46050-002: Hubei Huanggang Urban Environment Improvement Project

Social Monitoring Report

#7 Semiannual Report January 2020

People's Republic of China: Hubei Huanggang Urban Environment Improvement Project

Prepared by National Research Center for Resettlement, Hohai University for the People's Republic of China and the Asian Development Bank.

CURRENCY EQUIVALENTS (as of 15 December 2019)

Currency unit – yuan (CNY)} CNY1.00 = $0.1447 $1.00 = CNY6.9109

ABBREVIATIONS ADB – Asian Development Bank AH – affected household AP – affected person FGD – focus group discussion GAP – gender action plan HD – house demolition HMG – Huanggang Municipal Government HPMO – Huanggang Project Management Office HUCIC – Huanggang Urban Construction Investment Co. Ltd. IA – implementing agency LA – land acquisition M&E – monitoring and evaluation NED – New Eastern District NRCR – National Research Center for Resettlement PIC – project implementation consulting PPMS – project performance management system RP – resettlement plan SAP – social action plan

WEIGHTS AND MEASURES 1 hectare – 15 mu

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

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

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

ADB-financed Huanggang Integrated Urban Environment Improvement Project

External Resettlement and Social Monitoring and Evaluation Report

(No.7)

National Research Center for Resettlement January 2020

M&E agency National Research Center for Resettlement, Hohai University (NRCR)

Project leader Chen Shaojun

Prepared by Zhao Yaoyang, Shi Lei, Cao Xiuling, Zhang Yu, Chen Shaojun

Address Hohai University, no.8 Focheng West Road, Jiangning District, Nanjing, Jiangsu

Postcode 210098

Tel 15366141153

Fax 025-83718914

E-mail [email protected]

Contents 1 Summary ...... 1 1.1 Project Introduction ...... 1 1.2 Overview of the RP ...... 2 1.3 External Resettlement M&E ...... 3 1.3.1 Scope ...... 3 1.3.2 Key Points ...... 4 1.3.3 Procedure ...... 4 1.3.4 Methods ...... 4 2 Organizational Structure ...... 5 2.1 Agencies ...... 5 2.2 Capacity ...... 5 2.3 Evaluation and Suggestions ...... 6 2.3.1 Evaluation ...... 6 2.3.2 Suggestions: ...... 7 3 Resettlement Implementation M&E ...... 8 3.1 Land Approval Progress ...... 8 3.2 Construction Progress ...... 8 3.3 Change of Resettlement Impacts ...... 10 3.4 Resettlement Progress ...... 11 3.4.1 LA ...... 11 3.4.2 Demolition of Residential Houses ...... 12 3.4.3 Demolition of Non-residential Properties ...... 12 3.4.4 Attachments ...... 13 3.5 Fund Disbursement ...... 13 3.5.1 LA ...... 13 3.5.2 HD ...... 14 3.5.3 Fund Disbursement Process ...... 14 3.6 Resettlement Policies and Rates ...... 14 3.6.1 LA ...... 14 3.6.2 HD ...... 15 3.6.3 Young Crops and Attachments...... 15 3.6.4 Tax Rates ...... 15 3.7 Evaluation and Suggestions ...... 15 3.7.1 Evaluation ...... 15 3.7.2 Suggestions ...... 16 4 Livelihood Restoration ...... 17 4.1 Cash Compensation ...... 17 4.2 Social Security ...... 17 4.3 Agricultural Restructuring Measures ...... 17 4.3.1 Crop Cultivation...... 17 4.3.2 Aquaculture ...... 18 4.4 Nonagricultural Employment Measures ...... 18 4.4.1 Commercial Development ...... 18 4.4.2 Off-farm Employment ...... 18 4.4.3 Independent Economic Development ...... 19 4.4.4 Jobs Generated by the Project ...... 20 4.5 Support for Vulnerable Groups ...... 20 4.6 Evaluation and Suggestions ...... 20 4.5.1 Evaluation ...... 20 4.5.2 Suggestion ...... 21 5 Sampling Survey ...... 22 5.1 Survey Information ...... 22 5.2Basic Information ...... 22 5.2.1 Population and age ...... 22 5.2.2 Land contracting ...... 22 5.2.3 Annual income...... 22 5.2.4 Annual expenditure ...... 23 6 Gender and Social Development ...... 24 6.1 GAP Monitoring ...... 24 6.1.1 Urban Lake and River Improvement ...... 24 6.1.2 Resettlement and employment promotion measures ...... 24 6.1.3 FigureSolid Waste Management ...... 25

6.1.4 FigureFigureCapacity Development and Institutional Strengthening ...... 26 6.1.5 M&E ...... 26 6.2 SAP Monitoring ...... 27 6.2.1 Measures to Enhance Project Benefits ...... 27 6.2.2 Measures to Reduce Potential Risks ...... 27 6.2.3 Education on Public Health and AIDS Prevention ...... 28 6.2.4 Public Consultation and Grievance Redress Mechanism ...... 28 6.3 Evaluation and Suggestions ...... 29 7 Public Participation and Grievance Redress ...... 30 7.1 Public Participation ...... 30 7.2 Grievance Redress ...... 30 7.2.1 Procedure ...... 30 7.2.2 Grievances and Appeals ...... 31 7.3 Evaluation and Suggestions ...... 32 7.3.1 Evaluation ...... 32 7.3.2 Suggestions ...... 32 8 Conclusions and Suggestions ...... 34 8.1 Conclusions ...... 34 8.2 Suggestions ...... 35 Appendix 1: LA Compensation Agreements (2019.7-2019.12) ...... 36 Appendix 2: Payment Vouchers (2019.1-2019.6) ...... 38 Appendix 3: SAP and GAP Monitoring Matrix ...... 43

List of Tables Table 1-1 Basic Information of the Project ...... 1 Table 1-2 Summary of New Added Subcomponents...... 2 Table 1-3 Resettlement Impacts of the Project ...... 3 Table 1-4 LA and HD Impacts of the Project ...... 4 Table 2-1 Staffing of Resettlement Agencies ...... 6 Table 2-2 Key Resettlement Officials ...... 6 Table 3-1 Completion of Contracts Involving Resettlement ...... 8 Table 3-2 Change of Resettlement Impacts ...... 11 Table 3-3 LA Progress ...... 11 Table 3-4 Uniform AAOV Rates for LA and Compensation Multiples...... 15 Table 3-5 LA Compensation Correction Factors and Rates ...... 15 Table 3-6 Compensation Rates for Temporary Land Occupation ...... 15 Table 4-1 Insurance of LEFs ...... 17 Table 7-1 Grievance Redress Information ...... 31

List of Figures Figure1-1 Organizational Chart ...... 5 Figure3-1 Fund Disbursement Process ...... 14 Figure4-1 Companies operate in the Dabieshan Financial Center ...... 18 Figure4-2 The fourth-quarter job fair of Huangzhou District ...... 19 Figure4-3 Enterprise-Village Assistance in Nanhu Village ...... 20 Figure4-4 Poverty relief activities in Cigang village...... 20 Figure5-1 Age structure of sample population ...... 22 Figure5-2 Income composition ...... 23 Figure5-3 Expenditure composition ...... 23 Figure6-1 Urban Lake and River Improvement ...... 24 Figure6-2 River Protection Advocacy Letter ...... 24 Figure6-3 Wangjiawan organized volunteers to carry out environmental sanitation renovation ...... 25 Figure6-4 Lukou town government garbage classification point ...... 26 Figure6-5 Female workers in the toilet revolution ...... 26 Figure6-6 Women sorting books for village committee ...... 26 Figure6-7 Consolation to Poor Population in Cigang village ...... 27 Figure6-8 Popularizing Waste Classification Knowledge to APs ...... 28 Figure6-9 Lukou Town "Micro Medical Cloud Patrol Car" Activity ...... 28 Figure7-1 APs of Wangjiawan village relocating to the community ...... 30 Figure7-2 Grievance Redress Mechanism ...... 31

Abbreviations

ADB - Asian Development Bank AH - Affected Household AP - Affected Person FGD - Focus Group Discussion GAP - Gender Action Plan HD - House Demolition HMG - Huanggang Municipal Government HPMO - Huanggang Project Management Office Huanggang Urban Construction Investment HUCIC - Co., Ltd. IA - Implementing Agency LA - Land Acquisition M&E - Monitoring and evaluation NED - New Eastern District NRCR - National Research Center for Resettlement PIC - Project Implementation Consulting PPMS - Project Performance Management System RP - Resettlement Plan SAP - Social Action Plan

Units

Currency unit = Yuan (CNY) USD1.00 = CNY7 1 hectare = 15 mu

1 Summary 1.1 Project Introduction In order to protect and improve the urban environment, the Huanggang Municipal Government (HMG) has applied for a loan of $100 million with the Asian Development Bank (ADB) for the Huanggang Integrated Urban Environment Improvement Project (hereinafter, the “Project”). The gross investment in the Project is $252.6 million. The Project consists of the Urban Lake and River Improvement, Solid Waste Collection and Transfer System, and Capacity Development and Institutional Strengthening components. See Table 1-1. HMG is executing agency of the Project, and Huanggang Urban Construction Investment Co., Ltd. (HUCIC) is the implementing agency (IA). The Project has a construction period of 4 years, breaking ground in June 2016, and is expected to be completed in December 2019. In order to build the area around Baitan Lake into a demonstration area of urban-lake symbiosis and ecological livable, medium-term adjustment was made in the first half of 2018, and 8 new subcomponents were added. The planned construction period of the Project is from 2018 to 2019. See Table 1-2 for the new subcomponents.

Table 1-1 Basic Information of the Project Resettlement No. Component Scope of construction impacts 1) Dredging 539,405 m3 of bottom sludge Sludge dredging Involving for Baitan and Chiye Lakes, and rebuilding of Baitan and resettlement, natural water circulation; Chiye Lakes, completed 2) Constructing 14km ecological and ecological before the embankment, including 89ha vegetation embankment Project buffer, and 2.8km embankment Natural wetland Involving LA reinforcement for Baitan and Chiye Lakes; and HD 3) Constructing 80ha natural wetlands Artificial Within the lake a. Lake beside Chiye Lake and Chushui River; wetlands and area, involving Improvement 4) Constructing 4 natural wetlands totaling settling tanks no 3.8ha, and 4 settling tanks totaling 1.525ha resettlement beside Baitan and Chiye Lakes; Round-the-lake Involving LA 5) Constructing 13.3km non-motor vehicle road and green and HD lanes beside Baitan Lake; belts 6) Constructing two sluices on the Linglong Equipment Involving no Urban Lake and Jinshui Rivers; procurement resettlement 1 and River 7) Purchasing waste collection and water Improvement quality monitoring equipment 1) Dredging 201,000 m3 of bottom sludge Reconstruction Involving LA and excavating 343000 m3 of bank soil for of Linglong, 4 rivers, broadening 7 rivers, and Jinshui, rebuilding natural water circulation Dongqin, between lakes and rivers; Qingshui, 2) Constructing 21.6km ecological Canglang, embankment, 42.6ha vegetation buffer, Dongchang and b. River and 17.7ha aquatic vegetation, and Chushui Rivers, Improvement reinforcing 2.5km embankment for 7 rivers; and canal 3) Constructing and upgrading two sluices landscaping on the Linglong and Jinshui Rivers; Regulating Included in the 4) Constructing 3 pedestrian bridges on sluices: already the Jinshui and Chushui Rivers Linglong River, acquired land and the junction between Jinshui

Resettlement No. Component Scope of construction impacts and Santai Rivers 1) Constructing 30t/d waste transfer stations; Included in the 2) Purchasing vehicles to collect, transfer and compress land already Solid Waste Collection and solid waste, and 260 recycling dustbins; acquired for 2 Transfer System 3) Solid waste separation trial based on community Urban Lake participation and River Improvement 1) Providing management support for successful and timely Not involving project implementation in accordance with ADB procedures LA and guidelines 2) Providing enhanced institutional support to improve sectoral and operational performance, including sustainable development strategy, transition of economically and socially integrated rural areas to urban areas, and occupational Capacity Development and training support; solid waste management strategic planning, 3 Institutional Strengthening integrated urban environmental management planning, operator capacity enhancement; and other technical support, to be reflected in the Draft Final Report (DFR) 3) Publicity activities on lake ecosystem, environmental protection, public health, and solid waste separation and recycling 4) Technical support for resettlement and external environmental monitoring

Table 1-2 Summary of New Added Subcomponents No. Subcomponent Scope and scale Dongtai and Dongchang River Junction between Dongchang River, Dongtai River and Nanhu 1 junction opening Avenue Qingshui River east extension and Dongchang Avenue to Jiangbei first class highway section, Shugong River L=750m 2 Qingshui River east extension to Chushui River section, New construction of Shugong River L=1653m 3 New construction of Yangbo Road Chibi Avenue-Hubin Avenue, L=2125.8m, B=8m Waterfront recreation area 4 8,000m2 artificial wetland Artificial wetlands Waterfront recreation area, 5000m3 storage tank 5 Rainwater storage tank City image area, 10000m3 storage tank 6 Wuqi Port Section in Huanggang Polytechnic School, L=1880m Nanhu pumping station water intake Water intake channel, L=305m 7 channel and sluice construction Channel and sluice, Q=30m3/s 8 Changhe regulating sluice Q=85.7m3/s

1.2 Overview of the RP According to the RP updated in May 2016, LA for the Project affects Groups 4 and 5, and Zhaizhoujie Community, Nanhu Farm; Lukou, Wangjiawan, Baizhangzui and Cigang Villages, Lukou Town; and Baitan Lake Fish Farm in Huangzhou District. 1) 8,687.2 mu of state-owned land will be occupied for the Project, including 162.6 mu of non-irrigated land (1.9%), 2,494.5 mu of state-owned fishpond (28.7%), 1.7 mu of garden land (0.02%), 141.5 mu of construction land (1.63%), and 5,886.7 mu of water surface (67.8%), affecting 187 households with 727 persons; 2) 798.6 mu of collective land will be acquired for the Project, including 120.3 mu of irrigated land (15.06%), 188.2 mu of non-irrigated land (23.56%), 418.2 mu of fishpond (52.36%), 39 mu of

woodland (4.88%), and 33 mu of construction land (4.13%), affecting 130 households with 444 persons; 3) 77.5 mu of collective land will be occupied temporarily for the Project, including 57.9 mu in Cigang Village and 19.6 mu in Baizhangzui Village, affecting 42 households with 184 persons. As of May 2016 when the RP was last updated, LA compensation for Baitan Lake Fish Farm had been completed (see the Resettlement Due Diligence Report). Although LA has occurred in other areas, such land is so-called pre-reserved land without being approved by the land and resources authority. In addition, a 900m long, 6m wide new non-motor vehicle lane was added at the preliminary design stage as compared to the FSR, to occupy 8.1 mu of land in Baitan Lake Fish Farm. This land had been acquired before project commencement, affecting no one. The Project’s HD impacts are as follows: Properties of 6,018.15 m2 will be demolished for the Project, including residential houses of 5,366.78 m2 (4,402.1 m2 in masonry concrete structure and 964.68 m2 in masonry timber structure), attachments of 651.42 m2, affecting 23 households with 115 persons; and non-residential properties of 11,038 m2, including 8,974 m2 in frame structure (81.3%), 2,026 m2 in masonry concrete structure (18.35%) and 38 m2 in masonry timber structure (0.34%), affecting two entities with 5 persons. The Project will also affect some ground attachments, including toilets, wells, canals, roads and trees. See Table 1-3.

Table 1-3 Resettlement Impacts of the Project District Huangzhou Baitan Lake Nanhu Lukou Total Village/community Fish Farm Farm Town Group 0 3 5 8 Permanent LA (mu) 7914.5 772.7 798.6 9485.8 Temporary land occupation (mu) 0 0 74.46 74.46 Residential houses 0 0 6,018.15 6108.15 HD (m2) Non-residential properties 10573 0 465 2894.41 Ground attachments (m2) 0 2408 8866 11274 Households affected by LA only 0 216 120 336 Population affected by LA only 0 869 371 1240 Permanently Households affected by both LA and HD 0 0 23 23 affected Population affected by both LA and HD 0 0 115 115 population Public institutions 0 0 2 2 Population 0 0 5 5 Subtotal 0 869 491 1360 Temporarily HHs 0 0 7 7 affected Population 0 0 28 28 population Data source: updated RP in 2016

1.3 External Resettlement M&E 1.3.1 Scope According to the updated RP, LA for the Project affects Groups 4 and 5, and Zhaizhoujie Community, Nanhu Farm; Lukou, Wangjiawan, Baizhangzui and Cigang Villages, Lukou Town; and Baitan Lake Fish Farm in Huangzhou District. Nanhu Farm was restructured in 2015, but the administrative divisions described in the RP are still used here for the sake of convenience. According to this survey, it is found that Groups 4, 5 and 6 no longer exist after restructuring. Group 4 is currently affiliated to Xinnong Community, Group 5 to Jiezhou Street Community, and Group 6 to Chengdong Community. For the convenience of description, this report is still described in terms of Groups 4, 5 and 6. See Table 1-4. 3

Table 1-4 LA and HD Impacts of the Project No. District Township Village Village groups Remarks 1 Baizhangzui Village 4, 5 2 Cigang Village 12 3 Lukou Village 10, 15, 16, 17 4 Wangjiawan Village 1, 2, 3, 6, 7 Xiahu Fish Farm Affiliated directly to Lukou Town Lukou Town Xiejiaxiaowan Village Huayuan Village 5 Huangz A little part affiliated to Chengdong hou Santaihe Village 1, 3, 5 district, and mostly to High-Tech Development Zone 6 Group 4 7 Group 5 Nanhu Farm State farm Zhaizhoujie 8 Community Baitan Lake Affiliated directly to the district 9 Fish Farm aquatic bureau, state-owned

1.3.2 Key Points The external resettlement M&E task of the Project is undertaken by NRCR. The task force from NRCR is composed of 4 full-time social and resettlement experts. This report is the No.7 external M&E report of the Project, and aims to sum up the resettlement work of the Project as of December 31, 2019, find out issues in resettlement and propose solutions accordingly. This report covers resettlement progress, sampling survey, public participation, institutional arrangements, grievance redress, etc. 1.3.3 Procedure  Preparing the terms of reference of M&E  Designing a sampling plan  Baseline survey  Establishing a M&E information system  Follow-up survey  Compiling and analyzing information  Preparing M&E reports 1.3.4 Methods Literature review: Documents, agreements and reports on LA, HD and resettlement were referred to and verified. Key informant interview: Staff of HPMO, the construction agency and Lukou Town, heads of Baizhangzui, Lukou, Wangjiawan and Huayuan Villages, and Nanhu Farm Sub-district Office, and some APs were interviewed to collect resettlement information, and comments and suggestions on resettlement implementation.

1.4 Action taken on recommendations/ suggestions in the Sixth EM report.

2 Organizational Structure 2.1 Agencies In order to implement the RP properly, HMG has established the Huanggang Project Leading Group to lead the decision-making and construction of the Project, and make overall coordination. HUCIC is responsible for raising and disbursing resettlement funds, and applying for relevant licenses with the competent authorities. Other agencies involved in the Project include the NED Construction Headquarters, HPMO, Resettlement Office, Huangzhou District Labor and Social Security Bureau, Nanhu Farm, Lukou Town Government, design agency, external M&E agency, etc. In addition, since resettlement is a very comprehensive task that requires the assistance and cooperation of different departments, the transport, land and resources, finance, and other departments will participate in and support resettlement implementation. Each affected town or village has 1-2 chief leaders responsible for resettlement. See Figure 2-1.

Figure1-1 Organizational Chart

2.2 Capacity In order to ensure the successful implementation of resettlement, all resettlement agencies of the Project have been provided with full-time staff, and a smooth channel of communication has been established. See Tables 2-1 and 2-2. All resettlement agencies have been provided basic office, transport and communication equipment, including desks and chairs, PCs, printers, telephones, facsimile machines and vehicles. In August 2017, HPMO engaged Hubei Chuyuan Engineering Construction Consulting Co., Ltd. to take charge of construction and resettlement management. The resettlement staff has been trained many times since the beginning of project implementation. On August 18 and 19, 2016, the staff of HPMO went to Yichang City, Hubei Province for study and investigation. They visited the site of the ADB-financed Yichang Project, listened to the introduction of the Yichang Project, and deeply exchanged experience in

resettlement, finance and project management and land approval with the Yichang PMO. In November 2018, HPMO offered training on ADB safeguard policies. In July 2019, the resettlement and gender experts of the ADB inspection mission trained the staff of HPMO, the IAs and the construction agency on resettlement, social and gender actions, etc. In early December 2019, the ADB project team reviewed and guided the progress of the project. In the monitoring process, the task force of NRCR also carried out propaganda, explanation and communication of ADB safeguard policies with HPMO. As of December 31, 2019, the project resettlement agency staffing and the main person in charge of resettlement of each unit and its contact information are detailed in Table 2-1 and Table 2-2. Table 2-1 Staffing of Resettlement Agencies Workforce Agency Composition Male Female Huanggang Project Leading Group 3 2 Civil servants HPMO 2 2 Civil servants, technicians Resettlement Office 5 2 Civil servants, technicians Hubei Chuyuan Engineering Construction 4 0 technicians Consulting Co., Ltd. Nanhu Farm 2 1 Civil servants Lukou Town Government 2 1 Civil servants Affected villages and communities 3 3 Officials, AP representatives Design agency 2 1 Engineers, senior engineers External M&E agency 4 2 Resettlement experts, M&E staff

Table 2-2 Key Resettlement Officials No. Agency Name Tel Duan Meisheng 0713-8454760 1 Resettlement Office Li Xiang 0713-8454760 Qiu Hong 0713-8453162 2 NED Construction Headquarters Biao Shandong 0713-8453162 Sun Haibing 0713-8453162 Luo Haifeng 0713-8341068 3 Nanhu Farm Lin Bowen 0713-8341069 Han Youhong 0713-8349160 Sun Chuping 13636029066 4 Nanhu Group 4 Liu Wenbing 13476578539 Zhan Xianglin 13508657660 5 Nanhu Group 5 Yang Zhigang 13986556776 6 Zhaizhoujie Community Liu Qiankun 18995768969 Dong Chengzhi 0713-8453152 7 Lukou Town Yang Lei 0713-8453152 8 Lukou Village Xie Aiwu 13807258836 9 Wangjiawan Village Xia Xiaoming 13477612070 10 Baizhangzui Village Long Feng 13636023995 11 Cigang Village Chen Dajiang 13476679967 12 Xiejiaxiaowan Village Xie Ping’an 18971717599 13 Huayuan Village Tu Zhenghua 13871987078 14 Santaihe Village Head Wang 13995948766 15 Baitan Lake Fish Farm Head Tu 18971715511

2.3 Evaluation and Suggestions 2.3.1 Evaluation 1) The PMO, the construction consulting company, and the IA have incorporated the 6

recommendations in the No.6 external resettlement M&E report and continuously strengthened self-improvement. At present, the number of staff responsible for resettlement in the PMO and construction consulting company has increased, and staff responsible for social and gender actions have been trained to enhance their professionalism and working ability. 2) The PMO has improved the systematic management of resettlement, social and gender development, complaints, public participation, and other archives. It facilitates its work and the implementation of internal and external resettlement monitoring. 2.3.2 Suggestions: 1) Since the land acquisition for this project is nearing completion, the follow-up work mainly focuses on resettlement and livelihood restoration of land-expropriated farmers. HGPMO (construction consulting company) should strengthen monitoring in the areas of livelihood restoration and compensation and resettlement. 2) To carry out the work better, the PMO (construction consulting company) may, according to the project progress, draw up a specific work plan for resettlement and gender action in advance and allocate relevant personnel according to the plan. 3) The PMO (construction consulting company) needs to strengthen its own training further and improve its professional level. At the same time, it should focus on file management and also enhance its systemic management level.

3 Resettlement Implementation M&E Resettlement is scheduled to begin in June 2016 and be completed in June 2018. However, as of the date of this report, resettlement was still underway. 3.1 Land Approval Progress As mentioned in the No.6 M&E report, except that part of the land used for HGH-C1.3 (59.2455 mu in Wangjiawan, Lukou, Baizhangzui and Cigang Villages) was approved by the land and resources authority on January 24, 2018, there had been no progress in land approval as of the date of this report. 3.2 Construction Progress The Project consists of 3 components and 23 contracts, including 16 civil works contracts, in which Urban Lake and River Improvement has 13 contracts, Solid Waste Management 3 contracts; and Capacity Development and Institutional Strengthening 7 contracts. As of the 7th monitoring, the progress of the urban lake and river improvement subproject and the solid waste collection and transfer subproject are as follows: HGH-C1.1 and HGH-C1.10 had been completed and settled. HGH-C1.3, HGH-C1.9, HGH-C1.2 had been completed and is currently undergoing the second review. The civil works of HGH-C1.12 have been completed, and greening work is presently underway. HGH-C1.4, HGH-C1.5, HGH-C1.6, HGH -C1.7, HGH-C1.8, HGQ-C1.11 are currently under construction. HGQ-C1.13, HGG-C2.1, HGG-M2.2, HGG-M2.3 have not been tendered and broken ground. See Table 3-1. Table 3-1 Completion of Contracts Involving Resettlement Progress of Construction Contract Progress of No. Description Bid winner previous period (d) date this period period Component 1: Urban Lake and River Improvement Chiye Lake Hunan Bestall Completed — Jul. 26, HGH-C1.1 dredging 200 Dredging Co., by 100% and 2016 Ltd. accepted Baitan Lake Completed Completed dredging Hunan Bestall on and Nov. 28, HGH-C1.2 300 Dredging Co., 2019.08.30 undergoing 2017 Ltd. the second review Chiye Lake Completed Completed Guizhou ecological by 99% and and Nov. 28, Construction HGH-C1.3 embankment and 300 preparing for undergoing 2017 Engineering reinforcement, and acceptance the second Group associated works review Baitan Lake Completed Completed ecological Pending Hubei Yitong by 10% by 50% HGH-C1.4 embankment and 500 ADB Construction reinforcement, and approval Co., Ltd. associated works 89ha green buffer Henan Deguan Not started Just started HGH-C1.5 belt (north 30ha) 360 2019.04.15 Landscaping construction Co., Ltd. 89ha green buffer JV of Shenzhen Not started Completed belt (south/east Gao Ecological by 10% HGH-C1.6 540 2019.05.15 59ha) Landscape Co., Ltd. and

Progress of Construction Contract Progress of No. Description Bid winner previous period (d) date this period period Shenzhen Guoyi Garden Construction Co., Ltd. 80ha of natural JV of Jiangxi Not started Completed wetlands, 4 Kosen EnTech by 10% artificial wetlands Co., Ltd., Shandong Academy of HGH-C1.7 720 2019.7.31 Environmental Sciences and Jiangda Ecological Technology Co., Ltd. Waterweed Construction Completed JV of Zhejiang planting, started on Apr by 50% Environmental ecological fishery 15, 2019 Engineering Co., HGH-C1.8 and bottom fauna 540 2019.03.15 Ltd. and Beijing rehabilitation of I&Earth Ecology Baitan and Chiye Co., Ltd. Lakes Integrated 95% Completed management of completed and the Linglong and Hunan Bestall and expected undergoing Mar. 6, HGQ-C1.9 Jinshui Rivers 300 Dredging Co., to be the second 2017 (civil works, Ltd. completed on review including January 15, regulating sluices) 2020. Integrated 85% Completed management of completed Jiangsu Huaiyin the Qingshui, and expected Aug. 25, Water HGQ-C1.10 Canglang, 300 to be 2017 Conservancy Dongqin and completed on Co., Ltd. Dongchang Rivers July 30, 2020 (civil works) Integrated canal Expected to 30% management of be completed completed the Linglong, on and Jinshui, Qingshui, 2020.07.30 expected to Canglang, be HGQ-C1.11 360 - Bid not opened Dongqin, completed Dongchang Rivers on (landscaping and 2020.07.30 waterweed planting) Integrated Completed Civil works management of by 75% have been Jiangxi the Chushui River completed, Sep. 15, Chengyuan HGQ-C1.12 360 and 2017 Construction greening Co., Ltd. works have just begun Lake and river Not started No tenders HGH-C1.13 management – 480 2019.02.18 and not electric installation started

Progress of Construction Contract Progress of No. Description Bid winner previous period (d) date this period period Component 2: Solid Waste Collection and Transfer System Solid waste Not started Not started collection and HGG-C2.1 transfer system 180 - 2019.07.22 (30t/d transfer station and jetty) Public awareness Not started Not started campaigns and HTA2.1 education for solid 450 - Bid not opened waste management Solid waste Not started Not started collection and Expected to be HGG-M2.2 transfer vehicle 180 - signed on and rubbish 2019.08.31 collection boats Component 3: Capacity Development and Institutional Strengthening Project Easen HTA 3.1 implementation - - International consulting External HTA 3.2 resettlement - - NRCR monitoring External China EPE environmental (Beijing) Int’l HTA 3.3 - - monitoring Consulting Co., Ltd. Water quality model and Xingfu Port water HTA 3.4 - - Bid not opened pollution management system Initial implementation HTA 3.5 support (financial - - Cao Yongqiang management and procurement) Initial implementation HTA 3.6 support - - Gao Wenzhong (engineering design review) Initial implementation HTA 3.7 - - He Zhiyang support (RP review)

3.3 Change of Resettlement Impacts By the date of this report, HGH-C1.1, HGH-C1.2, HGH-C1.3, HGH-C1.4, HGH-C1.5, HGH-C1.6, HGH-C1.7, HGH-C1.9, HGH-C1.10, HGH-C1.11 and HGH-C1.12 have been surveyed and delimited. The data of HGH-C1.2, HGH-C1.4, HGH-C1.5, HGH-C1.6 and HGH-C1.7 was in the same report and could not be split. HGH-C1.8 does not involve LA; the HGH-C1.10 and HGH-C1.11

have been surveyed and delimited in the second half of 2019, but the data have not been collated. Detail see Table 3-2.

Table 3-2 Change of Resettlement Impacts Updated RP Actual Difference Contract Collective State owned Collective State owned Collective State owned land land land land land land HGH-C1.1 Temporary land 74.5 0 0 168.11 -74.5 168.11 occupation HGH-C1.2, 1.3, 1.4, 679.2 2496.1 1205.73 1664.61 526.53 -831.49 1.5, 1.6, 1.7 HGH-C1.8 Involving no LA HGH-C1.9 119.4 102.8 367.093 63.96 247.693 -38.84 HGH-C1.10 0 200.4 Have surveyed and delimited HGH-C1.11 0 610.9 Have surveyed and delimited HGH-C1.12 0 241.5 0.4 258.8 0.4 17.3 Total 873.1 3651.7 1573.223 2155.48 700.123 -684.92

3.4 Resettlement Progress 3.4.1 LA Baizhangzui, Cigang, Lukou, Wangjiawan, Huayuan and Xiejiaxiaowan Villages, and Xiahu Fish Farm in Lukou Town, and Santaihe Village in the High-Tech Development Zone will be affected by LA; Groups 4, 5 and 6 of Nanhu Farm, and Baitan Lake Fish Farm will be affected by the occupation of state-owned land. As of December 31, 2019, all land acquisition contracts involving Baizhangzui Village, Cigang Village, and Wangjiawan Village have been signed, see Annex 1. It should be noted here that the land acquisition area of Baizhangzui Village involves HGH-C1.3, 1.4, 1.5; the land acquisition area of Cigang Village involves HGH-C1.1, 1.3, 1.12; The land acquisition area of Wangjiawan Village involves HGH-C1.4, 1.6, 1.7, 1.9, 1.11. As of this monitoring, the land acquisition progress of this project is shown in Table 3-3.

Table 3-3 LA Progress As of December 2019 Last report This report Contract LA compensation LA progress LA compensation agreements LA progress agreements Completed, 168.11mu None The land has been Land acquisition HGH-C1.1 of land temporarily acquired contract has been occupied (100%) signed 190.1 mu of collective Agreements signed, including The land of Baizhangzui land acquired and pre-reservation agreements HGH-C1.3 has Village and Cigang 147.53 mu of state for 129.80 mu (see the No.2 been acquired, and Village of HGH-C1.3, owned land occupied, M&E report). part land of HGH-C1.3 have 1.4 (part) 100% completed HGH-C1.4 has not signed land acquired (involving acquisition 800 mu fish pond contracts in Baitanhu fishery)

Last report This report Contract LA compensation LA progress LA compensation agreements LA progress agreements 1,015.64 mu of LA agreements with The lands of Baizhangzui Village collective land and Baizhangzui, Cigang and HGH-C1.2、1.5、1.6、 of HGH-C1.5, and HGH-C1.2, 1,517.08 mu of state Lukou villages and Xiahu Farm 1.7 have been Wangjiawan village 1.4 (part), owned land allocated signed for 868.803 mu of acquired, and part of HGH-C1.6、1.4、 1.5, 1.6, 1.7 (100%) collective land (see Appendix land of HGH-C1.4 1.7 have signed land 3), others not signed has not acquired acquisition contracts HGH-C1.8 None - It has acquired All agreements signed except The land has been Wangjiawan village 431.043 mu of for Baitan Lake Farm and acquired of HGH-C1.9 has collective land (100%) Santaihe village (See signed land HGH-C1.9 Appendix 4), including acquisition contract pre-reservation agreements for 193.43 mu LA progressing with Agreements partly not signed, 90% of the land — construction, compensation not paid has been acquired, completed by 100% to and only the land date involved in a HGH-C1.10 substation in the Zhuzhoujie community of Nanhu Farm has not been acquired None Agreements partly not signed, All land has been The Wangjiawan compensation for Wangjiawan acquired village involved in HGH-C1.11 Village paid the bid has signed a land acquisition contract LA progressing with Agreements partly not signed, All land has been The Cigang village construction, civil compensation not paid acquired involved in the bid HGH-C1.12 works completed has signed a land 100% acquisition contract

3.4.2 Demolition of Residential Houses According to the RP, properties of 6,018.15 m2 will be demolished for the Project, including residential houses of 5,366.78 m2 (all in Group 4 of Baizhangzui Village, Lukou Town, 4,402.1 m2 in masonry concrete structure and 964.68 m2 in masonry timber structure), attachments of 651.42 m2, affecting 23 households with 115 persons, which are also affected by LA. As of the date of this report, HD had not begun in Baizhangzui Village. The reason why the HD has not been carried out is still the resettlement site mentioned in the previous monitoring reports. The houses completed indoor evaluation in April 2019, and outdoor evaluation has not yet been conducted. At present, the PMO and Lukou Town government are consulting with the affected households on the relocation site. Wangjiawan village and Lukou village have expressed their willingness to accept 23 households of Baizhangzui village. The PMO has promised to complete the resettlement work by the end of June 2020. 3.4.3 Demolition of Non-residential Properties The non-residential properties to be demolished for the Project are the Shanhu breeding base and Baitan Lake Hotel. As of the date of the No.6 report, the Shanhu breeding base had been demolished, and the compensation assessed by Zhonglian Asset Appraisal Company was 5.78

million yuan, in which 5.6 million yuan was paid in August 2018, and the balance had not been paid by the date of this report. The other non-residential house involved in this project is the Baitan Lake Hotel. As of this monitoring period, there is no information on the progress of the demolition of the Baitan Lake Hotel. 3.4.4 Attachments It was mentioned in the No.6 report that the ground attachments of Huayuan and Xiejiaxiaowan Villages, and 29 fish farm contractors in Baitan Lake Fish Farm, and the ground attachments in Wangjiawan Village (LA for Baitan Lake ecological embankment), Baitan Lake Fish Farm (integrated management of the Jinshui River), Cigang Village (LA for Chiye Lake ecological embankment and integrated management of the Chushui River) and Nanhu Farm (involving Dongchang, Dongtai, Qingshui, Canglang and Chushui Rivers) had been counted and appraised. As of this report, except for the 800 mu of fish ponds involved in HGH-C1.4 Baitan Lake fishing grounds and the ground attachments involved in a substation in the Zhazhou Street Community of Nanhu Farm of HGH-C1.10, the remaining land to be acquired has been assessed. 3.5 Fund Disbursement 3.5.1 LA In this round of M&E, the disbursement of LA and ground attachment compensation was accelerated significantly, with 20,763,837.37 yuan disbursed in the second half of 2019, as detailed below: On August 28, 2019, 2481211yuan, accounting for 37% of the total assessed amount for the ground facilities, equipment, and structures (buildings) of the acquired land, was paid for Baizhangzui Village, Lukou Town. On August 29, 2019, the earthwork compensation of 15,220 yuan for Santaihe village (Involved in the comprehensive improvement of afforestation and aquatic plants in Linglong Bay, Jinshui River, Qingshui River, Canglang River, Dongtai River and Dongchang River, namely HGQ-C1.11); the earthwork compensation of 13,611 yuan for Group 5, Nanhu Farm (Involved in the comprehensive improvement of afforestation and aquatic plants in Linglong Bay, Jinshui River, Qingshui River, Canglang River, Dongtai River and Dongchang River, namely HGQ-C1.11); the earthwork compensation of 83,193 yuan for Baitan Lake fishery (Involved in the comprehensive improvement of afforestation and aquatic plants in Linglong Bay, Jinshui River, Qingshui River, Canglang River, Dongtai River and Dongchang River, namely HGQ-C1.11); On September 4, 2019, 503,600 yuan, accounting for 33% of the ground attachment, such as the facilities and equipment of the aquatic product processing plant, was paid to Baitan Lake Fishery. On September 29, 2019, a total of 4,000,000 yuan for surface compensation (including the dredging of Chiye Lake, Chushui River, Dongchang River, Dongtai River, Jinshui River, Huanbaitan Lake, and 89 hectares of artificial wetland projects) and coordination fees was paid for the Baitan Lake fishery. On October 17, 2019, 1,458,240.3 yuan, accounting for 40% of 95.28 mu land compensation, was paid to Cigang village, Lukou Town.

On October 18, 2019, 8,376,961.32 yuan, accounting for 40% of 593.9625 mu land compensation, was paid to Baizhangzui village, Lukou Town. On October 18, 2019, 3,831,800.75 yuan, accounting for 70% of148.9845 mu land compensation, was paid to Wangjiawan village, Lukou Town. 3.5.2 HD As of the date of this report, HD in Baizhangzui Village had not begun. However, the PMO has promised to complete the demolition and relocation by the end of June 2020. The Shanhu breeding base had been demolished, and the compensation was 5.78 million yuan, in which 5.6 million yuan was paid in August 2018. No further payment was found in this round of M&E. 3.5.3 Fund Disbursement Process Resettlement funds will be disbursed as follows: All costs related to LA will be included in the general budget of the Project. HPMO will disburse compensation fees based on the compensation rates directly to the functional departments of the district government via a special account, for further payment to the villages/communities for distribution. Land compensation fees, resettlement subsidies and young crop compensation fees will be paid before LA. See Figure 3-2.

Figure3-1 Fund Disbursement Process

3.6 Resettlement Policies and Rates 3.6.1 LA As of December 31, 2018, all LA compensation rates had been consistent with those specified in the RP. 1) LA compensation rates The LA compensation rates of the Project have been fixed in accordance with the Notice of the Hubei Provincial Government on Publishing Uniform AAOV Rates and Location-based Land Prices for Land Acquisition of Hubei Province (HPG [2014] No.12), and the HD, Resettlement and Compensation Program for NED (NEDO [2012] No.9) (see Tables 3-4 and 3-5). Compensation for 14

temporary land occupation will be based on the actual period of occupation (see Table 3-6).

Table 3-4 Uniform AAOV Rates for LA and Compensation Multiples Where Compensation rate Uniform Land Resettlement for young crops Rate Township AAOV Multiple compensation subsidy (yuan/mu) (yuan/mu) (yuan/mu) Rate Rate Cultivated Vegetable Multiple Multiple (yuan/mu) (yuan/mu) land land Lukou Town 1850 20 37000 8 14800 12 2220 1850 2035 Nanhu Farm

Table 3-5 LA Compensation Correction Factors and Rates Cultivated land Vegetable land Fishpond (incl. young (incl. young Garden land (excl. young Woodland crop crop (excl. young crop and (excl. tree Unused land compensation compensation crop Township attachment compensation) of 1,850 of 2,035 compensation) compensation) yuan/mu) yuan/mu) Rate Rate Rate Rate Rate Rate Factor Factor Factor Factor Factor Factor (yuan) (yuan) (yuan) (yuan) (yuan) (yuan) Lukou Town 1 38850 1.1 42735 1.1 40700 1.1 40700 0.7 25900 0.5 18500 Nanhu Farm Compensation rates for young crops and Fry transfer and facility subsidy: 2,200 yuan/mu; see Table 3-10 ground attachments: for other items. Note: The 10% extra compensation for fishpond is fishpond excavation fee.

Table 3-6 Compensation Rates for Temporary Land Occupation Item Unit Compensation rate Compensation for temporary Cultivated land yuan/mu per annum 1850 land occupation Fishpond yuan/mu per annum 2200

3.6.2 HD HD has not begun, and the HD resettlement policies and compensation rates are consistent with those specified in the RP. 3.6.3 Young Crops and Attachments According to the RP, the compensation rates for young crops and attachments have been fixed on a replacement cost basis. 3.6.4 Tax Rates The tax rates are based on the RP.

3.7 Evaluation and Suggestions 3.7.1 Evaluation 1) LA approval is behind schedule. As of the current monitoring period, the approved land is only 104.5425 mu occupied by the Huanhu Road project, which is the same as the situation in the previous periods of monitoring. 2) In the second half of 2019, a total of 20,763,837.37 yuan has been paid for land acquisition, ground attachment, and earthwork compensation, which is more than the first half of the year. The amount paid during the 6th monitoring period (first half of 2019) is 10335323.28. A total of

31099160.65 yuan has been paid for the whole year of 2019, and it shows the progress of compensation is getting faster. 3) The 23 HDs in group 4 of Baizhangzui Village involved in HGH-C1.7 is still in the negotiation stage, but the evaluation of houses has been carried out. The PMO and Baizhangzui Village have reached a preliminary agreement on the relocation sites. The PMO promises to complete the resettlement work by June 2020. The HD households will be mainly resettled in Wangjiawan Community. 3.7.2 Suggestions 1) According to China's "Land Management Law," land application must be strictly implemented before land acquisition. Given the project is nearing completion, the whole project is only 104.5425 mu land was officially approved, occupied by the Huanhu Road project. The remaining land is used as the form of pre-reserved land, which has insufficient support from the national law. It is recommended that the PMO, together with the local land management authorities, actively promote land application for approval so that the acquired land can be used legally. 2) Because of the preliminary agreement on the demolition of 23 households in Baizhangzui Village, the demolition work will be completed by the end of June 2020. It is suggested that the PMO should strengthen consultation with farmers affected by HD and pay more attention to the sustainability of their livelihood after relocating. 3) The PMO should prepare the capital budget in advance, ensure the progress of land acquisition compensation payments, and protect the interests of farmers affected by land acquisition and house demolition.

4 Livelihood Restoration 4.1 Cash Compensation The cash compensation rates for LA and ground attachments are strictly based on the RP. See Chapter 3 for details. 4.2 Social Security LEFs under the Project have been covered by social security according to the Implementation Measures of Huanggang City for Basic Endowment Insurance for Land-expropriated Farmers (HMG [2015] No.5). See Table 4-1.

Table 4-1 Insurance of LEFs Township Village / community Group Policy Provisions on contribution Xiejiaxiaowan Village Interim Measures for Basic NED, the village collective and Endowment Insurance for the individual bear 40%, 20% Land-expropriated Farmers and 40% respectively, and the Xiahu Fish Farm in the Urban Area of insured will receive at least 400 Huanggang City (HMG yuan/month after retirement. [2008] No.19) Baizhangzui Village 4, 5 The county (city/district) Cigang Village 12 government offers one-time 10, 15, 16, Implementation Measures of insurance compensation to Lukou Village 17 Huanggang City for Basic each LEF. The individual Wangjiawan Village 1, 2, 3, 6, 7 Endowment Insurance for should cover basic endowment Land-expropriated Farmers insurance for urban employees Lukou (HMG [2015] No.5) if employed, or basic Town Huayuan Village endowment insurance for urban and rural residents if not. Interim Measures for Basic Before the enactment of the Endowment Insurance for new policy in 2015, the Land-expropriated Farmers insurance premium is borne by in the Urban Area of the government, village Huanggang City (HMG collective and individual at Santaihe Village 1, 3, 5 [2008] No.19), 40%, 20% and 40%; after its Implementation Measures of enactment in 2015, the county Huanggang City for Basic (city/district) government offers Endowment Insurance for one-time insurance Land-expropriated Farmers compensation to each LEF. (HMG [2015] No.5) Group 4 The premium is borne by the Group 5 When Nanhu Farm was Nanhu Farm Office, individual restructured in 2003, each and state at 17%, 10% and Nanhu worker of Nanhu Farm was 73%; the insured will receive Farm Group 6 covered by social 2,000 yuan/month when endowment insurance. attaining 60 years for men or 50 years for women. Interim Measures for Basic NED, the village collective and Baitan Endowment Insurance for the individual bear 40%, 20% Lake Land-expropriated Farmers and 40% respectively, and the Fish in the Urban Area of insured will receive at least 400 Farm Huanggang City (HMG yuan/month after retirement. [2008] No.19)

4.3 Agricultural Restructuring Measures 4.3.1 Crop Cultivation With the assistance of the government, crop structure has been adjusted actively in the affected villages. For example, Lukou Village cooperates with Xinye Miaomu Flower Co., Ltd. to 17

develop the village seedling cultivation, and the annual income is more than 250,000 yuan. In the whole of 2019, Lukou Town vigorously strengthened the construction of large-scale vegetable bases. The special agricultural product industries, such as seedlings, flowers, and fruits, have achieved rapid development. The village ’s agricultural planting structure has been further optimized and adjusted. 4.3.2 Aquaculture The villages affected by this project actively promote the development of aquaculture, to strengthen the village's collective economy and improve farmers' income. For example, in 2019, Lukou Town develops aquaculture and fisheries according to the actual situation in the region. Develop 300 mu of rice and shrimp bases, including 20 mu of prawn farming in greenhouses, and hire experts from Shanghai Fisheries Research as technical consultants. At the same time, special aquatic products such as crabs, pufferfish, Macrobrachium snails, etc., can be fished and sold every autumn. Develop 200 mu of aquaculture with special characteristics. Mandarin fish and mixed blackfish and soft-shelled turtles are used for breeding. 4.4 Nonagricultural Employment Measures 4.4.1 Commercial Development The commercial development measures of this project are mainly the construction of neighborhood centers in Wangjiawan Village, Lukou Village, and Huayuan Village of Lukou Town. Which is also the focus of external resettlement monitoring since the No.5 monitoring report. It was mentioned in the previous report in February 2019, Huanggang Government Service Center rent the Wangjiawan Village Neighborhood Center. The rental of this year has been paid to the Wangjiawan Village by the Huanggang City Government, and each affected person gets 50 yuan per month. The Dabieshan Financial Center has moved into the Lukou Village Neighborhood Center. In the second half of 2019, some other companies moved into Dabieshan Financia center, too. The neighborhood center of Huayuan Community is currently focusing on attracting investment and has not generated rental income. Because of the difficulty in attracting investment to the neighborhood centers of Lukou Village and Huayuan Village, the PMO is currently continuing to increase attracting investment. On the other hand, it is also negotiating with the two villages collectively to formulate new development plans.

Figure4-1 Companies operate in the Dabieshan Financial Center

4.4.2 Off-farm Employment Since NED is at a rapid construction stage, public welfare jobs such as landscaping, cleaning, security and coordination will be generated. And the PMO also actively coordinated to promote the

APs to apply for these public welfare posts. At the same time, the government of Huangzhou district and Lukou town, as well as the affected village committees, have also actively held relevant recruitment activities, and the proportion of targeted recruitment to land-lost farmers is relatively large. The Huangzhou District, Lukou Township governments, and the affected village committees have actively organized related recruitment activities, and a large proportion of posts are targeted for APs. For example: On October 27, 2019, the fourth quarter job fair in Huangzhou District was held at the Government Plaza in Lukou Town. There are more than 20 enterprises in Huangzhou Industrial Park, Nanhu Industrial Park, Huanggang Industrial Park participated in the job fair. They provided 2,000 jobs in various fields, involving jobs in machinery manufacturing, optoelectronic information, textile and clothing, food processing, security and cleaning, etc.

Figure4-2 The fourth-quarter job fair of Huangzhou District

4.4.3 Independent Economic Development The affected villages have taken many economic development measures actively: 1) Lukou Village: Lukou Village is the location of Huanggang Chengdong New District and Huangzhou Industrial Park. Since the construction of the Chengdong New District, Lukou Village has seized this opportunity and combined with the policy convenience of the third batch of pilot areas for rural collective property rights reform in the country, focused on activating assets and developing resources. In September 2019, the economic stock cooperative of Lukou Village was established, and the collective economy of the village was divided into two parts. The first is the transfer of the management rights of unused houses and homesteads to Post Bank and Xinyuan Hotel. The second is to transfer the idle contracted land to Yutai Ecological Farm and Huanggang Xinye Seedling Base. The village collective, through the stock right quantification, ensure villagers receive dividends based on shares and increase income. 2) Cigang Village: HGH-C 1.1, 1.3 and 1.7 of this project affect the village. In recent years, Cigang Village has transferred 700 mu of land under the leadership of the village committee. Built 400 mu of seedlings and flower base, and 300 mu soybean planting base. Attracted Qiheng Sanitary Materials Factory to settle down, and created more than 2 million yuan in taxes. Established 2 aquatic cooperatives. 1600 mu of intensive fish ponds are transforming into market famous brand. Currently, the collective economy of the village continues to grow.

Figure4-3 Enterprise-Village Assistance in Nanhu Village

4.4.4 Jobs Generated by the Project In the second half of 2019, the Project generated about 60 temporary jobs.

4.5 Support for Vulnerable Groups The natural wetland project in this project involves a total of 19 vulnerable groups and a family population of 38 people, including 5 households of elderly people living alone, 10 households with subsistence allowances, and 4 disabled households. For the vulnerable groups, the PMO and the local government support them from various aspects, including subsidies, material condolences, and employment training.

Figure4-4 Poverty relief activities in Cigang village

4.6 Evaluation and Suggestions 4.5.1 Evaluation 1) In general, the villages affected by the project took advantage of the construction of the Chengdong New District to promote the adjustment of the economic structure of the villages, which resulted in the rapid development of the villages’ economy. However, there are still some problems, such as the participation consciousness of APs is not high. Local businesses are limited and incomplete coverage. The APs are lack of relevant knowledge. To some extent, these factors have affected the adjustment of industrial structure. 2）The PMO and local governments have actively created jobs, effectively promoting the employment of APs. However, how to maintain the employment stability of APs needs to pay more attention.

3) As of December 31, 2019, the status of the three neighborhood centers is as follows. The Wangjiawan Neighbourhood Centre was leased to Huanggang City Government for use and has generated revenue. Lukou Village Neighbourhood Center, companies and merchants have been settling in since the second half of 2019 and is currently trying its best to attract more companies. At present, Huayuan Village Neighborhood Center faces difficulties in attracting investment. The PMO helps Huayuan Village strengthen investment promotion. At the same time, they are negotiating new revenue-generating plans. 4.5.2 Suggestion 1) The PMO should strengthen cooperation with the agricultural sector and give full play to the role of the agricultural technology sector. Such as guiding the selection and planning of village collective industries. Training and guiding farmers, solving technical problems encountered in agricultural production in a timely manner, and helping them achieve livelihood restoration through the development of agriculture. 2) To obtain long-term stable non-agricultural employment, APs must proceed in two ways. The first is to constantly create new jobs to meet the needs of the local workforce. The second is to strengthen employment training for landless farmers and strengthen their competitiveness in the labor market. In the future, the PMO needs to pay more attention to these two aspects. 3) At present, although some merchants settle in the neighborhood center of Lukou Village, the number is still small. The PMO, Lukou Township Government and Lukou Village Village Committee need to continue to strengthen investment promotion and attract merchants. The investment attraction work of Huayuan village neighborhood center still needs to be maintained, but new schemes for generating revenue should be explored, which requires the PMO, the Huayuan village committee, and the Lukou town government to strengthen consultation and solve.

5 Sampling Survey 5.1 Survey Information A sampling survey was conducted on 85 AHs, including 51 in Lukou Town, with a sampling rate of 56.0%, and 34 in Nanhu Farm, with a sampling rate of 40.0%. The questionnaire covered basic family information, land, housing, income and expenditure, LA and HD impacts, policy awareness, grievance redress, etc.

5.2Basic Information 5.2.1 Population and age The 291 respondents include an agricultural population of 185, accounting for 63.6%; 140 females, accounting for 48.1%; 49 persons aged below 16 years, accounting for 16.8%; 171 persons aged 17-60 years, accounting for 58.8%; and 71 persons aged above 60 years, accounting for 24.4%. See Figure 5-1.

Figure5-1 Age structure of sample population

5.2.2 Land contracting The 85 sample households have a total cultivated area of 330.1 mu, including 189.5 mu of irrigated land, 123.2 mu of non-irrigated land, 132mu of fishpond and 17.4 mu of vegetable land, and a per capita cultivated area of 1.13 mu. The main crops are paddy rice, cotton, orange and vegetables. In general, due to the construction of Chengdong New District in Huanggang City, the per capita cultivated land of households affected by the project is relatively small.

5.2.3 Annual income In Huangzhou District, the main income source of the APs is outside employment. They mostly work locally and deal mainly with construction and services. The per capita annual income of the sample households is 24,858 yuan, including agricultural and sideline income of 3,503 yuan, accounting for 14.1%; wage income of 18,325 yuan, accounting for 73.7%; property income of 1,105 yuan, accounting for 4.4%; transfer income 1,925 yuan, accounting for 7.7%. See Figure 5-2. It can be seen that since employment income accounts for a high proportion, LA will affect local residents’ income slightly.

Figure5-2 Income composition

5.2.4 Annual expenditure The per capita annual expenditure of the sample households is 12,889 yuan, including agricultural expenses of 1,052 yuan, water and electricity expenses of 1,235 yuan, transportation and communication expenses of 1,145 yuan, educational expenses of 1,345 yuan, medical expenses of 1,356 yuan, fuel expenses of 145 yuan, non-staple food expenses of 5,013 yuan, clothing costs of 598 yuan, and others including human consumption of 1,000 yuan. See Figure 5-3.

Figure5-3 Expenditure composition

6 Gender and Social Development 6.1 GAP Monitoring 6.1.1 Urban Lake and River Improvement 1) On December 6, 2019, the Lukou Town government carried out human settlements sanitation and clean-up operations to help improve the ecological environment of Lukou Town and develop ecological civilization. The activity is mainly to clean up the garbage in roads, squares, and other public areas of the village. After extensive mobilization, nearly ten women from every village in the town participated in the activity. See Figure 6-1 and Figure 6-2.

Figure6-1 Urban Lake and River Improvement

Figure6-2 River Protection Advocacy Letter

2) Upon consultation, the women wanted the perimeter of the lake to be well greened and fitness equipment installed. In fact, their needs were fully taken into account in setting up the lake recreation plaza and related supporting facilities. For example, the Chushui River comprehensive improvement project in the HGQ-C1.12 bid section has now completed civil works and is in the process of greening. The comprehensive landscaping and aquatic plants project of Linglong Bay, Jinshui River, Qingshui River, Canglang River, Dongtai River, and Dongchang River in the HGQ-C1.11 has been completed by 20%. In the construction of supporting landscaping, recreation, and other supporting facilities have fully considered women's opinions, such as the type of greening plants and which fitness equipment are installed.

6.1.2 Resettlement and employment promotion measures 1) According to the 6th monitoring, 100% of the women affected by the project understand the land acquisition compensation policy of Huanggang City, and women also enjoy the right to receive 24

compensation fees. For example, on October 23, 2019, Wangjiawan village signed a land acquisition contract with the project. The signing of this land acquisition contract fully protected women's right to know and considered their opinions. Furthermore, 40% of compensation for land acquisition in Wangjiawan Village was distributed in the second half of 2019, and women have the same right to receive it. In addition, in the negotiation process of the 23 affected households in Baizhangzui Village, all affected households' females were involved and their opinions of resettlement location position were fully considered. 2) During the implementation of this project, whether it is project labor or special job fairs organized by the government, women are fully considered. For example, there are 7 contract packages under construction in the second half of 2019. The project has provided a total of 860 employment opportunities (60 more jobs than the 6th report), accounting for 40.38% of the project's estimated total of 2130 employment opportunities, of which 95 are women, accounting for 11.05% of total employment. On October 27, 2019, the fourth quarter job fair in Huangzhou District was held at the government square in Lukou Town. The job fair provided about 2,000 jobs in machinery manufacturing, optoelectronic information, textiles and clothing, food processing, security and cleaning. There are many positions specifically for women, and women have been fully informed through various information channels before the job fair.

6.1.3 Solid Waste Management 1) In the second half of 2019, Lukou Town government and the affected villages carried out an ecological renovation, a cleanup of river channels and a toilet revolution to ensure a clean living environment. Lukou Town also carried out garbage sorting activities, and each village also reasonably set up garbage drop-in points and garbage transfer treatment points. The sets of garbage dumping points was determined after full consultation with women's groups. Relevant environmental improvement activities have also mobilized women's participation, and women's groups have also been trained in garbage classification. In total, more than 40 women have participated in these activities.

Figure6-3 Wangjiawan organized volunteers to carry out environmental sanitation renovation

Figure6-4 Lukou town government garbage classification point and huanggang city government garbage classification documents

Figure6-5 Female workers in the toilet revolution

6.1.4 Capacity Development and Institutional Strengthening 1) Since the launch of the ADB project, all affected villages have fully incorporated women's participation in decision-making to ensure the proportion of women in decision-making staff. In addition, female officials can be found in the management of resettlement communities. 2) Local women fully participate in community publicity, education, public consultation, and training on environmental protection.

Figure6-6 Women sorting books for village committee

6.1.5 M&E

2) HPMO has staff dedicated to SAP and GAP implementation, where Wang Kun is

responsible for the SAP and Lu Hua for the GAP; each contractor has a staff member responsible for environmental, social and gender affairs. 3) Experts from the ADB inspection team conducted gender training for the staffs of the HPMO once in June 2019 to improve their professionalism and professional ability. In addition, propaganda on the protection of women's rights and interests was carried out in various ways.

6.2 SAP Monitoring 6.2.1 Measures to Enhance Project Benefits 1) Strengthening community participation and optimizing the project design ① For the establishment of lake recreation square and related supporting recreational facilities. At present, the Chushui River comprehensive improvement project in the HGQ-C1.12 bidding section, and the Linglong Bay, Jinshui River, Qingshui River, Canglang River, Dongtai River, and Dongchang River channels in the HGQ-C1.11 bidding section comprehensively improve the greening, Water plants projects have been carried out to the greening stage. In the construction of these projects, the opinions of the masses about the variety of plants and the fitness equipment were taken into full consideration, especially those in the affected villages. ② In the second half of 2019, Lukou Town launched environmental improvement activities such as the improvement of human settlements, garbage sorting, and the toilet revolution. Public participation is fully mobilized in these activities, and public participation is highly enthusiastic. Also, the set of locations of the garbage dump and garbage transportation have been fully considered public opinion. As a result, villagers are all satisfied with the effect of environmental improvement. 2) Generating jobs to increase residents’ income ① As of December 31, 2019, over 860 non-technical employment positions have been created. ② During the project operation period, there will be 33 professional job opportunities such as wetland and garbage management, and about 100 non-profit posts such as garbage removal, road cleaning, greening, and community cleaners. As of December 31, 2019, 33 positions have not been provided because the tenders for wetland and garbage construction have not yet begun. However, 100 non-profit posts have been provided. ③Targeting the creation of jobs suitable for women and the poor. Under the premise of meeting the employment requirements, women and the poor are given priority in all job recruitment.

Figure6-7 Consolation to Poor Population in Cigang village

6.2.2 Measures to Reduce Potential Risks 1) Community management and environmental protection teams

① At present, the village committees in Lukou Village, Wangjiawan Village and Huayuan Community have been transformed into community management models. ② Community environmental protection teams have been established in the resettlement communities for the Huayuan, Wangjiawan and Lukou Villages. There are about 10 members of each team and mainly are village cadres. 2) Solid waste publicity to improve public environmental awareness ① Design solid waste management knowledge leaflet. A leaflet on solid waste management was designed and distributed in the second half of 2019. ② Prepare a handbook on community involvement in solid waste separation, as well as training in solid waste separation and collection. In 2019, with Shanghai taking the lead in garbage classification, it had spread to the whole country. Huanggang City also adapted to this action and promulgated documents for garbage classification. At present, garbage classification is gradually being carried out in the project affected area.

Figure6-8 Popularizing Waste Classification Knowledge to APs

6.2.3 Education on Public Health and AIDS Prevention Each construction contract includes a provision on AIDS and other infectious diseases prevention. Every year on World AIDS Day on December 1st, the local government uses publicity banners, WeChat, and "micro-medical cloud inspection vehicle" to conduct free health care and publicity for AIDS prevention.

Figure6-9 Lukou Town "Micro Medical Cloud Patrol Car" Activity Figure

6.2.4 Public Consultation and Grievance Redress Mechanism

1) Project information has been disclosed by boards and layout plans. Local residents, including women and vulnerable groups, are very familiar with the ADB project. If the public encounters problems related to the project, they can get help through various means such as on-site consultation, consultation with the village and township governments, or telephone inquiry 28

to the project office . 2) Information about the project construction, such as bidding information is published online 3) Information on resettlement of the project, such as land acquisition announcements and house demolition announcements, has been announced on the local government bulletin board and portal website in strict accordance with the legal requirements. 4) A grievance redress mechanism has been established, and villagers may express opinions, grievances and suggestions by various means. If negotiation and arbitration cannot solve the problem, they can finally sue to the people's court. 5) The PMO releases project employment information on time. Local governments also release employment information to farmers through various channels. So APs can find non-agricultural jobs nearby easily.

6.3 Evaluation and Suggestions As of December 31, 2019, most of the indicators in the GAP and SAP have been fulfilled in this project. The remaining unfulfilled indicators are mainly due to the delay of the project construction and not fulfilled. The PMO promised that with the progress of hgq-c1.12, hgh-c1.4, hgh-c1.7, hgq-c1.11, hgh-c1.6, hgh-c1.8 and other projects, as well as the ground broken of hgq-c1.13, hgg-m2.2, hgg-m2.3, the remaining indicators will be fulfilled soon. The completion of the SAP and GAP to date is presented in Appendix 3.

The following suggestions are raised: 1) With the completion of land acquisition, the number of affected farmers will continue to increase. The PMO must strictly follow the requirements of the SAP and GAP and take measures to promote the employment of the affected people. In addition, special attention should be paid to women and the poor, and employment assistance should be given priority to ensure their livelihoods are sustainable. 2）Personnel in charge of social and gender action plans of the PMO need to continuously improve their professional level and do a good job of file management under the guidance of relevant experts. 3) The PMO needs to continue to strengthen publicity on the environment and public health and raise the awareness of environmental protection and public health and safety of the APs.

7 Public Participation and Grievance Redress 7.1 Public Participation As mentioned in the previous M&E reports, an LA announcement is usually published one month in advance for ADB-financed projects. Village meetings are held irregularly in each village to communicate important information, such as LA, employment, and training information. The current monitoring learned that, up to now, with the exception of HGH-C1.4, 1.7, and HGQ-C1.10, all lands have been acquired. Regarding the remaining issues of these three bids, the PMO has coordinated with the village committee and affected farmers many times to listen to their opinions. At present, a preliminary agreement has been reached on the remaining issues of the three tenders. Another example is the resettlement of affected farmers in Wangjiawan Village in 2019. The villagers 'committees have repeatedly held villagers' meetings. After repeated studies, they finally came up with a plan that satisfied the farmers.

Figure7-1 APs of Wangjiawan village relocating to the community

7.2 Grievance Redress 7.2.1 Procedure A grievance redress mechanism has been established to ensure the successful implementation of resettlement. Stage 1: If any right of an AP is infringed on in respect of LA or resettlement, he/she may report to the village committee, which should keep written records. Such appeal should be solved within two weeks. Stage 2: If the AP is dissatisfied with the disposition of Stage 1, he/she may file an appeal to the Lukou Town Government or Nanhu Farm after receiving such disposition, which shall make a disposition within two weeks. Stage 3: If the AP is still dissatisfied with the disposition of Stage 2, he/she may file an appeal to the Resettlement Office after receiving such disposition, which shall make a disposition within two weeks. Stage 4: If the AP is still dissatisfied with the disposition of Stage 3, he/she may file an appeal with competent administrative agencies level by level for arbitration in accordance with the Administrative Procedure Law of the PRC after receiving such disposition. At any stage, an AP may bring a suit in a civil court directly in accordance with the Civil Procedure Law of the PRC. If any AP may also file an appeal with the Office of the Special Facilitator or Compliance Review Panel of ADB in accordance with ADB’s accountability mechanism. All agencies will accept grievances and appeals from the APs for free, and costs so reasonably

incurred will be disbursed from the contingencies. At the whole construction stage, the above procedure will remain effective so that the APs can use it to solve relevant issues. The above appeal channel will be disclosed to the APs via the RIB and mass media. See Table 7-1.

Table 7-1 Grievance Redress Information Agency Name Address Tel HPMO Duan Meisheng NED Construction Headquarters 07138453160 Resettlement Office Li Xiang NED Construction Headquarters 07138453160 Lukou Town Government Yang Lei Lukou Town Government 0713-8453152 Nanhu Farm Luo Haifeng Nanhu Sub-district Office 0713-8341068

APs

Neighborhood or village committee Contractors

Town government, Nanhu farm

HPMO

Huanggang City Land Bureau, Housing and Urban and Rural

ABD

Figure7-2 Grievance Redress Mechanism

7.2.2 Grievances and Appeals Several grievances mentioned in the 6th M&E have made effective progress, but there are still some other problems. 1) Issues in attracting investment in the neighborhood centers of Lukou Village and Huayuan Village. At present, the Wangjiawan Village Neighborhood Center has been leased to the Huanggang Municipal Government for use as a municipal affairs center and has already generated revenue in 2019, and the income has also been distributed to the villagers. Although the Lukou Village Neighborhood Center has attracted investment, enterprises and merchants are inadequate. The Huayuan Village Neighborhood Center still has no merchants. The neighborhood center is vacant most of the time and cannot generate revenue. So the neighborhood centers are idle and no income is the chief complaint of this stage. 2) Issues of 23 HDs of Baizhangzui village. The demolition of 23 houses in Baizhangzui Village. Although the PMO and Baizhang Village Committee have reached a preliminary agreement on resettlement. The APs still have relevant demands for the resettlement houses. It needs PMO to

continue to discuss with APs to meet their reasonable requirements. 3) In the second half of 2019, a total of 20,763,837.37 yuan was allocated for land acquisition compensation costs, and the appropriation progress was significantly accelerated. However, it is known that the affected villages have demands for accelerating the payment of the remaining funds. For example, 30% of the land acquisition compensation in Baizhangzui Village is left unpaid. 30% of the land acquisition and 20% of the ground attachment compensation in Wangjiawan Village is left unpaid. They all hope that the PMO will speed up the payment of land acquisition compensation fees. Table0-1 the grievance and resolution result No. Monitoring Issue Process Result period 1 No.6 report attracting investment in the Since 2018, the Lukou Town Government and the In progress neighborhood centers of NED have discussed this issue with the two village Lukou Village and Huayuan committees several times, but due to the Village slowdown of economic development, although some companies and businesses have settled in the Lukou Village Neighborhood Center At present, there are still no merchants in Huayuan Village Neighborhood Center. 2 No.5 report The resettlement location and Although the PMO and Baizhang Village In progress the compensation rate of 23 Committee have reached a preliminary agreement HDs of Baizhangzui village on resettlement, and HDs can choose Wangjiawan and Huayuan Community for resettlement 3 No.4 to Appeal to disburse land The problem remains as land acquisition In progress No.6 report acquisition compensation continues, but PMO has accelerated the funds as soon as possible disbursement of funds.

7.3 Evaluation and Suggestions 7.3.1 Evaluation Since the beginning of the Project, the IAs have attached great importance to public participation, conducted extensive consultation with the AHs, village collectives and affected entities by means of newspaper, website, FGD, baseline survey, announcement, etc. in AP identification, DMS result disclosure, policy publicity, livelihood restoration program preparation, etc., and replied to questions raised by the APs timely. The grievances of the APs were timely reflected to the IAs through relevant channels, and most of them were properly resolved. For example, the issue of Wangjiawan Village Neighborhood Center's income distribution has been resolved through the actively coordinated by the project office and listened to the opinions of all parties. 7.3.2 Suggestions 1) Regarding the investment attraction of Lukou Village and Huayuan Village Neighbourhood Center. The PMO needs to actively coordinate to promote the solution of the problem so that the AHs can get benefits in time. Specifically, for Lukou Village, its neighborhood center has good

infrastructure and convenient transportation conditions. At present, Huanggang Smart Industrial Park has settled in. It can continue to strengthen investment promotion. For the Huayuan Village Neighborhood Center, on the one hand, it is necessary to continue to strengthen investment promotion. On the other hand, the PMO, Huayuan Village Committee, and APs need to strengthen coordination and negotiate a profit plan that is recognized by all parties. 2) Regarding the demolition of 23 households in Baizhangzui, the PMO has reached an agreement with the affected farmers, and the resettlement work is expected to be completed by the end of June 2020. During this period, the PMO needs to listen to the opinions of affected farmers about housing resettlement and compensation for demolition, and ensure that their livelihoods are restored in time after the demolition. 3) Regarding the timely payment of land acquisition compensation fees. Since the land acquisition of the project is nearing completion (by the pre-reserved method), but the progress of land application for approval has been slow. Therefore, the PMO needs to speed up the progress of land application for approval, and ensure that the relevant land acquisition procedures are legal and reasonable. On this basis, the PMO should also accelerate the progress of land acquisition compensation fees.

8 Conclusions and Suggestions 8.1 Conclusions 1) Land application and construction progress As of the date of this report, except that part of the land used for HGH-C1.3 has been approved, and there had been no progress in land approval. Among the 16 civil works contracts, HGH-C1.1 and HGQ-C1.10 have been completed and settled accounts. HGH-C1.3, HGH-C1.9, and HGH-C1.2 have been completed and under the second review. HGQ-C1.12 civil works have been completed, and greening work is currently underway; HGH-C1.4, HGH-C1.5, HGH-C1.6, HGH-C1.7, HGH-C1.8, and HGQ-C1.11 are under construction, while HGQ-C1.13, HGG-C2.1, HTA2.1, HGG-M2.2 and HGG-M2.3 had not broken ground. 2) LA and HD progress Compared with No.6 M&E report, Hgh-c1.10 and Hgh-c1.11 carried out land acquisition surveys and delimitation. 23 households in Baizhangzui Village have reached a preliminary agreement on resettlement. It is expected that the demolition will be completed by the end of June 2020. The remaining 180,000 compensation for the demolition of the Shanhu breeding base has not been issued. The demolition of Baitan Lake Hotel is yet to be determined. In the second half of 2019, a total of 20,768,800 yuan have been disbursed for land acquisition, ground attachment, and earthwork. 3) Livelihood restoration The villages affected by the project actively optimize the agriculture industrial structure, such as developing particular agricultural products and expanding the agricultural products processing chain. The problem of social security for APs has also been better solved. The Wangjiawan Neighbourhood Center has generated revenue, and the Lukou and Huayuan Neighbourhood Center are focusing on attracting investment. PMO, local governments, and village collectives are also continuously taking measures to provide non-agricultural jobs for APs. Therefore, the APs’ livelihoods are being restored. 4) Information disclosure and public participation The IAs have attached great importance to public participation, conducted extensive consultation with the AHs, village collectives and affected entities by means of newspaper, website, FGD, baseline survey, announcement, etc. in AP identification, DMS result disclosure, policy publicity, livelihood restoration program preparation, etc., and replied to questions raised by the APs timely. Which fully protects the APs' right to know and effectively protects their interests. 5) Grievance redress The grievance redress mechanism of the Project is transparent and effective. The outstanding grievances and appeals in this stage include (1) Investment attraction of Lukou Village and Huayuan Village Neighbourhood Center; (2) Housing resettlement, demolition compensation and livelihood restoration after the demolition of 23 households in Baizhangzui; (3) timely allocation of the remaining land acquisition compensation. 6) GAP and SAP In general, most of the indicators in the GAP and SAP have been fulfilled in this project. The remaining unfulfilled indicators are mainly due to the delay of the project construction and not fulfilled. The PMO promised that with the progress of hgq-c1.12, hgh-c1.4, hgh-c1.7, hgq-c1.11, hgh-c1.6, hgh-c1.8 and other projects, as well as the ground broken of hgq-c1.13, hgg-m2.2,

hgg-m2.3, the remaining indicators will be fulfilled soon.

8.2 Suggestions 1) Handle the preparatory LA procedure lawfully. According to China's "Land Management Law", land approval procedures must be strictly implemented before land acquisition. Since the land acquisition for this project is nearing completion, there are still some acquired lands that have not fulfilled the application procedures. Also, the same suggestion has been prosented for several times, so the PMO and the Land and Resources Bureau of the Baitan Lake Area should take this work as the focus and complete the LA approval procedure before the end of 2020. 2) Take further measures to promote the employment of the APs. Employment is the key to livelihood restoration. To ensure the stable and sustainable employment of APs, HPMO and the local government should offer employment information, jobs and employment training to the APs where possible. According to relevant policy requirements, improve the employment security system of APs. At the same time, the government may set up employment service organizations, which can provide APs with such services as job registration, job promotion, career guidance, entrepreneurship policy consultation, and employment training. 3) Pay attention to the implementation of the SAP and the GAP. With the completion of land acquisition, the number of affected farmers will continue to increase. The PMO must strictly follow the requirements of the SAP and GAP and take measures to promote the employment of the affected people. In addition, special attention should be paid to women and the poor, and employment assistance should be given priority to ensure their livelihoods are sustainable. Personnel in charge of social and gender action plans of the PMO need to continuously improve their professional level and do a good job of file management under the guidance of relevant experts. The PMO needs to continue to strengthen publicity on the environment and public health and raise the awareness of environmental protection and public health and safety of the APs. 4) Resolve of APs’ grievance timely Aiming at the problems such as investment attraction of Lukou Village and Huayuan Village Neighborhood Center, resettlement of 23 households in Baizhangzu, and timely payment of compensation for land acquisition, etc. The PMO and IAs shall continue to maintain relevant appeal channels, by which to communicate with affected farmers and listen to their demands. Based on drawing on the reasonable opinions of all parties, come up with feasible methods to solve the above problems and ensure the smooth implementation of the project.

Appendix 1: LA Compensation Agreements (2019.7-2019.12) 1) LA compensation agreement for Wangjiawn Village

2) LA compensation agreement for Baizhangzhui Village

3) LA compensation agreement for Lukou Village

Appendix 2: Payment Vouchers (2019.1-2019.6) 1) 2,481,211yuan ground attachment compensation for Baizhangzhui village (2019.8.28)

2) 2019.8.29, 15,220 yuan earthwork compensation for Santaihe Village, 13,611 yuan earthwork compensation for Nanhu farm, and 83,193 yuan earthwork compensation for Baitan Lake fish farm

3) 2019.9.4, 503,600 yuan compensation for the facilities and equipment of Baitan Lake Fisheries Aquatic Products Processing Plants, equipment, and ground attachments

4) 2019.9.29, 4,000,000 yuan surface compensation and coordination fee of Baitan Lake fish farm (including Chiye Lake dredging, Chushui River, Dongchang River, Dongtai River, Jinshui River, Huanbaitan Lake, and 89 hectares of artificial wetland project)

(5) 2019.10.17, 1,458,240.3 yuan, accounting for 40% of 92.58 mu of land compensation in Cigang Village, Lukou Town

6) 2019.10.18, 8,376,961.32 yuan, accounting for 40% of 593.9625 mu of land compensation in Baizhangzhui village

7) 2019.10.23, 3,831,800.75 yuan, accounting for 70% of 148.9845 mu of land compensation in Wangjiawan village

Appendix 3: SAP and GAP Monitoring Matrix 1) SAP Proposed actions Implementation Monitoring indicators Monitoring results Measures to Enhance Project Benefits A. Strengthening community participation and optimizing the project design 1. Measures to improve the benefits of Urban Lake  In the second half of 2019, the supporting  Number and mode of  Fulfilled; and River Improvement landscaping, sanitation, recreation, and discussions;  Fulfilled;  The design will be discussed with local residents; other facilities of the HGQ-C1.12 and  Setup of lakeside leisure  Fulfilled;  Lakeside leisure squares and facilities will be HGQ-C1.11 bid sections have fully squares and facilities, and provided to meet the needs of women, children considered the opinions of the public. consideration of needs of and old people;  In the second half of 2019, Lukou Town women and old people;  Safety on and around the lake (including launched environmental improvement  Setup of relevant facilities, and guardrails, streetlamps, warning signs, green activities such as the improvement of consideration of needs of belts, cameras and other protective measures) human settlements, garbage sorting, and women and old people; will be installed, and needs of women and old the toilet revolution. They all fully  Positions, spacing and style of people are met. mobilized the masses to participate, and dustbins 2. Solid waste management the masses were more enthusiastic about  The positions, spacing and style of dustbins will participating. be discussed with local residents.  In the affected villages, The setting of the garbage disposal location and the garbage transfer point have fully considered the opinions of the masses. B. Creating job opportunities and increasing residents’ income  About 150 skilled and 2,300 unskilled jobs will be  Over 860 jobs have been generated in  Jobs offered by the Project  Over 860 jobs have been generated in created by Urban Lake and River Improvement total, including about 150 skilled jobs.  Number of local residents total. during construction;  Over 150 public welfare jobs have been employed  Among the 7 contracts that have  33 skilled jobs (wetland and solid waste generated.  Number of women and poor broken ground, 280 jobs have been management, etc.), and about 100 public welfare  The public welfare jobs are suitable for residents employed offered to local residents (32.56% of all jobs (waste transfer, cleaning, landscaping, etc.) women.  Wages of local residents employees) and 50 to poor population will be created at the construction stage; (5.81%), more than one year ago, with  Jobs suitable for women and the poor will be pays of 180-260 yuan/day or created. 3,400-6,000 yuan/month. Measures to Reduce Potential Risks A. Community management and environmental protection  NED will join in the existing community  A living environment improvement team  Number of newly established  As the project is still under management pattern; has been established in each village, communities construction, no community

 Community environmental protection teams (2 of with two or more women each.  Number of newly established environmental protection team have 3-5 members are women) will be established.  The community management mode has community environmental been established. been adopted in Wangjiawan and Lukou protection teams resettlement community. B. Giving solid waste publicity to improve public environmental awareness  A brochure on solid waste management will be  A leaflet on river environmental protection  Brochure preparation and  Fulfilled; designed; has been designed. distribution  There is no community participation  A community participation handbook on solid  There is no community participation  Community participation handbook yet. waste separation and NED environmental handbook yet. handbook  Fulfilled; protection will be prepared;  Training has not been offered yet.  Time, frequency and number of  Training on solid waste separation and collection participants of public will be offered. participation C. Education on Public Health and AIDS Prevention  The contract will include provisions on AIDS and  There is a relevant clause in the contract.  Contract terms and performance  Yes other infectious diseases;  Extensive publicity on public health and  Training courses and number of  The town health center has offered a  Public health and AIDS prevention education will AIDS prevention has been conducted. trainees training course on public health and be given to construction workers and NED  The town health center can provide  Health and safety measures vaccination to over 100 trainees. residents; medical services to construction workers  AIDS prevention publicity at the  The epidemic prevention department  Health and safety measures will be taken for conveniently. construction stage offers vaccination, and the family construction workers (temporary infirmaries, local  AIDS prevention publicity is conducted by planning department distributes family medical resources); means of banner and poster on AIDs planning supplies for free.  AIDS prevention publicity will be given in diverse day.  AIDS prevention publicity has been ways. conducted extensively. D. Public Consultation and Grievance Redress Mechanism  Project information will be made available to  Local residents are very knowledgeable  Time, scope and mode of  Project information has been disclosed local residents (at least 50% of participants being about the project information, of which project information disclosure online and by Huanggang Daily. women and the poor); women, the poor and vulnerable groups  Time, scope and mode of  Construction information has been  Construction information will be disclosed, account for 50%. construction information disclosed on site and online. including possible impacts;  Overnight construction and construction disclosure  NED construction information has  The public will participate in livelihood impacts are minimized.  Time, scope and mode of been disclosed online and at the NED restoration;  The APs fully participate in livelihood community building information construction headquarters.  The NED master plan and schedule will be restoration, including nonagricultural disclosure disclosed; employment and crop restructuring.  Job and development opportunities will be  The NED master plan and schedule are disclosed. available online.  The municipal labor and social security bureau distributes information online and

in Lukou Town by various means. AP = Affected Person, HMWF = Huanggang Municipal Women’s Federation, HPMO = Huanggang Project Management Office, mu = Chinese unit of area (1 mu = 666.67 m2), NED = New Eastern District, PIC = Project Implementation Consulting

2) GAP Proposed actions Implementation Monitoring indicators Monitoring results Output 1: Urban Lake and River Improvement  Lakeside leisure squares and facilities will  On December 6, 2019, Lukou Town  At least 30% of women  Over 30% of participants in the design be provided to meet the needs of women; launched a sanitary improvement of participate in the design of this of other components should be  Safety on and around the lake (including human settlements and a clear river component; women; guardrails, walking paths, streetlamps, operation and extensively mobilized  100% of women are aware of  100% of the affected women are aware warning signs and other protective women to participate. the LA compensation program; of the LA compensation policy. measures) will be installed, and women’s  In the HGQ-C1.11 and 1.12 projects,  2,130 jobs created during  The Project has generated over 800 needs for leisure and amusement are met; women's opinions have been fully project construction of which jobs, in which 60 have been offered to  Resettlement and public low-cost rental taken into account in construction of 30% are filled by women. women. housing constructed by HMG within the supporting landscaping, recreation, NED will be designed and allocated in and other supporting facilities consultation with women;  The resettlement site for Group 4 of  Policies and programs on compensation for Baizhangzui Village have taken full land acquisition will be disclosed to all account of the needs of women. affected persons, and women will have the  on October 23, 2019, Wangjiawan right to receive compensation fees; village signed a land acquisition  Ensure job opportunities are advertised contract with the project. The signing and available to women through project of this land acquisition contract fully staff, labor bureau and HMWF. protected women's right to know and considered their opinions. 40% of compensation for land acquisition was distributed and women have the same right to receive it.  On October 27, 2019, the fourth quarter job fair in Huangzhou District was held at the government square in Lukou Town. The job fair provided about 2,000 jobs in machinery manufacturing, optoelectronic information, textiles and clothing, food

processing, security and cleaning. There are many positions specifically for women, and women have been fully informed through various information channels before the job fair. Output 2: Solid Waste Collection and Transfer System  Location, distances, and design of waste  In the second half of 2019, Lukou  Women participate in the  Fulfilled; bins will be decided in consultation with Town and the affected villages carried design of waste collection and  Fulfilled;. women; out an ecological renovation, a separation;  As the solid waste management  The time, venue, and form of publicity and cleanup of river channels and a toilet  At least 30% of trainees are project has not yet started, the job training on waste separation and revolution to ensure a clean living women; opportunities provided during the environmental protection meet women’s environment. Lukou Town also carried  320 jobs created during project construction period have not been needs. out garbage sorting activities, and construction of which 30% are fulfilled. each village also reasonably set up filled by women;  Waste sorting activities have been garbage drop-in points and garbage  NED and Huangzhou District carried out in the project area, and the transfer treatment points. The sets of residents’ knowledge of waste awareness of waste sorting has not garbage dumping points was sorting, reuse, recycling, and been evaluated, but the residents' determined after full consultation with safe disposal increased from awareness of waste sorting has women's groups. Relevant 7% to 75%. improved greatly. environmental improvement activities have also mobilized women's participation, and women's groups have also been trained in garbage classification. Output 3: Capacity Development and Institutional Strengthening  Women will participate in the existing  Women have participated in  At least 60% of community  60% of officials and cleaners of the community management after the community management. management staff members resettlement communities for the completion of NED;  Women have participated extensively are women; Huayuan, Wangjiawan and Lukou  Women will participate in community in publicity and education on living  At least 2 of 3-5 members of Villages are women.(fulfilled) environment protection group; environment improvement. community environment group  Many women participate in living  Women will participate in publicity and  Local women have fully participated in are women, number and kind environment improvement. education on environmental protection; community publicity, education, public of public awareness, gender  Over 20% of trainees of capacity  Women will participate in training consultation and training on disaggregated; building training are women. programs. environmental protection.  A four-year (2016–2019)  Women have participated in capacity training plan is developed and development and institutional implemented, with a target of

strengthening. 20% women participation. M&E  Social and gender experts will be recruited  An experienced social and gender  Completion of the M&E report  6 external M&E reports have been at the implementation stage to support the expert has been engaged to direct the on GAP and SAP; completed, covering SAP and GAP implementation of GAP and SAP; implementation of the SAP and the  Terms of reference for HPMO M&E. (fulfilled)  HPMO will assign persons to be GAP. social and gender  5 social and gender experts have been responsible specifically for social-gender  HPMO has staff dedicated to SAP and mainstreaming expert and designated, along with their duty. mainstreaming, in addition to the GAP implementation, where Wang number of people assigned;  Training on the SAP and the GAP was implementation and reporting of GAP and Kun is responsible for the SAP and Lu  Time, venue, number and offered in July 2019. SAP; Hua for the GAP; each contractor has gender of participants in GAP  PPMS is collecting social and gender  Gender-based data will be collected in the a staff member responsible for and SAP trainings; data.(fulfilled) management information system to ensure environmental, social and gender  Indicators involving social the monitoring, evaluation and reporting of affairs. development and gender in GAP and SAP;  Gender data collection should be PPMS  Publicity and training on GAP will be strengthened. provided to the key staff of the HPMO and  Publicity on the protection of women’s HUCIC. rights has been conducted in various forms, and training on the SAP and the GAP was offered in July 2019. GAP = Gender Action Plan, HMWF = Huanggang Municipal Women’s Federation, HPMO = Huanggang Project Management Office, M&E = monitoring and evaluation, NED = New Eastern District, SAP = Social Action Plan, PIC = Project Implementation Consulting, PPMS = Project Performance Management System