endowment Insurance for Land-expropriated Farmers (XDGO [2015] No.47) 4.1.3 ADB Policies  Safeguard Policy Statement, June 2009  Gender and Resettlement Analysis (2006) 4.1.4 ADB Policy on Involuntary Resettlement The objectives of ADB’s policy on involuntary resettlement are to: 1) avoid involuntary resettlement where possible; 2) minimize involuntary resettlement impacts by studying and designing alternatives; 3) improve or at least restore the APs’ living standard to the pre-project level; 4) and improve the living standard of the displaced poor population and other vulnerable groups.

4.2 Main Differences between the ADB Policy and PRC Laws

Key gaps between SPS and PRC’s system and local practice were identified as presented in Error! Reference source not found. below.

17

Table 4-1Comparative Analysis of Legal Framework and ADB Safeguard Policy Statement ADB SPS Legal Provisions and Local Practice Gap-filling Measures Management Regulations for Construction Project Land Using Pre-examination (Decree No.42 of MLR) requires to screen the area and type of the land to be provided for the project before approving the FSR or checking the project proposal. Policy Principle 1: Screen the project early on to Before land acquisition, local LRB conducts detailed measurement survey (DMS). Before house demolition, the identify past, present, and future involuntary Conduct due diligence on the prior LAR house demolition agency conducts detailed measurement resettlement impacts and risks. Determine the scope of survey. impacts to determine if there are any resettlement planning through a survey and/or census PRC regulations do not assess past impacts. outstanding compensation or resettlement There is no specific legal provision to include gender of displaced persons, including a gender analysis, issues, or unresolved grievances. analysis in resettlement planning. However, in line with local specifically related to resettlement impacts and risks. government program, the gender and risks to and/or vulnerability caused by any project particularly on women can already be identified and assessed based on the (i) Five-Guarantee Households and (ii) Minimum Living Guarantee System during resettlement planning. Please see Policy Principle 5 for more details. Policy Principle 2: Carry out meaningful consultations At national level, Land Administration Law of the People’s with affected persons, host communities, and Republic of China, State Council's Decision on Deepening concerned nongovernment organizations. Inform all Reform and Managing Strictly Land (the State Council made displaced persons of their entitlements and Identification of the poor and vulnerable [2004]28), Guidelines on Improving the System of Land resettlement options. Ensure their participation in groups as early as the screening process so Acquisition Compensation and Resettlement (the Ministry of planning, implementation, and monitoring and they can participate and their concerns are Land and Resources made [2004] number 238), and evaluation of resettlement programs. taken into account during consultations and Regulations on the Compensation of Houses on State- Pay particular attention to the needs of vulnerable planning owned Land and Compensation (2011) have similar groups, especially those below the poverty line, the Documentation of the consultation and requirements on consultation and participation. landless, the elderly, women and children, and information disclosure activities and Although there are consultation and participation activities Indigenous Peoples, and those without legal title to grievances received. conducted by local government, it is not part of the 1-book- land, and ensure their participation in consultations. 4-plans (1B4P) and compensation and relocation plan Establish a grievance redress mechanism to receive (CARP) which are the two domestic resettlement planning and facilitate resolution of the affected persons’

18 ADB SPS Legal Provisions and Local Practice Gap-filling Measures concerns. Support the social and cultural institutions of documents. To improve the documentation, all activities displaced persons and their host population. need be properly documented. Where involuntary resettlement impacts and risks are As per law, a grievance redress mechanism is established highly complex and sensitive, compensation and at the local government where farmers can first raise their resettlement decisions should be preceded by a social concern with the village collective or bring their grievances preparation phase. through the legal system directly. However, it is not part of the 1B4P and CARP documents. In line with local government program, the gender and risks to and/or vulnerability caused by any project particularly on women can already be identified and assessed based on the (i) Five-Guarantee Households and (ii) Minimum Living Guarantee System. In practice, local village committee, civil affairs bureau, social security bureau and other government agencies pays attention to the needs of the poor and vulnerable groups. Policy Principle 3: Improve, or at least restore, the For collective land compensation, the provincial government livelihoods of all displaced persons through (i) land- needs to formulate and publish Uniform Annual Output based resettlement strategies when affected Standards for Land Acquisition and the integrated land livelihoods are land based where possible or cash acquisition price, which need to be adjusted each 2-3 years. compensation at replacement value for land when the State Council [2004] No. 28 states that (1) where the project loss of land does not undermine livelihoods, (ii) prompt concerned generates profits the people displaced can use replacement of assets with access to assets of equal or the land as investment to have a right to share in those No additional gap filling required as PRC higher value, (iii) prompt compensation at full profits; (2) within a planned urban area, improvement of regulations adequately cover this principle replacement cost for assets that cannot be restored, employment system and social security to safeguard AP’s and (iv) additional revenues and services through lives. (3) out of a planned urban area, land resettlement, benefit sharing schemes where possible. employment resettlement, or displacement resettlement Policy Principle 4: Provide physically and shall be implemented (4) carry out employment trainings. economically displaced persons with needed Ministry of Land and Resources [2004] No.238 requires that assistance, including the following: (i) if there is (1) Agricultural production resettlement, (2) re-employment

19 ADB SPS Legal Provisions and Local Practice Gap-filling Measures relocation, secured tenure to relocation land, better resettlement, (3) using the land as share of the project and housing at resettlement sites with comparable access (4) provision of replacement land. to employment and production opportunities, National legislation relating to urban housing demolition integration of resettled persons economically and requires independent valuation, compensation at market socially into their host communities, and extension of value, or provision of replacement housing of equivalent project benefits to host communities; (ii) transitional value at the request of affected persons. (See State Council support and development assistance, such as land Regulations on Collection and Compensation for Houses on development, credit facilities, training, or employment State-Owned Land, 2011.) opportunities; and (iii) civic infrastructure and Compensation rates are administratively determined community services, as required. through application of prescribed valuation processes. As per legal provisions, poor and vulnerable groups are defined as those (i) who fall within the five-guarantee households and (ii) eligible for the Minimum Living Guarantee System.

The local village/community committee, civil affairs bureau, Identification of the poor and vulnerable Policy Principle 5: Improve the standards of living of social security bureau and other agencies pay attention to groups as early as screening process so the displaced poor and other vulnerable groups, the needs of the poor and vulnerable groups: they can participate and their concerns are including women, to at least national minimum taken into account during consultations and standards. In rural areas provide them with legal and a) Five-Guarantee program, the elderly, weak, planning. affordable access to land and resources, and in urban widowed and disabled members who are unable to Monitoring of the standards of living of the areas provide them with appropriate income sources work and have no means of living, or whose displaced poor and other vulnerable groups and legal and affordable access to adequate housing. households lack labor a rural production will be carried out. cooperative would provide production and living assistance (e.g. food, clothing, fuel, education and burial expenses. b) Those eligible for the Minimum Living Guarantee System are provided with living subsidy each month.

20 ADB SPS Legal Provisions and Local Practice Gap-filling Measures c) Other assistance - urgent cash assistance if the HHs have serious illness in addition to the subsidy paid under rural cooperative medical care system; cash or in-kind assistance for the women headed HHs provided by the women’s federation; priority given by the village committee to be included in the endowment insurance system for the farmers affected by LA.

Regulations on the House Demolition and Compensation on State-owned Land (2011) states that : If the residential houses of any individuals are to be demolished and they meet the conditions for affordable housing, the concerned city and county people's governments shall give priority to providing affordable housing to such persons. According to the Regulations to Solve the Housing Difficulties for the Low Income HHs issued by State Council [GF 2007, No 24], affordable housing and low-rent housing should be provided to the households who have housing difficulties. The demolished HHs can apply the affordable housing and low-rent housing. Principle 6. Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those This principle is not triggered as the PRC’s country system No action. people who enter into negotiated settlements will does not apply negotiated settlement. maintain the same or better income and livelihood status.

21 ADB SPS Legal Provisions and Local Practice Gap-filling Measures Based on the Regulations on the Demolition and Compensation of Houses on State-owned Land (2011), the illegal houses and temporary structures which were constructed after the approval period will not be compensated. As good practice, for households who are not eligible for compensation for houses at replacement value, the history or reason why the structure has no certification/license; and Policy Principle 7: Ensure that displaced persons their socio-economic conditions and vulnerability will be No additional gap filling required as without titles to land or any recognizable legal rights to assessed by the local government and concerned bureaus regulations and local practice address this land are eligible for resettlement assistance and to determine the necessary assistance that can be provided principle compensation for loss of non-land assets. to them to ensure that they will be able to restore or will not be worse-off. According to the Regulations to Solve the Housing Difficulties for the Low Income HHs issued by State Council [GF 2007, No 24], affordable housing and low-rent housing should be provided to the households who have housing difficulties. The demolished HHs can apply the affordable housing and low-rent housing. Policy Principle 8: Prepare a resettlement plan (RP) Except for large-scale water sector projects, there are no elaborating on displaced persons’ entitlements, the specific requirements to prepare a resettlement plan which income and livelihood restoration strategy, institutional is similar to the RP required by ADB. arrangements, monitoring and reporting framework, For other projects, LRB prepares the “1-book and-4-plans”, Preparation of resettlement plan and budget, and time-bound implementation schedule. which include (i) Submission Instruction Book for Land Using disclose to the affected persons and other Policy Principle 9: Disclose a draft resettlement plan, of Construction Project; (ii) Plan of Transferring Farmland; stakeholders including documentation of the consultation process in (iii) Plan of Replacement of Cultivated Land; (iv) Land a timely manner, before project appraisal, in an Acquisition Plan and (v) Plan of Provision of Land. 1-book-4 accessible place and a form and language(s) plan can be considered as a “resettlement planning understandable to affected persons and other document”.

22 ADB SPS Legal Provisions and Local Practice Gap-filling Measures stakeholders. Disclose the final resettlement plan and For house demolition, local government prepares the its updates to affected persons and other stakeholders. compensation and relocation plan, which also can be considered as a “resettlement planning document”. Refer to Article 12 of No. 28 Decree, the total resettlement Policy Principle 10: Conceive and execute involuntary cost should be included in the total project cost. All resettlement as part of a development project or compensation and administrative costs are included. program. Include the full costs of resettlement in the Decree 29 issued in 2006 states land compensation and presentation of project’s costs and benefits. For a resettlement should ensure that the living standards and No measures needed. project with significant involuntary resettlement sustainability of the livelihood of the landloss farmers are impacts, consider implementing the involuntary ensured; and that vocational training and social security resettlement component of the project as a stand-alone programs should be properly implemented for landloss operation. farmers. Any shortfall in the resettlement budget should be provided by the local government. Regulations generally require compensation and other Policy Principle 11: Pay compensation and provide financial forms of resettlement assistance to be paid before Coordination mechanism between the PMO other resettlement entitlements before physical or physical or economic displacement. and local governments will be established economic displacement. Implement the resettlement Local government is responsible for supervising throughout to properly monitor and supervise LAR plan under close supervision throughout project the project implementation period, but only focused on if the activities. implementation. AHs have received the full compensation Coordination mechanism between the PMO Policy Principle 12: Monitor and assess resettlement Except for large-scale water projects, there are no and local governments will be established outcomes, their impacts on the standards of living of requirements to monitor and evaluate outcomes, including to properly monitor and supervise LAR displaced persons, and whether the objectives of the impacts on standards of living of displaced persons. activities resettlement plan have been achieved by taking into Local government is responsible for supervising throughout The enhanced information sharing will account the baseline conditions and the results of the project implementation period, however, monitoring include the disclosure of monitoring reports. resettlement monitoring. Disclose monitoring reports. reports are not disclosed Monitoring reports will be disclosed.

23 4.3 Eligibility for Compensation and Cut-off Date The cut-off date for the eligibility for compensation is the date on which XDG discloses information on the Subproject to the affected villages that had been notified to the APs by announcement posting. This date was set on April 30, 2019. Any newly claimed land, newly built house or settlement by the APs after this date will not be entitled to compensation or subsidization. Any building constructed or tree planted purely for extra compensation will not be counted in.

4.4 Compensation Rates 4.4.1 LA The LA compensation rates of the Subproject have been fixed in consultation with the local governments and APs according to the Land Administration Law of the PRC, Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition, Measures of Jiangxi Province for the Implementation of the Land Administration Law of the PRC, and Uniform AAOV Rates and Location-based Composite Land Prices of Jiangxi Province (JPG [2015] No.81). Location- based composite land prices include land compensation and resettlement subsidy, where the uniform AAOV rates in Ganquan and Wuli Villages, Xiangdong Town, and Xincun Community, Xiashankou Sub-district are 41,847 yuan/mu for irrigated land, garden land and fishponds, 28,038 yuan/mu for non-irrigated land, 14,647 yuan/mu for woodland and other farmland, and 8,370 yuan/mu for unused land. See Table 4-1. During RP preparation, it has been confirmed by Xiangdong District Natural Resources Bureau that there have not been any updates on the compensation standards and the above policies and rates will continue to be applied. In socioeconomic surveys and consultations, it was also reported by AHs that the latest compensation rates should be complied. In the event that there are any changes during implementation, the most recent compensation rates will apply based on replacement value principle for affected land and assets. It is found that 8% of the LA compensation will be withheld for collective construction, and the balance will be distributed to the AHs.

Table 4-1 LA Compensation Rates Irrigated land, Non- Uniform Compensation garden land, unused No. District Township irrigated Woodland AAOV multiple fishpond land land (yuan/mu) Xiangdong Town, 1 Xiangdong 2262 18.5 41847 28038 14647 8370 Xiashankou Sub- district

Young crop compensation for acquired land is based on the output value of a cultivation period, and young crops that can be harvested on time will not be compensated. Compensation rates for attachments on acquired land will be agreed on between both parties, or if both parties cannot agree, appraised by a qualified agency accepted by both parties or designated by the county (municipal) government. See Table 4-2.

Table 4-2 Young Crop Compensation Rates Young Crop Compensation Rates (yuan/mu) Township Village Irrigated land, non-irrigated land Woodland Xiangdong Town Ganquan Village 1500 1300

24 Wuli Village Xiashankou Sub- Xincun Community district

4.4.2 Temporary Land Occupation The temporarily occupied land will be selected by the land user together with the local government, a land reclamation program prepared, and a lease agreement entered into according to law. The compensation rate is 3,500 yuan/mu per annum. Any occupied farmland will be reclaimed by the land user. 4.4.3 Demolition of Non-residential Properties A 35 m2 abandoned property in masonry timber structure in Zhangli Village, Xiangdong Town will be demolished for River Rehabilitation. The AH has moved to the urban area of Pingxiang City, and selected cash compensation. The structure will be compensated at replacement cost through consultations and negotiations by the local government with the AH, consistent with the valuation procedures of Xiangdong. See Table 4-3.

Table 4-3 Compensation Rates for Non-residential Properties Structure Masonry timber Replacement cost (yuan/m2) 460

4.4.4 Ground Attachments

Table 4-4 Compensation Rates for Ground Attachments Item Unit Compensation rate (yuan/unit) Enclosing wall m2 120 Lighthouse / 30000 10KV line km 180000 220V line km 150000 Transformer / 20000 Communication line km 150000 Gas pipeline km 250000

4.4.5 Vulnerable Groups In addition to the subsidies received by the MLS and 5-guarantee households under the government programs, the vulnerable HHs will be entitled to the ongoing government programs: (i) Vocational training, and employment information and guidance will be granted to laborers in vulnerable households to increase their job opportunities; and (ii) government pensions. In terms of subproject job opportunities, unskilled jobs generated during construction and operation stages will be first made available to laborers in vulnerable households. The Project will allocate 1% of resettlement cost for vulnerable groups. During RP implementation, specific measures towards livelihood support will be detailed and implemented, based on a needs assessment and mapping of skills of the vulnerable HHs.

4.4.6 Rates of Other resettlement items t Table 4-5 Summary of LA Taxes and Fees No. Item Unit Rate Basis

25 yuan/mu (irrigated 18096 land) Measure of Jiangxi Province for the 1 Land reclamation costs Implementation of the Land yuan/mu (non- 12124 Administration Law of the PRC irrigated land) Measure of Jiangxi Province for the Implementation of Farmland Occupation 2 Farmland occupation tax yuan/mu 16666 tax (Decree No.170 of the Jiangxi Provincial Government) Compensation for using Notice on Adjusting the Policy on Fees for 3 additional construction yuan/mu 16008 Compensated Use of New Construction land Land (CZ [2006] No.48) Compensation for Notice on Regulating Approval 4 temporary land yuan/mu 2 Procedures for Temporary Land Use occupation (PMLRB [2011] No.26) Notice on Adjusting the Rate of Forest Forest vegetation Vegetation Restoration Costs, and 5 yuan/mu 4000 restoration costs Guiding the Intensive Utilization of Woodland (CS [2015] No.122) Uniform AAOV Rates and Location-based 6 Social security costs yuan/mu 10000 Composite Land Prices of Jiangxi Province (JPG [2015] No.81) Interim regulations of Jiangxi Province on 7 Flood security funds yuan/mu 1000 the Raising of Flood Security Funds (October 18, 1995)

26 4.5 Entitlement Matrix

Table 4-6 Entitlement Matrix Compensation and resettlement Type Degree of impact APs Entitlements policies 92% of the land compensation, young crop Uniform AAOV rates in Ganquan and and attachment compensation will be paid 90 households with 496 Wuli Villages, Xiangdong Town, and to the AHs. persons, including 51 Xincun Community, Xiashankou Sub- 8% of the land compensation will be households with 224 persons district: 41,847 yuan/mu for irrigated 65.35 mu of collective land reserved by the VC. in Ganquan Village, 34 land, garden land and fishponds, (53.09 mu for River LA will be subject to cash compensation. households with 242 persons 28,038 yuan/mu for non-irrigated land, Permanent LA Rehabilitation and 12.26 mu Nonagricultural employment promotion in Wuli Village, Xiangdong 14,647 yuan/mu for woodland and for Water Environment measures: placement to public welfare jobs, Town, and 5 households with other farmland, and 8,370 yuan/mu for Management) social jobs, jobs generated by the 30 persons in Xincun unused land Subproject, small-amount startup loans Community, Xiashankou Sub- Standing crops compensation: 1500 The PMO will allocate special funds to offer district yuan/mu for irrigated land, 1300 free skills and reemployment training to yuan/mu for woodland. LEFs. 22.59 mu, including 5.15 mu Temporary Compensation will be paid directly to the 3,500 yuan/mu per annum of irrigated land, 15.87 mu of land / APs, and any occupied farmland will be Any occupied farmland will be non-irrigated land and 1.57 occupation reclaimed by the land user. reclaimed by the land user. mu of grassland Demolition of One household with 8 non- Reference compensation rate: 460 35 m2 persons in Zhangli Village, Cash compensation at replacement cost residential yuan/m2 (masonry timber structure) Xiangdong Town properties Enclosing walls of 650 m2, two lighthouses, 10KV lines Infrastructure of 1.99km, 220KV lines of and 0.27km, two transformers, Proprietors Compensation at replacement cost See Table 4-4 for compensation rates. attachments communication lines of 1.48km, and gas pipelines of 0.46km 1)Vocational training, and employment 11 households, which will be Vulnerable information and guidance will be granted to Affected by LA only closed monitored during See Section 5.7. Groups laborers in vulnerable households to resettlement implementation increase their job opportunities.

27 Compensation and resettlement Type Degree of impact APs Entitlements policies 2)Unskilled jobs generated at the construction and operation stages of the Subproject will be first made available to laborers in vulnerable households. 3) The local government provides grant pensions. 4) 1% of resettlement cost will be established for vulnerable groups, if needed, by the IA.

28 5 Production and Income Restoration 5.1 Objective of Resettlement The objective of resettlement of the Subproject is to ensure that the living standard of the APs is improved or at least restored to the pre-project level.

5.2 Principles for Resettlement According to the applicable state laws and regulations, ADB’s policy on involuntary resettlement, the resettlement principles of the Subproject are: The APs are granted compensation and rights that can at least maintain or even improve their livelihoods in the absence of the Subproject. The resettlement programs should be fully consulted with the APs. The resettlement layout should be convenient for both production and livelihoods. Resettlement should be combined with local urban planning, resources and economic development, and environmental protection. Feasible measures for production and livelihood restoration and development should be taken, and necessary conditions for the personal development of APs.

5.3 LA Impacts and Resettlement Program 5.3.1 LA Impact Analysis 65.35 mu of collective land will be acquired for the Subproject, affecting 90 households with 496 persons in 3 villages in two townships of Xiangdong District, including 49.38 mu in Ganquan Village, Xiangdong Town, affecting 51 households with 224 persons; 12.26 mu in Wuli Village, Xiangdong Town, affecting 34 households with 242 persons; and 3.71 mu in Xincun Community, Xiashankou Sub-district, affecting 5 households with 30 persons. All the 3 villages affected by LA have land loss rates of below 5%, being 3.32% for Ganquan Village, Xiangdong Town, 4.83% for Wuli Village, Xiangdong Town and 1.66% for Xincun Community, Xiashankou Sub-district. The income loss rates of the affected villages are below 2%, being 1.03% for Ganquan Village, Xiangdong Town, 0.53% for Wuli Village, Xiangdong Town and 1.24% for Xincun Community, Xiashankou Sub-district. Therefore, LA has almost no income impact. See Table 5-1. Among the 90 households with 496 persons affected by LA, 34 affected households have land loss rates of less than 10%, 35 households lose rate at 10%-20%, and 21 affected households have land loss rates of 20% or more of cultivated land. The average cultivated land loss rate is 32%. See details in Table 5-2. However, the cultivated land per capita in project area is limited to 0.19 mu. Even minor acquisition of cultivated land also results in high loss rates. That is why 54 HHs will suffer in loss of more than 10% cultivated land. The socioeconomic survey also indicated that AHs’ agricultural income is mainly from orange plantation rather than rice plantation because AHs owns more hill land (1.4mu per capita) that is suitable for orange plantation. It is estimated that more than 90% of agricultural income is contributed by orange plantation. Therefore, it could infer that the family income loss of AHs is very slight that could be made up by land acquisition compensation (see Table 5-3) because cultivated land that is not main resource of agricultural income is acquired partially. Due to LA for the Subproject, Ganquan Village will have an income loss of 20,700 yuan per annum, while the LA compensation is 529,700 yuan or 25.59 times the income loss; Wuli Village will have an income loss of 11,600 yuan per annum, while the LA compensation is 299,400 yuan or 25.81 times the income loss; Xincun Community will have an income loss of 4,500 yuan per

29 annum, while the LA compensation is 117,600 yuan or 26.13 times the income loss. See Table 5-3. For MLS AHs, same to other AHs, they are only be affected by LA partially, but their livelihoods won’t be affected. For five-guarantee household, he is now being cared by local government and community. Through above-mentioned analysis, land acquisition impacts on villages and AHs are not significant.

30

Table 5-1 LA Impact Analysis6 Before LA After LA Income loss (yuan) loss per HH HH per loss Annual loss Annual loss income (%) income (%) Population Population Percentto Per Per capita Per Per capita Cultivated Cultivated Cultivated Cultivated Cultivated Cultivated per capita per area (mu) area(mu) area (mu) area(mu) area (mu) area(mu) Per capita Land Average HHs HHs AHs AHs APs APs Township Village Cultivated loss rate loss area (mu) (%)

Ganquan 682 2875 520 0.18 51 224 17.28 0.17 3.32% 20736 406.59 92.57 1.03% Xiangdong Village Town Wuli Village 4050 4928 200 0.04 34 242 9.66 0.04 4.83% 11592 340.94 47.90 0.53% Xiashankou Xincun 686 2786 222.88 0.08 5 30 3.71 0.08 1.66% 4452 890.40 148.40 1.24% Sub-district Community Table 5-2 cultivated land loss rates of AHs Land loss rate Average Affected Town Village <10% 10%-20% 20% or more land loss HHs Population HHs Population HHs Population rate HHs Population Ganquan Xiangdong 17 68 24 115 10 41 51 224 Village Town Wuli Village 15 98 8 79 11 65 32% 34 242 Xiashankou Xincun 2 12 3 18 0 0 5 30 Sub-district Community Subtotal 34 178 35 212 21 106 / 90 496 Table 5-3 Summary of LA Losses and Compensation B. LA compensation (0,000 yuan) A. Expected annual Village AHs LA area (mu) B/A income loss (0,000 yuan) Land type LA compensation Young crop Total

Ganquan Village 51 17.28 2.07 Farmland 50.38 2.59 52.97 25.59 Wuli Village 34 9.66 1.16 Farmland 28.49 1.45 29.94 25.81 Xincun Community 5 3.71 0.45 Farmland 11.20 0.56 11.76 26.13

6 1) Land loss rate = acquired land area / cultivated area 2) Annual loss = annual output value (1,200 yuan/mu in Xiangdong Town and Xiashankou Sub-district in 2018) × acquired land area 31

5.3.2 Income Resettlement Program In addition to cash compensation, income restoration measures as free skills training, employment and social security will be taken to improve their living standard. The livelihood and income restoration programs for the Subproject are as follows: 1) Cash compensation The compensation rates specified in the Uniform AAOV Rates and Location-based Composite Land Prices of Jiangxi Province (JPG [2015] No.81) will apply to the Subproject. The uniform AAOV rates in Ganquan and Wuli Villages, Xiangdong Town, and Xincun Community, Xiashankou Sub- district are 41,847 yuan/mu for irrigated land, garden land and fishponds, 28,038 yuan/mu for non- irrigated land, 14,647 yuan/mu for woodland and other farmland, and 8,370 yuan/mu for unused land. 8% of the LA compensation will be withheld for collective construction, and 92% of LA compensation will be distributed to the AHs for agricultural and nonagricultural livelihood restoration without land reallocation. 2) Skills training Most villagers in the 3 affected villages work in Xiangdong District or the urban area of Pingxiang City; laborers staying in the villages mostly deal with fruit tree cultivation, and some with poultry breeding and aquaculture. The Xiangdong PMO will develop a free agricultural and nonagricultural skills training program for LEFs together with the agriculture, social security and employment authorities, and adjust the program timely based on employment demand. Agricultural skills training mainly includes fruit tree cultivation, poultry and livestock feeding and breeding, etc. Nonagricultural skills training mainly includes bricklaying, farm machinery operation and repair, motorcycle repair, masonry, painting, welding, tailoring, concrete, waterproofing, etc. In addition, LEFs may apply for a secured startup loan to meet financial demand. 220 person-times skill training will be provided by the Subproject in total, not less than 120 person-times of trainees will be women (54.5%). See Table 5-3. Table 5-4 Skills Training Offered by the Project Women Scope of training person-times Budget (yuan) person-times Percent Fruit tree cultivation 50 25 50.0% 5000 Poultry and livestock feeding and 30 18 60.0% 3000 breeding Farm machinery operation 40 8 20.0% 4000 Cooking 40 24 60.0% 4000 Tailoring 30 30 100.0% 3000 Other 30 15 50.0% 3000 Subtotal 220 120 54.5% 22000

3) social security Endowment insurance for LEFs for the Subproject is based on the Implementation Rules of Xiangdong County for Endowment Insurance for LEFs, as detailed below: a) Premiums will be borne by the government and individual; a) Subjects: registered local rural population having attained 16 years and having a per capita cultivated area of 0.3 mu or less; c) Period of government subsidization: 15 years for LEFs aged 16-35 years, LEF’s age minus 36 plus 5 for LEFs aged 36-45 years, and 15 years for LEFs aged above 45 years. Amount of subsidy = average pay of in-service employees of Jiangxi Province in the previous year x 60% x 12% x period of subsidization.

32 The eligible affected persons could participate in social security program voluntarily.

5.4 Restoration Program for Temporary Land Occupation 22.59 mu of land will be occupied temporary for river dredging River Rehabilitation, and intercepting sewer construction and reconstruction in Water Environment Management, including 5.15 mu of irrigated land, 15.87 mu of non-irrigated land and 1.57 mu of grassland. Any occupied farmland will be reclaimed by the land user.

5.5 Resettlement Program for Non-residential Properties A 35 m2 abandoned property in masonry timber structure in Zhangli Village, Xiangdong Town will be demolished for the Subproject. The AH has moved to the urban area of Pingxiang City. Based on consultations, it will be subject to cash compensation.

5.6 Restoration Measures for Vulnerable Groups In addition to the above resettlement policies, vulnerable groups affected by the Subproject will also be entitled to some preferential policies: 1) Vocational training, and employment information and guidance will be granted to laborers in vulnerable households to increase their job opportunities. 2) Unskilled jobs generated at the construction and operation stages of the Subproject will be first made available to laborers in vulnerable households. 3) The local government will grant pensions. 4) 1% of resettlement cost will be earmarked to establish a supporting fund for vulnerable groups by the IA. This fund will be managed by the IA and be used together with local government poverty alleviation fund.

33 6 Public Participation and Grievance Redress Great importance is paid to public participation and consultation at the preparation and implementation stages in order to protect the lawful rights and interests of the APs, reduce grievances and disputes, and realize the resettlement objectives properly. 6.1 Public Participation at the Preparation Stage Since the initiation of the Subproject, the Xiangdong PMO, Xiangdong District Water Resources Bureau, affected township governments, Guangzhou Zhurong Engineering Design Co., Ltd. (feasibility study agency), Dongguan Water Resources Survey & Design Institute (design agency), and the task force have conducted a series of socioeconomic survey and public consultation activities. The main concerns of the APs are the compensation rates and the payment of compensation and have been addressed at village meetings. All APs support the Subproject. See Table 6-1.

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Table 6-1 Public Participation at the Preparation Stage Date Organizer Participants N Females Purpose Key points Suggestions Actions Introducing the Minimizing impacts on Adjusting the scope of Xiangdong Feasibility study background and income and livelihoods, construction to reduce Dec. APs, village PMO, FS and and preliminary purpose of the and keeping project resettlement impacts, and 2018~Mar. officials, 45 20 design design, field visit, Subproject, and information and disclosing resettlement 2019 technicians agencies DMS minimizing resettlement policies policies in the subproject resettlement impacts transparent area Making the APs fully Reps. of Adjusting compensation Notifying and aware of the Xiangdong government Notifying LA and modes in full Mar. 2019 32 16 coordinating LA and Subproject’s LA and HD PMO agencies and HD impacts consideration of the APs’ HD matters impacts, compensation APs expectations modes, etc. Notifying and Discussing Reps. of Discussing discussing LA and HD compensation modes, Explaining the Xiangdong government Apr. 2019 38 20 compensation matters, and and how compensation compensation distribution PMO agencies and modes coordinating relevant is distributed and paid and payment procedure APs issues with the APs Appraising houses Ensuring the and attachments Appraising houses and Appraising the AHs’ Xiangdong Appraisal transparency and Apr. 2019 20 11 to improve the HD attachments to be houses and attachments PMO agency, APs openness of appraisal restoration demolished fairly and justly results program Further improving Learning project Xiangdong compensation programs, May and Village officials, Completing and progress, LA and HD Completing the RP based PMO, task 55 23 and strengthening the Jun. 2019 reps. of APs submitting the RP impacts, and on the fieldwork force capacity building of socioeconomic profile resettlement agencies

35

6.2 Public Participation at the Implementation Stage With the progress of project preparation and implementation, the Xiangdong PMO, affected township governments, and village / community committees will conduct further public participation, mainly including discussing compensation rates, offering training to the APs, collecting comments and expectations, disclosing appeal channels, learning RP implementation and livelihood restoration, etc. See Table 6-2.

Table 6-2 Public Participation Plan Purpose Mode Time Agencies Participants Topic Disclosing RP or RIB compensation Distribution 2019.09 PMO All APs distribution rates, appeal channels, etc. RP disclosure ADB website 2019.09 ADB Online disclosure PMO, land and Disclosure of LA Bulletin resources bureau, LA area, compensation LA board, village 2019.09 management office, All APs rates and announcement meeting village / community resettlement committees modes, etc. PMO, land and Disclosing LA Bulletin resources bureau, LA compensation and compensation board, village 2019.09 management office, All APs payment date announcement meeting village / community committees PMO, land and Discussing the final Determination resources bureau, LA income restoration Village of restoration 2019.09 management office, All APs program and the meeting programs village / community program for use of committees compensation fees PMO, land and Notifying Notification of resources bureau, LA compensation and compensation Village 2019.09 management office, All APs payment date and payment meeting village / community date committees PMO, land and Discussing training Training Village 2019.9- resources bureau, needs and schedule All APs program meeting 2020.9 village / community committees PMO, land and Learning RP resources bureau, Randomly implementation, 2019.09- Monitoring Survey village / community sampled livelihood 2024.12 committees, external APs restoration, etc. M&E agency

6.3 Grievance Redress Mechanism Since public participation is encouraged during the preparation and implementation of the RP, no substantial dispute will arise. However, unforeseeable circumstances may arise during this process. In order to address issues effectively, and ensure the successful implementation of project construction and LA, a grievance redress mechanism has been established, and notified to the APs by various means such as village meetings, resettlement information booklet, and poster on village board, and so on.

36 6.4 Grievance Redress Channels and Procedure The APs enjoy the citizenship rights endowed by the constitution and laws, and have the right to file an appeal when their rights and interests are infringed on. 1) Appeal channels a) Offices for letters and calls at the district to provincial levels, which accept, investigate and handle ordinary appeals; b) Independent M&E agency, which accepts and reports appeals to competent authorities; c) State, provincial and municipal supervision, audit, disciplinary inspection, judicial and other legal authorities, which accept appeals. 2) Grievance redress procedure The basic grievance redress procedure is as follows: Stage 1: If any right of an AP is infringed on in respect of LA or resettlement, he/she may report to the village committee to solve the appeal within two weeks. Stage 2: If the grievant is dissatisfied with the reply of Stage 1, he/she may file an appeal with the town government after receiving the above disposition, which shall make a disposition within two weeks. Stage 3: If the grievant is dissatisfied with the reply of Stage 2, he/she may file an appeal with the Xiangdong District Land and Resources Bureau or Xiangdong PMO after receiving the above disposition, which shall make a disposition within two weeks. Stage 4: If the grievant is still dissatisfied with the disposition of Stage 3, he/she may file an appeal with the competent authorities level by level for arbitration in accordance with the Administrative Procedure Law of the PRC after receiving the above disposition. If any AP may also file an appeal with the Office of the Special Facilitator or Compliance Review Panel of ADB in accordance with ADB’s accountability mechanism (www.adb.org/Accountability- Mechanism/). The APs may file appeals about any aspect of resettlement, including compensation rates. All agencies will accept grievances and appeals from the APs for free, and costs so reasonably incurred will be disbursed from contingencies. During the entire RP implementation period, these appeal procedures will remain effective to ensure that the APs can use them to address relevant issues to land acquisition and resettlement. The above grievance redress system will be communicated to the APs at a meeting or through the RIB, so that the APs know their right of appeal. In addition, the appeal process will be published to affected population on mass media. The Xiangdong PMO will inspect the registration of appeal and handling information regularly, and has prepared a registration form for this purpose. See Table 6-3 and Figure 6-1.

Table 6-3 Registration Form of Grievances and Appeals Accepting agency: Time: Location: Proposed Actual Appellant Appeal Expected solution solution handling

Recorder Appellant (signature) (signature) Notes: 1. The recorder should record the appeal and request of the appellant factually. 2. The appeal process should not be interfered with or hindered whatsoever. 3. The proposed solution should be notified to the appellant within the specified time.

37

Figure 6-1 Grievance Redress Mechanism for Safeguard Issues

6.5 Contact Information for Grievance Redress The resettlement agencies have appointed contacts to accept and handle grievances and appeals, and the relevant information is shown in Table 6-4.

Table 6-4 List of Contacts No. Agency Title Name Tel Remarks Responsible for 1 Xiangdong PMO Member Jin Bo 18979923508 social and resettlement affairs Xiangdong District Water Resources Responsible for LA 2 Member Zhong Jiajian 13030564538 Bureau / Land and and HD Resources Bureau Xiangdong District 3 Environmental Member Lai Dan 13907996051 Protection Bureau Water 4 Xiangdong Town management Li Ruibin 13879913778 station master Xiashankou Sub- 5 Wan Jian 13979909097 district Peng 6 Ganquan Village Head 13807997688 Chunliang 7 Wuli Village Head Zou Jianjun 13979968825 8 Xincun Community Head Yao Zhiliang 13879949110

38 7 Resettlement Budget 7.1 Resettlement Budget In the general budget of the Subproject, direct resettlement costs include LA compensation, compensation for temporary land occupation, compensation for non-residential properties, compensation for ground attachments, management costs, training costs, taxes, contingencies, etc. All costs incurred during LA and resettlement will be included in the resettlement budget of the Subproject. Based on prices in 2019, the resettlement budget is 5.5511 million yuan ($804,426); including LA and HD compensation, land taxes, monitoring costs, contingencies, etc. LA compensation: 1.2455 million yuan or 22.44% of the resettlement budget; Compensation for temporary land occupation: 79,100 yuan or 1.42% of the resettlement budget; Compensation for non-residential properties: 16,100 yuan or 0.29% of the resettlement budget; Compensation for infrastructure and ground attachments: 913,700 yuan or 16.46% of the resettlement budget; Land taxes: 2.6343 million yuan or 47.46% of the resettlement budget; and Supporting fund for vulnerable groups, management costs, resettlement monitoring and planning costs, training costs, contingencies: 504,900 yuan or 9.10% of the resettlement budget See Table 7-1 and Appendix 6.

Table 7-1 Resettlement Budget The Subproject Water Environment No. Item River Rehabilitation Percent Management Subtotal Qty. Compensation Qty. Compensation 1 Basic resettlement costs 1626651.99 627697.43 2254349.42 40.61% 1.1 LA compensation 53.09 937471.99 12.26 308012.43 1245484.42 22.44% Compensation for 1.2 17.88 62580.00 4.71 16485.00 79065.00 1.42% temporary land occupation Compensation for non- 1.3 35 16100.00 0.00 0.00 16100.00 0.29% residential properties Compensation for 1.4 / 610500.00 / 303200.00 913700.00 16.46% attachments Supporting fund for 1% of basic 1% of basic 2 16266.52 6276.97 22543.49 0.41% vulnerable groups costs costs 3% of basic 3% of basic 3 Management costs 48799.56 18830.92 67630.48 1.22% costs costs Resettlement monitoring 2% of basic 2% of basic 4 32533.04 12553.95 45086.99 0.81% and planning costs costs costs Training costs, towards 1% of basic 1% of basic 5 livelihood restoration and 16266.52 6276.97 22543.49 0.41% costs costs skill development 6 LA taxes / 2020717.14 / 613570.34 2634287.48 47.46% 7 Subtotal of Items 1-6 / 3761234.77 / 1285206.59 5046441.36 90.91% 10% of Items 10% of Items 8 Contingencies 376123.48 128520.66 504644.14 9.09% 1-6 1-6 9 Total 4137358.25 1413727.25 5551085.50 100.00%

39 The Subproject Water Environment No. Item River Rehabilitation Percent Management Subtotal Qty. Compensation Qty. Compensation 10 Percent (%) 74.53% 25.47% 100.00%

7.2 Annual Investment Plan Before project construction or during project implementation, the investment plan will be implemented in stages in order not to affect the production and livelihoods of the AHs. See Table 7- 2.

Table 7-2 Resettlement Investment Plan (unit: 0,000 yuan) Year 2019 2020 2021 Subtotal Investment 166.533 166.533 222.044 555.11 Percent 30% 30% 40% 100%

7.3 Funding Sources and Disbursement 7.3.1 Disbursement of Resettlement Funds Resettlement funds will be disbursed as follows: All costs related to LA will be included in the general budget of the Subproject. The Xiangdong PMO will disburse compensation fees based on the compensation rates directly to the township governments and then to the AHs. LA compensation will be paid before LA. Land compensation, resettlement subsidy and young crop compensation will be paid directly to the AHs, and compensation for infrastructure and attachment compensation paid to proprietors. 7.3.2 Management of Resettlement Funds To ensure that the resettlement funds are available timely and fully, and the APs’ production, livelihoods and income are restored, the following measures will be taken: 1) All costs related to resettlement will be included in the general budget of the Subproject. 2) Land compensation and resettlement subsidies will be paid up before LA so that all APs can be resettled properly. 3) Compensation for non-residential properties will be paid to proprietors after the signing of compensation agreements at a time. 4) In order to ensure the successful implementation of LA and resettlement, financial and supervisory agencies will be established at all levels to ensure that all funds are disbursed timely and fully. 5) XDG will establish a special account for fund repayment. Any government debt to be repaid from public finance will be included in the annual fiscal budget of Xiangdong District and repaid by the district finance bureau under the guarantee and supervision of the provincial finance department. 6) The external M&E agency will conduct monitoring on the payment of compensation fees to the AHs.

40 8 Organizational Structure 8.1 Resettlement Agencies To ensure successful resettlement as desired, a systematic organizational structure must be established during project implementation in order to plan, coordinate and monitor resettlement activities. The agencies responsible for resettlement planning, management, implementation and monitoring are as follows:  Pingxiang Project Leading Group  Xiangdong PMO (Xiangdong District Water Resources Bureau)  Xiangdong District Land and Resources Bureau  Xiangdong Town Government and Xiashankou Sub-district  Affected village / community committees  Affected households and/or entities  Design agency  External M&E agency  Other agencies: construction bureau, women’s federation, labor and social security bureau

Pingxiang Project Leading Group

Xiangdong PMO External M&E agency

Xiangdong District Land Government agencies and Resources Bureau concerned

Township governments

Village / community committees

APs

Figure 8-1 Organizational Chart

8.2 Organizational Responsibilities  Pingxiang Project Leading Group Responsible for coordination, decision-making and leadership  Xiangdong PMO (Xiangdong District Water Resources Bureau) (i) Appointing a resettlement consulting agency to prepare the RP; (ii) Coordinating the consulting agency with other agencies at the preparation stage; (iii) Coordinating the implementation progress of the Subproject and the RP;

41 (iv) Reporting the resettlement fund disbursement plan and supervising the disbursement of funds; (v) Coordinating the work of the resettlement agencies; (vi) Raising resettlement funds and disbursing funds timely; (vii) Disbursing resettlement funds; (viii) Responsible specifically for resettlement implementation; (ix) Tracking and supervising the disbursement of resettlement funds; (x) Handling grievances and appeals of APs arising from resettlement; (xi) Supporting the work of the external M&E agency; (xii) Collecting and compiling information required for internal monitoring reporting; (xiii) Managing resettlement files  Xiangdong District Land and Resources Bureau (i) Developing the resettlement policies in coordination with departments concerned; (ii) Taking full charge of LA affairs (including endowment insurance for LEFs); (iii) Participating in the DMS; (iv) Supervising the implementation of resettlement activities  Township governments (i) Participating in the DMS (ii) Participating in compensation calculation (iii) Participating in compensation payment (iv) Handling grievances and appeals (v) Organizing skills training for APs (vi) Implementing employment measures for APs  Village / community committees (i) Participating in the DMS (ii) Participating in compensation calculation (iii) Participating in compensation payment (iv) Handling grievances and appeals (v) Organizing skills training for APs (vi) Implementing employment measures for APs  Design agency (i) Reducing resettlement impacts by optimizing the project design (ii) Identifying the range of LA and HD  External M&E agency (i) Conducting follow-up M&E on resettlement activities during RP implementation (ii) Monitoring resettlement progress, quality and funding, and giving advice (iii) Verifying data and conclusions in internal monitoring reports (iv) Submitting an M&E report to the Pingxiang and Xiangdong PMOs semiannually

8.3 Staffing and Equipment 8.3.1 Staffing In order to ensure the successful implementation of resettlement, all resettlement agencies of the Subproject have been provided with full-time staff, and a smooth channel of communication has been established. The resettlement staff has strong organizing and coordinating capabilities, and rich experience in resettlement, and is competent for the resettlement work.

42 Table 8-1 Staffing of Resettlement Agencies Agency Head Workforce Females Pingxiang Project Leading Group Deputy mayor 10 0 Xiangdong District Environmental Protection Deputy director-general Bureau Xiangdong PMO Deputy director-general 3 1 Xiangdong District Water Resources Bureau Deputy director-general 2 1 Xiangdong District land and Resources Bureau Deputy director-general 3 1 Xiangdong Town Government, Xiashankou Sub- 2 Deputy township head 4 district Office Affected village / community committees / 6 2

8.3.2 Equipment All resettlement agencies have been provided basic office, transport and communication equipment, including desks and chairs, PCs, printers, telephones, facsimile machines and vehicles.

8.4 Measures to Strengthen Institutional Capacity In order to implement resettlement successfully, the APs and resettlement staff must be trained under a program developed by the Xiangdong PMO. Training will be given in such forms as workshop, training course, visit of similar projects and field training, and will cover:  Principles and policies of resettlement  Differences between the ADB policy and PRC laws  Resettlement implementation planning, design and management  Precautions during resettlement implementation  Resettlement M&E

Table 8-2 Training Program of Resettlement Agencies Time Venue Mode Trainees Scope Resettlement operations Sep 2019 Xiangdong Workshop Resettlement staff training Sep. 2019 – Discussing resettlement Xiangdong Seminar Resettlement staff July 2020 experience and issues Dec 2019 – Learning latest resettlement Xiangdong Workshop Resettlement staff July 2020 policies and requirements

In addition, the following measures will be taken to improve capacity: 1) Define the responsibilities and scope of duty all resettlement agencies, and strengthen supervision and management; 2) Improve the strength of all resettlement agencies gradually, especially technical strength; all staff must attain a certain level of professional proficiency and management level; improve their technical equipment, such as PC, monitoring equipment and means of transportation, etc.; 3) Select staff strictly, and strengthen operations and skills training for management and technical staff of all resettlement agencies to improve their professional proficiency and management level; 4) Appoint women officials appropriately, and give play to women’s role in resettlement implementation; 5) Establish a database and strengthen information feedback to ensure a smooth information flow, and leave major issues to the Leading Group; 6) Strengthen the reporting system and internal monitoring, and solve issues timely; and

43 7) Establish an external M&E mechanism and an early warning system.

44 9 Resettlement Implementation Schedule 9.1 Work before Construction Activities According to the project implementation schedule, the Subproject will be constructed for 12 months, and resettlement will be conducted from September 2019 to September 2020. And then, the implementation of livelihood restoration is expected to be completed by September 2021.The basic principles for resettlement implementation are as follows:  LA should be completed at least one month prior to the commencement of construction, and the starting time will be determined as necessary.  During resettlement, the APs shall have opportunities to participate in the Subproject. Before the commencement of construction, the range of LA will be disclosed, the RIB distributed and public participation activities conducted properly.  All compensation fees will be paid to the affected proprietors directly and fully within 3 months of approval of the resettlement and compensation program. No organization or individual should use compensation fees on their behalf, nor should compensation fees be discounted for any reason. 9.2 Resettlement Implementation Schedule The general resettlement schedule of the Subproject has been drafted based on the progress of project construction, LA and HD, and resettlement preparation and implementation. The exact implementation schedule may be adjusted due to deviations in overall project progress. See Table 9-1.

Table 9-1 Resettlement Implementation Schedule Agencies No. Task Target Time responsible A Consultation and information disclosure 1 RIB distribution 3 affected villages Xiangdong PMO Sep. 2019 RP disclosure All affected villages 2 Xiangdong PMO Sep. 2019 and persons RP disclosure on ADB’s All affected villages ADB, Pingxiang 3 Sep. 2019 website and persons PMO B Capacity building Establishing township 4 Xiangdong PMO Oct. 2019 resettlement teams Capacity building of 5 15 persons Xiangdong PMO Oct. 2019 resettlement team Appointing village / community 6 All affected villages Task force Oct. 2019 leaders C Resettlement Signing agreements with the Task force, land and 7 All affected villages Oct. 2019 affected villages and persons resources bureau 8 Start Task force Oct. 2019 Paying compensation Oct. 2019 – Apr. 9 Task force 2020 10 Livelihood restoration AHs and villages Task force By Sep 2021 11 End Task force Aug. 2020 D M&E Internal monitoring and Pingxiang and Mar. and Sep. 12 Semiannual report reporting Xiangdong PMOs during 2020-2024 Establishing an internal 13 Xiangdong PMO Oct. 2019 monitoring system 14 Baseline survey 20% of AHs and 50% External M&E Oct 2019

45 of affected villages agency External monitoring and External M&E Mar. and Sep. 15 Semiannual report reporting agency during 2020-2024 16 Completion of project report Report Pingxiang PMO Dec. 31, 2024 E Public consultation Xiangdong PMO Ongoing F Grievance redress Xiangdong PMO Ongoing

46 10 M&E In order to ensure the successful implementation of the RP and realize the objectives of resettlement properly, LA, HD and resettlement activities of the Subproject will be subject to periodic M&E according to ADB’s resettlement policy, including internal and external monitoring. 10.1 Internal Monitoring 10.1.1 Purpose Internal monitoring aims to make the resettlement agencies function properly at the implementation stage, supervise and monitor the whole process of RP preparation and implementation, and ensure that resettlement is conducted according to the RP on schedule, thereby ensuring the successful construction of the Subproject. 10.1.2 Agencies and Staff The internal monitoring agencies are the Xiangdong PMO, and other agencies concerned (e.g., Xiangdong District Water Resources Bureau, and Land and Resources Bureau), which will have experienced and competent full-time leaders responsible for resettlement and coordination. 10.1.3 Scope The Xiangdong PMO will prepare a detailed internal monitoring program that includes: 1) Payment, use and availability of LA compensation, and progress and quality of resettlement; 2) Investigation and coordination of major issues of resettlement agencies during resettlement; 3) Income restoration after resettlement; 4) Restoration of vulnerable groups; 5) Payment, use and availability of resettlement funds; 6) Restoration and reconstruction of infrastructure, ground attachments and special facilities; 7) Level of public participation and consultation during resettlement; 8) Resettlement training and effectiveness; and 9) Training, working time and efficiency of resettlement agencies 10.1.4 Reporting The Xiangdong PMO will submit an internal monitoring report to the Pingxiang PMO quarterly, which will in turn submit the report to ADB. Such report should indicate the statistics of the past 6 months in tables, and reflect the progress of LA, HD, resettlement and use of compensation fees through comparison. Tables 10-1 and 10-2 provide some formats.

Table 10-1 Sample LA and HD Schedule ______, ______Township, ______District (County) Cut-off date: MM/DD/YY Date of completion: MM/DD/YY Percentage of Item Unit Planned Actual Total completion Permanent LA mu Temporary land occupation mu Payment of LA compensation 0,000 yuan Training Person Employment arrangement Person Land reallocation mu Reported by: ______Signature (person responsible): ______Official seal:

Table 10-2 Sample Fund Use Schedule ______, ______Township, ______District (County) Cut-off date: MM/DD/YY

47 ______, ______Township, ______District (County) Date of completion: MM/DD/YY Required Compensation Unit/ Adjusted Percentage of Affected enterprise Description investment received qty. compensation compensation (yuan) (yuan) Permanent LA Temporary land occupation Payment of LA compensation Training Employment arrangement Land reallocation

10.2 External Monitoring Zhongrui is the external resettlement and social M&E consulting agency of the Jiangxi Pingxiang Integrated Rural-Urban Infrastructure Development Project. Zhongrui entered into a contract with the Pingxiang PMO in April 2018, and will provide consulting services for the Project according to the terms of reference and the contract at the implementation stage. The external M&E agency will conduct follow-up M&E of resettlement activities periodically, monitor resettlement progress, quality and funding, and give advice. It will also conduct follow-up monitoring of the APs’ production level and living standard, and submit M&E reports to the Xiangdong PMO and ADB. Zhongrui will prepare a resettlement completion report after 1 year of the completion of the implementation of the resettlement plan provisions. 10.2.1 Scope and Methods 1) Baseline survey The external M&E agency will conduct a baseline survey of the affected villages and village groups affected by LA to obtain baseline data on the monitored APs’ production level and living standard. The production level and living standard survey will be conducted semiannually to track variations. This survey will be conducted using such methods as survey (sample size: 20% of the households affected by LA to be sampled and shall include all the vulnerable AHs), random interview and field observation to acquire necessary information. A statistical analysis and an evaluation will be made on this basis. 2) Periodic M&E During the implementation of the RP, the external M&E agency will conduct periodic follow-up resettlement monitoring semiannually of the following activities by means of field observation, household surveys and random interview:  Payment and amount of compensation fees;  Training;  Support for vulnerable groups;  Restoration and rebuilding of infrastructure and special facilities;  Production resettlement and restoration;  Compensation for lost assets;  Compensation for lost working hours;  Timetables of the above activities (applicable at any time);  Resettlement organization;  Use of compensation fees for collective land and income of APs;  Income growth of labor through employment

48 3) Public consultation The external M&E agency will attend public consultation meetings held during resettlement implementation to evaluate the effectiveness of public participation. 4) Grievance redress The external M&E agency will visit the affected villages and groups periodically, and inquire the resettlement agencies that accept grievances about how grievances have been handled. It will also meet complainants and propose corrective measures and advice for existing issues so as to make the resettlement process more effective. In addition, the external M&E agency will verify data and conclusions in internal monitoring reports. 5) Information disclosure of external M&E reports The external M&E agency will compile a brief abstract of the key findings of each external M&E report, and distribute it directly to the APs for comment. 10.2.2 External M&E Indicators The external M&E agency will monitor the following indicators, and evaluate the effectiveness of resettlement through comparison. See Table 10-3.

Table 10-3 External M&E Indicators No. Aspect Item Core indicators Permanent LA and ①Construction land  Relevant approval document temporary land approval and handover  LA area, types and impacts occupation impacts  Land demand and acquired land area ②Temporary land  Area and types of temporarily occupied land 1 occupation  Actual vs. planned ③LA compensation  LA compensation rates rates  Compensation rates for temporary land occupation  Occupation period and restoration measures Livelihood and ①Compensation  Compensation payment income restoration payment  Use of compensation by village groups ②Land area change  Change in per capita land area  Land reallocation (if any)  Quality and distance of reallocated land ③Production  Impact on farmers’ production mode resettlement  Number of nonagricultural employees  Change in crop cultivation  Impact on stockbreeding 2 ④Income change  Per capita net income of farmers  Per capita disposable income of urban residents ⑤Employment  Proportion of local residents employed during implementation  Proportion of women participating in the Subproject  Number of laborers working outside ⑥Training  Quantity, type and time of training  Number of trainees and training effect ⑦Satisfaction with  Sampling satisfaction survey resettlement Fund availability ①Fund availability  Fund disbursement for permanent LA and temporary and use land occupation 3 ②Fund use  Fund use by village collectives  Fund disbursement Resettlement of Resettlement issues  Other aspects needing special support vulnerable groups and special supporting 4 measures

49 No. Aspect Item Core indicators Grievances and Subproject area  Timely response to grievances and appeals, and appeals number handled timely 5  Competent staff  Timely reporting Public consultation Subproject area  Frequency, number of participants, time, venue, key and information topics and effects of public participation activities at 6 disclosure the implementation stage  Mode and scope of information disclosure, and feedback Organizational Coordination  Workforce working on the Subproject setup  Coordination meeting and follow-up 7  Capacity training for project leaders  Monitoring, preparation and report submission Grievance redress Grievance redress  Timely response to grievances and appeals, and mechanism number handled timely 8  Competent staff  Timely reporting

10.2.3 Reporting The external M&E agency will submit semi-annual monitoring reports and completion report to ADB and the Pingxiang and Xiangdong PMOs semiannually. See Table 10-4.

Table 10-4 Resettlement M&E Schedule Report Date 1 Baseline socioeconomic survey report Oct. 20 2 Monitoring report (No.1) Mar. 2020 3 Monitoring report (No.2) Sep. 2020 4 Evaluation report (No.3) Mar. 2021 5 Evaluation report (No.4) Sep. 2021 6 Completion report Dec. 2022

50 Appendixes Appendix 1 Reply of the Jiangxi Provincial Development and Reform Commission on the Feasibility Study Report of the Subproject

51 Appendix 2 General Layout of the Subproject

52 Appendix 3 Request for Instructions on Establishing the Subproject Construction Headquarters and Reply

53 Appendix 4 Interview Minutes

Date May 8, 2019 Venue Wuli Village Committee, Xiangdong Town Organizer Xiangdong PMO Interviewee Village head Participants Village officials Topics Socioeconomic profile of Wuli Village, land information, LA impacts, villagers’ attitude to LA compensation Key points 1) Socioeconomic profile: This village has 4,928 persons, in which 60% are males and 60%- and results 70% laborers. Villagers’ main income source is outside employment, including in and out of the province, where those working out of the province work in the Pearl River Delta mainly. Per capita annual outside employment income is 30,000-40,000 yuan, and per capita annual disposable income 6,000-7,000 yuan. The main crop is paddy rice, with an annual output of 400-500 kg/mu. 2) Land information: This village has about 200 mu of cultivated land (most of its land has been acquired for prior projects), and a per capita cultivated area of 0.04 mu only. 3) LA impacts: Zhangmuqiao and Xintang Groups will be affected by LA. No vulnerable group will be affected. 4) The LA compensation will be paid by the town government directly to the AHs without being withheld by the village collective. 5) Villagers’ attitude to LA compensation: According to interviews, villagers are aware of LA information to some extent, and support LA. (The farmland to be acquired for the Subproject has been mostly abandoned, so LA will not have any major negative livelihood and income impact.)

Date May 8, 2019 Venue Zhangli Village Committee, Xiangdong Town Organizer Xiangdong PMO Interviewee Village head Participants Village officials Topics Socioeconomic profile of Zhangli Village, land information, LA impacts, villagers’ attitude to LA compensation Key points 1) Socioeconomic profile: This village has 17 groups and over 1,500 households with over 6,200 and results persons. Villagers’ main income source is outside employment, including in and out of the province, with per capita annual outside employment income of 40,000 yuan. Those dealing with fruit cultivation in the village earn 20,000-30,000 yuan annually. 2) This village has only 50 mu of cultivated land, because its land was acquired successively for urban development and school construction purposes during 2011-2018. The village head said that the land on both banks of the river segment under the Subproject had been acquired, but this will be further verified. The LA compensation will be paid by the town government directly to the AHs. 3) Zhangjiang Group will be affected by LA mainly, where a non-residential property of Zhang

54 Yongkang’s family will be demolished. 4) Villagers’ attitude to LA compensation: According to interviews, villagers are aware of LA information to some extent, and support LA.

Date May 8, 2019 Venue Ganquan Village Committee, Xiangdong Town Organizer Xiangdong PMO Interviewee Village head Participants Village officials Topics Socioeconomic profile of Ganquan Village, land information, LA impacts, villagers’ attitude to LA compensation Key points 1) Socioeconomic profile: There are some public enterprises, two individual quarries, a primary and results school, and 3 groceries in the village. The whole village is covered by highways, water and power supply, and communication networks. In 2018, the village’s per capita income was 9,000 yuan and collective income 100,000 yuan. 2) Land information: This village has 520 mu of cultivated land, used for paddy rice cultivation mainly, and a per capita cultivated area of 0.18 mu. 3) Over 40 households in Yangjiawan, Shanglong and Xialong Groups will be affected by the Subproject, and an old bridge and some telegraph poles in this village will be demolished. The LA compensation will be paid by the town government directly to the AHs. 4) Villagers’ attitude to LA compensation: According to interviews, villagers are aware of LA information to some extent, and support LA, because most of them no longer deal with farming.

55 Appendix 5 Notice of the Jiangxi Provincial Government on Adjusting Uniform AAOV Rates and Location-based Composite Land Prices for Land Acquisition

56

57 Appendix 6 Detailed Resettlement Budget

The Subproject Compensation Water Environment No. Item Unit River Rehabilitation rate (yuan/unit) Management Total Percent Qty. Amount Qty. Amount 1 Basic resettlement costs 627697.43 2254349.42 40.61% 1.1 LA compensation 53.09 937471.99 12.26 308012.43 1245484.42 22.44% 1.1.1 Irrigated land (incl. crops) mu 41847.00 1.98 82857.06 1.02 42683.94 125541.00 2.26% 1.1.2 Non-irrigated land (incl. crops) mu 28038.00 19.01 533002.38 8.64 242248.32 775250.70 13.97% 1.1.3 Garden land (incl. crops) mu 41847.00 0.95 39754.65 0 0.00 39754.65 0.72% 1.1.4 Woodland mu 14647.00 0.7 10252.90 0.21 3075.87 13328.77 0.24% 1.1.5 Grassland mu 8370.00 29.95 250681.50 2.39 20004.30 270685.80 4.88% 1.1.6 Fishpond mu 41847.00 0.5 20923.50 0 0.00 20923.50 0.38% Compensation for temporary land 1.2 17.88 62580.00 4.71 16485.00 79065.00 1.42% occupation 1.2.1 Irrigated land mu 3500.00 4.23 14805.00 0.92 3220.00 18025.00 0.32% 1.2.2 Non-irrigated land mu 3500.00 12.63 44205.00 3.24 11340.00 55545.00 1.00% 1.2.3 Grassland mu 3500.00 1.02 3570.00 0.55 1925.00 5495.00 0.10% Compensation for non-residential 1.3 35.00 16100.00 16100.00 0.29% properties 1.3.1 Masonry timber structure m2 460.00 35.00 16100.00 16100.00 0.29% 1.4 Attachment compensation 610500.00 303200.00 913700.00 16.46% 1.4.1 Enclosing wall m2 120.00 650 78000.00 0 0.00 78000.00 1.41% 1.4.2 Lighthouse / 30000.00 2 60000.00 0 0.00 60000.00 1.08% 1.4.3 10KV line km 180000.00 1.15 207000.00 0.84 151200.00 358200.00 6.45% 1.4.4 220V line km 150000.00 0.16 24000.00 0.11 16500.00 40500.00 0.73% 1.4.5 Transformer / 20000.00 2 40000.00 0 0.00 40000.00 0.72% 1.4.6 Communication line km 150000.00 0.86 129000.00 0.62 93000.00 222000.00 4.00% 1.4.7 Gas pipeline km 250000.00 0.29 72500.00 0.17 42500.00 115000.00 2.07% Supporting fund for vulnerable 1% of basic 2 / / 16266.52 / 6276.97 22543.49 0.41% groups costs 3% of basic 3 Management costs / / 48799.56 / 18830.92 67630.48 1.22% costs

58 Resettlement monitoring and 4 32533.04 12553.95 45086.99 0.81% planning costs 4.1 RP preparation costs / 1% of basic costs / 16266.52 / 6276.97 22543.49 0.41% 4.2 Resettlement M&E costs / 1% of basic costs / 16266.52 / 6276.97 22543.49 0.41% Training costs (including APs and 1% of basic 5 / / 16266.52 / 6276.97 22543.49 0.41% agencies) costs 6 LA taxes 2020717.14 613570.34 2634287.48 47.46% yuan/mu 6.1 (irrigated 18096 1.98 35830.08 1.02 18457.92 54288.00 0.98% land) Land reclamation costs yuan/mu (non- 6.2 12124 19.01 230477.24 8.64 104751.36 335228.60 6.04% irrigated land) 6.3 Farmland occupation tax yuan/mu 16666 20.99 349819.34 9.66 160993.56 510812.90 9.20% Compensation for using additional 6.4 yuan/mu 16008 53.09 849864.72 12.26 196258.08 1046122.80 18.85% construction land Compensation for temporary land 6.5 yuan/mu 2 17.88 35.76 4.71 9.42 45.18 0.00% occupation 6.6 Forest vegetation restoration costs yuan/mu 4000 0.7 2800.00 0.21 840.00 3640.00 0.07% 6.7 Social security costs yuan/mu 10000 53.09 530900.00 12.26 122600.00 653500.00 11.77% 6.8 Flood security funds yuan/mu 1000 20.99 20990.00 9.66 9660.00 30650.00 0.55% 7 Subtotal of Items 1-6 3761234.77 1285206.59 5046441.36 90.91% 8 Contingencies 10% of Items 1-6 376123.48 128520.66 504644.14 9.09% 9 Total 4137358.25 1413727.25 5551085.50 100.00% 10 Percent (%) 74.53% 25.47% 100.00%

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