Shaanxi Mountain Road Safety Demonstration Project

Social Monitoring Report

Semi-Annual Report August 2019

PRC: Shaanxi Mountain Road Safety Demonstration Project

Prepared by Shaanxi Kexin Consultant Company for the People’s Republic of China and the Asian Development Bank.

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

Shaanxi Mountain Road Safety Demonstration Project (Loan No. 3924-PRC)

External Monitoring Report for Resettlement (Xunyang County)

Report No.5

（September 2018 ~February 2019）

Prepared for: Foreign Capital Utilization Center of SPTD

By: Shaanxi Kexin Consultant Company

August 2019

Executive Summary

In February 2019, External Monitoring Unit of Xunyang County Subproject of Shaanxi Mountainous Road Safety Demonstration Project (the Monitor) carried out external monitoring of Phase V in project affected area. The reporting period was September 2018 to February 2019. This external monitoring scope involved 6 towns and 36 administrative villages/communities that were affected by the subprojects. Shuxiao Road(X304) is still under preparation and has not been implemented yet. The affected monitoring survey was conducted with the well-developed global participatory monitoring method in recent years, namely, establishing the project monitoring and consulting group, and in combination with the conventional monitoring methods, including field exploration, in-home survey and dictation record, arrangement of villagers discussion, visit of related authorities, consultation of statistical materials, local chronicles, statutes documents, etc. Xunyang County Highway Road Subproject (the Subproject) includes: 1) S102, 2) Shuxiao Highway), and 3) 3 village roads. In addition, XCPMO is also responsible for implementation of land acquisition and resettlement of G316 Xunyang Section. Xunyang County Subproject is located in an area with frequent occurrence of geological disasters such as landslide, mountain collapse etc. Because of the disaster, the newly increased land acquisition, repeated land acquisition, and house demolition occurred. As of February 28,2019，it was predicted the newly increased land acquisition shall be 286.15mu and house demolition 2,790m2 due to disasters. Xunyang County Project Management Office (XCPMO) has signed the agreement on land acquisition of 265.08mu with 239 affected houses. The LA compensation for 203 affected households has been redeemed. XCPMO has reached the oral agreement on predicted house demolition of affected households and they all chose settlement with monetary compensation. But the final quantities of house demolition shall be determined by a professional institute with the safety assessment results upon full completion of all protective engineering which is to be conducted in November 2019. So there has not been a written agreement with households of house demolition. By February 28,2019, the subprojects under construction in Xunyang are Project G316 (Xunyang Section), S102 and X304. The acquisition and demolition work of village road has not started.

Up to February 28,2019, S102 has accomplished the collective land acquisition of 1067.86mu accumulatively. The house demolition has accomplished 31966.58m2 accumulatively. S102 has accomplished the state-owned land acquisition of 4.33 mu. Compensation funds had been paid to the households in cash fully. G316 (Xunyang Section) has accomplished the collective land acquisition of 409.28 mu and house demolition 9339.32 m2 accumulatively. Compensation funds have been paid to households in cash. It was found in the previous monitoring that, due to the financial problem of X304, the house demolition fund was not paid. According to the investigation and verification of the this monitoring, these compensation funds had been paid to the households from December of 2018 to January of 2019. X304 has reached house demolition agreement of 3610.21m2 accumulatively, the compensation funds of which have all been paid to the households. The collectively-owned land for which have reached an agreement or oral agreement for the land acquisition of X304 project is totally 340.64 mu, because there are some problems with the supporting funds, part of compensation for the land acquisition has been paid and it is planned to complete all the payment of the compensation in June 2019. Up to February 28, 2019, totally 1860 households have concluded the agreement, including 238 households affected by both land acquisition and house demolition. Among 238 households affected by house demolition, 28 AHs choose centralized settlement ,175 AHs choose local settlement, and 35 AHs choose cash settlement. Actual compensation standard was formulated based on the principles in updated RP and shall not be less than that in updated RP. The subproject removes the non-residential building of 3871.5 m2 of two enterprises accumulatively. After signing the compensation agreement and receiving the compensation, the enterprises have moved out. Temporary land occupation of the subproject was 67.139 mu, and the compensation fund have been paid. As of February 28,2019，the total compensation incurred in the project was about CNY 88,401,481, among which, CNY 35,839,271 was paid for land acquisition, CNY 41,485,116 was compensation for house demolition, and about CNY 11,077,094 was compensation for ground attachments. The monitoring in next period will continue the tracking survey on acquisition and demolition progress, compensation payment and settlement issues of the project.

Contents

1 PROJECT INTRODUCTION AND IMPLEMENTATION PROGRESS ...... 1 1.1 PROJECT OVERVIEW ...... 1 1.1.1 Xunyang County Highway Subproject and external monitoring scope of LA&R ...... 2 1.1.2 Project investment and implementation process ...... 8 1.1.3 Executing and implementing agencies...... 8 1.2 AFFECTED AREA ...... 11 2 MONITORING ON PROJECT LA AND HD ...... 13 2.1 MONITORING PROCEDURE...... 13 2.2 INVESTIGATION METHODS ...... 13 2.3 FOLLOW-UP SURVEY ON GEOLOGICAL HAZARDS ...... 13 2.4 LA AND HD STATUS ...... 20 2.4.1 Land Acquisition ...... 20 2.4.2 House Demolition ...... 21 2.4.3 LAR Impact status ...... 22 2.4.4 Compensation standard of LA & HD ...... 24 2.5 TEMPORARY LAND OCCUPATION ...... 30 2.6 GROUND ATTACHMENTS ...... 31 2.7 AFFECTED VULNERABLE GROUPS ...... 31 2.8 SURVEY OF SOCIOECONOMIC SITUATION OF THE PROJECT AFFECTED AREA ...... 31 3 LAND ACQUISITION, HOUSE DEMOLITION AND RESETTLEMENT ...... 35 3.1 IMPACTS AND COST OF LA & HD ...... 35 3.2 RESETTLEMENT PLAN AND ECONOMIC RECOVERY MEASURE ...... 37 3.3 RECOVERY PLAN OF SPECIAL FACILITIES ...... 43 3.4 STATUS OF CENTRALIZED RESETTLEMENT SITE ...... 43 4 PUBLIC PARTICIPATION ...... 45 4.1 PUBLIC CONSULTATION RESULTS ...... 45 4.2 COMPLAINTS ...... 47 5 CONCLUSIONS AND SUGGESTIONS ...... 51 5.1 ASSESSMENT ON PROJECT ACQUISITION AND RESETTLEMENT ...... 51 5.2 SUGGESTIONS ...... 52 APPENDIX 1 NAME LIST OF THE ONES WHO HAVE BEEN CONSULTED...... 53 APPENDIX 2 COMPENSATION AGREEMENT FOR LAND ACQUISITION AND HOUSE DEMOLITION ...... 54 APPENDIX 3 RESETTLEMENT POLICIES OF SOUTHERN SHAANXI AREA ...... 55 APPENDIX 4 LIST OF COMPENSATION EXPENSES FOR COMPLETION OF PAYMENT ...... 56

List of tables

TABLE 1-1 BASIC INFORMATION OF EXTERNAL MONITORING SCOPE OF PROJECT LA&R IN XUNYANG SUBPROJECT AND G316( XUNYANG

SECTION) ...... 5

TABLE 1-2 LIST OF TOWNS AND ADMINISTRATIVE VILLAGES AFFECTED BY ROAD COMPONENTS ...... 11

TABLE 2-1 LAND ACQUISITION IN AREAS OF LANDSLIDE ...... 15

TABLE 2-2 DATA OF ACQUIRED LAND ...... 20

TABLE 2-3 STATISTICAL TABLE FOR HOUSE DEMOLITION...... 21

TABLE 2-4 STATISTICS OF LA&R ...... 23

TABLE 2-5 STATISTICS OF LA&R COMPENSATION STANDARD...... 27

TABLE 2-6 TEMPORARY LAND OCCUPATION STATISTICS ...... 30

TABLE 2-7 SOCIAL AND ECONOMIC STATUS OF ANKANG CITY IN 2018 ...... 32

TABLE 2-8 SOCIAL AND ECONOMIC STATUS OF XUNYANG COUNTY IN 2018 ...... 32

TABLE 2-9 SOCIAL AND ECONOMIC STATUS OF THE AFFECTED TOWNS IN 2018 ...... 33

TABLE 2-10 CORRELATION TABLE ON PREVALENCE SITUATION OF POVERTY IN PROJECT AREAS ...... 33

TABLE 3-1 COMPENSATION ON LAND ACQUISITION AND HOUSE DEMOLITION ...... 36

TABLE 4-1 PUBLIC CONSULTATION AND PARTICIPATING ACTIVITY ...... 45

List of figures

FIGURE 1-1 ENGINEERING DISTRIBUTION MAP ...... 4

FIGURE 1-2 PROJECT RELOCATION ORGANIZATIONS ...... 11

FIGURE 3-1 NOTICE ON RECRUITMENT OF WORKERS ...... 39

FIGURE 3-2 PLANNING MAP FOR CENTRALIZED RESETTLEMENT COMMUNITY IN JINSHUIWAN OF DUANJIAHE TOWN ...... 44

FIGURE 3-3 ON-SITE PHOTOS OF CENTRALIZED RESETTLEMENT COMMUNITY IN JINSHUIWAN OF DUANJIAHE TOWN ...... 44

FIGURE 3-4 ON-SITE PHOTOS OF CENTRALIZED RESETTLEMENT COMMUNITY IN GANXI TOWN ...... 44

FIGURE 4-1 ON-SITE INVESTIGATION OF THE PUBLIC ...... 47

1 Project introduction and implementation progress 1.1 Project Overview Shaanxi Province is one of the least developed provinces with per capita GDP, per capita urban income and per capita rural income at about 36.9%, 84.7% and 76.1% of the national averages in 2015, ranking in 16th, 16th and 25th respectively among the 31 administrative provinces and regions in PRC. Fifty of Shaanxi’s 107 counties have been officially designated national poverty counties. The proposed Shaanxi Mountain Road Safety Demonstration Project (the Project) is located in Qinba Mountain of Shaanxi. Qinba Mountain is one of the 11 poorest regions targeted for concentrated interventions under the 2011−2020 poverty reduction strategy of PRC Government. The Project will have direct impact on three counties (Xunyang County, Hanbin District and Shangnan County), all of which have been designated as national poverty counties since the 1990s. The overall poverty incidence of Shaanxi is 10.7%, and county/district of Xunyang, Hanbin and Shangnan is 40%, 38.6% and 34.3% respectively. Lack of adequate transport accessibility and a poor quality of the road network are some of the major constraints for the social and economic development of the region. The primary objectives of the road rehabilitation components are threefolds: 1) to upgrade network capacity for an expanding transport volume in the area, 2) to provide all-weather access to the village and county roads that connect to the trunk roads, and 3) to improve the road safety condition of these rehabilitated roads and an additional 660km of rural roads. The Project will comprise four components： Component 1: Rehabilitation of 193km arterial highways, including 60.25km of S102 Xunyang – Xiaohe Highway, 34.39km of G316, section from Xunyang – Ankang City Center Highway and 92.41km S224 Shangnan County Chengguan Town – boundary of Shaanxi and Hubei provinces. Component 2: Upgrade of 8 rural roads with the total distance of 139.656km, including three township roads in Xunyang County, Hanbin District and Shangnan County (one each county/district) and five village roads in Xunyang County (three) and Hanbin District (two). Component 3: Improvement of the road safety of Component 1 and 2 and other road sections of about 660km; Component 4: Capability building and agency development, with the focus on the systematic capability of Shaanxi Provincial Transport Department related to road safety. The Project will benefit 1.7 million local people from the 3 project counties and district, and many more from the neighboring provinces and counties. Among the 1.7 million 1 beneficiaries, rural and urban residents account for 78% and 22% respectively. 1.1.1 Xunyang County Highway Subproject and external monitoring scope of LA&R Xunyang County Highway Road Subproject includes : (1) a provincial road between Xunyang and Xiaohe Town (S102), connecting Xunyang County and Xiaohe Town (provincial road, hereinafter referred to as Xunxiao Highway); (2) a county road, Shuhe to Xiaohe highway (county road, hereinafter referred to as Shuxiao Highway); (3) 3 village roads such as the reconstruction projects from Lijiaba to Baiguo highway, Zhangliang to Luojia highway and Yangpo to Liangheguan highway. The total construction length is 31.75km. The details are as follows:  S102 (1)Xunxiao Highway (Provincial road S102) rehabilitation is located in Xunyang County with the starting point near national road G316 in Xunyang County, mostly following the original alignment of provincial road 102. The end point is at the exit of Xiaohe Interchange of Baotou-Maoming Expressway. It runs through Bailiu Town, Ganxi Town, Zhaowan Town and Xiaohe Town in the north direction, and the entire length is 60.488km.  County Road-X304 (2) Shuxiao Highway covers a section between county road X304 Shuhe Town (adjacent to national road G316) - Xiaohe Town (adjacent to G065) (total length of about 89km). The starting point of the rehabilitation section is Shangma Village, and the end point is Xiaohe Town (connecting provincial road S102). The section from Shuhe Town to Shangma has been reconstructed; therefore, the project refers to the remaining road unreconstructed. The total length is 38.405km.  Village road (3)Reconstruction project of highway from Lijiaba to Baiguo: is located in the south of Hanjiang River in the west of Xunyang County, Ankang City, running from south to north, It runs to the south along Lanmugou River and passing through Huangjiaqiao Village starting from bridge head of Ci’an Bridge, Lijiaba Village, Duanjiahe Town in the North and ended in Taoyuan Village of Baiguoshu Town, with total length of 5.54km; It sets a branch line in Xiangjiana (the location of K2+755 in arterial line) and runs from northeast to southwest along the branch of Lanmugou River and ends in Xiefangliang, and length of the line is 2.339km. The total length of this road is 7.879km. (4)Reconstruction project of highway from Zhangliang to Luojia is located in the north of Xunyang County, Ankang City, running from south to north. The project starts from Zhangliang Village of Laogongguan in the south and ended in Luojia, with a total length of

6.551km; in addition, a branch line is set between Lijia Yazi and the temple on mountain top, with the total length of 0.702km; the total length of this road is 7.253km. (5) Reconstruction project of highway from Yangpo to Liangheguan is located in the northwest of Xunyang County, Ankang City. Generally, it has a stretching trend of east to west. The planned project connects the current village-to-village road between Maopingjie and Yangpozhai to the west, and ends in Shuangni Village to the east, developing a T-shaped plane crossing with current village-to-village roads. The total length is 16.618km. The above refers to the construction contents of Xunyang subproject under Shaanxi Mountain Road Safety Demonstration Project, and the LA&R impact within its construction areas belongs to external monitoring scope of project LA&R. Based on External Monitoring Protocol of Project LA&R, besides the affected areas of LA&R involved in the above-mentioned Xunyang County Highway Subproject, external monitoring scope of project LA&R in Xunyang County shall also include the LA&R impact of Anxun Highway Subproject, G316 (Xunyang section). G316 (Xunyang section) starts from Lvhe Town, Xunyang County, passes through Lijiazhuang Village, Xuejiawan Village, Duanjiahe Village, Gaobiliang Village, Beian Village, and then enters Hanbin District. Afterward, it continues to flow along Longquan Village, Zaoyang Village, Dongwan Village in the west, then comes to the bridge head of Hanjiang River in Jinxing Village along the original road) within the scope of Xunyang County, which originally subordinated to Shaanxi Mountain Road Safety Demonstration Project (Hanbin District Highway Subproject). And the detailed scope covers five villages of Lijiazhuang Village, Xuejiawan Village, Duanhuahe Village, Gaobiliang Village and Beian Village in Duanjiahe Town, Xunyang County. See details in Table 1-1 for external monitoring scope of Project LA&R in Xunyang County Highway Subproject and Xunyang County Highway Project.

Figure 1-1 Engineering Distribution Map

Table 1-1 Basic Information of External Monitoring Scope of Project LA&R in Xunyang Subproject and G316( Xunyang Section) Construction Subproject Type Project construction content Scope of project’s impact grade Xunxiao Highway (provincial road S102) starts from Xunyang County and connects Affect 4 towns (Xiaohe, national road 316, most part of the section is Zhaowan, Ganxi, Tongmu), 17 Xunxiao located along the original provincial road villages (Pinghuai, Qipan, Highway 102, running through Bailiu Town, Ganxi Adopt technical Dongshan, Xiaohe, Road (provincial Road Town, Zhaowan Town and Xiaohe Town to standard for Liangheguan, Jiaoyuan, reconstruction S102 ) the north and ends at the exit of Xiaohe Secondary Road Quanling, Zhonggou, Hongyan, reconstruction Interchange of Baotou-Maoming Dalingtai, Shiziling, Ganxi, Expressway, and the entire length is Liujiayuan and Zhangjiahe), and Xunyang 60.488km. 20810 people in 7143HH. subproject The project belongs to a part of County Road Affect two towns (Xiaohe and X304 in the section from Shuhe Town to Hongjun), 8 villages (Bangzi, Shuhe - Xiaohe Town. The total length of Shuxiao Zhangjiagou, Longwangtan, Xiaohekou road is 89km from Shuhe Town to Xiaohe Adopt technical Road Kangjiaping, Tiechang, Highway (county Town. The section between Shuhe Town standard for reconstruction Zhangliang, Xintianwan and road) and Shangma village has been Fourth-class Road Shangma), and 8356 people in reconstruction reconstructed. The project reconstruction 2481 households. targets at the reconstruction for remaining

section of Shangma Village to Xiaohe Town.

5 Construction Subproject Type Project construction content Scope of project’s impact grade It is located in the south of Hanjiang River in the west of Xunyang County, Ankang City, running from south to north, and is the important village-to-village highway in the area. The planned project starts from the bridge head of Ci’an Bridge in Lijiaba, Reconstruction Duanjiahe Town in the north, runs southward Adopt the affect 1 town (Duanjiahe Town), of Lijiaba to Road along Lanmugou River, goes through technical standard 2 villages (Huangqiao, Baiguo village reconstruction Huangjiaqiao Village and ends in Taoyuan for extensional Baiguoshu Village), 742 road Village of Baiguoshu, with road length of highway households of 2609 people 5.540km. It is designed to set a branch line in Xiangjiana (arterial line K2+755). It runs from northeast to southwest along the branch of Lanmugou River and ends in Xiefangliang. The total length is 2.339km. The total distance of the project is 7.879km. Reconstruction project of highway from Zhangliang to Luojia is located in the north of Xunyang County, Ankang City, running from south to north. The project starts from Zhangliang Village of Laogongguan in the south, goes along the south mountain slope of Cuijiashan Mountain and across Lijia Adopt the Affect 1 town (Xiaohe Town), 2 Reconstruction of Road Yazi, stretches down the slope along technical standard villages (Zhangliang, Luojia village road from reconstruction Tizigou, goes through Zhaiyazi and then for extensional Village), 633 households of 2070 Beigou to Luojia goes down the slope in Huashubian. It goes highway people northward along the branch of Luojia River and ends in Luojia. The total length is 6.551km. A branch line is set between Lijia Yazi and the temple on mountain top, with the total length of 0.702km; the total distance of the project is 7.253km.

Construction Subproject Type Project construction content Scope of project’s impact grade Reconstruction project of highway from Yangpo to Liangheguan is located in the northwest of Xunyang County, Ankang City. Generally, it has a stretching trend of east to west. The planned project connects the Reconstruction of Adopt the Affect 1 town (Xiaohe Town), 3 current village-to-village road between village road from Road technical standard villages (Yangpo, Shuangni, Maopingjie and Yangpozhai in the west, Yangpo to reconstruction for extensional Liangheguan Village), 844 forming a Y-shaped plane crossing. It goes Liangheguan highway households of 2995 people eastward through Tianchiliang, Miaoyazi, Caojialing and Donggou and ends in Shuangni Village, developing a T-shaped plane crossing with current village-to-village roads. The total length is 16.618km. Affect one town (Duanjiahe It starts from Lvhe Town in Xunyang County Adopt Town), 7 villages (Beian, and stops at the end of Hanjiang River construction Xunyang section of Anxun Highway Road Gaobiliang, Xujiawan, Bridge via Duanjiahe Town, Zaoyang Town, standard for (G316) reconstruction reconstruction Huangqiao, Mituosi, Wenya, and Guanmiao Town, with the total length of secondary Lijiazhuang), with 3874 34.386km. national road households, 13622 people

1.1.2 Project investment and implementation process By February 28,2019, G316 (Xunyang Section), S102 and X304 have started construction. The preliminary work for village roads such as bidding has not been commenced by now. Total contract value of CNY 178 million were awarded for subgrade and pavement in G316. The contract value of S102 was CNY 484.7552 million composing of three sections. The contract value of X304 was CNY 60.7771 million composing of two sections. 1.1.3 Executing and implementing agencies

(i) Shaanxi Provincial Project Leading Group (SPPLG) and Its Office (SPPO) SPPLG is the leading agency responsible comprehensively for the overall deployment of the Project and solving major issues. The group will include Comprehensive Planning Division and Road Management Division led by a deputy director of Shaanxi Provincial Transport Department. SPPMO in Foreign Funds Financed Project Office (FFPO) is the working body of SPPLG as coordinating agency in charge of early-stage preparations, preparation of RP and ADB loan application, then after the implementation of the project, in charge of monitoring, coordination, instruction and evaluation of the RP implementation, as well as accepting the other works designated by Shaanxi Provincial Project Leading Group. (ii) Xunyang County Project Leading Group and Xunyang County Project Management Office (XCPMO) Xunyang County People’s Government is the implementing agency of this Project, and the project leading group consists of leaders from relevant bureaus, including transport bureau, land and resources bureau, resettlement bureau, development and reform bureau, etc. Xunyang County Project Management Office (XCPMO) under Xunyang County Transport Bureau is responsible for the project management, and coordination, including quality assurance and annual planning of the project, and the follow-up monitoring of the implementation, reporting to Shaanxi Provincial Project Leading Group regularly. The main responsibilities in resettlement include organizing the resettlement work of the project, developing the local policy on resettlement activities, coordinating relations among resettlement agencies at all levels, coordinating the work of the bureaus concerned at the preparation and implementation stages, and making decisions and consultation on major issues arising from construction and resettlement. (iii) Xunyang County Project Resettlement Office (XCPRO) The XCPRO, consisting of 4 persons, is responsible for identifying and confirming the

8 quantity of land acquisition and house demolition, special facilities and ground attachments, conducting the DMS and saving data; assisting in preparing the RP and implementing RP; selecting resettlement officials for operational training; organizing public consultation, and communicating resettlement policies; directing, coordinating and supervising LA and resettlement activities and progress; disbursing resettlement costs according to the agreement and handling grievances of APs; assisting and supervising the affected villages carry out economic rehabilitation plans and ensuring the income restoration of the affected people; carrying out internal monitoring, preparing internal monitoring reports and reporting to XCPMO. (iv) Town/township Government The town/township resettlement offices, headed by each Town/township leader are comprised of key officials of the land and resources office, public security bureau, civil affairs office and village committee. The main responsibilities are:  Participating in the survey of the subproject and assisting in the preparation of the RP.  Organizing public participation, and communicating the resettlement policies;  Implementing, inspecting, monitoring and recording all resettlement activities within the town;  Settling the house demolition and reconstruction;  Responsible for the disbursement and management of land compensation fees;  Supervision of LA, HD and house restoration;  Reporting LA, HD and resettlement information to the XCPMO;  Coordinating and handling conflicts and issues arising from its work. (v) Village committees and village groups The resettlement working team of a village committee or village group comprises its key community leaders and representatives of APs and with authorization of villagers’ convention. Its main responsibilities are:  Participating in the socioeconomic survey and DMS;  Assistance in preparing the Relocation and Resettlement Plan;  Organizing public consultation, and communicating the policies on LA and HD;  Organizing village meetings in discussing the proportion of compensation distribution to APs and supervision of the use of reserved funds in a village if any,  Choosing resettlement sites and distributing housing land for relocated families; Helping APs to get house construction approvals,

 Organizing the implementation of agricultural (including reserved land distribution) and non agricultural resettlement activities;  Reporting the APs’ opinions and suggestions to the relevant authorities;  Providing assistance to relocated households with difficulties, particularly the vulnerable families  Supervising land acquisition, housing and ancillary facilities demolishing and reconstruction;  Reporting the progress in land acquisition and resettlement;  Preparing clearance letter to confirm the facility and infrastructure restored and meet their requirement. (vi) Internal supervision agency Xunyang County Project Office set up an internal supervision office for land acquisition and resettlement, consisting of 2 persons. The duty of the office is to guarantee all the land acquisition and resettlement officers can fulfill their tasks, carry out the requirements of the RP, and guarantee all the affected people can get their rights and interests. The owner provides the design document, technical specifications and graphs and notifications, and discloses the design details to project management offices at each level. (vii) External independent monitoring and evaluation agency In August 2016, Shaanxi Kexin Consultant Company was engaged as external M&E agency. The main responsibility includes: monitoring all aspects of resettlement planning and implementation as an independent M&E agency, conducting base-line surveys, monitoring and evaluating the effectiveness of resettlement and the social adaptability of the APs, including women and vulnerable APs, and submitting M&E reports to SPPMO and ADB semi-annually; providing technical advice to the Resettlement Office in data collection and processing.

Figure 1-2 Project Relocation Organizations

1.2 Affected area The impact of land acquisition and demolition of the subproject involves 6 towns and 36 administrative villages/communities. See Table 1-2 for reference. Table 1-2 List of Towns and Administrative Villages affected by Road Components

Name of town/ Name of village/ neighborhood committee Construction content subdistrict affected affected Pinghuai, Qipan, Dongshan, Xiaohe, Liangheguan, S102-Xunxiao Xiaohe, Tongmu, Jiaoyuan, Quanling, Zhonggou, Hongyan, Highway Zhaowan, Ganxi Dalingtai, Shiziling, Ganxi Village, Liujiayuan, Zhangjiahe,Zhaowan,Huashan,Maoding X304-Shuxiao Bangzi, Zhangjiagou, Longwangtan, Kangjiaping, Xiaohe, Hongjun Highway Tiechang, Zhangliang, Xintianwan, Shangma Huangqiao, Baiguoshu, Zhangliang, Luojia Village, Village Road Xiaohe, Duanjiahe Yangpo Village, Liangheguan, Shuangni G316-Xunyang Duanjiahe Beian, Gaobiliang, Xuejiawan, Huangqiao, Mituosi,

Name of town/ Name of village/ neighborhood committee Construction content subdistrict affected affected Section of Anxun Wenya, Lijiazhuang Highway Total 6 36 Note: The original Beigou Village has been merged into Zhangliang Village.

2 Monitoring on project LA and HD 2.1 Monitoring procedure The external monitoring is undertaken by Shaanxi Kexin Consulting Company (the monitor) who was engaged by Shaanxi Xunyang Transportation Bureau. From August to September 2016, monitoring personnel prepared the baseline report of the impacts, payment and compensation of land acquisition and house demolition, and the procedure of contract signing at each section. From February 2017 to August 2018, the monitor completed the external monitoring reports of 4 stages with each stage of external monitoring lasted for half a year in affected areas of the project. In February 2019, the external monitoring organization carried out the v stage of external monitoring in affected areas of the project (monitoring period is from September 2018 to February 2019). It centered on the investigation of affected degree, compensation standard, payment, working progress as well as appeal and processing results during project implementation for the land acquisition and house demolition of affected villages and households. Meanwhile, external monitoring personnel systematically investigated the economic profile and development level of affected area and held the discussions with relevant departments of local government in certain area. 36 administrative villages/communities in 6 towns affected by the project are totally involved in the scope of external monitoring of both two phases. 2.2 Investigation methods The following methods were adopted to undertake this monitoring and evaluation:

 Review of records by providing a list of the records to be reviewed; consultations with implementing and other line agencies;  Site visits (i.e. resettlement sites, house plots, and affected villages/townships); and observations made during visits substantiated with photos (as Annexure to the report)  Interview and consultation with affected people;  based on the above (and any other information), analyze the RP implementation progress and effectiveness by using both quantitative and qualitative evidences.

2.3 Follow-up survey on geological hazards As of February 28, 2019，it is predicted the newly increased area of land acquisition shall be 286.15mu and house demolition 2,790m2 due to disasters. XCPMO has signed the agreement on land acquisition of 265.08mu with 239 affected households. The compensation for 203 affected households has been redeemed. The reasons for that the remaining 36 households affected by land acquisition did not sign the agreement are the

13 disasters are still in treatment, landslide is still happening, some agreements are still in negotiation and some disputes among the affected households exist etc. See details in Table 2-1. XCPMO has reached the oral agreement on predicted house demolition with affected households and they all chose cash compensation. But the final quantities of house demolition shall be determined by a professional institute with the safety assessment results upon full completion of all protective engineering. So, the written agreements with households of house demolition have not been signed yet. According to consultation, the agreements are expected to be signed in May 2019.

Table 2-1 Land acquisition in areas of landslide As of Feb 2019

Affected Area Land Type AH AP Payment status of Payment status of current Village/Commu Notes Town Dry- Dry- Homeste Forest s s previous agreement agreement nity flat slope ad land Xiaohe Liangheguan 14.5 9 31 Have signed, have paid Have signed, have paid Xiaohe Xiaohe 3 6 18 Have signed, have paid Have signed, have paid Xiaohe Pinghuai 2.8 1 4 Have signed, have paid Have signed, have paid Duanjiahe Lijiazhuang 2.47 0.15 13 24 Have signed, have paid Have signed, have paid Duanjiahe Lijiazhuang 2.1 5 22 Have signed, have paid Have signed, have paid Duanjiahe Xuejiawan 1.7 6 27 Have signed, have paid Have signed, have paid Duanjiahe Xuejiawan 0.4 0.8 4 21 Have signed, have paid Have signed, have paid Duanjiahe Xuejiawan 0.6 0.75 0.55 3 11 Have signed, have paid Have signed, have paid Duanjiahe Xuejiawan 0.91 1.35 0.45 9 36 Have signed, have paid Have signed, have paid Duanjiahe Xuejiawan 0.6 0.75 0.4 5 21 Have signed, have paid Have signed, have paid Duanjiahe Xuejiawan 1.5 0.5 0.6 5 22 Have signed, have paid Have signed, have paid Duanjiahe Xuejiawan 1.5 0.6 1.5 7 31 Have signed, have paid Have signed, have paid Duanjiahe Xuejiawan 0.4 0.55 0.3 0.2 4 15 Have signed, have paid Have signed, have paid Duanjiahe Xuejiawan 1.6 4.5 5 21 Have signed, have paid Have signed, have paid

Have not signed, have Have signed, part of Duanjiahe Xuejiawan 5.58 16.85 2.8 3.6 16 58 Landslide continued not paid compensation have paid

Duanjiahe Xuejiawan 4.2 0.85 2.52 10 42 Have signed, have paid Have signed, have paid

15 Affected Area Land Type AH AP Payment status of Payment status of current Village/Commu Notes Town Dry- Dry- Homeste Forest s s previous agreement agreement nity flat slope ad land Duanjiahe Mituosi 0.75 0.6 0.79 3 9 Have signed, have paid Have signed, have paid Duanjiahe Gaobiliang 0.91 1 3 Have signed, have paid Have signed, have paid Duanjiahe Gaobiliang 0.34 1.26 2.98 15 63 Have signed, have paid Have signed, have paid

Have not signed, have Have signed, have not It is newly added in Duanjiahe Gaobiliang 0.4 1 4 current period. The not paid paid landslide continues. Have not signed, have Have signed, have not It is newly added in Duanjiahe Gaobiliang 1 1 3 current period. The not paid paid landslide continues. It is newly added in Have not signed, have not Duanjiahe Gaobiliang 1.5 1 4 \ current period. The paid landslide continues.

Duanjiahe Gaobiliang 1.58 0.44 0.25 4.43 6 25 Have signed, have paid Have signed, have paid

Have not signed, have Have not signed, have not Duanjiahe Gaobiliang 0.3 0.5 0.4 8 6 27 Landslide continued not paid paid

Have not signed, have Have signed, have not The landslide Duanjiahe Gaobiliang 0.5 0.2 1 3 11 not paid paid continues.

Duanjiahe Huangqiao 2.58 0.44 3 10 Have signed, have paid Have signed, have paid Duanjiahe Gaobiliang 0.2 0.5 2 6 Have signed, have paid Have signed, have paid Duanjiahe Gaobiliang 0.85 0.5 0.5 3 11 Have signed, have paid Have signed, have paid Duanjiahe Wenya 1.16 0.83 2.59 5 17 Have signed, have paid Have signed, have paid

Duanjiahe Wenya 5.3 1.16 3.85 6 25 Have signed, have paid Have signed, have paid Duanjiahe Wenya 0.5 1 2 Have signed, have paid Have signed, have paid Duanjiahe Wenya 0.8 3 14 Have signed, have paid Have signed, have paid Duanjiahe Wenya 0.1 2.35 3 9 Have signed, have paid Have signed, have paid Duanjiahe Beian 1.38 5 22 Have signed, have paid Have signed, have paid Duanjiahe Beian 1 2 7 \ Have signed, have paid

Have not signed, have Ganxi Shiziling 8 6 21 Have signed, have paid not paid

Have signed, have not Ganxi Shiziling 0.4 1.5 3 10 Have signed, have paid paid

The remaining land is Have not signed, have Have signed for 1mu, Ganxi Shiziling 3.5 5 18 mainly for not paid have paid for 1mu. management.

Ganxi Dalingtai 0.66 0.45 3 10 Have signed, have paid Have signed, have paid Ganxi Dalingtai 25 2.14 2.86 13 45 Have signed, have paid Have signed, have paid

Have not signed, have Have not signed, have not Ganxi Shiziling 2.77 4.1 3 12 Disputes on forest not paid paid

Affected Area Land Type AH AP Payment status of Payment status of current Village/Commu Notes Town Dry- Dry- Homeste Forest s s previous agreement agreement nity flat slope ad land Have signed, the Have signed, the Two household in Zhaowan Zhonggou 9.22 2 7 remaining 2.67mu have remaining 2.67mu have disputes not paid not paid

Have signed, have not Have signed, have not Zhaowan Hongyan 5.2 5 21 paid paid

Zhaowan Zhaowan 0.45 0.95 0.12 7 23 Have signed, have paid Have signed, have paid Zhaowan Zhaowan 2.87 1.8 2 7 Have signed, have paid Have signed, have paid Zhaowan Huashan 3.91 0.08 0.46 1.63 5 18 Have signed, have paid Have signed, have paid

Have signed, have not Have signed, have paid for Zhaowan Quanling 22.1 3 11 paid two households

Zhaowan Quanling 2.29 5.16 2 7 Have signed, have paid Have signed, have paid Zhaowan Quanling 31.5 8 31 Have signed, have paid Have signed, have paid

It is newly added in Have signed, have paid for current period. The Zhaowan Quanling 1.75 1 0.84 4 8 \ two households landslide continues for unsigned household.

63.8mu, and 46 21.07mu, and 15 Total 66.6 68.88 6.27 144.4 254 944 households have not households have not signed; 13 households signed; 36 households

2.4 LA and HD Status The project refers to road construction, and the layout is characterized by linear distribution. Therefore, the project land appears as vast affected area and sporadic land occupation. The impact of LA&R is relatively scattered, and the quantity of LA&R is not huge. LA&R started in August 2016. Resettlement agencies of LA&R counted and registered resettlement impacts, and it has been confirmed in baseline report of resettlement of project. In February 2019, the monitor monitored the impact of acquisition and demolition of the subproject for fifth time and updated and confirmed the impacts of land acquisition and demolition. 2.4.1 Land Acquisition By February 28, 2019, the accumulative collective land acquisition of the subproject was 1717.78 mu, including irrigable land 64.32 mu, dry flat land 375.52 mu, homestead 56.57 mu, dry slope land 394.56 mu, forest land 920.23 mu and other land 6.58 mu, in which, land compensation of 1477.14 mu that was acquired by S012 and G316 (Xunyang section) has been paid. The collectively-owned land for which have reached an agreement or oral agreement for the land acquisition of X304 was totally 340.64 mu. Because there were some problems with the counterpart funds, only part of compensation for the land acquisition has been paid and it was planned to complete all the payment of the compensation in June 2019. Accumulative state-owned land acquisition area was 4.33 mu. See details in Table 2-2. Table 2-2 Data of acquired land As of Feb 2019 Land Type RP Updated completed in Completed in completed in RP last period current period total Collective Land 1331.29 1322.07 1721.24 96.54 1817.78 Homestead 56.49 71.95 54.05 2.52 56.57 Farmland Irrigated land 0 56.78 64.11 0.21 64.32 Dry flat land 487.73 305.62 350.98 24.54 375.52 Dry slope land 0 340.86 361.03 33.53 394.56 Forestland 431.16 460.71 884.89 35.34 920.23 Wasteland 355.91 300.58 \ \ \ Other land \ \ 6.18 0.4 6.58 State owned land \ \ 4.33 0 4.33

Currently, the actual land acquisition and demolition area is bigger than the planned. After analysis, the following reasons are concluded for data difference:  Related data of RP was from design drawing. Because remote sensing terrain mapping served as the projection area, and the actual LA measurement was conducted with tape measure on the incline, with the bar measurement error, so the actual number has increased; 20  RP only included LA within the red line, excluded the LA outside the red line, such as high cut slope excavation, high retaining wall slope toe, catchwater, etc. So, it's less than the actual quantity (Some sections of the road wall are changed to the embankment wall from the epaulement, and the permanent land increased due to moving outside of line of LA);  Part of the actual geology in high slope section was inconsistent with design, the design slope was smaller; during actual construction, the change of part slope resulted in increase of slope of LA (slope ratio of soil slope in part of excavation section changed into 1:1 from 1:0.75, thus increasing part of permanent LA);  During construction, high slope landslide of part of sections caused expansion of scope of LA.  Rest small amount of landslide between excavation section and residents housing or riverway or old road cut off the masses’ travel and affected aesthetic requirements of trunk highway, so as to increase part of permanent land.  The tunnel slope was the original slope accumulation body, and the side slope was collapsed after the instability. After the adjustment of the design change, part of permanent LA was levied.  The entrance of Goujiashan Tunnel is half bright and half dark. The permanent LA occurred due to inconsistence between design ground line and actual condition of tunnel exit.  The permanent LA occurred due to inconsistence between design ground line and actual condition of Yujiawan Tunnel Exit.  As the project is located in the mountainous area, there were newly increased land acquisition and house demolition for the geological disasters of different degrees in the rainy season every year. Especially, landslide happened frequently in some areas, which brings about a lot of landslides.

2.4.2 House Demolition

By February 28,2019, the subproject has accomplished residential housing demolition agreement of 44916.11m2, including brick-concrete house 28878.01m2, brick-wood house 6883.23m2, soil-wood house 6061.73m2 and makeshift house 3093.14m2.

The compensation for 31966.58m2 of S102 and 9339.32m2 of G316 Project have been paid. It was found in the last monitoring that, due to the financial problem of X304, the house demolition fund was not paid. According to the investigation and verification of this monitoring, these compensation funds had been paid to the households from December 2018 to January 2019. X304 has reached house demolition of 3610.21m2 accumulatively, the compensation funds of which have all been paid to the households. See details in Table 2-3. Table 2-3 Statistical table for house demolition As of Feb 2019 Updated completed in Completed in completed in Structure Unit RP RP last period current period total Brick-concrete m2 22758 19342.7 26707.82 2170.19 28878.01

Updated completed in Completed in completed in Structure Unit RP RP last period current period total Brick-wood m2 2736 1025 4967.99 1915.24 6883.23 Earth-wood m2 5928.1 4582.3 3249.9 2811.83 6061.73 Makeshift house m2 902 2835 1495.51 1597.63 3093.14 Total m2 32324.1 27785 36421.22 8494.89 44916.11

The demolition area is bigger than the planned and the main reasons have been stated in Section 2.4.1. In addition, due to the complex terrain in the mountainous area, the demolition of some houses has a greater impact on the residential safety of the affected households, so the unplanned houses seriously affected will be demolished together. Currently, the house demolition work hasn't been finished and the similar condition may happen again. The monitor will pay close attention to the subsequent house demolition and compensation. By February 28, 2019，S102 has accomplished the non-residential building demolition of 3871.5 m2 accumulatively, including plant, raw material store, warehouse and other non-residential buildings. The removed non-residential buildings belong to two enterprises: Ganxi Township Yuansigou Shale Brickyard and Xiaohe Township Qianyouhe Gravel Plant. Both enterprises choose monetary compensation and have signed the compensation agreement. After receiving the compensation, the enterprises have moved out. 2.4.3 LAR Impact status As of February 28, 2019, 1860 HHs affected by the land acquisition have signed the agreement, in which, 1033 AHs by collective land acquisition and 5 AHs by state-owned land acquisition by S102 and G316 have signed the agreement formally and were paid the compensation; 827 HHs affected by Project X304 have made oral agreement. 238 households affected by house demolition including 148 HHs by S102, 61 HHs by G316 and 28 HHs by X304 have signed the agreement formally and were paid the compensation. The project fully respected the relocation willingness of the affected households. Among 238 AHs, 28 AHs chose centralized settlement ,175 AHs chose local settlement, and 35 AHs chose cash compensation. See Table 2-4 for acquisition and demolition details.

Table 2-4 Household affected by LA&R As of Feb 2019 completed in last Completed in RP Updated RP completed in total Impacts period current period AHs AHs AHs AHs AHs Loss of Cultivated land 1340 1525 1844 16 1860 Loss of forestland 601 674 651 8 659 Loss of Homestead 153 176 192 46 238 Loss of wasteland 402 346 \ \ \ Loss of other land \ \ 7 0 7 Total - Affected by land loss 1342 1527 1844 16 1860 Centralized settlement 16 20 9 19 28 Loss of local settlement 62 66 152 23 175 house/structures complete currency 94 109 31 4 35 Total without overlapping Households losing 10% or more of Severely Affected 5 10 0 0 0 their productive assets Vulnerable 1302 Poor, disabled, women headed etc 908Persons 908 Persons 0 908Persons category Persons

The increase of affected household is due to: 1) The reasons why the affected household increase were stated in section 2.4.1; 2) In original RP, it was regarded that those living together was in one household, however, during the baseline report, the household with persons living together actually were separated in family register; hence, one household in original RP may be three households or even five. Therefore, the affected households increased; 3) The affected household increase was caused by the actual conditions of engineering construction, including drawing survey errors, explosion, protective engineering and geological disasters. 2.4.4 Compensation standard of LA & HD A. The compensation for all Land Acquisition will follow these principles: According to the provision of Land Administration Policies in Shaanxi (Shaan Zheng Fa [2010] No.36), the unified AAOV and compensation multiple of Xunyang County shall be determined by Land Administration Policies in Shaanxi, with AAOV of CNY 1,197 for irrigated land , 25 times of compensation multiple, and compensation standard is CNY 29,928 per mu. Based on Supplementary Notice on Urban Construction LA & HD and Endowment Insurance of Land-requisitioned Farmers in Ankang City (An Zheng Fa [2009] No.15) and on-site public consultation activities, the resettlement plan proposes the compensation standard of project land acquisition based on the above-mentioned policies as basic compensation standard (See Table 3-1), of which, compensation standard of rural collective land is higher than that of unified AAOV in Xunyang County. The above-mentioned compensation standard is confirmed as that after land is weighted, and the specific land category identified by local land department shall prevail after the project implementation. B. The compensation for all houses demolished will follow these principles: (1) Compensation will be given in the principle of compensation for demolished houses and compensation for relocation household with same structure, same area and same location regulated in RAP. Based on house demolition plan and structure and type of houses, the affected persons shall receive direct compensation without depreciation for the original house. Meanwhile, the affected people can use the building materials of the original house free of charge/cost. (2) The affected people losing their houses can choose scattered resettlement by the affiliated village, or choose concentrated resettlement by participating in new rural construction scheme or other planning construction projects of the government, or

24 self-settlement by using cash compensation. The relocated households will receive the compensation of temporary transition fee during the transitional period before moving into their new houses, they can make arrangement by themselves or ask their village committee or project office to assist in leasing houses. According to the ADB policies or relevant regulations of China, both rural resident houses in state-owned land and rural resident houses in collective land adopt the method of price evaluation. The house demolition of this project shall be compensated based on “replacement price”, and the compensation fees is evaluated and determined through market price, which is no less than LA & HD basic price formulated in this plan, and the compensation price formulated in the plan keeps flat with market evaluation price of houses in the same area basically. Relocated homestead will be received before relocation, and the specific housing site shall be determined by villager’s representative congress of Village Committee, which shall be arranged within the same village group or village as much as possible. The “three supplies and one leveling” for the homestead will be carried out by the project construction unit, and the expense is included in construction budget. According to An Zheng Ban Fa [2009] No.15 Document, and by the reference of “Notice on Printing and Issuance of LA &HD Work Program for Xuyang Section of Xikang Second Line Project” (Xun Zheng Ban Fa [2009] No.191 Document), this resettlement plan updates the new compensation standard of LA&R: CNY 1,000/m2 for frame structure, CNY 900/m2 for brick-concrete structure in category I, CNY 650/m2 for brick-wood structure in category I, CNY 500/m2 for earth-wood structure of category I, and CNY 200/m2 for simple house. Relocation cost is CNY 1,000 per household. During the period of resettlement, transition fee is paid to each household, and the standard ranges from CNY 250 to CNY 400 for per household per month. In addition, based on the standard requirement for resettlement work in Southern Shaanxi in Shan Zheng Ban Fa [2014] No.47 Document issued by the General Office of Shaanxi Provincial People’s Government, each relocated household is awarded the incentive fee of CNY 10,000-45,000. Therefore, after the project is implemented, the new compensation standard will be higher than that of original resettlement plan. （3）The “three supplies and one leveling” for the homestead will be carried out by the project construction unit, and the expense is included in construction budget. According to the identification of Xunyang Bureau of Land Resources for the land along the line of Shuxiao Road (Shangma to Xiaohe Section), land in this area belongs to the rural land in Area V, and the land price standard for Area A acts as the basis for the

25 formulation of the compensation stand to be executed. The house demolition and compensation standard is formulated by referring to Standard for Building Replacement Value in Urban Area of Xunyang County 2015 and Compensation Standard of Xunyang Hydropower Station for Relocation, Demolition, and Resettlement of Construction Land (Xun Zheng Ban Fa [2015] No.192) and combining the actual building replacement value in the project area. Liujiayuan Village in Ganxi Town shows high output value because of it’s irrigable land. After negotiation, the compensation price for the irrigable land in this village is CNY 5/mu higher than other affected villages. As the demolition plan is formulated in accordance with the survey and primary design, there may be difference between the plan and the actual situation in the land acquisition and house compensation type. However, the land acquisition and demolition compensation standard implemented is not lower than that in the demolition plan. See the detailed actual situation in table 2-5.

Table 2-5 Statistics of LA&R Compensation Standard

Rates in updated Type of loss Rates in RP implemented rates remark RP There is no land in the town influenced by Land Loss the actual land expropriation of the project. Class I (Town CNY'0000/ 6 6 6 planning area) mu As the Mu output of the irrigable lands of Liujiayuan Village, Ganxi Town is higher Irrigable Class II (rural CNY'0000/ 3.8 3.8 3.8 than other areas. After negotiation, the land land in Area II) mu irrigable lands of the village will be compensated at CNY 50,000/Mu Class III (rural CNY'0000/ \ \ 3 land in Area V) mu Class I (Town CNY'0000/ 5.4 5.4 5.4 planning area) mu Dry flat Class II (rural CNY'0000/ 3.4 3.4 3.4 land land in Area II) mu Class III (rural CNY'0000/ \ \ 1.875 land in Area V) mu Class I (Town CNY'0000/ 4.5 4.5 4.5 planning area) mu Dry slope Class II (rural CNY'0000/ 3 3 3 land land in Area II) mu Class III (rural CNY'0000/ \ \ 1.3125 land in Area V) mu Class I (Town CNY'0000/ 4.86 4.86 4.86 planning area) mu Class II (rural CNY'0000/ Homestead 3.8 3.8 3.8 land in Area II) mu Class III (rural CNY'0000/ \ \ 2.25 land in Area V) mu Class I (Town CNY'0000/ 2.25 2.25 2.25 planning area) mu Forestland Class II (rural CNY'0000/ Farmland returning 0.45 0.45 land in Area II) mu to forest 3.45; Cash 27

Rates in updated Type of loss Rates in RP implemented rates remark RP tree 1.2; Firewood forest, timber forest: 0.8; Clutter shrubbery: 0.45 Cash tree 1; Firewood forest, Class III (rural CNY'0000/ \ \ timber forest: 0.6; land in Area V) mu Clutter shrubbery: 0.4 CNY'0000/ Wasteland 0 0 0.04 mu Loss of House/structure Frame structure CNY/m2 1000 1000 \ Class CNY/m2 900 900 1000 I Compensation standard for rural area in Area V is as below: brick concrete (Class Class Brick-concrete CNY/m2 \ \ 900 I):CNY 900, brick concrete (Class II): CNY II 850 Yuan, brick concrete (Class III):CNY Class CNY/m2 \ \ 850 750 . III Brick-wood CNY/m2 520 520 650 Earth-wood CNY/m2 400 400 500 Makeshift house CNY/m2 200 200 200 250~400/HH/mo 250~400/HH/month, 250~400/HH/month Resettlement subsidy for each household: Transitional subsidy CNY nth，Calculated at Calculated at 6 ，Calculated at 12 CNY 250 for 3 people or more; CNY 300 for 6 months months months 4-6 people; CNY 400 for 7 people or more. Water and electricity CNY /HH 1000 1000 1000 and moving subsidy Aid fund is arranged based on the 1% of basic costs 1% of basic costs as Vulnerable category people uniform poverty as special fund special fund alleviation plan of local government. 1. Offer working 1. Offer working There were no affected households with riously Affected (losing 10% or more of the opportunity opportunity requiring \ losses more than 10% during the productive assets) requiring no skills no skills for at least implementation. 28

Rates in updated Type of loss Rates in RP implemented rates remark RP for at least one one family member family member of of affected affected households; 2. Skill households; 2. training; 3. Credit Skill training; 3. and loan for those Credit and loan require for those require improvement of improvement of production; 4. production; 4. Provide assistance Provide in terms of obtaining assistance in the permission of terms of transportation obtaining the service business. permission of transportation service business.

There are several descriptions for support policy of vulnerable groups:  Local government is the executing agency of the project. In terms of the support on the poor households, government plans uniformly, but shall not treat them differentially due to different projects. According to the survey, once the households affected by the project are determined as poor households, they shall be incorporated into the range of poverty alleviation policy in a unified way.  Poor families can enjoy full interest subsidized poverty alleviation loan, which can help them develop their livelihoods. The direct discount method is adopted for the loan interest, which is deducted from the poverty alleviation reserve fund by the Financial Department quarterly.  The affected poor families will be included in the medical insurance and rescue system. Besides the new rural cooperative medical insurance, they also enjoy the medical assistance for major and very serious diseases.  The project will fully assist the whole process of settlement of poor families.  The affected poor families will be preferentially arranged to participate in the agricultural training and skills training.  The poor families will be provided with seeds of high-yielding economic crops or cubs of livestock freely and be guided for scientific plantation and cultivation. On the whole, the support policy for vulnerable groups carried out by the project can provide the poor households with the support in health care and assistance, subsidized loan, etc. In the long term, the aid fund enjoyed by affected poor households is far more than 1% of basic charge specified in RP.

2.5 Temporary land occupation As of February 28,2019，the subproject has a temporary land expropriation a of 67.139 Mu, mainly used for stacking engineering materials. Refer to table 2-6 for details. Table 2-6 Temporary land occupation statistics As of Feb 2019 County Town Village/Community Temporary land（mu） Xunyang Zhaowan Zhaowan 20.649 Xunyang Zhaowan Hongyan 11.72 Xunyang Hongjun Shangma 12.32 Xunyang Xiaohe Tiechang 5.35 Xunyang Xiaohe Zhangliang 6.8 Xunyang Xiaohe Zhangjiagou 3.12 Xunyang Xiaohe Longwangtan 4.79 Xunyang Xiaohe Kangjiaping 2.39 Total 67.139

2.6 Ground attachments During implementation, after detailed verification and confirmation with affected person, the ground attachments have been compensated based on market valuation according to the principles in the RP. By February 28,2019, a total of CNY 11,077,094 has been paid as the compensation for ground attachment. See details in Appendix 4.

2.7 Affected vulnerable groups The vulnerable groups affected by the project mainly include the elderly with no other supporting family members, single-mother families, orphans, family under MLSS, the disabled, poverty families, etc. According to the poverty line standard 3070 yuan per year/ person of Xunyang County, there are 908 disadvantaged groups included in the affected population by the completed land expropriation and demolition. According to the survey, poverty was induced by: (1) Harsh living and production conditions due to geographical location, such as high mountain, poor soil, cold and dry weather; (2) low value-added grain dominated production model due to remote geographical location and poor road condition; (3) Lack of skill – limiting access as migrant labor seeking outside non-farming waged jobs; (4) lack of information; and (5) illness or disability or too senior.(6) Because the kids attend school, tuition fees and living expenses cause a huge burden to the families.

2.8 Survey of socioeconomic situation of the project affected area 1) Socioeconomic Profile of AnkangCity Ankang City is located in the southeast of Shaanxi Province, adjacent to Qinling Mountain to the north and Bashan Mountain to the south. East-west Hanjiang River crosses it and a basin valley is in the center. Ankang City administers 1 district and 9 counties such as Hanbin District, Xunyang County, Baihe County, Shiquan County, Pingli County, Ziyang County, Langao County, Ningshan County, Zhenping County and Hanyin County as well as 161 towns/townships, with an area of 23,529 km2 and a population of 2.6689million. In 2018, Ankang City achieved the regional GDP of CNY 1133.77 billion, increased by 10.5%. Of which, added value of primary industry is CNY 123.25 billion, increasing by 3.8%; that of secondary industry is CNY 620.8 billion, increasing by 13.5%; that of tertiary industry is CNY 383.72 billion, increasing by 7.2%. Urban per capita disposable income is CNY 24977, increasing by 8.3%; and rural per capita net income is CNY 9504, increasing by 9.4%. See Table 2-7 for details.

Table 2-7 Social and Economic Status of Ankang City in 2018

No. Item Unit 2018 1 Land area km2 23529 1.1 Cultivated land area 10,000mu 513.24 2 Population 10000Person 266.89 2.1 Non-agricultural population 10000Person 129.76 2.2 Agricultural population 10000Perdons 137.23 3 GDP CNY 100 million 1133.77 3.1 Primary industry CNY 100 million 123.25 3.2 Secondary industry CNY 100 million 620.8 3.3 Tertiary industry CNY 100 million 383.72 3.4 Per capita GDP CNY/person 42544 Urban per capita disposable 4 CNY/person 24977 income 5 Rural per capita net income CNY/person 9504 Source: 2018statistical bulletin and yearbook of Shaanxi province and Ankang City.

2) Socioeconomic profile of Xunyang County Xunyang County is located in the southeast of Shaanxi Province, east section of Qinling-Bashan Mountains, and Hanjiang River flows through it. The County is situated on the intersection of Hanjing River and Xunhe River with the river flowing twistily, which looks like Taiji, hence, it is known as “Chinese Natural City of Taiji”. There are 318 villages (communities) in 22 towns in the county, with a total area of 3,554 km2, and a total population of 450,000; the economic and social development is at the initial stage of industrialization. In 2018, the GDP of Xunyang County was CNY 187.99 billion, increasing by 10.1% compared to that of previous year. Of which, GDP of primary industry is CNY 17.57 billion, increasing by 3.8%; that of secondary industry is CNY 109.1 billion, increasing by 13.5%; that of tertiary industry is CNY 61.32 billion, increasing by 6.5%. Urban per capita annual disposable income was CNY 24940, increasing by 8%; and rural per capita net income was CNY 9772, increasing by 9.5%.See table 2-8 for details. Table 2-8 Social and Economic Status of Xunyang County In 2018 No. Item Unit 2018 1 Land area km2 3554 1.1 Cultivated land area 10,000mu 54.99 2 Population (Changzhurenkou) 10000Person 45.7861 2.1 Agricultural population 10000Person 33.9386 2.2 Non-agricultural population 10000Perdons 11.8475 3 GDP CNY 100 million Yuan 187.99 3.1 Primary industry CNY 100 million Yuan 17.57 3.2 Secondary industry CNY 100 million Yuan 109.1 3.3 Tertiary industry CNY 100 million Yuan 61.32 3.4 Per capita GDP CNY/person 37065 4 Urban per capita disposable CNY/person 24940 income

No. Item Unit 2018 5 Rural per capita net income CNY/person 9772 Source: 2018statistical bulletin and yearbook of Shaanxi province and Xunyang town. 3）Socioeconomic profile of affected townships and villages The project LA & HD affects 6 towns in Xunyang County, including Xiaohe, Tongmu, Zhaowan, Ganxi, Hongjun and Duanjiahe Town. There are 30760 households with 99333 people, and 57546 rural labor forces in the six towns. See Table 2-9. Table 2-9 Social and Economic Status of the Affected Towns In 2018

Rural actual Rural per Per capita Populati Cultivated HH capita annual Town HHs labor cultivate on land (mu) Size net income land (mu) (person) (CNY) Xiaohe 7463 24307 13781 31915 3.26 1.31 14699 Zhaowan 5660 15779 9677 36133 2.79 2.29 13140 Tongmu 3825 13340 7671 14410 3.49 1.08 12376 Ganxi 5444 16579 9042 41380 3.05 2.50 13912 Hongjun 3348 11828 6657 24446 3.53 2.07 13416 Duanjiahe 5020 17500 10718 17258 3.49 0.99 12877 Total 30760 99333 57546 165542 3.23 1.67 13534 Data source: Survey on impacts on society, economy and physical objects in February 2019. 4) Poverty in project areas In 2018 In 2018, the total population of 36 affected villages was 10651 HHs and the total of poor HHs was 4,6423. The poverty rate in the 36 affected villages is generally higher than the national average, and only five of the villages with a poverty rate higher than 10 times is lower than the average poverty rate in Shaanxi Province. The overall poverty rate of the affected villages is generally higher than the national average, and even in Liujiayuan Village, which has the lowest poverty rate, the poverty rate is still higher than that of national average for 0.35%.Thus, the affected areas of project implementation In 2018 still belonged to the economy-backward areas. See table 2-10 for details. Table 2-10 Correlation Table on Prevalence Situation of Poverty in Project Areas

2018 2018 Poor poverty Village Total Poverty national Town population incidence /community population incidence poverty (person) in Shaanxi incidence Province Pinghuai 1109 283 25.52% Qipan 1107 278 25.11% Xiaohe Dongshan 1239 416 33.58% 1.70% 3.20% Xiaohe 969 191 19.71% Liangheguan 1096 279 25.46%

2018 2018 Poor poverty Village Total Poverty national Town population incidence /community population incidence poverty (person) in Shaanxi incidence Province Bangzi 1126 249 22.11% Zhangjiagou 1018 334 32.81% Longwangtan 1345 288 21.41% Kangjiaping 991 200 20.18% Tiechang 1001 258 25.77% Zhangliang 1336 491 36.75% Xintianwan 511 141 27.59% Luojia 734 203 27.66% Yangpo 1131 350 30.95% Shuangni 768 274 35.68% Tongmu Jiaoyuan 334 121 36.23% Dalingtai 1373 43 3.13% Shiziling 1290 40 3.10% Ganxi Ganxi 1831 58 3.17% Liujiayuan 1364 28 2.05% Zhangjiahe 1099 26 2.37% Hongjun Shangma 1028 302 29.38% Huangqiao 1607 422 26.26% Baiguoshu 1002 366 36.53% Beian 1608 536 33.33% Gaobiliang 2680 707 26.38% Duanjiehe Xuejiawan 2459 885 35.99% Mituosi 1287 273 21.21% Wenya 1655 533 32.21% Lijiazhuang 2326 633 27.21% Quanling 2667 271 10.16% Zhonggou 1164 312 26.80% Hongyan 903 271 30.01% Zhaowan Zhaowan 1050 191 18.19% Huashan 1220 217 17.79% Maoding 995 181 18.19% Total 36 46423 10651 22.94%

3 Land acquisition, house demolition and resettlement

3.1 Impacts and cost of LA & HD As of February 28, 2019, the agreements of 1033 AHs by collective land acquisition and 5 AHs by state-owned land acquisition have been singed in Xunyang section of S102 and G316, and the land acquisition compensation has been paid, of which 209 households were affected both by land acquisition and house demolition. 827 HHs affected by the X304 have reached oral agreements on land acquisition and house demolition, of which, 32 households were affected both by the land acquisition and house demolition. To date, 28 affected households by house demolition have signed the agreements on demolition and the compensation has been paid. For the affected household not signing agreement, XCPMO is under active negotiation with affected households in order to resettle them properly. The total compensation incurred in the subproject was about CNY 88,401,481, among which, CNY 35,839,271 was paid as land acquisition compensation (including temporary land occupation compensation), CNY 11,077,094 was compensation for ground attachments, and about CNY 41,485,116 was compensation for house demolition; see details in Table 3-1. All compensations have been conducted according to the principles of RP; collective land acquisition was carried out based on the agreement of land acquisition and house demolition agency, the affected village (group) and the affected person; the house demolition was carried out through negotiation of land acquisition and house demolition agency and affected persons.

Table 3-1 Compensation on land acquisition and house demolition As of Feb 2019

Compensation and Disbursement

Disbursed in Category Unit compensation Disbursed in disbursed in RP updated RP the current remark signed the last period total period

Compensation for CNY 39,339,985 40,843,985 35,839,271 33,729,014 2,110,257 35,839,271 Collective land

The state-owned

Land land shall be State-owned land CNY 0 0 0 0 0 0 allocated directly without compensation.

Subtotal CNY 39,339,985 40,843,985 35,839,271 33,729,014 2,110,257 35,839,271

Monetary House compensation for CNY 27,755,450 23,455,450 41,485,116 34,683,914 6,801,202 41,485,116 demolition house demolition

Compensation for

others Ground CNY 1,018,000 1,017,000 11,077,094 10,761,420 315,674 11,077,094 attachments and

Total CNY 68,113,435 65,316,435 88,401,481 79,174,348 9,227,133 88,401,481

3.2 Resettlement plan and economic recovery measure Field surveys revealed that most of the affected houses have potential safety hazards and are out of repair, and have worse water, electricity supplies and road accessibility, and poor surrounding area sanitation. According to the principles of replacement cost and no depreciation, most affected persons thought that the compensation based on the standards in the RP was reasonable. The subproject also provided several options for APs to choose based on their own conditions, which positively facilitated to restore or improve their living condition smoothly. The major options include:

(1) Cash Compensation without housing plot allocation

a) Cash compensation for new house purchased voluntarily For those households with alternative houses in the city or nearby places or who plan to buy commercial residential house in town and then to give up reconstructing new houses, a written application is required. In addition to cash compensation of housing lot and replacement price of house structure including annex buildings paid in cash to AH directly, an additional resettlement subsidy of CNY 10,000~45,000 per person will be granted once the written application is approved.

b) Cash compensation with existing house expanding or rehabilitation Households with an existing house have potential to add more floors, or where the housing plot is big enough to add an annex building, the AP does not need another housing plot. If APs choose this option, a written application is required. In addition to cash compensation of housing lot and house structure including annex buildings, an additional resettlement subsidy of CNY 10,000 ~ 45,000 per person will be granted once the written application is approved.

(2) Centralized relocation in “Village development planning of new village” For those who are willing to purchase new houses on residence zone based on village development planning of new village, cash compensation for homestead and replacement price will be paid to AH directly. In addition, discount has been negotiated completely and corresponding commitment has been made. On the whole, both location and quality of house are better than that of planned demolition house. According to the investigation, the house price for the affected people is CNY 1,000-1800/m2, which is only construction cost and meets demolition compensation standard confirmed in the resettlement scheme as well as is far below the price of congeneric commercial housing residential. AF accepted survey believed that such arrangement is quite reasonable and acceptable.

(3) Individual reconstruction on the government allocated housing site If the households have difficulties finding a housing plot, but still want to reconstruct their new houses, the town government has committed to provide the AHs with housing plots acceptable to them. The price will not exceed the compensation standard regardless of actual costs (no matter how much the cost is). There will be no additional cost to the AHs. The provided housing plot can either be in a concentrated area or a single housing plot. In any case, water, electricity supply and road facility will be made available, and the land leveling will be done by the project. The design fee also will be covered by the project. (4) Economic recovery and development plan For households affected by land acquisition house demolition, all affected villages are implemented economic recovery plan, which provides effective support for economic recovery of people affected by land acquisition house demolition; for example, after implementation of the project, small amounts of land are expropriated, economic recovery is intensively carried out in affected villages. Currently, each village has formulated economic recovery plan, strives for folk and project implementing agency to provide support for recovery and development of the local economy. Economic recovery and development plan mainly includes: 1) Strengthen agricultural science & technology education, improve labor productivity skill and labor quality. 2) Actively organize surplus labor and participate in labor service export of project construction to increase income. 3) Assist relocation households in engaging in tertiary industry and increase approach of economic sources. 4) Reform surplus land and increase output value of unit land. 5) Promote the circulation of agricultural and sideline products and increase the income of agricultural and sideline products. Through the implementation of above measures, the lives of residents in the affected village by the project, such as income increase and production development, have been obviously improved. According to the survey, as of February 2019, in respect of taking a town as a unit to improve the living standard of the families affected by land acquisition and house demolition. During this monitoring period, a total of training sessions on cultivation, breeding and vocational skills were held, with 320 person-time of training, and of which 270 person-times were from low income families, and women participants were 50%; The recruiting of 38

construction workers of the subproject have been given the priority to the affected households, the local labor force has been employed accumulatively 778 persons one month, with the average monthly income of about CNY 3,000, of which 56 are women and 45 are from low income families. The women employed are mainly engaged in cooking, chores and other work with an average monthly income of more than CNY 2,500. The employee from low income families are mainly engaged in drivers, chores and other work with an average monthly income of more than CNY 3,800. For example, S102 Pavement Engineering Project Department on March 5, 2019 publicly issued a recruitment of 24 employees, including women, poverty households, and the affected households by acquisition and construction were given a priority.

Figure 3-1 Notice on recruitment of workers Subject to the influence of the project of G316 Xunyang section, Dujiahe Town adopted enterprise establishment+ tourism + farmer mode to increase the income of the affected families and has implemented a contiguous scale cultivation of cherry in Xuejiawan village of the town and conducted the industrial development projects. The government has carried out the overall planning and design around the abandoned slag plant in Caojiagou of Xuejiawan Village, and set up 30 jobs by building farm stay, farmer's market and bus stations. The local government, combined with the implemented poverty alleviation project,

has built artificial ground of 30 Mu, a cherry orchard of 2500 Mu (original 500 mu, 2000 Mu new built from 2015 to the end of 2016), planting yellow flowers under forest of 1000 Mu, which has solved 400 short-term employment, and the garden daily management has solved 80 people employments. The affected families of the project have participated in the cherry development project of Xuejiawan Village in different degrees, giving consideration to both affected families and workers at the same time, with an annual income increase of about CNY 13 thousand. The settlement scheme of housing demolition is mainly the monetary compensation to these families, supplemented by policy supporting, which has simplified the examination and approval procedure and fully given respect to the willing of these families. Ensure that farmers who lost their lands are not unemployed and their income is not reduced. (5) Economy recovery plan for vulnerable groups The main affected vulnerable groups all are the poor, totally 462 households, including single parent family and women-led family, Wubao (five-guarantee households), households affected by disability and illness. A series of additional measures have been put in place to help them in livelihood restoration and relocation restoration. A. Including eligible vulnerable groups in MLSS as a priority According to the Minimum Living Standard Scheme (MLSS) policy of Xunyang County for rural residence, eligible vulnerable groups affected by the Project will be included in the MLSS in time and receive MLSS benefits so as to ensure that the per capita net income of each rural AH is not less than CNY 3,015 a year. B. Providing rural medical assistance to eligible vulnerable groups Rural medical assistance will be provided by Xunyang County Government to eligible vulnerable groups to solve the problems that they have difficulty in receiving medical treatment. Due to low income or no income, with the addition of suffering from serious illness, children’ educational problems, etc. as well as local backward economy and unfulfillment of medical security, farmers in mountain area go to hospital only until physical problems are very serious, and they have missed the best treatment time of disease at that time. It is a problem that vulnerable groups have difficulty in receiving medical treatment. PMO, town and village committee that affected person is located to research, assess, confirm and reserve CNY 50,000 as reserve fund of medical subsidy for vulnerable groups, which shall be used as medical assistance for vulnerable groups families affected by the project, and the maximum amount for each household is no more than CNY 4,000. C. Giving priority to vulnerable groups in resettlement measures

Land acquisition affected households: For vulnerable groups, the following measures are specified to assist them.  Priorities will be given in obtaining replacement land through allocation of reserved land, or through land transfer if the vulnerable AH chooses to restore their income through agricultural measures. The measure has been executed.  The households with a labor force will be given priority in skill training, public welfare positions in government and reserved positions in the project and local government. In case of meeting the condition, small sum guaranteed loan will be given in priority. The measure has been executed. If needed, the affected vulnerable group can apply for assistance and have the priority to obtain help.  Priorities will be given in LEF endowment insurance and new rural endowment insurance to eligible AH. The measure has been carried out by District Government in a unified way.  If necessary, provide preference loan to the significantly affected households in developing non-farming business, such as purchasing vehicles for transport business, operating repair shops, developing other income generating business, detailed plan will be discussed during implementation. The affected households can apply for help according to their own actual demand and obtain the assistance of the measure.  Apply for special recovery funds established by the project to restore production and living subsidy. XCPMO, town and village committee where affected person is located will provide additional CNY 3,000-5,000 for the vulnerable households to assist in their production restoration and life improvement. As presented in Section 2.4.4 for the transformation of government’s unified poverty alleviation policy, the special funds have been integrated into other counterpart poverty alleviation programs. House demolition affected households: For vulnerable groups, the following measures are specified to assist them.  Priorities will be given to vulnerable group to choose resettlement locations, floors, size, and etc.  They can apply for special recovery funds established in the project for production recovery and living subsidy. XCPMO, town and village committee where affected person is located determined that CNY 5,000 was provided for affected vulnerable groups families, which was used for living allowances and resettlement subsidy in transitional period  Economic housings were provided for the poor.

The measures above have been implemented at the time of the resettlement of low income families, the low income families which are willing to move in the centralized settlement buildings will gain the policy subsidy, they can spend only a few money to get a set of apartment for their resettlement, and most of the compensation for the house demolition can be saved. The total compensation (including policy subsidy) that the low-income families who rebuild their houses can gain is higher than the standard of RP.

(6) Women’s Development Measures During the resettlement process, women’s rights and interests will be fully protected, and women will play an important role in socioeconomic and resettlement activities. To ensure women’s rights and interests, the following relevant measures have been adopted: A. Provide and assist women in applying for job opportunities related to the project: For those who are interested in participating in project job opportunities, Women’s Federation staff at the township and village levels will be responsible for informing them of job opportunities in advance and facilitate women to apply for the employment. Basic skill on landscaping and other relevant skill training will be provided prior to recruitment. After project implementation started, 56 local women have participated in, and all work contents were available to them, including: traffic safety officer, carrying, cooking, tidying the engineering objects and chores. They also got the corresponding remuneration, which was far higher than agricultural production income calculated with the daily average income. The remuneration is helpful for their daily life at home; meanwhile, women will play a more important role in family. B. Enhance the women’s ability to use media: Provide conditions and opportunities for rural women to contact, study and use mass media; support and promote rural women to enhance the ability to use media and communication technology; encourage non-government institutions and enterprises to use various information communication technologies to help women gain information and service. C. Provide preferential training method and contents for women: As women have relatively lower education levels and experience generated in migrant jobs, they have less available employment and income generation choices than men. Training is particularly crucial to them in developing new income sources becoming available through industrialization and urbanization development. They hope to have not only agricultural skill training on horticulture, fruit tree caring, but also non-farming skills with handicraft, urban employment skills such as hotels, restaurants, shopping malls, and 42

garment factories in factories e.g. Women’s training needs has also been covered in RP, and training budget are reserved at the same time. The project has ensured that 40%-60% training opportunities are provided for the affected females. The Women’s Federation representatives together with the employer agencies will further consult with women to develop the training design on methods and contents. 3.3 Recovery Plan of Special Facilities The special facilities affected by the project are mainly power lines, telecommunication lines, etc. To minimize disruption to residents, detailed surveys have been done and the budget has been included in the RP budget. The relevant line agencies will be responsible for detailed relocation planning and rebuilding electric power and communication facilities. 3.4 Status of Centralized Resettlement Site In July 2015, the houses in centralized resettlement site in Jinshuiwan of Duanjiahe Town were started to be constructed, and in February 2017, 158 new houses of Phase I had been completed; of which, there were 30 replacement buildings, and the other 100 houses were used for resettling affected households of ADB loan projects and other domestic invested projects. In Phase II, 150 houses shall be built and is expected to be completed in August 2019. The house area varies from 80m2 to 125m2, and the unit price shall be controlled within CNY1,000-1,500/ m2. In resettlement site, there are complete facilities of hospital, kindergarten, and leisure square, etc. In 38 relocated households involved in Duanjiahe Town by the project, 5 households have expressed that they were willing to participate in centralized resettlement in Jinshuiwan. To date, 28 households have moved into centralized resettlement sites, 147 households have moved into self-built houses and 35 households have moved into self-purchased houses. The project of centralized resettlement site in Ganxi Town, Phase I had been completed and put into use in December 2016, with a total of 220 resettled households. 7 affected households in Ganxi Town by the project have been relocated to centralized resettlement in Ganxi Town in 2018. As of February 2019, there were 2 affected households in Dalingtai Village, Ganxi town and 2 affected households in Ganxi community selecting to resettle in Binhu residential area. 5 affected households in Xuejiawan Village, Duanjiahe Town chose to resettle in Jinshuiwan residential area.

Figure 3-2 Planning map for centralized resettlement community in Jinshuiwan of Duanjiahe Town

Figure 3-3 On-site photos of centralized resettlement community in Jinshuiwan of Duanjiahe Town

Figure 3-4 On-site photos of centralized resettlement community in Ganxi Town

4 Public Participation 4.1 Public consultation results During project preparation, the public consultations and participation activities have been carried out. From September 2018 to February 2019, external monitoring activity and public consultation activities has been implemented. See details in Table 4-1. Table 4-1 Public consultation and participating activity

Participants Time Organizer Objective Issues, comments and number Shaanxi Kexin 1.From Consultant Company, Affected towns, Baseline survey and September PMO of Xunyang villages and public consultation 1-30, 2016 County, township, villagers village cadres Shaanxi Kexin Consultant Company, 2. February 6 Affected towns, External monitoring Track and monitor all Project Office, to August 1, villages and (Phase I) and public contents of external township and village 2017 villagers consultation monitoring cadres of Xunyang County Shaanxi Kexin Consultant Company, Affected towns, External monitoring Track and monitor all 3. August 7 Project Office, villages and (Phase II) and public contents of external to 25, 2017 township and village villagers consultation monitoring cadres of Xunyang County Kexin Consulting 4.From Company, PMO of The affected External monitoring Track and monitor all February 1 to Xunyang County, towns, villages (Phase III) and public contents of external 28, 2018 cadres of town and and villagers consultation monitoring. village Kexin Consulting 5.From Company, PMO of The affected External monitoring Track and monitor all August 1 to Xunyang County, towns, villages (Phase IV) and public contents of external 31,2018 cadres of town and and villagers consultation monitoring. village 6.From Kexin Consulting The affected External monitoring Track and monitor all February 1 to Company, PMO of towns, villages (Phase V) and public contents of external 28,2019 Xunyang County, and villagers consultation monitoring. Held three

Participants Time Organizer Objective Issues, comments and number cadres of town and small consulting meeting village and interviewed for 26 times.

In February 2019, local government and the monitor held a centralized public consultation meeting for the affected persons; the consulting persons’ number is more than 100, of which 43 are women and 10 households are in low income families. The monitor has conducted household surveys in Xiaohe Town, ZhaoWan Town, Tongmu town, Duanjiahe Town and other project affected areas which were seriously affected by continuous torrential rain. The main consulting results were as follows:  Whether standards of land acquisition and demolition were carried out in accordance with the RP. All the compensation for the affected persons cannot be lower than the standard stipulated in the RP.  The affected person’s participation in the construction of the project. There were nine affected persons who attended the consultation participated in project construction, mainly including non-technical works such as cooking and handling, and they got salary from them. The affected persons thought that the income was more than that from farming.  The current situation of the resettlement of the affected persons. There were totally 25 households who participated the consultation, among them, 11 affected persons have moved into the rebuilt new houses and 4 affected persons have moved into the centralized settlement buildings, 10 affected persons are rebuilding their houses. The 25 affected persons were satisfied with the resettlement plan.  The training of the affected low-income families. There are 5 households low-income families participating in consulting obtained livestock subsidy or took part in agricultural technology training. Site investigations are shown in Figure 4-1. In February 2019, when the monitor was investigating Xuejiawan Village in Duanjiahe Town, Cao Chengqi was interviewed. Cao Chengqi has a family of four people, and the main source of income is going out for working. Cao Chengqi and his family are affected by the demolition. The demolition area of the house is about 260m2 which is bricks structure house. After demolition, he obtained CNY 395,900 compensation fund. The compensation fund is paid in a lump sum, the transition fund of CNY 3,600 for one year and the relocation 46

subsidy of CNY 1,000 are all paid in cash in a lump sum, and now they are living in the room for rent in the village for transition. So far they have obtained a homestead in the village, and reconstruction of house is in process, and the cost for the reconstruction is CNY 300,000. From this viewpoint, the house compensation fund is enough for him to build a house with the same structure and same size as the original one. In the end, he hopes that the construction can be accelerated so that they can enjoy a more convenient travel environment as soon as possible.

The Project Office and external monitoring staffs are on the symposium in A small meeting is held in Liangheguan Liangheguan Village Village

The Project Office and external monitoring Project Office and external monitoring staffs are on the symposium in Qipan staffs hold a meeting in Village Village Committee.

Figure 4-1 On-site investigation of the public

4.2 Complaints XCPMO has the special designated person who is responsible for receiving the complaints from the public and the government above the town level also established the special complaints office. The public can directly appeal to any complaints office. If there is an appeal from the public, it should be recorded and the relevant personnel should be informed to deal with. The complaints will generally be replied within five working days. The resettlement information manual was issued to the affected people as early as in 2015. It described the public have the right to complain and the channels and procedure to

complain as well. According to the investigation, the channels and procedure to complain established at present are consistent with the one in the manual. Since the implementation of the project, XCPMO received 19 complaints in total, including:  Five registrations of ground attachments missed. The result of handling was to compensate for these ground appendants after an on-site verification. All the persons who complained were satisfied with the result of handling.  There were eight damage influences due to the construction. The result of handling was to compensate according to the actual situation and the one affected seriously has been included into the scope of demolition, the compensation has been paid in accordance with the standard of RP. All the persons who complained were satisfied with the result of handling.  There were four complaints for the influence on villager’s living due to the construction. XCPMO immediately asked the Construction organization to solve the problem after receiving the complaint. All the persons who complained were satisfied with the result of handling.  There were two complaints of ownership dispute. The result of handling was: XCPMO coordinated the parties and reached an agreement through the mediation. All the complaints were replied to the affected persons within three days. The persons who complained were satisfied with the result of handling. According to this external monitoring and investigation, there is no complaint occurred during this monitoring period.

Table 4-2 Complaints Record and Resolution

As of Feb 2019

Name of Town/township or Village/ No. Time Description Resolution Complainants sub-district community Ganxi 1 Li Dexin Ganxi 12/07/2016 Land transfer dispute Mediated Community There is no expropriation compensation for the Hongyan Check the expropriation compensation, solved 2 Zhu Yuxing Zhaowan 11/09/2016 house and pipe which are influenced by the Community (compensated) construction. Liang Quanling Check the expropriation compensation, solved 3 Zhaowan 15/09/2016 The outdoor pool is not registered. Changxin Village (compensated) Liangheguan Ask for specifying the land acquisition 4 Kang Ming Xiaohe 15/09/2016 Mediated and specified Village ownership within the red line. Xiaohe There is no expropriation compensation for the Check the expropriation compensation, solved 5 Li Qinghua Xiaohe 17/10/2016 Community drain pipe. (compensated) Xiaohe Piecemeal stone forest, which is asked for Check the expropriation compensation, solved 6 Chen Xuewen Xiaohe 18/10/2016 Community compensation. (compensated) Dongshan The drain pipe is damaged by the construction, 7 Zhang Hongli Xiaohe 04/11/2016 Check and compensate, solved (compensated) Village so it is asked for compensation. After an on-the-spot verification, compensate Ganxi The construction vibration leads to house according to the damaged condition upon the 8 Yang Guanjie Ganxi 16/11/2016 Community damaged. negotiation with the affected person. (Compensated) After an on-the-spot verification, compensate Hongyan The construction vibration leads to house according to the damaged condition upon the 9 Ding Xinde Zhaowan 29/10/2016 Community crack. negotiation with the affected person. (Compensated) After an on-the-spot verification, compensate Zhaowan The construction vibration leads to house according to the damaged condition upon the 10 Liang Ruyin Zhaowan 13/11/2016 Community crack. negotiation with the affected person. (Compensated) After an on-the-spot verification, compensate Hongyan according to the damaged condition upon the 11 Liang Xinping Zhaowan 08/10/2016 Barricade excavation leads to house crack. Community negotiation with the affected person. (Compensated) Quanling The construction vibration leads to house After an on-the-spot verification, compensate 12 Hua Wencai Zhaowan 12/10/2016 Village crack. according to the damaged condition upon the 49

Name of Town/township or Village/ No. Time Description Resolution Complainants sub-district community negotiation with the affected person. (Compensated) After an on-the-spot verification, compensate Liangheguan The construction vibration leads to house according to the damaged condition upon the 13 Dong Yunfeng Xiaohe 06/11/2016 Village crack. negotiation with the affected person. (Compensated) Zhaowan Give a expropriation compensation after verification 14 Cao Shiping Zhaowan 08/12/2016 The sty is not measured. Community (Compensated) Zhaowan Solved, give an expropriation compensation. 15 Li Qinghua Zhaowan 17/12/2016 The pipe is missed for registration. Community (Compensated) Shiziling The house is damaged by the shock of blasting Properly solved (Demolished, and compensate as 16 Wang Tuo Ganxi 20/03/2017 Village in tunnel, which is asked for compensation. house demolition) The house is influenced by landslide. Zhaowan Properly solved (1. Compensate for transition 17 Zhang Tianye Zhaowan 27/03/2017 Requirements: 1. Transition resettlement. 2. Community resettlement. 2. Has selected a site for building.) House demolition No related traffic warning sign is equipped at the road section near to the Shuxiao Highway Properly solved (Traffic warning signs has equipped Ciping 18 Hu Haiyun Hongjun 16/05/2017 (Dabei Ring Road) where the Zhutong Primary at near the school, and strengthen students’ traffic Community School is being demolished. There is a certain safety education for gong to and leaving school. potential safety hazard.

5 Conclusions and Suggestions 5.1 Assessment on project acquisition and resettlement （1）Until February 28, 2019, Xunyang section of S102 and G316 and the project of X304 are being implemented. The LA and HD agreements of 1038 AHs have been singed in Xunyang section of S102 and G316, and the LA and HD compensation payment has been paid. Of which 1033 AHs are local villagers, 5 AHs belong to government organs of the town, and 211 AHs were affected both by LA and HD. The two enterprises affected by S102 project have been redeemed and removed. （2） In X304, 28 households affected by house demolition have been paid. 827 households affected by land acquisition have reached an oral agreement on land acquisition. For using this road as early as possible, the affected households agreed to construct in advance. Because of the lack of fund, the remaining unpaid compensation for land acquisition will be paid before December 2019. （3）After the implementation of project, the government has arranged multiple economic recovery programs in project area, such as establishing fruit industry enterprise, happy farmhouse and hiring local labor force. Therefore, the affected people have their income increased through these works and after participating in labor activities. It was predicated that, these income-increasing measures would increase the benefits of more than CNY 5,000/year/person for local villagers, which was far more than the losses caused by land decrease. In summary, the villagers were very supportive and actively participated in the project construction. （4）Compensation standard for land acquisition and demolition was based on the standard in resettlement plan; in actual land acquisition and demolition, cost evaluation for land, houses and other ground attachments followed the principle of adopting the higher instead of the lower, and some reasonable requirements proposed by affected people were adopted at the same time. Because output value of the irrigated land of Liuiayuan Village is relatively high, the compensation has been increased to CNY 50000/Mu after negotiation. The government and villages and towns also actively assisted the affected people to use the compensation to recover the economy, fully took care of the rights and interests of the project, the collective and the individuals, winning the full support of the stakeholders. The land acquisition and resettlement work at the early stage of the project was generally smooth, such as the overall planning and design around the abandoned slag plant in Caojiagou of Xuejiawan Village, Duanjiahe Village, and the implementation of a contiguous scale cultivation of cherry. Therefore, there was no centralized or written complaints since the implementation of the project. In terms of LA & HD impact of the project and the 51

preparatory work, some reasonable opinions proposed by APs were actively adopted, which fully ensured the smooth transition of AP in LA & HD. （5）Project biding and other preliminary works for Libai Road, Beiluo Road and Yangliang Highway has not been started because funds are not available. 5.2 Suggestions The monitoring and consulting work have been supported by Foreign Funds Project Office of Shaanxi Provincial Transport Department (Shaanxi Provincial PMO), XCPMO, thus were carried out smoothly. Besides expressing thanks to various relevant organizations, we proposed the following suggestions for later land acquisition and house demolition: (1) In this monitoring, houses demolished by X304 have been paid. But the compensation for the land acquisition has been paid partially, the project plans to pay off all the residual compensation for the land acquisition in June 2019. XCPMO is suggested to coordinate with related leaders and departments of the County Government in a timely manner and put the counterpart funds in place as soon as possible, and the provincial project management office and Ankang Road Transport Bureau could be asked for help if there are difficulties and pay off the compensation on time. (2) According to the investigation, the women in work in the villages/communities have to take care of their families while they are working, they want to attend the training but have no appropriate time. We suggested to gather all the women who want to join in the trainings at a place and choose suitable skill training courses for training in the way of long-distance video teaching. This resettlement monitoring report was prepared from late February 2019, and various problems in this report will be followed up in the next external monitoring report.

Appendix 1 Name list of the ones who have been consulted.

Number of people Town Village/Community Name of host consulted Xiaohe Town Liangheguan Village Kang Guoping 2 Xiaohe Town Liangheguan Village Kang Guobing 3 Xiaohe Town Liangheguan Village Hu Chaiyuan 2 Xiaohe Town Liangheguan Village Kang Lu 2 Xiaohe Town Liangheguan Village Zhang Shiping 2 Xiaohe Town Liangheguan Village Chen Daitao 2 Xiaohe Town Liangheguan Village Zhang Shibin 1 Xiaohe Town Liangheguan Village Chen Daiping 1 Xiaohe Town Liangheguan Village Yan Chuntao 2 Xiaohe Town Liangheguan Village Kang Ming 2 Xiaohe Town Liangheguan Village Zhang Yeming 2 Xiaohe Town Liangheguan Village Yan Yong 2 Xiaohe Town Liangheguan Village Xu Lihui 2 Xiaohe Town Liangheguan Village Sun Zhengfeng 1 Xiaohe Town Liangheguan Village Xia Yuming 2 Xiaohe Town Qipan Village Wang Jun 1 Xiaohe Town Qipan Village Xiang Chunxian 2 Xiaohe Town Qipan Village Xiang Chunming 2 Xiaohe Town Qipan Village Jiao Meifeng 2 Xiaohe Town Qipan Village Zhao Shijun 3 Xiaohe Town Qipan Village Huang Junyin 3 Xiaohe Town Qipan Village Yang Yingquan 2 Xiaohe Town Qipan Village Wu Fengming 2 Xiaohe Town Qipan Village Yang Yingjun 2 Xiaohe Town Qipan Village Huang Junming 2 Xiaohe Town Qipan Village Yang Bo 2 Xiaohe Town Qipan Village Guo Changqin 2 Xiaohe Town Qipan Village Zhao Shiping 2 Xiaohe Town Qipan Village Li Wancheng 1 Duanjiahe Xuejiawan Cao Chenggang 1 Duanjiahe Xuejiawan Li Jinxiu 1 Duanjiahe Xuejiawan Chen Dingjian 2 Duanjiahe Xuejiawan Cao Chengxin 2 Duanjiahe Xuejiawan Cao Shouqing 2 Duanjiahe Xuejiawan Chen Shanru 2 Duanjiahe Xuejiawan Cao Yongxiang 2 Duanjiahe Xuejiawan Cao Jiabo 2 Duanjiahe Xuejiawan Cao Jiasheng 2 Duanjiahe Xuejiawan Cao Chengjiu 2 Duanjiahe Xuejiawan Cao Xingsheng 2 Duanjiahe Xuejiawan Xue Zixiang 2 Duanjiahe Xuejiawan Liang Jizai 3 Duanjiahe Xuejiawan Liang Jizhu 3 Duanjiahe Xuejiawan Liang Jiping 1 Zhaowan Zhaowan Community Tian Yuanguo 2 Zhaowan Zhaowan Community Zhu Yuande 2 Zhaowan Zhaowan Community Zhu Yuanlin 1 53

Number of people Town Village/Community Name of host consulted Zhaowan Zhaowan Community Liang Xinping 1 Zhaowan Zhaowan Community Ding Guoli 2 Zhaowan Zhaowan Community Zhu Yuxing 1 Zhaowan Zhaowan Community Ke Zuncai 2 Zhaowan Zhaowan Community Zhu Yuande 1 Zhaowan Zhaowan Community Zhu Yuanfeng 2 Zhaowan Zhaowan Community Zhu Yuanping 1 Zhaowan Zhaowan Community Zhu Yuanwen 2 Zhaowan Zhaowan Community Zeng Shihong 2 Zhaowan Zhaowan Community Gao Changzhi 1 Zhaowan Zhaowan Community Hu Dehai 1

Appendix 2 Compensation Agreement for Land Acquisition and House Demolition

Appendix 3 Resettlement policies of Southern Shaanxi area About Opinions on Further Strengthening and Standardizing resettlement Work of Southern Shaanxi Area, General Office of People’s Government of Shaanxi Province, Shaan Zheng Ban Fa [2014] No.47

Appendix 4 List of compensation expenses for completion of payment Packag Affected area Type Type Completed e Town village/Communi subdivision in total ty （CNY'0000） XXLJ01 Ganxi Dalingtai Collective Land Cultivated land 247.98 acquisition Homestead 9.12 Forest land 29.99 Others 25.63 Rural house Brick-concrete 201.12 demolition Brick-wood 9.36 Civil structure 3.66 Temporary house 3.45 Others 64.02 Enterprise Jiahai Stone 81.69 material factory Others Removal reward, 19.84 Transitional subsidy and Moving subsidy Shiziling Collective Land Cultivated land 193.35 acquisition Homestead 10.38 Forest land 41.14 Others 15.71 Rural house Brick-concrete 377.19 demolition Temporary house 5.7 Others 44.59 Enterprise Ganxi Yuansigou 270 Shale brick field Others Removal reward, 31.94 Transitional subsidy and Moving subsidy Zhangjiahe Collective Land Cultivated land 7.3 acquisition Forest land 4.81 Others 1.38 State owned land 0.6 Temporary house 0.46 Others 0.33 Liujiayuan Collective Land Cultivated land 214.99 acquisition Forest land 4.84 Others 18.14 Rural house Brick-concrete 57.88 demolition Others 14.97 Ganxi Collective Land Cultivated land 42.04 acquisition Homestead 1.1 Forest land 5.1 Others 5.48 Rural house Brick-concrete 30.31 demolition Brick-wood 5.52 Civil structure 20.6 Temporary house 3.09 Others 10.85 Others Removal 9.32 reward,Transition 56

Packag Affected area Type Type Completed e Town village/Communi subdivision in total ty （CNY'0000） al subsidy and Moving subsidy XXLJ02 Zhaowan Zhonggou Collective Land Cultivated land 43.47 acquisition Homestead 5.16 Forest land 23.35 Others 19.2967 Rural house Brick-concrete 76.39 demolition Brick-wood 1.8 Civil structure 0.61 Government-affiliat Hongyan railway 10.47 ed institutions maintenance squad Others Removal reward 14.46 Quanling Collective Land Cultivated land 140.68 acquisition Homestead 13.15 Forest land 100.23 Others 52.7532 Rural house Brick-concrete 113.07 demolition Brick-wood 54.39 Civil structure 27.45 Others Removal reward 52.8 Huashan Collective Land Cultivated land 37.9 acquisition Forest land 42.58 Others 10.2502 Rural house Brick-concrete 20.55 demolition Maoding Collective Land Cultivated land 17.98 acquisition Homestead 3 Forest land 19.4 Others 0.736 Rural house Brick-concrete 38.23 demolition Hongyan Collective Land Cultivated land 41.32 acquisition Homestead 12.07 Forest land 44.53 Others 74.2669 Temporary 0.31 occupation Rural house Brick-concrete 170.59 demolition Brick-wood 37.89 Civil structure 3.98 Others Removal reward 42.98 Zhaowan Collective Land Cultivated land 156.17 acquisition Homestead 9.2 Forest land 23.49 Others 65.2258 State owned land Armed forces 30.17 shooting range Temporary 4.45 occupation Rural house Brick-concrete 49.95 demolition Brick-wood 19.6 57

Packag Affected area Type Type Completed e Town village/Communi subdivision in total ty （CNY'0000） Civil structure 1.56 Others Removal reward 30.24 XXLJ03 Xiaohe Liangheguan Collective Land Cultivated land 132.1 acquisition Homestead 27.59 Forest land 33.94 Others 14.37 Rural house Brick-concrete 265.75 demolition Brick-wood 6.77 Civil structure 1.92 Temporary house 0.94 Government-affiliat Police reporting 54 ed institutions station Others 152.57 Xiaohe Collective Land Cultivated land 65.9 acquisition Homestead 21.97 Forest land 19.53 Others 14.7 State owned land 10 Rural house Brick-concrete 258.1 demolition Brick-wood 5.8 Civil structure 7.9 Temporary house 3.68 Enterprise Qian youhe sand 5.1 mill Government-affiliat Traffic police 10 ed institutions brigade Others 138.29 Dongshan Collective Land Cultivated land 147.14 acquisition Homestead 26.87 Forest land 10.47 Others 22.65 Rural house Brick-concrete 201.48 demolition Brick-wood 4.32 Civil structure 58.56 Temporary house 4.45 Others 98.3 Qipan Collective Land Cultivated land 62.57 acquisition Homestead 20.11 Forest land 20.3 Others 4.46 Rural house Brick-concrete 322.16 demolition Brick-wood 9.4 Civil structure 22.06 Temporary house 12 Government-affiliat Dianzi river 50.94 ed institutions railway maintenance squad Others 59.71 Pinghuai Collective Land Cultivated land 55.54 acquisition Homestead 6.3 Forest land 3.4 58

Packag Affected area Type Type Completed e Town village/Communi subdivision in total ty （CNY'0000） Others 8.98 Temporary house 0.27 Others 23.04 Tongmu Jiaoyuan Collective Land Cultivated land 16.51 acquisition Homestead 0.57 Forest land 7.41 Others 31.9728 Rural house Brick-concrete 40.12 demolition Others 31.67 XALJ Duanjiah Lijiazhuang Collective Land Cultivated land 17.75 e acquisition Forest land 2.58 Others 2.15 Others 3.77 Xuejiawan Collective Land Cultivated land 280.75 acquisition Homestead 28.46 Forest land 51.45 Others 50.56 Rural house Brick-concrete 264.27 demolition Brick-wood 115.61 Makeshift house 6.27 Others 137.06 Mituosi Collective Land Cultivated land 6.9 acquisition Homestead 0.38 Forest land 4.52 Others 0.7 Others 0.56 Gaobiliang Collective Land Cultivated land 31.37 acquisition Homestead 4.83 Forest land 24.11 Others 1.16 Rural house Brick-concrete 106.35 demolition Brick-wood 4.53 Others 25.47 Collective Land Cultivated land 10.19 acquisition Forest land 1.04 Wenya Collective Land Cultivated land 25.67 acquisition Homestead 3.99 Forest land 12.42 Others 5.52 Rural house Brick-concrete 47.28 demolition Brick-wood 19.75 Makeshift house 7.92 Others 38.36 Beian Collective Land Cultivated land 21.7 acquisition Homestead 2.7 Forest land 0.16 Others 3.39 Others 5.19 X304 Hongjun Shangma Collective Land Cultivated land 0

Packag Affected area Type Type Completed e Town village/Communi subdivision in total ty （CNY'0000） acquisition Homestead 0 Collective Land Forest land 0 acquisition Others 0 Cultivated land 0 Rural house Brick-concrete 9.294 demolition Earth-wood 45.25126 X304 Xiaohe Collective Land Cultivated land 208.1 acquisition Forest land 26 Others 21.6 Rural house Brick-concrete 30.1 demolition Brick-wood 3 Earth-wood 135.7 Others 3.1 TOTAL 9606.2480