Resettlement Plan

November 2013

PRC: Integrated Water Resources Management (Sector) Project

Updated Resettlement Plan for Jinlong Reservoir Core Subproject (English)

Prepared by the Guiyang municipal government for the Asian Development Bank. This is an updated version of the draft originally posted in September 2006 available on http://www.adb.org/projects/38594-013/documents.

CURRENCY EQUIVALENTS (as of 27 November 2013)

Currency unit – yuan (Symbol) CNY1.00 = $0.1641 $1.00 = CNY6.0928

NOTES (i) The fiscal year (FY) of the Government of the People’s Republic of and its agencies ends on 31 December. “FY” before a calendar year denotes the year in which the fiscal year ends, e.g., FY2011 ends on 31 December 2011.

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

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

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

Asian Development Bank

Xiuwen County Jinlong Reservoir Subproject

Resettlement Plan (Updated Version)

Guizhou Water Resources and Hydropower Survey and Design Institute Water Resources Bureau August 2013

Contents

1 Overview of the Subproject ...... Error! Bookmark not defined.

1.1 Background ...... Error! Bookmark not defined. 1.2 Brief introduction ...... Error! Bookmark not defined. 1.2.1 Components and range of land acquisition ...... Error! Bookmark not defined. 1.2.2 Impacts of the Subproject ...... 2 1.2.3 Socioeconomic benefits of the Subproject ...... Error! Bookmark not defined. 1.2.4 Investment estimate and implementation schedule ...... Error! Bookmark not defined.

2 Impacts of the Subproject and Socioeconomic Profile ... Error! Bookmark not defined.

2.1 Measures for avoiding or minimizing land acquisition and property demolition.. Error! Bookmark not defined. 2.1.1 Principles for project design and site selection .. Error! Bookmark not defined. 2.1.2 Comparison of options ...... Error! Bookmark not defined. 2.2 Survey methods and process ...... Error! Bookmark not defined. 2.3 Socioeconomic profile of the affected county and town ...... Error! Bookmark not defined. 2.4 Socioeconomic profile of the affected villages ...... 7 2.5 Affected physical indicators ...... Error! Bookmark not defined. 2.5.1 Permanent acquisition of land ...... Error! Bookmark not defined. 2.5.2 Temporary land occupation ...... Error! Bookmark not defined. 2.5.3 Affected enterprises ...... Error! Bookmark not defined. 2.5.4 Affected population ...... Error! Bookmark not defined. 2.5.5 Vulnerable groups and ethnic minorities ...... Error! Bookmark not defined. 2.5.6 Impacts on women ...... Error! Bookmark not defined. 2.5.7 Impacts on downstream water users ...... Error! Bookmark not defined. 2.5.8 Impacts on division of water source conserves .. Error! Bookmark not defined. 2.5.9 Affected infrastructure, ground attachments and minerals Error! Bookmark not defined.

3 Legal Framework and Policies ...... Error! Bookmark not defined.

3.1 Laws, regulations and policies on resettlement ...... Error! Bookmark not defined. 3.2 ADB policies ...... Error! Bookmark not defined. 3.3 Laws and policies of the PRC ...... Error! Bookmark not defined. 3.4 Principles and eligibility for compensation of the Subproject .... Error! Bookmark not defined. 3.4.1 Principles for compensation ...... Error! Bookmark not defined. 3.4.2 Determination of eligibility for compensation ...... 24 3.5 Determination of compensation rates ...... Error! Bookmark not defined. 3.5.1 Compensation for land acquisition ...... Error! Bookmark not defined. 3.5.2 Compensation for temporary land occupation .... Error! Bookmark not defined. 3.5.3 Permanent occupation of state-owned land ...... Error! Bookmark not defined.

3.5.4 Treatment of infrastructure, ground attachments and minerals Error! Bookmark not defined. 3.5.5 Rates for other costs ...... Error! Bookmark not defined. 3.6 Vulnerable groups ...... Error! Bookmark not defined. 3.7 Entitlement matrix ...... Error! Bookmark not defined.

4 Resettlement Measures ...... Error! Bookmark not defined.

4.1 Objectives of resettlement ...... Error! Bookmark not defined. 4.2 Restoration measures for permanent land acquisitionError! Bookmark not defined. 4.3 Restoration of temporarily occupied land ...... Error! Bookmark not defined. 4.4 Resettlement training ...... Error! Bookmark not defined. 4.5 Women and vulnerable groups ...... 31 4.6 Restoration program for affected enterprises ...... Error! Bookmark not defined. 4.7 Restoration of infrastructure and ground attachments Error! Bookmark not defined. 4.8 Forecast of APs’ production level and living standard, and evaluation ...... Error! Bookmark not defined.

5 Organizational Structure ...... Error! Bookmark not defined.

5.1 Organizational setup ...... Error! Bookmark not defined. 5.2 Staffing and training program ...... 34 5.2.1 Staffing ...... Error! Bookmark not defined. 5.2.2 Training program ...... 35 5.3 Measures for improving resettlement agencies ...... Error! Bookmark not defined.

6 Public Participation and Grievance Redress ...... Error! Bookmark not defined.

6.1 Public participation ...... Error! Bookmark not defined. 6.1.1 Participation at the preparation stage ...... Error! Bookmark not defined. 6.1.2 Participation at the implementation stage ...... 37 6.2 Grievance redress ...... Error! Bookmark not defined.

7 Resettlement Budget ...... Error! Bookmark not defined.

7.1 Resettlement budget ...... Error! Bookmark not defined. 7.2 Investment breakdown ...... Error! Bookmark not defined. 7.3 Investment plan and funding sources ...... Error! Bookmark not defined. 7.4 Management and disbursement of resettlement funds ...... Error! Bookmark not defined.

8 Resettlement Implementation Plan ...... Error! Bookmark not defined.

8.1 Principles for resettlement implementation ...... Error! Bookmark not defined. 8.2 Schedule of resettlement implementation ...... Error! Bookmark not defined.

9 Monitoring and Evaluation ...... Error! Bookmark not defined.

9.1 Internal monitoring ...... Error! Bookmark not defined. 9.2 External monitoring ...... Error! Bookmark not defined.

Appendix 1 Schematic Map of the Subproject ...... 52

Appendix 2 Order to Cease Construction ...... 53

Appendix 3 Letter of Commitment of the Xiuwen County Government on Minerals and Special Facilities Affected by the Subproject ...... 57

Appendix 4 Letter of Commitment of the Xiuwen County Government on Land in Dispute in the Subproject ...... 61

Appendix 5 Terms of Reference for External Monitoring ...... 62

Appendix 6 Minutes of Public Participation Meetings ...... 67

List of Tables

Table 1-1 Summary of components ...... 2 Table 2-1 Comparison of land acquisition and resettlement options ...... 5 Table 2-2 Socioeconomic profile of affected villages ...... 8 Table 2-3 Summary of land permanently acquired for the Subproject ...... 9 Table 2-4 Summary of land occupied temporarily for the Subproject ...... Error! Bookmark not defined. Table 2-5 Statistics of population affected by land acquisition ...... 12 Table 2-6 Affected vulnerable groups ...... 13 Table 2-7 Affected infrastructure and ground attachments...... 14 Table 3-1 Key provisions of SC [2004] No.28, MLR [2004] No.238 and GPG [2005] No.17, and application ...... 19 Table 3-2 Principles for resettlement ...... 24 Table 3-3 Compensation rates for land acquisition of the Subproject ...... 25 Table 3-4 Summary of minimum compensation rates for land acquisition of key construction projects in Province ...... Error! Bookmark not defined. Table 3-5 Compensation rates for acquisition of collective land Error! Bookmark not defined. Table 3-6 Compensation rates for temporary land occupation ...... 25 Table 3-7 Compensation rates for infrastructure and ground attachments ...... 26 Table 3-8 Resettlement costs and taxes ...... 26 Table 3-9 Entitlement matrix ...... 27 Table 4-1 Impact analysis of collective land acquisition ...... 29 Table 4-2 Resettlement training program of the Subproject ...... 30 Table 5-1 Staffing of resettlement agencies ...... 34 Table 5-2 Training program of resettlement staff ...... 35 Table 6-1 Public participation at the preparation stage ...... 37 Table 6-2 Public participation plan of the Subproject ...... 37 Table 7-1 Summary of investment estimates of the Subproject ...... 41 Table 7-2 Resettlement investment plan of the Subproject...... 47 Table 8-1 Schedule of resettlement implementation of the Subproject ...... 48 Table 9-1 Progress report on resettlement for land acquisition and property demolition ...... 50 Table 9-2 Progress of fund utilization ...... 50 Table 9-3 Schedule for resettlement monitoring and evaluation ...... 51

List of Figures

Figure 5-1 Resettlement organizational chart ...... 34

ABBREVIATIONS

AAOV - Average Annual Output Value ADB - Asian Development Bank AH - Affected Household AP - Affected Person CHINALCO - Aluminum Corporation of China DMS - Detailed Measurement Survey FGD - Focus Group Discussion Guizhou Water Resources and Hydropower GSDRI - Survey, Design and Research Institute M&E - Monitoring and Evaluation PRC - People’s Republic of China RP - Resettlement Plan RIB - Resettlement Information Booklet XCWRB - Xiuwen County Water Resources Bureau

Units

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

Notes to this Update At the technical assistance stage of the Subproject, the Xiuwen County Water Resources Bureau (XCWRB) prepared the Resettlement Plan of the Xiuwen County Jinlong Reservoir Subproject (the “former RP”) according to the Feasibility Study Report of the Subproject and ADB’s social safeguard policies. On June 25, 2012, the Guiyang Municipal Development and Reform Commission, and the Guiyang Municipal Water Resources Bureau issued the Reply on the Preliminary Design of the Xiuwen County Jinlong Reservoir Subproject (GMDRC [2012] No.455). From June 2013 to July 2013, with the support of the affected county and township governments, affected villages and persons, and the design agency, XCWRB completed the review of resettlement impacts, and the survey on the compensation policies and rates, and resettlement programs of the Subproject. The former RP has been updated according to the Project Agreement with ADB dated June 17, 2010. This update involves resettlement impacts, compensation and resettlement policies, socioeconomic conditions, resettlement budget and resettlement implementation plan, covering all chapters of the former RP. See Table A. Table A Update of the Former RP No. Updated item Former RP Updated RP Remarks The Subproject consists of the Consistent with the former RP No major change reservoir and water delivery pipelines. The area affected by 1 Project design land acquisition or occupation covers the reservoir (incl. the dam), construction area and water delivery pipelines. 392.8 mu of land will be 321.75 mu of land will be permanently No major change permanently acquired, acquired, involving 5 villages in Range and involving 6 villages in Longchang Town, Xiuwen County, all 2 impacts of land Longchang Town, Xiuwen being non-cultivated land acquisition County, all being non-cultivated land Resettlement 61 persons and one enterprise 61 persons and 3 enterprises will be Two more enterprises 3 impacts will be affected temporarily. affected temporarily. are affected. Compensation rates vary with 36,000 yuan/mu for cultivated land, According to the new land type, and range from 18,600 yuan/mu for timber forests, policy of Guiyang Compensation 2,142 yuan/mu (unused land) 15,300 yuan/mu for shrub forests, Municipality in 2009, the 4 rates for land to 4,284 yuan/mu (shrub 10,500 yuan/mu for construction land, compensation rates for acquisition forests) 6,000 yuan/mu for unused land and land acquisition have 12,000 yuan/mu for other farmland improved greatly. The total resettlement costs of Based on prices in 2013 the total The resettlement costs Subproject are 5,263,000 yuan resettlement costs of Subproject are have increased by 8.7 Financial (8.7% of Subproject cost). 13,958,600 yuan (12.9% of million yuan, mainly 5 budget Subproject cost). because the compensation rates have improved greatly. Resettlement To begin in November 2006 To begin in November 2013 and end 6 Implementation and end in December 2007 in December 2014 schedule

Executive Summary The Jinlong Reservoir Subproject (hereinafter referred to as the “Subproject”) is a core subproject of the ADB-funded Guiyang Guiyang Integrated Water Resources Management Project. The Jinlong Reservoir is a small Class-I reservoir integrating the functions of farmland irrigation, drinking water for human and livestock, and water supply to the county town, with a storage capacity of 4.18 million m3. The Subproject consists of the reservoir and water delivery pipelines. The area affected by land acquisition or occupation covers the reservoir (incl. the dam), construction area and water delivery pipelines. The XCWRB (PMO) is the implementing agency of the Subproject.

The Subproject will be constructed for 24 months (Jan. 2014-Dec.2015). The land acquisition, compensation and resettlement implementation will be started in November 2013 and completed by December 2014. The total estimated resettlement cost of the Subproject is 13,958,639.57 yuan (current prices in 2013, covering basic cost for land acquisition (occupation), related taxes and charges, and contingencies, accounting for 12.9% of the total budget of the Subproject.

The main impacts of the Subproject are permanent land acquisition and temporary land occupation, involving 22 village groups of 5 villages in Longchang Town, Xiuwen County. 321.75 mu of land will be acquired permanently, all being non-cultivated land, including 208.43 mu of shrub forests, 63.87 mu of unused land and 30.52 mu of construction land, no person will be permanently affected; 341.16 mu of land will be occupied temporarily, including 155.65 mu of irrigated land, 86.09 mu of non-irrigated land and 68.97 mu of shrub forests, affecting 3 enterprises, namely the first aluminum mine of the Guizhou branch of Aluminum Corporation of China (CHINALCO Guizhou branch), Hongfa Refractory Material Factory and Xiuwen County Wuhong Mineral Shop, where 71.05 mu of state-owned land of these 3 enterprises will be occupied permanently. The acquisition of collective land involves no directly affected population1. However, structures with a total area of 2,440.17 m2 (masonry timber structure) of the 3 enterprises and a debris retaining dam will be demolished, but this compensation is not included in the land acquisition and resettlement cost of this RP. All of them are state-owned and all have agreed the compensation will be negotiated and paid. 61 persons will be affected temporarily by temporary land occupation.

To avoid or minimize negative impacts of land acquisition, adequate consultation was conducted on the potential site of the Subproject, the village groups affected by reservoir inundation and resettlement at the stage of feasibility study and preliminary design. An optimum option was selected through comparison.

This Resettlement Plan (RP) is based on the Land Administration Law of the PRC

1 The non-cultivated land acquired for the Subproject is owned by village collectives and not contracted to households.

I (2004), Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28), the applicable policies of Guizhou Province and Guiyang Municipality, and ADB’s social safeguard policies. According to the above policies, and in consultation with local governments and affected persons, the resettlement principles of the Subproject are: (1) Involuntary resettlement should be avoided where feasible; (2) The affected persons are granted compensation and rights that can at least maintain or even improve their livelihoods in the absence of the project; (3) The affected persons are given compensation and assistance in resettlement whether legal title is available or not before the cut-off date; (4) The economic compensation shall ensure that everyone will at least maintain their standard of living after resettlement; (5) If the land available to everyone is insufficient to maintain his/her livelihood, replacement in cash or in kind and other income-generating activities are provided for the lost land; (6) The affected persons fully understand their entitlements, the method and standard of compensation, the livelihood and income restoration plan, and the project schedule, and participate in the implementation of the Resettlement Plan; (7) No land should be acquired before the affected persons are satisfied with the compensation and resettlement (plan); (8) The executing agency and an independent agency / third party should monitor the compensation, relocation and resettlement operations; (9) The vulnerable groups (including women) are provided special assistance or treatment so that they lead a better life, and all affected persons should have an opportunity to benefit from the project; and (10) The resettlement costs are sufficient to cover all affected aspects.

The compensation rates for the acquisition for the Subproject have been fixed according to the Notice of the Guiyang Municipal Government on the Promulgation and Implementation of Uniform Annual Output Values and Location-based Compensation Rates for Land Acquisition (GMG [2009] No.100). All land acquired for the Subproject is located in Longchang Town, Xiuwen County, and the uniform average annual output value (AAOV) rate is 1,500 yuan/mu. The compensation rate for temporarily occupied land is calculated using the formula “period of use × AAOV + young crop compensation + compensation for the maturation period” according to the Notice of the Guiyang Municipal Government on Issuing the Administrative Measures for Temporary Land Use for Key Highway and Railway Projects of Guiyang Municipality (Interim) (GMG [2009] No.86), being 9,000 yuan/mu.

Although all acquired land is non-cultivated land, income restoration measures for the villagers include cash compensation, skills training, and priority in employment under the Subproject. Through consultation with the affected villages and affected households (AHs), compensation fees for land acquisition will be managed by the village collectives and used specifically for collective infrastructure construction. During construction, the Xiuwen PMO will provide 196 unskilled jobs (in which not less than 20% will be provided to female laborers) to the APs and appropriate a special fund of 3,000 yuan to train the temporary affected labors in the 5 villages (in which female laborers will account for 32%). The Xiuwen PMO will establish a support fund for vulnerable groups of 5,000 yuan, and provide assistance to vulnerable groups

II affected by the Subproject together with the civil affairs bureau.

All APs have been informed of key points of this RP by various means, including meeting, interview, focus group discussion (FGD), public participation and community consultation. The above activities are designed to involve the APs in the Subproject, and their opinions have been fully embodied in this RP. The Resettlement Information Booklet (RIB) and this RP were distributed to the APs or village groups by the end of June 2006; the first draft of this RP was published on ADB’s website by the end of August 2006 and updated in August 2013 and will be disclosed to the APs in Nov. 2013. A grievance redress system has been established. All agencies will accept grievances and appeals from the APs for free, and costs so reasonably incurred will be disbursed from the contingencies.

The XCWRB (PMO) is the implementing agency of the Subproject, and the resettlement office thereunder is responsible specifically for the implementation of this RP. To ensure the successful implementation of this RP, an independent monitoring and evaluation (M&E) agency will perform external M&E semiannually in addition to internal monitoring, and M&E costs are included in the budget of the Subproject.

III 1 Overview of the Subproject

1.1 Background

The Subproject is a core subproject of the ADB-funded Guiyang Guiyang Integrated Water Resources Management Project. The Subproject is located on the Xiaoqiao River, a branch of the Xiuwen River, which is a primary branch of the Wujiang River in Xinzhai Village, Longchang Town, Xiuwen County, and 6km away from the county town. The Subproject is an integrated water resources project intended for irrigation and water supply mainly, and also having the rural human and livestock drinking function. The subproject area is a main producing area of rice, wheat and rape of the county, where cultivated land is located mostly on terraces on both sides of the river. In this area, frequent drought (once every two years on average) would always lead to the serious reduction of crop output or even no harvest. Drinking water supply for human and livestock is also difficult. Therefore, it is imperative to solve the problems of irrigation and drinking water in the subproject area. In August 2003, XCWRB appointed the Guizhou Water Resources and Hydropower Survey, Design and Research Institute (hereinafter referred to as the “GSDRI”) to undertake the surveying and design of the Jinlong Reservoir. After the completion of engineering surveying and option comparison, GSDRI completed the Proposal of the Subproject in January 2005 and submitted to the Water Resources Department of Guizhou Province, which gave a reply (GPWRD [2005] No.47). In June 2007, the National Development and Reform Commission approved the construction of the Subproject with the Reply on the Proposal for the Guiyang Integrated Water Resources Development, and Water and Soil Conservation Project (DRCRC [2007] No.1408) (including the Subproject, see Appendix 5). On May 11, 2009, the Water Resources Department of Guizhou Province reviewed the Feasibility Study Report of the Subproject and gave comments (see Appendix 4), and GSDRI revised the former Feasibility Study Report and submitted a draft for approval. On November 16, 2009, the county government published an announcement on the prohibition of any additional construction project or population influx in the subproject area. In June 2010, XCWRB appointed GSDRI to prepare a report on land acquisition and resettlement for the Subproject. In July 2010, GSDRI and the competent authorities of Xiuwen County organized a joint task force to conduct a detailed measurement survey (DMS). During August-October 2010, the DMS results were confirmed level by level. In August 2010, the Outline of Land Acquisition and Resettlement Planning of the Subproject was completed. In October 2011, the Outline of Planning was reviewed and approved, and used

1 as a document guiding the preparation of the Land Acquisition and Resettlement Plan of the Subproject. On November 16, 2011, the Guiyang Municipal Government gave a reply on the Outline of Planning (Document GMG [2011] No.112). In August 2012, Guiyang PMO prepared the updated Resettlement Plan according to the approved FSR. On 6 May 2013, a public hearings were held for Jinlong Reservoir, related departments, such as Forestry Bureau, Agriculture Bureau, Water Conservancy Bureau, etc. and more than 50 citizens or villagers participated in the hearings.

1.2 Brief introduction

1.2.1 Components and range of land acquisition The Jinlong Reservoir is a small Class-I reservoir integrating the functions of farmland irrigation, drinking water for human and livestock, and water supply to the county town, with a storage capacity of 4.18 million m3. The Subproject consists of the dam, reservoir and water delivery pipelines. The area affected by land acquisition or occupation covers the reservoir (incl. the dam), water facility junction area and water delivery pipelines. See Table 1-1. Table 1-1 Summary of components Component Brief Description Remarks The Jinlong Reservoir has a normal pool level of Involving Xinzhai and 1,314m, a top level of 1,316.80m, a maximum dam Xiaoshan Villages, with Inundation height of 52.3m and a total storage capacity of 4.18 321.75 mu of land area million m3. occupied permanently, all being non-cultivated land This area consists of water-holding structures, a Involving Xinzhai Village, Water spillway, a water intake and release tunnel, and head with 61.43 mu of collective facility structures. land occupied permanently junction and 123.58 mu of land area occupied temporarily The water delivery component consists of two trunk Involving 21 groups of 4 pipelines (0.5m-0.8m in diameter, 6.845km long in villages, 1.3 mu of land total), 8 branch pipelines (0.1m-0.5m in diameter, occupied permanently and Water 15.68km long in total) and farmland facilities, 217.58 mu of land delivery including a 103m long inverted siphon. It also includes occupied temporarily a dam construction area, a sand and stone yard, a left main canal construction area, a right main canal construction area, and a 1.3km long temporary road.

1.2.2 Impacts of the Subproject The main impacts of the Subproject are permanent land acquisition and temporary land occupation, involving 22 village groups of 5 villages and 3 industrial enterprises in Longchang Town. Land acquisition involves no directly affected population; 61 persons will be affected by temporary land occupation. The area inundated by the reservoir is 0.157 km2(235.5mu), including a land area of 0.149 km2 (223.5 mu) and a water area of 0.008 km2 (12.0 mu); the junction

2 component will occupy 185.01 mu of land and the water delivery component will occupy 218.88 mu of land, totaling 639.39mu. The Subproject will affect 3 enterprises, namely the first aluminum mine of the CHINALCO Guizhou branch, Hongfa Refractory Material Factory and Xiuwen County Wuhong Mineral Shop, where 71.05 mu of state-owned land of these 3 enterprises will be occupied permanently, accounting for 0.14% of the enterprises’ floor area only. The occupied state-owned land is marginal land of the 3 enterprises, and will not affect their production and income and compensated will be negotiated separately. Premises with a total area of 2,440.17 m2 of Hongfa Refractory Material Factory and Xiuwen County Wuhong Mineral Shop, and a debris retaining dam of the CHINALCO Guizhou branch will be demolished. In addition, the range of irrigation, and human and livestock drinking water supply in the project design has covered the existing service area of the river. After completion, the reservoir will effectively adjust the upstream incoming water and make full use of water resources, thus will safeguard water supply in the downstream areas. There will be no negative impact on existing water users. 1.2.3 Socioeconomic benefits of the Subproject The Jinlong Reservoir has a total storage capacity of 4.18 million m³ and a usable capacity of 3.44 million m3. The Subproject will bring about the following socioeconomic benefits: (1) Solve the problem of insufficient urban water supply, promoting sustainable local social and economic development; (2) Safeguard the water supply for agricultural production in the irrigation area, strengthen the irrigating capacity, improve the irrigation conditions and promote the regional agricultural development; (3) Supply water to the town and rural areas, facilitate local social, economic and environmental construction, and improve the rural ecological environment and public health; and (4) Help to improve the water environment of the river course, facilitate the local environmental upgrading, beautify the integrative environment and improve the living standards of the local people. It is estimated that after completion, the Jinlong Reservoir will irrigate 6,468 mu of farmland, solve the problem of drinking-water supply for 4 villages, including Xinzhai Village, covering 5,490 persons and 4,338 heads of livestock (incl. 542 big and 3,796 small ones), supply 3.35 million m3/year of water to the Xiuwen county town by ensuring the water demand of 55,300 persons in the town, and supply 407,000 m3/year of water for environmental purposes for the irrigation area around the reservoir. 1.2.4 Resettlement cost estimate and implementation schedule The total cost of resettlement of the Subproject is 13,958,639.57 yuan, in which the cost for the inundation area is 6,884,651.39 yuan, of which permanent land acquisition 1,933,450.02 yuan and temporary land occupation 1,807,565.20 yuan for the junction area; that in permanent land acquisition 71,129.76 yuan and that in temporary land occupation 3,261,843.20 yuan for the water delivery area. The Subproject will break ground in January 2014 and be completed in May 2015,

3 with a construction period of about 1.5 years. Under the guidance of the ADB Technical Assistance Office and GSDRI, XCWRB prepared the RP of the Subproject in May 2006, and updated it and submitted it to ADB for review in August 2013. After approval by ADB, land acquisition, compensation and resettlement will begin in November 2013.

4 2 Impacts of the Subproject and Socioeconomic Profile

2.1 Measures for avoiding or minimizing land acquisition and property demolition

2.1.1 Principles for project design and site selection Resettlement impacts have been considered at the design stage to minimize such impacts. The main principles are as follows:  Avoiding any settlement that may restrict reservoir size  Avoiding or minimizing occupation of existing and planned residential areas  Avoiding or minimizing occupation of high-quality farmland and pasture land  Gaining access to the proposed construction sites through existing state and local roads  Avoiding or minimizing occupation of environmentally sensitive areas 2.1.2 Comparison of options The Jinlong Reservoir is a small Class-I reservoir. In order to minimize land acquisition and resettlement, GSDRI has conducted strict scheme comparison and optimization, in which land acquisition (occupation) is one of the most important indicators. In addition, without changing the function of irrigation and water supply of the Subproject, the inundation level has been demonstrated strictly through scheme optimization for the purpose of minimizing land occupation. After comparison, Option 1 occupies less cultivated land, shrub forests and other types of land than Option 2, and thus Option 1 is recommended. See Table 2-1. Table 2-1 Comparison of land acquisition and resettlement options Item Unit Option 1 Option 2 Normal pool level (elevation) m 1314 1316 (1) Cultivated land mu 5.76 6.09 Where: irrigated land mu 4.81 4.72 Key Non-irrigated land mu 0.95 1.37 inundation (2) Shrub forests mu 208.43 218.03 indicators (3) Other non-cultivated land mu 99.68 99.86 Discarded mining premises m2 2,440.17 2,440.17

Land inundation cannot be avoided in reservoir construction. However, the amount of land occupation for the construction sites and water delivery component can be reduced through optimization of construction methods. Such will also help to minimize the negative impacts caused by land acquisition. After option comparison, pipeline construction instead of canal excavation will be employed for the water delivery component, which is expected to reduce occupied land area by 5.11 mu. The access road and construction sites have also been optimized to use wasteland for the purpose of avoiding cultivated land occupation. In addition, according to the

5 construction schedule, the AHs whose land will be acquired (occupied) will be informed in advance so that they can minimize their losses.

2.2 Survey methods and process

In order to learn the impacts of the Subproject, according to ADB’s requirements, in July 2010, GSDRI, with the help of XCWRB, the affected town government, village committees, village groups and villagers, conducted a DMS using a 1:10,000 block map. In addition, the survey team also conducted a socioeconomic survey in the subproject area, involving 13 sample households, covering household population, household economic situation and willingness for resettlement etc. The survey team also listened to and widely discussed with the village committees and villagers on land acquisition and resettlement.

2.3 Socioeconomic profile of the affected county and town

The Subproject will affect Longchang Town of Xiuwen County. Xiuwen County is situated in the mid of Guizhou Province under the jurisdiction of Guiyang City, being at E106°22′-106°53′ and N26°45′-27°12′. It adjoins with Xifeng County to the north, connects with to the east and northeast, neighbors with Baiyun district to the south and faces to City across the river to the southwest. To the west and northwest are Qianxi County and along Wujiang River. It is 48.5km in length from the north to the south, and 51.8km in width from the east to the west. Highways are networked within Xiuwen County indicating convenient traffic conditions. Xiuwen County is located in central Guizhou Province and affiliated to Guiyang Municipality, 38km away from the urban center of Guiyang Municipality, with a land area of 1,075.7 km2. The county governs 10 townships, 217 administrative villages and 12 communities, and has 22 ethnic groups, including Han, Miao, Buyi, Li and Dong. The county has a cultivated area of 262,000 mu, including 88,100 mu with guaranteed irrigation, 0.33 mu per capita. According to the Guiyang Statistical Yearbook 2011, in 2010, the county’s population was 305,900, including an agricultural population of 263,800, per capita cultivated area 0.85 mu, gross grain output 104,336 tons, local fiscal revenue 544 million yuan, gross agricultural output value 952.22 million yuan and gross industrial output value 5.27626 billion yuan. See Table 2-1.

Table 2-2 socioeconomic profile of the affected county Item Unit Xiunwen County Number of townships / 10 Number of villages / 217 Population 0,000 30.5917

6 Item Unit Xiunwen County Agricultural population 0,000 26.3842 Nonagricultural population 0,000 4.043 Land area Km2 1075.7 Population density /Km2 284 Cultivated area 0,000 mu 26.2005 Per capita cultivated area mu 0.856 Gross industrial output value billion yuan 11.162 Gross agricultural output value billion yuan 1.19214 Local fiscal revenue billion yuan 0.54229 Gross grain output 0,000 tons 10.4336 Per capita grain output kg 341.05 Farmers’ per capita net income yuan 7460 Source: Guiyang Statistical Yearbook 2011, some social economic data were updated according to National Economic and Social Development Statistics Bulletin of Xiuwen County in 2012, issued in May 2013

Longchang Town governs 36 villages and 7 communities. According to Guiyang Statistical Yearbook 2011, the town’s population is 73,349, including an agricultural population of 50,744, and 39,855 mu of cultivated land. In 2011, the town’s GDP was 2.27323 billion yuan, in which gross agricultural output value was 189.83 million yuan, gross industrial output value 1.79178 billion yuan and gross output value of tertiary industries 291.62 million yuan, and farmers’ per capita income 10350 yuan. See Table 2-13. Table 2-3 Socioeconomic profile of the affected town Item Unit Longchang Town Number of households / 21016 Population / 73349 Where, men / 41076 Agricultural population / 50744 Cultivated area mu 39855 GDP billion yuan 3.112 Farmers’ per capita net income yuan 110573

2.4 Socioeconomic profile of the affected villages

Permanent land acquisition involves Xinzhai and Xiaoshan Villages, and temporary land occupation involves Xinzhai, Xinshui, Chengnan and Jianxin Villages. The affected villages have almost no industrial enterprise and deal with agricultural

2 Source: Government Working Report Of Longchang Town in 2013. 3 Source: Government Working Report Of Longchang Town in 2013.

7 production mainly, where the main crops are paddy rice, corn and rape. See Table 2-4. Table 2-4 Socioeconomic profile of affected villages Per capita Farmers’ per Number of Cultivated Village Population cultivated capita income households area (mu) area (mu) (yuan) Xinzhai 745 2768 2216 0.8 5600 Xiaoshan 87 337 449.5 1.33 2600 Xinshui 437 2064 4471.8 2.17 4521 Chengnan 483 2282 755.3 0.33 3900 Jianxin 344 1952 3500.4 1.79 3621

2.5 Affected physical indicators

2.5.1 Permanent acquisition of land 321.75 mu of land will be acquired permanently, affecting Xinzhai and Xiaoshan Villages, Longchang Town, all being non-cultivated land, which is not contracted to households but managed by the village collectives. 157.86 mu of collective land of Group 5 of Xinzhai Village (60.95% of the inundation area) and 30.11 mu of land in Xiaoshan Village (11.62% of the inundation area) will be acquired in the inundation area. 61.43 mu of collective land of Group 5 of Xinzhai Village will be acquired in the junction area, accounting for 100% of the junction area. 1.30 mu of collective land of Group 5 of Xinzhai Village will be acquired in the water delivery area, accounting for 100% of the water delivery area. In the whole Subproject, 220.59 mu of land of Group 5 of Xinzhai Village will be acquired, accounting for 68.56% of the total acquired land area, 30.11 mu of land of Group 6 of Xiaoshan Village will be acquired, accounting for 9.36% of the total acquired land area, and the other acquired land is land of industrial enterprises. The acquired land includes 5.76 mu of cultivated land that belongs to enterprises, accounting for 1.79%, 216.31 mu of woodland, accounting for 67.23%, 30.52 mu of construction land, accounting for 9.49%, 63.87 mu of unused land, accounting for 19.85%, and 11.05 mu of grassland, accounting for 3.43%. See

8 Table 2-5.

9 Table 2-5 Summary of land permanently acquired for the Subproject

Inundation area Junction area Water delivery Total Hongfa CHINALCO Wuhong Group 5 of Group 5 of Item Unit Xiaoshan Xinzhai Refractory Guizhou Mineral Total Xinzhai Total Xinzhai Total Group 6 Group 5 Material branch Shop Village Village Factory Total mu 30.11 157.86 50.34 6.36 14.35 259.02 61.43 61.43 1.3 1.3 321.75 Woodland mu 18.91 113.4 36.81 169.12 46.48 46.48 0.71 0.71 216.31

Shrub forests mu 18.91 113.4 36.81 169.12 39.31 39.31 208.43

Timber mu 7.17 7.17 0.71 0.71 7.88 forests Construction mu 1.54 1.69 5.13 6.36 14.35 29.07 1.45 1.45 30.52 land Rural roads mu 1.54 1.69 2.79 6.02 1.45 1.45 7.47

Industrial and mu 2.34 6.36 14.35 23.05 23.05 mining land

Unused land mu 8.05 42.77 1.01 51.83 12.04 12.04 63.87

River water mu 3.19 9.19 0.31 12.69 1.51 1.51 14.2 surface River flat mu 4.86 33.58 0.7 39.14 9.03 9.03 48.17 Bare rock mu 1.5 1.5 1.5

10 Other mu 1.61 7.39 9 1.46 1.46 0.59 0.59 11.05 farmland Grassland mu 1.61 7.39 9 1.46 1.46 0.59 0.59 11.05

11 2.5.2 Temporary land occupation Temporary land occupation includes the junction construction area and the water delivery area, involving 4 villages, where 341.16 mu of land will be occupied temporarily, including 241.74 mu of cultivated land, accounting for 70.86%, 84.23 mu of woodland, accounting for 24.69%, 7.60 mu of garden land, accounting for 2.23%, 6.19 mu of grassland, accounting for 1.81%, and construction land 1.4 mu, accounting for 0.41%. See Error! Reference source not found.6 and Appendix 2. Table 2-6 Summary of land occupied temporarily for the Subproject Item Unit Junction area Water delivery Total 21 groups of Xinzhai Group 5Total Total 3 villages Total mu 123.58 123.58 217.58 217.58 341.16 Cultivated land mu 38.92 38.92 202.82 202.82 241.74 Irrigated land mu 18.72 18.72 136.93 136.93 155.65 Non-irrigated land mu 20.2 20.2 65.89 65.89 86.09 Garden land mu 6.68 6.68 0.92 0.92 7.60 Woodland mu 72.01 72.01 12.22 12.22 84.23 Shrub forests mu 59.09 59.09 9.88 9.88 68.97 Timber forests mu 12.92 12.92 2.34 2.34 15.26 Construction land mu 1.03 1.03 0.37 0.37 1.40 Highway land mu 0.13 0.13 0.13 Rural roads mu 1.03 1.03 0.13 0.13 1.16 Rural housing land mu 0.11 0.11 0.11 Other farmland mu 4.94 4.94 1.25 1.25 6.19 Grassland mu 4.94 4.94 1.25 1.25 6.19

2.5.3 Affected enterprises The Project affects 3 enterprises, being the first bauxite mine of the CHINALCO Guizhou branch, Hongfa Refractory Material Factory and Xiuwen County Wuhong Mineral Shop (discarded mining premises), where 71.05 mu of state-owned land of these 3 enterprises will be occupied permanently; the acquisition of collective land involves no directly affected population, while premises with a total area of 2,440.17 m2 (masonry timber structure) of the 3 enterprises and a debris retaining dam will be demolished, accounting for 0.14% of the enterprises’ floor area only. The CHINALCO Guizhou branch is an ultra-large aluminum company separated from former Guizhou Aluminum Factory in February 2002, and is the Guizhou branch of overseas listed Aluminum Corporation of China (CHINALCO). The CHINALCO Guizhou branch is located in Baiyun District, Guiyang, with a floor area of 19km2 and a workforce of over 15,000, governing the first and second bauxite mines, a hydropower plant and an alumina plant. The first bauxite mine of the CHINALCO Guizhou branch is located in Longchang Town, Xiuwen County, with a floor area of 68,996.21 mu, a workforce of 302, an annual bauxite output of 80,000-150,000 tons, an annual tax payment of about 2 million yuan, and an average wage level of 12,000 yuan. The land acquired for the Subproject accounts for 0.14% of its floor area only, and belongs to marginal land, so land acquisition will not affect its production and income. Hongfa Refractory Material Factory and Xiuwen County Wuhong Mineral Shop

12 (discarded mining premises) are closed enterprises that are out of production. Discarded premises with a total area of 2,380.71 m2 of Hongfa Refractory Material Factory, including two brick kilns, and discarded premises of 59.46m2 of Xiuwen County Wuhong Mineral Shop will be inundated.

2.5.4 Affected population Nearly all collective land acquired for the Subproject is non-cultivated land, and is not contracted to households but managed by the village collectives, so no one will be affected directly. 61 persons will be affected temporarily by temporary land occupation. See Table 2-2.

Table 2-2 Statistics of population affected by temporary land occupation Item Affected village Affected population Xinzhai 44 Chengnan 9 Temporary land occupation Jianxin 2 Xinshui 6 Subtotal 61

GSDRI conducted a sampling survey in the project area, covering 13 sample households with 58 persons, with an average population of 4.5 per household, and including 3 minority persons (accounting for 5%). The survey was conducted in 2005 and related data will be updated in the baseline report which will be conducted by the resettlement external monitor. 2.5.4.1 Age and gender Among the 13 sample households with 58 persons, 9 persons are aged 15 years or below, accounting for 15.5%, 48 aged 16-60 years, accounting for 82.8%, and one aged above 60 years, accounting for 1.7%; there are 24 women, accounting for 41.4%. 2.5.4.2 Educational level Among the 13 sample households with 58 persons, 49 persons are aged 16 years or above, and their educational levels are as follows: 4 persons have received senior high school education, accounting for 8.2%, 17persons have received junior high school education, accounting for 34.7%, 25persons have received primary school education, accounting for 51.0%, and 3 persons are illiterate, accounting for 6.1%. Though the proportion of educated population aged below 16 years has risen greatly in recent years, the overall educational level of the affected population has not risen significantly. 2.5.4.3 Occupations Among the 13 sample households with 58 persons, except 12 students, the others are engaged in agricultural production. In the slack season, some laborers will

13 work outside and do unskilled jobs mainly. 2.5.4.4 Income In 2005, the total annual income of the sample households was 47,860 yuan (in which agricultural income was 31,109 yuan, accounting for 65%, and employment income 16,751 yuan, accounting for 35%), 3,681.6 yuan per household on average. Since all acquired land is non-cultivated land that is not contracted to households, land acquisition has no impact on the AHs’ income. 2.5.5 Vulnerable groups and ethnic minorities One vulnerable household with 3 persons will be affected temporarily, all being . See Table 2-3.

Table 2-3 Affected vulnerable groups Head of Cause of Population Age Policy applied household poverty The Longchang Town Government The couple is LZQ 3 35 offers a disability subsidy of 30 deaf and mute. yuan/month per capita.

2.5.6 Impacts on women 61 persons will be affected temporarily, including 30 women, who deal mainly with crop cultivation and household stockbreeding. Since land will be occupied temporarily, there will be little impact on their income. They expect cash compensation and nearby job opportunities. 2.5.7 Impacts on downstream water users Under existing conditions, the Jinlong Reservoir will supply irrigation water and a small amount of drinking water. The design range of irrigation and drinking water supply covers the existing service range of the river. When completed, the reservoir will regulate incoming water effectively, make more effective use of water resources, and increase the dependability of water use without having any adverse impact on existing water users. Environmental water will be released at a discharge of 1L/s·km2, i.e., 407,000 m3 per annum. 2.5.8 Impacts caused by restrictions on the water source protection zone After the completion of the reservoir, the local government will define a water source protection zone. Generally, for a small reservoir, the area below the check flood level is the zone where activities will be restricted to protect the quality of the watershed. The check flood level of the Jinlong Reservoir (once every 500 years) is 1,316.47m. Within this area, there is currently no settlement and no production activity, and land is collectively managed shrub forests and unused land, so the protection zone will have no impact on local residents’ production and livelihoods. 2.5.9 Affected infrastructure, ground attachments and minerals According to the survey, the Subproject affects one debris retaining dam, discarded mining premises with a total area of 2,440.17m2, and minerals, including a

14 tenement of the first bauxite mine of the CHINALCO Guizhou branch and one of Longchang Town Huafei Mountain Bauxite Mine of Guizhou Huafei Chemical Industrial Co., Ltd. According to the Letter of Commitment of the Xiuwen County Government on Minerals and Special Facilities Affected by the Subproject (see Appendix 3), all special facilities, industrial enterprises and minerals involved in inundation will be compensated for by the Xiuwen County Government through consultation, and such compensation is not included in the estimated investment in land acquisition and resettlement. See Table 2-4.

Table 2-4 Affected infrastructure, ground attachments and minerals Item Unit Qty. Remarks The original estimated gross investment is 350,000 yuan Debris retaining dam / 1 which will be compensated at the replacement price, for details, refer to annex 3. Hollow brick walls, undecorated, Discarded mining premises m2 2,440.17 discarded Tenement of the first aluminum mine Tenement of the CHINALCO Guizhou branch Longchang Town Huafei Mountain Bauxite Mine of Guizhou Huafei Tenement Chemical Industrial Co., Ltd.

15 3 Legal Framework and Policies

3.1 Laws, regulations and policies on resettlement

The resettlement policies of the Subproject are based mainly on the applicable regulations and policies of ADB and the PRC, including: ADB policies  Involuntary Resettlement, November 1995  Handbook on Resettlement: A Guide to Good Practice, 1998  Operations Manual (OM/F2), October 2003 State laws and regulations  Land Administration Law of the PRC (amended on August 28, 2004)  Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28)  Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (MLR [2004] No.238) (effective from November 3, 2004)  Measures for the Administration of the Preliminary Examination of the Land Used for Construction Projects (Decree No.27 of the Ministry of Land Resources, effective from December 1, 2004)  Methods for Announcement of Land Acquisition (Decree No.10 of the Ministry of Land Resources, effective from January 1, 2002) Applicable policies of Guizhou Province and Guiyang Municipality  Land Administration Regulations of Guizhou Province (effective from January 1, 2001);  Administrative Measures for Compensation for the Acquisition and Occupation of Woodland of Guizhou Province (Decree No.78 of the Guizhou Provincial Government) (effective from August 1, 2004)  Opinions of the Guizhou Provincial Government on Deepening the Reform and Rigidly Enforcing Land Administration (GPG [2005] No.17) (effective from June 21, 2005)  Regulations of Guizhou Province for the Preliminary Examination of Land Used for Construction Projects (GPLR [2004] No.122, effective from January 1, 2005)  Measures of Guizhou Province for the Implementation of Farmland Occupation Tax (GPG [1987] No.55)  Notice of the Provincial Government on Strengthening the Land Acquisition Management of Key Construction Projects (GPG [2004] No.5)  Notice of GMG on the Adjustment of the Standard of Guiyang Municipality for the Calculation of AAOVs for Land Acquisition (GMG Notice [2002] No.52)  Decision on the Amendment of the Administrative Measures for Compensation for the Acquisition and Occupation of Woodland of Guizhou Province (Decree No.124 of the Guizhou Provincial Government)  Notice of the General Office of the Guizhou Provincial Government on

16 Forwarding the Opinions of the Ministry of Land and Resources, and the Provincial Department of Finance on Strengthening Land Development and Consolidation, and the Balance between the Occupation and Supplement of Cultivated Land (GPG Office [2007] No.101)  Notice of the Guiyang Municipal Government on the Promulgation and Implementation of Uniform AAOVs and Location-based Compensation Rates for Land Acquisition (GMG [2009] No.100)  Notice of the Guiyang Municipal Government on the Measures for the Administration of Land Used Temporarily for Highways, Railways and Other Key Construction Projects of Guiyang Municipality (GMG [2009] No.86)  Notice of the General Office of the Guizhou Provincial Government on Forwarding the Opinions of the Municipal Land and Resources Bureau on the Transition between New and Old Compensation Rates for Land Acquisition (GMG [2010] No.6)  Outline of Land Acquisition and Resettlement Planning of the Subproject, DMS Report of the Subproject, etc.

3.2 ADB policies

ADB’s Safeguard Policy Statement has three key elements for involuntary resettlement: (1) compensation for lost properties, livelihoods and income; (2) assistance in resettlement, including the provision of a resettlement site, and appropriate facilities and services; and (3) assistance for restoration, as a minimum, to the standard of living before the project. Planning and implementation should take into account the following basic principles: 1 Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning through a survey and/or census of displaced persons, including a gender analysis, specifically related to resettlement impacts and risks. 2 Carry out meaningful consultations with affected persons, host communities, and concerned nongovernmental organizations. Inform displaced persons of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs. Pay particular attention to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensure their participation in consultations. Establish a grievance redress mechanism to receive and facilitate resolution of the affected persons’ concerns. Support the social and cultural institutions of displaced persons and their host population. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase. 3 Improve or at least restore, the livelihoods of all displaced persons through (i) land-based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land

17 does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible. 4 Provide physically and economically displaced persons with needed assistance, including the following: (i) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required. 5 Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards. In rural areas provide them with legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing. 6 Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status. 7 Ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of non-land assets. 8 Prepare a resettlement plan elaborating on displaced persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. 9 Disclose a draft resettlement plan, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders. 10 Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of the project’s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation. 11 Pay compensation and provide other resettlement entitlements before physical or economic relocation. Implement the resettlement plan under close supervision throughout project implementation. 12 Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and whether the objectives of the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports.

18 3.3 Laws and policies of the PRC

The Land Administration Law of the PRC is the main policy basis of the Subproject. In order to further define the principles for compensation for land acquisition and resettlement, compensation rates, land acquisition procedures, and monitoring mechanism, the State Council promulgated the Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28) in October 2004. Correspondingly, the Ministry of Land and Resources promulgated the Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (MLR [2004] No.238) in November 2004. In addition, the Guizhou Provincial Government promulgated the Notice of the Provincial Government on Strengthening the Land Acquisition Management of Key Construction Projects (GPG [2004] No.5), and Notice of the Guiyang Municipal Government on the Promulgation and Implementation of Uniform Annual Output Values and Location-based Compensation Rates for Land Acquisition (GMG [2009] No.100) These policies provide important guidelines on resettlement. See Table 3-1.

19 Table 3-1 Key provisions of SC [2004] No.28, MLR [2004] No.238 and GPG [2005] No.17, and application  MLR [2004]  SC [2004] No.28  GPG [2005] No.17 and GMG [2009] No.100 Subproject policy No.238  County-level and above local  Governments at all levels shall take  The RP will comply strictly governments shall take practical measures  Fixation of practical measures so that the standard of with the applicable policies so that the standard of living of LEFs is uniform AAOV rates living of LEFs is not reduced by land of the state, Guizhou Province Article 12 Improvement of measures for compensation for land acquisition acquisition land for compensation for measures of Improvement 12 Article not reduced by land acquisition. acquisition. and Guiyang Municipality.  Land compensation, resettlement subsidy and compensation for ground attachments  Land compensation, resettlement subsidy and crops shall be paid in full and timely and compensation for ground attachments and pursuant to law. If the land compensation crops shall be paid in full and timely and resettlement subsidy pursuant to the pursuant to law. If the land compensation prevailing laws and regulations are and resettlement subsidy pursuant to the insufficient to maintain the former prevailing laws and regulations are standard of living of the LEFs or to pay the insufficient to maintain the former social security expenses of farmers who  The AOV rates for land standard of living of the LEFs or to pay the lose all land due to land acquisition,  Determination of acquisition should comply social security expenses of farmers who lose governments of provinces, autonomous uniform AAOV with the applicable all land due to land acquisition, local regions and municipalities directly under multiples provisions of Guiyang governments shall approve an increased the central government shall approve an Municipality. resettlement subsidy. If the sum of the land increased resettlement subsidy. If the sum compensation and the resettlement subsidy of the land compensation and the attains the statutory upper limit and is resettlement subsidy attains the statutory still insufficient to maintain the former upper limit and is still insufficient to standard of living of the LEFs, local maintain the former standard of living of governments may pay a subsidy from the the LEFs, local governments may pay a income from compensated use of state land. subsidy from the income from compensated use of state land.  Governments of provinces, autonomous  Fixation of  The provincial land and resources  The minimum compensation regions and municipalities directly under integrated land department shall fix and publish the uniform rate for cultivated land is 14

20 the central government shall fix and prices for land AAOV rates or integrated land prices for times the AAOV (including land publish the uniform AAOV rates or acquisition areas land acquisition of all localities, and compensation, resettlement integrated land prices for land submit them to the provincial government for subsidy and compensation for acquisition of all cities and counties, so approval. ground attachments). that the same price applies to the same kind of land. For key construction projects of the state, land acquisition expenses must be listed in the budgetary estimate in full.  For land acquired for all nonagricultural construction projects, the same compensation rate shall apply to the same type of land, regardless of the nature or type of project, and construction costs shall not be reduced at the cost of farmers’ interests. For key national and provincial  All resettlement costs will  Distribution of construction projects, land acquisition be included in the gross land compensation costs must be included fully in the budget. investment of the Subproject. Compensation rates and resettlement measures for land acquisition of large- and medium-sized water resources and hydropower projects shall comply with the applicable provisions of the State Council and the provincial government. resettlement of LEFs of resettlement

Article 13Proper  County-level and above local  Resettlement for  Governments at all levels shall take  Cash compensation shall be governments shall take specific measures agricultural practical measures to guarantee long-term provided as the APs may wish. to guarantee LEFs’ long-term livelihoods.production livelihoods of LEFs.  For projects with a stable income,  For projects with a stable income,  During project  Resettlement by farmers may become a shareholder using the farmers may become a shareholder using the implementation, unskilled reemployment right to use of land used for construction right to use of land used for construction jobs will be provided to the

21 approved pursuant to law. approved pursuant to law. APs first.  Within the urban planning area, local  Within the urban planning area, local governments shall bring farmers who lose governments shall bring farmers who lose all all land due to land acquisition into the land due to land acquisition into the urban urban employment system, and establish a employment system, and establish a social social security system; out of the urban security system; out of the urban planning planning area, in acquiring land  Resettlement by area, in acquiring land collectively owned collectively owned by farmers, local  The APs will be provided dividend by farmers, local governments shall reserve governments shall reserve necessary arable with skills training. distribution necessary arable land or arrange land or arrange appropriate jobs for LEFs appropriate jobs for LEFs within the same within the same administrative area; administrative area; farmers without land farmers without land who do not have the who do not have the basic living and basic living and production conditions production conditions shall be subject to shall be subject to non-local non-local resettlement. resettlement.  The labor and social security  If landless farmers after land authorities shall propose guidelines for acquisition will be resettled on reserved  Non-local the employment training and social land, some land in appropriate urban resettlement security systems for LEFs as soon as construction areas may be set aside as possible. reserved land.  Reserved land may also be used for the centralized resettlement of LEFs. After approval, such land may be supplied by allocation, but shall not be transferred without authorization or used for real estate development. Improvement  During land acquisition, the ownership  Before acquisition is submitted for  A DMS shall be conducted of land  Disclosure of of collective land of farmers and the right approval pursuant to law, the use, location, using a 1/1,000 map, and the iii information on land to contracted management of farmers’ land compensation rate and mode of resettlement results shall be confirmed by acquisition shall be maintained. of the land to be acquired shall be notified APs.

22 to LEFs.  Before acquisition is submitted for approval pursuant to law, the use, location, compensation rate and mode of  the survey results of the present resettlement of the land to be acquired situation of the land to be acquired shall shall be notified to LEFs; the survey be confirmed by rural collective economic results of the present situation of the organizations and farmers to be affected by land to be acquired shall be confirmed by  Confirmation of land acquisition; if necessary, the land and  A public participation and rural collective economic organizations land acquisition resources authorities shall organize a policy consultation meeting and farmers to be affected by land survey results hearing in accordance with the applicable shall be held. acquisition; if necessary, the land and provisions. The materials for notification resources authorities shall organize a to and confirmation by the LEFs shall be hearing in accordance with the applicable taken as requisite materials for approval provisions. The materials for notification for land acquisition. to and confirmation by the LEFs shall be taken as requisite materials for approval for land acquisition.  Accelerate the establishment and  A coordination and judgment mechanism for improvement of the coordination and disputes over compensation and resettlement judgment mechanism for disputes over for land acquisition shall be established  Organization of compensation and resettlement for land and improved, where the local county  The RP or RIB shall be land acquisition acquisition to protect the lawful rights government shall coordinate such disputes distributed. hearing and interests of LEFs and land users. subject to ruling by the government of the Approved matters of land acquisition shall next higher level to protect the lawful be disclosed unless in special cases. rights and interests of LEFs and land users.  Approved matters of land acquisition shall be disclosed unless in special cases; the construction agency shall disclose the approval documents of farmland conversion, land acquisition and construction land on

23 the construction site for public supervision.  If the compensation and resettlement for  If the compensation and resettlement for

Article 15Article Strengthening Supervision over the landimplementation of acquisition  Disclosure of  Internal monitoring and land acquisition has not been implemented, land acquisition has not been implemented, approval items of external M&E will be the acquired land shall not be used the acquired land shall not be used land acquisition conducted. forcibly. forcibly.  Governments of provinces, autonomous  After farmland conversion and land regions and municipalities directly under acquisition have been approved according to the central government shall formulate the  Payment of law, compensation fees for land acquisition procedures for the distribution of the land compensation and shall be paid in full within the term  Compensation fees will be compensation within rural collective resettlement stipulated by law; if such fees are not fully paid directly to the affected economic organizations on the principle expenses for land paid on schedule, the local government shall village groups and villagers. that the land compensation is used for acquisition not grant the approval document for rural households affected by land construction land, and the construction acquisition mainly. agency shall not commence construction.  Rural collective economic organizations  Rural collective economic organizations affected by land acquisition shall disclose affected by land acquisition shall the receipt, disbursement and allocation of disclose the receipt, disbursement and land compensation fees to their members and allocation of land compensation fees to  Post-approval accept supervision. The agricultural and  The Guiyang PMO, and the their members and accept supervision. The supervision and civil affairs authorities shall strengthen Xiuwen County Land and agricultural and civil affairs authorities inspection of land the supervision over the allocation and use Resources Bureau will perform shall strengthen the supervision over the acquisition of land compensation fees within rural supervision and inspection. allocation and use of land compensation collective economic organizations, and no fees within rural collective economic organization or individual shall withhold, organizations. embezzle, encroach on or otherwise illegally use compensation fees.

LEF = land-expropriated farmer

24 3.4 Principles and eligibility for compensation of the Subproject

3.4.1 Principles for compensation The principles for compensation and entitlement of the Subproject have been formulated in accordance with the laws, regulations and policies of the Chinese government and ADB, with the aim of ensuring that DPs can obtain sufficient compensation and assistance measures so that their production and livelihoods are at least restored to pre-displacement levels. The principles for resettlement are shown in Table 3-2. Table 3-2 Principles for resettlement Principles 1 Involuntary resettlement should be avoided where feasible. The affected persons are granted compensation and rights that can at least maintain or 2 even improve their livelihoods in the absence of the project. The affected persons are given compensation and assistance in resettlement whether 3 legal title is available or not. The economic compensation shall ensure that everyone will at least maintain their 4 standard of living after resettlement If the land available to everyone is insufficient to maintain his/her livelihood, replacement 5 in cash or in kind and other income-generating activities are provided for the lost land. The affected persons fully understand their entitlements, the method and standard of 6 compensation, the livelihood and income restoration plan, and the project schedule, and participate in the implementation of the Resettlement Plan. No land should be acquired before the affected persons are satisfied with the 7 compensation and resettlement (plan). The executing agency and an independent agency / third party should monitor the 8 compensation, relocation and resettlement operations. The vulnerable groups (including women) are provided special assistance or treatment so 9 that they lead a better life, and all affected persons should have an opportunity to benefit from the project. 10 The resettlement expenses are sufficient to cover all affected aspects.

3.4.2 Determination of eligibility for compensation The cut-off date for the eligibility for compensation is the date on which the local government issues an order to cease construction. Any newly built housing or newly planted tree by affected persons in the subproject area after this date will not be entitled to compensation or resettlement. The order to cease construction was issued on November 16, 2009, as shown in Appendix 2.

3.5 Determination of compensation rates

3.5.1 Compensation for land acquisition The compensation rates for cultivated land, woodland and other land acquired for the Subproject has been fixed according to the Notice of the Guiyang Municipal Government on the Promulgation and Implementation of Uniform Annual Output Values and Location-based Compensation Rates for Land Acquisition (GMG [2009] No.100). Since all land acquired for the Subproject is in Longchang Town, Xiuwen

25 County, the uniform AAOV rate is 1,500 yuan/mu. See Table 3-3.

Table 3-3 Compensation rates for land acquisition of the Subproject Land Resettlement Woodland Overall AAOV rate Total Land type compensation subsidy compensation compensation (yuan/mu) (times) fees (times) (times) fees (yuan/mu) rate (yuan/mu) Cultivated land 1500 24 10 14 36000 Woodland 1500 10 7 3 18600 Shrub forests 1500 10 7 3 3600 15300 Construction 1500 7 4 3 300 10500 land Unused land 1500 4 4 0 6000 Other farmland 1500 8 5 3 12000

3.5.2 Compensation for temporary land occupation 1) Land compensation rates The compensation rate for temporarily occupied land is calculated using the formula “period of use × AAOV + young crop compensation + compensation for the maturation period4” according to the Notice of the Guiyang Municipal Government on Issuing the Administrative Measures for Temporary Land Use for Key Highway and Railway Projects of Guiyang Municipality (Interim) (GMG [2009] No.86), being 9,000 yuan/mu for 2 years’ occupation of this project. According to Decision on the Amendment of the Administrative Measures for Compensation for the Acquisition and Occupation of Woodland of Guizhou Province (Decree No.124 of the Guizhou Provincial Government), woodland compensation includes compensation fees for forests, woodland compensation fees and forest vegetation restoration costs. Woodland compensation fees will be based on the period of occupation, and compensation fees for forests and forest vegetation restoration costs will be based on the same rates as those for permanent land occupation. 2) Land restoration costs Since the land occupied temporarily in the water delivery area is used for pipeline laying and construction, the existing land will not be destroyed greatly and will be restored easily, the rate of farmland restoration costs will be 5 yuan/m2 for the water delivery area and 15 yuan/m2 for the junction construction area. The actual rates will be as determined in the Land Restoration Report to be approved later. 3) Garden land compensation fees Compensation for occupied garden land includes garden land compensation fees and compensation fees for forests, in which the compensation rate for forests on garden land is 11,088 yuan/mu. See Table 3-4.

4 Maturation period is aiming at the reclaimed temporarily-occupied-farmland. Since the AAOV of the reclaimed land is very low at the first 2-3 years, the compensation for maturation period is to make up the economic losses of this period.

26

Table 3-4 Compensation rates for temporary land occupation Compensation Item Unit rate (yuan) 1 Compensation fees for cultivated land 9000 2 Farmland restoration costs m2 5 3 Compensation fees for forests Timber forests mu 3600 Shrub forests mu 300 4 Woodland compensation fees 3000 5 Garden land compensation fees Garden land mu 3000 6 Compensation fees for forests on garden land Garden land mu 11088 7 Compensation fees for other farmland Grassland mu 3000 8 Compensation fees for construction land Rural housing land mu 3000

3.5.3 Permanent occupation of state-owned land The compensation rates for the permanent occupation of state-owned land will be the same as those for collective land acquisition. 3.5.4 Treatment of infrastructure, ground attachments and minerals A debris retaining dam of the first bauxite mine of the CHINALCO Guizhou branch will be affected by the Subproject, which was completed in 1993, 43m long and 73m wide, with a top height of 1,311.7m, a body masonry amount of 11,684 m3 and a total investment of 350,000 yuan. According to the Environmental Impact Assessment Report, Feasibility Study Report and Risk Evaluation Report on Geologic Hazards of the Construction Land of the Subproject, the debris retaining dam has no impact on water quality, and is stable in the normal storage and quick discharge modes, so it will not be cleaned up. Discarded premises with a total area of 2,380.71 m2 of Hongfa Refractory Material Factory, including two brick kilns, and discarded premises of 59.46m2 of Xiuwen County Wuhong Mineral Shop will be inundated. The affected minerals include a tenement of the first bauxite mine of the CHINALCO Guizhou branch and one of Longchang Town Huafei Mountain Bauxite Mine of Guizhou Huafei Chemical Industrial Co., Ltd. According to the Letter of Commitment of the Xiuwen County Government on Minerals and Special Facilities Affected by the Subproject (see Appendix 3), all special facilities, industrial enterprises and minerals involved in inundation will be compensated for by the Xiuwen County Government through consultation, and such compensation is not included in the estimated investment in land acquisition and resettlement. 3.5.5 Rates for other costs See Table 3-5.

Table 3-5 Resettlement costs and taxes No. Item Charging rate Basis of charging

27 No. Item Charging rate Basis of charging Notice on Issuing the Interim Administrative Measures for the Forest Shrub Collection and Utilization of Forest Vegetation Restoration vegetation forests Costs (MOF General [2002] No.73) and Administrative 1 8 yuan/m2 restoration Timber Measures for Compensation for the Acquisition and costs forests Occupation of Woodland of Guizhou Province (Decree No.78 of the Guizhou Provincial Government) 2 Reservoir Structures 100 yuan/m To be determined by reference to unit prices of recent projects under 2 clean-up Woodland 200 yuan/mu construction in Guizhou Province costs Other 60,000 yuan/km2 Reservoir bank 500,000 yuan (estimate) 3 instability testing and treatment costs 2.5% of resettlement compensation fees 4 Preparatory costs and reservoir clean-up costs Survey, design and 3% of resettlement compensation fees and 5 research costs reservoir clean-up costs Specifications on land acquisition Implementation 3% of resettlement compensation fees and 6 and resettlement design for management costs reservoir clean-up costs construction of water resources and Implementing agency 400,000 yuan (based on Xiuwen County’s 7 hydropower projects (SL290-2009) establishment costs practical situation) 8 Technical training costs 0.5% of resettlement compensation fees 1.5% of resettlement compensation fees 9 M&E costs and reservoir clean-up costs Consulting service 0.2% of resettlement compensation fees 10 costs and reservoir clean-up costs

3.6 Vulnerable groups

In addition to the above compensation policies for land acquisition, vulnerable groups affected by the Subproject are also entitled to the following preferential policies:  Laborers in vulnerable households will be provided with occupational training, and employment information and guidance in order to increase their job opportunities.  During project construction, recruit laborers from vulnerable households to do unskilled jobs.  A special support fund will be established in cooperation with the Civil Affairs Bureau of Xiuwen County.

3.7 Entitlement matrix

The entitlement matrix has been established in accordance with the applicable policies in this chapter, as shown in Table 3-6. Table 3-6 Entitlement matrix Type of Degree of APs Entitlements Compensation policy / rate impact impact Permanent 321.75 mu in Xinzhai (1) Compensation fees for land Land compensation fees: 15,300 yuan/mu

28 Type of Degree of APs Entitlements Compensation policy / rate impact impact land Xinzhai and and acquisition will be managed by the for shrub forests, 6,000 yuan/mu for acquisition Xiaoshan Xiaoshan village collectives and used specifically unused land, 10,500 yuan/mu for of Villages, in Villages for collective infrastructure construction. construction land collective which 252.84 (2) During construction, 196 unskilled land mu will be jobs will be generated and made compensated available to the APs. for (3) The PMO will appropriate a special fund of 3,000 yuan to train the labor in the AHs. 341.16 mu, (1) AHs receive compensation fees Compensation for temporary land including directly for temporary land occupation occupation: 9,000 yuan/mu-2 years; 241.74 mu of (2) Priority in land restoration, and farmland reclamation costs: 5 yuan/m2; cultivated land receiving land restoration costs woodland compensation: 3,000 Temporary 61 persons (3) Advance notice of land occupation yuan/mu-year; compensation for timber land in 4 (4) Priority in employment forests: 3600 yuan/mu-year; compensation occupation villages (5) Free agricultural skills training for shrub forests: 300 yuan/mu-year; other compensation: 3,000 yuan/mu-year, compensation for forests on garden land 11088 yuan/mu-year; forest vegetation restoration costs: 8 yuan/ m2 50.43 mu of (1) The CHINALCO Guizhou branch has The land occupied by the discarded CHINALCO entered into a preliminary agreement premises of Hongfa Refractory Material Permanent Guizhou and will receive cash compensation, Factory and Xiuwen County Wuhong occupation branch, 20.71 which is not included in the resettlement Mineral Shop will be compensated for at of state- mu of two budget; (2) The discarded premises of the rate for permanent collective land owned land discarded the other two enterprises will be acquisition. premises compensated based on negotiations. (1) During project construction, recruit 1 laborers from vulnerable households to household do unskilled jobs. Vulnerable with 3 (2) The Xiuwen PMO will establish a groups persons in support fund of 5,000 yuan, and provide Xinzhai assistance along with the civil affairs Village bureau. (1) During construction, 196 unskilled jobs will be generated for APs, in which not less than 30% will be provided to Including women. 30 women (2) 124 person-times will receive free affected by Women agricultural skills training, including not temporary less than 40 person-times of women land (32%). occupation (3) Obtaining relevant information during resettlement, and participating in consultation on resettlement

29 Type of Degree of APs Entitlements Compensation policy / rate impact impact

Infrastructure and ground and ground Infrastructure According to the Letter of Commitment of the Xiuwen County Government on One debris Minerals and Special Facilities Affected by attachments retaining dam, the Subproject (see Appendix 3), all special discarded facilities, industrial enterprises and mining Proprietors Compensation at replacement cost minerals involved in inundation will be premises with compensated for by the Xiuwen County a total area of Government through consultation, and 2,440.17m2 such compensation is not included in the estimated cost of land acquisition and resettlement.

30 4 Resettlement Measures

4.1 Objectives of resettlement In the Subproject, the APs will be compensated and resettled in a reasonable way so that their production level, income level and standard of living are restored or improved after resettlement. The impacts of the Subproject are the permanent acquisition and temporary occupation of collective land only, and no one will be resettled. Despite these minor impacts, some measures will be taken to ensure that the APs benefit from the Subproject.

4.2 Restoration measures for permanent land acquisition The permanent acquisition of collective land involves Xinzhai and Xiaoshan Villages, where 321.75 mu of land will be acquired, all being non-cultivated land that is not contracted to households, including 30.11 mu in Xiaoshan Village, accounting for 0.16% of this village’s land area, and 220.59 mu in Xinzhai Village, accounting for 2.28% of this village’s land area. See Table 4-1. Table 4-1 Impact analysis of collective land acquisition Land area permanently Village Land area (mu) Impact rate (%) acquired (mu) Xinzhai 9618.2 220.59 2.28% Xiaoshan 16081.7 30.11 0.16%

It is estimated that Xiaoshan Village will receive a compensation amount of 337,800 yuan and Xinzhai Village will receive 2,760,900 yuan. Compensation fees for land acquisition will be managed by the village collectives and used as special funds for collective facility construction in a manner discussed by villagers or the village congress. In addition, at the construction stage, 280 jobs will be generated on average, including 196 unskilled jobs (accounting for 70%), to be paid 20 yuan per day per capita. The Xiuwen PMO will make these unskilled jobs first to laborers in the AHs, especially vulnerable households to increase their income and improve their living standard.

4.3 Restoration of temporarily occupied land The households affected by temporary land occupation will be compensated for in cash in 2 years’ occupation.. 275.3 mu of land will be occupied temporarily, involving Xinzhai Village and 4 other villages. The total amount of compensation for temporary land occupation will be 3,695,745.1 yuan, in which the amount of compensation for temporarily occupied

31 cultivated land will be 2,175,660 yuan, which will be paid directly to the AHs. The temporarily occupied land will be restored after the completion of construction by the construction contractors. The restoration fee for contractors has been included in the project budget, so it is not listed in resettlement budget. In order to reduce the impact on young crops, construction will be conducted after harvest and before sowing, and notified to the AHs in advance to reduce their losses. After the completion of the Subproject, the improvement of irrigation conditions will increase the dependability of irrigation and increase agricultural income. Therefore, the production level and living standard of the AHs will not be reduced. The amount of compensation for temporary occupation of shrub forests and unused land will be 454,285.8 yuan, which will be paid to the affected village collectives for unified use on collective facility construction. 38.92 mu of cultivated land in the junction construction area (including 18.72 mu of irrigated land and 20.2 mu of non-irrigated land) and 202.82 mu of land in the water delivery area (136.93 mu of irrigated land and 65.89 mu of non-irrigated land) will be occupied temporarily. Temporary land occupation will affect the land contractors during the construction period, and the AHs will be compensated based on the land size occupied. The occupied land will be restored after construction for cultivation by the AHs. The construction agency should perform land reclamation in strict conformity with the Regulations on Land Restoration (Decree No.592 of the State Council) to bring the occupied land to a usable state, as identified in the Land Restoration Report to be approved. 1) Cultivated soil stripping: Before the commencement of construction, the construction agency should strip cultivated soil on the affected cultivated land by 50cm, and pile it up separately on a designated site; 2) Site clean-up: After construction, the construction agency should demolish temporary facilities and other structures in the construction area; 3) Land development: After site clean-up, the site should be first leveled, and then tamped down with backfilled bottom soil; 4) Soil maturation: Since cultivated soil will be piled up for a long time during the construction period, which is likely to result in soil hardening and nutrient loss, the reclaimed land must be fertilized to increase fertility.

4.4 Resettlement livelihood training Project implementation will result in adjustments to the agricultural structure of the subproject area. In order to provide technical guidance in this respect to the AHs, the Xiuwen PMO has established a special fund of 13,000 yuan to provide skills training to the AHs together with agricultural authorities. See . Table 4-. Table 4-2 Resettlement training program of the Subproject Number of Funding Status Time Location Mode Trainees Scope participants (yuan) Fruit tree finished 2012.2 Xinzhai Lecture Farmers 62 1500 cultivation 2012.3 Xinzhai Lecture Farmers 62 Crop cultivation 1500 finished 2012.10 Xinzhai Lecture Farmers 62 Fruit tree 5000 finished

32 Number of Funding Status Time Location Mode Trainees Scope participants (yuan) cultivation 2013.5 Xinzhai Lecture Farmers 62 Crop cultivation 5000 finished 2013.8 Xinzhai Lecture Farmers 31 Construction skills 3000 finished

4.5 Women and vulnerable groups At the RP preparation stage, women in the subproject area took an active part in the impact survey, and were consulted about ideas on income restoration programs. Women support the Subproject, and think the Subproject will result in crop restructuring and improve living conditions. In addition, they expect training on employment for project construction, cash compensation, and crop and fruit tree cultivation. At the implementation stage, the Xiuwen PMO will ensure that 60 women (accounting for 30% of the unskilled jobs) get unskilled jobs. Priority will be given to women in skills training to ensure that their economic status and income are not affected. 124 men-times will receive free agricultural skills training, including not less than 40 men-times of women (32%). One vulnerable household with 3 persons will be affected temporarily, in which the couple is deaf and mute. This household is already covered by the disability security policy of the Longchang Town Government. The Xiuwen PMO will establish a support fund for vulnerable groups of 5,000 yuan, and provide assistance to vulnerable groups affected by the Subproject together with the civil affairs bureau to ensure that their living standard is improved.

4.6 Restoration program for affected enterprises 11.02 mu of mining land of the first bauxite mine of the CHINALCO Guizhou branch will be occupied permanently. The land acquired for the Subproject accounts for 0.14% of its floor area only, and belongs to marginal land, so land acquisition will not affect its production and income. The acquired land will be compensated for at 110,000 yuan totally. Hongfa Refractory Material Factory and Xiuwen County Wuhong Mineral Shop (discarded mining premises) are closed enterprises that are out of production. Discarded premises with a total area of 2,380.71 m2 of Hongfa Refractory Material Factory, including two brick kilns, and discarded premises of 59.46m2 of Xiuwen County Wuhong Mineral Shop will be inundated. According to the Letter of Commitment of the Xiuwen County Government on Minerals and Special Facilities Affected by the Subproject (see Appendix 3), all special facilities, industrial enterprises and minerals involved in inundation will be compensated for by the Xiuwen County Government through consultation, and such compensation is not included in the estimated cost of land acquisition and resettlement.

33 4.7 Restoration of infrastructure and ground attachments The Subproject will affect one debris retaining dam and a discarded simple road with a total area of 7.47 mu, and discarded mining premises of 2,172.7 m2. The Xiuwen PMO will compensate the proprietor in cash at replacement cost without reconstruction.

Figure 4-1 Debris retaining dam

Figure 4-2 Premises of Hongfa Refractory Material Factory

Figure 4-3 Premises of Wuhong Mineral Shop

34 4.8 Forecast of APs’ production level and living standard, and evaluation (1) Quality and amount of cultivated land Due to land acquisition for the Subproject, the per capita cultivated area of Group 6 of Xiaoshan Village will be reduced by 0.01 mu, with little impact. Through soil improvement and fertilization, unit output will be improved. (2) Per capita net income The Jinlong Reservoir area boasts superior traffic and production conditions, and natural and social resources. The APs’ income can be increased greatly through crop cultivation, forest and fruit cultivation, and stockbreeding, a shown in Table 4-13. Table 4-3 Composition of per capita net income after resettlement (yuan) Town Food crops Cash crops Stockbreeding Employment Per capita net income Longchang 2650 1000 650 3479.15 7779.15

Calculated at the price of 2012, after resettlement, the per capita net income of the APs will be 7,779.15 yuan through production planning, which will meet the planned target. (3) Forecast of living standard The only resettlement mode applied to the Subproject will be one-time cash compensation.

35 5 Organizational Structure

5.1 Organizational setup

To ensure successful land acquisition and resettlement as desired, the Guiyang PMO has established a special social and environmental resettlement office, where 4 persons are responsible specifically for land acquisition and resettlement activities. Correspondingly, the Xiuwen PMO established a resettlement office with two full-time staff members responsible for resettlement. In March 2006, the Xiuwen County Government established a project leading group for coordination of project preparation and implementation. The Leading Group is headed by a deputy head of Xiuwen County, and is composed of leaders of the water resources, land and resources, finance, and civil affairs bureaus. The members have rich experience in land acquisition, house demolition and resettlement. The Xifeng PMO is established under the Leading Group, responsible for project preparation, coordination, implementation and management. See Figure 5-1.

Guiyang PMO

Social, Environment & Resettlement Office (4 persons)

County land Xiuwen PMO External M&E & resources agency bureau Resettlement office (2 persons)

Affected town, villages, groups and APs

Figure 5-1 Resettlement organizational chart

5.2 Staffing and training program

5.2.1 Staffing To ensure the successful implementation of the resettlement work, all resettlement agencies of the Subproject have been provided with full-time staff, and a smooth channel of communication has been established, as shown in Table 5-1.

36 Table 5-1 Staffing of resettlement agencies Agency Workforce Composition Guiyang PMO 4 Civil servants Xiuwen PMO 2 Civil servants Town, villages and village groups 6-12 Officials and AP representatives External M&E agency 4 Resettlement experts

5.2.2 Training program During resettlement implementation, resettlement staff will be organized by the Guiyang PMO to visit domestic ADB-funded projects and attend training on resettlement policies. See Table 5-2.

Table 5-2 Training program of resettlement staff Funding No. Scope Trainees Time Location (0,000 yuan) Resettlement learning Backbone 1 tour of domestic ADB Dec. 2013 In the country 0.5 resettlement staff projects Resettlement 2 Resettlement staff Feb. 2014 Guiyang 0.1 operational training

5.3 Measures for improving resettlement agencies

In order to ensure the smooth implementation of resettlement, it is necessary to strengthen capacity building and the following measures will be taken:

(1) Provide sufficient funds and equipment, including telephones, fax machines and computers;

(2) Establish a management information system and strengthen information feedback to ensure a smooth information flow;

(3) Strengthen the reporting system and internal monitoring, and solve issues timely; and

(4) Establish an external M&E mechanism and an early warning system; the external M&E agency should provide advice and solutions on existing issues to the implementing agencies.

37 6 Public Participation and Grievance Redress

6.1 Public participation

According to the ADB, state and provincial policies on land acquisition, house demolition and resettlement, it is very necessary to conduct public participation at the preparation and implementation stages in order to maintain the lawful rights and interests of the APs, reduce grievances and disputes, listen to opinions and suggestions from the APs, prepare the RP properly and do organizing work well for proper resettlement.

Figure 6-1 Willingness survey at a village committee

Figure 6-2 Interviews with APs

6.1.1 Participation at the preparation stage Since March 2006, the Xiuwen PMO and GSDRI have conducted a series of socioeconomic survey and public consultation activities (with 30% of participants being women) under the direction of the technical assistance consultants. At the preparation stage, GSDRI, XCWRB and technical assistance consultants conducted extensive consultation on land acquisition and resettlement. See

38 Table 6-1.

Table 6-1 Public participation at the preparation stage # of Agency Date Participants Purpose Key opinions/details persons APs, village  Introducing the background and officials, purpose of the Subproject Xiuwen Mar. technicians, Feasibility study, field  Minimizing farmland occupation 15 PMO/GSDRI 2006 government visit, DMS  Learning impacts of the Subproject agencies  Consultation on resettlement policies concerned  Possible resettlement programs APs, village Xiuwen Mar. Willingness survey of  Expecting cash compensation officials, 30 PMO/GSDRI 2006 APs  Providing skills training technicians  Assisting in the DMS Government  APs expressed strong support for the Xiuwen Mar. RP preparation, agencies 50 Subproject PMO/GSDRI 2006 socioeconomic survey concerned, APs  Socioeconomic survey and displaced household survey Government Xiuwen May Preparing an income  Consultation on compensation and agencies 47 PMO/GSDRI 2006 restoration program income restoration programs concerned, APs Jun. APs, village Disclosure of the RP or  Disclosure of compensation rates and Xiuwen PMO 2006 groups RIB appeal channel Aug. Disclosure of the first ADB website 2006 draft of the RP Discussion of Studying income Paying land compensation fees directly to income restoration Jul. Guiyang PMO, 35 restoration programs AHs; establishing personal compensation program of Xinzhai 2009 GSDRI, APs for APs accounts Village Discussion of Studying income Paying land compensation fees directly to income restoration Jan. Guiyang PMO, 7 restoration programs AHs; establishing personal compensation program of 2010 GSDRI, APs for APs accounts Xiaoshan Village Willingness survey Dec. Town, villages, Willingness survey of 100% of the APs expect one-time 36 meeting 2010 groups, APs APs compensation. APs, county Jul. Breaking down Breakdown of government, 2010 – resettlement impacts to resettlement Guiyang PMO, / Oct. determine preliminary impacts GSDRI, village 2011 restoration programs committees

6.1.2 Participation at the implementation stage During resettlement implementation, the Xiuwen PMO will conduct further public participation. See Table 6-2. Table 6-2 Public participation plan of the Subproject Purpose Mode Time Agency Participants Topic Village Xiuwen PMO, Disclosure of land Land acquisition bulletin land & resources acquisition area, Sep. 2013 All APs announcement board, village bureau, town and compensation rates and meeting village officials resettlement modes, etc. Announcement Village Xiuwen PMO, Compensation fees and Dec. 2013 All APs of compensation bulletin land & resources mode of payment

39 Purpose Mode Time Agency Participants Topic and resettlement board, village bureau, town and options for land meeting village officials acquisition Xiuwen PMO, Finding out anything DMS result land & resources Field survey Jan. 2014 All APs omitted to determine the verification bureau, town and final impacts village officials Discussing the final Determination of Villager Xiuwen PMO, Before income restoration income meeting land & resources implement All APs program and the program restoration (many bureau, town and –ation for use of compensation program times) village officials fees

6.2 Grievance redress

Since public participation is encouraged during the preparation and implementation of the RP, no substantial dispute will arise. However, unforeseeable circumstances may arise during this process. In order to address issues effectively, and ensure the successful implementation of project construction and land acquisition, a transparent and effective grievance redress mechanism has been established. The basic grievance redress system is as follows:

 Stage 1: If any right of any AP is infringed on in any aspect of land acquisition and resettlement, he/she may file an appeal with the county resettlement office or Xiuwen PMO, which shall record such appeal and solve it within 2 weeks.

 Stage 2: If the appellant is dissatisfied with the disposition of Stage 1, he/she may file an appeal to the Guiyang PMO after receiving such disposition, which shall make a disposition within 2 weeks.

 Stage 3: If the appellant is still dissatisfied with the disposition of Stage 2, he/she may file an appeal to competent administrative authorities level by level in accordance with the Administrative Procedure Law of the PRC for arbitration after receiving such disposition.

 Stage 4: If the appellant person is still dissatisfied with the disposition of Stage 3, he/she may file an action in a civil court in accordance with the Civil Procedure Law of the PRC after receiving the arbitration award. AP can also submit complaints to ADB which will be handled by the Project Implementation Team. If an AP is still not satisfied and believes he/she has been harmed due to non-compliance with ADB policy, he/she may submit a complaint to ADB’s Office of Special Project Facility or Office of Compliance Review in accordance with ADB’s Accountability Mechanism5.

All agencies will accept grievances and appeals from the affected persons for free, and costs so reasonably incurred will be disbursed from the contingencies.

5 For further information, see: http://www.adb.org/Accountability-Mechanism/default.asp.

40 During the whole construction period of the Subproject, these appeal procedures will remain effective to ensure that the affected persons can use them to address relevant issues. The above grievance redress system will be communicated to the APs at a meeting or through the RIB, so that the APs know their right of appeal. In addition, the appeal process will be disclosed to the affected population via mass media.

41 7 Resettlement Budget

7.1 Resettlement budget

All costs incurred during land acquisition and resettlement will be included in the general budget of the Subproject. The total cost of resettlement of the Subproject is 13,958,639.57 yuan, in which the cost of resettlement for the inundation area is 6,884,651.39 yuan, accounting for 49.32% of total cost; that in permanent land acquisition 1,933,450.02 yuan (13.85% of total) and that in temporary land occupation 1,807,565.20 yuan (12.95% of total) for the junction area; that in permanent land acquisition 71,129.76 yuan (0.51% of total) and that in temporary land occupation 3,261,843.20 yuan (23.37% of total) for the water delivery area. See Table 7-1.

7.2 Cost breakdown

See Table 7-2-and Table 7-6.

42 Table 7-1 Summary of Resettlement Cost Estimates of the Subproject Unit: yuan Junction construction area (yuan) Water delivery (yuan) Inundation No. Item Permanent land Temporary land Permanent land Temporary land Total Percent area (yuan) acquisition occupation acquisition occupation I Rural resettlement compensation fees 2491758.00 824685.00 1128871.44 35331.00 2566873.66 7047519.10 50.49% II Reservoir and site clean-up costs 287441.00 11696.00 19202.00 742.00 11444.00 330525.00 2.37% III Other costs 695937.10 89434.30 122747.85 3856.11 275822.77 1187798.13 8.51% IV Basic contingencies 417016.33 111097.84 152498.55 4791.49 342496.85 1027901.06 7.36% V Relevant taxes 2492498.96 896536.88 384245.36 26409.16 65205.92 3864896.28 27.69% Reservoir bank instability testing and VI 500000.00 500000.00 3.58% treatment costs VII Total Cost 6,884,651.39 1,933,450.02 1,807,565.20 71,129.76 3,261,843.20 13,958,639.57 100.00% VIII Percentage 49.32% 13.85% 12.95% 0.51% 23.37% 100.00%

43 Table 7-2 Cost Estimate Sheet of Reservoir Inundation Area No. Item Unit Qty. Unit price Total (yuan) Part I: Rural resettlement 2491758.00 compensation fees Land compensation fees I and resettlement 2491758.00 subsidies Longchang Town 1 Woodland 2024343.00 Shrub forests mu 132.31 15300 2024343.00 2 Unused land 230640.00 River flat mu 38.44 6000 230640.00 3 Other farmland 19320.00 Grassland mu 1.61 12000 19320.00 4 construction land 217455.00 Industrial and mining land mu 20.71 10500 217455.00 As per the commitment Compensation fees for special of the Xiuwen County facilities, industrial enterprises Government 0 and minerals Not included in the

budget Part II: Site clean-up costs 287441.00 I Woodland clean-up costs mu 169.12 200 33824.00 II Other clean-up costs km² 0.16 60000 9600.00 III Building clean-up costs m² 2,440.17 100 244017.00 Part III: Other costs 695937.10 I Preparatory costs 2.5% of the sum of Parts I and II 69479.98 Survey, design and II 3% of the sum of Parts I and II 83375.97 research costs Implementation III 3% of the sum of Parts I and II 83375.97 management costs Implementing agency IV 400000.00 establishment costs V Technical training costs 0.5% of the sum of Parts I and II 12458.79 VI M&E costs 1.5% of the sum of Parts I and II 41687.79 VII Consulting service costs 0.2% of the sum of Parts I and II 5558.40 Part IV: Basic contingencies 12% of the sum of Parts I and II 417016.33 Part V: Relevant taxes 2492498.96 I Farmland occupation tax 1786492.80 1 Woodland m² 88250.77 20 1765015.40 2 Other farmland m² 1073.87 20 21477.40 Forest vegetation III 706006.16 restoration costs Shelter forests (shrub 1 m² 88250.77 8 706006.16 forests) Part VI: Reservoir bank instability testing and treatment costs 500000.00 Total Cost 6,884,651.39

44 Table 7-3 Cost Estimate Sheet of the Junction Construction Area (Permanent Land Occupation) Unit Total No. Item Unit Qty. price (yuan) Part I: Rural resettlement compensation fees 824685.00 Land compensation fees and resettlement I 824685.00 subsidies Longchang Town

1 Woodland 734805.00 Timber forests mu 7.17 18600 133362.00 Shrub forests mu 39.31 15300 601443.00 2 unused land 63180.00 River flat mu 9.03 6000 54180.00 Bare rock 1.5 6000 9000.00 3 Other farmland 13200.00 Grassland mu 1.1 12000 13200.00 Part II: Site clean-up costs 11696.00 I Woodland clean-up costs mu 46.48 200 9296.00 II Other clean-up costs KM² 0.04 159000 Part III: Other costs 89434.30 2.5% of the sum of I Preparatory costs 20909.53 Parts I and II 3% of the sum of Parts II Survey, design and research costs 25091.43 I and II 3% of the sum of Parts III Implementation management costs 25091.43 I and II IV Technical training costs 0.5% of Part I 4123.43 1.5% of the sum of V M&E costs 12545.72 Parts I and II 0.2% of the sum of VI Consulting service costs 1672.76 Parts I and II 12% of the sum of Part IV: Basic contingencies 111097.84 Parts I and II Part V: Relevant taxes 896536.88 I Farmland occupation tax 639519.60 1 Woodland m² 624845.6 2 Other farmland m² 733.7 20 14674.00 II Farmland reclamation costs mu 0.36 25000 9000.00 III Forest vegetation restoration costs 248017.28 1 Shelter forests (timber forests) m² 4782.39 8 38259.12 2 Shelter forests (shrub forests) m² 26219.77 8 209758.16 Total Cost 1,933,450.02

45 Table 7-4 Cost Estimate Sheet of the Junction Construction Area (Temporary Land Occupation) Unit No. Item Unit Qty. Total (yuan) price Part I: Rural resettlement compensation 1128871.44 fees Longchang Town I Land compensation fees 1128871.44 1 Forestland reclamation costs m² 25959.64 28.5 739674.6 2 Compensation fees for forests 64239.00 Timber forests mu 12.92 3600 46512.00 Shrub forests mu 59.09 300 17727.00 3 Woodland compensation fees 216030.00 Timber forests mu 12.92 3000 38760.00 Shrub forests mu 59.09 3000 177270.00 4 Garden land compensation fees 20040.00 Garden land mu 6.68 3000 20040.00 5 Primitive forest compensation fees 74067.84 Garden land mu 6.68 11088 76067.84 6 Compensation fees for other forests mu 14820.00 Grassland mu 4.94 3000 14820.00 Part II: Site clean-up costs 19202.00 I Woodland clean-up costs mu 72.01 200 14402.00 II Other clean-up costs KM² 0.08 60000 4800.00 Part III: Other costs 122747.85 I Preparatory costs 2.5% of the sum of Parts I and II 28700.40 II Survey, design and research costs 3% of the sum of Parts I and II 34442.20 III Implementation management costs 3% of the sum of Parts I and II 34442.20 IV Technical training costs 0.5% of the sum of Parts I and II 5644.36 V M&E costs 1.5% of the sum of Parts I and II 17221.10 VI Consulting service costs 0.2% of the sum of Parts I and II 2296.15 12% of the sum Part IV: Basic contingencies 12% of the sum of Parts I-III of Parts I and II Part V: Relevant taxes 384245.36 I Forest vegetation restoration costs m² 8617.64 8 384245.36 1 Shelter forests (timber forests) m² 39413.03 8 68941.12 2 Shelter forests (shrub forests) 315304.24 Total Cost 1,807,565.20

Table 7-5 Cost Estimate Sheet of the Water Delivery Area (Permanent Land Occupation) Total No. Item Unit Qty. Unit price (yuan) Part I: Rural resettlement compensation 35331.00 fees Longchang Town

Land compensation fees and I 35331.00 resettlement subsidies Part II: Site clean-up costs 742.00 I Woodland clean-up costs mu 71 200 142.00

46 II Other clean-up costs KM² 0.01 60000 600.00 Part III: Other costs I Preparatory costs 2.5% of the sum of Parts I and II 901.83 II Survey, design and research costs 3% of the sum of Parts I and II 1082.19 III Implementation management costs 3% of the sum of Parts I and II 1082.19 IV Technical training costs 0.5% of Parts I 176.66 V M&E costs 1.5% of the sum of Parts I and II 541.10 VI Consulting service costs 0.2% of the sum of Parts I and II 72.15 12% of the Part IV: Basic contingencies 12% of the sum of Parts I-III sum of Parts I-III Part V: Relevant taxes 26409.16 Total Cost 71,129.76

47 Table 7-6 Cost Estimate Sheet of the Water Delivery Area (Temporary Land Occupation)

No. Item Unit Qty. Unit price Total (yuan)

Part I: Rural resettlement compensation fees 2566873.66 Longchang Town I Land compensation fees 2566873.66 1 Compensation fees for cultivated land 1825380.00 Irrigated land mu 136.93 9000 1232370.00 Non-irrigated land mu 65.89 9000 593010.00 2 Farmland reclamation costs m² 135280.94 5 676404.70 3 Compensation fees for forests 11388.00 Timber forests mu 2.34 3600 8424.00 Shrub forests mu 9.88 300 2964.00 4 Woodland compensation fees 36660.00 Timber forests mu 2.34 3000 7020.00 Shrub forests mu 9.88 3000 29640.00 5 Garden land compensation fees 2760.00 Garden land mu 0.92 3000 2760.00 Compensation fees for forests on 6 10200.96 garden land Garden land mu 0.92 11088 10200.96 7 Compensation fees for other farmland 3750.00 Grassland mu 1.25 3000 3750.00 Compensation fees for construction 8 330.00 land Rural housing land mu 0.11 3000 330.00 Part II: Site clean-up costs 11444.00 I Woodland clean-up costs mu 12.22 200 2444.00 II Other clean-up costs KM² 0.15 60000 90000.00 Part III: Other costs 275822.77 I Preparatory costs 2.5% of the sum of Parts I and II 64457.94 II Survey, design and research costs 3% of the sum of Parts I and II 77349.53 III Implementation management costs 3% of the sum of Parts I and II 77349.53 IV Technical training costs 0.5% of Parts I 12834.37 V M&E costs 1.5% of the sum of Parts I and II 38674.76 VI Consulting service costs 0.2% of the sum of Parts I and II 5156.64 12% of the Part IV: Basic contingencies 12% of the sum of Parts I-III sum of Parts I-III Part V: Relevant taxes 65205.92 I Forest vegetation restoration costs 65205.92 1 Shelter forests (timber forests) m² 1560.78 8 12486.24 2 Shelter forests (shrub forests) m² 6589.96 8 52719.68 Total Cost 326184.20

7.3 Cost Disbursement plan and funding sources

All resettlement funds of the Subproject are from local counterpart funds. Before project construction or during project implementation, the disbursement plan will be implemented in stages in order not to affect the production and livelihoods of the AHs,

48 as shown in Table 7-7.

Table 7-7 Resettlement Cost of the Subproject No. Item Unit 2013 2014-2015 Total Cost I Rural resettlement compensation fees yuan 1953556.44 5093962.66 7047519.10 II Reservoir and site clean-up costs yuan 30898.00 299627.00 330525.00 III Other costs yuan 593899.07 593899.06 1187798.13 IV Basic contingencies yuan 263596.07 764304.67 1027901.06 V Relevant taxes yuan 1280782.24 2584114.04 3864896.28 Reservoir bank instability testing and VI yuan 500000.00 500000.00 treatment costs VII Total Cost yuan 4122732.14 9835907.43 13,958,639.57

7.4 Management and disbursement of resettlement funds

Resettlement funds under the Subproject will be managed by the Xiuwen County Finance and Accounting Center in a unified manner, and the Xiuwen PMO will apply for appropriations with the Center based on the progress of resettlement. Compensation fees for land acquisition will be used in adequate consultation with the APs, compensation fees for young crops will be paid directly to the APs, and compensation fees for infrastructure and attachments will be paid to the affected entities and individuals. To ensure that compensation fees for resettlement are paid timely and fully to the APs, and that their production level and living standard are restored, the Xiuwen PMO will take the following measures:  All costs related to resettlement will be included in the general budget of the Subproject;  Land compensation fees and resettlement subsidies will be paid up before land acquisition so that all affected persons can be resettled properly; and  To ensure the successful implementation of land acquisition and resettlement, financial and supervisory agencies will be established at all levels so that all funds are disbursed timely and fully.

49 8 Resettlement Implementation Plan

8.1 Principles for resettlement implementation

According to the project implementation schedule, resettlement will be implemented from November 2013 to October 2014. In order that the resettlement schedule links up the construction schedule of the Subproject, the basic principles for resettlement implementation are as follows:  Land acquisition should be completed at least 3 months prior to the commencement construction, and the starting time will be determined as necessary for land acquisition and resettlement.  During resettlement, the affected persons shall have opportunities to participate in the Subproject. Before the commencement of construction, the range of land acquisition will be disclosed, the RIB distributed and public participation activities conducted properly;  All compensation fees will be paid to the affected proprietors directly and fully within 3 months of execution of the land acquisition agreement. No entity or individual should use such compensation fees on their behalf, nor should such compensation fees be discounted for any reason.

8.2 Schedule of resettlement implementation

The general resettlement schedule of the Subproject has been drafted based on the progress of project construction and land acquisition. The exact implementation schedule may be adjusted due to deviations in overall project progress. See Table 8-1. Table 8-1 Schedule of resettlement implementation of the Subproject No. Activity Time Progress 1 PR preparation 1.1 Establishment of the Xiuwen PMO Mar. 2006 Completed 1.2 DMS Mar. 2006 – Apr. 2011 Completed 1.3 Preparation of the RP Apr. 2006 – May 2006 Completed 1.4 Disclosure of the RP on ADB’s website Aug. 2006 2 Information disclosure and public participation 2.1 Consultation with agencies concerned and APs Mar. 2011 – May 2013 Completed 2.2 Disclosure of the RP to APs Jul. 2013 Completed 2.3 Submission of the updated RP to ADB Aug. 2013 3 Approval of RP 3.1 Domestic Feb. 2012 Completed 3.2 ADB Sep. 2013 4 Construction land approval 4.1 Land pre-examination Aug. 2012 Completed 4.2 Land approval Sep. 2012 Completed 4.3 Cut-off date notification Nov. 16, 2009 5 Implementation 5.1 Land acquisition announcement Dec. 2011 Completed 5.2 Verification of DMS results Oct. 2011 Completed 5.3 Land acquisition agreement Nov. 2013 5.4 Payment of compensation fees Dec. 2013

50 No. Activity Time Progress 5.5 Skills training Jan. 2013 – Dec. 2014 5.6 Income restoration measures Mar. 2013 – Dec. 2014 6 M&E 6.1 Updated Baseline survey Dec. 2013 6.2 Internal monitoring Nov. 2013 – Dec. 2016 6.3 External M&E Dec. 2013 – Dec. 2016 7 Resettlement progress Preparation and land acquisition of junction 7.1 Nov. 2011 – Jun. 2013 construction area 7.2 Resettlement design and implementation Jun. 2012 –Dec. 2013 7.3 Completion of land acquisition, reservoir clean-up Jun. – Nov. 2013

51 9 Monitoring and Evaluation

To ensure the successful implementation of the RP and realize the objectives of resettlement properly, land acquisition, house demolition and resettlement activities of the Subproject will be subject to periodic M&E according to ADB’s resettlement policies, including internal and external monitoring.

9.1 Internal monitoring

The internal resettlement monitoring agencies of the Guiyang PMO, Xiuwen PMO and other departments concerned (e.g., land and resources bureau). The Xiuwen PMO will develop a detailed internal monitoring plan for land acquisition and resettlement, including: (1) Investigation, coordination of and suggestion on key issues of the resettlement and implementing agencies during implementation; (2) Restoration of the household income of APs; (3) Restoration of vulnerable groups; (4) Payment, use and availability of compensation fees for resettlement; (5) Level of public participation and consultation during implementation; (6) Resettlement training and its effectiveness; and (7) Working mechanism, training, working hours and efficiency of local resettlement management agencies The Xiuwen PMO will submit an internal monitoring report to ADB semiannually. Such report should indicate the statistics of the past 6 months in tables, and reflect the progress of land acquisition, resettlement and use of compensation fees through comparison. Table 9-1 and ______, ______Township, ______District (County) Cut-off date: MM/DD/YY Date of completion: MM/DD/YY Actually Proportion of Item Unit Planned Accumulated completed completion Permanent land acquisition mu Temporary land mu occupation Payment of land 10,000 compensation fees yuan Training Person Employment arrangement Person Land reallocation mu Reported by: ______Signature (person responsible): ______Official seal:

Table 9-2 provide some formats.

Table 9-1 Progress report on resettlement for land acquisition and property demolition ______, ______Township, ______District (County) Cut-off date: MM/DD/YY Date of completion: MM/DD/YY Actually Proportion of Item Unit Planned Accumulated completed completion Permanent land acquisition mu Temporary land mu occupation

52 Payment of land 10,000 compensation fees yuan Training Person Employment arrangement Person Land reallocation mu Reported by: ______Signature (person responsible): ______Official seal:

Table 9-2 Progress of fund utilization ______, ______Township, ______District (County) Cut-off date: MM/DD/YY Date of completion: MM/DD/YY Required Compensation Affected Unit/ Adjusted Proportion of Description6 investment received entity qty. compensation compensation (yuan) (yuan) Village 1 Village 2 Collective Displaced household Entity Reported by: ______Signature (person responsible): ______Official seal:

9.2 External monitoring

According to ADB’s policies, the Guiyang PMO will employ a qualified, independent and experienced resettlement agency as the independent resettlement monitoring agency. The external monitoring agency will conduct follow-up M&E of resettlement activities periodically, monitor resettlement progress, quality and funding, and give advice. It shall also conduct follow-up monitoring of the APs’ production level and standard of living, and submit M&E reports to the Guiyang PMO and ADB. See Appendix 3 for the terms of reference for external M&E. (1) Baseline survey The external monitoring agency will conduct a baseline survey of the affected villages and village groups affected by land acquisition to obtain baseline data on the monitored displaced households’ production level and standard of living. The production level and standard of living survey will be conducted semiannually to track variations of the APs’ production level and standard of living. This survey will be conducted using such methods as panel survey (sample size: 50% of the AHs; to be sampled randomly), random interview and field observation to acquire necessary information. A statistical analysis and an evaluation will be made on this basis. (2) Periodic M&E During the implementation of the RP, the external monitoring agency will conduct periodic follow-up resettlement monitoring semiannually of the following activities by means of field observation, panel survey and random interview: payment and amount of compensation fees, new livelihoods and jobs, production level and living standard of the APs, resettlement agencies, etc. The external monitoring agency will submit a monitoring or evaluation report to

6 Fill in labor training, employment, vulnerable group subsidy, etc. in “Description”.

53 ADB and the Guiyang PMO semiannually. See Table 9-3.

Table 9-3 Schedule for resettlement monitoring and evaluation Report Date 1 Baseline survey report Dec. 2013 2 Monitoring report (No.1) Dec. 2013 3 Monitoring report (No.2) Jun. 2014 4 Monitoring report (No.3) Dec. 2014 5 Evaluation report (No.1) Dec. 2015 6 Post-evaluation report Dec. 2016

54 Appendix 1 Schematic Map of the Subproject

55 Appendix 2 Order to Cease Construction

56

Xiuwen County Government

Notification for Prohibit Adding New Projects and Immigrations in Jinlong Reservoir Inundation Area and Construction Area

Longshan Town Government; relevant departments in County Government: Jinlong Reservoir is the project that plan to conduct construction by use ADB loans. It is a comprehensive project, and the main functions of the

57 reservoir are county water supply and irrigation, it also has the function for drinking in rural area. Reservoir is located in Xiaoqiao River of Xiuwen River tributary, the first tributary in the right bank of Maotiao River of Wujiang catchment in Xinzhai Village of Longchang Town. Designed normal storage level is 1314m. Resettlement work for reservoir inundation and construction area will involve county and surrounding villages. Recently is the key period for project preparation, in order to ensure the accuracy of physical indicators in reservoir inundation area and construction area and reduce the unnecessary loss, county government made a decision that prohibit adding new projects and immigrations in Jinlong Reservoir inundation area and construction area. The specific notification is as follow. I. Longshan Town Government and relevant departments in County Government should active support project construction of Jinlong Reservoir, should provide well services so that project can smoothly implementation; particularly should well propagandize policies to the local people, should guide cadres and masses to properly handle the relationship between state; collective and personal. Create well conditions for resettlement work in inundation area and construction area. II. From the notification issued day, any agencies and personal shouldn’t add new construction items and physical indicators in Jinlong Reservoir inundation area and construction area. The quantity and type of the physical indicators be surveyed by design agency and county government shall prevail, after that, newly added items wouldn’t be granted recognition and compensation. III. Under construction project which meets the provisions of national industrial policies and approved by relevant departments in county government will processing as follow: 1. For projects under normal storage level and will be all inundated. The construction should be stopped. 2. For projects under normal storage level and parts of will be inundated. If the project wouldn’t loss its main function and project benefit wouldn’t loss a lot, whether the construction should be stopped or not should be reviewed and approved by county government. Longchang Town Government should submit a report which reflects actual construction situation

58 to county water resources bureau and county development and reform bureau within 15 days after the notification issued. County water resources bureau, county development and reform bureau and designed agency will review the report and submit the results to county government for approval. IV. Longchang Town Government and relevant departments in County Government should strictly control population in reservoir inundation area and construction area. From the notification issued day, it wouldn’t transact population moving in formalities. Anyone in violation of the notification to move in wouldn’t be treated as immigration, and wouldn’t conduct resettlement work for that. For this situation, responsible liability shall be pursued.

Xiuwen County Government Nov. 16, 2009

59 Appendix 3 Letter of Commitment of the Xiuwen County Government on Minerals and Special Facilities Affected by the Subproject

60

61 Xiuwen County Government

Commitment Letter for make compensation to Jinlong Reservoir subproject covers Minerial resources and inundates above-ground Structure (abandoned factory, Brick kiln and slag dam)

Guiyang Development and Reform Commission and Water Resources Bureau, Jinlong Reservoir is the project that plan to conduct construction by use ADB loans. It is a comprehensive project, and the main functions of the reservoir are county water supply and irrigation, it also has the function for drinking in rural area. For Jinlong Reservoir, designed normal storage level is 1314m, storage capacity is 4,180,000m³, dam height is 52.3m, irrigation water supply is 2,150,000 m³/y, county water supply is 2,860,000 m³/y, and drinking water supply for rural area is 126,000 m³/y. It is a small (I) sized reservoir and the total investment is CNY 81.5 million. According to checking requirements from National Land Resources Department and Guizhou Provincial Land Resources Department and relevant provisions in issued by Guizhou Land Resources Department (Qian Land Resources issued [2002] No.128); (Qian Government [2012] No.2); (Zhu Resettlement [2010] No.63), covered mineral resources and above-ground structure would be inundated by Jinlong Reservoir are: 1. Project area will overlap with a part of mineral area which belongs to First Aluminum ore of Guizhou Branch Company of Aluminum Corporation of China Limited. The approval for the results of mineral resources might be covered by Jinlong Reservoir Construction area which evaluated by Guizhou Land Resources Department shall prevail. 2. Project area will overlap with the edges of “Huafei Xiaoshan bauxite” of Guizhou Huafei Chemical Industrial Limited Company. The approval for the results of mineral resources might be covered by Jinlong Reservoir

62 Construction area which evaluated by Guizhou Land Resources Department shall prevail. 3. Reservoir will inundate an abandoned factory (brick structure) of Hongfa Refractory Plant for 2380.71 ㎡, including two scrap brick kilns. 4. Reservoir will inundate an abandoned factory (brick structure) of Wuhong Mineral Management Office for 59.46 ㎡. 5. Reservoir will inundate a slag dam of First Aluminum ore of Guizhou Branch Company of Aluminum Corporation of China Limited. According to Municipal Government’s requirements for promote preliminary work of reservoir construction, in order to promote preliminary work of Jinlong Reservoir, after negotiated with Guizhou Branch Company of Aluminum Corporation of China Limited, Huafei, Hongfa Refractory Plant and Wuhong Mineral Management Office, for compensation covered mineral resources and inundates above-ground structure (abandoned factory, Brick kiln and slag dam), county government will solve it according to relevant regulations.

Xiuwen County Government Sep. 6, 2011

63 Appendix 4 Letter of Commitment of the Xiuwen County Government on Land in Dispute in the Subproject

64

Xiuwen County Government

Commitment Letter for controversial land between Guizhou Branch Company of Aluminum Corporation of China Limited and

65 Sixth Group of Xiaoshan Village and with Jinlong Reservoir Project

Guiyang Development and Reform Commission and Water Resources Bureau, Jinlong Reservoir is the project that plan to conduct construction by use ADB loans. It is a comprehensive project, and the main functions of the reservoir are county water supply and irrigation, it also has the function for drinking in rural area. For Jinlong Reservoir, designed normal storage level is 1314m, storage capacity is 4,180,000m³, dam height is 52.3m, irrigation water supply is 2,150,000 m³/y, county water supply is 2,860,000 m³/y, and drinking water supply for rural area is 126,000 m³/y. It is a small (I) sized reservoir and the total investment is CNY 81.5 million. According to the provisions in (Qian Government issued [2010] No.12) and (Zhu Resettlement [2010] No.63), 4.81 mu cultivated land in reservoir inundation area is controversial, the parties to the dispute are Guizhou Branch Company of Aluminum Corporation of China Limited and sixth Group of Xiaoshan Village in Longshan Town in Xiuwen County. According to the investigation by Land Resources Management Bureau, the cultivated land for 4.81 mu is within the scope of mineral area of Guizhou Branch Company of Aluminum Corporation of China Limited and they has land using certificate issued by Land Resources Department as basis. So far Xiaoshan Village couldn’t provide any evidences for land using. The controversial cultivated land for 4.81 mu is belongs to Guizhou Aluminium Factory Estate Management Office of Guizhou Branch Company of Aluminum Corporation of China Limited. If appear any controversy during construction, County Government will solve it according to relevant regulations. Xiuwen County Government Sep. 19, 2011

66 Appendix 5 Terms of Reference for External Monitoring

A Purpose of resettlement M&E According to ADB’s policy on resettlement, the resettlement work of the Subproject will be subject to external M&E by examining the progress, funding and management of land acquisition, house demolition and resettlement, and analyzing and comparing the production level and living standard of the APs. While submitting reports to ADB, the Guiyang PMO and competent authorities regularly (twice a year during the resettlement period), the external monitoring agency will provide information and advice as a reference for decision-making. External M&E will enable the World Bank and competent authorities to well understand whether land acquisition and resettlement work is conducted on schedule and as expected, point out issues and provide advice for improvement.

B Scope of resettlement M&E (1) M&E of progress of land acquisition and house demolition  Including: progress of land acquisition; progress of temporary land use; (2) M&E of fund availability and use  Including: fund availability; fund use (planned vs. actual) (3) M&E of standard of living of APs  Including: production level and standard of living before relocation; production level and standard of living after relocation; comparative analysis and evaluation of production levels and standards of living before and after relocation (4) Capacity evaluation of the implementing agencies, public participation and grievance redress.

C Technical route The technical route of external M&E is shown in Figure 1.

67 Project setup

Preparing M&E terms of f

Preparing survey outline, questionnaire and typical household record card

Design of sampling plan

Baseline survey

Establishing M&E ti f ti

Monitoring & survey

Regional Monitoring Monitoring of Monitoring socioeconomic survey by IAs affected teams of AHs

Compiling monitoring data and establishing a database

Comparative analysis

Preparing M&E report

No Is resettlement monitoring completed?

End

Figure 1 Technical Route of External Monitoring

D External monitoring agency The external resettlement M&E work of the Subproject will be undertaken by an external monitoring agency appointed by the Guiyang PMO and accepted by ADB.

E Organization and division of labor of resettlement M&E  The Guiyang PMO will appoint an external agency to conduct M&E survey, data collection, computational analysis and result examination.  The external monitoring agency will organize the “resettlement M&E team of

68 the Subproject”, whose tasks include conducting resettlement M&E, preparing M&E terms of reference, setting up monitoring sites, conducting field survey and internal analysis, and preparing resettlement M&E reports according to ADB’s policy on involuntary resettlement.  The Guiyang PMO will assist the resettlement M&E team in the field survey in terms of staff and traffic.  F Mode of resettlement M&E  M&E will be conducted through a combination of field survey, computational analysis and overall expert evaluation.  The progress, funding, organization and management of resettlement will be surveyed comprehensively. Displaced households will be subject to a sampling survey.  The sampling survey will be conducted using the classified random sampling method. Typical sample displaced households will be followed up. (Sample size: 50% of the AHs; to be sampled randomly)  The comprehensive survey will be conducted by means of questionnaire survey, focus group discussion and literature review, etc.  In addition to written materials, photos, audio and video records, and real objects will also be collected.

G External resettlement M&E reporting

Report Date 1 Baseline survey report Dec. 2013 2 Monitoring report (No.1) Dec. 2013 3 Evaluation report (No.1) Dec. 2013 4 Monitoring report (No.2) Jun. 2014 5 Evaluation report (No.2) Jun. 2014 6 Post-evaluation report Jun. 2015

69 Appendix 6 Minutes of Public Participation Meetings

Time April 5, 2006 Venue Xinchun Primary School Longchang Town, Xiuwen County 20 representatives from the county ethnic and religious affairs bureau, disease control center, health bureau, finance bureau, environmental protection bureau, Representatives statistics bureau, agriculture bureau, forestry and landscaping bureau, of agencies construction bureau, development and reform bureau, women’s federation, concerned Longchang Town and Xiuwen County Governments, XCWRB, Longchang Town Water Resources Station, Longchang Town and Xiuwen County Central Primary School, including 12 men and 6 women Representatives 48 representatives of villagers of Xinzhai, XInchun, Chengnan and Jianxin villages Villages, including one of ethnic minority and 10 women Bryan, Zhou Shan, Yin Jianjun, Xu Yingxin, Jiang Gongliang, Nie Danping, Luo PPTA staff Zheng All participants support the construction the Jinlong Reservoir. The temporary occupation of cultivated land and woodland during construction should be Opinions on minimized, and the temporarily occupied land should be compensated for and land acquisition restored after construction. The permanently occupied land should be and compensated for according to the applicable state policies. Priority in resettlement employment should be given to the AHs after the completion of the reservoir. The AHs should be consulted on land acquisition and compensation. Those suffering from losses during construction should be compensated properly.

Time May 29, 2006 Venue A villager’s home in Xinzhai Village, Longchang Town, Xiuwen County Representatives 20 representatives from the county County environmental protection bureau, of agencies women’s federation, XCWRB, Longchang Town Water Resources Station, concerned Longchang Town Agricultural Service Center, including 16 women PPTA staff Xu Yingxin, Luo Zheng, Nie Danping PMO Kong Lingkun All participants support the Subproject, and think that land acquisition has Opinions on almost no impact. Land acquisition should comply with the applicable state land acquisition policies. Compensation for land contracted by households should be paid to and these households, and that for collective land paid to the collective for use on resettlement local facility construction subject to public discussion.

Time May 6, 2013 Venue Xiuwen County Government a public hearings were held for Jinlong Reservoir, related departments, such as Forestry Bureau, Agriculture Bureau, Water Conservancy Content Bureau, etc. and more than 50 citizens or villagers participated the hearing

70