Resettlement Plan

August 2016

People’s Republic of China: Shaanxi Weinan Luyang Integrated Saline Land Management Project

Prepared by Weinan Municipal Government for the Asian Development Bank. This is an updated version of the resettlement plan originally posted in August 2015 available on http://www.adb.org/sites/default/files/project-document/174073/44037-014-rp-02.pdf.

CURRENCY EQUIVALENTS (as of 24 August 2016)

Currency unit – yuan (CNY) CNY1.00 = $0.1505 $1.00 = CNY6.6435

ABBREVIATIONS

AHH – affected household AP – affected person DMF – Design and Monitoring Framework EA – executing agency FGD – focus group discussion EMDP – ethnic minority development plan GEF – Global Environment Facility HH – household LAR – land acquisition and resettlement LNWP – Luyanghu National Wetland Park LEF – land-expropriated farmer M&E – monitoring and evaluation MIS – management information system PLG – project leading group PMC – project management consultant SGAP – social and gender action and participation plan SPG – Shaanxi provincial government SPS – Safeguard Policy Statement WFB – Weinan finance bureau WLMIDZMC – Weinan Luyanghu Modern Industry Development Zone Management Committee WMG – Weinan municipality government

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

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

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

ADB Financed Project

Resettlement Plan Of

Shaanxi Weinan Luyang Integrated Saline Land Management Project

Weinan Project Management Office July 2016

This resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section of this website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

ENDORSEMENT LETTER

Note on this Update

L2980/G0331-PRC: Shaanxi Weinan Luyang Integrated Saline Land Management Project is supporting the WMG to implement environmental and social improvements in the Luyanghu area. The project comprises a five-year $100 million loan (L2980; 2013– 2018), a $2 million grant (G0331) from the Global Environment Facility (GEF), and a $350,000 technical assistance (TA8293) grant for wetland and water bird management.

The RP (2012 version) was formulated in accordance with the data of project feasibility study report (FSR). The updated RP (2015 version) was based in preliminary design, which optimized the design of the original scheme and changed the data of the original feasibility study scheme resulting from insufficient design precision at initial design stage. Meanwhile, as most impacts of land acquisition occur on saltpan and ditches, etc., the definition of land types was not accurately defined in the FSR, and some saline/alkaline lands were also counted as arable land. So in preliminary design change, the design institutes and project implementing agency further checked the types and quantity of acquired land, so as to ensure the accuracy of data, especially in Component 1 Saline Soil Rehabilitation. Moreover, it was found during implementation that there were several incorrect identification on project LAR impacts for several civil works packages under components 1 & 2 in the updated RP (2015 version). Therefore, there are further revisions to the contents and resettlement impact data in this updated RP (2016 version) based on the detailed design particularly in the packages of Component 1. Besides, the land for Tianlu-Tianjiao Connection has been pre-acquired in 2010 and exclude from the impact scope of the updated RP.

Because of the poor communication of information among units before, the RP was not been updated in time. After monitors went to the project sites to recheck and reconfirm, as of January 2016, comparing with the updated edition of August 2015, the permanently occupied land of the project rose from 2,587.8 to 5501.72 mu, and land acquisition types, data of affected population, etc., have changed. Affected cultivated land is increased from 692 mu to 2432.65 mu, whereas non-arable land such as wasteland and saline/alkaline land (salt pan) rose from 1,895.8 mu to 3067.07 mu.

This update mainly covers resettlement impacts, compensation and resettlement policies, restoration measures, organizational structure, resettlement budget, resettlement implementation schedule, etc.

Table 1 Overview of this update

Update Original RP (2012) Former RP(2015) Updated RP (2016) Remarks Identify the LAR impact of Component 1, 854 mu arable land 692 mu arable land 2432.65 mu arable Saline Soil and 1,733.8 mu and 1,895.8 mu land and 3069.07 mu Rehabilitation, non-arable land, non-arable land, non-arable land, Area of land more accurate for 2,587.8 mu land in 2,587.8 mu land in 5501.72 mu land in acquisition (mu) Component 2, total total total Flood Risk Management due to on-site survey

i

Update Original RP (2012) Former RP(2015) Updated RP (2016) Remarks

Impact of land APs increased 1,545 affected 1,455 affected 17,232 affected acquisition 15,777 persons persons in 365 persons in 343 persons in 3,698 Population/hous and AHs increased affected households affected households affected households ehold quantity 3,355 households

4,864.27 mu arable 3,820.17 mu arable 2,042.5 mu arable TLO decreased Area of land and 2,843.33 land and 2,843.33 land and not non- 4621 mu land for temporarily mu non-arable mu non-arable arable land, 2042.5 the Tianlu Lake occupied land land, 7,707.6 mu land, 6,663.5 mu mu land in total excavation doesn’t (mu) land in total land in total occupy land temporarily Demolishment 45 affected persons 45 affected persons 175 affected persons warehouse impacts of and 10 affected and 10 affected and 35 affected building for salt temporarily households with households with households with pan operation buildings 955 m2 temporary 955 m2 temporary 19326 m2 temporary building building building compensation cultivated land cultivated land cultivated land according to the rates compensation CNY compensation CNY compensation CNY local policies and 27000 yuan/mu, 27000 yuan/mu, 28500 yuan/mu in impact area salt pan salt pan Pucheng County, compensation CNY compensation CNY CNY 31063 yuan/mu 5000 yuan/mu 5000 yuan/mu in Fuping County, salt pan compensation CNY 5000 yuan/mu

resettlement CNY 87.963 million CNY 73.646 million CNY 105.281 million increased for the budget yuan yuan yuan physical impact and compensation rate

ii

Executive Summary E1. Project Background

1. Shaanxi Weinan Luyang Integrated Saline Land Management Project is located on the north bank of the Weihe River and within the Pucheng County in the eastern Weinan City of Guanzhong Plain of Shaanxi Province. The Project partially financed by ADB which consists of 4 Components: (1) Saline soils rehabilitation: including Rehabilitation of Luoxi drainage system and improved resilience to climate change of agro-ecosystems; (2) Flood risk management: improve flood storage capacity, prevent flood disaster, and ensure people’s life and property; (3) Wetland ecosystem conservation: improve and protect local wetland ecosystem; (4) Capacity development and project implementation support: institutional strengthening and project management support. The implementation period of the project is five years, that is, from 2013 to 2018. The total investment is 165 million dollars, of which, 100 million dollars is loan from ADB.

E2. Land Acquisition and Resettlement Scope

2. The land acquisition and resettlement (LAR) will affect 60 administrative villages, and 6 town/townships in Pucheng County and Fuping County, including a total of 3,698 households with 17,232 persons affected. Of the affected peoples, 3,663 households with 17,057 persons will be affected by land acquisition only and 35 households with 175 persons will be affected by both land acquisition and temporary building demolition. 3. A total of 5,507.72 mu of rural collective land will be permanently acquired, including 2,432.65 mu of cultivated land and 3,069.07 mu of waste land. 4. The Component will involve 19326.62 m2 of temporary building demolition, structures including brick concrete, brick-wood, earth wood housing, and simple house structures. All the building are non-residential utilized for warehouse or mirabilite production. 5. No enterprises and public institutions or shops are involved in acquisition and demolition. In addition, scattered trees, poles, wires, tombs, enclosures, water wells and other ground ancillary facilities will be affected. In the implementation area of the project, no ethnic minorities will be affected.

E3. Resettlement Principles and Entitlements

6. The resettlement plan (RP) is prepared according to the People’s Republic of China’s Land Administration Law (2004) and the related national, provincial, and municipal policies and regulations, as well as in compliance with ADB’s Safeguard Policy Statement (2009). On the basis of the above-mentioned regulatory and policy requirements and in consultation with local governments, the resettlement principles established for the project are that (i) land acquisition and involuntary resettlement should be avoided or minimized where feasible by developing and comparing a series of design alternatives; (ii) compensation be paid and other resettlement entitlements provided before physical or economic displacement. Compensation and entitlements provided must be adequate to allow those affected to at least maintain their pre-project standard of living, with the prospect of improvement; (iii) land temporarily occupied and the period for disruption are to be kept to a minimum; (iv) all affected persons (APs), titled and non-titled, and renters and/or contractors are to be taken into consideration; (v) RP should be prepared and implemented in accordance with state land rehabilitation policy, national economic and social development plans, and ADB’s SPS; (vi) all those affected will be adequately informed about

iii eligibility, compensation rates and standards, livelihood and income restoration plans, and project timing; (vii) RP should be coordinated with regional development, economic development, and environmental protection; (viii) practical and feasible measures should be formulated to restore the affected items; (ix) a preferential policy and assistance will be provided to vulnerable groups in such things as employment; and (x) close monitoring and timely actions will be carried out to identify and resolve any problems.

7. According to Notice on Average Standard of Unified Annual Output Value and Integrated Land Price on Land Acquisition of Shanxi Province (2010) and Notice on Land Acquisition and Implementation Scheme for Ecological Environment Project, Dredging and Rehabilitation of Main Desalination Drainage Channels in Weinan Luyanghu Modern Industries Development Zone (2014), the compensation rates for the rural collective land compensation and resettlement allowance are: CNY 28,500 yuan (Pucheng County) or CNY 31,063 yuan (Fuping County) per mu for farmland, and CNY 5,000 yuan for waste land with salt pans. The compensation rate for young crops is CNY 1,000 yuan (Pucheng County) or CNY 1,300 yuan (Fuping County) per mu.

8. According to Replacement Cost, the compensation standard of the buildings on the salt pans or along the channel is 500 yuan per square meter. People who work in salt pans can build new temporary buildings with original building materials.

E4. Resettlement and Restoration

9. Based on the socioeconomic survey and public participation on affected groups, APs’ livelihood restoration measures mainly include: (i) with monetary compensation, APs can be engaged in non-farming activities, such as transportation or small businesses or tourism services, etc., (ii) local governments will help APs to adjust agricultural planting structure, and provide planting instruction and technical trainings to expand greenhouse planting area, develop household level animal breeding industry, so as to improve economic incomes; (iii) during the project construction, the PMO will give priority to APs’ employment in the project and to provide nearby enterprises’ employment information, so as to increase their income sources; (iv) during APs’ livelihood restoration process, the PMO will organize APs to accept skill/technical trainings, and ensure all affected laborers receive at least one session of planting and/or non-farming technical training; and(v) local governments will help APs to apply for minimum living guarantee or pension insurance, to make poor families have guarantee on their future income.

E5. Information disclosure and Public participation

10. As a vital social activity for land acquisition, resettlement and compensation, information and consultation should be well-prepared with the aim to make every affected person acquainted with the significance, processes, appropriation, compensation, appeal and the way of settlement and problems existing in the project construction and consultation shall be carried on in advance.

11. From 15 May, 2012 to September 2014, six affected villages held villager representatives meetings to discuss and confirm the resettlement policy and compensation rates in the draft resettlement plan. The final RP will be printed and distributed to affected villages and posted on the website of ADB.

E6. Complaints and Grievances

12. During the preparation of the RP, public participation was encouraged. However,

iv there could be some unforeseen issues happening despite such process. In order to effectively settle the issues and ensure the smooth implementation of the Project construction and land acquisition, an effective and transparent channel for lodging complaints and grievance has been established. The aim is to respond to appeals of the APs timely and transparently. Grievances about the Project may be from collective LA. Correspondingly, the PMO, PIO, resettlement implementing agency, and the affected town governments and village committees will coordinate and handle grievances and appeals arising from resettlement. The APs may file appeals about any aspect of resettlement, including compensation rates. All complaints and their resolution will be recorded by the PMO.

E7. Organization Structure

13. The Executing Agency (EA) of the project is Weinan Municipal Government (WMG). The implementation agency is the Weinan Luyanghu Modern Industrial Development Zone Management Committee and the IA has set up an office, which is in charge of organizing, applying for ADB's loan, coordinating relocation, monitoring and inspecting the payment of usage of the compensation for land acquisition and resettlement. As the stakeholder and counterpart, WMG establish a leading group for land acquisition and resettlement (LAR) and an office to organize and implement the LAR.

E8. Budget for land acquisition and resettlement

14. All the cost incurred during land acquisition, relocation, and resettlement is included in the total budget of the project. In the general budget, direct resettlement costs include compensation for PLA, TLO, the demolition of temporary building and ground attachments, as well as planning and monitoring costs, administrative costs, training costs and contingencies, etc.

15. The general resettlement budget of the Project is CNY105.281 million yuan, including compensation for rural collective land acquisition of 56.777 million yuan or 53.93% of the budget, compensation fees for temporary land occupation of 5.310 million yuan or 5.04% of the budget, land taxes of 33.693 million yuan or 32.0% of the budget, indirect costs of 9.18 million yuan or 8.73% of the budget.

E9. Implementation Schedule

16. The project construction commenced in 2015, in order to properly resettle the affected persons and units, the land acquisition and resettlement activities should be conducted and be finished before the construction of the project. Land acquisition and housing demolition commenced in April 2014 and most of the resettlement activities will be completed by June 2017. However, rehabilitation of livelihoods may take longer to complete. The PMO has agreed to a set of supervision milestones with ADB to ensure timely and effective implementation of the resettlement activities.

E10. Monitoring and Evaluation

17. Details for both the internal and external monitoring and evaluation (M&E) are included in the RP. The PMO will submit an internal progress report semi-annually to ADB. Furthermore, the PMO engaged an independent external resettlement monitoring agency Shaanxi Kexin Consulting Company to undertake external monitoring of the RP implementation. A baseline study conducted before the LAR begins and the first monitoring report submitted in July 2015. After that and until project completion, semi-

v annual monitoring reports will be prepared and submitted for ADB’s review. After completion of the LAR, annual evaluation reports will be submitted to ADB for 2 years or longer if there are any remaining issues.

vi

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

ABBREVIATIONS

ADB Asian Development Bank AP Affected Person AH Affected Household DMF Design and monitoring framework EA Executing Agency FGD Focus group discussion FSR Feasibility Study Report GEF Global Environment Facility HH Household IA Implementation Agency LAR Land Acquisition and Resettlement LNWP Luyanghu National Wetland Park LEF land-expropriated farmer M&E monitoring and evaluation MIS management information system PAM project administration manual PIO project implementation office PLG project leading group PMC project management consultant PMO project management office PPMS project performance monitoring system PRC People’s Republic of China SGAP social and gender action and participation plan SPG Shaanxi provincial government SPS Safeguard Policy Statement TA technical assistance WFB Weinan finance bureau WLMIDZMC Weinan Luyanghu Modern Industry Development Zone Management Committee WMG Weinan municipality government

WEIGHTS AND MEASURES ha hectare km kilometer km2 square kilometer m meter m2 square meter m3 cubic meter m3/d cubic meter per day $(USD) US dollar CNY Renminbi YUAN currency unit

NOTES (i) The fiscal year of the Government of the People’s Republic of China and its agencies ends on 31 December. (ii) In this report, "$" refers to US dollars.

I

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

CONTENTS

Note on this Update ...... i Executive Summary ...... iii 1 PROJECT OVERVIEW ...... 1 1.1 Background and Description of the Project ...... 1 1.1.1 Background of the Project ...... 1 1.1.2 Components and Identification of Resettlement Impacts ...... 1 1.1.3 Summary of Resettlement Impacts ...... 4 1.2 Social and Economic Benefits ...... 4 1.3 Estimated Resettlement Budget and Implementation Plan ...... 5 2 PROJECT IMPACTS ...... 6 2.1 Types of Impacts ...... 6 2.2 Methodology and Procedures ...... 6 2.3 Permanent Land Acquisition ...... 6 2.4 Temporary Land Occupation ...... 14 2.5 Demolition of Rural Temporary Buildings ...... 14 2.6 Affected Vulnerable Groups ...... 15 2.7 Affected Women ...... 15 2.8 Affected Infrastructure and Ground Attachments ...... 16 3 SOCIOECONOMIC ANALYSIS OF AFFECTED AREA ...... 17 3.1 Socioeconomic Profile of the Project Area ...... 17 3.1.1 Socioeconomic Profile of the Affected Counties ...... 17 3.1.2 Socioeconomic Profile of the Affected Towns ...... 17 3.1.3 Socioeconomic Profile of the Affected Villages ...... 17 3.2 Socioeconomic Status of the Affected Population ...... 18 3.2.1 Analysis of Household and Female Population ...... 18 3.2.2 Age Structure ...... 18 3.2.3 Educational Level ...... 19 3.2.4 Housing Conditions ...... 19 3.2.5 Household Income and Expenditure ...... 19 3.3 Social and Gender Analysis ...... 20 4 LEGAL FRAMEWORK AND POLICIES ...... 21 4.1 Laws, Regulations and Policies Applicable to Resettlement ...... 21 4.2 Abstract of ADB Policies ...... 22 4.3 Main Differences between ADB Policy and PRC Laws ...... 24 4.4 Cut-Off Date of Compensation ...... 25 4.5 Compensation Rates ...... 25 4.5.1 Compensation Rates for Acquisition of Collective Land ...... 25 4.5.2 Compensation Rates for Temporary Land Occupation ...... 26 4.5.3 Compensation Rates for Rural Temporary Buildings ...... 26 4.5.4 Compensation Rates for Attachments and Infrastructure ...... 27 4.5.5 Rates of Other Costs ...... 28 4.5.6 Vulnerable Groups ...... 28 4.6 Entitlement Matrix ...... 29 5 RESETTLEMENT AND INCOME RESTORATION ...... 33 5.1 Resettlement Objectives ...... 33 5.2 Principles for Resettlement and Restoration ...... 33 5.3 Restoration Programs of Collective Land Acquisition ...... 33 5.3.1 Cash compensation and distribution ...... 33

II

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

5.3.2 Agricultural improvement ...... 34 5.3.3 Employee Engagement ...... 34 5.3.4 Training ...... 35 5.3.5 Social security system ...... 35 5.4 Restoration Program for Temporarily Occupied Land ...... 35 5.5 Compensation for Temporary Building Demolition ...... 36 5.6 Resettlement Program for Infrastructure and Ground Attachments ...... 36 5.7 Assistance Measures for Vulnerable Groups ...... 36 5.8 Protection of Women’s Rights and Interests ...... 37 6 PUBLIC PARTICIPATION AND GRIEVANCE REDRESS ...... 39 6.1 Public Participation ...... 39 6.1.1 Completed Public Participation Activities at Preparation Stage ...... 39 6.1.2 Participation Plan at the Implementation Stage ...... 41 6.2 Grievances and Appeals ...... 42 6.2.1 Grievance Redress Mechanism ...... 42 6.2.2 Recording, Tracking and Feedback of Grievances and Appeals ...... 43 6.2.3 Contact Information for Grievances and Appeals ...... 43 7 ORGANIZATION STRUCTURE AND RESPONSIBILITY ...... 44 7.1 Resettlement Implementing Agencies ...... 44 7.2 Assignment of Responsibilities ...... 44 7.3 Staffing and Equipment ...... 46 7.3.1 Staffing ...... 46 7.3.2 Equipment ...... 47 7.4 Capacity Enhancing Measures of Resettlement Agencies ...... 47 7.4.1 Resettlement management staff training plan ...... 47 7.4.2 Measures for improving resettlement agencies ...... 47 8 RESETTLEMENT BUDGET ...... 49 8.1 Estimated Budget ...... 49 8.2 Annual Investment Plan ...... 50 8.3 Disbursement and Management of Resettlement Funds ...... 50 8.3.1 Management of Resettlement Funds ...... 50 8.3.2 Disbursement of Resettlement Funds ...... 50 9 RESETTLEMENT IMPLEMENTATION PLAN...... 51 9.1 Principles for Resettlement Implementation ...... 51 9.2 Resettlement Implementation Schedule ...... 51 10 MONITORING AND EVALUATION ...... 53 10.1 Internal Monitoring ...... 53 10.1.1 Scope of Internal Monitoring ...... 53 10.1.2 Methodology of Internal Monitoring ...... 53 10.1.3 Interval and Reporting of Internal Monitoring ...... 54 10.2 External Monitoring ...... 54 10.2.1 Scope and Methodology of External Monitoring ...... 55 10.2.2 External Monitoring Reporting ...... 56 10.3 Post-Resettlement Evaluation ...... 56 APPENDIXES ...... 57

III

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

List of Tables Table 1 Overview of this update ...... i Table 1-1 Basic Information of the Project ...... 2 Table 1-2 Summary of Resettlement Impact ...... 4 Table 2-1 LAR impact breakdown according to packages ...... 7 Table 2-2 Summary of Collective Land Acquired Permanently for the Project ...... 9 Table 2-3 PLA Impact by Land Type and Affected villages ...... 11 Table 2-4 PLA Impact Analysis at Town Level ...... 12 Table 2-5 Land Loss Rate Distribution of Affected Households ...... 14 Table 2-6 Temporary Land Occupation for the Project ...... 14 Table 2-7 Temporary Building Demolition for the Project ...... 14 Table 2-8 Details of affected vulnerable groups ...... 15 Table 2-9 Summary of Affected Ground Attachments ...... 16 Table 3-1 The Social and Economic Situation of the Affected Towns ...... 17 Table 3-2 The Social and Economic Situation of the Affected Villages ...... 18 Table 3-3 Sample Households Income and Expenditure ...... 19 Table 4-1 Compensation rate for acquired collective land ...... 25 Table 4-2 Compensation rate for temporary building ...... 26 Table 4-3 Replacement cost analysis on temporary building ...... 27 Table 4-4 Compensation Standards for the Ground Attachments ...... 27 Table 4-5 Rates of Resettlement Taxes and Fees ...... 28 Table 4-6 Entitlement Matrix ...... 30 Table 5-1 Direct Created Jobs by the Project ...... 34 Table 5-3 Summary of Skill Training Plan ...... 35 Table 6-1 Summary of Public Opinions ...... 40 Table 6-2 Public Participation Plan ...... 41 Table 6-3 Registration Form of Grievance and Appeals ...... 43 Table 6-4 Agencies Accepting Grievances ...... 43 Table 7-1 Staffing of Resettlement Agencies ...... 46 Table 8-1 Resettlement Budget ...... 49 Table 8-2 Annual Resettlement Investment Plan ...... 50 Table 9-1 Resettlement Milestones ...... 51 Table 10-1 Sample Schedule of Resettlement Progress ...... 53 Table 10-2 Sample Monitoring Form ...... 54 Table 10-3 Reporting Schedule of External Monitoring & Evaluation ...... 56

List of Figures Figure 1-1 Construction Sites for the Project ...... 3 Figure 2-1 General Main Channel before rehabilitation ...... 13 Figure 2-2 Linji Branch Channel before rehabilitation ...... 14 Figure 3-1 Age Distribution ...... 18 Figure 3-2 Education Distribution ...... 19 Figure 4-1 LAR information disclosure and cut-off date announcement ...... 25 Figure 4-2 Meeting minute of the establishment of rehabilitation fund for vulnerable groups ...... 28 Figure 6-1 Appeal and Complaint Procedures ...... 43 Figure 7-1 Organization Chart of the Relevant Resettlement Implementation Agencies ...... 44 Figure 8-1 Flowchart of Resettlement Fund Disbursement ...... 50

IV

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

1 PROJECT OVERVIEW 1.1 Background and Description of the Project

1.1.1 Background of the Project

1. In 2009, the State Council of People’s Republic of China (PRC) approved the Guanzhong Tianshui Economic Zone to strengthen the development of the western region. Weinan Municipality, located in the east of Guanzhong Plain, is striving to improve local livelihoods and environment, attract high-tech industrial investment, promote local tourism, and create job opportunities in the Luyanghu area. Shaanxi Weinan Luyang Integrated Saline Land Management Project (L2980/G0331-PRC) will support the Weinan Municipality in implementing natural environment and rural livelihoods improvements for the Luyanghu area. The project area is within the Weinan Municipality, Shaanxi Province. The resident population of Weinan is 5.52 million and the area is 13,100 km2. The transport is convenient with the area, which is called a main cross of Shaanxi connecting with eight provinces. In 2014, the GDP of Weinan is CNY 146.094 billion, an increase of 10.5% over the previous year. The three industries increased 4.9%, 12.1% and 9.7% respectively. The disposable income per capita of the urban citizens in Weinan is CNY 26725, rising CNY 2561. The net income per capita of the rural residents is CNY 8534, rising CNY 969. The two figures are 3% higher than those of Shaanxi Province.

2. Specifically, the Project is constructed in Weinan Luyanghu Modern Industrial Development Zone (WLMIDZ), which is consist of 7 towns in Pucheng County and Fuping County with an area of 124.24 km2. It’s a young development zone approved by Shaanxi Province Government in August 2007, and the population is about 64.3 thousand in 35 villages. WLMIDZ is surrounded by a tableland area, flat and open, with deep soil, sufficient light and heat resources as a traditional agricultural growing area. From the 1960s onwards, in order to solve the irrigation and drainage of the area, the state and local governments have invested in the Longyang pumping irrigation area, Luohui west irrigation area, Qunying pumping irrigation area, Donglei Phase II Yellow River pumping irrigation area, and according to the topographical features and disaster situations, built the Luoxi drainage system for Lubo Shoal and the return water works in irrigation area and other water conservancy facilities, playing an important role in the promotion of regional agricultural production. Low-lying terrain, occlusion, and poor drainage are the main reasons to cause the soil salinization in WLMIDZ, which is the obstacle of the local socioeconomic development and environment protection.

1.1.2 Components and Identification of Resettlement Impacts

3. The project comprises of four outputs: (i) saline soils rehabilitated; (ii) flood risk management implemented; (iii) wetland ecosystem conservation established, comprising (a) support for LNWP development, and (b) promotion of tourism, livelihood, and employment opportunities for local communities; and (iv) capacity development and project implementation support provided. The construction area can be seen in Figure 1-1.

Output 1 Saline soils rehabilitated will reduce soil salinity over approximately 212 km2 and increase productivity and climate resilience of approximately 186 km2 of agricultural land. It has two components: (i) rehabilitation of Luoxi drainage system, and (ii) support for improving resilience to climate change of agro-ecosystems. Output 2 Flood risk management implemented will improve flood storage capacity of Luyanghu area to reduce flood risks to local residents. It includes (i) construction of Tianlu lake (approximately 130 ha), connecting Tianjiao lake in the west, a middle main channel,

1

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project and a central main channel; and (ii) construction of approximately 18.6 km of dike with road around Tianlu lake. The integrated and innovative approach combining flood risk management with drainage system rehabilitation and wetlands ecosystem conservation will contribute to reduced flood risk for the Luyanghu area. Output 3 Wetland ecosystem conservation established has two components: (i) support for LNWP development; and (ii) promotion of tourism, livelihood, and employment opportunities for local communities. The wetlands conservation will reverse ecosystem degradation caused by agricultural encroachment and other pressures associated with the increasing population within the project area. Output 4 Capacity development and project implementation support provided has two components: (i) institutional strengthening, and (ii) project management support during project implementation. The first will support capacity development and training of WMG and WLMIDZMC staff in ADB project management procedures, technical design and implementation, and safeguard supervision and monitoring. The project and the GEF grant were approved on 17 December 2012, which will be implemented in 5 years from 2013 to 2018. The investment cost of the Project is estimated at $165.2 million, of which $100 million is from the ordinary capital resources of ADB. The Weinan Municipal Government also received a $2 million grant from the land degradation focal area of the Global Environment Facility (GEF) to support the work on sustainable land management. A summary profile of the Project is listed in Table 1-1.

Table 1-1 Basic Information of the Project 1 Country People’s Republic of China (PRC) 2 Grant No. 0331-PRC 3 Loan No. 2980-PRC Shaanxi Weinan Luyang Integrated Saline Land Management 4 Project Project 5 Borrower Ministry of Finance of the PRC Weinan Municipal Government (WMG) 6 Executing Agency A PMO formed to act on behalf of the WMG Weinan Luyanghu Modern Industrial Development Zone Implementing 7 Management Committee (WLMIDZMC) Agency A PIO formed to act on behalf of the WLMIDZMC Total Estimated USD 165.2 million 8 Cost 9 ADB Loan USD 100 million Source: ADB website.

4. Based on preliminary identification, the main types of resettlement impacts of the Project are land acquisition, temporary land occupation and the demolition of temporary buildings. All the land acquisition and resettlement (LAR) impacts are induced by the Component 1 Saline Soils Rehabilitation and Component 2 Flood Risk Management.

5. The Project is categorized as A for involuntary resettlement following the criteria laid out in the Safeguard Policy Statement 2009. To mitigate negative impacts of economic and physical displacement, the Project has prepared a draft resettlement plan (RP) during project preparation phase in 2012. Based on the preliminary design and DMS conducted in April 2015, an updated RP has been submitted to ADB for review in August 2015. The updated RP was approved by ADB and uploaded on the website of ADB in September 2015. In March 2016, there is major difference found in the updated RP that the Component 1 incurs 2412mu land acquisition for the rehabilitation of Luoxi drainage system, and the RP updating again in July 2016 based on the detailed design.

2

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Figure 1-1 Construction Sites for the Project

3

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

1.1.3 Summary of Resettlement Impacts

6. According to the updated RP, the construction of saline land rehabilitation in Component1, Tianlu Lake with a total of 18.6 km dike and road around in Component 2 will incur permanent land acquisition (PLA) of 366.78 hectares (5501.72 mu) land and demolition of 19326 m2 of temporary buildings. The saline land rehabilitation of Component 1 will incur temporary land occupation (TLO) and the total amount of TLO will be 160.13 hectares (2402.5 mu). The wetland ecosystem conservation of Component 3 is not involved in land acquisition and resettlement (LAR). A total of 17,232 persons in 3,698 households will be affected by land acquisition, salt pan acquisition, temporary building demolition. The affected areas include 53 villages in 5 towns of Pucheng County and 7 villages in 1 town of Fuping County, Weinan Municipality. Based on the previous survey, there is no minority affected within the project area.

Table 1-2 Summary of Resettlement Impact County Pucheng Fuping Amount Towns 5 1 6 Villages 53 7 60 Subtotal 5334.72 167 5501.72 Where: cultivated land Collective 2265.65 167 2432.65 land Permanent LA Non-cultivated land (mu) 3069.07 0 3069.07

State-owned land 0 0 0 Total 5334.72 167 5501.72 Temporary Construction and life area 57 0 57 land Construction road occupation 1018.35 0 1018.35 (mu) Site for spoil from main ditch 967.15 0 967.15 Total 2042.5 0 2042.5 2 HD(m ) Temporary building demolition 19326.62 0 19326.62 HHs 3423 275 3698 LA Population 16016 1216 17232 HHs 0 0 0 HD only Population 0 0 0 HHs 35 0 35 Both LA and HD Directly Population 175 0 175 affected HHs population 3423 275 3698 Subtotal Population 16016 1216 17232

Demolition of non- HHs 0 0 0 residential properties Population 0 0 0 HHs 3423 275 3698 Total Population 16016 1216 17232

1.2 Social and Economic Benefits

7. Improvement of soil salinity to increase farmers’ income. After this project is completed, the existing visible water elevation will be reduced a lot, and the groundwater level within the area

4

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project will be significantly reduced, to make the saline soil effectively controlled. More than 50,000 farmers will benefit from the management.

8. Prevention of waterlogging to protect people’s lives and property. The masses in the shoal area and downstream of irrigation area suffered from heavy losses in life and production. Once the project is completed, it will prevent waterlogging, effectively eliminate the hazards of floods in Xihan Railway, Xiyu Expressway, Weipu Expressway and Weiqing Highway and other important transportation routes, so as to ensure the safety of people's lives and property, to promote harmonious development and social stability in economic and social development of the drainage area, and to play its regional resource advantages. The service area of this Project is 418km2, and 144 villages of 10 towns in Pucheng and Fuping County will be benefited from it.

9. Restoring of the wetland ecosystem, and laying the foundation for the development of tourism and other industries. The project is planned, through returning low quality fields or wasteland to lakes, construction of artificial wetlands and recovery measures for wetland ecology, etc., to protect and recover the Luyang Lake wetland ecological system, so that wetlands can effectively bring about a variety of ecological, economic and social benefits in flood storage and alkali removal, water conservation, purification of water quality, landscaping and provision of wetland. Meanwhile, by taking full advantage of existing tourism resources in the project area, Luyang Lake wetland will be built as an important eco-tourist attraction in Shaanxi Province.

10. Complying with the regional development planning. The construction objectives of this project is fully consistent with the Planning for Development of Guanzhong - Tianshui Economic Zone. Luyang Lake is located in the central hinterland of the Eurasian Continental Bridge, a link to connect Guanzhong - Tianshui Economic Zone with the Comprehensive Experimental Zone for Coordinated Development of Shanxi, Shaanxi and Henan Yellow River Golden Triangle Region. After the completion of the project, it will greatly improve the Luyang Lake’s ecological environment, greatly enhance the environment for the development of agriculture, tourism, commerce, services in the project area, and strengthen the Luyang Lake’s tie function and radiation effects in the above regions.

1.3 Estimated Resettlement Budget and Implementation Plan

11. In order to mitigate negative impacts of land acquisition and resettlement (LAR) of this project and guarantee interests and rights of affected persons (APs) and full compensation for APs’ property and income loss, based on detailed design of the project, this resettlement plan (RP) is prepared in accordance with relevant involuntary resettlement policies and regulations of the PRC, Shaanxi Province and Weinan Municipality as well as ADB’s Safeguard Policy Statement (SPS, 2009). The gross investment in the Project is CNY 1.09 billion yuan. Construction funds will be raised from the following three sources, namely ADB loan, GEF grant and Weinan Municipality Governments counterpart fund. The estimated resettlement costs of the Project are CNY 105.28 million yuan, accounting for 9.65% of gross investment, all from domestic counterpart funds.

12. The Project loan takes effective on June 27, 2013, and engaged the project consultation corporation on April 23, 2015. It’s planned to be completed on June 30, 2018, with a construction period of 60 months. Up to July 2016, 1 package of Component 1 and 3 packages of Component 2 are under construction. To meet the schedule of civil works, the LA and HD commenced on April 2014.

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Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

2 PROJECT IMPACTS 2.1 Types of Impacts

13. According to the field survey and analysis, the impact of the project is categorized as: Land acquisition / occupation loss; Temporary building demolition loss; and Other direct and indirect impacts.

2.2 Methodology and Procedures

14. In April 2012, the WLMIDZC appointed Design Institute to prepare the Feasibility Study Report of the Project. During September-October 2012, the survey team of Shaanxi Academy of Social Sciences conducted a survey on the socioeconomic profile of the project area, and resettlement impacts according to the Feasibility Study Report, and a sampling socioeconomic survey covering household population, impacts of LA, household economic status, and expected resettlement modes. The main survey methods are as follows: (i). Door-to-door questionnaire survey: A door-to-door questionnaire survey was conducted in the project area , with the aim of: (1) learning the potential positive and negative impacts of the Subproject; (2) learning local residents’ attitude to, expectations for and suggestions on the Subproject; and (3) learning the public participation and opinions of local residents. (ii). Focus group discussion (FGD): The aim is to: (1) collect the APs’ awareness of, attitude to and expectations for the Subproject; and (2) learn the main modes of information disclosure in the affected towns and villages, and promote public participation. 3 town-level FGDs were held, including one FGD with women and two ordinary FGDs. (iii). In-depth interview: The aim is to further learn the APs’ production and living conditions, positive and negative impacts of the Project on them, potential risks, and their attitude to, expectations for and suggestions on the Project. Women, old people, and staff members of public institutions were interviewed in depth. (iv). Key informant interview: Key informant interviews were conducted with heads of the women’s federation, poverty reduction office, ethnic and religious affairs bureau, land and resources bureau, LA and HD management office, civil affairs bureau, statistics bureau, and labor and social security bureau at the county level, and village heads at the village level, with the aim of learning the stakeholders’ comments and suggestions on the Subproject.

2.3 Permanent Land Acquisition 15. Due to the civil works of Component 1 Saline Soils Rehabilitation and Component 2 Flood Risk Management, the Project will acquire 5501.72 mu land and demolish temporary building in saltpan or along the branch sides. For the construction of excavation of Tianlu-Tianjiao Connection, the land 776.17 mu had been acquired in 2010, and the details can be seen in Due Diligence Report. Other packages are less related to land acquisition without physical impact. The details can be seen in Table 2-1. 16. The land to be acquired is all collective land in Pucheng County and Fuping County, involved 60 villages in 6 towns. Furthermore, 5334.72 mu land in Pucheng County includes 3069.07 mu waste land, most of which is saltpan, the details can be seen in Table 2-2.

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Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Table 2-1 LAR impact breakdown according to packages

Component/Package Description Sub-package Status Impact PLA(mu) A. Works (13 packages) 5501.72 I. Saline Soils Rehabilitation (8 packages) 2412.15 ADB-SS-CD-01-01 Under Construction PLA 213.4 ADB-SS-CW-01 Rehabilitation of Central Main ADB-SS-CD-01-02 Under detail design PLA 75 ADB-SS-CD-01-03 Under detail design PLA 415 Rehabilitation of Branch and Secondary Branch under ADB-SS-CW-02 Under detail design PLA 220.35 the Central Main ADB-SS-CW-03 Rehabilitation of East Main and its Secondary Branch Under detail design PLA 259 ADB-SS-CW-04 Rehabilitation of Middle Main and its Secondary Branch Under detail design PLA 191 ADB-SS-CW-07 Rehabilitation of West Main and its Secondary Branch Under detail design PLA 377.4 ADB-SS-CW-08-01 Under detail design PLA 82 Rehabilitation of West Main including structures, ADB-SS-CW-08 ADB-SS-CW-08-02 Under detail design PLA 366 management office, and on-farm works ADB-SS-CW-08-03 Under detail design PLA 213 GEF-SS-CW-09 Saline Soil management Ongoing No LAR 0 GEF-SS-CW-10 Shelter belt establishment Ongoing No LAR 0 II. Flood Risk Management (3 packages) 3089.57 ADB-FM-CW-01-01 0 ADB-FM-CW-01 Excavation of Tianlu-Tianjiao Lakes Connection Repackage and Bidding Pre-acquired ADB-FM-CW-01-02 0 ADB-FM-CW-02-01 Ongoing PLA 379 ADB-FM-CW-02-02 Ongoing PLA 395 ADB-FM-CW-02 Excavation of Tianlu Lake ADB-FM-CW-02-03 Ongoing PLA 439 ADB-FM-CW-02-04 Contract award PLA 320 ADB-FM-CW-02-05 Contract award PLA 300 ADB-FM-CW-03 Construction of lake road and dike No started PLA 1256.57 III. Wetland Ecosystem Conservation (2 packages) ADB-WE-CW-01 Construction of Wetland Management Facilities Ongoing No LAR 0 GEF-WE-ME Wetland Management Ongoing No LAR 0 7

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Component/Package Description Sub-package Status Impact PLA(mu) B. Goods (2 packages) I. Saline Soils Rehabilitation (1 package) ADB-SS-ME-01-01 Shopping No LAR 0 ADB-SS-ME-01 Office equipment for management offices ADB-SS-ME-01-02 No bidding No LAR 0 ADB-SS-ME-01-03 No bidding No LAR 0 II. Wetland Ecosystem Conservation (1 package) ADB-WE-ME-01 Equipment for Public Education Ongoing No LAR 0 C. Consulting Services (8 packages) I. Saline Soils Rehabilitation (5 packages) GEF-SS-CS-01 Soil Management Specialist Ongoing No LAR 0 GEF-SS-CS-02 Rural Business Development Specialist Ongoing No LAR 0 GEF-SS-CS-03 Eco-compensation Specialist Ongoing No LAR 0 GEF-SSTS-01 Field Schools Establishment Ongoing No LAR 0 GEF-SSTS-02 Alternative Livelihoods Ongoing No LAR 0 II. Wetland Ecosystem Conservation (1 package) GEF-WE-CS-01 Wetland Management Specialist Ongoing No LAR 0 III. Capacity Development (2 packages) ADB-CD-CS-04 Project Management Consultants Ongoing No LAR 0 GEF-CD-CS-01 Monitoring and Evaluation Specialist Ongoing No LAR 0 D. Training and Study Tours (6 packages) IV. Capacity Development (6 packages) ADB-TS-TST-01 Training on drainage system management skills Preparation No LAR 0 ADB-TS-TST-02 Training wetland management skills Preparation No LAR 0 ADB-TS-TST-03 Overseas study tour on saline soil improvement Preparation No LAR 0 ADB-TS-TST-04 Overseas study tour on wetland management Preparation No LAR 0 ADB-TS-TST-05 Domestic study tour on saline soil improvement Preparation No LAR 0 ADB-TS-TST-06 Domestic study tour on wetland management Preparation No LAR 0

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Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Table 2-2 Summary of Collective Land Acquired Permanently for the Project Package Works Town Pucheng County Fuping County PLA cultivated cultivated Village waste land subtotal Village subtotal land land ADB-SS-CW-01 Central Main Dangmu 1 213.4 213.4 213.4 Central Main Dangmu 1 75 75 75 Central Main Dangmu 2 135 135 135 Longchi 4 280 280 280 ADB-SS-CW-02 Dangmu Branch Dangmu 1 46.35 46.35 46.35 Fanjia Branch Dangmu 2 50 50 50 Longyang 2 50 50 50 Linji Branch Dangmu 1 38 38 38 Zhangjia Branch Dangmu 3 36 36 36 ADB-SS-CW-03 Dujia Branch Dangmu 3 20 20 20 East Main Dangmu 1 60 60 60 Dongchen 1 65 65 65 Jiangji Branch Dangmu 1 33 33 33 Mindi Branch Dangmu 1 24 24 24 Longyang 1 25 25 25 Tongyi Branch Longyang 3 32 32 32 ADB-SS-CW-04 Middle Main Dangmu 1 66 66 66 Dongchen 2 70 70 70 Neifu Branch Dongchen 1 31 31 31 Sibu Branch Dongchen 2 24 24 24 ADB-SS-CW-07 West Main Jingyao 1 47.4 47.4 47.4 Longyang 3 245 245 245 Shijia 1 85 85 ADB-SS-CW-08 Guancun Branch Shijia 2 15 15 Jiangjungou Branch Shijia 2 19 19 Shijia Branch Shijia 2 48 48 Donglei Branch Jingyao 2 50 50 50

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Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Package Works Town Pucheng County Fuping County PLA cultivated cultivated Village waste land subtotal Village subtotal land land Dongzhang Branch Jingyao 2 66 66 66 Jingyao Branch Jingyao 2 59 59 59 Mingde Branch Jingyao 2 58 58 58 Tianshuijing Branch Jingyao 3 73 73 73 Xujiazhuang Branch Jingyao 1 22 22 22 Zhongjia Branch Longyang 2 38 38 38 Dongchen Branch Dongchen 1 38 38 38 Dongxing Branch Dangmu 2 34 34 34 Dongxing 1st Branch Dongchen 4 35 35 35 Dongxing 2nd Branch Dongchen 1 35 35 35 Gaomi Branch Dangmu 1 30 30 30 Wijiazhai Branch Dangmu 1 19 19 19 Xichen Branch Dongchen 2 22 22 22 ADB-FM-CW-02 ADB-FM-CW-02-01 Dangmu 1 20.5 358.5 379 379 ADB-FM-CW-02-02 Dangmu 1 395 395 395 ADB-FM-CW-02-03 Dangmu 1 439 439 439 ADB-FM-CW-02-04 Dangmu 1 320 320 320 ADB-FM-CW-02-05 Dangmu 1 300 300 300 ADB-FM-CW-03 Dangmu 3 1256.57 1256.57 1256.57 Total 71 2265.65 3069.07 5334.72 7 167 5501.72

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Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

17. About 5334.72 mu of collective land will be acquired permanently in Pucheng County, including 2265.65 mu of cultivated land, 3069.07 mu of waste land, affecting 3423 households with 16,016 persons in 53 villages in 5 towns. Only 167 mu of collective land will be acquired permanently in Fuping County, which are all cultivated land, affecting 276 households with 1,216 persons in 7 villages in Shijia Town. See Table 2-3. Table 2-3 PLA Impact by Land Type and Affected villages cultivated waste subtotal County Town Village AHs APs land (mu) land (mu) (mu) Pucheng County 2265.65 3069.07 5334.72 3423 16016 Dangmu Dangbei 46.35 46.35 90 440 Dangnan 70 70 110 520 Dongshe 15 15 25 120 Fanjia 45.5 2247.54 2293.04 78 367 Jiangji 38 38 52 253 Linji 38 38 55 250 Linjia 66 66 98 471 Luyangnan 279.4 593.17 872.57 426 1807 Luyangxin 66 228.36 294.36 105 494 Mindi 33 33 50 234 Nanwang 65 65 90 400 Pailou Zhangjia 12 12 20 96 Wujiazhuang 17 17 25 120 Xiwangjia 9 9 15 71 Yanwang 25 25 35 170 Zhajia 75 75 100 450 Dangmu subtotal 16 900.25 3069.07 3969.32 1374 6263 Dongchen Dongchen 38 38 50 241 Fuxin 9 9 12 57 Jiangji 65 65 100 481 Lijiazhuang 9 9 11 52 Neifu 65 65 135 656 Sanli 9 9 15 74 Sibu 11 11 18 84 Wujiazhai 35 35 50 238 Wujiazhuang 8 8 10 49 Xichen 11 11 15 71 Xinglong 48 48 65 320 Xinli 12 12 15 75 Dongchen subtotal 12 320 320 496 2398 Jingyao Donglei 25 25 40 189 Dongxing 20 20 35 151 Dongyao 47.4 47.4 65 314 Ganquanfang 25 25 40 190 Gaodu 19 19 30 144 Mingde 39 39 60 281 Nanbeibu 33 33 50 237 Tianshuijing 33 33 45 212 Wangjia 39 39 60 286 Xichang 33 33 45 211 11

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

cultivated waste subtotal County Town Village AHs APs land (mu) land (mu) (mu) Xizhang 20 20 30 143 Xujiazhuang 22 22 35 150 Zhaizi 20 20 30 142 Jingyao subtotal 13 375.4 375.4 565 2650 Longchi Chedu 70 70 110 510 Chongquan 70 70 95 450 Longchi 70 70 110 530 Wusi 70 70 100 480 Longchi subtotal 4 280 280 415 1970 Longyang Beihandi 25 25 40 181 Fuwang 100 100 150 717 Hejia 10 10 15 82 Nanhandi 10 10 15 82 Tongyi 12 12 18 91 Zhaojia 115 115 160 750 Zhaojiazhuang 22 22 25 117 Zhongjia 96 96 150 715 Longyang subtotal 8 390 390 573 2735 Fuping County 167 167 275 1216 Shijia Guan 8 8 15 69 Nanping 85 85 150 622 Nanpo Dujia 10 10 15 71 Shangliu 28 28 40 191 Taoyuan 9 9 15 72 Wangjia 20 20 30 143 Zhaojia 7 7 10 48 Shijia subtotal 7 167 167 275 1216 Total 6 60 2432.65 3069.07 5501.72 3698 17232

18. As the land acquisition for branch rehabilitation is linear, the number of affected villages and households is large, but impacts are limited per household. In terms of average land loss of affected households, the highest is 7.6% in Jingyao while the lowest is 5.0 % in Dongchen Town. Table 2-4 PLA Impact Analysis at Town Level before Land Acquisition after Land Acquisition Per Household Per Household Land Farmland The Farmland Acquired Town Farmland Average Acquisition in Villages Number of Farmland (10000 mu) Farmland Households Affected (mu/household) Loss(mu) Loss Rate Loss Rate households Dangmu 11000 9.8 8.9 1374 900.25 0.9% 7.4% Jingyao 17700 15.5 8.76 565 375.4 0.2% 7.6%

Dongchen 3500 4.5 12.86 496 320 0.7% 5.0%

Longyang 5890 5.6 9.51 573 390 0.7% 7.2%

Longchi 7456 7.2 9.66 415 280 0.4% 7.0%

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Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Shijia 15000 15.7 10.47 275 167 0.1% 5.8%

Figure 2-1 General Main Channel before rehabilitation

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Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Figure 2-2 Linji Branch Channel before rehabilitation 19. In terms of individual household level land loss rate, among the 3,698 households affected by PLA, 595 AHs (16.0%) will lose 0-6% of their cultivated land, 1649 households (44.7%) will lose 6-7%, 1353 households (36.6%) will loss 7-8%, and only 101 AHs (2.7%) will lose more than 8%. No household will lose land of more than 10%. See Table 2-5. Table 2-5 Land Loss Rate Distribution of Affected Households No Administration The Distribution of the Loss Rate of Farmland of Subtotal Area of Project Households Acquired Land in the Project(Household) ≤6% 6%—7% 7%-8% ﹥8% 1 Dangmu Town 2 861 505 6 1374 2 Jingyao Town 5 85 400 75 565 3 Dongchen Town 395 100 1 0 496 4 Longyang Town 42 271 242 18 573 5 Longchi Town 8 201 204 2 415 6 Shijia Township 143 131 1 0 275 Total 6 595 1649 1353 101 3698 Proportion (%) 16.0% 44.7% 36.6% 2.7% 100.0%

2.4 Temporary Land Occupation 20. About 2042.5 mu of land will be occupied temporarily, which are totally for Component 1 in Pucheng County. The planned period of occupation will be two years. See Table 2-6. 21. S Table 2-6 Temporary Land Occupation for the Project Utilization Current site Amount Occupation time Occupatio reclam situation (mu) n time ation Construction farmland Main and branch 57 During the 2 years Yes and life area ditch construction time Construction farmland Main and branch 1018.35 During the 2 years Yes road ditch construction time Site for spoil farmland Along the main 967.15 During the 2 years Yes from main ditch, east of construction time channels Jingcheng village

2.5 Demolition of Rural Temporary Buildings 22. In the implementation stage, almost all the APs are contractor on salt pans with temporary building demolished. All the non-residential houses were used for salt production, management, and warehouse for the tools. Besides, the main channels rehabilitation will demolish some simple house or mud-wood house used for production tools storage. See Table 2-7. Table 2-7 Temporary Building Demolition for the Project Component Package No. sub-package Amount (m2) I. Saline Soils Rehabilitation ADB-SS-CW-01 500 ADB-SS-CW-02 500 ADB-SS-CW-03 450 ADB-SS-CW-04 350 ADB-SS-CW-07 600 I. Saline Soils Rehabilitation Subtotal 2400 II. Flood Risk Management ADB-FM-CW-02 ADB-FM-CW-02-01 3906.47 ADB-FM-CW-02-02 559.58 ADB-FM-CW-02-03 992.55 ADB-FM-CW-02-04 2483.66 ADB-FM-CW-02-05 4028.79 ADB-FM-CW-03 4955.57 II. Flood Risk Management 16926.62 Total 19326.62 14

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

2.6 Affected Vulnerable Groups

23. Among the affected households, there are 19 vulnerable households (5.38% of all the affected households) are offered subsistence allowances by the government. The 19 vulnerable group households include 5 disabled households, 10 low income households and 4 five- guarantee households. They will be entitled to special support as AHs. And the Project Office confirmed that 0.5% of the total resettlement budget will be used as the special rehabilitation fund for the vulnerable group. Table 2-8 Details of affected vulnerable groups Village/County Name Population(person) category Linjia, Pucheng Cheng Youcang 4 Disabled Linjia, Pucheng Wu Jiyuan 3 Disabled Linjia, Pucheng Song Xiannian 4 ill Linjia, Pucheng Yang Wuxi 2 Old and weak subtotal 4 households 13 persons Donglou, Pucheng, Weinan Wei Baozhu 4 Disabled Donglou, Pucheng, Weinan Cui Jilin 4 Disabled Donglou, Pucheng, Weinan Chang Qingyu 3 Old and weak Subtotal 3 households 11 persons Chitou, Pucheng Li Xiangquan 4 Disabled Chitou, Pucheng Li Zhiming 3 Ill Chitou, Pucheng Li Sanxi 5 old and weak Subtotal 3 households 12 persons Shuinan, Pucheng Wang Xinhong 4 Old and weak Shuinan, Pucheng Liu Jungang 4 ill Shuinan, Pucheng Liu Panxin 4 Disabled Shuinan, Pucheng Liu Heping 3 Old and weak subtotal 4 households 15 Fujia, Pucheng Wang Yali 4 ill Fujia, Pucheng Wang Daimin 4 ill Fujia, Pucheng Wang Haisheng 3 Old and weak Fujia, Pucheng Zhao Wenyuan 3 Old and weak Fujia, Pucheng Li Huamin 5 Disabled subtotal 5 households 19 persons Total 19 households 70 persons

2.7 Affected Women

24. In the population affected by the Project, no widowed, divorced or abandoned woman was found among the respondents. The affected women enjoy the same rights as men, including land contracting, education receiving, family planning and election. Most of the female labor respondents think that they have the same autonomy in production and management as men, and may elect to get employed or do small business independently.

25. The impact of the Project on women’s income is due to the acquisition of cultivated land, while per capita crop cultivation income is 1,000-1,500 yuan, accounting for 8% of household income. Boys and girls have equal opportunities in education, showing no gender-related difference.

26. According to the survey, women have the same concerns as those of men: (a) Compensation rates should comply strictly with the state laws and policies; (b) Compensation fees should be disbursed directly to the AHs. Women have the following needs that are different from those of men: (a) Women expect both cash compensation and land reallocation; (b) Women want skills training in fruits cultivation, stockbreeding and handicrafts; and (c) Women also expect to participate in village-level management. 15

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

2.8 Affected Infrastructure and Ground Attachments

27. The Project will affect 12 types of attachments, namely enclosing walls, fences, cement grounds, telegraph poles, streetlamps, junction boxes, transformers, tombs, wells and trees. See Table 2-9. Table 2-9 Summary of Affected Ground Attachments Item Unit Amount Brick enclosure m 2000 Grown fruit tree tree 1218 Grown tree tree 600 Water closet each 100 Young fruit tree tree 696 Young tree tree 3000 water cellar each 80 well each 70 concrete pole each 300 chimney each 50 transformer each 30 power line m 3000

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Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

3 SOCIOECONOMIC ANALYSIS OF AFFECTED AREA 3.1 Socioeconomic Profile of the Project Area

3.1.1 Socioeconomic Profile of the Affected Counties 28. Pucheng County, located in the northeast of Weihe River Plain, 110 kilometers away from Xi'an, with a total area of 1584 square kilometers and a total population of 760,000, the location of National Time Service Center, has 24 townships and 359 administrative villages. Primary industry is dominated by grain, fruit, animal husbandry and greenhouse facilities at Pucheng County, which has 1.68 million mu of arable land and above 0.65 billion kilograms of grain total output. Besides, Pucheng County is the key county of high-quality fruit industrialization and known as pear. The secondary industry is dominated by energy and chemical industries, agriculture related industries, fireworks, processing etc. The tertiary industry is dominated by tourism, catering and logistics. 29. The county’s regional GDP was more than 15.62 billion yuan in 2014, up 10.1% year on year. Rural residents’ per capita net income was 8,490 yuan, up 11.5% year on year; total retail sales of social consumer goods 5.1 billion yuan, up 14% year on year. 3.1.2 Socioeconomic Profile of the Affected Towns 30. Dangmu Town is located in 15 kilometers south of Pucheng County. The widest span from east to west is 12 kilometers, and the longest span from south to north is 11 kilometers. The total area of this town is 94.73 square kilometers. The town’s jurisdiction includes 25 administrative villages, 162 village groups, 68 villages, 11,000 households, 43,700 persons, the total cultivated land area of 94,900 acres. The industries is dominated by breeding industry, facility agriculture and manufacturing and services in the town. The town’s regional GDP was 0.449 billion yuan in 2014, up 10.9% year on year. Rural residents’ per capita net income was 6986 yuan, up12.4% year on year. Table 3-1 The Social and Economic Situation of the Affected Towns No Town HHs population Farmland Area(ten thousand The Average Number of of People Per Household( Capita Per Farmland(m u/person) Capita Per Net Income of Farmers(yu an) 1 Dangmu 11000 43700 9.8 4 2.24 10086 2 Jingyao 17700 85000 15.5 4.8 1.82 9210

3 Dongchen 3500 17289 4.5 4.9 2.6 13700

4 Longyang 5890 25000 5.6 4.2 2.24 12980

5 Longchi 7456 35000 7.2 4.7 2.06 18000 6 Shijia 15000 75000 15.7 5 2.09 9841

3.1.3 Socioeconomic Profile of the Affected Villages 31. The land acquisition and relocation of this project will affect six administrative villages in Dangmu Town, Weinan City, with a total population of 2,359 households, 10,736 people. 32. According to the survey, as of the end of 2015, there is no scale business enterprise in the 6 villages affected by the project, and the villagers only have some temporary business income, such as the income of nitrate production using local natural conditions. With the development of the project, local farmers' income structure is changing, with the proportion of agricultural income declining, the proportion of income of independent business and service industry and other tertiary industries increasing. Table 3-2 summarizes the social and economic situation of the affected villages.

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Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Table 3-2 The Social and Economic Situation of the Affected Villages Total The Total Total Poor Per capita Affected Cultivate Industrial Number of Population Male Female Persons/ Income in Villages d Area Structure Households (Persons) Household Rural Area (MU) Go out to work, independent Chitou 657 2796 1425 1371 78/28 5500 7332 management and farming Go out to work, independent Shuinan 364 1494 784 710 51/13 3800 6631 management and farming Go out to work, independent Linjia 574 2595 1326 1269 88/30 5000 8094 management and farming Go out to work, independent Fanjia 254 1317 672 645 46/13 6000 7906 management and farming Go out to work, independent Fujia 243 1241 631 610 42/12 4449 7700 management and farming Go out to work, independent Liujia 267 1320 684 636 50/11 4562 7505 management and farming Go out to work, independent 6 2359 10763 5543 5220 355/107 29311 7528 management and farming

3.2 Socioeconomic Status of the Affected Population

3.2.1 Analysis of Household and Female Population 33. We conducted a sample survey of 1,500 households, accounting for 6% of the total number of households in the 9 sample villages, accounting for 15.5% of all 71 affected villages. 34. In the 1,500 households surveyed, the total number of population is 7,235, the labor 4,842. These people are all Han Nationality, and the number of female is 3,400 accounting for 47% of total respondents. 3.2.2 Age Structure 35. Among the 1,500 households, 7,235 persons, the number of people under the age of 16 accounts for 17.8%, between 16 and 39 34.2%, between 40 and 59 34.6%, over 60 13.4%.

under 16 16‐39 40‐59 over 60

Figure 3-1 Age Distribution

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Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

3.2.3 Educational Level 36. Among the 1,500 households, 7,235 persons, literacy in primary school or below accounts for 21.2%, middle school 32.9%, high school 33.3%, college or above 12.6%. Figure 3-2 illustrated the education background of sample people.

primary school or below middle school high school College or above

Figure 3-2 Education Distribution 3.2.4 Housing Conditions 37. The structure of sample house were major brick-concrete structure and brick-wood structure, with a total housing area of 376,500 m2, or 251 m2 per household on average and 52 m2 per capita. 18.4% households with an area of under 100 m2, 33.4% with an area of 100 -150 m2, 34.6% with an area of 151-300 m2, 10.8% with an area of 301-450 m2, 2.9% with an area of over 451m2.

3.2.5 Household Income and Expenditure 38. The surveyed households have an average annual per household income of CNY 35,000 and an average annual per capita income of CNY 3,125. The income of farmers in the agricultural accounts for a large proportion, and this is consistent with the local industrial structure. Women generally are engaged in farming or handicraft industry, while male labor farming or going out to work. 39. The surveyed households have an average annual household expenditure of CNY 29,000, with household operation expenses CNY 5,000 (17.2%) per household, living consumption expenses CNY 20,000 (69%) per household, other expenses CNY 4,000 (13.8%) per household. The Table 3-3 illustrated the sample households income and expenditure.

Table 3-3 Sample Households Income and Expenditure Item Proportion Per Household Income Per Capita Income % Yuan/Household Yuan/Person Agriculture income 43 15000 3125 Forestry income 0 0 0 Animal husbandry income 0 0 0 Industrial income 0 0 0 Construction industry income 0 0 0 Transportation business 0 0 0 income Service industry income 0 0 0 Other non-agriculture income 3.4 1200 250 Outgoing labor income 51 18000 3750

Annual household income Annual household Collective distribution income 0 0 0 Property income 2.7 800 167 Subtotal 100 35000 7292

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Proportion Per Household Per Capita % Expenditure Expenditure Yuan/Household Yuan/Person Household operation 17.2 5000 1042 expenses Living consumption 69 20000 4167 expenses

Annual Other expenses 13.8 4000 833 Household Expenditure Subtotal 100 29000 6042

3.3 Social and Gender Analysis

40. After the implementation of the project, the affected persons will lose some land, but they can get relevant compensation and improve the living standard through the implementation of the project. In the affected area, the women do most of the housework, so the improvement of the living condition and the environment will lessen their labor. And they can get more job chances because of the improvement of the living condition. Of course, in the socioeconomic survey of the affect to the women, it is shown that both the men and the women concern the just and in-time compensation. 41. Moreover, the income from agriculture is only the 26.51% of the total household income, and the women undertake 72% of the agricultural work, that is, the women earn 3976 yuan every year. After the implementation of the project, the women will lose a small portion of their income but they will get more job chances through more business activities. The villages are formulating rehabilitation plans, which will be renewed in the later reports.

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Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

4 LEGAL FRAMEWORK AND POLICIES 4.1 Laws, Regulations and Policies Applicable to Resettlement

42. The resettlement policies of the project have been developed in accordance with the relevant laws, regulations and policies of the PRC, and ADB policies, including:

Policies of ADB

Safeguard Policy Statement June 2009 Gender Checklist: Resettlement Analysis February 2003

Laws, regulations and policies of the PRC

(1) The Land Administration Law of the People’s Republic of China. (Amended at the Eleventh Session of the Standing Committee of the Tenth National People’s Congress on August 28, 2004; and effective as of then) Main contents: formulations on land ownership, land using overall plan, farmland protection, land for construction, supervision and inspection, legal responsibility, including land expropriation compensation, subsidy standard for relocation, and relocation way of relocated people. (2) Regulations on the Protection of Basic Farmland (No.257 Decree of the State Council of The People’s Republic of China on December 27, 1998) Main contents: in line with Agriculture Law of the People’s Republic of China and the Land Administration Law of the People’s Republic of China, concrete formulations for the country’s protection of basic farmland, including delimitation, protection, supervision and management, legal responsibility, and so on. (3) Interim Regulations of Farmland Use Tax of the People’s Republic of China (No. 511 Document of the State Council issued on December 1, 2007 and effective on January 1, 2008) Main contents: formulations about tax contribution standard and contribution range of state construction occupied farmland (4) Decision on Furthering Reform of Land Management of the State Council (Guofa [2004] No. 28, October 21, 2004) Main contents: In order to use the land properly, to protect the legal rights of the peasants whose land is expropriated, to maintain social stability, and to perfect the land expropriation and resident relocation system, the decision puts forward the guide principle and way to perfect the compensation of land expropriation. The decision asks all the county, city and province governments to take useful measures to make sure that the peasants’ living standard will not decrease after their land is expropriated, and that according to laws in force, the land compensation, relocation compensation, ground attachment and young crop compensation are paid in full and in time. If according to laws in force, after the payment of land compensation and relocation compensation, the peasants whose land is expropriated cannot maintain the original living standard , and their social security can not be paid , the province , autonomous region and municipality government should agree to add relocation compensation. If the sum of land compensation and relocation compensation reaches the legal upper limit, but the peasants whose is expropriated couldn’t remain the living standard as before, the local people’s government can subsidy with the state-owned land income. The government of province, autonomous region and municipality should work out and promulgate the standard of output value or price of land. The land expropriation should be the same land the some price. The national key construction project should take the expense of land expropriation into its budget. (5) Notice on Printing the Suggestions for Completing Compensation and Relocation System of Land Expropriation by the Ministry of Land Resources of People’s Republic of China (Guotuzifa [2004] No. 238, November. 3, 2004,) Main contents: In order to put forward how to carry through ”The Decision of the State Council on Deepening the Reform and Strictly Enforcing Land Administration” especially aiming at some problems during the land acquisition compensation and relocation system. 21

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

(6) The Property Law of the People’s Republic of China. (Order of the People’s Republic of China No. 62, in effect as of October 1, 2007) Main contents: The present Law is enacted with a view to maintaining the basic economic system of the state, protecting the socialist market economic order, clearly defining the attribution of the res, bringing into play the utilities of the res and safeguarding the real right of the right holder. The civil relationships incurred from the attribution and utilization of the res shall be governed by the present Law.

Relevant policies of Shaanxi Province and Weinan Municipality

(1) Regulations on the Implementation of the Land Administration Law of the People’s Republic of China in Shaanxi Province (adopted at the Twelfth Session of the Standing Committee of the Ninth Provincial People’s Congress on November 30, 1999, and effective on January 1, 2000) Main contents: in line with the Land Administration Law of the People’s Republic of China, and the reality in Shaanxi Province, concrete formulations on the land administration in Shaanxi Province. (2) Detailed Implementation Regulations on Regulations on the Protection of Basic Farmland of Shaanxi Province (No. 30 Decree of the People’s Government of Shaanxi Province on April 4, 1996) Main contents: in line with the Land Administration Law of the People’s Republic of China, Regulations on the Protection of Basic Farmland by the State Council, relevant laws and regulations, and the reality in Shaanxi Province, concrete formulations on the protection of the basic farmland in Shaanxi Province. (3) Regulations on Land Acquisition for Construction Project of Shaanxi Province. (No. 78 document issued and effective as of January 8, 2002 by Shaanxi Provincial Government). Main contents: to regulate the land acquisition in Shaanxi Province. According to The Land Administration Law of the People’s Republic of China and Regulations on the Implementation of the Land Administration Law of the People’s Republic of China of Shaanxi Province, the regulations puts forward the principal and method to protect, explore and use land reasonably, and to guarantee construction land environment and to balance the land use and supplement. (4) Notice on the Average Standard of Unified Annual Output Value and Section Comprehensive Land Price on Land Acquisition in Shaanxi Province (No. 36 document issued on April 13, 2010 by the Office of Shaanxi Provincial Government) Main contents: Publish the standard of the unified annual output value (UAOV) of all the cities in Shaanxi Province. Publish the times of UAOV for land acquisition and resettlement allowance of all the cities in Shaanxi Province. Put forward that the principle on land acquisition compensation should be based on same price of same farmland, coordination and balance, and openness. (5) Notice on Land Acquisition and Implementation Scheme for Ecological Environment Project, Dredging and Rehabilitation of Main Desalination Drainage Channels in Weinan Luyanghu Modern Industries Development Zone (No.53 document issued on April 9, 2014 by the Office of Pucheng County Government) Main contents: propose compensation and resettlement policy for land acquisition.

4.2 Abstract of ADB Policies

43. The objectives of ADB's Involuntary Resettlement Policy are (i) If possible, involuntary resettlement should be avoided; (ii) If resettlement is unavoidable, all feasible options should be explored and the scope of resettlement should be as small as possible; (iii) Ensure that the displaced persons have the same economic and social conditions before and after the project; and (iv) Improve the living standard of displaced poor and other vulnerable groups.

44. Involuntary resettlement is an important part of the project design and resettlement plans. Planning and implementation should take into account the following basic principles:

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Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

(1) Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning through a survey and/or census of displaced persons, including a gender analysis, specifically related to resettlement impacts and risks. (2) Carry out meaningful consultations with affected persons, host communities, and concerned nongovernmental organizations. Informally displaced persons of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs. Pay particular attention to the needs of vulnerable groups. Support the social and cultural institutions of displaced persons and assist the local population in the resettlement area. (3) Improve or at least remain, the livelihoods of all displaced persons through (i) land- based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible. (4) Provide physically and economically displaced persons with needed assistance, including the following: (i) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required. (5) Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards. In rural areas provide them with legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing. (6) Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status. (7) Ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of non-land assets. (8) Prepare a resettlement plan elaborating on displaced persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. (9) Disclose a draft resettlement plan, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders. (10) Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of the project’s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation. (11) Pay compensation and provide other resettlement entitlements before physical or economic relocation. Implement the resettlement plan under close supervision throughout project implementation. (12) Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and whether the objectives of the resettlement plan have been 23

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports. 4.3 Main Differences between ADB Policy and PRC Laws and Solutions to fill gaps

Compensation for land

Difference: ADB policies require that compensation should be sufficient to offset any income loss, and restore long-term income-generating potential. Chinese standards are based on average annual output value (AAOV). Solution: An early-stage solution is to provide replacement land, which is hardly practical. Cash compensation is the preference of most people, though they cannot ensure the rational use of such compensation. Therefore, further technical support is needed to monitor the income of seriously affected households, especially those in vulnerable groups, and local governments should provide assistance to those in need.

Compensation and resettlement of vulnerable groups

Difference: ADB policies require that special compensation is granted to all vulnerable groups, especially seriously affected households faced with impoverishment. Chinese provisions do not require social analysis, and compensation is based only on the amount of loss. Solution: Special funds are available to assist the vulnerable groups, who are identified during the DMS. The funds are part of the general resettlement budget. All measures have been specified in the RP.

Consultation and disclosure

Difference: ADB policies require APs are fully informed and consulted as soon as possible. Chinese provisions have improved the transparency of disclosure and compensation. However, APs still play a weak role in project decision-making, and the disclosure period is usually too short. Solution: Consultation has begun at the early stage (before and during the technical assistance). From 15 May to 16 June 2012, all five affected villages hold villager representatives meeting to discuss the resettlement policy and compensation rates in the draft resettlement plan. The representatives have already included female, vulnerable groups, the elderly and so on. The PMO agrees to disclose the RP to APs as required by ADB. And will continue during the project implementation.

Lack of legal title

Difference: Ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of non-land assets. According to Chinese laws, no compensation should be provided for the acquisition of illegally owned land. Solution: For an ADB financed project, all APs, whether lawful or not, whether having ownership or right of use, will be protected, and provided with compensation or assistance.

Resettlement monitoring, evaluation and reporting

Difference: ADB requires that internal and external resettlement monitoring be conducted. However, there is no such requirement in Chinese laws. Solution: Internal and external resettlement monitoring systems have been established for all ADB financed projects, and this has been included in the RP. The requirements for internal and external monitoring reporting are specified in the RP

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Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

4.4 Cut-Off Date of Compensation

45. The cut-off date for the eligibility for compensation is April 9, 2014, which has been disclosed in the project area from May to September 2014. Any newly claimed land, newly built house or settlement in the project area by the APs after this date will not be entitled to compensation or subsidization. Any building constructed or tree planted purely for extra compensation will not be counted in.

Figure 4-1 LAR information disclosure and cut-off date announcement 4.5 Compensation Rates 4.5.1 Compensation Rates for Acquisition of Collective Land

46. The collective land to be acquired is compensated in monetary compensation according to the Notice on the Average Standard of Unified Annual Output Value and Section Comprehensive Land Price on Land Acquisition in Shaanxi Province (2010) and Notice on Land Acquisition and Implementation Scheme for Ecological Environment Project, Dredging and Rehabilitation of Main Desalination Drainage Channels in Weinan Luyanghu Modern Industries Development Zone (2014). In the light of the social and economic development strength and features within the Project area, the compensation rate for collective farmland is CNY 28500 Yuan/mu in Pucheng County, CNY 31063 Yuan/mu in Fuping County, including land compensation and resettlement allowance. The compensation rate for young crops in farmland is CNY 1000 Yuan/mu in Pucheng County, CNY 1300 Yuan/mu in Fuping County as the average annual output of the land before expropriation in the first three year. Besides, the young crops in greenhouse is CNY 5000-6000 Yuan/mu. The compensation rate for saltpan is CNY 6900 Yuan/mu, including construction subsidy, land compensation and resettlement allowance.

47. In addition, the land compensation and resettlement allowance of arable land is paid directly to the affected villages by bank transfer, and then the village committee allocate the compensation depends on the representative meeting, while only the land compensation of saltpan to the affected villages. The other compensation is paid directly to the APs by personal bankcard. Table 4-1 Compensation rate for acquired collective land Land Type Arable Land Saltpan Receiver Pucheng Fuping young crops (CNY/mu) 1000 1300 - APs construction subsidy (CNY/mu) - - 1000 APs land compensation (CNY/mu) 28500 31063 5000 village committee 25

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project resettlement allowance (CNY/mu) 900 APs Subtotal (CNY/mu) 29500 32363 6900 48. According to the State policy, Article 47 in Land Administration Law of PRC (Revised on 28 August 2004), the land compensation and resettlement allowance for arable land should be 6 to 10 times and 4 to 6 times the average annual output value (AAOV) respectively, and the compensation rate for the other type land is prescribed by the provincial government. According to the relevant regulation, Regulations on the Implementation of the Land Administration Law of PRC in Shaanxi Province (effective on January 1, 2000), Article 29 instructs that compensation rate for young crops is 40%---90% of AAOV, the land compensation for the other type land is 1 to 4 times AAOV of moderate arable land, while the resettlement allowance is 1.2 to 3.6 times. The UAOV of Pucheng County is CNY 1286 Yuan/mu which replace the AAOV from May 2010, so the compensation rate for young crops is 77.8% of UAOV. Moreover, the compensation rate for arable land is equivalent 22.2 times of UAOV, while the saltpans is about 4.59 times which lies in the valid range. 49. In accordance with ADB policy requirements, the proposed standards should be at least equivalent than the replacement cost. Since there is no market value for collective land in the PRC, compensation rates for acquisition of collective land are based on the gross UAOV of the land category times a multiple. Basically, the net income from farmland is typically 30% to 50% of the of the gross output value after deducting production costs. This is supported by evidence of low lease rates for idle farmland (i.e., the person with the land use right doesn’t expect much income from the land and can earn much more from off-farm employment). This means the proposed multiple of farmland for the Project is 22, which is equivalent to 44 years of net income at least. 50. Based on the interview with the APs, the AAOV of saltpan is CNY 560 Yuan/mu (8 tons multiple 70 Yuan/ton), and the cost including electricity, fuel, rent, transportation is about CNY 360 which brings CNY 200 in profit. This means the proposed compensation rate for saltpan is equivalent to 29 years of net income at least. APs suffering partial loss would receive compensation, which can be used to improve their remaining farmland, or converting to plant cash crops, or seek off-farm employment or save in a bank and earn enough interest to cover the net income loss. 4.5.2 Compensation Rates for Temporary Land Occupation 51. According to the Notice on Land Acquisition and Implementation Scheme for Ecological Environment Project, Dredging and Rehabilitation of Main Desalination Drainage Channels in Weinan Luyanghu Modern Industries Development Zone (2014), temporary occupied land will be compensated for at local AAOV, namely CNY 1,000 Yuan/mu annually. The period of TLO of the Project will be two years. PMO will supervise and the contractor will take charge of restore the temporarily occupied land after the expiry of the above period, and relevant costs will be included in the general budget of the Project. 4.5.3 Compensation Rates for Rural Temporary Buildings 52. The temporary building demolition will be compensated in accordance with the Notice on Land Acquisition and Implementation Scheme for Ecological Environment Project, Dredging and Rehabilitation of Main Desalination Drainage Channels in Weinan Luyanghu Modern Industries Development Zone (2014). Most of the temporary buildings are used for saltpan production and warehouse along to the saltpans. The affected saltpan producers can utilize the construction materials of their previous building for their new temporary building construction.

Table 4-2 Compensation rate for temporary building Structure grade Unit Compensation rate Remark Brick-concrete I Yuan/m2 800 with decoration Brick-concrete II Yuan/m2 700 Brick-wood I Yuan/m2 700 with decoration Brick-wood II Yuan/m2 600 Mud-wood Yuan/m2 450 Simple Yuan/m2 85 asbestos shingle

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Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Cave-house Yuan/m2 500 53. It’s calculated that the price of replacement cost for brick-concrete building is about 500 yuan/m2. The following is an example of the construction cost of temporary building.

Table 4-3 Replacement cost analysis on temporary building name site Building time type area Distance to county Mr.F Dangmu town of, Pucheng 2010.8 simple 60 m2 18KM Material fee cement380 yuan/tonincluding fare× 15 ton= 5700 yuan, purchase place: Pucheng County brick0.4yuan/ eachincluding fare× 40000 = 16000 yuan sand50yuan/m3including fare× 24m3=1200yuan purchase place: Pucheng County stone60yuan/m3×18m3=1080yuan, purchase place: purchase place: Pucheng County wood860yuan/m3including fare×3m3=2580yuan Polycarbonate cover22yuan/m0.7m wideincluding fare×75m=1650yuan other material1200 yuannail, wire, power charge water and power material 540yuan cost of labornot including owners’ labor skilled labor 50yuan/m2×60 m2=3000yuan Total price27250yuan Average price not including service fee454.1yuan/ m2

4.5.4 Compensation Rates for Attachments and Infrastructure 54. Ground attachments on the permanently and temporarily acquired land will be compensated based on replacement cost and in accordance with the Notice on Land Acquisition and Implementation Scheme for Ecological Environment Project, Dredging and Rehabilitation of Main Desalination Drainage Channels in Weinan Luyanghu Modern Industries Development Zone (2014). The compensation rates are shown in Table 4-4. The affected professional facilities, such as transformer, water conservancy, power supply, telecommunication, road and so on will be compensated according to the replacement price after appraisement. Table 4-4 Compensation Standards for the Ground Attachments

Item Unit Unit Price Cool house Yuan/m2 120 Tree Yuan/tree 5 - 80 Garden Yuan/mu 1000 - 3000 Plant nursery Yuan/mu 3500 - 6500 Brick Wall (2.0 m) Yuan/m 70/130 Cattle Livestock Shed Yuan/m2 85 Simple livestock shed Yuan/m2 115 Earth-built Canal, Pool Yuan/m3 25 Greenhouse Yuan/m2 25/30 Hand-operated Well Yuan/set 600 Brick well Yuan/hole 5,000 Motor-pumped Well Yuan/hole 12,000 Grave Yuan/set 1,000/1,500 Tobacco stove Yuan/set 1,500 Glauber salt stove Yuan/set 30,000 Earth-build canal Yuan/m 100 Fish pool Yuan/ m2 5/15 Brick-concrete cellar Yuan/set 4,000 Brick-mud cellar Yuan/set 500

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Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Item Unit Unit Price Electricity pole Yuan/pole 300

4.5.5 Rates of Other Costs See Table 4-5. Table 4-5 Rates of Resettlement Taxes and Fees No Item Rate Basis Received by 1 Farmland occupation tax 6670 Yuan/mu SPG [2009] No.141 LRB 2 Land reclamation fee 15008 Yuan/mu SLRB [2015] No.11 LRB 3 New construction land use fee 6670 Yuan/mu CZ [2006] No.48 LRB 4 LAR administration fee 2% of land acquisition JF [1992] No.597 LRB 5 Skills training costs 1% of direct costs 6 Administrative costs 3% of direct costs IA 7 RP preparation costs 0.3% of direct costs design institute 8 External M&E costs 0.5% of direct costs external agency 9 Rehabilitation fund for vulnerable group 10 Contingencies 10% of direct costs

4.5.6 Vulnerable Groups

55. Vulnerable groups affected by the Project are also entitled to the following preferential policies: (i) Laborers in vulnerable households will be provided with occupational training, and employment information and guidance in order to increase their job opportunities. (ii) During project construction, laborers in vulnerable households will have priority in being employed for unskilled jobs. (iii) A rehabilitation fund will be established in cooperation with the relevant bureaus; this fund will be listed separately in the resettlement budget.

Figure 4-2 Meeting minute of the establishment of rehabilitation fund for vulnerable groups

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Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

4.6 Entitlement Matrix

56. The entitlement matrix has been established in accordance with the applicable policies in this chapter, as shown in Table 4-6.

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Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Table 4-6 Entitlement Matrix

Type of Degree of impact Affected people Rights Compensation policies and rates impact 1 The AP can choose cash compensation or land redistribution. 2 The APs receiving all compensation if their village cannot redistribute the left land for them (the land redistribution need to get 2/3 of whole villagers agree); 3 The affected villages can keep the compensation farmland28500 yuan/mu (Pucheng),31063 in the village when they redistribute same area yuan/mu (Fuping) Permanent 17232 persons, farmland for the APs to develop village public wasteland with salt pan5000 yuan; acquisition 5501.72 mu 3698 facilities, or share it to all villagers construction subsidy 1000 yuan/mu of collective collective land households,71 4 the compensation for young crop will be young crop: 1000 yuan/mu (Pucheng),1300 land villages of 6 towns compensated to the land user yuan/mu (Fuping) 5 At least 300 households with 1,500 members will get training on garden plant seedling produce and fruit tree care 6 During project construction, it is estimated around 300 unskilled jobs are available, while 140 jobs during operation 7 Each AP will get at least one skill training. 1 Affected village: receiving temporary occupied compensation Farmland 2000yuan/mu/2 years 2 Affected persons: receiving young crop waste land 600 yuan/mu/2 years Temporarily APs; compensation and salt-pan compensation Compensation for young crop600 yuan/mu occupied 2042.5 mu 3 Affected persons: if construction contractors Reclaim cost: farmland, 600 yuan/mu, waste land Affected villages 1 don’t reclaim or Aps is not satisfied the reclaim land220 yuan/mu quality, the reclaim cost will be given to the Aps to restore the land. 2 2 Brick-concrete 800 yuan/ m Demolition 19326 m 175 persons, 35 Brick-concrete 700 yuan/ m2 of temporary building, households, 5 1 Market assessment, replacement price as 2 Brick-wood 700 yuan/ m temporary most of them related villages of Dangmu compensation for demolished temporary building 2 Brick-wood 600 yuan/ m building with salt pans town Mud-wood 450 yuan/ m2

1 Occurred only when the construction agency don’t restore the temporary occupied land. 30

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Type of Degree of impact Affected people Rights Compensation policies and rates impact Simple 85 yuan/ m2 Cave-house 500 yuan/ m2 The compensation rates for land acquisition and 1 0.5% of the total budget about CNY 310,441 house demolition are the same as above. yuan as special fund targeting the vulnerable group; The rehabilitation fund for vulnerable groups will 2 Giving priority to vulnerable groups in be spent in the payment for training, social Vulnerable 19HHs with 70 resettlement measures insurance, medical assistance, and financial groups persons 3 Including eligible vulnerable groups in MLSS as assistance to the APs. The exact amount that a priority each AP will receive depends on the status of 4 Providing rural medical assistance to eligible vulnerable households. The local government vulnerable groups has committed itself to improve all the vulnerable groups’ livelihood before 2020. 1 50—60% training chances 2 Get relevant information, participate the resettlement plan preparation The compensation rates for land acquisition and Women 3 providing medical care to the affected women house demolition are the same as above. 4 promoting health condition of affected women and children The compensation for ground structures or attachments Ground is paid to proprietors. attachments Owners Compensation will be paid at replacement cost or such Details are provided in Section 5.3 of the RP. and public facilities restored by the demolisher to the original size facilities and standard. APs will receive the following support for the following: Agricultural improvement (300 households with 1,500 members get training on garden plant seedling produce and fruit tree care) Employment and related training (300 unskilled jobs Loss of APs with during construction, and during operation 140 jobs with Livelihoods livelihoods/income livelihoods impact about 20 persons for maintaining the road, 20 persons for planting trees, 20 cleaning service, 50 persons for logistics, 30 persons for spoil soil transportation)

Training on planting, agricultural machinery and marketing. 31

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Type of Degree of impact Affected people Rights Compensation policies and rates impact

APs with the remaining farmland less than 0.3 mu will be enrolled in the social security/pension system.

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5 RESETTLEMENT AND INCOME RESTORATION 5.1 Resettlement Objectives

57. The objective of this RP is to develop an action plan for restoration for those affected so that they benefit from the Project, and their living standard is improved or at least restored to the pre-project level.

5.2 Principles for Resettlement and Restoration

58. According to the applicable laws and regulations of the PRC and ADB’s SPS and policy requirements on involuntary resettlement, the following basic principles will apply to the resettlement work of the Project: Implement resettlement and the applicable compensation policies properly to improve or at least restore the production level and standard of living of the affected residents; The affected persons shall be fully consulted for livelihood restoration programs; The planning layout shall be determined on the principle of “facilitating production, housing and living conditions”; and Resettlement shall be combined with the local urban development, resources development, economic development and environmental protection programs. Feasible measures shall be designed to restore and improve the affected persons’ production level, incomes, housing and standard of living, and create necessary conditions for their further self-development

5.3 Restoration Programs of Collective Land Acquisition

59. The land acquisition impact is limited with none households’ experiencing a loss over 10%. The income restoration plan formulated is based on the willingness of the APs, impact degree and the feasibility of the potential options in each village. During the field consultation, cash compensation, agricultural resettlement with or without land readjustment, arranged jobs during the project construction and operation, assistance to non-farming employment and self- employment, social insurance approaches were discussed.

5.3.1 Cash compensation and distribution

60. The affected villages will be compensated in cash based on the standards discussed in Section 4, where compensation rates for cultivated land is CNY 28,500 yuan in Pucheng County, CNY 31,063 yuan in Fuping County, other waste land CNY 5,000 yuan per mu respectively (refer to Table 4-1). The land compensation distribution from village to APs has two scenarios: 1) If the land acquisition is a relatively large amount and the village has not enough reserved land to be allocated to APs, which is common in the project area, 100% of the compensation will be distributed to APs directly. 2) If the land acquisition amount is small and the village has enough reserved land (e.g. returned from a household which has moved to the urban area) to be allocated to APs to cover their land loss fully, then the APs will be allocated land and the compensation will be reserved for village infrastructure maintenance or improvement. Young crops compensation rate is CNY 1,000 yuan or CNY 1,300 yuan, of which 100% will be paid to the affected households. This compensation will be added to the overall compensation standard of the AH.

61. The compensation rate is very competitive compared the current land lease price. According to the current land-leasing price in the project area, plain dryland, which is the main cultivated land type, is CNY 500-700 depending on location for convenience of transport. The Project compensation for plain dryland per mu is more than CNY 28,500 that is worth of 40 years land leasing price at the existing higher rate of CNY 700. For the households who lose farmland, they mainly plant wheat, corn and some vegetables. In Weinan, they can harvest

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Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project twice a year. The annual output value of wheat is 660 yuan per mu, and 770 yuan per mu for maize. Within the project area, because of saline and alkaline, the output value is only 70% of that of the other areas. At the meantime, according to the investigation, the cost of planting grain crop is about 300 yuan per mu. So, for the households who plant grain crops, the output value is about 1000 yuan per mu, and the net income from the farmland is about 700 yuan per mu. Due to limited land acquisition per household and high compensation rate, most of APs are not worrying about loss caused by land acquisition.

62. Since the amount of acquired land is limited and some villages still has abundant un- allocated farmland (Fujia village, 150mu un-allocated farmland, Linjia 750 mu un-allocated farmland, Chitou 200 mu un-allocated farmland, Donglou 700 mu waste land can be reclaimed to farmland. This can ensure the possibility to redistribute farmland to APs. However, to ensure that the affected households use the compensation in a rational manner, PMO and other related agencies will provide guidance and required training. The following are restoration options and assistance measures for permanent land acquisition

5.3.2 Agricultural improvement

63. Some AHs chose agriculture restoration, which will use the cash compensation to improve the remaining land by increase of fertilizer use or change grain crops plantation to cash crops plantation such as tomato, pear, grape, fruit trees, and garden plant seedlings which require intensive labor, greenhouse facilities and capital investment. It is estimated that a plantation of tomato and fruit will generate income of about CNY 2,000-3,000 per mu compared to that of CNY 1,000 of grain plantation. It is an increase of about 100% to 200% a year. It will be easy for the chosen household to offset their economic loss caused by land acquisition.

64. For the garden seedlings and fruit tree plantation, training will be provided. For other crop plantation types, training is not desired by APs because most household have such skills already. It is estimated that about 300 households with 1,500 members need training on garden plant seedling produce and fruit tree care.

5.3.3 Employee Engagement

65. During the construction of the project, in order to maintain and raise villagers’ living level, the affected villages and the implementation agency reach an agreement. PMO committed to give priority to employing APs for the project generated job opportunities. During project construction, it is estimated around 300 unskilled jobs are only available, and during operation 140 jobs with about 20 persons for maintaining the road, 20 persons for planting trees, 20 cleaning service, 50 persons for logistics, 30 persons for spoil soil transportation. Their preferential treatment shall be implemented according to the provisions of Labor Law. All interested in the jobs will receive training. It is estimated a total of 150 APs will be trained. In order to take affected women into consideration, if the women are willing, they are encouraged to take part in the construction and implementation of the project. According to the estimate, the above measures will bring at least 600,000 yuan of wages to the affected persons in total. Table 5-1 summarizes the direct project created job opportunities. Table 5-1 Direct Created Jobs by the Project Income Estimated annual position amount Employment time employee Working time Yuan/day incomeyuan After the beginning earthwork 30 Local 5 days/week 80 30000 of the project villagers Food and drink 50 Has begun with priority 5 days/week 50 12000 After the beginning Road caring 20 given to 3 days/week 50 10000 of the project land Gardening 20 Has begun acquisition 3 days/week 50 12000 Sanitation work 20 Has begun APs 5 days/week 50 12000 total 140 600,000 34

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

5.3.4 Training

66. Systematic skill training will be provided to the affected families annually and at least 50% women will be include. Based on the need of local industry structure, local governments will provide training on planting, agricultural machinery and marketing in order to make each family gain relevant employment skills. When the project is finished in 2017, the affected persons should receive skill training at least three times. See Table 5-2. Table 5-2 Summary of Skill Training Plan

Year Target Scope Agency responsible Budget Gardening plant seedling plantation, fruit tree or other new cash crop plantation, handicraft PMO, women’s About CNY 620,883 1200 female and produce, farm machinery, federation, labor and yuan included in 2015-2017 500 male motorcycle or other vehicle social security bureau, project RP budget in repair, stonecutter, painter, agriculture and addition to local concrete worker, waterproofing forestry bureaus, government fiscal worker, masonry worker, house township government, funds. decoration worker, etc. GEF consultants

67. In addition, the GEF consultants will carry out the training or workshop such as field school, alternative livelihood, rural business development, ecotourism, and wetland management, which will have direct benefits to the APs and indirect benefits to the region from the tourism operation.

5.3.5 Social security system

68. WLMIDZC printed and distributed Regulations on Social Pension Subsidy Issue Method for the Villagers Losing Land (Proposed Regulation). The regulation was in effective since January 1, 2011. The affected villagers of the project can enjoy the social pension subsidy issued by WLMIDZ. The main contents of the regulation are as follows: (i) For the villagers who is land-expropriated farmers (LEF) in the WLMIDZ, the social pension is mainly paid as social pension subsidy. (ii) Eligibility: a) those who have land use rights contract when the rural collective land is acquired; b) the farmland per capita is less than 0.3 mu (including 0.3 mu); 3) the male is 60 years old or older and the female is 55 years old or older. (iii) Subsidy standard: CNY 120 yuan per month for those who comply with the requirement. (iv) Disbursement procedure: The Human Resources and Social Securities Bureau of WLMIDZ will apply for subsidy to the Financial Bureau on 26 each month, and the Financial Bureau transfer the fund in full amount before 10 the next month. The Human Resources and Social Securities Bureau should disburse the subsidy to beneficiaries before 15. 69. Through the social security system, the APs who is elderly and hard to earn money from non-agricultural activities can improve their life and get sustainable protection.

5.4 Restoration Program for Temporarily Occupied Land

70. In order to reduce inundated farmland area, measures of raising land elevation and restoring the land planting ability later will be taken. Land planting restoration measures, including backfilling, raising, irrigation and drainage facilities recovery, are prepared based on different usages of the temporary land occupation, and to restore the farmland gradually to original production capacity.

71. Planning scheme for land planting recovery measures is as follows:

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Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

(1) Topsoil stripping: determine the thickness of the topsoil stripping according to the necessity of the characteristics of soil and surface soil fertility to the local crops before construction. Topsoil after stripping still has a good fertility, which needs special care. (2) Land parcel elevation: Raise land elevation after the topsoil stripping. The soil used for elevation is from Luyanghu area excavation soil. According to the early stage of the EIA report, reservoir water quality is for class III, and due to long-term immersion in water, the elevation used expanding excavation soil, there is no soil pollution problem. Block lifting height is generally at about 2 m, and the specific lifting height is determined according to the actual situation of field plots. (3) Topsoil recovery: Cover the stripping topsoil and make level after the completion of the block lifting. Combine with the deep tillage in the process of leveling, make irrigation and drainage facilities construction in order to achieve the goal of soil improvement. Considering land leveling and slope protection construction work amount, the investment is 400 Yuan/mu. (4) Planting recovery: within 3 years of land recovery after block lifting, deep tillage should be made, and meanwhile, increase organic fertilizer input every year so that the soil fertility gradually reaches or exceeds the original production levels, with organic fertilizer investment cost at 200 Yuan/mu. 72. Based on the above analysis and calculation, the land reclamation cost for the temporary land occupation is 600 Yuan/mu.

5.5 Compensation for Temporary Building Demolition 73. During the implementation of the project, the villagers’ residential houses will not be affected, but there are 19326 m2 temporary building need to be demolished, and 175 villagers in 35 households will be affected by the demolition. The affected buildings are small and comprise mainly storehouse and work shed. The PMO negotiated with the affected persons and then decided to compensate based on replacement cost and without depreciation. The affected households can use the compensation freely to either rebuild structures or invest the funds elsewhere. After the negotiation with each affected household, the construction of the project will not affect the affected households seriously. The ground attachment within the acquired area is salt pan, building for saltpeter (brick and wood building), facilities for saltpeter (pump, transformer, and wire), scattered trees, young crops, and so on.

5.6 Resettlement Program for Infrastructure and Ground Attachments

74. For production and living facilities affected by the Project (electric wires, cables and telegraph poles mainly), the design agency conducted an extensive survey on possible impacts on local residents’ production and livelihoods at the design stage by means of FGD and questionnaire survey. Most of the opinions collected during the survey have been incorporated into the project design, and the design agency has designed engineering measures for these facilities accordingly.

75. Special facilities affected by the Project (telegraph poles, electric wires, streetlamps, transformers, junction boxes) will be relocated by their proprietors with compensation according to their agreements with the government. Restoration measures for demolished facilities must be planned in advance, and suited to local conditions so as to be safe, efficient, timely and accurate, with minimum adverse impact on nearby residents. Affected special facilities will be demolished according to the construction drawings without affecting project construction and with minimum amount of relocation. Affected pipelines will be rebuilt before demolition (or relocated) without affecting daily livings of residents along such pipelines (including those not to be relocated).

5.7 Assistance Measures for Vulnerable Groups

76. A support fund for vulnerable groups of CNY 310,441 will be established under the project to support vulnerable groups affected by the project. The main affected vulnerable groups are

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Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project the poor, 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.

(i) Giving priority to vulnerable groups in resettlement measures 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 households with a labor force will be given priority in skill training and priorities given in provision of arranged jobs by the project and local government. Eliminating zero employment of poor households (with a labor force) is the target of government poverty alleviation; it will also be the target of this project. Include all eligible AH into LEF endowment insurance. The new rural endowment insurance will be an optimal option for the AH on a voluntary basis. Provide preference loan to the significantly affected households if necessary in developing non-farming business, such as purchasing vehicles for transport business, operating repair shops, developing other income generating business.

(ii) Including eligible vulnerable groups in MLSS as a priority

77. According to the MLSS policy of Weinan Municipality 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 2,500 yuan a year and the per capita income of each urban AH is not less than CNY 395 yuan/month.

(iii) Providing rural medical assistance to eligible vulnerable groups 78. Rural medical assistance will be provided to eligible vulnerable groups to solve their difficulty in receiving medical care. Weinan Municipality Government will provide medical assistance for the rural residents in line with the policies.

5.8 Protection of Women’s Rights and Interests

79. China has put the Protection Law of Women and Children of PRC in practice, which means that Chinese government takes women’s rights and interests seriously. The law regulates that men and women have the same rights, women should not be looked down upon, and women’s rights and interests should not be deprived.

80. The measures taken to promote women’s development, the affected women have the right: i) Cash compensation or improvement of the quality of remaining land, and crop restructuring; ii) will receive compensation fees for land acquisition; iii)at least 50% of trainees of skills training will be women; iv) During construction, at least 30% of unskilled job opportunities will be offered to women in priorities; v) Employment arrangement for 200 female Aps; iv) Providing assistance together with the civil affairs department.

81. The protection of their rights and interests in the Project include: (1) Employment and business startup support At the RP preparation stage, women in the project area took an active part in the impact survey, and were consulted about ideas on income restoration programs. Women support the Project, and think the Project will improve drainage system and have moderate impact on the livelihoods of some APs. In addition, they expect cash compensation, job opportunities from the Project, and training on fruit cultivation, agritourism, stockbreeding and so on. Priority will be given to female labor in terms of skills training so as to ensure that their economic status and income. 1,000 person-times of APs will be trained, in which not less than 500 person-times (50%) will be provided to female labor. During project implementation, at least 30% of women will obtain

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Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project unskilled jobs. In addition, women will receive equal pay for equal work like men do. However, employment of child labor is prohibited. To promote the business startup and employment of women, the Pucheng and Fuping County Women’s Association will organize business startup skills training and offer a series of subsequent services. With the reduction of land after LA, women will have more time and effort for business startup and have priority in applying for business startup funds. (2) Women’s equal rights in participating in the development of and making decisions on resettlement programs Women will receive relevant information during resettlement, and be able to participate in resettlement consultation. A special FGD for women will be held to introduce resettlement policies and improve their awareness. Women will have equal rights in attending, and speak and make decisions at village and group congresses to discuss resettlement programs, and not less than 30% of attendees will be women.

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Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

6 PUBLIC PARTICIPATION AND GRIEVANCE REDRESS

82. According to relevant policies and regulations of the PRC, provincial and municipal on LAR, it is very necessary to conduct public consultation and encourage active participation of APs in project preparation and implementation stages in order to lay a solid foundation for the resettlement work, protect the lawful rights and interests of the APs, reduce grievances and disputes, and realize the resettlement objectives properly. Consultation has been fully highlighted during preparing RP, and organizing implementation.

6.1 Public Participation

6.1.1 Completed Public Participation Activities at Project Preparation Stage

83. For all the information: population of all the important issues involved in the discussion phase of the resettlement plan, the PMO organized design agencies, RP preparation agency, local communities and APs to conduct public consultations and meeting from December, 2011 to March 2016. In February 2012, with the help of consultants of the PPTA, RP preparation agency conducted socio-economic survey in the project area, and made the consultation with affected people on understanding and opinions of construction of the project as well as the development impacts of project to people. The design optimization to minimize impact of LAR was discussed too. The consultation includes: (1) Forums. Understand the possible impacts of the project to the local inhabitants, consult the local cadres for specific suggestions and recommendations on implementation, and consult on the land ownership problem involved in the project scope. (2) Impact survey, a total of 5 times. The detailed information on population, houses, farmland, facilities, affected groups is obtained on the basis of FSR; understand the features of affected area on population, social and cultural and other aspects, the possible positive and negative impacts to the local inhabitants and their suggestions on the project. (3) Village committees were interviewed to understand the population and distribution of the village, social and economic development; (4) Conduct a socio-economic survey on the affected people with a questionnaire to gather household information and identify the basic situation of the people affected families, perceptions and understanding of the project, the demand for land acquisition compensation and future development of training.

84. Through public participation and meetings, as well as social economic survey, it is found that the affected households’ concerns focused on the following aspects: (1) For compensation issues, affected villagers who are operating saltpans as a main livelihood pay more attention to the impacts of land occupation. The main reason is that the difference in compensation rate between arable land and saltpan is great, how to discriminate the land category. If the land adjacent to the main drainage channels identified as the scope of channel protection zone, and the land is classified as the state- owned land, how to compensate. Overall, the affected farmers pay attention to the land acquisition compensation standard firstly, and then they hope that the land compensation can be in place in time. (2) For income restoration, the affected households hope that the local government will carry out a number of training on aspects as fruits planting, factory working and small business. Besides, the APs wished to get priority to the job opportunities during the project construction, etc. (3) 92.3% of the surveyed households have learnt the grievance and redress mechanism (GRM). According to the interview with villagers, most villagers like to solve general problems by themselves (with village committees). Most of concerns are as follows: getting government support for some special industries, for example, low-interest loans, and approval of preferential policies on catering services and relevant procedures, etc. 39

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Table 6-1 Summary of Public Opinions Question (答案是什么?) Answer 1 Answer 2 Answer 3 Answer 4 Answer 5 Answer 1 Result Answer 2 Result Answer 3 Answer Result (%) Answer Result Answer (%) (%) 1 2 (%) 3 1 Are you aware that the Yes 83.53 Not clear 11.65 No 4.82 — — — — Project will be built? 2 Do you approve of the Yes 88.28 No 3.19 Don’t care 8.53 — — — — construction of the Project? 3 To what extent will the No 95.14 Slight 4.86 Serious - Very serious - — — unsound infrastructure affect your life and work? 4 Possible benefits of the Improving 97.17 Improving 85.63 Increasing job 75.43 Promoting 71.77 — — Project for you living working opportunities physical and environment environment mental health 5 Adverse impacts of the No adverse 72.19 Affecting 17.36 House demolition 3.45 Land 2.74 Other 4.46 Project on you impact traffic may cause acquisition economic losses. may reduce income. 6 Do you know the Yes 96.14 Somewhat 3.86 No - — — — — compensation and resettlement policies for land acquisition and building demolition? 7 Do you know the means Yes 92.37 No 7.63 — — — — — — of appeal when your lawful rights and interests are infringed on during land acquisition and building demolition? 8 Do you think the Urban- Yes 92.46 No — Not clear 4.15 — — — — villages reconstruction is acceptable?

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Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

(4) The project construction period shall be promptly released, and inform residents living in the vicinity of the construction of roads for the brought inconvenience.

85. Based on the above discussion, the PMO responds to the requirement as the following measures: (1) The land category will be checked by the Land Use Status in Pucheng County LRB. Whether the arable land in the protect zone of main channels, all the affected villages will receive the compensation at a rate of CNY 28500 Yuan/mu. The PMO will help the APs to rent the land in somewhere for operating saltpans. (2) In terms of the income restoration plan, the PMO will collaborated with the labor and social security bureau to design and implement the plan according to the public participation with APs. The PMO will require the contractors to make it a priority to engage the APs during the Project construction. 6.1.2 Participation Plan at the Project Implementation Stage

86. With the development of the project preparation and implementation, the PMO, the township / street, village / community will undertake further public participation and consultation, including: discussion of land acquisition compensation standards; offered contents of training for the affected people; announce the problems encountered during project construction and the ways to solve; listen to the opinions and expectations of affected people during project implementation process; announce compensation standards, complaint channels; understand the implementation of the resettlement plan, affected people’s livelihoods restoration, etc. Table 6-2 Public Participation Plan Purpose Method Time Agency Participants Topic Distribute final Disclose 2016 Announce compensation updated RP in updated RP and standards, complaints relevant offices August 2016 PMO, WLMIDZ All APs information and appeal channels, and booklets to booklets etc. all AHs Disclose 2016 ADB August 2016 ADB updated RP website Announce land Affected village acquisition PMO, LRB, the Announce the scope of bulletin board / April 2014- notice and affected All APs land acquisition area, village 2016 compensation villages’ cadres compensation rates meetings policies Finding out anything omitted to determine the final impacts PMO, DI, LRB, DMS result Preparing a list of lost Field survey 2014-2016 the affected All APs verification land & assets villages’ cadres Preparing a basic compensation agreement Discussing the final Determination PMO, LRB, income restoration of income village meeting 2014-2016 town and village All APs program and the restoration (many times) officials utilization of plan compensation April 2014- LAR PMO, LRB, the All affected Sign agreement and Field work December Implementation affected villages households disburse compensation 2018 PMO, LRB, the Resettlement progress affected and impacts Resettlement April 2014- Household villages, the sampling Payment of Monitoring & December interview external APs compensation Evaluation 2018 monitoring Information disclosure agency Livelihood restoration, 41

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

etc. 6.2 Grievances and Appeals 6.2.1 Grievance Redress Mechanism

87. Since public participation is encouraged during the preparation and implementation of this RP, no substantial dispute will arise. However, unforeseeable circumstances may arise during this process. In order to address issues effectively, and ensure the successful implementation of project construction and LA, a transparent and effective grievance redress mechanism has been established. The basic grievance redress mechanism is as follows: Stage 1: If any AP is dissatisfied with this RP, he/she may file an oral or written appeal to the village committee orally or in writing. In case of an oral appeal, the village committee shall handle such appeal and keep written records. Such appeal should be solved within 2 weeks. Stage 2: If the AP is dissatisfied with the disposition of Stage 1, he/she may file an appeal to the town government after receiving such disposition, which shall make a disposition within 2 weeks. Stage 3: If the AP is dissatisfied with the disposition of Stage 2, he/she may file an appeal to the WLMIDZ Committee after receiving such disposition, which shall make a disposition within 2 weeks. Stage 4: If the AP is dissatisfied with the disposition of Stage 3, he/she may file an appeal to the PMO after receiving such disposition, which shall make a disposition within 2 weeks. The AP can also appeal to the PMO at any time.

88. At any time, the AP may also bring a suit in a civil court in accordance with the Administrative Procedure Law of the PRC. Affected persons can decide to go through the legal system directly or may decide not to use project level grievance channels. An aggrieved person may also express grievance to the external monitor, who would then report it to PMO and IA. Alternatively, the aggrieved person(s) may submit a complaint to the ADB project team to try to solve the problem. If good faith efforts are still unsuccessful, and if there are grievances that stemmed from a violation of ADB’s safeguard policy, the affected persons may appeal directly to ADB in accordance with ADB’s Accountability Mechanism (2012)2 to report behaviors which are not compliance with ADB’s policies and result in harm to APs.

89. All grievances, oral or written, will be reported to ADB in internal and external resettlement monitoring reports.

90. All agencies will accept grievances and appeals from the affected persons for free, and costs so reasonably incurred will be disbursed from contingency costs. The above appeal channel will be notified to APs at a meeting or otherwise, so that APs are fully aware of their right of appeal. Mass media will be utilized for publicity, and opinions and advice about resettlement will be compiled into messages for study and disposition by the resettlement agencies. PMO will keep records of the grievances and actions taken and on request these records will be made available for review by the ADB missions.

2 For more information, see http://www.adb.org/site/accountability-mechanism/main. 42

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Figure 6-1 Appeal and Complaint Procedures 6.2.2 Recording, Tracking and Feedback of Grievances and Appeals

91. During the implementation of the RP, the resettlement agencies should register and manage appeal and handling information, and submit such information to the PMO in writing on a monthly basis. The PMO will inspect the registration of appeal and handling information regularly, and will prepare a registration form for this purpose, as shown below. Table 6-3 Registration Form of Grievance and Appeals Accepting Agency: Date: Location: Appellant Appeal Expected Solution Proposed Solution Actual handling

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

6.2.3 Contact Information for Grievances and Appeals

92. The resettlement agencies will appoint persons chiefly responsible to accept and handle grievances and appeals.

Table 6-4 Agencies Accepting Grievances Agency Responsible person contract Weinan PMO Chen Mingtao 0913-3338068 WLMIDZ Committee Lian Jian 0913-3338283 Resettlement Implementing Agency Li Tianjiang 13992357888 Dangmu Town Wang Jun 13992313253 External M&E Agency Ma Jiqian 18292026843

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Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

7 ORGANIZATION STRUCTURE AND RESPONSIBILITY 7.1 Resettlement Implementing Agencies

93. The Weinan Municipality Government (WMG), which is the executive agency (EA), has established appropriate agencies and strengthened the capacity to ensure successful project preparation and resettlement. The agencies responsible for the planning, management, implementation and monitoring of the project’s resettlement activities are: • Project Leading Group (PLG) • Weinan Luyanghu Modern Industrial Development Zone Management Committee (Implementation Agency, WLMIDZMC) • Weinan Project Management Office (PMO) • Project Implementation Office (PIO) • Luyanghu Land Resources Bureau (LRB) • Luyanghu Labor and Social Security Bureau • Township Government • Affected Village Committees • Design Institute • External Monitoring and Evaluation Agency

Project Leading Group (PLG)

Design Weinan Luyanghu Modern Institute Industry Development Zone Committee (IA) Project Management Office Project Implementation (PMO) Office (PIO)

Internal M&E Land Resources Labor and Social External M&E Agency: Bureau Security Bureau Shaanxi Academy of Social Sciences (SASS) Township government

Land Acquisition Affect Persons Affected Villages

Figure 7-1 Organization Chart of the Relevant Resettlement Implementation Agencies 7.2 Assignment of Responsibilities

(1) Project Leading Group Responsible mainly for the decision-making and leadership of the Project, coordinating the departments of Weinan Municipality Government related to the Project.

(2) WLMIDZC Responsible for organization, coordination and policy formulation of the LAR of the 44

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

project; review and approval of resettlement plan; supervising resettlement internal monitoring; leading the project construction and solving major problems that occur during the resettlement implementation.

(3) Weinan PMO Entrusting the design institute to define the project impact scope; Organizing the socioeconomic survey; Organizing and coordinating the preparation of the RP; Implementing the policies in the RP; Coordinating the implementation of the RP according to the construction schedule; Directing, coordinating and supervising resettlement activities and their progress; Organizing and implementing internal monitoring, selecting an external M&E agency, and coordinating with external M&E agencies; Reviewing monitoring reports; Coordinating and handling conflicts and issues arising from implementation; Coordinating and handling disputes and appeals; Resettlement document management; Reporting resettlement progress, fund use and implementation quality to ADB regularly; Assisting ADB officers and specialists working on the project sites during the project preparation and implementation; Communicating with external M&E agency; Coordinating income restoration measures of affected people; Organizing public participation and consultation activities; Inspecting progress of LAR; Resettlement information management; Submit external monitoring report to ADB; and Training resettlement staff.

(4) Project Implementation Office Signing contracts with the contractors and suppliers; Implementing the construction schedule; Disbursing funds and supervising the use thereof; Signing temporary land occupation agreement with affected villages;

(5) Luyanghu Land Resources Bureau Conducting physical survey and recording, and investigating baseline of land acquisition and house demolition; Formulating compensation standards for land acquisition and house demolition, and apply it for approval of relevant government departments; Handling project land use application procedures and applying land use planning license and land use construction license.

(6) Luyanghu Labor and Social Security Bureau Coordinating public participation and consultation activities; Implementing income restoration measures of affected people.

(7) Township Government Participating in the survey of the project, and assisting in the preparation of the RP; Participating in the disbursement and management of land compensation to APs; Organizing public participation, and propagandizing the resettlement policies; Organizing skills training for APs; Implementing, inspecting and recording all resettlement activities within its jurisdiction;3

3 The previous RP stated that the land acquisition scope limited in Dangmu Town, and the resettlement implementation agency is Dangmu Town Leading Group Office for Land Acquisition and Houses Demolition in 45

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Supervising LAR and reporting the information to the LRB and PMO; Coordinating and handling conflicts and issues arising from its work Handling disputes and appeals during the resettlement plan implementation.

(8) Village Committees Participating in the socioeconomic survey and DMS; Organizing public consultation, and propagandizing the policies on LAR; Paying and managing relevant funds of affected households; Reporting the APs’ comments and suggestions to the competent authorities; Reporting the progress of resettlement implementation to the PMO; Providing assistance to vulnerable households.

(9) Design Institute Reducing impacts of LA and resettlement of the project through design optimization; Identifying the scope of LA and resettlement.

(10) External Monitoring and Evaluation Agency During the implementation of the resettlement plan, to track, monitoring and evaluation the implementation and LAR activities regularly twice a year Monitoring progress, quality, funding for resettlement, and give advices; Verifying the data and conclusions of the internal monitoring reports; Submitting monitoring and evaluation report every six months to PMO.

7.3 Staffing and Equipment

7.3.1 Staffing

94. To ensure the successful implementation of the resettlement work, the IA will ensure with full-time staff trained and experienced in implementation of the RP who will be assisted by required staff and will be provide adequate resources. Each resettlement agency is composed mainly of 3 to 6 administrative staff members and specialized technicians, all of whom have certain professional and management skills, and considerable experience in LA, HD and resettlement. A smooth channel of communication has been established. See Table 7-1. Table 7-1 Staffing of Resettlement Agencies Agency Person responsible Workforce Composition WLMIDZC Shi Xiaopeng 3 Civil servants PMO Liang Bo 3 Civil servants PIO Chen Xuan 2 Civil servants Weinan Financial Bureau Jia Hongjun 2 Civil servants Luyanghu LRB Zhang Tao 3 Civil servants Resettlement Wang Jun 6 Civil servants implementing agency Township governments 6 Civil servants Village committees 71 Village officials External M&E Agency Fang Haiyun 6 Experts

95. The resettlement agencies of the Project have many years of LA and HD experience from domestic construction projects, and are familiar with the applicable domestic regulations, but are handling the resettlement work of an ADB-financed project for the first time. Although they have a certain understanding of ADB’s resettlement policy and requirements, measures will still be taken to improve institutional capacity.

Luyanghu Development and Construction. The updating RP finds that the land acquisition involved in 6 towns, which have appointed similar agency to participating the LAR. 46

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

7.3.2 Equipment

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

7.4 Capacity Enhancing Measures of Resettlement Agencies

97. In order to implement resettlement successfully, the APs and resettlement staff must be trained under a program developed by the PMO.

7.4.1 Resettlement management staff training plan

98. The Weinan PMO will take the following measures to enhance institutional ability to better implement resettlement plan, guarantee the benefits of affected persons and meet the overall planning of project schedule, and build personnel training and human resources development system of Pucheng and Fuping County resettlement agencies, as well as village officials. Training intends to take the form of specialist seminar; each agencies set up technical training course, or study tour on other resettlement projects, and site training by technical and managerial staffs.

99. Training content includes:  Principles and policies of ADB’s involuntary resettlement;  Latest changes of national land acquisition and resettlement policy, international resettlement experience; Resettlement implementation plan design; Resettlement implementation progress management and working procedure; Issues that need attention during resettlement implementation; Resettlement financial management; Resettlement project quality control; Resettlement information system; Resettlement monitoring and evaluation; Resettlement project management.

7.4.2 Measures for improving resettlement agencies

Leadership responsibility system: the county leader shall be in leading position and the leaders of government relevant departments to form a strong leadership. Well-defined responsibilities: clearly define the duties and responsibilities of resettlement agencies of all levels, and strengthen supervision and administration according to the requirements of ADB and relevant laws and regulations of the country. Equipped with high-quality staff: gradually enhance the capacity of resettlement agencies of all levels, especially professional technical force, the staff shall have certain special skill and managerial quality, and is required to have strong overall point of view, policy level, professional skill, especially mass work experience, and strengthen the technical equipment such as computer, monitoring device, transport, etc. Select staff strictly and strengthen business technical training, and carry out training on administrative staff and technical staff to improve their business ability and management ability. Guarantee appropriate number of woman cadres to give full play of woman during resettlement implementation process. Establish database and strengthen information feedback to make sure the information channel is smooth, significant problems shall be solved by resettlement leading group decision & solution. Strengthen reporting system, and intensify internal monitoring, solve problems in time. 47

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Establish external monitoring and evaluation mechanism, and early warning system. Bring the public and press supervision into play: open all resettlement information to the public and the society, and accept the supervision of the public and press at any time.

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8 RESETTLEMENT BUDGET 8.1 Estimated Budget

100. In the general budget, direct resettlement costs include compensation for PLA, TLO, the demolition of temporary building and ground attachments, as well as planning and monitoring costs, administrative costs, training costs and contingencies, etc. 101. The general resettlement budget of the Project is CNY105.281 million yuan, including compensation for rural collective land acquisition of 56.777 million yuan or 53.93% of the budget, compensation fees for temporary land occupation of 5.310 million yuan or 5.04% of the budget, land taxes of 33.693 million yuan or 32.0% of the budget, indirect costs of 9.18 million yuan or 8.73% of the budget. The general resettlement budget will be included in the overall costs of the Project. See Table 8-1 for details. Table 8-1 Resettlement Budget

Compensation Rate Cost Rate NO. Item Unit Amount Unit Number CNY'000 % A Permanently occupied land mu 5501.72 56,777.80 53.93% permanently acquired collective A1 mu 5501.72 28,163.00 land A1.1 Farmland mu 2432.65 yuan/mu 28500/31063 69,758.55 A1.2 Waste landsalt pan mu 3069.07 yuan/mu 5,000 15,345.35 A2 Ground attachments 28,614.80 A2.1 Young crop mu 2432.65 yuan/mu 1000/1300 5,551.82 A2.2 Salt-pans construction subsidy mu 3069.07 yuan/mu 1000 3,069.07 A2.3 Tree tree 1814 330.6 A2.3.1 Wood tree tree 1218 yuan/tree 100 121.8 A2.3.2 Fruit tree tree 696 yuan/tree 300 208.8 A2.3 Temporary buildings m2 19326.62 yuan/m2 500 9,663.31 A2.4 Special facilities 10,000.00 B Temporarily occupied land mu 2042.5 5,310.50 5.04% B1 farmland mu 2042.5 yuan/mu 2,000 4,085.00 2.0425 B4 Restoration of farmland mu 2042.5 yuan/mu 600 1,225.50 A+B 62,088.30 58.97% Special subsidy for vulnerable C (A+B) 0.50% 310.4415 0.29% group D Other costs 9,189.07 8.73% D1 RP preparation (A+B) 0.30% 186.2649 D2 Administration (A+B) 3.00% 1862.649 D3 Skill training (A+B) 1.00% 620.883 D4 External monitoring (A+B) 0.50% 310.4415 D5 Contingency (A+B) 10.00% 6208.83 E LA Tax/fees 33,693.32 32.00% E1 Farmland reclamation fee mu 2432.65 yuan/mu 6,670 16,225.78 E2 Farmland occupation tax* mu 2432.65 yuan/mu 15,008 0.00 Newly incremental construction E3 mu 2432.65 yuan/mu 6,670 16,225.78 land fee E4 LA administration fee (A+B) yuan/mu 2.00% 1,241.77 Total 105,281.13 100.0% Note: The farmland occupation tax (36.4 million yuan) is to be waived since the project is categorized as public interest project 49

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

8.2 Annual Investment Plan 102. All resettlement funds of the Project are from Weinan Municipality local counterpart funds. Before or during project construction, the civil works and resettlement plan will be implemented in stages in order not to affect the production and livelihoods of the AHs. See Table 8-2. Table 8-2 Annual Resettlement Investment Plan

Year 2015 2016 2017 2018 Total Investment (1000 yuan) 25000 30000 40000 10281 105281 Percent (%) 23.7% 28.5% 38.0% 9.8% 100% 8.3 Disbursement and Management of Resettlement Funds 8.3.1 Management of Resettlement Funds 103. During the project implementation, Weinan Municipality Government will pay the compensation funds to relevant entities or individuals according to the compensation policies and standards confirmed in Updated Resettlement Plan. The disbursement flow is as follows:

Weinan Municipality Government

WLMIDZC

Project Implementation Office (PIO)

Township government Construction cost Young crops Resettlement allowance Attachments compensation Attachments compensation Land compensation Resettlement allowance

Saltpan Affected Compensation Farmland Acquisition APs Villages allocation Acquisition APs

Figure 8-1 Flowchart of Resettlement Fund Disbursement 8.3.2 Disbursement of Resettlement Funds

104. Resettlement funds must be disbursed in strict conformity with the applicable state laws and regulations, and the policies and compensation rates specified in the Updated RP. Land compensation fees and resettlement allowances will be paid directly to the affected villages, and then allocated the compensation based on the villager representatives meeting; compensation fees for young corps will be paid directly to the APs; compensation fees for infrastructure and ground attachments will be paid to the entities and individuals concerned.

105. In order that resettlement funds are available timely and fully to ensure the restoration of the production level and living standard of the AHs, the following measures will be taken: All costs related to resettlement will be included in the general budget of the Project. Land compensation fees and resettlement allowances will be fully paid before LA to ensure that all APs are resettled properly. Compensation fees for temporary building will be paid to the AHs after the signature of compensation agreements and prior to demolition. Financial and supervisory agencies will be established at different levels to ensure that all funds are fully and timely available. The budget is an estimate of resettlement costs, which may vary due to any variation in the DMS results, the modification of any compensation rate and inflation, but the IA will ensure the payment of compensation fees. The budget will be revised as necessary in consideration of contingencies. 50

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

9 RESETTLEMENT IMPLEMENTATION PLAN 9.1 Principles for Resettlement Implementation

106. According to the project implementation schedule, the Project will be constructed from 2013 to 2018. In order that the resettlement schedule links up the construction schedule of the Project, land acquisition begin in December 2012 and end in December 2018. The basic principles for resettlement implementation are as follows: LAR should be completed at least 1 months prior to the commencement of construction, and the starting time will be determined as necessary. During resettlement, the APs shall have opportunities to participate in the Subproject. Before the commencement of construction, the range of LAR will be disclosed, the RIB distributed and public participation activities conducted properly. All compensation fees will be paid to the affected proprietors directly and fully within 3 months of approval of the resettlement and compensation program. No organization or individual should use compensation fees on their behalf, nor should compensation fees be discounted for any reason. 9.2 Resettlement Implementation Schedule

107. The general resettlement schedule of the Subproject has been drafted based on the progress of project construction, LA and HD, and resettlement preparation and implementation. The exact implementation schedule may be adjusted due to deviations in overall project progress. See Table 9-1. Table 9-1 Resettlement Milestones Agencies No Task Target Time Status responsible 1 Information Disclosure Disclosure (through RIB) of final 1.1 APs PMO, LRB Aug 2016 updated RP IA, PMO and 1.2 Disclosure of the original RP ADB’s website Oct. 2012 Completed ADB IA, PMO and 1.3 Disclosure of the first updated RP ADB’s website Aug. 2015 Completed ADB 2 RP and Budget Oct. 2012 Approval of RP and budget 2.1 budget WNG and Aug (including compensation rates) 2016 Relevant documents and All affected Oct. 2012- 2.2 PMO comments villages Dec. 2018 3 DMS All affected land 3.1 Conduct DMS PMO, LRB, DI 2014-2016 and attachments 3.2 Final RP based on the DMS Final RP PMO, DI Aug 2016 4 Compensation Agreement Sign the LAR agreement with 4.1 APs PMO, PLG 2014-2016 Ongoing APs APs, affected 4.2 Pay the compensation PMO, LRB 2014-2016 Ongoing villages 5 Resettlement and Rehabilitation Town governments, 5.1 Trainings to the APs APs 2014-2018 labor &social security bureau Town Advice on income restoration, governments, 5.2 APs 2014-2018 commerce and work labor &social security bureau 5.3 Identifying vulnerable households Vulnerable group Civil affairs 2014-2016 51

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

Agencies No Task Target Time Status responsible and implementing assistance bureau, PMO measures PMO, contractor, APs engagement at the 5.4 APs labor &social 2014-2018 construction stage security bureau 6 Capacity Building Villages, town Establish resettlement office at 6.1 government, PMO Apr, 2015 Done different levels PMO, PLG Resettlement training to all staff 6.2 All staff PMO, PMC Jul, 2015 Done of resettlement offices 7 Monitoring and Evaluation Establishment of internal M&E 7.1 PMO 2014-2016 mechanism Sign the external monitoring 7.2 PMO 2014-2015 Done contract external M&E 7.3 Baseline survey 2015-2016 agency Twice 7.4 Internal social monitoring report Semi-annually IA, PMO every year Twice 7.5 External social monitoring report Semi-annually external every year PMO and 7.6 Resettlement completion report One external M&E Mar, 2019 agency 8 Public consultation IA, PMO Ongoing IA, PMO, village 9 Grievance redress Ongoing committees 10 Compensation Disbursement 10.1 Disbursement to IA Initial funds Annually 10.2 Disbursement to villages most funds IA Ongoing IA, village 10.3 Disbursement to households most funds Ongoing committees

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10 MONITORING AND EVALUATION 10.1 Internal Monitoring

108. In order to ensure the successful implementation of the RP and realize the objectives of resettlement properly, land acquisition, property demolition and resettlement activities of the project will be subject to periodic M&E according to ADB’s resettlement policy requirements, including internal and external monitoring.

10.1.1 Scope of Internal Monitoring

109. Internal monitoring will cover the following: (1) Organizational structure: setup, division of labor, staffing and capacity building of resettlement implementation and related agencies; (2) Resettlement policies and compensation rates: development and implementation of resettlement policies; actual implementation of compensation rates for different types of impacts (PLA, TLO, HD, relocation of entities and professional facilities), with particular focus on compliance with the rates in the RP and reasons for deviations; (3) LA, HD and resettlement progress: overall and annual schedules, resettlement agencies and staffing, LA and HD progress, construction progress of resettlement housing and special facilities, progress of relocation and other resettlement activities (see Table 10-1 for the format). (4) Resettlement budget and implementation thereof: level-by-level disbursement of resettlement funds, fund use and management, disbursement of compensation fees to proprietors, holders of land use rights and land users, village-level use and management of compensation fees, supervision and auditing of fund use; (5) Employment and resettlement of APs: main measures of resettlement, employment and resettlement of APs in entities, resettlement of vulnerable groups, effectiveness of resettlement; (6) Restoration of professional facilities (power and water supply, communication and traffic facilities, and pipelines, etc.); (7) Grievance redress, public participation and consultation, information disclosure, and external monitoring: appeal channel, procedure and agencies; key points of appeal and handling thereof, key activities and progress of public participation and consultation, RIB and information disclosure, external M&E agency, activities and effectiveness; (8) Handling of relevant issues in the Memorandum of the ADB Mission; and (9) Existing issues and solutions. Table 10-1 Sample Schedule of Resettlement Progress Agency: Reporting date: (MM/DD/YY) Resettlement activity Unit Planned Completed Cumulative Proportion Total Completed Fund allocation Permanent land acquisition Temporary land occupation Temporary building demolition Prepared by: Signature of person responsible: stamp:

10.1.2 Methodology of Internal Monitoring

110. For internal monitoring, a normative, smooth top-down resettlement information management system should be established among the PMO, PMC and resettlement agencies concerned to track and reflect the progress of resettlement, including the progress, quality and funding of resettlement, and collate and analyze such information. 53

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project

111. The following measures have been taken in the Project to implement internal monitoring: (1) Normative statistical reporting system The PMO, WLMIDZ will develop uniform report forms to reflect the progress of disbursement of resettlement funds, LA and HD. Such forms will be submitted monthly. Table 10-2 Sample Monitoring Form Updated Completed Completed Total Item RP Actual RP to date in total percentage Area (mu) PLA AHs APs Area (mu) TLO AHs APs Area (m2) HD AHs APs Compensation (Yuan)

(2) Regular or period reporting Information on issues arising from resettlement will be exchanged in various forms between the resettlement agencies and the external M&E agency. (3) Regular meeting During resettlement implementation, the PMO will hold resettlement coordination meetings regularly to discuss and handle issues arising from project and resettlement implementation, exchange experience and study solutions. (4) Inspection The PMO will conduct routine and non-routine inspection on the resettlement work of the IA and the resettlement agencies, handle resettlement issues on site, and verify the progress of resettlement and the implementation of resettlement policies. (5) Exchange of information with the external M&E agency The PMO will keep routine contact with the IA and the external M&E agency, and take findings and opinions of the external M&E agency as a reference for internal monitoring.

10.1.3 Interval and Reporting of Internal Monitoring 112. Internal monitoring is a continuous process, in which comprehensive monitoring activities will be conduct at least semiannually; more frequent monitoring is required at key times. Internal monitoring reports will be submitted by the resettlement agencies to the IA and PMO. The PMO will compile relevant data and information, and submit an internal monitoring report to ADB semiannually.

10.2 External Monitoring

113. According to ADB’s policy, the PMO engaged Shaanxi Kexin Consulting Company. as the external M&E agency in April 2014. The external M&E staff should: • have participated in similar tasks, have rich experience in socioeconomic survey, and understand ADB’s policy on involuntary resettlement, and the state and local regulations and policies on resettlement; • be able to conduct socioeconomic survey independently, have good communication skills, and be tough; and • include a certain percentage of females. The external M&E agency will conduct follow-up M&E of resettlement activities periodically, monitor resettlement progress, quality and funding, and give advices. It shall also conduct follow-up monitoring of the APs’ production level and living standard, and submit M&E reports to 54

Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project the PMO and ADB. 10.2.1 Scope and Methodology of External Monitoring

(1) Baseline investigation The external monitoring agency will conduct the required baseline investigation of village groups, from which, the baseline information of the production and livelihoods levels of the displaced people will be acquired, including the levels of livelihoods, production and income. The investigation of production and living levels will be conducted on semi-annual basis to follow up the changes of the displaced people in this connection. This is to adopt the methods of typical sample follow-up survey, casual interviewing and site visit, etc. to acquire necessary relevant information. Accordingly, the statistical analysis will be made on this basis, and thus the evaluation will be made.

(2) Periodic Monitoring & Evaluation During the implementation of the RP, the external M&E agency will conduct periodic follow-up resettlement monitoring semiannually of the following activities by means of field observation, panel survey and random interview: To check if the land acquisition, housing demolition, compensation, and relocation and economic rehabilitation is carried out according to RP. To ensure if the activities are completed that should be completed before the construction. To verify the general target of land acquisition, housing demolition and resident resettlement compensation, rehabilitation and implementation degree of RP. To assess if the compensation amount matches the property loss and whether the APs can resume or higher than their original income levels. To assess how satisfied the APs are with the land acquisition, housing demolition, compensation, residential relocation, economic rehabilitation and living conditions. Satisfaction degree of APs about land acquisition and resettlement and quality and quantity of redistribution land. Satisfaction degree of APs about location of resettlement and difference of environment with the original location, when applicable. Satisfaction degree of APs about compensation standard and method of dismantled houses, buildings, ground attachments. Satisfaction degree of APs about the compensation rates In the course of acquisition and resettlement, whether relevant institutions and local government consult fully with and assist APs and whether any forced/rushed dismantling and resettlement happened. Supervision on fund flow of land acquisition and resettlement. Assess whether local people have benefitted from the project Assess if the female APs are resettled properly and what is the effect of the project to local gender development Assess if the vulnerable groups are resettled properly, and if additional assistance have provided to them and if their livelihood are better off than before Assess if IA and EA organized effective participation/consultation with the affected persons; if the APs satisfy with these and what aspects they want to improve Other issues, as applicable. The external M&E agency will attend public consultation meetings held during resettlement implementation to evaluate the effectiveness of public participation.

(3) Grievance redress The external M&E agency will visit the affected villages and groups periodically, and inquire the PMO and resettlement agencies that accept grievances about how grievances have been handled. It will also meet complainants and propose corrective measures and advice for existing issues so as to make the resettlement process more effectively.

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10.2.2 External Monitoring Reporting

114. The independent consultant experts of external M&E agency shall monitor from the beginning of land acquisition, and complete the final evaluation by the end of the Project construction. (1) When the first batch of fund is ready, the Independent consultant experts will assess the principles and plan of LA&R, and put forward suggestions, then discuss with the affected persons. (2) The external M&E agency will monitor resettlement implementation to assess whether the principles and proposed plans for land acquisition, housing demolition, compensation, residential resettlement and economic rehabilitation are adequate, and will propose recommended actions to rectify or improve implementation. This will be based on survey and discussions with the affected individuals. (3) After the baseline survey, the independent external M&E agency will conduct investigations and survey every six months during the resettlement implementation process, and submit M&E report to PMO and ADB semi-annually. Inspect and supervise the realization of the pending problems, recommended activities and follow-up activities. Carry out according to monitoring outline. (4) If the supervision agencies think it is necessary, the external M&E agency can inspect and survey more frequently. (5) The external M&E agency should record every supervision activity in detail and prepare a written report for submission to the EA and ADB. The contents in the report should include the experiences in the land acquisition, housing demolition compensation, (residential) resettlement, economic rehabilitation, living conditions, and the existing or remaining problems. The executive agency should find way to resolve the existing problems to improve their work after they receive the report. (6) After the physical resettlement activities are completed; the external M&E agency will monitor the project to trace the living and production situations of the APs. If they have restored, the external monitor should prepare a complete, detailed and objective completion report and submit it to WPMO and ADB without any remaining problems. If having special condition, a special report will be submitted to ADB according to ADB’s requirements.

115. The external M&E agency will submit a monitoring or evaluation report to ADB and PMO semiannually. See Table 10-3. Table 10-3 Reporting Schedule of External Monitoring & Evaluation No. Report Date 1 Baseline survey report June 2014 2 Monitoring & Evaluation Report (Issue 1) July 2015 3 Monitoring & Evaluation Report (Issue 2) January 2016 4 Monitoring & Evaluation Report (Issue 3) July 2016 5 Monitoring & Evaluation Report (Issue 4) January 2017 6 Monitoring & Evaluation Report (Issue 5) July 2017 7 Monitoring & Evaluation Report (Issue 6) January 2018 8 Resettlement Completion Report March 2018

10.3 Post-Resettlement Evaluation

116. After project implementation, the PMO (or through the external M&E agency) will apply the theory and methodology of post-resettlement evaluation to evaluate the Project’s resettlement activities on the basis of M&E to obtain successful experience and lessons in LA and HD as a reference for future work. A post-resettlement completion report will be submitted to ADB.

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APPENDIXES Notice on Land Acquisition and Implementation Scheme for Ecological Environment Project, Dredging and Rehabilitation of Main Desalination Drainage Channels in Weinan Luyanghu Modern Industries Development Zone (No.53 document issued on April 9, 2014 by the Office of Pucheng County Government)

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Public consultation and participation minutes on LAR in December 2015 I. Complain about the operation and treatment mechanism 1. Complain processing mechanism In order to effectively solve the problems related to LAR, and ensure the successful implementation of the project construction and land acquisition, Weinan PMO shall establish a transparent and effective complaint and grievance procedures. Relevant organizations will receive free about the appeal of the affected people and their complaints. Affected households and persons can appeal to any aspect of LAR affairs, including compensation standard and so on. The complaint channels and accepting institutions, including name of the head, location, and telephone numbers, will be released to affected persons through meeting, notice and resettlement information booklets, to make them fully understand their right to appeal on LAR affairs. 2. Performance evaluation Based on the field visits in affected villages, and the discussion with Weinan PMO, PIO, RIA and external monitor, no written appeal has been received until now. However, PMO also introduced that scattered and small problems, such as DMS and ownership of land and assets, can be resolved quickly in village and/or town level. II. Main findings of the public consultation and complaints In order to know well about the attitude and satisfaction level of affected persons, social consultants conducted focus discussion groups in relevant villages. Main findings are briefly summarized as bellow: 1. Opinions of Village Committees and villagers affected by land acquisition of the project 1Villagers agreed WLMIDZC to acquire land in their villages for development and construction, they believed that it can bring job and business opportunities for local residents, and promote the rapid growth of regional economy. 2The land compensation of the first three package (ADB-FM-CW-02-01 to 03) of Tianlu Lake Excavation has been paid to the village committees. Specifically, Fanjia Village Committee received CNY 6,370,100 for the compensation of 1,274.02 mu land, Chitou Village committee received CNY 2,965,850 for the compensation of 593 mu. 3Compensation fund has not yet been allocated to villagers from village account. This fund will be distributed to all of the villagers after the allocation program is approved by the meeting of villagers or representatives of villagers. 4Existing problems or difficulties Villagers of Fanjia Village thought that the land acquired should not be treated and compensated as wasteland since salt ponds can bring income to their households. They hope local government can provide land compensation with a similar rate of farmland. They said that the output of salt ponds is about 10 tons per mu annually, and the market price is about 50 to 80 yuan per ton, the cost is about 100 yuan per mu every year, so the net income of salt ponds is about 600 yuan per mu annually. They said the existing land compensation rate of salt ponds (5,000 yuan per mu) was not acceptable. Villager representatives from Chitou Village also expressed the similar attitude and opinion to the compensation standards. 5expectations of the village committee and villagers They hope local government can provide more assistances to villagers through increasing subsidies and policy support, such as finance support for rural roads construction, sanitation and environment protection, etc. Another suggestion is the finance support for the public cultural events, especially for rural women in villages, e.g. facilities and clothes for their square dance. 2. Attitudes and opinions of WLMIDZC and Weinan PMO The land compensation rate of salt ponds is not high, but it’s compliant with the compensation policy of local government and the updated RP approved by ADB. Salt ponds

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Resettlement Plan of Shaanxi Weinan Luyang Integrated Saline Land Management Project cannot be identified as farmland according to the Land Management Law of PRC. WLMIDZC made their efforts to explain the compensation policies to villagers, and promised to implement all the livelihood restoration measures agreed in updated RP.

Record 1: FGD records in Fanjia Village on land acquisition and compensation

Date: December 8, 2015; Tuesday Place: Dangmu township government SubjectLand acquisition compensation and resettlement in Fanjia Village Participants: Fan Wenge Secretary of Fanjia village Branch of CPC Liu Shuangjin Director of Supervision board of Fanjia village Zhou Zhaopeng villager representative Yan Peng villager representative Lian Jian Staff of Land Management bureau of WLMIDZC Chen Mingtao Staff of Weinan PMO Organizer and Recorder: Wang Hengbo Assistant of social specialist

1. Villagers agreed WLMIDZC to acquire land in their villages for development and construction, they believed that it can bring job and business opportunities for local residents, and promote the rapid growth of regional economy. 2. Villagers expressed their satisfaction to compensation rate of ground attachments during land acquisition. 3. Beside the compensation of ground attachments provided to affected households, Fanjia Village Committee received CNY 6,370,100 for the compensation of 1,274.02 mu land of salt ponds. 4. Land compensation fund has not yet been allocated to villagers from village account. This fund will be distributed to all of the villagers after the allocation program is approved by the meeting of villagers or representatives of villagers. 5. Potential problems 1Villagers of Fanjia Village thought that the land acquired should not be treated and compensated as wasteland since salt ponds can bring income to their households. They hope local government can provide land compensation with a similar rate of farmland. They said that the output of salt ponds is about 10 tons per mu annually, and the market price is about 50 to 80 yuan per ton, the cost is about 100 yuan per mu every year, so the net income of salt ponds is about 600 yuan per mu annually. They said the existing land compensation rate of salt ponds (5,000 yuan per mu) was not acceptable.

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2The land acquisition compensation fund is kept in account of Fanjia village committee, however there may be a big problem during the distribution of this fund due to the unsatisfied land compensation rate.

Record 2: FGD records in Chitou Village on land acquisition and compensation

Date: December 8, 2015; Tuesday Place: home of Mr. Li Jiangming SubjectLand acquisition compensation and resettlement in Chitou Village Participants: Li Xiaolong Secretary of Chitou village Branch of CPC Li Jiangming Director of Supervision board of Chitou village Yin De’an Village Officer Zhao Chuncao (female) Deputy director of the women’s federation of Chitou Village Lian Jian Staff of Land Management bureau of WLMIDZC Chen Mingtao Staff of Weinan PMO Organizer and Recorder: Wang Hengbo Assistant of social specialist

1. Villagers agreed WLMIDZC to acquire land in their villages for development and construction, they believed that it can bring job and business opportunities for local residents, and promote the rapid growth of regional economy. 2. Beside the compensation of ground attachments provided to affected households, Chitou Village committee received CNY 2,965,850 for the compensation of 593 mu land of salt ponds. 3. Land compensation fund has not yet been allocated to villagers from village account. This fund will be distributed to all of the villagers in the groups affected by land acquisition. 4. The villagers believed the land acquisition compensation rate of salt ponds was too low to make up their loss. 5. Chitou village committee had confidence to smoothly promote the fund distribution in next steps. 6.Suggest(1) They hope local government can provide more assistances to villagers through increasing subsidies and policy support, such as finance support for rural roads construction, sanitation and environment protection, etc. (2)Another suggestion is the finance support for the public cultural events, especially for rural women in villages, e.g. facilities and clothes for their square dance.

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