46040-003: Yunnan Pu'er Regional Integrated Road Network

Social Monitoring Report

2nd Semestral Report Project Number: 46040-003 February 2018

PRC: Yunnan Pu’er Regional Integrated Road Network Development Project

Prepared by Yunnan Academy of Scientific and Technical Information for the Yunnan Pu’er Municipal Government and the Asian Development Bank

This social monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Director, 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 Loan

Yunnan Pu’er Regional Integrated Road Network

Development Project

(RRP PRC 46040)

Ethnic Minority Development Plan Monitoring Report (2017)

Yunnan Academy of Scientific and Technical Information

February 2018

Contents

1. Introduction ...... 1

1.1 Project Overview ...... 1

1.2 Major Project Impact and Action Plan ...... 2

2. Monitoring Methods ...... 4

2.1 Monitoring Objectives ...... 4

2.2 Monitoring Methods ...... 5

2.3 Monitoring Framework Design ...... 6

2.4 Data Collection ...... 10

2.5 Monitoring Process ...... 11

3. Socioeconomic Development in the Project Area ...... 15

3.1 Overview of the Project Area ...... 15

3.2 Indicators of Economic Development ...... 16

3.3 Industry Development ...... 18

4. Monitoring on the Impact of EMDP ...... 24

4.1 Project Impact on Local Community ...... 24

4.2 Ethnic Minorities and Impoverished Population ...... 28

4.3 Transport Condition of the Project Area ...... 34

4.4 Influence on Farmers’ Production and Life ...... 54

4.5 Land Acquisition, House Demolition and Resettlement ...... 66

4.6 Other Impact ...... 80

5. Monitoring Conclusion ...... 86

5.1 Assessment to the Implementation of Action Plan ...... 86

5.2 Problems ...... 86

5.3 Conclusion ...... 87

5.4 Suggestions on Project Implementation ...... 88

Appendix 1 Checklist of EMDP ...... 90 Appendix 2 Number of Employees ...... 100 Appendix 3 Number of Nontechnical Employees ...... 101

Appendix 4 Salary Standard of Workers of NJL Road ...... 102 Appendix 5 Salary Standard of Workers of Meng’a Road ...... 103 Appendix 6 Production Material Purchased Locally ...... 104 Appendix 7 Local Production Material Lease ...... 105

1. Introduction

1.1 Project Overview

Yunnan Pu’er Regional Integrated Road Network Development Project is implemented with ADB loan, with Pu’er Municipal Government being Executing Agency (EA) and Pu’er Municipal Transport Bureau Implementing Agency (IA). The project focuses on boosting regional cooperation and trade growth in Pu’er and improving road net and transport condition of rural and border areas. Table 1-1 Basic Information of the Project NO. Project Basic Information 1 Country PRC 2 Loan No. LOAN 3217-PRC 3 Project Title Pu’er Regional Integrated Road Network Development Project 4 Start of the Loan October 20, 2015 5 End of the Loan June 30, 2021 6 Borrower Ministry of Finance, PRC Execution 7 Pu’er Municipal Government Organization Implementation 8 Pu’er Municipal Transport Bureau Organization 9 Sum USD 200 million Approval and ADB approved the $200 million loan on December 8, 2014. 10 Execution The loan agreement was signed on June 25, 2015

The project consists of three sub-projects: Output 1: Regional roads development. This output comprises: (i) upgrading and new construction for a total of 228.078 km of Class III highway between Ning’er-Jiangcheng-Longfu (hereinafter referred to as “NJL Road”); (ii) upgrading and new construction for the 44.739 km Menglian to Meng’a section of the existing Lancang-Menglian-Meng’a Class III/IV border road to a predominantly Class II road (hereinafter referred to as “Menglian-Meng’a Road); (iii) the development of trade facilities at the MTC; and (iv) improving the safety of the roads by introducing safety measures determined by the China RAP road safety design decision making tool. Output 2: Rural access improvements (hereinafter referred to as “Rural Roads”). 1

This output comprises: (i) the upgrading of about 600 km of village earthen or gravel roads to concrete Class IV standard; (ii) spot improvements on up to 1,200 km (or CNY24 million investment) of connecting lower level village roads; (iii) introduction of five new village bus service routes on a pilot basis, and (iv) a gender focused rural road maintenance program. The primary objective of the roads is to provide all weather access to administrative villages or to link with higher level roads.

Output 3: Institutional development. This output will address the limited implementation capacity of PMG. A project management consultant will be recruited to assist the PMG to implement and monitor the project in accordance with ADB procedures. The project will finance a 3-year training program ($400,000 for 40 person-months) for international and domestic training in financial and project management, road maintenance engineering, road maintenance practices, road safety, environmental management, social safeguards management, and wildlife trafficking and human and drugs trafficking enforcement. Among the three outputs, only output 1 involves land acquisition and resettlement, output 2 involves land acquisition of small area, and output 3 involves no land acquisition. According to the guideline of ethnic minority development project, 12 indicators are set around the four actions of “project benefits and improving measure”, “mitigation measures for social risks”, “complementary measure for poverty alleviation of local governments”, and “monitoring and evaluation”. Those indicators cover regional socioeconomic development, construction impact, transport improvement, livelihood recovery, and the impact of land acquisition and resettlement.

1.2 Major Project Impact and Action Plan

The project is expected to benefit a total population of 405,000, including 287,000 ethnic minority members (taking up 71% of total ethnic minority population) and 140,900 poor people (accounting for 36.7% of the total poverty population).

From Yunnan Pu’er Regional Integrated Road Network Development Project-EMDP 2

Among the three sub-projects, rural roads improvement will benefit 16,280 households of the nine counties and 110 administrative villages (287 village level organizations) of Pu’er city except Simao district. The total beneficiaries will amount to 73,000 people, 80% of whom belong to ethnic minorities like Hani, Yi, Lahu, Wa, Dai, Yao, Bai, Hui and Miao. The sub-project of NJL road and Menglian-Meng’a road will benefit 322,000 people, including 260,720 ethnic minority members (69%). The benefited ethnic minority groups are Yi, Hani, Dai, Lahu, Wa, Yao and Bai people. The affected project area is populated with impoverished and minority people, and all the nine counties involved are poverty-stricken and autonomous ones of minority groups. The direct benefits brought by the project include: (1) shortening the transport distance between Ning’er, Jiangcheng and Longfu; (2) shortening the travel time on all the roads covered by the sub-projects; (3) improving the condition of highways and rural roads and creating convenient transportation; (4) achieving year-around transport by rebuilding and maintaining the 30 village roads; (5) lowering the rate of road accidents; (6) creating better services for rural transportation; (7) ensuring all weather road connectivity to all administrative villages and upper level highways; (8) creating direct employment during road construction and operation. The indirect benefits of the project are: (1) enabling farmers to shift from traditional crop production to cash crop growing by attracting investors and removing transport constraints; (2) making it convenient for farmers to go to the market; (3) increasing farmers’ income by engaging them in non-agricultural activities like cross-border trade; (4) increasing non-agricultural income; (5) making social services more accessible, including schools, hospitals, markets and entertainment facilities. The potential negative effects include land acquisition, house demolition, construction disturbance, highway security caused by over speed or traffic jam, human trafficking, drug dealing and AIDS rate increasing after improved transport condition, and the holy trees that are worshiped by local communities and may be in the middle of the highways. Ethnic Minority Development Plan (EMDP) is designed to bring equal benefits 3

to every affected ethnic group and individual, mitigate negative effects and maximize the interest minority communities can share. Measures to increase income include: (1) developing regional highways; (2) upgrading rural roads and improving transport services; (3) strengthening highway security; (4) creating employment and income opportunities; (5) capacity building on cash crop production and working skills for non-agricultural activities. Mitigation measures include: (1) protecting the culture of ethnic minority groups and raising their awareness of such protection; (2) avoiding the adverse effect on holy trees and cultural relics; (3) reducing the indirect negative effect of tourism; (4) reducing the hazards of communicable diseases including AIDS; (5) lowering the risk of human trafficking and drug dealing; (6) reducing construction disturbances; (7) working with local government to make complementary measures for poverty alleviation and to maximize project benefits. With EMDP, the adverse impacts of the project can be minimized and the benefits shared by various ethnic groups can be maximized. During plan making phase, minority peoples were full conversed with on every aspect of the project outcomes and were provided opportunities for decision making and project implementation. The vulnerable groups involved in the project are: ethnic minorities, poverty stricken population and women. In response to land acquisition, house demolition and resettlement activities, mitigation measures have been developed for those who may lose land and houses, and have included them in the resettlement program so that they will receive corresponding compensation.

2. Monitoring Methods

2.1 Monitoring Objectives

To ensure the minority groups in the direct affected areas of Yunnan Pu’er Regional Integrated Road Network Development Project share equal benefits, and to mitigate the negative impacts through a series of measures, Yunnan Academy of Scientific and Technical Information has conducted external monitoring for EMDP to

guarantee the affected minority groups benefit from it. The external monitoring is mainly for Hani, Yi, Lahu, Wa and Dai people, who take up 71% of the total population in the directly affected area of the project. The current monitoring report is for 2017, which presents an objective evaluation of the project progress according to the content and indicators of the monitoring framework and relevant data of the baseline monitoring report.

2.2 Monitoring Methods

Before the monitoring started, the monitoring group designed a systematic framework based on project characteristics, and according to project content and objectives set seven monitoring indicators, whose components, sources, investigation tools and data collection and analysis were specified. Survey tools and methods are listed in table 2-1.

Table 2-1 Survey Methods of the Project Monitoring No. Methods Usage The monitoring group chose key people (village cadres, the elderly, Group and representatives of the affected households) as key information 1 Interview sources, and inquired through meetings and interviews relevant information for evaluation. Key questions are identified for major monitoring aspects, and Semi-Structured primary interviewees and secondary interviewees are specified and 2 Interviews included into the monitoring process in order to explore critical information. The focus is to explain/analyze whether the changes following the 3 Question Tree project are related to the project, what the relations are and how they are related. The group collected materials from local authorities and checked the Field visible project outputs like houses and infrastructure facilities in order 4 Observation to review the feedback from group discussions and household interviews. Household The group designed targeted questionnaire for evaluation subjects and 5 Survey selected certain number of samples to conduct surveys. Material The group collected statistical yearbooks and bulletin public released 6 Collection and by the government, visited local authorities and collected information Analysis for project evaluation.

2.3 Monitoring Framework Design

After careful study and examination of EMDP, Resettlement Plan and Project Administration Manual, the monitoring team designed the external monitoring framework for EMDP according to its characteristics and content, and conducted monitoring from seven aspects: socioeconomic development of the project area, construction impact, transport situation, impact on farmers’ production and life, land acquisition and resettlement, other impact, and problems tracking. Specific monitoring indicators and content are seen in table 2-2. Table 2-2 Project Monitoring Framework Level I Level II Level III Indicators Indicators Indicators Basic Data of The number of townships and administrative villages, land Socioeconomic the Project area, cultivated land area, total population, rural population, Development Area and ethnic minority population. Economic GDP, fiscal revenue, per capita net income of rural population,

Development and per capita retail sales of social consumer goods. Indicators Industry Output of the three industries, and production of grains, oil Development crops, vegetables, main cash crops and characteristic crops Income of hired farmers; Construction materials purchased locally; Whether it is clearly stated in tender documents and contracts that over 50% of non-technical work should be assigned to ethnic minorities, women, the poor and other people in the Direct project affected area; Economic The quantity of small machinery leased/purchased and the Benefit amount of money spent; The number of houses/sites rented and the amount of money spent; and Whether local women are organized to cater for construction workers. Construction How many days of employment are created (42,000 days); Impact Total number of employed workers/income earned, including Construction the number of local residents, women and minority and Other members/income earned; and Services by The number of people employed as non-technical workers, and Local People the percentage of minority people/women and the income they get. Whether the construction affects local production and life; Whether it damages local irrigation, drainage, roads, land and Elimination relevant equipment and facilities; of Adverse Whether the construction pollutes local water sources, Impact produces noises, dust and garbage to people living in surrounding areas and how to solve the problem; and Whether temporary land occupation is recovered. The distribution, income and expenditure of ethnic minorities, Ethnic Ethnic the number of migrant workers, the number of agricultural Minorities and Minorities products sold and purchased, and the amount of crop processed Poverty Poverty Poverty rate; impoverished people in each district; per capita Stricken Stricken net income; number of poverty stricken villages; and average population Population household income. The upgrading of NJL road; The upgrading of Menglian-Meng’a road; What facilities have been built in Meng’a logistic center, Direct Impact Transport annual trade volume/amount and the kinds of commodity; of Highway Condition the upgrading of 33 rural roads (total length of 600 km); Construction the upgrading of village roads (total length 1,200 km); Total population benefiting from the road upgrading and the percentage of ethnic minority population

The progress of opening five public bus routes; The number of road safety facilities installed (including traffic signs, speed bumps and crosswalk); The number of trainings on road safety; The number of handouts on road safety awareness to the public; the change of transport and freight cost; The volume of traffic flow and the number of passengers; The increase of money input for road maintenance, of financial subsidy and of the ratio of road maintenance expenditure; The number of traffic accidents; The number of passenger stations improved; Is road maintenance by spontaneous activities or organized Degree of ones; Transport Has trainings on road maintenance been conducted; Improvement Has tools, safety equipment and construction materials been provided for road maintenance; How many job opportunities have been provided by road maintenance; The involvement of women and poor people; The increase of travel frequency of local people; How many rural and functional transport services been introduced; Transport service to school-age children; Is all-weather traffic available; and Pilot public bus service site at the level of townships and villages. To analyze a case which transforms the travel methods and brings economic benefit (trade development) to farmers after Case Study road construction (improves transport connectivity and road safety) The building of local schools, hospitals, banks and police Benefits station; the building of collecting station for coffee beans and tea leaves Trainings on non-agricultural production skills; Trainings on Women's employment skills/access to Women's Impact on employment, changes in income and employment; Rural Technical trainings transport, border trade and tourism Production and Farmers’ services; Life Skill Trainings on growing techniques of cash crops; Improvement Trainings on economic development; Trainings on law, labor contracts and rights; The number of the above trainings and the involvement of villages, ethnic minorities and women; and Job opportunities of non-agricultural production.

Micro Loan The number of ethnic minority borrowers; and Assistance The purpose of the loans (case study). Case study 1-2 farmer trainees, or a case of changing income source The impact of land acquisition; Impact of Comparison between original plan for land acquisition and land actual situation; Acquisition Affected housing area; and House Protection of cultural heritage and other facilities of ethnic Demolition minorities; and Affected land area and affected households; Comparison between the actual expenditure of compensation Land and the budgetary estimate; Resettlement acquisition, The situation of land acquisition, house demolition and and house rebuilding; livelihood demolition and Measures, results and problems for livelihood recovery; special restoration resettlement assistance to vulnerable groups (minimum living allowance, pension insurance and other) The length of irrigation and drainage pipes, and the ratio of reconstruction; Infrastructure The number of power systems and other facilities, and the ratio Restoration of reconstruction; and New infrastructure. Cases where farmers’ needs are satisfied through Case Study resettlement/housing are solved for the needy Preventing damage to ancient trees and relics; Improving culture facilities in minority villages; Celebrating and restoring ethnic holidays; Cultural The number of approved projects for ethnic cultural relics Protection, protection/ the number of projected completed; Tourism, and Tourists sites in ethnic villages Foreign Trade Improvement of village roads and other infrastructure facilities Promotion How may commercials are made for tourist destinations The number of tourists/the amount of tourism income; How many jobs are created; and Other Impacts Foreign trade volume. How many propaganda materials are there and how many times are they handed out (posters/posters in the languages of ethnic minorities); Preventing How many condoms are handed out; HIV/AIDS How many trainings are organized by the Center for Disease Spread Control and Prevention (how many trainings are for staff and management personnel and how many are for specialized organizations and villagers), and how many trainees are there (including women).

Prevention and control of malaria and tuberculosis; Lowering the the number of nets provided; Risk of How many mosquito nets are provided; Infectious How many times are workers tents sprayed; and Diseases How many workers are quarantined and treated for tuberculosis Combating the The number of monitoring stations; Trafficking of Cases where women association organize awareness raising Human, Drug activities and information analysis; and and Other The number of posters and brochures Prohibited Items Re-checking the Problems Problem Identified in Have the problems been solved? Tracking Previous Monitoring Report

2.4 Data Collection

The data of this monitoring is from statistic sources (including statistic departments), Project Management Office (PMO) of Pu’er City and sample survey. The three categories of data complement and confirm each other. Statistic data are from yearbooks, bulletins and work reports provided by statistic authorities and relevant departments of Pu’er city and the nine counties in its jurisdiction. The data reflect the overall situation of the project affected area while the data from PMO show the actual progress in project implementation. Sample survey data are collected from questionnaires during household visits and thus demonstrate the impacts experienced by the subjects. Sample villages were selected through PPS (Probability Proportionate to Size) sampling from the areas affected by the three sub-projects of Menglian-Meng’a Road, NJL Road and Rural Roads, and household surveys were made at sample households chosen through simple random sampling in the selected sample villages. According to the principle of sample survey, the minimum sample size was 384 households, but 423 ones were chosen for actual investigation. Meanwhile, questionnaire survey has also been conducted at the administrative villages and companies involved in

household survey (the number of samples was 13). The subjects were chosen from: (1) the villages and townships directly or indirectly affected; (2) the habitat for ethnic minorities; (3) along the site of the highways; (4) poverty-stricken areas; and (5) households involved in land acquisition and house demolition. The sample distribution is shown in the following table: Table 2-3 Distribution of Survey Samples

Sub-project County Town(ship) Administrative Village Sample Number Yuhe 12 Zhenyuan An’ban Luojia 13 Wenli 16 Minle Gahu 31 Rural Roads Jinggu Jinggu Wenxing 32 Baozang Shuicheng 30 Jiangcheng Menglie Dazhai 30 Sub-total 164 Paliang 26 Mengma Manghai 4 Mengma 24 Menglian-Meng’a Menglian State-run Menglian Farm 22 Road Companies Luo Xiaohai Rubber 3 Factory Sub-total 79 Xinping 33 Ning’er Yuhe 33 Ning’er Heping 32 Mengxian NJL Road Xuande 22 Baozang Shuicheng 30 Jiangcheng Menglie Dazhai 30 Sub-total 180 Total 423 In principle, the sampling areas of current monitoring have remained the same to those of baseline report (only those of Rural Roads have been adjusted according to implementation progress) so that the data collected are comparable over the time dimension.

2.5 Monitoring Process

2.5.1 Make Monitoring Plan 11

The monitor group made Implementation Plan for the Monitoring Report of EMDP after the project was launched, identified the objectives, scope, investigation approaches and stakeholders, and specified monitoring methods, group members, framework and report outline. The group also further divided monitoring tasks and made field research plan, making full preparation for project monitoring and evaluation.

2.5.2 Confirmation on Indicators for Monitoring and Evaluation A series of evaluation groups meetings were held to discuss and agree on the monitoring methods for the 24 indicators on Project Benefits and Improving Measures, Measures to Lower Social Risks, and Strengthening Measure (the local government is responsible for), and consulted experts and the project implementation organization in written form to optimize those indicators. 2.5.3 Collect Second-Hand Materials The second-hand materials were collected from two sources, which were: 1. Statistic yearbooks and bulletins released by the government, like Statistic Yearbook of Yunnan Province (2017), Statistic Yearbook of Pu’er City (2017), Management Manual for Cadres of Yunnan Province (2017) and Economic Work Manual for Cadres of Pu’er City. 2. Existing materials from relevant authorities and departments, like work summary of 2016, report of certain tasks, employment portfolio by the constructors, and relevant trainings. 2.5.4 Collect First-Hand Materials The first-hand materials were gained through questionnaires and field survey. 1. Questionnaires The questionnaires were divided into two categories: one for individuals and the other for villages. Individual questionnaires covered living standard, living needs, economic options, travel options, travel scope, transport means and travel safety. The monitoring group evaluated the positive and negative impacts of the project on local people, and the subjects were mostly women, poor people, ethnic minorities and other vulnerable groups. The village questionnaire was to investigate from village cadres 12

such the basic situation of the sample villages like income, road and transport, production and life. Through the questionnaires, the monitoring group has developed a preliminary understanding of the residents’ views on production and life and of their perception on the sub-projects of NJL Road, Menglian-Meng’a Road and Rural Roads. Among the 423 questionnaires completed, 21.49% of the households were impoverished and 69.42% belonged to ethnic minority groups. Demographic features of the interviewed households are listed in table 2-4. Table 2-4 Demographic Features of the Interviewed Households

Menglian- Features Rural Roads NJL Road Total Sample Meng’a Road Poor Households 26.83% 10.13% 16.11% 21.49% Poverty Normal Level 73.17% 89.87% 83.89% 78.51% Households Han 29.27% 17.72% 27.22% 30.58% Yi 9.15% 5.06% 17.78% 14.05% Hani 45.12% 2.53% 48.33% 28.37% Ethical Dai 16.46% 36.71% 0.56% 15.7% Households Lahu / 2.53% 1.11% 1.1% Wa / 30.38% 0.56% 6.89% Others / 2.53% 4.45% 0.55% Primary School 51.22% 51.90% 45.56% 51.24% and Below Junior High 33.54% 34.18% 38.33% 34.71% Senior High Education (Including Level Secondary 12.8% 7.59% 12.22% 9.92% Specialized Schools) College and 2.44% 6.33% 3.89% 4.13% above 1 6.1% 2.53% 4.44% 3.86% 2 9.76% 5.06% 4.44% 6.89% Family 3 26.22% 17.72% 22.78% 20.66% Members 4 26.83% 32.91% 29.44% 29.75% Over 5 31.1% 41.77% 38.89% 38.84% Gender of Male 94.51% 84.81% 88.89% 66.67% Householder Female 5.49% 15.19% 11.11% 32.51% 2. Field Survey 13

In July and November 2017, the monitoring group visited the key town (ship)s and villages along NJL Road and Menglian-Meng’a Road to investigate the progress of construction and resettlement. Investigation sites covered some of the towns and villages in Zhenyuan County, Jiangcheng County, Menglian County and Ning’er County as well as the State-run Menglian Farm and Luo Xiaohai Rubber Factory. The group also visited relevant departments to learn about the followings: (1) Government departments: following up on the tasks set in EMDP and finding out whether and how the tasks were implemented. (2) Statistic departments: statistic materials on national economic development. (3) Transport departments: progress of regional road network, creating enabling environment for transport development, toll collecting, and road safety trainings of involved highways. (4) Public security departments: regional traffic safety, trafficking of human, drug and other illicit materials in the region, implementation of control measures and propaganda activities. (5) Poverty alleviation departments: poverty situation and data change, and trainings and other poverty alleviation activities. (6) Ethnic and religion departments: materials on ethnic minorities, ethnic culture protection and awareness raising, sensitive issues along the project highways and suggestions to address them. (7) Human resources and social security departments, and agricultural science and technology departments: employment and social security of minority people and women, trainings on production safety, workers’ rights and interests, cash crop growing skills and professional skills. (8) Health departments: situation and development of AIDS and other communicable diseases, popularization, training and monitoring activities. (9) Commerce and tourism departments: trade volume, value and major commodities of ports and of the region, ports building and tourism development. (10) Project headquarter: progress of project implementation, resettlement, employment and construction materials. 14

(11)Village Committees: general situation of households, overall income, progress of the project, existing problems and suggestions for solution. Meanwhile, the monitoring group visited the areas seriously affected by land acquisition and house demolition (large area of permanent land use) and interviewed local farmers to learn about their attitudes, needs and major concerns regarding the project. After the field survey, the monitoring group developed better understanding on the socioeconomic development, work progress and preparation, collected preliminary materials for evaluation, and communicated with relevant departments around follow-up data collection. A cooperation and exchange platform has been set up, which will ensure smooth implementation of the monitoring work. 2.5.5 Write Monitoring Report Based on collected materials and survey results, the group has monitored the project according to the check list of Action Plan for EMDP. During the monitoring process, the team has interviewed the insiders, had panel discussions and consulted stakeholders to further understand the project progress, analyze project implementation and form the monitoring report.

3. Socioeconomic Development in the Project Area

3.1 Overview of the Project Area

Pu’er is located in south Yunnan and has large mountainous areas. The total area of Pu’er is 45,485 km2, accounting for 12% of the total area of Yunnan, and shares border with Vietnam, Laos and Myanmar. The project affected area covers the nine ethnic minority autonomous counties of Pu’er. By the end of 2016, the total population of the nine counties was 2.3026 million (taking up 87.99% of the total population of Pu’er City), including 2.0489 million rural population (94.66% of the total rural population of Pu’er and an increase of 0.35% over 2015), which shows rural population is dominant in the project area. The total land area is 41,292 km2. As shown in Table 3-1:

Table 3-1 Overview of the Project Area (2016)

Project Ning’er Mojiang Jingdong Jinggu Zhenyuan Town/Township 6/3 12/3 10/3 6/4 8/1 Village Committee/ 85 160 166 136 109 Sub-District Office Land Area (km2) 3,670 5,459 4,532 7,777 4,223 Arable Land (ha) 20,120 45,187 33,333 35,548 28,735 Total Population 192,300 368,900 367,400 298,400 212,400 Rural 2015 159,900 303,500 341,200 283,200 199,700 Population 2016 160,000 304,800 342,900 283,300 199,600 Percentage of Rural Population 82.81% 82.62% 93.33% 94.93% 93.97%

(Continue) Table 3-2 Overview of the Project Area (2016)

Total (Nine Project Jiangcheng Menglian Langcang Ximeng Counties) Town/Township 5/2 4/2 5/15 5/2 61/35 Village Committee/ 48 39 157 36 936 Sub-District Office Land Area (km2) 3,476 1,957 8,807 1,391 41,292 Arable Land (ha) 5,736 20,390 40,430 8,109 237,588 Total Population 127,000 140,100 500,500 94,700 2,302,600 Rural 2015 102,500 120,500 451,100 23,800 566,400 Population 2016 103,000 121,600 451,200 82,500 564,100 Percentage of Rural Population 81.10% 86.79% 90.14% 87.11% 24.50% Note: The data are from Management Manual for Cadres of Yunnan Province (2017), Statistic Yearbook of Yunnan Province (2017) and Statistic Yearbook of Pu’er City (2016).

3.2 Indicators of Economic Development

All the nine counties in the project area are poverty-stricken ones supported by the state. By the end of 2016, the GDP per capita in the project area was 19,520 yuan (average of the nine counties), which increased by 9.85% and was approximately 62.43% of the average of Yunnan. Per capita retail sales of social consumer goods was 4,946.89 yuan (average of the nine counties), up by 11.32% from the previous year and around 41.29% of the average of Yunnan. The data show the economic indicators of the project area were much lower than those of the province, but the economic growth rates were high and a number of major indicators like the increase rate of GDP

per capita were clearly higher than those of Yunnan and Pu’er. Compared with the Baseline Monitoring Report, the percentages of GDP per capita and per capita retail sales of social consumer goods of Yunnan have increased. Table 3-2 Major Indicators of Economic Development in the Project Area

Per Capita Per Capita Retail Country/ GDP GDP Per Fiscal Revenue Disposable Sales of Social City/ (million yuan) Capita (yuan) (million yuan) Income of Rural Consumer Goods District Residents (yuan) (yuan) Ning’er 4,739 24,579 556 9,007 6,356 Mojiang 5,655 15,362 562 8,504 3,166 Jingdong 6,310 17,213 748 8,879 4,325 Jinggu 9,339 31,372 895 9,162 6,997 Zhenyuan 4,613 21,768 508 9,001 5,358 Jiangcheng 2,670 21,076 261 8,315 5,063 Menglian 2,620 18,744 260 8,226 6,795 Lancang 6,305 12,625 1,014 8,037 3,590 Ximeng 1,169 12,941 116 8,135 2,872 Average 19,520.00 8,585.11 4,946.89 2015 17,770.44 7,804.22 4,444 Yunnan 1,361,917 31,265 320,495 9,020 11,996 Note: The data area from Management Manual for Cadres of Yunnan Province (2017).

The economic condition of the project area is shown in table 3-3. It can be seen that total population, minority population and net income per capita have increased compared with the data of baseline survey. Table 3-3 Overview of the Project Area (2016)

Per Capita Net Income City/ Minority Poverty Year Population of Farmers County Population Population (yuan/person) 2015 192,300 107,014 9,394 8,125 Ning’er 2016 193,200 90,200 10,324 9,007 2015 367,200 285,082 60,749 7,780 Mojiang 2016 368,900 168,800 69,053 8,504 2015 365,800 184,395 38,270 8,120 Jingdong 2016 367,400 193,500 46,133 8,879 Jinggu 2015 297,000 148,294 36,445 8,348

The GDP per capita of Yunnan saw a growth of 8.0% from the previous year and Pu’er 10.03% in the Baseline Monitoring Report. The GDP per capita and per capita retail sales of social consumer goods was 61.24% and 41.24% of Yunnan respectively in the Baseline Monitoring Report. The poverty population was increased in 2016 because the national policy of targeted poverty alleviation redefined the term of poverty population. 17

2016 298,400 235,600 39,123 9,162 2015 211,400 119,470 22,216 8,177 Zhenyuan 2016 212,400 181,000 24,626 9,001 2015 126,400 102,594 24,127 7,530 Jiangcheng 2016 127,000 97,500 29,008 8,315 2015 139,400 109,047 20,739 7,482 Menglian 2016 140,100 131,800 21,641 8,226 2015 498,200 378,952 139,317 7,335 Lancang 2016 500,500 425,400 154,080 8,037 2015 94,300 89,336 20,618 7,341 Ximeng 2016 94,700 76,300 22,163 8,135 2015 2,292,000 1,524,184 371,875 70,238 Total 2016 2,302,600 1,600,100 416,151 77,266 Note: The data are from Statistic Yearbook of Yunnan Province (2017) and Poverty Alleviation Office of Yunnan Province.

3.3 Industry Development

As shown in the table 3-4, the growth rates of the first and the third industry in 2016 were higher than those of Pu’er and Yunnan, and the average growth rate of the second industry was slightly lower than that of Pu’er and Yunnan. Table 3-4 Industry Development in the Project Area (2016)

Growth of the Second Growth of the Third Growth of the First Industry Country/ Industry Industry City/ Current Year Current Year Current Year Year-on-Year Year-on-Year Year-on-Year District (Million (Million (Million Increase (%) Increase (%) Increase (%) yuan) yuan) yuan) Ning’er 1,099 6.2 1,748 10.2 1,892 14.0 Mojiang 1,519 6.0 1,789 12.8 2,347 16.0 Jingdong 2,385 6.0 1,867 10.3 2,058 10.2 Jinggu 2,928 6.0 3,585 9.3 2,826 12.0 Zhenyuan 1,882 6.1 1,339 16.3 1,392 15.0 Jiangcheng 897 5.8 955 10.6 818 10.9 Menglian 997 6.2 542 16.3 1,081 11.7 Lancang 1,865 6.1 2,312 12.8 2,128 8.5 Ximeng 282 6.0 264 15.1 677 11.5 Average Growth / 6.4 / 8.72 / 15.51 Rate Pu’er / 6.0 / 12 / 11.5 Yunnan / 5.6 / 8.9 / 9.5 Note: The data are from Management Manual for Cadres of Yunnan Province (2017).

Except grains, the per capita yield of main crops in the project area in 2016 was lower than that of Yunnan, such as oil crops, pork/beef/mutton, vegetables and fruits (except Jiangcheng). That shows grain was still the dominant crop for local farming and accordingly limited the growing of farmers’ income (Table 3-5).

Table 3-5 Crop Production in the Project Area (2016)

Country/ Grains Oil Crops Pork/Beef/Mutton Vegetables Fruits City/ Total Yield Per Capita Total Per Capita Total Per Capita Total Per Capita Total Per Capita District (ton) Yield (kg) Yield(ton) Yield (kg) Yield(ton) Yield (kg) Yield(ton) Yield (kg) Yield(ton) Yield (kg) Ning’er 95,000 492 2,500 12.9 23,500 121 57,600 298 1,900 10 Mojiang 157,000 426 3,300 8.8 22,700 63 42,800 116 7,600 21 Jingdong 188,000 512 3,700 10.2 28,400 78 52,100 142 15,800 43 Jinggu 186,400 625 4,100 13.6 16,700 58 113,300 380 42,000 141 Zhenyuan 122,600 577 3,800 17.7 20,900 102 78,700 370 6,100 29 Jiangcheng 45,000 354 500 3.8 5,700 53 25,800 203 140,600 1107 Menglian 62,000 443 500 3.2 6,700 51 25,000 178 28,100 201 Lancang 253,900 507 2,300 4.6 25,800 53 47,200 94 40,200 80 Ximeng 44,100 466 200 1.9 3,700 40 18,000 190 600 6 Average / 489.11 / 8.52 / 68.78 / 219 / 182 Pu’er 1,212,500 463 21,400 8.2 167,600 64 49,4000 189 300.700 115 Yunnan 19,029,000 399 685,000 14.4 3,728,000 78 19,686,100 413 7,591,100 159 Note: The data are from Management Manual for Cadres of Yunnan Province (2017).

As the main cash crops, tobacco, sugarcane, tea and coffee production increased in 2016, and fruits production also saw significant increase from the baseline monitoring. Skill trainings on plant management can be strengthened during project implementation to deliver better benefits to fruit growers. Table 3-6 Tobacco and Sugarcane Production in the Project Area

Total Tobacco Production (ton) Total Sugarcane production (ton) County 2015 2016 Increase by 2015 2016 Increase by Ning’er 4,900 5,300 8.16% 800 500 -37.50% Mojiang 8,200 9,200 12.20% 57,400 58,000 1.05% Jingdong 13,400 13,400 0.00% 271,500 263,000 -3.13% Jinggu 9,000 10,800 20.00% 51,700 448,800 -13.19% Zhenyuan 15,400 13,300 -13.64% 3,900 36,000 823.08% Jiangcheng / / / 41,900 32,600 -22.20% Menglian / / / 335,500 414,400 23.52% Lancang 700 500 -28.57% 938,800 1,002,500 6.79% Ximeng / / / 86,000 86,700 0.81% Total 51,600 52,500 1.74% 2,252,800 2,342,500 3.98% Note: The data are from Management Manual for Cadres of Yunnan Province (2017).

Table 3-7 Contrast of Tea and Coffee Production in the Project Area

Tea Output (ton) Coffee Output (ton) Fruits Output (ton) Oil Crop Yield (ton) County 2015 2016 Increase by 2015 2016 Increase by 2015 2016 Increase by 2015 2016 Increase by Ning’er 9,220 10,659 15.61% 9,790 8,459 -13.60% 1,300 1,900 46.15% 2,500 2,500 0.00% Mojiang 12,102 12,922 6.78% 5,231 5,038 -3.69% 7,500 7,600 1.33% 3,300 3,300 0.00% Jingdong 11,745 11,916 1.46% 534 774 44.94% 7,500 15,800 110.67% 2,100 3,700 76.19% Jinggu 9,743 10,301 5.73% 4,002 5,017 25.36% 32,200 42,000 30.43% 4,000 4,100 2.50% Zhenyuan 4,219 4,629 9.72% 936 1,808 93.16% 47,00 6,100 29.79% 4,000 3,800 -5.00% Jiangcheng 13,937 14,188 1.80% 7,908 7,772 -1.72% 138,900 140,600 1.22% 500 500 0.00% Menglian 4,360 4,268 -2.11% 6,220 7,439 19.60% 17,100 28,100 64.33% 2,200 500 -77.27% Lancang 16,362 16,668 1.87% 4,979 5,291 6.27% 29,200 40,200 37.67% 2,400 2,300 -4.17% Ximen 2,746 3,040 10.71% 967 431 -55.43% 200 600 200.00% 200 200 0.00% Total 84,434 88,591 4.92% 40,567 42,029 3.60% 238,600 282,900 18.57% 21,200 20,900 -1.42% Note: The data are from Economic Work Manual for Cadres of Pu’er City (2017).

Besides investigating cash crops production through macroeconomic data, the team also collected data through village questionnaires. It can be seen from the questionnaires that rubber and banana have seen a decrease in their growing area while tea and coffee, along with walnut and sugarcane, considerable increase. Table 3-8 Crops Production by the Surveyed Households (Unit: ha) Year Vegetables Coffee Rubber Tobacco Tea Banana Silk tree Other 2016 624.07 627.8 3295.8 276.2 1316.4 1524.33 16.93 80.67 2017 634.67 636.27 827.47 659.4 375.6 2009.07 106.67 15 5 Note: The data are from survey and statistics of village carders.

5 Including 181.33 ha of walnut and 240 ha of sugarcane. 23

4. Monitoring on the Impact of EMDP

4.1 Project Impact on Local Community

4.1.1 Direct Economic Returns According to the feedback from PMO, most of the living necessities (like food) for construction workers and construction materials of the two undergoing regional roads were purchased locally. By July 2017, the contractors of NJL Road had bought food 639 times and agricultural products 390 times, amounting to 1.2549 and 0.4033 million yuan respectively; those of Menglian-Meng’a Road had bought food 483 times and agricultural products 28 times, valuing 54,300 and 105,000 yuan respectively; the total value of construction materials like cement, sand and stone of NJL Road reached 6.0071 million yuan, accounting for 40% of the total procurement; that of Menglian-Meng’a Road was 19.3436 million yuan, 35% of the total procurement. The contractors rented land from local people to build temporary camps and fabrication yards, while those near the towns rented the houses of local residents as camps. Besides, the constructors rented excavators, tractors and other construction machines locally. The constructors of NJL Road rented 50,310 m2 of office and production space and construction machines 236 times, costing 880,650 yuan and 2.5985 million yuan respectively. Those of Menglian-Meng’a Road rented 3,650 m2 of office space and construction machines 128 times, spending 110,480 yuan and 4.224 million yuan respectively. The above data show a total of 27.1683 million yuan of living and construction materials and a total of 7.8238 million yuan of office space, production space and machines rental had been incurred since October 2016 when the construction started. That has contributed to local economic growth6. The monitoring group has noticed the procurement of food and agricultural products occurred many times with small amount each time. The non-bulk purchase, with little space for bargaining, provided directly benefits to local farmers. Likewise, the renting of office space did the same.

6 The data of Rural Roads were not available since it did not start until the second half of 2017. 24

4.1.2 Construction and Service Labors By July 2017, 605 people had been hired for NJL Road (including 345 nontechnical positions) with the average wage of 3,460 yuan/person/month. 366 people had been employed for Menglian-Meng’a Road (including 123 nontechnical positions) with the average wage of 2,800 yuan/person/month. The two regional road projects had guaranteed same pay for the same work among ethnic minorities, local residents and other groups and between males and females, and ensured poor people enjoyed the same salary as other people or more. At certain sections of the project, women received less payment than men mainly because women engaged in relatively easy work like cooking. Among the 345 nontechnical staff of NJL Road, 80 were women (54 were locals), taking up 23.2% of the total; 298 were local people, 86.4%; 271 were minority members, 78.6%; 55 were from families affected by land acquisition and house demolition, 15.9%; and 102 were poor people, 29.6%. The data show the nontechnical staff of NJL Road are mostly local people, and the ratio of minority members is higher than the average of the project affected area (69.49%), demonstrating the constructors paid close attention to ethnic minorities. As for the 123 people hired as nontechnical workers for Menglian-Meng’a Road, 26 were females (including 4 from local community), accounting for 21.1% of the total; 25 were locals, 20.3%; and 31 were minority members, 25.2%. The sub-project also achieved the objective that at least 20% of nontechnical staff be women and no less than 50% be minority members, women and other vulnerable groups, but the number of females and locals hired for nontechnical positions was small and there was no favoring policy for poor people or those affected by land acquisition and house demolition. According to questionnaire survey and interviews at the project area, a large number of families participated in road construction, but the percentage of minority members is lower than that of Han families. Similar percentage of the females of both minority and Han families jointed construction work, but more minority women participated in nontechnical work. Table 4.1-1 Family Income in the Project Area (Unit: %) 25

Female Families Work Done by Women Families Members Ethnicity Members Joined Road Joined Road Construction Nontechnical Work Construction Construction

Han 72.48 76.31 48 52

Minorities 42.11 77.22 30.3 69.7

Note: the data are from questionnaire results.

4.1.3 Protection of Ethnic Minorities and the Vulnerable Groups To guarantee the interests of minority and the vulnerable groups, PMO added special terms to construction contracts to prohibit child labor and forced labor and to ensure equal pay for equal work among different ethnicities and between different genders. Meanwhile the contracts also include favoring provisions that local residents should be hired first (40% of nontechnical jobs should be provided to locals). Meanwhile, PMO also set in the contract that the contractors should disseminate information about sexually transmitted diseases including AIDS to construction workers and among surrounding neighborhoods, and should provide trainings for workers and subcontractors to increase the awareness of AIDS. The General supervision Office and the contractors introduced the publicity education of AIDS prevention and work plan into the management institutions, and the health organizations along the roads were also involved. By June 2016, the contractors of the two regional roads had carried out 16 training programs to the workers, covering including drug control, health and well-being, HIV/AIDS and other topics. The construction sites were equipped with first aid boxes, and minor injuries could be handled within the sites or at nearby clinics. By the end of June 2017, neither the contractors nor the supervisor had reported serious health or safety accidents. 4.1.4 Mitigation of Adverse Impact 4.1.4.2 Establishment of Grievance Redress Mechanism (GRM) PMO established GRM on social security for EMDP, Relocation and Resettlement Plan and environmental protection to make sure disputes could be dealt 26

with in time. At the same time, Loan Agreement also specified to set up such mechanism according to the need of government institutions and project implementation and to organize top-down trainings for project subjects (specific groups) and stakeholders so that all of them were informed of the mechanism. Every entity involved in the project (contractors, supervision companies and PMO representing EA and IA) appointed focal persons to deal with complaints. Every complaint and solution was recorded in detail. The mechanism has served these functions: (1)Record and review the reasonable complaint against project entities; (2)Deal with complaints; (3)Provide the complainants with notice of the chosen mechanism and/or action; and (4)Prepare the periodical report required by ADB and present it to ADB as needed. 4.1.4.2 Implementation of GRM Prior to land acquisition and house demolition, Pu’er Municipal Government, Pu’er Transport Investment Croup Co., Ltd., the implementation organizations of resettlement and other relevant departments had ensured public participation and consultation and safeguard the right to know and other legitimate rights and interests of those affected in ways of posters, mobilization meetings and brochures related to resettlement. Transparent and effective channels were established for complaining and appealing throughout relocation and resettlement. The PMO of Pu’er put on posters on the procedures of complaining and appealing at the villages, town/township governments designated focal persons to explain the matters related to relocation and resettlement and to inform those affected that they could make complaints to Pu’er Municipal Transport Bureau, PMO of Pu’er, County Government, Town/township Government and Village Committee and even lodge an appeal at the court. Those measures avoided and reduced the negative effects of land acquisition and house demolition, and the problems were dealt with in time. Table 4.1-2 Problems and Solutions of Land Acquisition and Resettlement Project Town(ship) Village Negative Impact Solution NJL Road Ning’er Manlian Water pipes were broken Temporary water

during construction pipes were laid to ensure water accessibility New road was built The road to mountain top after the Office of Ning’er Wenquan was broken due to Land Acquisition construction acquired new land. Water supply suspension Liming Wangjie New pipes were laid. caused by construction Farming was affected since Menglian-Meng’a Temporary ditches Mengma He’an the ditches were broken or Road were dug filled up

4.2 Ethnic Minorities and Impoverished Population

4.2.1 Overview of the Ethnic Minorities in the Project Area 4.2.1.1 Ethnic Minority Population All the nine counties in the project area are autonomous counties of ethnic minorities. By the end of 2016, there were 1,600,100 ethnic minority members in the area, taking up 69.49% of the total population. As shown in table 4.2-1: Table 4.2-1 Ethnic Minority Overview in the Project Area (2016) Project Ning’er Mojiang Jingdong Jinggu Zhenyuan Minority Townships 17 Total Population 193,200 368,900 367,400 298,400 212,400 Minority Population 90,200 168,800 193,500 235,600 181,000 Minority Population (%) 46.7% 45.8% 52.7% 79% 85.2% Note: The data are from Management Manual for Cadres of Yunnan Province (2017) and Statistic Yearbook of Yunnan Province (2017).

(Continue)Table 4.2-1 Ethnic Minority Overview in the Project Area (2016) Project Jiangcheng Menglian Lancang Ximeng Total (Nine Counties)

Minority Townships 68 19 /

Total Population 127,000 140,100 500,500 94,700 2,302,600

Minority Population 97,500 131,800 425,400 76,300 1,600,100

Minority Population (%) 76.8% 94.1% 85% 80.6% 69.49%

7Mengnong Autonomous Township of Yi People. 8Qianliu Autonomous Township of Yi People, Jiujin Autonomous Township of Hani People, Ankang Autonomous Township of Wa People, Wendong Autonomous Township of Wa People, Xuelin Autonomous Township of Wa People, and Fazhanhe Autonomous Township of Hani People. 9Lisuola Autonomous Township of Lahu People. 28

Note: The data are from Management Manual for Cadres of Yunnan Province (2017) and Statistic Yearbook of Yunnan Province (2017).

The major ethnic groups in the project area are: Hani, Yi, Lahu, Dai, Yao, Bai, Hui and Miao People. Most of them live in the same area with other groups, with overall distribution remaining unchanged from the end of 2015. Since then, the population of minority members has increased 75,916, up by 4.98% (the ratio to the total population has increased by 3.4%). According to the population increase rate, the total beneficiaries of minority members will reach 74,500 for the sub-project of Rural Roads and 331,500 for those of NJL Road and Menglian-Meng’a Road by 2020. 4.2.1.2 Income and Expenditure of Minority People In general, the average annual income of both ethnic minority and Han families has risen from the baseline report by 5.85% and 1.60% respectively. But the former is still lower than that of the latter, and the earnings of women is lower than that of men. Table 4.2-2 Family Income in the Project Area-Ethnicity (Unit: yuan)

Ethnicity Rural Roads NJL Road Menglian-Meng’a Road Average

Han 23,882 56,046 39,120 39,682.67

Minorities 28,691 41,949 34,131 34,923.67 Note: The data are from questionnaire results.

Table 4.2-3 Family Income in the Project Area-Gender (Unit: yuan) Gender Average Family Income Han Family Minority Family Male 19,810 21,498 18,956 Female 9,565 8,479 9,851 Note: The data are from questionnaire results.

The major source of family income in the project area is crop growing, which constitutes nearly 33% of average income for each family. Tea and coffee are the main cash crops in the project area, and Han people get a bit more economic returns than minority people from growing cash crops. Table 4.2-4 Main Income Sources of Minority Families (Unit: %) Menglian-Meng’a Rural Roads NJL Road Average Road Income Sources % of Total Income % of Total Income % of Total Income % of Total Income Han Minorities Han Minorities Han Minorities Han Minorities Cash Crops 55.94 26.65 11.84 15.49 3.49 37.11 29.86 26.29

Traditional Crops 4.49 6.41 0.41 4.79 0 8.77 2.12 5.69 Cattle Farming 6.34 43.42 14.35 42.94 10.41 4.26 10.39 25.41 Non-Agricultural 1.35 2.62 13.47 4.06 10.71 11.75 7.88 6.12 Activities Paid Work 17.27 10.06 28.01 20.04 57.53 21.62 27.09 20.62 Poverty Alleviation 5.94 3.92 5.43 1.56 7.14 7.13 5.87 4.48 and Subsidy Other 8.87 6.41 12.2 0.62 10.71 4.82 10.57 4.55 Note: the data are from questionnaire results.

Paid work and non-agricultural activities are major supplementary sources of family income. The ratio of non-agricultural activities has decreased while that of paid work has increased from 17.4% of previous survey to 23.9%, indicating the project implementation has created new jobs (directly, or indirectly at certain extent). Field survey shows the proportions of Han and minority migrant workers have increased, but the former is larger than the latter.

Figure 4-1 Proportion of Family Members Working as Migrant Workers 60

30 2015 2016 20

0 Han Nationality Ethnic Minorities

Note: The data are from questionnaire results. Most of the migrant workers find jobs inside the county or around the neighboring areas, and the percentage of minority workers is much higher than that of Han ones. The ratio of people who work outside the county has decreased considerably from the previous year probably because the local economic growth has created new jobs, which can meet the demands of those migrant workers on working conditions and salary.

Table 4.2-5 Destinations of Minority Migrant Workers Menglian-Meng’a Average Rural Roads NJL Road Working Road Destination Migrant Workers % Migrant Workers % Migrant Workers % Migrant Workers % Han Minorities Han Minorities Han Minorities Han Minorities Within the County/ 23.4 42.55 23.08 44.87 11.54 30.77 21.48 41.61 Neighboring Areas Other Counties/Pu’er 2.13 6.38 8.97 10.26 15.38 11.54 8.05 9.4 Other Prefectures/Cities of 10.64 6.38 0 2.56 0 3.85 3.36 4.03 Yunnan Kunming 0 2.13 2.56 1.28 0 0 1.34 1.34 Other Provinces 2.13 6.38 1.28 1.28 0 23.08 1.34 6.71 Note: The data are from questionnaire results.

The major expenditure of the families within the project area is on food, clothing, education, health-care, agricultural production and investment in other aspects. Compared with the previous year, household spending on food and clothing in the project area has remained stable and decreased slightly, taking up around 30% of the total expenditure. It can be seen from table 4.2-2 that the average family income has increased. When the ratio of food and clothing expenditure to the total expenditure decreases, its ratio to income also decreases, which means the Engel coefficient of the project area has decreased. The reduction of agricultural or other investment confirms the decrease of non-agricultural income in table 4.2-4. Han people’s expenditure in health-care and education has increased by 11.11%, and minority members 7%. The increase in health-care and education is a result of the increased medical insurance by 30 yuan/person/year since 2016 (150 yuan in 2015 and 180 yuan 2016), which shows the medical care of the project area is getting better. Table 4.2-6 Major Expenses of Minority Families Menglian-Meng’a Average Rural Roads NJL Road Road Expense & of Total Expense % of Total Expense % of Total Expense % of Total Expense Han Minorities Han Minorities Han Minorities Han Minorities Food & Clothing 25.56 21.18 28.96 25.97 45.95 41.6 29.63 29.25 Agri Production & 19.63 23 18.3 19.12 3.31 8.16 16.99 17.86 other Investment health-care& 27.95 19.97 31.17 18.44 38.89 26.21 30.75 24.4

Education House 14.83 28.97 7.31 25.67 3.07 14.81 10.03 18.54 Building/Rebuilding Fuel, Travel & 2.41 3.92 4.26 6.15 9.48 9.33 4.12 6.22 Freight Others 3.97 1.18 6.27 2.47 0 0.71 4.48 2.01

Note: The data are from questionnaire results.

Both Han and minority families sold more agriculture products and earned more money than they did in 2015, and the data show the latter has experienced a higher increase rate than the former. But the amount of products they sold and they sent for processing is still small, remaining a fairly self-sufficient state. Table 4.2-7 Income and Expense of Crops of Minority Families Menglian-Meng’a Average Rural Roads NJL Road Yield and Income Road Han Minorities Han Minorities Han Minorities Han Minorities Crops Sold (ton) 0.63 1.06 0.52 1.43 0.46 3.3 0.56 1.8 Crop Income (yuan) 14114 10218 5033 10629 3606 12521 8780 11457 Crops Bought (ton) 0.55 0.7 1.19 1.71 0.71 0.39 0.85 1.12 Crop Purchase (yuan) 1419 1400 9651 5088 19786 1994 7370 3301 Crops Sent to the 0.13 0.7 0.02 0.68 0.21 1.77 0.09 0.85 Processing Factory (ton)

Note: The data are from questionnaire results.

4.2.2 Analysis on Poverty Population In 2016, 430,143 people in Pu’er City lived under the poverty line, an increase of 47,175 from 2015. The poverty population constituted 16.45% of the total, and poverty incidence was lowered by 1.81% from 2015. The following table shows the total poverty population in the nine counties is 416,151, an increase of 44,276 from 2015, but the poverty incidence is reduced to 18.07%, down by 0.11%. Daily necessities and production materials of 27.1683 million yuan has been purchased locally, and office, land and machine rental has amounted to 7.8238 million yuan within the first year of project construction. Some local people have earned money directly from selling food and agriculture products, as well as leasing their houses as office places. All these show the project implementation has played certain role in lowering the poverty incidence.

But on the other hand, neither the poverty population nor the poverty incidence of the project area has seen a noticeable decrease as that of Pu’er City because the project area has a large poverty population. Meanwhile, relevance can be observed between poverty and regional transportation condition: Simao District enjoys good transport and facilities, and its poverty population is small; on the contrary, the poor transportation system of other counties adds up the cost of agriculture product shipping and non-agriculture activities, rendering greater difficulty for poverty alleviation. Table 4.2-8 Poverty Population in Project Area

Poverty Population Poverty Incidence (%) 2015 2016 2015 2016 Ning’er 9394 10324 5.93 5.34 Mojiang 60749 69053 20.08 18.72 Jingdong 38270 46133 11.37 12.56 Jinggu 36445 39123 12.97 13.11 Zhenyuan 22216 24626 11.21 11.59 Jiangcheng 24127 29008 23.68 22.84 Menglian 20739 21641 17.34 15.45 Lancang 139317 154080 34.4 30.79 Ximeng 20618 22163 26.66 23.40 Total/Average 371875 416151 18.18 18.07 Pu’er City 382968 430143 18.26 16.45

Note: The data are provided by the Poverty Alleviation Office of Yunnan Province.

Statistics from field survey show that the annual income of poverty-stricken families is much lower than that of normal families. In 2017, the income of poor families along the two regional roads and Rural Roads saw considerable increase from 2015, reaching 25,000 yuan, around 62% of that of normal families. In the same year, the income of poverty-stricken families along the two regional roads fluctuated slightly, with that along Menglian-Meng’a Road increasing, that along Rural Roads decreasing, and the income of normal families remained over 40,000 yuan. Table 4.2-9 Average Annual Income of Poverty-Stricken Families (yuan) Rural Menglian-Meng’a Category Year NJL Road Average Roads Road Normal Family 2015 28,969 59,766 30,667 41,951

2017 28,313 44,813 36,028 40,250

Poverty-Stricken 2015 16,910 21,870 10,000 17,613 Family 2017 20,796 30,452 29,313 25,098

Note: The data are from questionnaire results.

According to the national standard of rural poverty (with per capita net income less than 2,300 yuan/year), 9.93% of the interviewed families are classified as poverty-stricken ones, down by 3.11% from the previous year; the rates of middle-income families (with per capita net income between 2,300 and 5,000 yuan per year) and high-income families (between 5,000 and 10,000 yuan per year) have decreased by 4.9% and 0.06% respectively, while that of rich families (over 10,000) has risen by 5.09%. Table 4.2-10 Annual Income of Families in Project Area

Average Family Menglian-Meng’a Rural Roads NJL Road Total Income Per Road Capita (yuan) Number Percent Number Percent Number Percent Number Percent < 2,300 13 7.93% 18 10.00% 11 13.92% 42 9.93% 2,300-5,000 46 28.05% 42 23.33% 18 22.78% 106 25.06% 5,001-10,000 72 43.90% 67 37.22% 29 36.71% 168 39.72% 10,001-20,000 30 18.29% 46 25.56% 14 17.72% 90 21.28% >20,000 3 1.83% 7 3.89% 7 8.86% 17 4.02% Total 164 100% 180 100% 79 100% 423 100% Note: The data are from questionnaire results.

4.3 Transport Condition of the Project Area

4.3.1 General Transport Condition of Pu’er City 4.3.1.1 Development in Transportation Road transport, the primary way for passenger transport and freight transport in Pu’er City, is closely related to the economic development and poverty alleviation. In 2016, the traffic mileage in Pu’er was 20,236 miles, including highway for 200 miles (12.29% of the total mileage), first-class roads for 4.5 miles, second-class roads for 965.6 miles which has increased by 7.69% or 69 miles, third-class roads for 608 miles which has increased by 11.76% or 64 miles. The total traffic mileage of national highway and provincial highway covered 4,781 miles, accounting for 23.63% of the total road mileage while roads of counties, towns, villages and other special roads 34

covered 15,455 miles accounting for 76.37% of the total road mileage. The road accessibility of Pu’er has gotten all-round improvement. In 2016, the classified roads in Pu’er has increased by 1.27% or 203 miles to 16,205 miles, accounting for 80.08% of the total road mileage. Substandard roads covered 4,030 miles, accounting for 19.92% of the total. The percentage of classified roads in the total road mileage has been increase but it is still under the average of the Province. Table 4.3-1 The Length of Road Transport in Pu’er (Unit: miles) Types of Road Classifi First-C Second Third- Fourth Substan Traffic ed Expres lass -Class Class -Class dard Mileage Highwa sway Highw Highw Highw Highw Highway Item y ay ay ay ay Length of road transport of 20,373 16,002 200 5 897 544 14,357 4,371 Pu’er (2015) Ratio to Traffic - 78.55% 0.98% 0.02% 4.40% 2.67% 70.47% 21.45% Mileage Length of road transport of 20,236 16,205 200 5 966 608 14,427 4,030 Pu’er (2016) Ratio to Traffic - 80.08% 0.98% 0.02% 4.77% 3.00% 71.29% 19.92% Mileage Rate of - 1.27% - - 7.69% 11.76% - - increase Length of road 238,05 175,19 200,898 4,134 1,196 11,752 8,618 37,154 transport of 2 8 Yunnan Ratio to Traffic - 84.39% 1.74% 0.50% 4.94% 3.62% 73.60% 15.61% Mileage Note: The data are from Statistic Yearbook of Yunnan Province (2017). By the end of 2016, the number of civilian vehicles in Pu’er City has reached 912,900, among which 216,900 were cars, 640,300 were motorcycles, 5,260 were tractors and 300 were trailers. Meanwhile, 743,800 people were drivers with motor vehicle driving licenses, among which 31,200 were drivers with car driving license.

Among the 216,900 cars, 159,200 were passenger buses (including 7,140 sedans), 5,530 were trucks10. The total number of cars has increased by 16.16% or 30,200 to 216,900; passenger cars, increased by 19.13% or 25,600; trucks, increased by 8.39% or 4,200 . Table 4.3-2 The Number of Civilian Cars in Pu’er

Number of Civilian Number of Civilian Rate of Item Cars in Pu’er (2015) Cars in Pu’er (2016) increase I. Civilian Cars 186,762 216,948 16.16% i:Passenger cars 133,648 159,220 19.13% Including: large-size 789 846 7.22% Medium-size 1,105 1,105 0% Small-size 129,800 155,727 19.97% Includingsedans 630,00 71,400 13.33% ii.Trucks 50,975 55,253 8.39% Includingheavy-load 3,223 4,067 26.19% Medium-size 7,339 7,610 3.69% Light 40,403 43,566 7.83% iii.Others 2,139 2,475 15.71% II. Tractors 52,735 52,648 -0.17% Including: large and medium sized 29,514 30,109 2.01% III. Motorcycles 702,875 640,343 -9% Including: common 691,339 637,208 -7.83% IV. Other cars \ \ \ V. Cargo trailers 214 286 33.64% VI. Automobile drivers 696,869 743,804 6.74% Including: car drivers 311,960 347,517 11.40% Note: The data are from Statistic Yearbook of Yunnan Province (2017). The total cargo freight of the whole year has increased with an year-on-year growth of 4% to 40,420,000 tons. The transport turnover has increased by 1.7% to 58,609 million ton kilometers. The passenger transportation volume has reached 32,490,000 and this turnover reached 3,122,400 thousand passenger kilometers. Table 4.3-3 Traffic Freight Volume of Project Area Roads in 2016

Passenger Cargo passenger Average turnover Cargo freight transport Number transportatio cargo freight Item (thousand (Thousand turnover of coach n (thousand distance passenger tons) Thousand stations people) (km) kilometer) ton

10 The data are from Statistic Yearbook of Yunnan Province (2017). 36

kilometer

Ning’er 1,220 120,470 2,400 446,141.7 185.89 11

Mojiang 1,330 131,420 2,420 479,346.7 198.08 15

Jingdong 1,360 118,850 3,350 496,653.7 148.25 13

Jinggu 1,370 126,940 3,510 537,960.7 153.27 17

Zhenyuan 980 94,410 2,570 406,306.7 158.1 12

Jiangchen 840 87,630 1,810 315,035.7 174.05 7 g

Menglian 900 110,740 2,380 329,234.7 138.33 7

Lancang 1,490 115,520 3,460 519,636.7 150.18 20

Ximengf 750 80,710 1,750 289,811.7 165.6 7

9 Counties 10,240 986,690 23,650 3,820,128.3 1,471.75 109 in total

Simao 4,890 485,690 4,850 616,138.7 127.04 12

Pu’er City 15,130 1,472,380 28,500 4,436,267 1,598.79 121 Note: The data are from the transportation management department. The road transportation facilities has been improved little by little. In 2016, 4 coach stations were built: Jiangcheng Coach Station, Xiushan Coach Station of Zhenyuan, Sanzhangtian Coach Station and Zhedong Coach Station. The total number of coach stations in Pu’er was 121 and the total investment on road transport infrastructure reached CNY26,580,000. Related passenger transport conditions are as follows: Table 4.3-4 Passenger Transport in Pu’er City

Rural Passenge Inter- Rural Passenger Rural r provin Intercit Inter-cou Rural Passenger Cars to Year Passenger Transpo cial y Lines nty Lines Lines Cars to Administr cars rt Lines Lines Counties ative Villages

2015 508 4 85 83 336 1,131 103 738

2016 517 4 93 74 346 1224 103 828

Increase 9 0 8 -9 10 93 0 90

Rate of 1.77 - 9.41% -10.84% 2.98% 8.22% - 12.20% increase Note: The data are from the transportation management department of Pu’er City. 37

The project of rural road access is progressing steadily. In the whole 2016, the total finished mileage of rural road construction was 2,671.9 miles, with the completion surpassing the requirement of 2,400 miles of governmental people-benefit project. The transportation capacity of rural roads have been greatly improved11 that roads of 99% of the villages are accessible. 4.3.1.2 Traffic Safety In 2016, 13,531 traffic accidents took place in Pu’er City and caused 271 death and economic loss of CNY20.8 million. Among these accidents, 10,615 accidents (257 of them have gone through the general procedures) took place in the 9 counties of the project area and caused 230 death and economic loss of CNY16.99 million12. Calculated by the population of the 9 counties, the collision accident rate in the project area was 463.12/100,000 persons (11.21/100,000 persons have gone through the general procedures) and the death rate of traffic accident in the project counties was 9.99/100,000 persons.

Table 4.3-5 Comparison on Traffic Safety in the Project Area

Area Road Transportation Deaths in Injuries in Economic Losses Accidents Accidents Accidents (yuan) Year 2015 2016 2015 2016 2015 2016 2015 2016 Ning’er 1,038 967 40 31 315 444 1,972,800 792,900 Mojiang 1,511 1,137 37 18 574 402 3,515,600 1,736,900 Jingdong 1,134 1,438 17 24 676 582 2,142,400 2,060,800 Jinggu 1,999 2,136 34 37 742 713 2,847,400 1,858,300 Zhenyuan 955 1,105 17 11 365 323 1,561,800 1,528,700 Jiangcheng 537 623 14 11 266 274 1,489,100 1,750,300 Menglian 503 491 19 18 294 212 681,200 395,700 Lancang 1,757 2,174 74 60 601 591 5,244,800 5,528,600 Ximeng 437 544 19 20 182 210 1,225,000 1,341,800 Total 9,871 10,615 271 230 4,015 3,751 20,680,100 16,994,000 Simao 2,348 2,916 54 41 936 1,070 3,360,400 3,805,700 Pu’er City 12,219 13,531 325 271 4,951 4,821 24,040,600 20,799,700 NJL Road 5 3 0 3 6 4 12,000 13,000 Menglian-Meng 3 7 3 9 2 3 9,000 9,500 ’a Road Note: The data are from Traffic Police Division of Pu’er City.

11The date are from National Economic and Social Development Statistical Bulletin of Pu’er City (2016). 12The data are from Traffic Police Division of Pu’er City. 38

Table 4.3-6 Road Safety in the Project Area Area Accident Rate Per Death Rate Per 100 Injury Rate Per 100 Economic Loss Rate 100 Cars Cars Cars Per 100 Cars ( yuan) Year 2015 2016 2015 2016 2015 2016 2015 2016 Ning’er 1.89 1.54 0.07 0.06 0.57 0.47 3,600 2,900 Mojiang 2.36 1.74 0.06 0.04 0.9 0.66 5,500 4,000 Jingdong 1.15 0.83 0.017 0.01 0.69 0.49 2,200 1,600 Jinggu 2.52 1.97 0.042 0.03 0.94 0.73 3,600 2,800 Zhenyuan 1.67 1.67 0.03 0.03 0.64 0.64 2,700 2,700 Jiangcheng 1.78 1.36 0.02 0.04 0.88 0.67 4,900 3,800 Menglian 1.02 0.83 0.04 0.03 0.6 0.49 1,400 1,100 Lancang 1.46 1.18 0.06 0.05 0.5 0.40 4,400 3,500 Ximeng 2.48 1.73 0.11 0.08 1.03 0.72 6,900 4,900 Average 1.73 1.43 0.05 0.04 0.7 0.59 3,600 3,000 Simao 1.75 1.53 0.04 0.04 0.7 0.61 2,500 2,200 Note: The data are from Traffic Police Division of Pu’er City. It is shown in Table 4.3-6 that the accident rate per 100 cars, death rate per 100 cars, injury rate per 100 cars and economic loss rate per 100 cars of the project area in 2016 were all lower than the average of that of Baseline Report. 4.3.2 Project Road Construction 4.3.2.1 Construction Progress By June 2017, the total value of finished construction work of Yunnan Pu’er Regional Integrated Road Network Development Plan was estimated to be CNY403 million, accounting for 20.78% of the total work amount. Among the total construction work amount, that of regional road construction work accounted for 16.25% and rural road construction work, 4.53%13. In the aspect of regional roads, by June 2017, 16.25% of the construction work has been finished. About subgrade work, Menglian-Meng’a Road and NJL Road Projects have finished the bidding of civil engineering contract packages respectively in March and April of 2016. In August of 2017, 40% of the construction of Menglian-Meng’a Road, with an estimated value of CNY172 million, has been finished since its start in March of 2016, which was behind schedule. In June 2017, 25% of the construction of NJL Road, with an estimated value of CNY141 million,

13 The statistics of Progress Report of 2017Q2 was multiplied by 75% of the total construction work. 39

has been finished since its start in September of 2016. The pavement work was estimated to start in 2018 Q4.

The construction outside the starting The pier construction of the first road point of Meng’a Road bridge of Meng’a Road

The excavation of side slope The processing to the side slope

The construction of draining ditch The construction of bridge and culvert

The construction of cubic meter of earth Barricade construction and stone Picture 4.3-2 Pictures of Construction In the aspect of rural roads, up to June 2017, except XXMM-Sub1 (contract package 1 of Ximeng County), all the contract packages of rural roads have been signed, started and moved forward with the overall completion percentage of 4.53%. 70% construction of Zhenyuan has been finished. For the 1200-mile low-class roads joining the natural villages, PMG and governments of the county decided to harden them instead of improving them in a small-scale in the original plan. 4.3.2.2 The Traffic Condition during the Construction For the ports connecting the two project roads take the responsibility of border trade, the traffic stop brought by construction will bring direct negative influence to local residences and enterprises, even ●●● great economic loss. Field investigation Typical Case found that although traffic control in When coming back from Menglian to Meng’a Port, the cars of the monitoring group came across a divided periods has brought heavy rain which has made such a muddy road and inconvenience to local traffic and the slow traffic. The traffic was guaranteed as soon as time after traffic control was easily to the excavators of construction organization arrived and paved a road with rubble. It refers that the be jammed, the traffic condition was construction organizations of all road sections have basically kept accessible, never both guaranteed the smooth traffic and minimized inaccessible for days. For the less the negative influence brought by construction. ●●● advantaged road condition of this road section, it was apt to landslide in rainy season. However, the construction party has taken urgent measures in a fast and effective way to guarantee the accessibility. All different vehicles could pass through Meng’a Road during the construction period, including sedans and heavy-load trucks. The service of passenger transport and cargo transport were offered and vehicles could go through customs as usual.

Regular cargo transport as before Regular passenger transport as before

Regular customs passing-through at Regular border trade at Meng’a Port as Meng’a Port as before before Picture 4.3-3 Traffic Condition of Vehicles During the Construction 4.3.2.3 The Directly Benefited Group The household survey found that family members of more than half of the interviewed households have participated in the road construction and female family members of most of the construction-involving households participated in construction work or nontechnical work. 50.96% of the interviewed and their family members have participated in the construction of local roads. 36.76% of those workers were in construction field; 49.73%, nontechnical; 13.51%, other fields. 74.59% of the construction-involved households had female members working for the project; 31.88% of the female workers were in construction field; 52.9%, nontechnical; 15.22%, other fields. On the other hand, communities along the project area had goods and service trade during the implementation and construction of the project. Females and minorities are directly or indirectly benefited by the increase in goods and service trade.

4.3.2.4 Construction of Meng’a Logistics Center Menglian (Meng’a) Port is a second-class open port centered by Menglian Town. The import and export value of Menglian (Meng’a) Port in 2016 has increased in year-on-year growth of 79.81% to USD902 million. The import and export taxes handed in to the nation has increased in year-on-year growth of 113.88%14 to USD909 million. Trade in Meng’a Port in recent years are shown in Table 4.3-7. Table 4.3-7 Cross-border Trade at Meng’a Port in Recent Years

Year 2013 2014 2015 2016 Total Volume 340420 566560 501640 901980 (thousand dollars) Cross-border Increase (thousand Trade Volume at -- 226140 -64920 400340 dollars) Meng’a Port Rate of increase -- 66.43% -11.46% 79.81% (%) Total 219,714 248,638 274,699 302,993 Cross-border Increase -- 28,924 26,061 28,294 Vehicles Rate of increase -- 13.16% 10.48% 10.30% (%) Total 1,012,154 1,199,892 1,341,026 1,463,815 Cross-border Increase -- 187,738 141,134 122,789 population Rate of increase -- 18.55% 11.76% 9.16% (%) Note: The data are from Meng’a Port Management Committee of Menglian County. Up to July of 2017, the site of Meng’a Material Transit Center has been confirmed; however, the substantial construction hasn’t been started yet. Table 4.3-8 The Construction of Meng’a Material Transit Center Item 2015 2016 Note The border trade The 100-mu (6.67 ha) center at Meng’a construction site for Meng’a Target: The The Construction Port and the Logistics Center has been construction of Meng’a Material reconstruction confirmed. The substantial will be finished Transit Center project haven’t construction of it hasn’t been in 2018. been started yet. started by June of 2017. 4.3.3 Improvement in Traffic 4.3.3.1 Road Safety

14 Pu’er Broadcast Net: http://www.pegbw.com/zx_nr.asp?id=8438 43

To improve the road safety in the project area, PMO has stipulated in the construction contract that the employer should offer a safe working environment and sufficient trainings work and safety. In the aspect of road safety, ChinaRAP group has provided the local designers with design philosophy of road safety and has made a large quantity of safety evaluation on the road designs for the project, which has greatly raised the safety level of project roads. The safety design of Menglian-Meng’a Road and NJL Road has adhered to 3-star level, which has meet the requirements of ADB. To guarantee residents’ safety on road, all the contractors have equipped all the road construction sections and safety distance with safety signs, warning tapes, and allocated speed bumps at those turnings and places where accidents are easy to take place. By June 2017, 693 effective speed control equipment and 428 safety signs have been used and 216 speed control equipment and 51 safety signs have been used. Table 4.3-9 Number of Road Safety Equipment

Section Safety signs Speed bumps Pedestrian Crossing

1st Section of NJL Road 50 0 0 2nd Section of NJL Road 12 0 0 3rd Section of NJL Road / / / 4th Section of NJL Road 20 0 0 5th Section of NJL Road / / / 6th Section of NJL Road 86 0 0 7th Section of NJL Road 400 368 0 8th Section of NJL Road 50 0 0 9th Section of NJL Road 50 50 / 10th Section of NJL Road 25 10 0 Subtotal 693 428 0 1st Section of Meng’a Road 91 / / 2nd Section of Meng’a Road 125 51 / Subtotal 216 51 0 Total 909 479 0 Notes: The data are from project contractors. 4.3.3.2 Traffic Condition In 2016, 4 new coach stations were newly built in Pu’er City, including the new Jiangcheng Coach Station. For the reconstruction of arterial roads, the bus routes in project area haven’t been started yet by this evaluation.

In 2016, the total cargo freight volume in the project area has reached 28,500,000 tons; the total passenger transport volume, 15,130,000. Table 4.3-10 Road Transportation Volume in 2016

Item Passenger Volume (thousand people) Cargo Freight Volume (thousand tons)

Ning’er 1,220 2,400 Mojiang 1,330 2,420 Jingdong 1,360 3,350 Jinggu 1,370 3,510 Zhenyuan 980 2,570 Jiangcheng 840 1,810 Menglian 900 2,380 Lancang 1,490 3,460 Ximeng 750 1,750 Total 10,240 23,650 Simao 4,890 4,850 Pu’er City 15,130 28,500 Note: The data are from the Traffic Management Department of Pu’er City. For the project is still in the construction period, the target of lowering transport cost hasn’t been achieved because no distinctive change can be found in the passenger ticket fare and freight cost of transport on the main roads. Table4.3-11 Passenger Ticket Fare in 2016

Passenger Ticket Mileage Passenger transportation cost Item Fare (yuan) (miles) (yuan/km) Pu’er to Ning’er 19 45 0.42 Pu’er to Mojiang 42 158 0.27 Pu’er to Jingdong 89 250 0.36 Pu’er to Jinggu 32 138 0.23 Pu’er to Zhenyuan 52 182 0.29 Pu’er to Jiangcheng 29 147 0.20 Pu’er to Menglian 51 286 0.18 Pu’er to Lancang 59 176 0.34 Pu’er to Ximeng 77 235 0.33 Average / / 0.32 Note: The data are from the on-line time table of Passenger Transportation.

According to the village-level questionnaires, road condition, road facilities, and traffic condition all have been improved compared with last year. Table 4.3-12 Comparison of Condition of Roads in the Project Area (Average at Village level) Road Condition Road Safety facilities Traffic condition Percentage Percentage of With Safet Speed Percentage of road of cement hardened road road y Pedestrian limit accessibility in all road in the between safety Signs crossings (set) weather conditions (%) village (%) villages(%) facilities (set) 2016 64.28 21.42 71.42 1.71 1.71 0.57 28.57

2017 83.33 41.67 61.54 17.86 1.57 2.57 69.23 Note: The data are from statistics of survey by village leaders.

4.3.3.3 Local Road Maintenance According to the observation of the monitoring group, apart from road maintenance done by the maintenance stations, most of the villages and towns have organized volunteer villagers to do road cleaning and simple road maintenance to the village-level roads. For example, on the 1st day of each month, Xinping Village of Ning’er Town of Ning’er County organizes villagers (one person per household) to do road cleaning and maintenance work; Heping Village of Mengxian Town, on the 1st and 15th day of each month. Most of these farmers do these maintenance work and are difficult to be paid from it, thus, the arrangement of village-level road maintenance has to be done further. From village-level questionnaires, compared with the last year, the percentage of road maintenance organized by village has increased from 28.58% to 53.85%. 53.85% of the villages have appointed maintenance workers (14.28% in the last year) and 30.77% of the villagers were paid (none in the last year). 4.3.4 The Farmers’ Utilization on Transportation 4.3.4.1 Transport Vehicles From the aspect of transportation vehicles in family, 89.28% families owned vehicles, which coincides with the percentage from Baseline Report. The most commonly owned vehicle was motorcycle. Classified by economic condition of families, needy families mostly owned bicycles, tricycles, and motor cycles instead of

sedans, minivans and trucks. Non-needy families owned motor cars, farm vehicles, sedans and trucks. Details are as the following Table 4.3-12 and Table 4.3-13.

Table 4.3-12 Vehicle Owning Rate in Project Area (Unit: %) Rural Roads NJL Road Menglian-Meng’a Road With/Without 2015 2016 2015 2016 2015 2016 Vehicles Not Poor Not poor Poor Not poor Poor Not poor Poor Not poor Poor Not poor Poor poor Yes 90 96.67 81.82 86.67 100 90.66 79.31 84.33 83.33 96.3 75 92.19 No 10 3.33 9.09 11.43 9.34 13.79 10.45 16.67 3.7 12.5 6.25 Note: The data are from questionnaires. Table 4.3-13 Number of Transportation Vehicles

(Unit: %) With/without Rural Roads NJL Road Menglian-Meng’a Road transportation 2015 2016 2015 2016 2015 2016 vehicles Poor Not poor Poor Not poor Poor Not poor Poor Not poor Poor Not poor Poor Not poor bicycle/tricycle 1 1 0 0.07 1 5 0.3 0.19 2 2 0.17 0.14 scooter 0 0 0 0.01 0 10 0.17 0.07 2 27 0.33 0.08 Animal cart 0 0 0 0 0 0 0 0.01 0 0 0 0 Motor tricycle 6 14 0.06 0.01 1 10 0.04 0.05 1 15 0.33 0.22 motor cycle 103 133 1.33 1.08 36 162 1.04 1.18 13 155 1.17 1.17 Agricultural 24 32 0.11 0.26 19 33 0.04 0.21 1 16 0 0.14 vehicle/tractor sedans/mini 0 16 0.06 0.27 0 38 0.39 0.42 0 19 0.17 0.25 van truck 0 8 0 0.04 0 19 0.04 0.03 0 1 0 0 Note: The data are from questionnaires.

4.3.4.2 Habit of Going-out From the perspective of trip mode and trip purpose, since the construction of the project, the percentage of farmers going out on foot has increased and the purpose of going out was changed to buying life necessities, seeing a doctor etc. This shows that the project has brought some influence to farmers’ choice on trip mode and trip purpose.

Table 4.3-14 Trip Modes of Farmers in the Project Area (Unit: %) Rural Roads NJL Road Menglian-Meng’a Road Trip Mode 2015 2016 2015 2016 2015 2016 Driving 58.18 48.17 43.33 36.11 79.17 68.35 Public Transportation 1.36 0 6.11 4.44 0 13.92 Passenger Cars 19.55 26.22 51.11 16.11 75 21.52 Walking 20.91 54.27 30.56 50 36.67 8.86 Cars of Relatives or Friends 36.82 3.66 12.78 1.11 3.33 6.33 Others 13.18 3.66 16.67 7.78 3.33 8.86 Note: The data are from questionnaires. Table 4.3-15 Trip Purposes of Farmers in the Project Area (Unit: %) Rural Roads NJL Road Menglian-Meng’a Road Trip Purpose 2015 2016 2015 2016 2015 2016 Job-hunting 5.08 6.33 8.64 19.44 0 14.02 Taking the child to school 10.66 34.18 9.83 23.89 17.58 15.24 Trade 27.73 51.9 26.17 62.78 13.26 63.41 Shopping 32.52 73.42 32.67 83.89 37.42 75.61 Keeping Social 11.3 45.57 11.66 30 14.9 18.29 Relationship Seeing a doctor 12.54 48.1 10.48 34.44 16.44 32.93 Note: The data are from questionnaires. Besides, the most common destination of farmer’s going-out is the neighbouring villages. During the road reconstruction period, the frequency of their trip has decreased significantly and the expense spent on going-out of the interviewees along NJL Road and Menglian-Meng’a Road has increased (see details in Table 4.3-17). The interviewees (34.53%) said that it is most inconvenient to go to the neighbouring villages and the most dissatisfying situation is the bad road condition. However, from the distribution of questionnaires, this dissatisfaction to traffic has gradually decreased along with the construction progress of NJL Road and Menglian-Meng’a 49

Road (see details in Table 4.3-16). Table 4.3-16 The Most Distinctive Inconvenience in Traffic Considered by Farmer in the Project Area (Unit: %) Rural Roads NJL Road Menglian-Meng’a Road Reasons 2015 2016 2015 2016 2015 2016 No Crossing/Need Detouring 9.55 7.32 2.22 7.22 26.67 18.99 Poor Pavement Quality 76.82 79.27 95 77.22 70.83 68.35 Impassibility in Bad Weather 12.73 6.1 0.56 0.56 0.83 3.8 Be Prone to Traffic Accidents 0.45 2.44 0.56 1.67 1.67 3.8 Note: The data are from questionnaires.

Table 4.3-17 Number of Trips, Time and Cost of Trips in the Project Area

Rural Roads NJL Road Menglian-Meng’a Road Number of Number of Number of Trip Round-trip time Round-trip Round-trip time Round-trip Round-trip time Round-trip Round-trip Round-trip Round-trip Destination (minute) expense (yuan) (minute) expense (yuan) (minute) expense (yuan) (per month) (per month) (per month) 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 To neighbouring 11.78 4.51 97.3 36.6 16.01 16 5.68 6.4 29.43 26.75 12.41 21.79 19.93 5.57 11.53 42.3 3.29 12.5 Villages To Village 6.24 3.87 149.22 82.41 57.19 64.67 5.78 5.2 55.53 44.67 18.64 23.41 6.46 5.01 33.08 39.28 9.05 32.07 To Town 2.7 0.77 239.19 175.79 102.48 68.57 6.02 3.32 159.77 113.81 33.36 39.47 1.43 2.48 106.67 131.28 23.01 63.93 To Pu’er 0.21 0.09 672.4 449.08 270.67 160.92 0.6 0.29 379.43 318.03 73.49 101.52 0.04 0.16 720 480 400 247.5 Note: The data are from questionnaires. Table 4.3-18 Road Evaluation from Farmers in the Project Area (Unit: %) Rural Roads NJL Road Menglian-Meng’a Road Item Yes No Yes No Yes No Can the roads you usually use meet your outgoing 17.27 82.83 27.78 72.22 10.83 89.17 needs? Do you think the roads you usually use are safe? 15 85 20.56 79.44 10.83 89.17 Do you think the traffic signals are enough and 15.91 84.09 41.11 58.89 15 85 work? Note: The data are from questionnaires.

With the continuous implementation of the project, the condition of local roads and traffic safety signs have been improved that the road safety and convenience brought by road construction have been gradually recognized by interviewees. 62.26% of them thought the roads they usually take can meet their need for going-out; 57.85% thought the roads they usually take were safe and 56.75% thought the safety signs on the roads they usually take were useful for them. All these statistics have increased compared with those in Baseline Report (see details in Table 4.3-18).

4.3.4.3 Transportation Method of Agricultural Products to Markets The survey report shows that in the aspect of agricultural product transportation to markets, the ratio of buyers’ coming to the farmers’ and be responsible for product transportation has greatly increased. This might be because the convenience from road construction so that they rely more on the buyers. Table 4.3-19 Modes of Transporting Agricultural Products (Unit: %) Mode of Transporting Rural Roads NJL Road Menglian-Meng’a Road Agricultural Products 2015 2016 2015 2016 2015 2016 Driving 33.64 8.54 24.44 6.67 32.5 25.32 Cars of Relatives or Friends 25 1.83 7.78 0 9.17 2.53 Buyers’ Coming to the Farmers’ and be 33.64 78.66 30 57.78 6.67 36.71 Responsible for Product Transportation Regular Bus 0 0 2.22 0.56 0.83 1.27 Others 8.18 12.8 35.56 25.56 52.5 1.27 Note: The data are from questionnaires. 4.3.4.4 Farmers’ Needs and Worries on Traffic Farmers’ most urgent needs on traffic included road condition and road safety improvement. Meanwhile, considering from perspective of the increase in response rate, project area farmers have deeper understanding and will of participation in improving their own life through the improvement of traffic condition. Table 4.3-20 Project Area Farmers’ Consideration on Problems to be Solved in Road Construction (Unit: %) Rural Roads NJL Road Menglian-Meng’a Road Item 2015 2016 2015 2016 2015 2016 To be Safer 24.09 75.61 28.89 78.89 45 53.16 To Improve the Pavement 44.55 80.49 57.22 85.56 45 79.75 To create Job Opportunities 15 27.44 16.11 16.67 1.67 15.19

To Facilitate Trade 16.82 37.8 26.11 28.89 13.33 65.82 Note: The data are from questionnaires. On the other hand, villagers from different project roads worried about different things but the most prominent worry was the inconvenience in traffic and production. Apart from this, farmers affected by Menglian-Meng’a Road construction worried about environmental pollution and noise/construction in the evening; farmers of NJL Road and local roads, illegal land acquisition. Details can be found in the Table 4.3-21. Table 4.3-21 Problems Farmers in the Project Area Worry About Most (Unit: %) Rural Roads NJL Road Menglian-Meng’a Road Problems 2015 2016 2015 2016 2015 2016 Illegal Land Acquisition 28.64 50.61 24.44 48.89 59.17 17.72 Roads, channels etc. to be Destroyed 25 17.07 36.67 23.33 26.67 26.58 House Damage (Not Demolition) 10.91 4.88 15.56 13.33 36.67 11.39 Crop Yield or Crop Quality to be affected 21.82 26.22 13.33 12.78 33.33 12.66 Environmental Pollution 15.91 23.78 33.89 26.11 24.17 43.04 Noise/Construction at Night 14.09 10.37 34.44 20 36.67 44.3 Traffic/Inconvenience in Outgoing 41.36 67.68 40 61.11 74.17 73.42 Others 19.09 10.37 10.56 5 0 2.53 Note: The data are from questionnaires. From the household interviews given by the monitoring group, 49.31% of the interviewees thought that the implementation of the project has brought no influence to their life. The interviewees who thought it has brought influence pointed out that the most serious negative influence to their life was the destroy to ditches, road and cultivated land (see details in Table 4.3-22). Being negatively influenced by the project construction, 68% of the interviewees would seek for solution with village leaders; 48%, reported to the construction party; 24%, found relative staff. Thus, the above three parties played an important role in coordination between the PMO and farmers and communication among the three parties also facilitated the solution to farmers’ problem. Lastly, 36% of the interviewed households thought that the problems they reported were not timely solved, to which great importance should be attached. Table 4.3-22 Influence of Road Construction to Infrastructures

Negative Influence Households Percentage% No influence 179 49.31 Destroy to irritating ditches 92 25.34 Destroy to roads 108 29.75 Destroy to cultivated land and other land 101 27.82 Congestion of drainage 23 6.34 Noise 34 9.37 Stive 56 15.43 Water source pollution 14 3.86 Destroy to other equipment and appliances 6 1.65

4.4 Influence on Farmers’ Production and Life

4.4.1 Positive Influence (1) Employment The limitation in transportation facilities of Pu’er City has confined the communication between this city and other more developed areas, which has caused less employment opportunities, weak consciousness of acquiring relative employment information, and the chances to move to cities and raise in income. In recent years, the proactive employment policies enforced in Pu’er City has created 38,800 employment figure, comparing with that of last year, to 1,769,900. The number of the employed in the first industry has increased by 9,800 to 1146,700; in the second industry, increased by 15,600 to 167,500; in the third industry, decreased by 21,000 to 455,700. The number of newly employed in urban areas is 15,965; the reemployed laid off workers, 4,443; newly employed workers from rural areas, 20,072. The number of registered unemployed people is 10,594 and the registered unemployment rate in urban areas has dropped by 0.37% to 3.37%. It can be considered as a whole that there is a still tough but stable job market in Pu’er City. Table 4.4-1 Employment in the Project Area

Main Indicators 2015 2016

Employed figure by the end of the yea (thousand people) 1,747.6 1,769.9

Including 1,128.7 1,146.7

Employment in the first industry (thousand people)

Employment in the second industry (thousand people) 151.9 167.5

Employment in the third industry (thousand people) 467 455.7

Number of newly employed in urban areas by the end of the year 12,158 15,965

Reemployed laid off workers by the end of the year 3,097 4,443

Newly employed workers from rural areas by the end of the year 10,991 20,072

Number of registered unemployed people by the end of the year 11,067 10,594

Registered unemployment rate in urban areas (%) 3.9 3.37 Note: The data are from National Economic and Social Development Statistical Bulletin of Pu’er City (2015 and 2016). (2) Living Environment and Condition The statistics of the survey to village-level leading cadres shows that there is an obvious increase in home-stay tourist spots in the sample village. The fast development and expansion in tourism and increase in local income are attributed to the great importance of tourism attached by local government, a series of measures and policies. Table 4.4-2 Number of Main Infrastructure in the Sample Village Project Medical Financing Home-stay School Market Institution Institution Station Police Local Tourist Spot Rural Loan SocietyRural Loan Center, Dispensary Secondary School Coffee Collection Banking Outlets (thousand yuan) Trading Market Primary School Annual Income Tea Processing Clinic, Health Health Center Number Station Station ATM

Year

2015 12 5 5 13 8 3 5 6 7 1 18 1 150 2016 12 5 5 13 8 3 5 6 7 1 18 51 1,536 Note: The data are from statistics of survey by village leaders. Durable houseware consumption in project area is showed in the following table, in which the mobile and television owning rates are relatively higher that every household owns more than one. Meanwhile, for part of the affected households planned to buy household appliances of higher quality, the average of household appliance before moving into the new houses has decreased comparing with that of the last year. Table 4.4-3 Durable Houseware Consumption in the Project Area 55

Menglian-Meng’a Rural Roads NJL Road Main Durable Road Unit Goods 2016 2017 2016 2017 2016 2017

TV (Color) Set/household 1 0.95 1.12 1.12 1.1 1.03

Fridge Set/household 0.89 0.78 1.24 1.04 0.98 1.03

Solar Water Heater Set/household 0.92 0.83 0.99 1.01 0.94 0.94

Washing Machine Set/household 0.76 0.74 0.8 0.93 0.89 0.72

Fixed-line Telephone Set/household 0.01 0.03 0.14 0.09 0.03 0.23

Mobile Phone Set/household 2.47 2.54 3.04 2.97 2.49 2.66

Note: The data are from questionnaire results.

(3) Medical Treatment By the end of 2016, there were 50315 health organizations of different levels, among which there were 36 hospitals (including 18 state-owned hospitals, 1 enterprise-run hospital and 17 private hospitals), 103 township health centers, 5 community health centers (stations),316 clinics (dispensaries), 11 Centers for Disease Control, 11 Health Supervision Institutions (centers) in the project area. The number of sick beds of these organizations in 2016 has increased by 1,032 to 10,742. The number of medical personnel has also increased by 1,651 to 11,946, among which 3,181 were medical practitioners, 696 were assistant medical practitioners, 4,889 were registered nurses, 515 were pharmacists, and 507 were inspection personnel. There were 1,000 village clinics, 2,112 country doctors and 92 medical orderlies till the end of 201516. The urban and rural public health and medical service system has been improving.

Table 4.4-4 Health Care in the Project Area

Pu’er City Indicators 2014 2015 2016 Med ical Hospital 32 36 36

15 Medical room of village level not included 16The data are from National Economic and Social Development Statistical Bulletin of Pu’er City (2015). 56

Community Health Center 1 4 5

Health Center 103 103 103

Clinic, Health Center, Dispensary 247 291 316

Emergency Center (Station) 1

Blood Bank 1 Maternal and Child Care Service 11 Center (Station) The Center for Disease Control 11 11 11

Health Supervision Institution 11 11 11

Medical Science Research Center 2

Number of Sickbeds 9,416 9,710 10,742

Number of Medical Personnel 9,643 10,295 11,946 Notes: The data are from Statistic Yearbook of Yunnan Province (2017) and County government.

(4) Social Security In 2016, 1,582,100 people has joined the Urban Employees’ Basic Endowment Insurance, which has increase by 120,400 people compared with the number of last year. Among the insured personnel, 208,300 were enterprise employees, to which have increased by 2,300; 132,100 were insured inhabitants, by 2,100. The number of people who have new rural cooperative medical system has increased by 9,200 to 1,990,100 and the participation rate to the cooperative medical system has increased from 0.23% to 98.39%. What’s more, the raised fund has increased by 15.43% to CNY1,074,670,000. Totally, 5,685,500 people has gotten medical compensation from new rural cooperative medical system, which has increased by 8.29%. The medical expenditure of the System has increased by 19.31% to CNY1,027,290,000 and its ratio to the total expected fund has increased by 3.11% to 95.59%. In urban areas, the number of people who have been insured for unemployment has increased by 4,700 to 106,700. Those who have been insured for employment injury has increased by 7,100 to 159,700. Those who have been insured for maternity has increased by 2,800 to 135,500. There were 54 different adopting social welfare institutions, which was 13 less

than that of last year. In these 67 institutions, 5,980 beds were offered, which has increased by 1,00. The number of the adopted has increased by 40 to 1,559. In an overall view, the social security and social welfare service have been continuously enhanced.

Table 4.4-5 Social Security in the Project Area

Main Indicators 2014 2015 2016 Number of people who get urban basic endowment 159.1 1,461.7 1,582.1 insurance (thousand people) Including: Number of enterprise employees who get urban 110.6 125.0 194.8 basic endowment insurance (thousand people) Number of people who get residence endowment 1,281.7 1,296.5 1,323.9 insurance (thousand people) Number of people who get urban employees’ basic 191.9 2.6.0 208.3 medical insurance (thousand people) Number of people who get rural residence basic 128.6 130. 132.1 medical insurance (thousand people) Number of people who join new rural cooperative 1,999.2 1,980.9 1,990.1 medical system (thousand people) Number of people who get unemployment insurance 99.5 102 . 106.7 (thousand people) Number of people who get employment injury 142.6 152.6 159.7 insurance (thousand people) Number of people who get maternity insurance 127.8 132.7 135.5 Number of adopting social welfare institutions 61 67 54 Note: The data are from National Economic and Social Development Statistical Bulletin of Pu’er City (2015 and 2016). (5) Education and Culture In 2016, 3,384 students were enrolled by the general institutes of higher education and 10,655 were at school, including 2,054 graduates. 4,757 students were enrolled by different technical secondary schools and 12,932 were at school, including 3,748 graduates. 4,116 students were enrolled by vocational middle schools and 9,607 were at school, including 2,400 graduates. 38,514 students were enrolled by ordinary secondary schools and 112,733 were at school, including 36,838 graduates. 31,774 students were enrolled by ordinary primary schools and 178,827 were at school, including 28,451 graduates. Besides, 52,222 children were in kindergartens.

The enrollment rate of school age children was 99.87%; that of primary school graduates, 98.37%; gross enrollment rate of secondary school, 109.0%; that of secondary school graduates, 69.97%; gross enrollment rate of high school, 70.03%. The objective of a A-class demonstrative kindergarten in all the 10 counties (districts) has been realized and the balanced development of compulsive education in Jiangcheng and Ning’er has passed the assessment from the government. Moreover, the A-class A-level project of the No. 1 High School has been launched and the admission rate in college entrance examination has reached 90.6%17. In Pu’er City, there were in total 9 art performance groups, 11 cultural centers, 11 public libraries and 7 museums. The population coverage rates of broadcast and television were 97.2% and 99.2% respectively. There were 16 f-m broadcast station, 17 television relay station, 7 medium-short wave broadcast transmitting station, which service 271,400 digital television users.

Table 4.4-6 Educational Statistics of the Project Area

Main Indicators 2014 2015 2016

Dormitory Floorage in Secondary Schools (thousand m2) 1,307.49 1,361.95 1,522.47

Dormitory Floorage in Primary Schools (thousand m2) 1,199.3 1,267.6 1,402.88

Enrollment Rate of School Age Children (%) 997.3 997.7 998.7

Enrollment Rate of Primary School Graduates (%) 981.3 980.2 983.7

Gross Enrollment Rate of Secondary School (%) 1,070.6 1,070 1,090

Enrollment Rate of Secondary School Graduates (%) 691.5 680.5 699.7

Gross Enrollment Rate of High School (%) 695.4 702.6 700.3 Note: The data are from Education Bureau of Pu’er City.

17 From Government Report of Pu’er City (2017) 59

Table 4.4-7 Schools in the Central Project Area Number of Schools Total Staff Indicators Ning’er Jiangcheng Menglian Ning’er Jiangcheng Menglian 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016

NumberDifferent of Preschool Education 5 6 11 11 4 4 153 202 116 169 129 134 Primary School 38 38 22 22 29 26 1,136 1,137 554 584 743 705 Schools Ordinary Secondary School 10 7 7 5 6 344 Secondary School 10 9 7 6 4 5 530 540 246 260 338 184 High School 1 1 1 1 1 1 152 162 98 100 62 62 Vocational High School 1 1 1 52 61 90 91 42 41 Note: The data are from Education Bureau of Pu’er City.

(continued) Table 4.4-7 Schools in the Central Project Area

Number of Students at (the) School Indicators Ning’er Jiangcheng Menglian 2015 2016 2015 2016 2015 2016 Preschool Education 4,010 4,187 2,838 2,884 2,851 3,235 Primary School 10,790 11,083 9,168 9,113 11,615 11,912 Number of Different Ordinary Secondary School 7,209 4,419 5,797 5,838 5,748 Schools Secondary School 5,409 5,279 3,164 4,516 4,924 4,843 High School 1,946 1,930 1,255 1,281 914 905 Vocational High School 604 687 481 601 404 513

4.4.2 Skill Improvement for Farmers After having interviews with different organizations such as Pu’er Municipal Human resources and Social Security Bureau, Bureau of Agriculture, Office of Poverty Alleviation, Bureau of Industry and Information Technology, Health and Family Planning Commission, Women’s Federation, Labor Union, Transport Bureau and Traffic Department etc., the monitoring group were informed that the training projects of “Green Certificates & Science and Technology Training for New-type Farmers”, and the “Sunshine Project” for rural labor force transfer since 2004 have benefited the farmer trainees with the improvement in the consciousness of agricultural product marketing operation, rural labor force transfer and raise in income. During the recent 10 years, 69,944 people have finished “Green Certificates & Science and Technology Training for New-type Farmers” while among those people 62,052 became qualified and 34,218 were certificated with “Green Certificate”; 103,297 people finished “Sunshine Project”, among whom labor force of 79,597 people were transferred with transfer percentage of 77%. Apart from the above, many practical technique trainings considering local agricultural development and ecological resource advantage were also carried out to apply and promote new agricultural achievements and new technologies. For example, considering the problems women face when starting their business, Women’s Federation of all levels of Pu’er helped women to be employed by organizing skill trainings, industry drive, financial support, employment service etc. The 210,2-participant trainings on hand knitting of minority culture organized by Women’s Federation of Ximeng County have not only promoted the brocading and knitting skills but also helped 10,510 female Wa people to be employed and settled down. Pu’er Municipal Bureau of Agriculture has organized trainings like “Special Action Plan Training on Rural Labor Force Transfer” and “Training on New-type Skilled Farmers”. The Baiyulan Remote Education Center was used as a platform to give different kinds of agricultural skill trainings to 10,000 people, practical skill trainings to 47,000 people, trainings on food safety of agricultural product to 5,000 people, trainings on husbandry skills to 21,000 people, and 12 job fairs for the employment of rural labor force transfer. 61

Table 4.4-8 Relative Trainings in the Project Area (Mainly Women’s Federation ) Training Number of Number Number of Number of No. Reporter Title of the Training Category of Training Training Place Training Organizer Duration Periods of Classes Trainees Female Trainees (day) Training on Dahuangdi Group Pu’er AIDS prevention and 1 AIDS/Drug of Manlian Women’s Federation of Pu’er City 1 1 100 70 half City sexual transmission Prevention Community Municipal Labor Force Development and Promotion Training on Ximeng AIDS prevention and Association, Agricultural Bureau 2 AIDS/Drug Ximeng County 1 1 100 65 half County sexual transmission of the County, Women’s Prevention Federation of the County, government of Songyue Town Municipal Labor Force Development and Promotion Ximeng Association, Agricultural Bureau 3 Rum tapping skills Crop plating skills Ximeng County 1 1 100 65 half County of the County, Women’s Federation of the County, government of Songyue Town Training on Women’s Federation of Mojiang Mojiang AIDS prevention and 4 AIDS/Drug Mojiang County County, Narcostics Brigade of 1 1 200 110 half County sexual transmission Prevention Mojiang County Note: The data are from Women’s Federation of Pu’er City.

Through having interviews with farmers, and leaders of village and town levels, trainings in the project area for farmers were now mainly organized by related county-level group, advocated or arranged by village and town-level groups. For example, County Agriculture Bureau led the trainings on industry development and practical skills for those farmers in need and the group who led the industry support should provide with services like plant sprout, technical training and product subscription as well as introducing the consciousness transition to large-scale, professional industry development. The survey shows that 41.1% of the interviewees thought they and their family has gotten new production or job opportunity from the trainings, 58.22% thought their income was raised and 15.75% thought the trainings did no help. The top 3 training the interviewees participated were road maintenance skills, economic crop planting and crop planting skills. This shows that the trainings have basically meet the anticipation and need of farmers. Table 4.4-9 The Training Expected by the Interviewees Number of Percentage Percentage Category of Training Household Households expecting (%) (%) the training Road maintenance skills 84 57.53 221 60.88 Financial management 20 13.7 34 9.37 techniques Road safety 21 14.38 85 23.42 Environmental protection 52 35.62 157 43.25 Prevention to illegal wild life 3 2.05 10 2.75 trafficking Prevention to illegal human and 12 8.22 17 4.68 drug trafficking Crop planting skills 69 47.26 178 49.04

Economic crop planting 69 47.26 206 56.75 Skill training for migrant 12 8.22 67 18.46 workers Note: The data are from questionnaires. 4.4.3 Micro-credit Aid It is informed from the interviews that the micro-credit aid farmers in Ning’er County has gotten includes industry loan, start-up loan and small guaranteed loan. Loan was usually publicized by the government then applied by farmers, approved by

government and then banks, and finally lent by the bank with an amount from CNY20,000 to 100,000. By the end of 2017, industry loan of Rural Credit Cooperatives has been lent up and that of Postal Saving Bank was assessing. Women’s Federation of Jingdong County was making joint efforts with financial organizations to lend small guaranteed loan. Among the 7 years from 2009 to 2015, they have lent CNY98,360,000 to 1,676 females from 166 villages and 4 communities of the 13 towns of the county and helped 8,600 people to be employed. Among those creditors, 591 were benefited by supportive loans to start-up; 1,085, by small guaranteed loans. In Menglian County, there were many different ways to apply for agricultural loan to expand production scale like small guaranteed loan from Rural Credit Cooperatives and loans from Women’s Federation; however, few farmers applied for because of two reasons: on the one hand, the tea mountains and coffee production base were collectively owned by villages and the farmers or tea growers are employed passively; on the other hand, there was no better planting or breeding plan for farmers or tea growers to choose no need for much investment in planting and breeding, even farmers who joined cattle-raising artel didn’t consider loans. The survey indicates that 51.64% of the interviewed families has gotten loan or financial support and the average loans of the last year and this year were respectively CNY59,699.5 and CNY55,052. In ethnic minority families, 54.35% has gotten loan or financial support and the average loans of last year and this year was CNY54,190.5 and CNY65,476.2. The percentage of the loan amount of monitory families and the percentage of number of loaning minority families was all higher than the percentages of the samples. As for loan source, Rural Credit Cooperatives accounted for 78.03%; Bank of Agriculture, 13.29%; others, 0.58%. As for the purpose of loan, 63.01% was for house-building; business, 9.83%, agricultural investment, 14.45%; medical treatment, 6.36%; children’s education, 8.09%; others, 8.67%. 4.4.4 Typical Case From interviewing with the Poverty Alleviation Office of Ning’er County, the monitoring group noticed that as one of the first 12 poor counties to throw off the hat of poverty, Ning’er Hani and Yi Autonomous county has issued the policy of “311” to 64

support industry development. Specifically, for those enterprises that help registered poor farmers to develop their industry and get rid of poverty, the Ning’er County would also support those enterprises with the standard of CNY3,000 per farmer, for professional cooperatives that organize registered poor farmers to develop their industry and get rid of poverty, the Ning’er County would also support the cooperatives with CNY1,000 per farmer and give the farmers of well-developed industry with material reward of CNY1,000. This supportive policy aims to activate the market-leading role of the leading enterprises and the dynamic role of professional cooperatives. By walking on the industrial road of “leading enterprises and professional cooperatives with poverty households” and guiding each poverty household to develop at least two industry projects, the objective of poverty alleviation at the beginning, becoming well-off in the middle and log-term sustainable development in the future can be finally achieved. In 2016, 24 leading enterprises of this county has joined the project and facilitated 73 professional cooperatives to help registered poor farmers to get rid of poverty. Financial investment of CNY23,000,000 for industry development from the county government and CNY16,000,000 invested by leading enterprises have levered the sustainable industry development mode of leading of enterprises, linking of professional cooperatives, initiation of poor farmers and long-term cooperation. This mode has forged a series of advantaged industry with characteristics and found ways to raise poor farmers’ income and realized the three objectives of poverty alleviation, getting rid of poverty hat and income increase”. Through the interviews, the monitoring group acquired that NJL Road-related Ning’er County and Mengxian Town and Liming Town have also developed relative industries. Mengxian Town has developed citron and sweet potato plantation and Liming Town developed serotinous mango plantation in the mode of “leading enterprises and professional cooperatives with poverty households”. Specifically, the farmers organized professional cooperatives by buying share of it (The average loan is CNY50,000 dispersed in 3 years.), and then the leading enterprises provide farmers with plant sprouts, technical training and product subscription as well as introducing the consciousness transition to large-scale, professional industry development. Yituore 65

District of Huangzhai Village of Mengxian Town has set up Ning’er Lvyuan Farmers’ Agricultural and Breeding Professional Cooperatives, making full use of its advantages of natural condition and traffic location to develop citron plantation. Now, the planted acreage covers more than 40 ha, of which 26.67 ha has put in to production. With the help of Pu’er Lvhai Biological Development Company Ltd., the registered poor farmer Tang Zishun of Heping Village of Mengxian Town of Ning’er County has planted detoxification potatoes for 0.27 ha with the yield of 1.1 tons per mu(0.07 ha). For the company has provided him with sprouts and planting technical support and subscribed the sweet potatoes at the price of 2-4 yuan/kg, Tang Zishun has not only mastered the sweet potato planting skills but also gotten rid of the hat of “poor farmer” in 2016.

4.5 Land Acquisition, House Demolition and Resettlement

4.5.1 Resettlement Plan and Change Resettlement Plan of the project was drafted from Nov. 2013 and approved by ADB in January 2015. From June to November 2016, NJL Road Construction Project Headquarters Office, Offices of Land Acquisition and House Demolition of Ning’er County and Jiangcheng County have paid-off, re-measured and counter investigated the land for the project according to the assessed project construction drawing. In February 2017, The Updated Report on Resettlement Plan of NJL Road Project was handed in by PMO of Pu’er City to ADB for approval and in June 2017 it was approved. According to the latest Resettlement Plan, changes in resettlement of NJL Road Construction are as follows: (1) Collective rural land of 406.78 ha18 was acquisitioned with 11,915 people from 3,066 households affected. (2) Rural houses of 40,131.38 m2 were demolished with 1,242 people from 324 households affected. (3) For the sharp increase in collective land, the total expense has increased by

18 According to the statistics in appendix 5 of Progress Report of 2017 Q2, the final planned collective land acquisition was 446.33 ha. 66

CNY233,093,000 to CNY341,209,000. The main added acreage in land acquisition and house demolition was updated as in the following Table 4.5-1. Table 4.5-1 Change of Areas Affected by Land Acquisition and House Demolition under NJL Road Project19

Affected Affected people Perpetual Affected people Demolition Village Administr land County Acreage (Town) ative Household Populationacquisition Household Population (m2) Villages (ha) Minzheng 51 192 1.99 -4 -13 -94 Village Banhai 80 297 5.94 0 0 0 Village Manlian 128 572 9.078 0 6 1440 Village Xinping 157 596 10.686 -9 -44 -4150 Ning’er Village Town Taida 0 0 -0.0047 0 0 0 Village Xishitou 97 395 4.83 0 0 0 Village Wenquan 77 326 31.238 0 0 0 Village Yuhe Ning’er 0 0 0.002 0 0 0 Village Heping 89 330 19.276 0 0 0 Village Qianle 32 133 0.68 -3 -8 -229 Village Mengxian Anning -17 -50 1.85 -4 -3 2,700 Town Village Xuande 130 556 5.21 4 22 2,800 Village Yalu 114 480 17.752 7 29 1,830 Village Xianren 38 153 6.768 7 16 3914 Liming Village Village Wangjie 35 153 13.19 0 0 1292 Village

19 Positive value in the table indicates an increase while negative value indicates an decrease. 67

Tuanshan 78 349 10.2 11 59 5559 Village Shuicheng 125 135 26.42 0 0 0 Baozang Village Village Banhe 31 -331 5.864 0 0 0 Village Jiangbian 63 -671 17.23 0 0 0 Village Jiangche Menglie Niuluo 80 126 18.31 0 0 0 ng Town Village Dazhai 91 61 39.95 0 0 0 Village Basan 18 -165 6.7 0 0 0 Qushui Village Village Nuna 28 -150 5.792 0 0 0 Village Added amount 1,525 3,487 258.85 9 64 15, 062 4.5.2 Land Acquisition, House Demolition 4.5.2.1 Land Approval The Ministry of Land and Resources has approved the land for the construction of Lancang-Menglian-Meng’a Road Project of Pu’er on September 23, 2015 (Official Written Reply of Ministry of Land and Resources [2015] No. 647).

On October 10, 2012, Department of Land and Resources of Yunnan Province approved the preliminary assessment of land use in the road reconstruction project from Ning’er to Jiangcheng to No.3 boundary monument between China and Vietnam (Official Written Reply of Department of Land and Resources of Yunnan Province [2012] No. 195. Now, the land use of this project is undergoing further assessment.

4.5.2.2 Collective Land Acquisition By June 30, 2017, Meng’a road construction project had finished land acquisition for 90.93 ha in total, accounting for 80% of the plan. NJL road construction project has totally finished collective land acquisition for 417.61 ha (including new collective land acquisition 3.22 ha), accounting for 102.66% of the acreage of the updated plan. For the the poor geological condition of the project being easy to slide, the side slope of the road had to be gentle, thus, the acreage of land acquisition was increased. Progress of collective land acquisition is showed in the following table 4.5-2. 68

Table 4.5-2 Progress of Collective Land Acquisition

Monitoring Report Plan Monitoring Report No.1 Monitoring Report No.2 Total Village/To No.3 County Village wnship Land Land Land Land Land Acreage Household Acreage Household Acreage Household Acreage Household Acreage (ha) (ha) (ha) (ha) (ha) Nayun Mangzhang 7.8 29 0 0 5.39 20 0.68 41 6.08 Paliang 39.62 85 5.77 52 27.412 59 0.73 131 33.93 He’an 2.36 11 5.03 22 1.63 8 -0.57 25 7.23 Mengma Manghai 17 72 3.65 23 11.76 50 0.656 110 15.95 Menglian Mengnong 19.51 166 0 0 13.5 115 0.55 76 14.05 State-run Menglian Farm 7.19 36 0 0 0 0 0 0 0 Enterpris Luoxiaohai Gum Factory 4.64 0 0 0 0 0 0 0 0 es Mengma Tea Corporation 0 0 0 0 0 0 0 0 0 Mengma Gum Factory 1.41 0 0 0 0 0 0 0 0 Total 121.4 471 14.45 97 74.81 301 0.638 511 90.93 Ning’er Town 91.93 884 0 0 107.99 1,149 -5.81 -210 102.2 Ning’er Mengxian Town 53.75 455 0 0 51.93 552 7.29 219 59.22 Liming Village 68.33 753 0 0 55.09 586 6.66 -9 61.75 Baozhang Village 46.72 325 0 0 52.002 396 0.55 4 52.55 Jiangcheng Menglie Town 124.4 522 0 0 125.73 522 -5.9 2 119.8 Qushui Village 21.65 127 0 0 21.654 127 0.44 0 22.09 Total 406.8 3,066 0 0 414.39 3,332 3.23 6 417.6

Note:The data are from External Resettlement Monitoring Report (No.3).

According to the statistics collected by the monitoring group during household interviews, it is shown that interviewees of Meng’a Road were compensated by cash after land acquisition and 66.67% of the interviewees have been compensated. Those who haven’t been compensated was because of the dispute on the compensation standard. 97% of the interviewees of NJL Road were compensated by cash while 3% of them were compensated by land disbursed by the government. 97.94% of the NJL interviewees have been compensated. After land acquisition, farmer households of Meng’a Road Project mainly made up for the loss from land acquisition by income of other land, and being migrant workers etc. According to the interviews, the annual income of those households whose land were acquisitioned was CNY12,658 before land acquisition while after the land acquisition their annual income has increased to CNY29,188 through production from the compensation fee. The annual income of farmer households of NJL Road project also has increased from CNY8,591.8 to CNY14,596 through being migrant workers and running business to make for the loss. The household interviews also shows that the satisfaction to resettlement of farmer households of Meng’a Road was only 23.81% (NJL Road, 83.81%). The reason for this dissatisfaction was the compensation standard, the influence to life etc. Meanwhile, the monitoring group has to stress that this result may not be correct for the small quantity of sample households being interviewed. 4.5. 3 Resettlement 4.5.3.1 House Demolition During the construction of the project, PMO has made and issued The Announcement about the Land Acquisition and House Demolition of Second-level Lan’a Road Construction Project from the Government of Menglian Dai, Lahu and Wa Nationality Autonomous County (2013, Doc.No. 2 ), The Announcement about printing the Compensation Standards of Second-level Lan’a Road Construction Project from the Government of Menglian Dai, Lahu and Wa Nationality Autonomous County (issued by Menglian government in 2013, Doc.No. 46 ), The Announcement about Adjusting the Land Acquisition Standard from the Government of Ning’er Hani and Yi Nationality Autonomous County (issued by Ning’er government in 2012, 70

Doc.No. 174), and The House Demolition Plan of the Road Construction Project from Ning’er to Jiangcheng to Longfu (Ning’er Part) of Ning’er County (issued by Ning’er government in 2016, Doc.No. 24 ) etc. and specified the resettlement policies and law, compensation standard, implementation according to which the resettlement were implemented strictly. Some of the affected households lived outside the red line of road construction but quite close to the road. In view of the weak structure of their houses and the potential danger might be brought to, PMO has guaranteed the interest of these people and smooth construction of the project by bringing these houses into compensation. For this special reason, the actual land demolition was more than the planed. For those affected houses outside the red line of road construction, resettlement implementation organization would compensated them the same as other migrating people with the standard specified in Resettlement Plan. According to Resettlement Plan, 27,960 m2 of 155 households of 5 villages of Menglian County needed to be demolished. In this reporting period, there was an added acreage of 13,912.35 m2 of main room demolition of 56 households. By June 30, 2017, house demolition of 36,633.77 m2 of 140 households has been finished in total. Finished main room demolition is detailed in Table 4.5-3.

Table 4.5-3 Details of Finished Main Room Demolition of Meng’a Road Project

No.1 Monitoring Planed Demolition No.2Monitoring Report No.3Monitoring Report Total Report Village/To County Village House House House House House wn Househo Househo Demolition Demolition Demolition Household Demolition Household Demolition Household ld ld (m2) (m2) (m2) (m2) (m2) Mangzhang 252 3 0 0 169.92 1 731.9 4 901.82 5 Nayun Yunshan / / / / / / 164.58 1 164.58 1 Paliang 4,858 47 6,286.96 18 7,646.3 22 0 0 13,933.71 40 Mengma 2,046 18 0 0 2,039.01 8 4,282.84 12 6,321.85 20 Mangma He’an / / / / / / / / / 5 Menglian Manghai 588 9 117.32 1 1,877.12 16 859.61 5 2,854.05 22 County Mang’a 13,788 70 2,139.36 6 2,444.98 7 4,763.74 10 9,348.08 23 State-run Menglian 828 18 0 0 0 0 3,109.68 24 3,109.68 24 Enterprises Farm Luoxiaohai 5600 1 0 0 0 0 0 0 0 0 Gum Factory Total 27,960 166 8,543.64 25 14,177.3 54 13,912.4 56 36,633.77 140

Note:The data are from External Resettlement Monitoring Report (No.3).

From The Updated Report of Resettlement Plan, 40,131.38m2 of NJL road project needed to be demolished and 1,242 people from 324 households would be affected. In this reporting period, there was an added acreage of 10,224.82 m2of house demolition of 56 households. By June 30, 2017, NJL road project has finished house demolition for 10,224.82 m2 of 74 households in total, accounting for 25.45% of the updated Resettlement Plan. House demolition Progress of NJL road project is detailed in Table 4.5-4. Table 4.5-4 Details of Finished Main Room Demolition in NJL Road Project

Updated Plan No.3Monitoring Report Total County Village/Town Acreage(m2) Household Acreage(m2) Household Acreage(m2) Household Ning’er Town 3,000 12 1,797 10 1,797 10 Mengxian Ning’er 9250 37 140 1 140 1 Town County Liming 12,500 45 4,567 20 4,567 20 Village Baozang 5,855.36 98 706.95 8 706.95 8 Village Jiangcheng Menglie 8,015.72 111 2,597.68 28 2,597.68 28 County Town Qushui 1,510.3 21 416.19 7 416.19 7 Village Total 40,131.38 324 10,224.82 74 10,224.82 74

Note:The data are from External Resettlement Monitoring Report (No.3).

4.5.3.2 House Resettlement ķ House Resettlement of Meng’a Road Project By June 2017, in the 140 households whose houses had been demolished, 107 of them have been resettled. Among the resettled households, 33 of them were resettled collectively in the 3 resettlement spots of Dongkuoxiaozhai Group, Yindaizu Group of Paliang Village of Mengma Town and Manglang Group of Meng’a Village by PMO. Most of the households (27 households) has moved in to the new houses and less (4 households) will move in after the rainy season and the other 2 households who had bought commercial residential building had also finished the construction of the homestead. Other migrate households (including 55 new migrate households) were

resettled in a dispersive way and had moved into new houses. Table 4.5-5 Resettlement of the Affected Population in Meng’a Road Project No.1Monitoring No.2Monitoring No.3Monitoring Total Village and Report Period Report Period Report Period Enterprises concentra Dispersiv concentra Dispersiv concentra Dispersiv concentra Dispersiv ted e ted e ted e ted e Mangzhang 0 0 0 1 0 4 0 5 Paliang 0 4 26 6 0 4 26 14 Mengma 0 0 0 12 0 8 0 20 Manghai 0 1 0 16 0 5 0 22 Meng'a 0 0 7 8 0 8 7 16 Heyang 0 0 0 3 0 2 0 5 State-run Menglian 0 0 0 0 0 24 0 24 Farm Luoxiaohai 0 0 0 0 0 0 0 0 Gum Factory China Tower 0 0 0 1 0 0 Pu’er Branch 0 1 Total 0 5 33 47 0 55 33 107 Note: The data are from External Resettlement Monitoring Report (No. 3).

ĸ House Resettlement of NJL Road Project

There were 4 resettlement spots being constructed along NJL road construction, including Wulukeng resettlement spot, Jiaotang resettlement spot, Liudui resettlement spot and Baozang resettlement spot, which will resettle 59 households. The construction of new houses of Wulukeng resettlement spot, Jiaotang resettlement spot, Liudui resettlement spot will be finished before the end of February 2018. The ●●● Typical Case

Most of the farmers of Dongkuoxiaozhai Village lived in the old and poor houses of “crossing structure”. In contrast, the new houses were made with bricks. Last year, main body of the new houses have been finished with the whole house construction uncompleted while this year, most of the houses have been built with landscaping engineering finished. The reloacatees have moved in to the new houses and the resettlement houses have exerted their functions.

The houses of resettled household of Dongkuoxiaozhai Village ---- contrast between the old and new house ●●● resettlement of Baozang resettlement spot was still in the phase of preparation and it is estimated that the construction of new houses of this spot would be finished at the end of May, 2018. Based on the monitoring report on the resettlement of Ning’er-Jiangcheng road project, the progress of house resettlement of NJL road construction project was comparatively slower because of two causes. Firstly, the rainy season has postponed the moving-in. Even those who have signed the house demolition agreement had to wait and move in after the rainy season so that the old house demolition work could be started. Secondly, the migrates who chose dispersive resettlement had difficulties in choosing a suitable homestead for house construction.

4.5.3.4 Livelihood Restoration To help the farms restore their livelihood as soon as possible, local governments and the project implementation parties have taken different measures such as organizing trainings on industry development an practical skills, granting loans to farms and encouraging them to buy shares, helping the farmers to start their own business after applying for micro-credit loans. According to the field survey of the monitoring group, 51.6% of the interviewees has gotten loans or financial support. The average loan amount was CNY55,052 and was mainly used for house construction and business. 29.2% of the farmer interviewees said they have been trained with plantation skills; 41.1% said they have gotten the opportunities to produce or be employed; 58.22% thought their income

●●● Typical case Mengma Tea Company would build on the new address an “experience park” comprising tea-picking, tea culture demonstration, accommodation, entertainment, fishing, plank road walking, out-door bound trainings etc. Some of the relocatees have planned to and bought engineering equipment and actively participated in the local rural road construction; some were determined to expand the deep processing company of agricultural products (tea, coffee); some have bought beef cattle and joined cattle raising artel; some have started business by running a small shop.

Flat site of “Tea Culture Experiencing Park”

Engineering equipment bought by relocatees 76 Small shop run by relocatees ●●●

have been increased. From the above survey, it can be found that PMO has brought positive influence in restoring the farmers’ livelihood, raising their income and improving living condition. 4.5.4 Restoration of Infrastructure During the construction of the project, it was inevitable that some ditches, roads for transporting, village-level roads, cables were destroyed at verifying degrees. When receiving the report from the villagers, the construction party of the project have solved the problems in an active attitude by seeking for solutions with project headquarters, PMO and Department of Land and Resources and village leaders. Finally they restored the infrastructures by adding new drainage channels around the new houses of the farmers, harden the roads around the new houses and equipping the street lamps with solar energy panel etc..

●●● Infrastructure Restoration Case of PMO of Menglian-Meng’a Road Construction Project During the construction, PMO of Menglian-Meng’a Road project has made compensations not only on land acquisition, house demolition and resettlement but also the infrastructure and the appendants of the ground. The destroy of infrastructures such as water and electricity supply, biogas digester, fence even the toilet pits that may cause inconvenience to the farmers will all be compensated and all the affected ditches, roads, street lamps were all restored in time to protect the farmers’ interest.

New House of a Farmer from Dongkuoxiaozhai ---- with new drainage around (2017)

New House of a Farmer from Manglang of Meng’a Village ---- with village road hardened

New drainage, solar-energy street lamp, and satellite television receiving antenna

5Temporary Land Acquisition The temporary land in Menglian-Mang’a Road construction is state-owned land acquisitioned by the Land Department and the construction party had to pay for use in a certain period. After the construction, the land has to be returned to the Land

Department. By June 30, 2017, land of 19.102 ha was temporarily used, accounting for 39.42% of the planned temporary land of 48.45 ha. All the sections along NJL Road have spoil grounds but most of the spoil grounds of road sections are not located as on the design drawing but located according to the spoil ground agreement after negotiation with villagers or village collectives. Now, all the construction organizations had reported the temporary land acreage for spoil ground in their own road sections. It is stressed in External Resettlement Monitoring Report that no explicit party taking the responsibility of water and land protection in the spoil ground agreement of NJL Road. Though there was no severe problem of water and soil erosion and water pollution now, it is a hidden trouble of water and soil protection after the retreat of construction organizations. By June 30, 2017, temporary land acquisition of 81.22 ha of 273 households has been finished. (6) Aid to the Vulnerable Group During the land acquisition and house demolition of the project, PMO has given corresponding aid to those poor households, households of 5 guarantees and the

●●● Typical Case Headquarters of Meng’a Road project have helped the 1 household who enjoy the five guarantees by offering free cement for 5 tons and the 2 households with disabled person by offering free cement for 1 ton and 4 tons respectively, which have contributed in their house construction and moving into the new houses.

New house of the household of five guarantee New house of households with disabled person (Manglang of Meng’a County) (Hegelao Village) ●●● households of disabled persons. The poor households overcame poverty by the support from the precise poverty-alleviation of the county or town governments and

the households of 5guarantees and the disabled were by both the above and aperiodic cares and material support to them.

4.6 Other Impact

4.6.1. Culture Protection and Promotion to Tourism and Foreign Trade Most minorities in the project area, like Ha’ni, La’hu, Wa, and Dai Nationality, have their own religious believes, for example, worshiping divine tree or relics. Taking this issue into consideration, the primary design of the project had marked that all divine trees and cultural relics would not be affected. The construction of two roads in the project involves the divine trees for sacrifice and after several negotiation the villagers agreed to transplant the tree after a rite of local customs with all the expense included in the resettlement fees. If there is any dispute on divine trees or cultural relics during the construction, the Culture Protection and Management Committee will confirm the authenticity and then the project will protect or resettle them according to local culture and religious rites. As a city of minorities and colorful minority culture, there are 26 ethnic minorities in Pu’er City. Different minority festivals, like February Festival, June Festival, October Festival of Hani Nationality, Takuo Festival, Hulu Festival of Lahu Nationality, Wooden Drum Festival and New Rice Festival of Wa Nationality, Mikaha Festival and Torch Festival of Yi Nationality, Closing-door Festival, Opening-door Festival and Water-sprinkling Festival of Dai Nationality, have come down for thousands of years. The two newly popular festivals of Hani Nationality, International Twins Day of the Tropic of Cancer of Mojiang and Hani Festival of Jiangcheng County, shows vitality, creation and heritage of a Hani fesitivals of year. As a city with minority characteristics, Pu’er City enjoys its rich tourist resources and great potential. In 2016, Pu’er City focused on 10 tourist project under construction like “Town of Ancient Tea Horse Road”, 3 newly-commenced projects like Xikangyunshe Resort Hotel, 7 prior projects like Pu’er Xiangshan International Health Resort Area. Meanwhile, 12 provincial characteristic tourist villages of 4 groups have passes the assessment of the authority and 12 tourist villages of Yunnan

minority characteristics, 12 ancient villages of Yunnan Province and 9 tourist villages for poverty alleviation are carried forward. What’s more, the initial draft of the plan of 4 national tourist villages for poverty alleviation had been finished, and “The Special Project of the Help from Thousands of Enterprises to Thousands of Villages” are

●●● Typical Case There is a natural village of a history of more than 500 years named Bangzha in Xuande Village beside the NJL Road, which has been classified into the second group of Chinese traditional villages of high value for protection in 2013. 366 people from 75 households live in this village and support themselves by tea plantation, flue-cured tobacco and some households breeding. In the long production and life, the local culture of ethnic minority of “Bangzha culture”, a combination of Hani tea culture and culinary culture, has been formed and the traditional “Kunu Festival” of strong pristine culture has been kept. In every Lunar June 24, a splendid worshiping and celebration are held, attracting people around the villages. The construction of NJL have passed by the front gate of the village with land acquisition instead of house demolition. Now all the land have been compensated. However, for the inconvenience brought by road construction to villagers and travelers, the number of people coming for travelling have decreased. The monitoring group have noticed that although being affected by the project construction, villagers still support the road construction and hold less disputes on land compensation. The main reason is that the village appearance has been improved by plank road building, ditches, road hardening, street lamps, and tourism plan etc. after the demonstration projects of ethnic minority union. Villagers found convenience in life and increase in income through the tourism development. Therefore, the positive attitude of villagers shows that they are expecting the completion of road construction which would result in more travelers, development in agritainment, traditional handcraft of ethnic minorities and Hani culture as well as transportation of their own agricultural products to other places and increase in income. ●●● carried on. 137 pair work of villages had been finished and 4 home-stay inns have passed the evaluation and re-check. The statistics from Tourism Development Committee of Pu’er City shows that, through focusing on tourism promotion, participating different tourist fairs and marketing activities, the investment to the key tourist programs in 2016 has reached CNY2,460.000,000. The number of foreign travelers in this year were up by 23.42% 81

year-on-year to 74,200 and the number of domestic travelers were up by 35.62% year-on-year to 20,656,200. The total tourist revenue were up by 56.59% year-on-year to CNY16,836 million. Combining with the road construction project, it can offer better road condition and traffic facilities and bring momentum to the tourist development of project area. As the only one area in Yunnan Province that connecting three countries (Myanmar, Laos and Vietnam), Pu’er plays an important role in the communication between the countries in Greater Mekong Region. In 2016, Pu’er City has deepen the communication with neighbouring countries and areas and has enhanced the infrastructures of Mengkang Port for “one port two inspections” that have made the border trade among China, Laos and Vietnam more active than before. The construction of the border trade cooperation area has been moving forward with steady steps that the customs turned in by Menglian Port are in the front rank with CNY909 million. Considering that there is only 3 class-one ports in the 20 border crossings, the construction of this road project will upgrade Longfu Channel to the 4th class-one port to satisfy the border trade need between Vietnam and China. In 2016, the total import and export volume has increased by 36.2% to USD1,121,810,000 of which the import volume has increased by 91.1% to USD925,430,000 and the export volume has decreased by 42.1% to USD196,380,000. In the total import and export volume, that of general trade has dropped by 2.2% to USD444,250,000 of which the the import volume has increased by 62.4% to USD372,660,000 and the export volume has decreased by 68.1% to USD531,420,000. Broader trade volume has increased by 102.8% to USD568,340,000 of which the import volume has increased by 112.6% to USD531,420,000 and the export volume has increased by 22.0% to USD36,290,000.

Table 4.6-1 Tourism Arrivals and Income of the Counties in 2016

Foreign Travelers Domestic Travelers Total Tourist Income Travele Expecte Expected Expected Expected Expected rs in d Travelers in year- Expected Travelers Travelers year-on Travelers Travelers year-o Travelers County(District) 2016 Traveler 2016 on-ye Travelers to in 2016 in 2016 -year in 2016 in 2016 n-yea to (thousa s to (thousand ar Travelers (thousand (thousand (%) (thousand (thousand r (%) Travelers nd Traveler people) (%)) % people) people) people) people) % people) s% Simao District 14.9 14.9 7.97 100.00 5,451.3 5,878.1 30.47 107.83 4,243 5,016 51.31 118.22

Ning’er County 0.85 1 26.58 117.65 1,493.1 1,787 44.81 119.68 1,110 1,355 56.29 122.07

Mojiang County 0.96 0.96 7.87 100.00 30.8.3 3,352.1 34.83 111.43 1,900 2,356 58.76 124.00

Jingdong County 0.26 0.26 8.33 100.00 1,059.6 1,203.3 36.27 113.56 672 876 65.60 130.36

Jinggu County 0.32 0.32 6.67 100.00 1,317.6 1,563.7 42.41 118.68 1,110 1,337 52.97 120.45

Zhenyuan County 0.11 0.12 20 109.09 636.5 723.9 36.48 113.73 441 532 53.31 120.63

Jiangcheng County 8.1 8.3 10.67 102.47 999.6 1,008.9 22.13 100.93 799 871 39.58 109.01

Menglian County 26.9 35.4 42.17 131.60 2,011.1 2,203.5 32.57 109.57 1,536 1,871 57.09 121.81

Lancang County 10.08 10.5 12.54 104.17 1,873.2 2,282.1 48.63 121.83 1,540 2,099 75.8 136.30

Ximeng County 2.52 2.53 8.58 100.40 573.6 653.6 39 113.95 422 523 59.94 123.93

Pu’er City 65 74.2 23.42 114.15 18,424 20,656.2 35.62 112.12 13,772 16,836 56.59 122.25 Note: The data are from the Tourism Development Committee of Pu’er City.

4.6.2 HIV/AIDS Prevention

Comparing with new highway construction, road upgrading brings less negative influence on HIV/AIDS prevention. However, the migrant workers and the mobility caused by convenient transportation have increased the risk of HIV/AIDS transmission. The local government has established corresponding system to cope with AIDS and drug to guarantee the implementation of protective polices and the carrying-on of all the measures. In June of 2016, Pu’er City has organized the 4th Mobilization Will of People’s War against AIDS and made Implementation Plan of the 4th People’s War against AIDS (issued in 2016). During the implementation of this project, posters everywhere, giving out promotional materials, and education to the people have greatly improved the AIDS prevention knowledge of farmers. The local governments in the project area have built an anti-HIV/AIDS-and-drug mechanism. During the construction, posters, materials, publicity and education will also help to strengthen the awareness of HIV/AIDS prevention among local farmers.

Table 4.6-2 Families in Project Area Benefited by AIDS/Drug Prevention Program Rural Roads NJL Road Menglian-Meng’a Road Item Han Ethnic Han Ethnic Han Ethnic Nationality Minorities Nationality Minorities Nationality Minorities Families that have been publicized by 54.17 86.21 30.61 63.57 28.57 16.92 AIDS prevention(%) Families that have been publicized by 33.33 72.41 8.16 51.94 28.57 21.54 drug prevention(%) Note: The data are from questionnaire results. 4.6.3 Infection Risk Decrease People in Pu’er City who were infected with notifiable infectious diseases of category A and category B has dropped by 7.65% to 5,964 and 87 patients were reported dead. The morbidity rate of notifiable infectious diseases has dropped by 7.24% to 228.94/100000 persons and the death rate, by 10.84% to 2.96/100000

persons. 4.6.4 Capacity Building Capability building of the project organizations includes 10 consulting services bought in 7 contract packages, and 2 of the 7 are financed by ADB and 5 are invested by the government. All the capacity building are undergoing now. Table 4.6-3 Planned and Real Condition of Consultant Service Purchase Real-time No. Content of Consulting Service Consultant Status Project Management Consultancy 1 Egis International In progress (PMC) Capability Building –human 2 - In progress trafficking and drug trafficking Project Management/transport 3 - finished consultant 4 External monitoring –EMDP Yunnan Academy of Scientific and In progress 5 Capability Building-Gender Plan Technical Information, Scientific and In progress Project Performance Monitoring Technical Consultant Development Center 6 In progress System (PPMS) of Yunnan University Guangxi Transportation Research & Consulting Co. Ltd., Yunnan Fangyuan Science and Technology Co., Ltd. (environmental protection), Kunming 7 External monitoring-environment In progress Longhui Engineering Design Consulting Company, Yunnan Jinyu Ecological Engineering Consulting Co., Ltd. (water protection) Capability building-social 8 Hohai University In progress security/resettlement Road safety design and audit Beijing Zhongjiaohuan Science and 9 In progress consultant Technology Company Capability building – Wildlife 10 Wildlife Conservation Society (WCS) In progress trafficking

5. Monitoring Conclusion

5.1 Assessment to the Implementation of Action Plan

According to the comparison table of EMDP, the monitoring group has made a comparative evaluation to the general implementation of the project. Details can be found in Appendix 1 (Checklist of EMDP). The achievements and actions been taken by PMO during the project implementation are shown in Table 5.1-1. Table 5.1-1 Summary Sheet of Achievements/Actions No. Details By June 2017, 16.25% of the regional road improvement has been finished. Subgrade work: The construction of Menglian-Meng’a Road has been started on March of 1 2016 and 40% has been finished by June 2017. The construction of NJL road has been started in September 2016 and 25% has been finished by June 2017. Pavement work was expected to start in 2018 Q4. 2 Compensated most land acquisition and house demolition in time and in full amount 3 Helped the disadvantaged group by making policies of “registration of green card” 4 Constructed 4 coach stations 5 Employed local people (including women and minorities) during the construction Bought life and construction materials locally (totally CNY27,168,300), rented places for 6 office space, production field, and engineering equipment (totally CNY7,823,800) 7 Carried out activities of AIDS & Drug Prevention Provided with trainings of advanced agricultural planting skills, process technology of 8 agricultural and sideline products, non-agricultural employment skills, road maintenance and AIDS prevention etc. 9 Promoted tourism by publicity, home-stay inns 10 Formed a mechanism for appeal and compensation and trained the project subject body

5.2 Problems

(1) No Supervising and Investigating Mechanism to the Appeals of Farmers To make sure that the problems given by farmers could be solved, PMO has established a comparatively thorough mechanism by offering different appealing channels. However, the handling to the problems given by farmers were not satisfactory. From the survey questionnaire, 36% farmers thought the problems they found were not solved timely. In view of this, the monitoring group has suggested

PMO to focus more on this kind of issues, establish a scrutiny system for potential problems and form a supervising and tracing mechanism for appealing before receiving any complaint from farmers. (2) Difficulties in the Progress of the Road Maintenance Work of Village Roads The village road maintenance work were voluntarily undertaken by farmers before, but this project hopes to build a professional, paid road maintenance mechanism by the road construction and the establishment of relative organizations so that local people can get stable income and the road get more safety. The problem was that the limit project time for village road maintenance mechanism change and the slow progress of the building of road maintenance system has made the establishment of road maintenance system less fast which need to be committed in the future. (3) The Slow Work of Prevention to Human and Drug Trafficking In EMDP, the work of human trafficking and drug trafficking prevention were arranged. However, the work of this part requires the deep cooperation with local Public Security Bureau and Department of Hygiene which is quite hard to realize. Though PMO has made relative publicity work and training during the implementation of the project, the finish of the plan of “establishing checking points and supervising equipment” are meeting great difficulties.

5.3 Conclusion

From the survey and investigation of the monitoring group, the implementation of EMDP is fruitful in the following aspects: (1) All the residents and construction parties should implement seriously according to EMDP to assure the success of it. (2) Main indicators raised in EMDP should be implemented orderly. (3) Resettlement work went smoothly that most of the compensation fee were paid in full amount to those people been affected. The livelihood were well restored after resettlement, especially the higher quality and larger acreage of new houses. The livelihood restoration of minorities was as good as the Han people and the average pure income of minorities has been raised.

(4) The environment for the development of minority areas is improved, which has promoted the development of tourism. (5) The educational level of minorities in the project area has been raised. The targeted trainings for farmers are speed up. The hygienic condition of minorities are improved step by step and the morbidity of AIDS and A-class and B-class notifiable communicable disease has been decreased. (6) Minorities and the disadvantaged group were benefited in the implementation of the project.

5.4 Suggestions on Project Implementation

Based on the survey on the baseline plans of minorities, the monitoring group suggests that to achieve the development targets of minorities, the following should be taken seriously during the construction: (1) More coordination and communication with all the parties. EMDP is not only based on this project, but also on the joint efforts of all the organizations involved such as local government, contractors, Labor Bureau, Transportation Bureau, Minority and Religion Bureau, Labor and Social Security Bureau, Tourist Bureau, Women Association, Human Resources etc.. Considering the complexity and difficulties in implementation, coordination and communication with other parties can definitely facilitates the completion of the project. (2) Much attention to the negative influence caused by construction. Feedback from by villagers during the field investigation and experiences in previous projects suggested that highway construction usually brings negative influence on local people’s life. For example, their outgoing will be directly influenced. The destroyed producing and living facilities like ditches and pipe network, raised dust and noise bring inconvenience and trouble to people’s life. The newly built resettlement sites didn’t supply water and electricity and those temporarily requisitioned land could not be restored in time etc.. This project oversees these potential problems and will supervise the construction to minimize the above negative influences and solve new problems in time.

(3) Continuous monitoring on the project and statistics collection. Monitoring on the project involves large amount of data collection and it would be difficult to trail after the dynamic data during the construction. PMO should pay special attention to the date collection of highway construction progress, local labor force, local materials, training, and solutions to negative influence on villagers etc.

Appendix 1 Checklist of EMDP

Actions Monitoring Indicators and Sources 2017 Sources of Statistics

A. Project Benefits and Improvement Measures

1. Regional road development Subgrade work: The two contractors of - Improve the 33 sections of local Menglian-Meng’a Road had started roads with a total length of 6,000 construction since March 2016. By June km 2017, 40% of the construction work value has - Repair/renovate NJL Road and been finished with an estimated value of Menglian-Meng’a Road CNY172 million. The number and length of improved Quarterly Progress Report Roadbed construction of NJL Road was rural roads (2017Q2) started in October 2016, and by June 2017, 25% of the construction work value has been finished with an estimated value of CNY141 million. The pavement work was expected to start in 2018 Q4. Management Manual for Cadres The number of rural beneficiaries of The total population of the project area was of Yunnan Province (2017) and road development and the ratio of 2.3026 million in 2017, and minority Statistic Yearbook of Yunnan minority members population took up 69.49% of the total. Province (2017) The number of improved road spots, and Connecting to 1,200 km of lower level village Memo of ADB Loan Review the number and mileage of maintained road. Mission village roads PMG and county governments decided to

harden all these roads instead of spot improvement. Road maintenance was voluntarily done by villagers. Road maintenance system has not been established. 2. Improve village roads and transport In the aspect of rural roads, up to June 2017, service The number of improved village roads except XXMM-Sub1 (contract package 1 of - Improve village roads Ximeng County), all the contract packages of - Pilot site for rural transport rural roads have been signed, started and service The mileage of improve village roads moved forward with the overall completion PMO and contractors percentage of 4.53% with an estimated value of CNY89,400,000. The number of employment days The construction completion of Zhenyuan created was 70%. 4 newly build coach stations, including The number of introduced rural and Department of Transport Jiangcheng Coach Station built in the project functional traffic services Management of Pu’er area 3. Improved road safety Collision accident rate of 2016 (/100,000 - Install road safety facilities, people) in the project area has decreased from including traffic signs, speed 13.05 to 11.21. bumps and pedestrian crossing Death rate in traffic accidents Decrease of accident rate Traffic Police Division of Pu’er - Organize education programs and (person/100,000 persons) in the project area programs on community has decreased from 11.82 to 9.99. awareness Accident rate per 100 cars has decreased from - Establish comprehensive data 1.71 to 1.43.

base of road accidents Death rate per 100 cars has decreased from 0.05 to 0.04. Injury rate per 100 people has decreased from 0.7 to 0.59. Economic loss rate per 100 cars has decreased from 3,600 yuan to 3,000 yuan. By the end of June 2017, 693 and 216 sets of The number of road safety signs road safety signs were installed along NJL Traffic Police Division of Pu’er installed Road and Menglian-Meng’a Road respectively. By the end of June 2017, 428 and 51 sets of The number of effective measures to speed limit facilities were installed along NJL Traffic Police Division of Pu’er limit speed Road and Menglian-Meng’a Road respectively. The number of local communities

received trainings on road safety

Preparation and distribution of 600 pieces of NJL Roads and 560 pieces of Traffic Police Division of Pu’er Conscious building materials Meng’a Road

4. Economic returns of the project Among the 345 nontechnical staff of NJL - 50% of nontechnical jobs given Road, 80 were women (54 were locals), The number of nontechnical jobs to ethnic minority members, taking up 23.2% of the total; 298 were local provided for local people (including females, poverty population, people, 86.4%; 271 were minority members, Provided by contractors those provided for minority members those who affected by the project 78.6%; 55 were from families affected by and females) and other local groups. land acquisition and house demolition, - Utilize local resources and local 15.9%; and 102 were poor people, 29.6%.

construction materials As for the 123 people hired as nontechnical workers for Menglian-Meng’a Road, 26 were females (including 4 from local community), accounting for 21.1% of the total; 25 were locals, 20.3%; and 31 were minority members, 25.2%. By July 2017, the contractors of NJL Road had bought food 639 times and agricultural products 390 times, amounting to 1.2549 and The amount and value of products 0.4033 million yuan respectively; those of Provided by contractors procured locally Menglian-Meng’a Road had bought food 483 times and agricultural products 28 times, valuing 54,300 and 105,000 yuan respectively; The constructors of NJL Road rented 50,310 m2 of office and production space and construction machines 236 times, costing 880,650 yuan and 2.5985 million yuan The number of rented house/land respectively. Those of Menglian-Meng’a Provided by contractors Road rented 3,650 m2 of office space and construction machines 128 times, spending 110,480 yuan and 4.224 million yuan respectively. The source and cost of construction The total value of construction materials like materials, and the percentage in total cement, sand and stone of NJL Road reached Provided by contractors procurement 6.0071 million yuan, accounting for 40% of

the total procurement; that of Menglian-Meng’a Road was 19.3436 million yuan, 35% of the total procurement. 5. Capacity building measures The number of trainings County government, women federation, labor - Technical trainings on cash crop union, HR, bureau of labor and social growing security, bureau of industry and information - Non-agricultural skills trainings technology, etc, have been hold 20 trainings Quarterly Progress Report which are coffee, tobacco, pest control, The number of minority trainees (2017Q2) employment skill, rural e-commerce, border trade, women business guidance, etc. among them, women accounts for 43.4%, ethnic minority accounts for 76.9%.

B. Addressing social risks and mitigation measures

1. Protect ethnic minorities cultures The number of awareness building Trainings on ethnic minority culture and raise the awareness of such programs and the number of attending protection were added to workers. protection workers Taking the local worshiping divine tree or - Raise the awareness and The number of ancient trees/relics relics into consideration, the primary design sensitivities of construction appraised and conserved of the project had marked that all divine trees workers during construction and cultural relics would not be affected. The Provided by PMO - Avoid damage to ancient trees construction of two roads in the project and sites in the process of project The number of consultations with involves the divine trees for sacrifice and design. minority communities around cultural after several negotiation the villagers agree to - Cultural Protection Bureau issues, especially ancient trees/relics transplant the tree after a rite of local customs appraising ancient trees and with all the expense included in the cultural relics resettlement fees. If there is any dispute on

divine trees or cultural relics during the construction, the Culture Protection and Management Committee will confirm the authenticity and then the project will protect or resettle them according to local culture and religious rites. 2. Minimize the risk of infectious The clause of trainings of HIV/AIDS Trainings on the prevention of AIDS and STI diseases consciousness to all the people involved are included in both project tenders and I. Raise the awareness of preventing is included in the tender of contractors. contracts. AIDS and other Sexually Transmitted By June 2016, contractors of the 2 regional Infection (STI) Number of training participants/number roads have provided the construction workers - The contractors provide trainings of trainings organized for workers with 16 trainings on drug prevention, health Quarterly Progress Report to all workers and managers in care, HIV/AIDS etc. (2017Q2) accordance with the provisions Number of materials made and 600 copies of consciousness improvement under the tender documents distributed for consciousness have been distributed in NJL Road project; II. Prevention and Control over improvement 560, Meng’a Road project. malaria among construction workers Condoms distributed 30 - Keep the construction site clean and equipped with sewage 340 in NJL Road project; 160, Meng’a Road Mosquito nets offered system project - Mosquito nets and mist spray in For 119 times in NJL Road project; 93, Times of mist spray in workers’ shed the workers’ shed Meng’a Road project Provided by contractors - Medication to those infected Number of workers who received 180in NJL Road project; 17, Meng’a Road III. Prevention and Control over tuberculosis check project tuberculosis among construction workers Number of workers who have been None

- Offer annual health examination quarantined and treated for tuberculosis to all the workers - Quarantine and medication to those infected - Effort from communities (Malaria Prevention and Control Center) 3. Against illegal human trafficking and drug trafficking - Cooperation between departments - Consciousness improvement and 400 people (including 245 females) have data analysis, cooperation with participated in the trainings on AIDS&drug Women’s Federation of Pu’er local Women’s Federation, prevention in Ximeng County, Mojiang City focusing on the communities of County and Pu’er City. Lahu and Wa Experts were appointed to assist in Quarterly Progress Report - Consciousness improvement and consciousness improvement and training. (2017Q2) education on fighting against Plans about trainings on illegal trade of drug trafficking, especially to the human, drug and wild life were made in Memo of ADB Loan Review youngsters December 2016. Mission - Improvement in law

enforcement, including checking points and supervision equipment - Posters and pamphlets distribution in coach stations and

frontier connection, - Appointment of experts on the prevention of human trafficking and drug trafficking 4.Lowering the negative influence Complaints received and solved from construction - Avoid water source pollution No night construction - Minimize night construction Measures of water spray were adopted to near the residential areas minimize stive. Quarterly Progress Report - Minimize stive pollution from According to the materials given by (2017Q2) and checked by field Length of irrigation channels and construction contractors, irrigation channels, sewage pipes, interviews sewage pipes and the restoration - Clear up the sites after electrical power system, telegraph poles, percentage construction bridges and culverts were damaged in varying Provided by contractors - Offer short-term service during degrees and most of the damaged were the period of construction and restored. irrigation, sewage and road system restoration

C.Poverty alleviation measures of local governments

1.Facilitating Non-agri fields of Ning’er County has has provided with the Ethnic minority participants traffic transport, border trade and micro-credit aid, including industry loan, tourism etc. start-up loan and small guaranteed loan, in an Amount of paid credit Women’s Federation, PMO and - Facilitating technical trainings amount from CNY20,000 to 100,000. household survey on traffic transport, border trade Menglian County, small guaranteed loan from number of ethnic minority borrowers and tourism Rural Credit Cooperatives and loans from and the usage - Offering micro-credit aid to help Women’s Federation.

in non-agricultural fields Jingdong County has lent CNY98,360,000 to 1,676 females (including 591 benefited by supportive loans to start-up and 1,085, by small guaranteed loans) and helped 8,600 people to be employed. The survey indicates that 51.64% of the interviewed family has gotten loan or financial support and the average loan of this year is CNY55,052. In ethnic minority families, 54.35% has gotten loan or financial support and the average loan of this year is CNY65,476.2. 2.Tourism Promotion Celebration and Promotion of February - Ethnic minority culture Festival, June Festival, October Festival of protection and ecological culture Hani Nationality, Takuo Festival, Hulu tourism development Festival of Lahu Nationality, Wooden Drum - Promotion of tourist attractions Festival and New Rice Festival of Wa Celebration and restoration of ethnic in different ways Nationality, Mikaha Festival and Torch Provided by PMO minority festivals Festival of Yi Nationality, Closing-door Festival, Opening-door Festival and Water-sprinkling Festival, International Twins Day of the Tropic of Cancer of Mojiang and Hani Festival of Jiangcheng County

Number of Ads Not started

Number of home-stay tourist spots in The Number of home-stay tourist spots in Field interviews

ethnic minority villages household survey spots has increased from 1 in the Baseline Report to 51 and an additional income of CNY1,386,000 were gotten from it. The tourist income of Pu’er City has Economic Work Manual for Tourist income increased by 56.59% to CNY1,683,600 in Cadres of Pu’er City 2016.

Jobs created for ethnic minorities Not started

Appendix 2 Number of Employees Item Local Employees Total Minorities Relocatees Poor households Section Male Female 1st Section of NJL Road 35 25 10 10 2 3 2nd Section of NJL Road 70 15 2 15 / / 3rd Section of NJL Road / / / / / / 4th Section of NJL Road 0 0 0 0 0 0 5th Section of NJL Road / / / / / / 6th Section of NJL Road 10 8 2 6 0 0 7th Section of NJL Road 50 45 5 50 20 8 8th Section of NJL Road 60 20 10 15 0 5 9th Section of NJL Road 16 8 0 45 / 10th Section of NJL Road 35 0 0 0 0 0 Subtotal 260 129 37 96 67 16 1st Section of Meng’a Road 95 3 3 2 / / 2nd Section of Meng’a Road 148 17 2 40 / / Subtotal 243 20 5 42 0 0 Total 503 149 42 138 67 16

Note: The statistics are from project contractors.

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Appendix 3 Number of Nontechnical Employees Item Local Employees Total Female Minorities Relocatee Poor households Section Male Female 1st Section of NJL Road 15 5 10 5 4 2 2 2nd Section of NJL Road 70 10 15 3 15 / / 3rd Section of NJL Road / / / / / / / 4th Section of NJL Road 0 0 0 0 0 0 0 5th Section of NJL Road / / / / / / / 6th Section of NJL Road 10 2 8 2 6 0 0 7th Section of NJL Road 200 50 169 31 200 50 100 8th Section of NJL Road 50 10 20 10 15 0 0 9th Section of NJL Road / 3 0 0 11 3 0 10th Section of NJL Road 0 0 22 3 20 0 0 Subtotal 345 80 244 54 271 55 102 1st Section of Meng’a Road 35 10 16 2 6 / / 2nd Section of Meng’a Road 88 16 5 2 25 / / Subtotal 123 26 21 4 31 0 0 Total 468 106 265 58 302 55 102

Note: The statistics are from project contractors.

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Appendix 4 Salary Standard of Workers of NJL Road Item Salary Standard of Technical Employees Salary Standard of nontechnical Employees Section (yuan/month) (yuan/month) Poverty-st Poverty-st Grand Local Grand Local Minorities Female ricken Minorities Female ricken average population average population population population 1st Section of NJL Road 3,500 3,500 3,500 3,000 3,500 3,000 3,000 3,000 2,800 3,000 2nd Section of NJL Road 3,000 3,000 3,000 3,000 3,000 2,600 2,600 2,600 2,600 2,600 3rd Section of NJL Road / / / / / / / / / / 4th Section of NJL Road / / / / / / / / / / 5th Section of NJL Road / / / / / / / / / / 6th Section of NJL Road 3,000 3,000 3,000 2,000 3,000 3,000 3,000 2,000 3,000 2,000 7th Section of NJL Road 7,000 7,000 7,000 7,000 7,000 4,500 4,500 4,500 4,000 5,000 8th Section of NJL Road 3,000 3,000 3,000 2,000 3,000 2,000 2,000 2,000 2,000 2,000 9th Section of NJL Road 3,500 / / / / 4,000 / / / / 10th Section of NJL Road / / / / / 2,500 / / / / Average 3,833.333 3,900 3,900 3,600 3,900 3,085.714 3,020 2,820 2,880 2,920

Note: The statistics are from project contractors.

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Appendix 5 Salary Standard of Workers of Meng’a Road Item Salary Standard of Technical Employees Salary Standard of nontechnical Employees Section (yuan/month) (yuan/month) Poverty-st Poverty-st Grand Local Grand Local Minorities Female ricken Minorities Female ricken average population average population population population 1st Section of Meng’a 3,000 3,000 3,000 3,000 3,000 2,500 2,500 2,500 2,500 2,800 Road 2nd Section of Meng’a 3,000 3,000 3,000 3,000 3,000 2,700 2,700 2,700 2,700 2,700 Road Average 3,000 3,000 3,000 3,000 3,000 2,600 2,600 2,600 2,600 2,750

Note: The statistics are from project contractors.

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Appendix 6 Production Material Purchased Locally Item Agricultural Food Cement Sand Building stones Others (with notes) Products Section Number Sum Number Sum Number Sum M³ Sum M³ Sum M³ Sum of times (yuan) of times (yuan) of times (yuan) 1st Section of NJL Road 56 96,520 8 14,780 570 114,000 600 63,000 2,060 195,700 / / 2nd Section of NJL Road 48 720,000 5 6,000 140 64,400 840 33,600 1,120 56,000 / / 3rd Section of NJL Road 6 25,000 6 22,000 21.1 7,470 55 8,600 66 7,920 6 150,000 4th Section of NJL Road 0 0 0 0 0 0 0 0 0 0 / / 5th Section of NJL Road 8 28,000 8 30,000 50.5 15,000 80 12,000 66 7,920 8 160,000 6th Section of NJL Road 26 10,400 41 20,500 0 0 0 0 0 0 0 0 7th Section of NJL Road 120 150,000 40 100,000 2,600 2,600,000 4,000 750,000 6,000 850,000 / / 8th Section of NJL Road 20 15,000 15 10,000 0 0 0 0 0 0 0 0 9th Section of NJL Road 115 80,000 67 20,000 110.4 53,544 300 24,000 400 24,000 / / 10th Section of NJL Road 240 130,000 200 180,000 / / 2,100 180,000 9,000 630,000 / / Subtotal 639 1,254,920 390 403,280 3,492 2,854,414 7,975 1,071,200 18,712 1,771,540 14 310,000 1st Section of Meng’a 455 12,310 / / / / 2,487 373,050 4,594.4 427,279.2 / / Road 2nd Section of Meng’a 28 42,000 28 105,000 572 200,491 7,489 599,152 197,151 17,743,645 / / Road Subtotal 483 54,310 28 105,000 572 200,491 9,976 972,202 201,745.4 18,170,924 0 0 Total 1,122 1,309,230 418 508,280 4,064 3,054,905 17,951 2,043,402 220,457.4 19,942,464 14 310,000

Note: The statistics are from project contractors.

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Appendix 7 Local Production Material Lease Item Office lease Production place lease Excavator lease Tractor lease Others (with notes) Loader Acreage Sum Acreage Sum Number of Sum Number of Sum Sum Section (Number of (m²) (yuan) (m²) (yuan) times (yuan) times (yuan) (yuan) times) 1st Section of NJL Road 360 38,000 320 26,000 9 684,000 8 4,500 4 138,000 2nd Section of NJL Road 1,230 200,000 30,000 120,000 / / / / / / 3rd Section of NJL Road 2,100 61,000 1,000 5,000 / / 50 11,000 8 64,000 4th Section of NJL Road 1,000m² 30,000 0 0 0 0 0 0 / / 5th Section of NJL Road 2,500 32,000 500 4,500 / / 80 64,000 10 80,000 6th Section of NJL Road 1,000 ㎡ 4,000.00 0 0 16 26,000.00 0 0 0 0 7th Section of NJL Road 256 ㎡ 100,000 3,300 50,000 20 8,00000 / / / / 8th Section of NJL Road 2,000 4,000.00 0 0 15 12,000.00 0 0 0 0 9th Section of NJL Road 400 ㎡ 100,000 100 ㎡ 30,000 16 600,000 / / / / 10th Section of NJL Road / 45,000 7,000 37,000 / 85,000 / 30,000 / / Subtotal 8,190 614,000 42,120 272,500 76 2,207,000 138 109,500 22 282,000 1st Section of Meng’a Road 850 34,800 / / / / / / / / 2nd Section of Meng’a Road 2,800 80,000 / / 120 4,200,000 8 24,000 / / Subtotal 3,650 114,800 0 0 120 4,200,000 8 24,000 0 0 Total 11,840 728,800 42,120 272,500 196 6,407,000 146 133,500 22 282,000

Note: The statistics are from project contractors.

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