Chongqing Longxi River Basin Integrated Flood and Environmental Risk Management Project – Land Use Right Transfer Plan for Dianjiang Subproject (Contract Nos

Resettlement Plan

February 2021

People’s Republic of China: Chongqing Longxi River Basin Integrated Flood and Environmental Risk Management Project – Land Use Right Transfer Plan for Dianjiang Subproject (Contract Nos. DJ-C01, DJ-C03, DJ-C04, and DJ-C05)

Prepared by the Dianjiang County Government for the Asian Development Bank.

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.

Contents

1 BACKGROUND ...... 1

1.1 OVERVIEW ...... 1

1.2 DESCRIPTION OF CONTRACTS AND OVERVIEW OF LAND USE IMPACTS ...... 6

1.3 THIS REPORT ...... 14

2 LAND USE RIGHTS TRANSFER ...... 17

2.1 IMPACTS OF LURT ...... 17

2.2 LURT IMPACT ANALYSIS ...... 20

2.3 GROUND ATTACHMENTS...... 21

2.4 LAND ATTRIBUTES ...... 27

3 LURT POLICIES AND COMPENSATION RATES ...... 36

...... 36

3.1 POLICES AND RENT FOR LURT ...... 36

3.2 ENTITLEMENT MATRIX ...... 38

4 LIVELIHOOD RESTORATION ...... 41

5 LAND USE ORGANIZATIONS ...... 42

5.1 ORGANIZATIONAL STRUCTURE ...... 42

5.2 INSTITUTIONAL CAPACITY AND TRAINING ...... 42

6 PUBLIC PARTICIPATION AND GRIEVANCE REDRESS ...... 44

6.1 PUBLIC PARTICIPATION ...... 44

6.2 GRIEVANCE REDRESS ...... 49

7 LURT COST ...... 50

7.1 ESTIMATED BUDGET ...... 50

7.2 ANNUAL DISBURSEMENT PLAN ...... 55

7.3 FUND MANAGEMENT ...... 56

8 IMPLEMENTATION AND M&E ...... 57

8.1 IMPLEMENTATION ...... 57

8.2 MONITORING AND EVALUATION (M&E) ...... 57

APPENDIX ...... 60

APPENDIX 1 OFFICE OF PEOPLE'S GOVERNMENT OF DIANJIANG COUNTY ...... 60

APPENDIX 2 CASE OF LURT AGREEMENT IN THE PROJECT AREA ...... 67

APPENDIX 3 LETTER FROM DIANJIANG COUNTY LAND RESOURCES AND HOUSING ADMINISTRATION ...... 78

APPENDIX 4 LAND LEASE AGREEMENT OF THE FIRST VILLAGER GROUP OF MINZHU VILLAGE ...... 79

List of Tables

TABLE1-1 TENTATIVE SCHEDULE OF SUBMISSION OF UPDATED PLANNING DOCUMENTS ON LAND USE FOR CONTRACT PACKAGES ...... 4

TABLE 1-2 CONTENTS OF THE CONTRACT AND MAIN LAND USE RIGHTS TRANSFER COVERAGE ...... 9

TABLE 1-3 MAIN CHANGES IN THIS LURTP AND CORRESPONDING JUSTIFICATIONS ...... 16

TABLE 2-1 LURT LAND AREA AND INVOLVED PERSONS ...... 17

TABLE 2-2 ANALYSIS OF LURT AREA AND NO. OF HHS ...... 22

TABLE 2-3 LIST OF GROUND ATTACHMENTS ...... 25

TABLE 2-4 DJ-C01 LAND TYPE IN PUSHUN TOWN ...... 28

TABLE 2-5 DJ-C03 LAND TYPE IN GAOAN TOWN ...... 30

TABLE 2-6 DJ-C04 LAND TYPE ...... 31

TABLE 2-7 DJ-C05 LAND TYPE IN GAOFENG TOWN ...... 33

TABLE 3-1 COMPENSATION RATES OF GROUND ATTACHMENTS ...... 38

TABLE 3-2 ENTITLEMENT MATRIX ...... 39

TABLE 6-1 CONSULTATIONS CONDUCTED DURING DMS ...... 47

TABLE 6-2 INFORMATION DISCLOSURE AND PUBLIC PARTICIPATION PLAN ...... 49

TABLE 6-3 CONTACT INFORMATION OF APPEAL ACCEPTING AGENCIES ...... 49

TABLE 7-1 ESTIMATED BUDGET ...... 50

TABLE 7-2 ANNUAL DISBURSEMENT PLAN ...... 55

TABLE 8-2 EXTERNAL M&E OF DJ-C01, DJ-C03, DJ-C04 AND DJ-C05 ...... 58

List of Figures

FIGURE 1-1 CONSTRUCTION LAYOUT OF PUSHUN TOWN ...... 7

FIGURE 1-2 CONSTRUCTION LAYOUT OF GAO'AN TOWN (UPSTREAM OF HUATAN BRIDGE) ...... 7

FIGURE 1-3 CONSTRUCTION LAYOUT OF GAO'AN TOWN (DOWNSTREAM OF HUATAN BRIDGE) ...... 8

FIGURE 1-4 CONSTRUCTION LAYOUT OF GAOFENG TOWN ...... 8

FIGURE 2-1 LAND TO BE TRAINED AND LAND TO BE OCCUPIED(JULY 30, 2020) ...... 19

FIGURE 2-2 SURVEY OF LURT CONFIRMED BY HHS(JULY 31, 2020) ...... 20

FIGURE 5-1 LEADERS OF CHONGQING PMO DISCUSS RESETTLEMENT / LAND USE ISSUES WITH STAFF ...... 43

FIGURE 6-1 DMS ON SITE（JULY 31, 2020） ...... 45

1 Background

1.1 Overview

A loan for $150 million was approved by ADB Board on 17 September 2018 for the Chongqing Longxi River Basin Integrated Flood and Environmental Risk Management Project (Loan No. 3704-PRC) (herein after referred as the Project). The Project is located in Liangping, Dianjiang and Changshou counties/districts, consisting of four outputs, which are (i) flood risk management infrastructure constructed; (ii) wastewater management and pollution control infrastructure developed; (iii) ecological conservation facilities improved; and (iv) flood and environmental risk management (FERM) capacity enhanced.

Dianjiang Subproject, one of subprojects of the Project ， is composed of 6 components as following: (1) Pushun, Zhoujia Town ecological embankment and ecological landscape, emergency square; (2) River dredging, plant ecological restoration and coastal ecological landscape in Xinmin Town; (3) Ecological embankment and ecological landscape in Gao’an town (upstream of Huatan bridge); and riverside ecological landscape zones; (4) Plant ecological restoration and coastal ecological landscape in Gao’an town (downstream of Huatan bridge), emergency road and Bridge; (5) Gaofeng town ecological embankment and ecological landscape, emergency road and bridge, emergency square; and (6) Guixi Street ecological and environmental improvement project, riverbank revetment, Sanhe wetland earth embankment reinforcement.

This updated planning document covers 4 contract packages：Comprehensive environmental treatment of Zhoujia town Longxi River in Fushun town (DJ-C01), Gao'an town Longxi River environmental comprehensive treatment (upstream of Huatan bridge) (DJ-C03), Gao'an town Longxi River environmental comprehensive treatment (downstream of Huatan bridge) (DJ-C04), and Gaofeng town Longxi River comprehensive environmental management (DJ-C05).

Based on the requirements of the Safeguard Policy Statement (SPS 2009) of ADB, the Project Management Office (PMO) of Dianjiang had prepared a draft RP for Dianjiang Subproject during project preparation, which was approved by ADB in April 2018 and could be referred to: https://www.adb.org/sites/default/files/project- documents/51005/51005-002-rp-en_1.pdf.

Following completion of preliminary design, detailed measurement survey, and consultations with households, it has been decided now that for contract packages: DJ-C01,DJ-C03,DJ-C04 and DJ-C05, land will not be acquired permanently but will be obtained through land use rights transfer (LURT) which is based on voluntary agreements with households. This LURTP has been prepared following the agreed LURT framework (see Appendix 2 of the Resettlement Plan dated April 2018). 1

The main contents or nature of the project’s civil works components are listed as follows.

(1) River treatment component

The main stream of Longxi River is located in Gao’an Town, Gaofeng Town and Pushun section. The total length of river treatment is 6.562km, and the total length of the newly built revetment is 10.575km. The length of Longxi River treatment in Gao 'an Town is 1.515km, and the length of the newly built bank revetment is 3.03km. The length of Longxi River treatment in Gaofeng Town is 2.837km, and the length of new bank revetment is 3.875km. The length of Longxi River treatment in Pushun town is 2.21km, and the length of new bank revetment is 3.67km.

(2) Flood risk management component

In order to ensure the life and property security of residents on both sides of the river, facilitate flood prevention and emergency rescue, and support with local residents' daily life, 17.43km flood control emergency road will be built on both sides of the river from Gao'an section to Gaofeng section of Longxi River, including 15.0km of new built emergency road on the left bank and 2.43km of new built emergency road on the right bank. 2 emergency bridges across Longxi River will be built, and an emergency square with an area of 4200 will be built in Gaofeng town. An emergency square with an area of about 6000 m2 will be built in Zhoujia town.

(3) Ecological environment improvement component

Gao’an Town: A riverside Qingshui park landscape zone will be built, with an area of about 13900 m2. A riverside Hexing park landscape zone will be built, with an area of about 23500 m2. A new ecological green zone will be built on both sides from Sanyuan bridge to Huatan bridge across Longxi River, with an area of 58400 m2. An ecological node will be built from Huatan bridge in Gao’an town to Yehekou bridge in Gaofeng town with an area of 17900 m2.

Gaofeng Town: 27900 m2 of the ecological green zone will be built on the right bank of Longxi River from Gaofeng bridge to Yehekou bridge. It is mainly for the design of revetment greening, green zones and node design between river embankment and village roads.

Pushun Town: 11500 m2 of the ecological landscape zone will be built on both banks from the barrage of Motan hydropower station to Pushun bridge.

4200 m2 of land acquisition for the emergency square in Gaofeng town and 6000 m2 in Zhoujia town had been completed in the past and it is now state-owned land. For details, please refer to the resettlement due diligence report of PPTA phase in 2018, the Appendix 2 for the due diligence report of state-owned land usage.

The land use planning document of Dianjiang subproject (including this LURT report) has been updated or prepared based on the latest design.

If the land involved by this project will be acquired by land acquisition during the project implementation (which is not expected at this stage), an updated resettlement plan will be prepared in accordance with the resettlement plan approved in April 2018.

The schedule of land use plan update by Dianjiang PMO is formulated in Table 1- 1 as per the implementation progress of the project.

Table1-1 Schedule of Submission of updated planning documents on land use for contract packages

(As of January 2021)

Contract Construction Submission of updated No. Contents of Civil Works Land use DMS Remark No. drawing design planning document

Comprehensive environmental treatment of Zhoujia This town Longxi River in Pushun town - including 3.67km August to September LURTP, 1 DJ-C01 July 2020 October 2020 ecological embankment and ecological landscape, 1 2020 as batch Emergency square（6000 m2） 2

2 Xinmin Town - Longxi River comprehensive Approved environmental management - including 2.41km river LURTP DJ-C02 January 2020 February to March 2020 June 2020 dredging, plant ecological restoration and coastal as batch ecological landscape, 4.69km ecological foot protection 1

3 Gao'an town Longxi River environmental This comprehensive treatment (upstream of Huatan August to September LURTP, DJ-C03 bridge) - including 3.24km ecological embankment and July 2020 October 2020 2020 as batch ecological landscape, 2 riverside ecological landscape 2 zones (about 56.15mu)

4 Gao'an town Longxi River environmental This August to September LURTP, DJ-C04 comprehensive treatment (downstream of Huatan July 2020 October 2020 2020 as batch bridge) - including 21.6km embankment plant ecological

restoration and coastal ecological landscape, 12.5km 2

Contract Construction Submission of updated No. Contents of Civil Works Land use DMS Remark No. drawing design planning document

emergency road, 1 emergency bridge

5 Gaofeng town Longxi River comprehensive environmental management - including 3.9km ecological This embankment and ecological landscape, 5.4km August to September LURTP, DJ-C05 July 2020 October 2020 emergency road, 1 emergency bridge, 1 Emergency 2020 as batch square (4200m2) vegetation buffer zone and ecological 2 restoration

6 Guixi Street ecological and environmental Non ADB financing. Due diligence was carried out during project preparation. DJ-C06 improvement project - 7.5km revetment, Sanhe According to the due diligence, there are no remaining issues regarding land use . wetland earth dam reinforcement (300mu)

Data source: Dianjiang PMO

1.2 Description of Contract Packages and Overview of Land use Impacts

In general, the preliminary or latest design scheme of contract packages DJ- C01,DJ-C03,DJ-C04 and DJ-C05 has not changed significantly compared with the feasibility study report of the project.

According to the project construction content and detailed survey, the contract packages DJ-C01,DJ-C03,DJ-C04 and DJ-C05 will only involve land use right transfer (LURT). As per the notice of the office of Dianjiang County Government on printing and distributing the guiding opinions on standardizing the rural LURT and strengthening the transfer risk prevention (for Trial Implementation) (the office of Dianjiang County Government ([2018] No. 18) (see Appendix 1 for details), the LURT is in compliance with the PRC’s laws and regulations of land use for this project. Therefore, it will adopt LURT rather than permanent LA set in the draft RP to gain land use for the construction.

It is expected that 574.411 mu of collective land will be used through LURT, including 396.149mu paddy land and 178.262mu dry land. Package DJ-C01 will involve 218 households with 786 people from 5 villages in Pushun town (Renhe village, Lishu village, Xinqiao village , Changbo village and Motan village); Package DJ-C03 will involve 213 households with 894 people in two villages of Gao’an town (Gao’an village, Hexing village); Package DJ-C04 will involve 437 households with 1924 people in four villages of Gao’an town (Dongqiao village, Fu’an village, Xinxi village , Longjing village);Package DJ-C05 will involve 314 households with 1208 people in three villages of Gaofeng town (Minzhu village, Dajing village, Gaofeng community). In total, these 4 contract packages will involve 1209 households with 4812 people in 14 villages. No house demolition is involved. In addition, along with the LURT, the 4 packages will affect some ground accessories, such as fruit trees, trees and etc.

The construction contents and main LURT coverage of DJ-C01,DJ-C03,DJ-C04 and DJ-C05 are summarized in Table 1-2. The construction layout of DJ-C01,DJ- C03,DJ-C04 and DJ-C05 is shown in Figure 1-1.

Figure 1-1 Construction Layout of Pushun town

Figure 1-2 Construction Layout of Gao'an town (upstream of Huatan bridge)

Figure 1-3 Construction Layout of Gao'an town (downstream of Huatan bridge)

Figure 1-4 Construction Layout of Gaofeng Town

Table 1-2 Contents of the Contract and Main Land Use Rights Transfer Coverage

Contract No. Contents Land use Impacts in the draft RP LURTP Coverage Changes and Reasons package

Conclusion of due diligence: 88.68 mu collective land will be used through LURT, (1) the construction of two involving 218 HHs with 786 emergency shelters in Gaofeng persons in 5 villages town and Zhoujia town involves 9 Compared with draft RP, the main (Renhe, Lishu, mu of state-owned land. The land change is the area of land and the Xinqiao,Changbo and was acquired in 2010 and 2012 number of HHs. Motan villages) in Pushun respectively; Comprehensive town. The main reason of the change is the environmental treatment (2) It includes Sanhe reservoir dam survey accuracy. In the feasibility It not involve the LURT in of Zhoujia town Longxi reinforcement and 7.5km of study stage of the project, the scale of Zhoujia town because land River in Fushun town - ecological reservoir bank the project drawings (1:5000) is 1 DJ-C01 acquisition had been including 3.67km construction in Guixi street. The relatively not accurate, and the survey completed in Zhoujia town ecological embankment Sanhe reservoir, built in 1958, results are not confirmed by the in the past and land is and ecological landscape, covers 52.2 mu of state-owned farmers; in the preliminary or latest state-owned now. Details 1 Emergency square（6000 land; design stage, the scale of the project can be found in the RP in m2） adjusted drawings (such as 1:500) is (3) In Gaofeng, Gao'an, Pushun PPTA phase in 2018, more accurate, and the survey results and Xinmin town, the Longxi River Appendix 2 Due diligence are confirmed by the farmers. embankment restoration project of state-owned land usage involves a total of 1069.7 mu of No house demolition will be state-owned river land within the involved. Ground scope of river management; attachments such as

Contract No. Contents Land use Impacts in the draft RP LURTP Coverage Changes and Reasons package

(4) The construction of five scattered trees, fruit trees, emergency bridges in Gao'an and and tombs etc. will be Gaofeng involves 11.9 mu of state- removed, owned land within the scope of river • 4 Tombs management; • 124 Fruit trees (5) The Dianjiang Bureau of land, resources and housing confirmed • 1862 Misc trees that the land for this project does

not involve new construction land;

（6）After on-site investigation and public consultation from November 2017 to February 2018, no remaining problems related to the above land were found, and no complaints occurred.

128.88 mu collective land Gao'an town Longxi The project will affect 26 groups Compared with draft RP, the main will be used through LURT, River environmental in 7 villages of 1 town, involving change is that 1) the number of involving 213 HHs with 894 comprehensive 4700 people from 1243 villages and communities are

2 DJ-C03 persons in 2 villages treatment (upstream of households; decreased ,2) the land to be used and - including (Gao’an and Hexing Huatan bridge) the number of HHs are increased. Including 42.2 mu of paddy field, 3.24km ecological villages) of Gao’an town. 116.3 mu of dry land and 30.6 mu The main reason of the change is the embankment and No house demolition will be 10

Contract No. Contents Land use Impacts in the draft RP LURTP Coverage Changes and Reasons package

ecological landscape, 2 of non cultivated land, with a total of involved. Ground survey accuracy. In the feasibility riverside ecological 189.1 mu land; attachments such as study stage of the project, the scale of landscape zones (about scattered trees, fruit trees, the project drawings (1:5000) is The cultivated land per household 56.15mu) and tombs etc. will be relatively not accurate, and the survey is 0.127 mu, and the per capita removed, including: results are not confirmed by the cultivated land is 0.034 mu. farmers; in the preliminary or latest • 73 Fruit trees design stage, the scale of the project • 61 Misc trees adjusted drawings (such as 1:500) is more accurate, and the survey results

are confirmed by the farmers.

Gao'an town Longxi 250.61 mu collective land River environmental will be used through LURT, comprehensive involving 437 HHs with treatment (downstream 1924 persons in 4 villages of Huatan bridge) - (Dongqiao, Fu’an, Xinxi

3 DJ-C04 including 21.6km Same as above. and Longjing villages) of Same as above. embankment plant Gao’an town. No house ecological restoration and demolition will be involved. coastal ecological Ground attachments such landscape, 12.5km as scattered trees, fruit emergency road, 1 trees, and tombs etc. will

Contract No. Contents Land use Impacts in the draft RP LURTP Coverage Changes and Reasons package

emergency bridge be removed, including:

• 639 Fruit trees

• 1552 Misc trees

Compared with draft RP, the main

Gaofeng town Longxi change is the land to be used and the The project will affect 6 groups in number of HHs are increased. River comprehensive 3 villages of 1 town, involving 970 106.24 mu collective land environmental The main reason of the change is the people from 248 households; will be used through LURT, management - including survey accuracy. In the feasibility involving 314 HHs with 3.9km ecological Including 23 mu of paddy field, 7.8 study stage of the project, the scale of 1208 persons in 3 villages embankment and mu of dry land and 5.7 mu of non the project drawings (1:5000) is 4 DJ-C05 (Minzhu, Dajing and ecological landscape, cultivated land, with a total of 36.5 relatively not accurate, and the survey Gaofeng) of Gaofeng town.

5.4km emergency road, 1 mu; results are not confirmed by the No house demolition and emergency bridge, 1 farmers; in the preliminary or latest The cultivated land per household no ground attachments will Emergency square (4200 design stage, the scale of the project is 0.12 mu, and the per capita be involved. m2) vegetation buffer zone cultivated land is 0.032 mu. adjusted drawings (such as 1:500) is

and ecological restoration more accurate, and the survey results are confirmed by the farmers.

Contract No. Contents Land use Impacts in the draft RP LURTP Coverage Changes and Reasons package

1.3 This Report

Compared with draft RP, the main changes/updates of this LURTP include: • The notice of the office of Dianjiang County Government on printing and distributing the guiding opinions on standardizing the rural LURT and strengthening the transfer risk prevention (for Trial Implementation) (office of Dianjiang County Government ([2018] No. 18) (see Appendix 1 for details) will be followed;

• The land use scope has changes (see table 1-2 above);

• The rental standard of LURT has been adjusted to 300~700yuan/mu/year (see the justification in table 1-3). In response to the above changes, Dianjiang PMO conducted in-depth consultation with relevant departments (Planning and Natural Resources Bureau of Dianjiang County, Agricultural and Rural Committee of Dianjiang County, etc.) and conducted full field investigation. It is confirmed that these changes are in line with the actual situation of the project area and the corresponding laws and regulations in PRC.

For LURT rent, Dianjiang PMO reviewed the existing LURT agreements in neighboring villages. According to the LURT practice in project area, the annual rent of LURT ranges from 300yuan/mu~700yuan/mu, which is acceptable to local farmers commonly (See Appendix 2).The existing contract for nearby villages is in line with LURT framework which was formulated based on the Land Contract Law of PRC and local regulations. The contents of contract included but not limited to: a. Name of Party A and Party B；b. Location of leased land；c. Area of leased land；d. the term of land leasing；e. Compensation fee; f. Payment method of compensation fee; g. Restrictions of non-farming activities after LURT; h. number of copies of agreement; and i. Restrictions on land acquisition.

In addition, according to consultations, the following points on LURT in project area concluded:

• The LURT is very common in project area. The PRC, Chongqing City and local governments have established a comprehensive policy system which has standardized the principles, subjects, procedures, transactions, contract management and management agencies on LURT.

• The LURT should abide by the principle of equal consultation, legality, voluntariness and compensation; and insisting on the farmer household participation in contract management system and stabilizing the rural land contract relationship.

• The contract of LURT should be signed in written, and rent should be paid in a timely manner. 14

• With the consent of concerned farmers, the village committees are usually authorized to sign contract, in which, roster of concerned farmers should be attached, while the rent will be paid by LURT transferee to the fiscal accounts of concerned township government, and then paid to concerned farmers or villages directly based on the roster sheet.

The main changes/updates and justifications are summarized in Table 1-3.

Table 1-3 Main Changes in this LURTP and Corresponding Justifications

Draft No Item This LURTP Main Justification RP

According to the grain output of the land and the market price of the current year, the rent of LURT shall be determined. The 1500 yuan / mu According to the survey, the annual rent / year determined in standard for each town is listed as follows. the draft RP was

The rental standard of Pushun town is： related to permanent land • Paddy land: Calculated based on acquisition; the 250kg rice per mu at market price of rental standard in 2.4 Yuan/kg in the year of 2020, i.e. LURTP conforms to annual rent is 600 Yuan/mu per the local LURT annum（2.4x250）; practice. The draft • Dry land: Calculated based on RP’s standard is the 125kg rice per mu at market price of compensation fee 2.4Yuan/kg in the year of 2020, i.e. for young crops at Compen 1500 annual rent is 300 Yuan/mu per the time of land sation/R yuan / annum (2.4x125) acquisition, rather ent mu / 1 than the rent for standard year The rental standard of Gao’an town is： LURT. According to forland compe • Paddy land: The LURT price is 1000 practice of LURT in use nsation yuan / mu / year, including ground project area, the attachments. The contract period is annual rent of LURT 15 years. ranges from 300yuan/mu~700y • Dry land: The LURT price is 1000 uan/mu, which is yuan / mu / year, including ground acceptable to local attachments. The contract period is farmers commonly. 15 years. The agreements The rental standard of Gaofeng town is： and rents of LURT for other projects • Paddy land: Calculated based on are included in 208kg rice per mu at market price of Appendix 2 for 2.4 Yuan/kg in the year of 2020, i.e. reference. annual rent is 500 Yuan/mu per annum（2.4x208）;

• Dry land: Calculated based on

208kg rice per mu at market price of 2.4 Yuan/kg in the year of 2020, i.e. annual rent is 500 Yuan/mu per annum (2.4x208)

2 Land Use Rights Transfer

As mentioned in subsection 1.2, according to the latest design of the project and the detailed measurement survey, the main land-related impacts of the contract packages DJ-C01,DJ-C03,DJ-C04 and DJ-C05 are LURT, without any LA or house demolition impacts. River rehabilitation works will be implemented within the scope of LURT of the project, so no additional temporary land occupation is required.

2.1 Scope of LURT

According to DMS, a total of 574.411 mu collective land will be used through LURT, including 396.149 mu paddy land, accounting for 68.97%, and178.262 mu dry land, accounting for 31.03%. The LURT will involve 1209 households with 4812 persons in 14 villages of Pushun town, Gao’an town and Gaofeng town. It was confirmed that there are no vulnerable households. See details in Table 2-1.

Table 2-1 LURT Land Area and Involved Persons

Contact No. Town Village Group LURT (mu) Involved Persons

Paddy Dry Subtotal HHs Persons Land

1 Pushun Renhe 1 0 1.66 1.66 22 81

2 Pushun Lishu 3 0 0.21 0.21 1 2

3 Pushun Xinqiao 5 10.778 19.302 30.08 69 240

DJ-C01 4 Pushun Changbo 2, 3 3.66 16.723 20.383 65 226

5 Pushun Motan 1, 4 6.911 29.437 36.348 61 237

Subtotal 21.349 67.332 88.681 218 786

Percent 24.07% 75.93% 100.00%

Contact No. Town Village Group LURT (mu) Involved Persons

Paddy Dry Subtotal HHs Persons Land

1 Gao’an Gao’an 1 5.34 3.59 8.93 17 71

2 Gao’an Gao’an 3 6.67 4.59 11.26 25 110

3 Gao’an Gao’an 4 2.81 1.31 4.12 12 49

4 Gao’an Gao’an 5 20.48 18.68 39.16 57 221

DJ-C03 5 Gao’an Gao’an 6 19.47 10.66 30.13 43 185

6 Gao’an Hexing 2 2.47 0.64 3.11 11 48

7 Gao’an Hexing 3 25.54 6.63 32.17 48 210

Subtotal 82.78 46.1 128.88 213 894

Percent 64.23% 35.77% 100.00%

1 Gao’an Dongqiao 1 14.78 3.82 18.6 39 212

2 Gao’an Dongqiao 2 14.64 3.53 18.17 26 110

3 Gao’an Dongqiao 4 21.48 4.95 26.43 32 136

4 Gao’an Fu’an 3 10.06 1.14 11.2 33 143

5 Gao’an Fu’an 4 11.92 1.36 13.28 19 59

6 Gao’an Fu’an 5 41.22 4.7 45.92 63 252

7 Gao’an Xinxi 1 4.63 3.03 7.66 18 90

DJ-C04 8 Gao’an Xinxi 6 23.84 7.16 31 61 335

9 Gao’an Xinxi 7 16.92 1.95 18.87 28 84

10 Gao’an Xinxi 8 10.38 7.83 18.21 14 72

11 Gao’an Xinxi 9 10.31 4.19 14.5 33 152

12 Gao’an Longjing 1 6.87 5.71 12.58 36 133

13 Gao’an Longjing 2 11.53 2.66 14.19 35 146

Subtotal 198.58 52.03 250.61 437 1924

Percent 79.24% 20.76% 100.00%

Contact No. Town Village Group LURT (mu) Involved Persons

Paddy Dry Subtotal HHs Persons Land

1 Gaofeng Minzhu 1 50.22 1.1 51.32 78 115

2 Gaofeng Minzhu 4 9.04 0.5 9.54 23 43

3 Gaofeng Dajing 3 12.12 2.3 14.42 110 420

DJ-C05 4 Gaofeng Dajing 4 19.66 5 24.66 130 630

5 Gaofeng Gaofeng 2 2.4 3.9 6.3 0 0

Subtotal 93.44 12.8 106.24 341 1208

Percent 87.95% 12.05% 100.00%

Total 396.149 178.262 574.411 1209 4812

Percent 68.97% 31.03% 100.00%

Data source：DMS

Figure 2-1 Land to be Used and Land to be Occupied(July 30, 2020)

During land use DMS, the households were informed on the objectives of the project, the way of land use and land use policies, and the like. The households expressed that they support the project and think the surrounding environment of the villages will be improved after the project which will benefit their life. For land to be used by DJ-C01,DJ-C03,DJ-C04 and DJ-C05 , the households have initially agreed with LURT, and have confirmed and signed the form for survey results, which is depicted in Figure 2-2.

Figure 2-2 Survey of LURT Confirmed by HHs(July 31, 2020)

2.2 LURT Impact Analysis

LURT for DJ-C01, DJ-C03, DJ-C04 and DJ-C05 will involve 14 administrative villages in Pushun town, Gao’an town and Gaofeng town. As shown in Table 2-2 these villages will involve a total of 574.41 mu land under LURT, of which about 68.97% is paddy land and the rest is dry land. In terms of productive paddy land, an overall land use rate is 4.54% of the total productive paddy land in the village. A total of 1209 households, accounting for 15.69% of total households in the villages, will be involved. It is indicated that the land contracting in project area is scattered, which results in a smaller proportion of productive land under LURT. See table 2-2 for details.

According to further analysis and consultations, involved households will transfer in average 4.54% of paddy land; and no household will transfer more than 43.49% of their paddy land (see table 2-2). Group 1 and 4 of Motan Village, Pushun Town will transfer the highest portion of paddy land1, while other groups will transfer less than 20%. For example, the sample survey shows that agricultural income is not the main source of income of the involved households (only 9.6% of the total income), so no involved households will lose more than 1.21% of their income (which will be offset by LURT rental).

In addition, in essence, the LURT is a voluntary transaction based on equal negotiation, which does not involve involuntary land acquisition. DJ-C01,DJ-C03,DJ- C04 and DJ-C05 will carry out the LURT in strict accordance with Appendix 2 - LURT Framework in draft RP approved by ADB. At the same time, the construction of DJ- C01,DJ-C03,DJ-C04 and DJ-C05 will not impose involuntary restrictions on the use of remaining land or designated reserves.

1 These two groups have cultivated land per capita of 1.2 mu (including dry land), and the land transferred ratio is 12.7% in terms of all cultivated land.

Generally speaking, the LURT is distributed linearly along the river, and the income loss of involved households will be no more than 2%. The agricultural income loss of the farmers will be fully offset by the rent of LURT. Because the rent is determined by the market price, the income of farmers will not be affected negatively. In addition, the involved farmers will be given priority to skilled and unskilled employment opportunities created by the project. This means that local farmers can not only get rent from LURT, but also get employment opportunities and remuneration during the implementation and operation of the project, so as to increase their income.

2.3 Ground Attachments

Along with LURT, some ground attachments will have to be removed and compensated for based on the principle of replacement cost. Those are scattered fruit trees, trees, and tombs as well. See details in Table 2-3.

Table 2-2 Analysis of LURT Area and No. of HHs

Contract No Town Village Group LURT (mu) HH in Total land and Total HHs Impact Analysis LURT in Village Paddy Dry Land Subtotal household Paddy Total HH Occupation Rate of HH rate of Paddy land 1 Pushun Renhe 1 0 1.66 1.66 22 11 164 0.00% 13.41%

2 Pushun Lishu 3 0 0.21 0.21 1 0.68 53 0.00% 1.89%

3 Pushun Xinqiao 5 10.778 19.302 30.08 69 206.961 179 5.21% 38.55% DJ-C01 4 Pushun Changbo 2, 3 3.66 16.723 20.383 65 111.08 245 3.29% 26.53%

5 Pushun Motan 1, 4 6.911 29.437 36.348 61 15.89 393 43.49% 15.52%

Subtotal 21.349 67.332 88.681 218 345.611 1034 6.18% 21.08%

1 Gao’an Gao’an 1 5.34 3.59 8.93 17 91 82 5.87% 20.73%

2 Gao’an Gao’an 3 6.67 4.59 11.26 25 175 152 3.81% 16.45%

3 Gao’an Gao’an 4 2.81 1.31 4.12 12 61 460 4.61% 2.61% DJ-C03 4 Gao’an Gao’an 5 20.48 18.68 39.16 57 110 179 18.62% 31.84%

5 Gao’an Gao’an 6 19.47 10.66 30.13 43 377.9 145 5.15% 29.66%

6 Gao’an Hexing 2 2.47 0.64 3.11 11 225.75 115 1.09% 9.57%

Contract No Town Village Group LURT (mu) HH in Total land and Total HHs Impact Analysis LURT in Village Paddy Dry Land Subtotal household Paddy Total HH Occupation Rate of HH rate of Paddy land 7 Gao’an Hexing 3 25.54 6.63 32.17 48 256.95 167 9.94% 28.74%

Subtotal 82.78 46.1 128.88 213 1297.6 1300 6.38% 16.38%

1 Gao’an Dongqiao 1 14.78 3.82 18.6 39 390.8 224 3.78% 17.41%

2 Gao’an Dongqiao 2 14.64 3.53 18.17 26 299.5 144 4.89% 18.06%

3 Gao’an Dongqiao 4 21.48 4.95 26.43 32 381.9 137 5.62% 23.36%

4 Gao’an Fu’an 3 10.06 1.14 11.2 33 372 127 2.71% 25.98%

5 Gao’an Fu’an 4 11.92 1.36 13.28 19 398 152 3.00% 12.50%

DJ-C04 6 Gao’an Fu’an 5 41.22 4.7 45.92 63 315 123 13.11% 51.22%

7 Gao’an Xinxi 1 4.63 3.03 7.66 18 374.27 149 1.24% 12.08%

8 Gao’an Xinxi 6 23.84 7.16 31 61 409.24 144 5.83% 42.36%

9 Gao’an Xinxi 7 16.92 1.95 18.87 28 394.14 150 4.29% 18.67%

10 Gao’an Xinxi 8 10.38 7.83 18.21 14 361.54 119 2.87% 11.76%

11 Gao’an Xinxi 9 10.31 4.19 14.5 33 457.4 131 2.25% 25.19%

13 Gao’an Longjing 2 11.53 2.66 14.19 35 458 132 2.52% 26.52%

Subtotal 198.58 52.03 250.61 437 5338.55 1917 3.72% 22.80%

1 Gaofeng Minzhu 1 50.22 1.1 51.32 78 596 856 8.43% 9.11%

2 Gaofeng Minzhu 4 9.04 0.5 9.54 23 275 856 3.29% 2.69%

3 Gaofeng Dajing 3 12.12 2.3 14.42 110 262 557 4.63% 19.75% DJ-C05 4 Gaofeng Dajing 4 19.66 5 24.66 130 340 749 5.78% 17.36%

5 Gaofeng Gaofeng 2 2.4 3.9 6.3 0 278.23 439 0.86% 0.00%

Subtotal 93.44 12.8 106.24 341 1751.23 3457 5.34% 9.86%

Total 396.149 178.262 574.411 1209 8732.991 7708 4.54% 15.69%

Data source: DMS, 2020

Table 2-3 List of Ground Attachments

Fruit tree Miscellaneous Tree Other

11~20 11~20 Grape Contract No Town Village Group 1~2cm 3~5cm 6~10cm >20 cm 3~5 cm 6~10cm >20cm Bamboo Tomb cm cm tree

number number number number number number number number number number Kg number

1 Pushun Renhe 1 6

2 Pushun Lishu 3 4 10 10000

3 Pushun Xinqiao 5 3 2 81 132 325 12335 DJ-C01 4 Pushun Changbo 2、3 4 13 12 9 139 129 78 18450 4

5 Pushun Motan 1、4 24 48 15 3 80 306 253 310 20000

Subtotal 24 55 30 0 15 89 530 514 729 0 60785 4

1 Gao’an Gao’an 1 6

2 Gao’an Gao’an 3 11

DJ-C03 3 Gao’an Gao’an 4

4 Gao’an Gao’an 5 36 11 23 4

5 Gao’an Gao’an 6 19 7 15 2

Fruit tree Miscellaneous Tree Other

11~20 11~20 Grape Contract No Town Village Group 1~2cm 3~5cm 6~10cm >20 cm 3~5 cm 6~10cm >20cm Bamboo Tomb cm cm tree

number number number number number number number number number number Kg number

6 Gao’an Hexing 2

7 Gao’an Hexing 3

Subtotal 0 55 18 0 0 0 55 6 0 0 0 0

1 Gao’an Dongqiao 1 139 146 282 152 117

2 Gao’an Dongqiao 2 35

3 Gao’an Dongqiao 4

4 Gao’an Fu’an 3 6 30 15 91 17 1 5

DJ-C04 5 Gao’an Fu’an 4 1 2 21 2

6 Gao’an Fu’an 5 145 113 216 85

7 Gao’an Xinxi 1 30 5 3

8 Gao’an Xinxi 6 27 22 1

9 Gao’an Xinxi 7 14

Fruit tree Miscellaneous Tree Other

11~20 11~20 Grape Contract No Town Village Group 1~2cm 3~5cm 6~10cm >20 cm 3~5 cm 6~10cm >20cm Bamboo Tomb cm cm tree

number number number number number number number number number number Kg number

10 Gao’an Xinxi 8 24 148

11 Gao’an Xinxi 9 34 150

12 Gao’an Longjing 1 23 3 9

13 Gao’an Longjing 2 41 36 1 7

Subtotal 0 290 266 61 22 527 479 504 42 0 0 8

Total 24 400 314 61 37 616 1064 1024 771 0 60785 12

Data source: DMS, 2020

2.4 Land Attributes

According to the analysis of the nature of land use for civil construction activities, the construction activities of the subproject in Dianjiang County do not involve illegal occupation of cultivated land for greening, landscaping and non-agricultural construction. The land attributes are shown in

Table 2-4,Table 2-5,Table 2-6 and Table 2-7 to confirm land use complies with relevant PRC regulations. As shown, mostly construction and unused lands are involved.

Table 2-4 DJ-C01 Land Type in Pushun Town

Land use classification Code Land use classification Subclass Land Type (according to Civil works Involved Involved Involved (According to the GB/T 21010- the Land Administration type Town Village LURT ( According to the GB/T 21010- 2017) 2017) Law)

Urban and village road land, Pushun Motan 1004、0302、0305、0702、 Construction Land and Yes bamboo forest land, shrub forest unused Land Town Village 1203 land, rural homestead, bare rock Landscaping

Pushun Renhe Yes Urban and village road land, shrub 1004、0305 Construction Land Town Village land

Pushun Lishu Yes Bamboo forest land, urban and Construction Land, Unused 、0302、1004、1207 Town Village village road land, bare rock Land River way Yes bamboo forest land, shrub forest Pushun Xinqiao 0302、0305、1006、1107、 land, rural road, ditch, field ridge, Unused Land Town Village 1207 bare rock

Yes Arbor woodland, bamboo 0301、0302、0305、1006、 woodland, shrub land, rural road, Pushun Changbai Construction Land, Unused field ridge, rural homestead, river Land Town Village 1203、0702、1101、1207 water surface, bare rock and gravel land

Pushun Renhe Yes Land for roads in towns and 1004、0305、0301、 villages, shrub land, arbor Construction Land Town Village woodland

Yes Arbor woodland, bamboo 0301、0302、0305、1006、 Pushun Motan woodland, shrub woodland, rural Construction Land, Unused road, rural homestead, bare rock Land Town Village 0702、1207 and gravel land

Zhoujia Juntian Yes Public management and Square 0810 Park and green space Town Village public service land

Table 2-5 DJ-C03 Land Type in Gaoan Town

Land use classification Land use classification Subclass Civil works Involved Involved Involved Code Land Type (according to the (According to the GB/T 21010- type Town Village LURT Land Administration Law) ( According to the GB/T 2017) 21010-2017)

Gaoan Hexing Yes 1004 Urban and village road land, Construction Land Town Village

Gaoan Gaoan 1004、1104、0307、 Urban and village road land, pond Landscaping communit Yes water surface, other forest land, Construction Land, Unused Land Town y 1206、0302 bare land, bamboo forest land

Changlong Longtian Yes 1004 Urban and village road land Construction Land Town Village

Gaoan Dongqiao Bamboo forest land, other forest Yes 0302、0307 Construction Land Town Village land

Water bank Gaoan Gaoan bare land, land for public facilities, communit Yes 1206、0809、1107、1004 ditch, land for urban and village Construction Land Town y road,

Table 2-6 DJ-C04 Land Type

Land use classification Land use classification Civil works Involved Involved Involved Code Land Type (according to the Subclass (According to the type Town Village LURT Land Administration Law) ( According to the GB/T GB/T 21010-2017) 21010-2017)

1006、0201、1207、 Rural road land, orchard, bare Gaofeng Minzhu rock and gravel land, rural Yes 0702、1003、1101、 Construction Land, Unused Land Town Village homestead, bamboo forest land, arbor forest land 1107、0302、0301

Gaoan Longjing Other woodland, rural road Emergency Yes 0307、1006、0305、1107 Construction Land Town Village land, shrub land, ditch road Other forest land, ditch, rural 0307、1107、1006、 Gaoan Fuan road land, bamboo forest land, Yes Construction Land field ridge, pond water surface, Town Village 0302、1203、1104、0305 shrub forest land

Gaoan Sanwu Yes 0301 Arbor Construction Land Town Village

0307、1107、1006、 Other forest land, ditch, rural Gaoan Xinxi road land, pond water surface, Yes 1104、1202、0201、 facility agricultural land, Unused Land Town Village orchard, bare land, bamboo 1206、0302、0101 forest land, paddy field

River water surface, other 1101、0307、1104、 woodland, pond water surface, Gaoan Dongqiao rural road land, rural Yes 1006、0702、1206、 Construction Land, Unused Land Town Village homestead, bare land, bamboo forest land, road land, 0302、1003、0201 orchard

Gaofeng Minzhu Yes 0307 Other woodland Construction Land Town Village Landscaping Gaofeng Dajing Bamboo forest land, other Yes 0302、0307、1006、1203 forest land, rural road, field Construction Land Town Village ridge

Gaoan Longjing Yes 0301 Arbor Construction Land Town Village

Gaoan Fuan Yes 1006 Other woodland Construction Land Town Village

Gaoan Xinxi 0307、1006、1104、 Other forest land, rural road, Yes pond water surface, ditch, Construction Land Town Village 1107、1202 facility agricultural land,

Gaoan Dongqiao Bamboo forest land, other Yes 0302、0307、1003 Construction Land Town Village forest land, road land

Table 2-7 DJ-C05 Land Type in Gaofeng Town

Land use classification Code Land use classification Subclass Civil works Involved Involved Involved Land Type (according to the (According to the GB/T 21010- type Town Village LURT ( According to the GB/T 21010- Land Administration Law) 2017) 2017)

Arbor forest land, rural road land, 0307、1006、0307、0302、 Gaofeng Dajing other forest land, bamboo forest Yes Construction Land land, ditch, shrub forest land, Emergency Town Village 1107、0305、1104、0101 pond water surface, Paddy field road Gaoan Sanwu Yes 0301 Arbor Construction Land Town Village

Arbor forest land, bare rock and 0301、1207、0302、1006、 Landscapin Gaofeng Gaofeng gravel land, bamboo forest land, Construction Land, Unused Yes g rural road land, rural homestead, Land Town Village 0702、0101、1101 paddy field, river water surface

Arbor woodland, orchard, 0301、0201、0302、1006、 bamboo woodland, rural road, Gaofeng Minzhu Construction Land, Unused River way Yes river water surface, other 1101、0307、0702、1207、 Land Town Village woodland, rural homestead, bare 1107 rock and gravel land, ditch

Ditch, rural road, bamboo 1107、1006、0302、0305、 Gaofeng Dajing woodland, shrub woodland, other Yes Unused Land woodland, river water surface, Town Village 0307、1101、0301、 arbor woodland

Gaofeng Gaofeng Square No 0810 Park and green space Construction Land Town Village

3 LURT Policies and Compensation Rates

3.1 Polices and Rent for LURT

The LURT will be carried out as per the LURT Framework. According to the consultation with local stakeholders, the 2nd round of land contracting in project area will be expired in June 30, 2028. Therefore, the term of LURT for DJ-C01,DJ-C03,DJ- C04 and DJ-C05 is set by June 30, 20282 with period of 8 years. Once the term of LURT is expired, Dianjiang PMO committed that the LURT will be renewed in terms of PRC’s related land policies and regulations3, especially Land Administration Law and Rural Land Contracting Law of PRC.

The rent of LURT will be determined by farmers and land users through voluntary and equal negotiation. In general, the rent will be on basis of land category, land quality and practice of LURT nearby in project area. According to the practice of LURT in project area, the annual rent of LURT for DJ-C01,DJ-C03,DJ-C04 and DJ-C05 is calculated as follows:

LURT rental shall be calculated in kind (paddy, corn or other kind agreed by both parties) and converted by referring to the market price of the year 2020.4 According to the actual situation, each township (street) guides the LURT price with the basic standard of the net profit. The rental price is determined by the owner and the farmer through voluntary and consultation process.

LURT policy. The construction activities of the sub-projects in Dianjiang County will strictly abide by the "Notice of the General Office of the State Council on Resolutely Stopping the Non-agriculturalization of Cultivated Land", and the construction of all sub-projects will not occupy cultivated land for non-agricultural construction.

The annual rent for Pushun town:

• Paddy land: Calculated based on 250kg rice per mu at market price of 2.4 Yuan/kg in the year of 2020, i.e. annual rent is 600 Yuan/mu per annum （2.4x250）;

• Dry land: Calculated based on 125kg rice per mu at market price of 2.4

2 According to the China’s Rural Land Contracting Law (2019), the term of LURT should not exceed the remaining period of the term of the rural land contract.

3 The article 21 of Rural Land Contracting Law of China (2019) regulates: the contracting term of cultivated land will be extended to another 30 years when current contracting term is expired……

4 The national grain purchase price in each year is issued in April. Therefore, the agreements signed before April 2021 referred the 2020 price. For the payment to be made after April will be based on the price issued in April of the latest year.

Yuan/kg in the year of 2020, i.e. annual rent is 300 Yuan/mu per annum (2.4x125)

The annual rent for Gao’an town:

• Paddy land: The LURT price is 1000 yuan / mu / year, including ground attachments. The contract period is 15 years. • Dry land: The LURT price is 1000 yuan / mu / year, including ground attachments. The contract period is 15 years.

During the negotiation stage, there were 2 options provided for the Involved Persons. The first option is that the compensation in Gao'an Town refers to the compensation standard of the Longxi River Industrial Avenue Project (Dianjiang Jiaotongfa {2019} No. 4). It states that the compensation for ground attachments is 1,000 yuan/year. Hence, the compensation of LURT was fixed in 15,000 yuan in total for 15 years. The second option is that a) For Paddy field, land transfer compensation is based on the rice market price of 2.4 yuan/kg and rice 200kg/mu. Hence, the estimated annual compensation is 480 yuan/mu (2.4x200). b) For dry land, land transfer compensation is based on the rice market price of 2.4 yuan/kg and 50 kg/mu of rice. Hence, the annual compensation is 360 yuan/mu (2.4x150). All the Involved Persons chose the first option, because the compensation standards were higher than the second option from the predictable future grain price.

The annual rent for Gaofeng town: • Paddy land: Calculated based on 208kg rice per mu at market price of 2.4 Yuan/kg in the year of 2020, i.e. annual rent is 500 Yuan/mu per annum （2.4x208）;

• Dry land: Calculated based on 208kg rice per mu at market price of 2.4 Yuan/kg in the year of 2020, i.e. annual rent is 500 Yuan/mu per annum (2.4x208)

The rent for LURT will be paid annually according to the lease term and the LURT agreement.

The standard contract of LURT has been formulated by local government. The template of LURT contract includes:

The content of the LURT contract shall at least include but not limited to: (1) the name of Party A and Party B; (2) the location of the leased land; (3) the area of the leased land; (4) the lease term; (5) the compensation fee; (6) the payment method of the compensation fee; (7) the constraint conditions of non-farming activities after land lease; (8) the number of copies of the agreement; and (9) If there is a restriction on the

acquisition of land.

The construction activities of the project do not damage the farming layer of the cultivated land, and the project schedule is reasonably arranged, which only affects ground attachments and young crops, and does not involve land reclamation costs.

Compensation standard for ground attachments and young crops as followings:

The compensation standard for ground attachments in this plan is established by reference to similar projects being implemented nearby, which has been accepted by local farmers. See table 3-1 for the compensation of ground attachments.

Table 0-1 Compensation Rates of Ground Attachments Item Unit Rate (Yuan/unit)

（1~2cm） number 10

（3~5cm） number 30

（6~10cm） number 35 Fruit tree （11~20 number 55 cm）

>20 cm number 75

（3~5 cm） number 8

（6~10cm） number 15

Miscellaneous tree （11~20 number 20 cm）

>20cm number 25

Grape number 160

Bamboo kg 100

Tomb number 800

3.2 Entitlement Matrix

The entitlement matrix has been established in accordance with the applicable policies in this chapter, as shown in Table 3-2.

If there are any changes in the compensation policy, inflation and other factors during implementation, the implementing agency will guarantee to pay required costs.

Table 0-2 Entitlement Matrix

LURT Details HHs LURT Principles Rates Remarks Agreement

5 villages in Pushun The rent will be determined according to the type and quality town (Renhe of the land and the land leasing in the project area. The annual village, Lishu rent of the project LURT is estimated as follows: community, Xinqiao 1) The term of LURT is 8 years The rental standard of Pushun town is： village, Changbo until June 30, 2028. If the project village, Motan continues to use LURT land, it will • Paddy land: Calculated based on 250kg rice per mu at village, ); be extended and implemented in market price of 2.4 Yuan/kg in the year of 2020, i.e. accordance with the annual rent is 600 Yuan/mu per annum（2.4x250）; 2 villages in Gao’an corresponding laws and 1209 • Dry land: Calculated based on 125kg rice per mu at Rent will be town (Gao’an regulations of PRC. village, Hexing households market price of 2.4 Yuan/kg in the year of 2020, i.e. paid directly to LURT village, ); with 4812 2) Farmers obtain LURT rent annual rent is 300 Yuan/mu per annum (2.4x125) the involved

persons 3) The rent of LURT shall be ： HHs. 4 villages in Gao’an The rental standard of Gao’an town is town (Dongqiao determined through fair • Paddy land: The LURT price is 1000 yuan / mu / year, consultation and negotiation village, Fu’an including ground attachments. The contract period is village, Xinxi between farmers and land users. 15 years. village, Longjing 4) Annual rent for LURT will be • Dry land: The LURT price is 1000 yuan / mu / year, village); paid to involved households including ground attachments. The contract period is 3 villages in 15 years. Gaofeng town The rental standard of Gaofeng town is： (Minzhu village,

LURT Details HHs LURT Principles Rates Remarks Agreement

Dajing village, • Paddy land: Calculated based on 208kg rice per mu at Gaofeng market price of 2.4 Yuan/kg in the year of 2020, i.e. community); annual rent is 500 Yuan/mu per annum（2.4x208）;

• Dry land: Calculated based on 208kg rice per mu at market price of 2.4 Yuan/kg in the year of 2020, i.e. annual rent is 500 Yuan/mu per annum (2.4x208)

Ground Mainly fruit trees, Compensation according to All involved attachments and miscellaneous replacement price or transplanting See Table 3-1. / people young crops trees, etc cost

4 Livelihood Restoration

The LURT objective is to ensure that the HHs receive adequate rent/compensation, and restoration assistance, so that their living standards are improved or at least restored to the pre-project level.

As presented in section 2.2, the land area for LURT are minor, and only land use right is transferred, while land ownership will not be changed, and the rent of LURT that will be negotiated with farmers in a voluntary basis can offset the impacts. Therefore, the main livelihood restoration measures are: 1) cash compensation/rent to be provided according to LURT agreements; 2) payment based on the principle of replacement cost for ground attachments that have to be removed; and 3) giving priority to the HHs in skill training and employment opportunities created by the subproject.

After the expiration of this round of household contracts in 2028, according to the national policy, the villager group will re-adjust and allocate land according to the population of the group.

5 Land use Organizations

5.1 Organizational Structure

The Chongqing PMO is responsible for the implementation and land use of the Project.

In November 2019, Chongqing PMO engaged an external resettlement and social monitoring agency. In accordance with the terms of reference, the experts of the external resettlement monitoring agency, in coordination with Chongqing PMO and IAs of the subprojects of all districts and counties, will monitor land use documents, progress reports and provide training related to land use.

The project management office of Dianjiang County is responsible for coordinating and managing the implementation of the subprojects and land use. Chongqing Xingdian Industry Co., Ltd. is responsible for the implementation of the whole subproject. The land use of DJ-C01,DJ-C03,DJ-C04 and DJ-C05 will be implemented by Pushun town, Zhoujia town, Gao’an town, Gaofeng town and involved villages / communities.

Monitoring and evaluation agency: Chongqing PMO has hired an external monitoring agency (Shanghai Yiji Construction Consultants Co., Ltd.) to be responsible for the monitoring and evaluation of the land use and social impacts of the whole project.

5.2 Institutional Capacity and Training

With the assistance of Chongqing PMO, the resettlement experts/consultants have organized the training for relevant land use and resettlement workers in Chongqing, Liangping, Dianjiang and Changshou District in November 2019. The training contents included:

➢ Internal resettlement/land use monitoring mechanism;

➢ ADB’s resettlement/land use policy and experience;

➢ ADB’s resettlement/land use M&E;

➢ Key points of the draft RP and updating of planning documents, including the changes of land use impacts (typologies and quantities), LURT and compensations rates; and

➢ Key points in resettlement/land use implementation, etc.

➢ Update of resettlement plan/LURT plan

（November 25, 2019）

Figure 5-1 Leaders of Chongqing PMO discuss resettlement / land use issues with staff

Through training, the staff has a better understanding of ADB’s involuntary resettlement policy and resettlement/land use plans and become more capable of handling resettlement/land use affairs.

6 Public Participation and Grievance Redress

6.1 Public Participation

According to the applicable policies and regulations of the PRC, Chongqing Municipality and Dianjiang County as well as ADB, it is very necessary to conduct public participation at the preparation and implementation stages in order to protect the lawful rights and interests of the HHs, reduce grievances and disputes, and realize the land use rights transfer objectives properly by developing sound policies on land use rights transfer, preparing an effective planning document, and organizing implementation properly. Consultation and public participation activities conducted during the project preparation are summarized in the draft RP, while subsequent activities are summarized in the following sections.

1）LURTP preparation During the LURT plan (LURTP) preparation, Dianjiang PMO, concerned townships and villages and design agency disclosed DJ-C01, DJ-C03,DJ-C04 and DJ- C05 information, impacts and applicable LURT policies in diverse ways to the HHs.

From September 2019 to May 2020, Dianjiang PMO and IA conducted a DMS according to the latest design and conducted extensive participation and consultation during the survey. The HHs’ comments and suggestions have been integrated into project design and LURTP.

Figure 6-1 DMS on site（July 31, 2020）

Consultations with villages and farmers were held during land use DMS. The topics included 1) LURT policies, 2) LURT term, and payment of rent, and 3) LURT contract. Comments and feedbacks are integrated into this LURTP.

In 14 involved villages, a total of 20 meetings were organized, around 40 people in each meeting, of which around 22 were women, accounting for 55%, and 780 farmers participated in focus group discussions. According to the consultation, the main conclusions are as follows:

• The farmers expressed their supports to the project as they think the project

will improve the environment surrounding villages a lot which will benefit their health.

• Compared to land acquisition, the farmers opted for LURT as they learned that same approach has been applied for other river rehabilitations projects nearby;

• The farmers agreed that the LURT contract could be signed by village committee with the consent of concerned households, and the term of LURT cannot exceed the 2nd round of land contracting period, the year of June 30, 2028.

• The farmers prefer to pay the rent for LURT year by year, and calculate the rent every year according to the calculation method agreed in the agreement. The rent for LURT will be paid directly to the bank account of the involved farmers by the township finance office.

In addition, Chongqing PMO organized a workshop on how to guarantee the LURT is conducted in compliance with PRC’s laws and regulations and the interest of farmers.

See details in Table 6-1.

Table 6-1 Consultations Conducted during DMS

No. of participants Time Venue Stakeholder/participant Main topic Model Suggestions/findings Total Including woman

May 2020 to Implementation agency, 6 • The farmers expressed their supports to the project October 2020 cadres of Pushun Town and Pushun 180 100 • Compared to land acquisition, the farmers opted for LURT (6 times in representatives of local 1) LURT total) farmers • the LURT contract could be signed by village group with the

policies, 2) consent of concerned households May 2020 to Implementation agency, 10 LURT term, October 2020 cadres of Gao’an Town and Focus group • the term of LURT cannot exceed the 2nd round of land and payment Gao’an 400 230 (7 times in representatives of local discussion contracting period, the year of June 30, 2028 of rent, total) farmers • The farmers prefer to pay the rent for LURT year by year, and 3) LURT calculate the rent every year according to the calculation May 2020 to Implementation agency, 8 contract October 2020 cadres of Gaofeng Town and method agreed in the agreement. The rent for LURT will be paid Gaofeng 200 120 (7 times in representatives of local directly to the bank account of the involved farmers by the total) farmers township finance office.

Policies on Conferen • The State and Chongqign have established a policy system Chongqing PMO, LURT and ce room and management system to oversee LURT. November 25, county/district PMOs, Panel practices in of 16 5 • In recent years, the rapid development of farmers’ professional 2019 natural resources bureaus Chongqing, discussion Chongqin cooperatives has successfully promoted the process of LURT of county and district and IAs Liangping, g PMO in project area. Dianjiang and

No. of participants Time Venue Stakeholder/participant Main topic Model Suggestions/findings Total Including woman

Changshou • The rent is usually paid in cash or in kind, which is equal to the

average net income of local planting crops for two seasons in

one year and is higher that net income from most cropping

activities available to farmers.

2）Implementation stage Although public consultation has been conducted many times, further information disclosure and consultation will be conducted during implementation. See Table 6-2.

In order to ensure the LURT to be conducted in a voluntary nature, the procedures of LURT Framework will be strictly followed. The negotiation for LURT will be witnessed by and validated by township agricultural station and the LURT contract will be recorded in Dianjiang County Agriculture and Rural Affairs Bureau. In addition, the external monitor will monitor the process/progress of LURT.

In the event of any restrictions due to COVID-19 outbreak or other unforeseeable phenomena, virtual meetings (videoconference, telephone calls, wechat) will be carried out. The PMO and IA will strictly adhere to social distancing, wear protective masks/equipment during in-person meetings in line with government protocols and guidelines. Table 6-2 Information Disclosure and Public Participation Plan Item Mode Time Agency Participants

Distributing the Spot Feb 2021 Dianjiang PMO All HHs information brochure distribution Chongqing ADB’s Disclosing the LURTP Feb 2021 ADB PMO and website Dianjiang PMO Dianjiang PMO, Disclosing LURT policies Village Pushun, Gao’an Feb 2021 All HHs and rates board and Gaofeng town Entering into LURT Dianjiang PMO, agreements with the Public Pushun, Gao’an Feb-Mar 2021 All HHs involved villages and meeting and Gaofeng persons town Door-to- Monitoring Whole M&E External M&E Randomly door implementation process agency sampled HHs interview

6.2 Grievance Redress

The complaint mechanism has been established. The project office of Dianjiang County, the project Implementation agency Chongqing Xingdian Industry Co., Ltd. and Pushun, Gao’an and Gaofeng town have arranged the main person in charge to collect and receive the complaints and grievances of farmers regarding land use. See table 6-3 for the name and contact number of the person in charge. Table 6-3 Contact Information of Appeal Accepting Agencies

Agency Contact Tel

Dianjiang PMO Xia Xuefei 15923699993

Agency Contact Tel

Project implementation agency: Chongqing Wei Xiaodong 13594597978 Xingdian Industrial Co., Ltd

People's Government of Pushun town Cheng Shichuan 13896768789

People's Government of Gaofeng town Zou Xianwen 02374566800

People's Government of Gao’an town Xiang Yang 13996890688

7 LURT Cost

7.1 Estimated Budget

According to the prices in 2020, the LURT cost of is estimated at 7,485,644.745 yuan, including 6,434,506.8 yuan (85.96% of the total cost) for collective LURT5 , 74,749.5 yuan (1.00% of the total cost) for compensation for ground attachments, and 976,388.445 yuan (13.04% of the total cost) for other expenses (including management fee and unforeseen fees) . See Table 7-1.

Table 7-1 Estimated Budget

5 The term of LURT is 8 years.

Cost No Item Unit Rate Quantity Percentage (Yuan)

DJ-C01 DJ-C03 DJ-C04 DJ-C05 DJ-C01 DJ-C03 DJ-C04 DJ-C05 Subtotal DJ-C01 DJ-C03 DJ-C04 DJ-C05 Subtotal

Yuan/unit Yuan/unit Yuan/unit Yuan/unit yuan yuan yuan yuan yuan

LURT 1 Rent

Padd mu 4800 8000 8000 4000 21.35 82.78 198.58 93.44 396.15 102480 662240 1588640 373760 2727120 y

Dry mu 2400 8000 8000 4000 67.33 46.1 52.03 12.8 178.26 161596.8 368800 416240 51200 997836.8 Land

Young mu 0 0 0 500 88.68 128.88 250.61 106.24 574.41 0 0 0 53120 53120 crops

Subtotal 0 0 0 0 3778076.8 50.47%

payment 2 in

Gao'an

town

Cost No Item Unit Rate Quantity Percentage (Yuan)

DJ-C01 DJ-C03 DJ-C04 DJ-C05 DJ-C01 DJ-C03 DJ-C04 DJ-C05 Subtotal DJ-C01 DJ-C03 DJ-C04 DJ-C05 Subtotal

Yuan/unit Yuan/unit Yuan/unit Yuan/unit yuan yuan yuan yuan yuan

Padd mu 7000 7000 82.78 198.58 281.36 579460 1390060 1969520 y

Dry mu 7000 7000 46.1 52.03 98.13 322700 364210 686910 Land

Subtotal 2656430 35.49%

Ground

3 attachm

ents

Fruit tree 1-2cm No. 10 0 0 10 24 0 0 0 24 240 0 0 0 240

3-5cm No. 30 0 0 30 55 55 290 0 400 1650 0 0 0 1650

6-10cm No. 35 0 0 45 30 18 266 0 314 1050 0 0 0 1050

11- No. 55 0 0 55 0 0 61 0 61 0 0 0 0 0 20cm

>20 cm No. 70 0 0 70 15 0 22 0 37 1050 0 0 0 1050

Cost No Item Unit Rate Quantity Percentage (Yuan)

DJ-C01 DJ-C03 DJ-C04 DJ-C05 DJ-C01 DJ-C03 DJ-C04 DJ-C05 Subtotal DJ-C01 DJ-C03 DJ-C04 DJ-C05 Subtotal

Yuan/unit Yuan/unit Yuan/unit Yuan/unit yuan yuan yuan yuan yuan

Miscella

neous 3-5 cm No. 8 0 0 8 89 0 527 0 616 712 0 0 0 712

tree

6-10cm No. 15 0 0 15 530 55 479 0 1064 7950 0 0 0 7950

11- No. 20 0 0 20 514 6 504 0 1024 10280 0 0 0 10280 20cm

>20cm No. 25 0 0 25 729 0 42 0 771 18225 0 0 0 18225

Grape No. 25 0 0 25 0 0 0 0 0 0 0 0 0 0

Bamboo kg 0.5 0 0 0.5 60785 0 0 0 60785 30392.5 0 0 0 30392.5

Tomb No. 800 0 0 800 4 0 8 0 12 3200 0 0 0 3200

74749.5 0 0 0 74749.5 1.00%

Subtotal 74749.5 0 0 0 6509256.3 （1+2+3）

Manage 4 yuan 5% 5% 5% 5% 3737.475 0 0 0 325462.815 4.35% ment fee

Cost No Item Unit Rate Quantity Percentage (Yuan)

DJ-C01 DJ-C03 DJ-C04 DJ-C05 DJ-C01 DJ-C03 DJ-C04 DJ-C05 Subtotal DJ-C01 DJ-C03 DJ-C04 DJ-C05 Subtotal

Yuan/unit Yuan/unit Yuan/unit Yuan/unit yuan yuan yuan yuan yuan

Conting 5 yuan 10% 10% 10% 10% 7474.95 0 0 0 650925.63 8.70% encies

Total 85961.925 0 0 0 7485644.745 100.00%

7.2 Annual Disbursement Plan

DJ-C01, DJ-C03, DJ-C04 and DJ-C05 will be financed by local counterpart funds. According to the implementation progress of the project, the rent for the first year, the fees for young crops and the compensation for ground attachments shall be paid first, and the rent for land shall be paid annually in accordance with the agreements. Gao’an town agreed with villagers to pay rental until June 2035, and rent of additional 7 years has been included in the LURTP (follow-up payment of other towns will be determined after agreements will villagers during implementation). See table 7-2 for the details of the project disbursement plan. Table 7-2 Annual Disbursement Plan

Year Annual cost Remarks

(Yuan)

Subject to the actual time of signing the October 2020 to June 2021 682512.465 contract

June 2021 to June 2022 535462.54

June 2022 to June 2023 535462.54

June 2023 to June 2024 535462.54

June 2024 to June 2025 535462.54

June 2025 to June 2026 535462.54

June 2026 to June 2027 535462.54

June 2027 to June 2028 535462.54

June 2028 to June 2029 436413.5

June 2029 to June 2030 436413.5

June 2030 to June 2031 436413.5

June 2031 to June 2032 436413.5

June 2032 to June 2033 436413.5

June 2033 to June 2034 436413.5

June 2034 to June 2035 436413.5

Total 7485644.745

7.3 Fund Management

The allocation of funds for the project will follow the following principles: all costs related to the project land will be included in the general estimate of the project. Compensation for the ground attachments and the first year rent of LURT shall be paid before land use.

The expenditure of LURT funds must be strictly in accordance with the relevant laws and regulations of the state, and shall not be less than standard determined in the LURT plan.

In order to ensure that the funds can be timely and fully in place, and to ensure the recovery of the production, living and income level of the involved farmers, the following measures must be taken:

• All costs related to LURT will be included in the total budget of the project;

• In order to ensure the smooth implementation of LURT, financial and supervision organizations at all levels will be established to ensure that all funds are allocated in place on time;

• The budget is the estimation of cost. Due to the actual changes within the scope of the project, the modification of compensation policy, inflation and other factors, the cost may increase, but the implementing agency will guarantee to pay required costs. The budget takes into account unforeseen costs and uses and modifies them as needed.

In addition, the finance and audit departments of Dianjiang county have the right to monitor and audit the use of funds. In the process of external monitoring, the external monitoring agency shall conduct special tracking and monitoring on the payment of funds for the involved households.

8 Implementation and M&E

8.1 Implementation

In order to connect the land use schedule with the project construction schedule, the project land information disclosure and consultation activities have been carried out since May 2020, the LURT will start in 2021. See table 8-1 for detailed implementation schedule.

Table 8-1 LURT Signing and Start of Construction

Contract Involved villages Signing LURT Agreements Start construction

Renhe Feb-Mar 2021 April 2021

Lishu Feb-Mar 2021 April 2021

DJ-C01 Xinqiao Feb-Mar 2021 April 2021

Changbo Feb-Mar 2021 April 2021

Motan Feb-Mar 2021 April 2021

Gao’an Feb-Mar 2021 April 2021 DJ-C03 Hexing Feb-Mar 2021 April 2021

Dongqiao Feb-Mar 2021 April 2021

Fu’an Feb-Mar 2021 April 2021 DJ-C04 Xinxi Feb-Mar 2021 April 2021

Longjing Feb-Mar 2021 April 2021

Minzhu Feb-Mar 2021 April 2021

DJ-C05 Dajing Feb-Mar 2021 April 2021

Gaofeng Feb-Mar 2021 April 2021

8.2 Monitoring and Evaluation (M&E)

DJ-C01, DJ-C03, DJ-C04 and DJ-C05 will be subject to internal and external monitoring.

1）Internal Monitoring

Chongqing PMO and Dianjiang PMO will implement an internal monitoring to check the land use activities, establish a basic database, monitor all households, and conduct internal supervision and inspection on the whole process of preparation and implementation.

Chongqing PMO and Dianjiang PMO will submit internal semi-annual monitoring reports together with the progress reports to ADB. The reports will tabulate the statistics of the past six months and reflect the progress by comparing the actual and planned LURT and the use of compensation funds.

2）External Monitoring

Chongqing PMO has hired Shanghai Yiji Construction Consultants Co., Ltd. to carry out the external monitoring of land use for this project.

The external monitoring agency will be present during the key negotiation of LURT (such as signing of LURT agreement and negotiation of LURT rent), and record the negotiation and processing process/progress of LURT.

On this basis, the external monitoring and evaluation agency will submit the monitoring report and evaluation report to ADB every six months (as part of overall resettlement and social monitoring report).

The routine monitoring report shall at least include the following contents: 1) the monitoring object of this report; 2) the progress of LURT work; 3) the main findings of monitoring agency; 4) the main problems existing; 5) the basic evaluation opinions and suggestions of external monitoring.

According to the current project progress and the implementation of land use, the submission of external monitoring report including baseline and monitoring information on DJ-C01, DJ-C03, DJ-C04 and DJ-C05 is shown in table 8-2.

Table 8-1 External M&E of DJ-C01, DJ-C03, DJ-C04 and DJ-C05 No Report Period Date of submission

external monitoring Up to December 2020 1 report, including March 2021 baseline

external monitoring Jan - June 2021 August 2021 report

external monitoring July - December 2021 2 March 2022 report

external monitoring January – June 2022 3 August 2022 report

No Report Period Date of submission

external monitoring July – December 2022 4 March 2023 report

5 Completion report August 2023

In the event of any restrictions due to COVID-19 outbreak or other unforeseeable phenomena, virtual meetings (videoconference, telephone calls, wechat) will be carried out during monitoring. The PMO and IA will strictly adhere to social distancing, wear protective masks/equipment during in-person meetings in line with government protocols and guidelines.

Appendix

Appendix 1 Office of people's Government of Dianjiang County

Guiding Opinions on Standardizing Rural LURT and Strengthening the Prevention of Transfer Risk (Trial)

With the increasing scale of LURT, the efficiency of land resource use has been significantly improved, which has effectively promoted the development of modern agriculture and the increase of farmers' income. However, the irregular LURT behavior and the violation of the transfer subject often lead to the damage of farmers' rights and interests. The risk of rural LURT has become a hidden danger restricting the development of rural economy. In order to guide the standardized and orderly transfer of rural land, further improve the management and service of LURT, effectively prevent the risk of the transfer of rural land management rights, and effectively protect the rights and interests of collective economic organizations and farmers, according to the deployment of the notice on adding key reform and innovation items in 2017 "five batch" key projects (djwb [2017] No. 107) issued by the county Party committee office and the county government office Requirements, combined with the actual situation of our county, put forward the following opinions.

1、 General requirements （1） Guiding ideology

We must fully implement the nineteen spirit of the party and adhere to the guidance of Xi Jinping's new socialist ideology with Chinese characteristics. We must accurately grasp the arrangements for the central and city party committees and county committees to deepen China's rural reform, adhere to the goal of serving the city and the big farmers, consolidate and improve the basic operation system of the rural villages, standardize and guide the orderly transfer of rural land management rights, and actively cultivate new farmers. The main body of business operation can stimulate the vitality of Rural Revitalization and provide strong support for promoting the development of modern agriculture.

（2） Basic principles

——Adhere to clear property rights and diversified operation. We will steadily promote the "separation of three rights" of land, clarify the ownership of rural collective land, stabilize the contracting rights of farmers, and give full play to rural land management rights. On the basis of family contracted operation, we will promote the common development of family operation, collective operation, cooperative operation, enterprise operation and other diversified modes of operation.

——Insist on voluntary transfer according to law. The transfer of rural land management rights should be carried out in accordance with the laws and regulations with farmers as the main body. It is not allowed to violate the wishes of contracted 61

farmers, damage their rights and interests, change their land use without authorization, or damage the comprehensive agricultural production capacity and agricultural ecological environment.

——Adhere to the guidance of the government and the market. Actively cultivate and improve the rural LURT market, give full play to the decisive role of the market in resource allocation. Strengthen the government's service supervision and policy incentives, and give full play to its guiding and regulatory role.

——Adhere to appropriate scale, agricultural land and agriculture. The moderate scale operation and development of agriculture should adapt to the urbanization process and the scale of rural labor transfer, the progress of agricultural science and technology and the improvement of production means, and the level of agricultural socialized service, so as to ensure the effective supply of agricultural land, agriculture and food.

2、 Standardize the transfer procedure

According to the unified procedure of "Consultation - Application - Site selection - Negotiation - Platform transaction - Contract signing - Record".

（1） Consultation. The owner can consult with the county agriculture committee, the county forestry bureau, the County Tourism Bureau, the county land and Housing Administration Bureau, the township (street) agricultural service center and other relevant units on issues such as industrial planning, policy support, transfer scale, transfer price and transfer location.

（2） Application. The transfer owner shall actively apply to the township (street) or village (residence) or villagers' group.

（3） Site selection. According to the operation category of the owner, the relevant departments at the county level and the township (street) Agricultural Service Center shall guide the site selection of suitable land.

（4） Negotiation. Hold a villagers' representative meeting, under the guidance of the relevant departments at the county level and the rural LURT service center of the township (street), the two sides of LURT supply and demand shall negotiate the location, area, term, purpose and price of the transferred land in accordance with the principle of legal, voluntary, paid and equal consultation.

（ 5 ） Platform transactions. In collaboration with the land and resources department, relying on the existing county, township and village three-level LURT platform framework, activate the online transfer and transaction market, and guide all LURT input information system in the county.

（6） Sign the contract. Under the guidance of the Township People's government and the sub district office, the LURT contract shall be signed and sealed by the 62

Township People's government and the sub district office. If the transfer area is large, it can be notarized on the basis of both parties' willingness.

（7） Filing. LURT and industrial and commercial capital lease of agricultural land shall be filed in towns (streets), of which, those with LURT of more than 50 mu and industrial and commercial capital lease of more than 300 mu shall be reported to the County Agricultural Committee for filing, and those with LURT of more than 1000 mu shall be reported to the Municipal Agricultural Committee for filing. If the responsibilities of land, industry and Commerce and other departments are involved, they shall also be reported to the relevant departments for examination and filing.

3、 Strengthen LURT guidance

（1） Scale of LURT. In principle, the planting scale is about 100 mu for vegetables, 200 mu for traditional Chinese medicine and fruits (excluding citrus), and 300 mu for grain, oil, citrus and forage cattle.

（2） LURT price. The price shall be calculated in kind (paddy, corn or other kind agreed by both parties) and converted by referring to the market price of the current year. According to the actual situation, each township (street) guides the LURT price with the basic standard of the net profit slightly lower than the field crops. The transfer price is determined by the owner and the farmer through independent consultation.

（3） LURT contract. According to the content and format of the model provided by Chongqing Agricultural Committee, in combination with the actual situation of our county and the type and use of the transferred land, the corresponding agreed terms shall be supplemented, and a formal written contract shall be concluded to clarify the rights, obligations and liabilities for breach of contract of both parties. If the LURT contract signed before the promulgation of this opinion (for Trial Implementation) does not conform to the provisions of laws and policies, it shall be signed again; if it is not perfect, it shall be supplemented and standardized gradually; if it is not signed, it shall be signed in time according to the new contract format.

4、 Strengthen transfer supervision

（1） Strengthen the supervision of transfer area. In the process of LURT, the red line of LURT should be strictly implemented. First, within the scope of urban planning area and control area, it is forbidden to transfer land; second, within the forbidden area, it is forbidden to transfer land for livestock and poultry breeding; third, it is forbidden to build buildings, engage in large-scale livestock and poultry breeding, etc. all towns (streets) should strictly follow the requirements of the red line to check the transfer situation and prevent the permanent basic farmland from changing its use.

（2） Strengthen the supervision of transfer contract. The township (street) fulfills the main responsibility of LURT supervision, and the LURT service center records the transfer project into the electronic file for registration according to the requirements of 63

"one transfer and one record". The projects with a land conversion period of more than 500 mu and a transfer period of more than 5 years are included in the key supervision. Relevant departments at the county level shall strengthen supervision and carry out supervision and inspection every year, and order the violators to rectify within a time limit.

（3） Strengthen the supervision of transfer credit. We will improve the credit supervision system, and disqualify business units that cheat or refuse to accept inspection from enjoying government agricultural support projects and financial subsidies.

5、 Improve the risk prevention system

（1）Reasonably control the scale of facilities agricultural land in the transferred land, consciously implement the relevant provisions of the notice on further improving the management of facilities agricultural land to support the healthy development of facilities agriculture (ygtfg [2014] No. 799) issued by the Municipal Bureau of land and housing administration and the Municipal Commission of agriculture, and pay the land reclamation deposit according to the standard.

（2）Expand the scope of policy agricultural insurance

First, expand the coverage of policy based agricultural insurance. We should further promote the policy oriented agricultural insurance that has been carried out, including 17 types of insurance, including rice, rice income, hybrid rice, corn, rape, orange, sericulture, pig, pig income, cattle, cows, layers, sheep, geese, fish, public welfare forest and commercial forest, enhance the ability of farmers to avoid natural risks and market risks, and improve the rural social security system. Second, explore and expand the right type of insurance. In combination with the industrial development of the transferred land, explore the road insurance types such as fruits and vegetables and traditional Chinese medicine, improve the anti risk ability of the land inflow party, reduce the risk of land circulation default, protect the legitimate rights and interests of the parties involved in land circulation, and maintain social order and stability.

（3）Explore the risk prevention mechanism of LURT

The first is to explore and carry out the pilot project of rural LURT performance guarantee insurance, adopt the way of "government + owners + farmers", introduce the insurance mechanism, adhere to the principle of voluntary insurance, and guarantee the rental income of farmers' LURT through the insurance system; the second is to implement the LURT risk deposit system, collect the LURT risk deposit for the transfer behavior, in principle, according to the transfer land One year's rent collection of land, that is, when the owner transfers the land, the deposit shall be charged one by one, and the deposit shall be managed uniformly by the special financial account set up by the township (street), and the specific matters shall be

regulated by the detailed rules formulated by the township (Street). When the lease contract expires and there is no breach of contract, the township (street) shall be returned in full in time; thirdly, explore the asset mortgage guarantee, and the owner shall pay the same amount as the enterprise or individual In case of any breach of contract, the collective economic organization shall use the proceeds from the disposal of the property to pay the farmers' fees for LURT, and the remaining part shall be returned to the owners. LURT performance guarantee insurance, LURT risk margin and asset mortgage guarantee can be implemented by one of the owners.

6、 Strengthen comprehensive guarantee

（1） Strengthen organization guarantee. The issue of rural land concerns the vital interests of the majority of farmers and the overall situation. Each township (street) should take the standardized guidance of the transfer of rural land management rights and the development of moderate scale operation as an important task to deepen the agricultural and rural reform. It is necessary to tighten the responsibility of compaction, strengthen organizational leadership, strictly follow policies and laws and regulations, and strengthen overall coordination, supervision and inspection. We should further implement the work guarantee measures, adhere to the principle of starting from the reality, strengthen the investigation and research, strengthen the policy propaganda, improve the ideological understanding of cadres at all levels, firmly establish the concept of policy and the awareness of the rule of law, and create a good environment for reform and development. Relevant departments at the county level should establish a system of work guidance, inspection and supervision, improve the working mechanism of joint management, emphasize coordination and cooperation, jointly regulate and guide the orderly transfer of rural land management rights, and promote the healthy development of appropriate scale operation of agriculture.

（2） We will strengthen financial support. County Finance plans to integrate the funds, mainly used for rural LURT performance guarantee insurance subsidies, the implementation of special funds. The subsidy proportion of financial funds to premium is 60%, which provides a strong support for the pilot project of LURT performance guarantee insurance.

（ 3 ） We will strengthen support policies. Agricultural departments should integrate projects and funds, focus on supporting and supporting the construction of large-scale agricultural industrial bases, and increase the expansion and increment of agricultural policy insurance in combination with the actual situation of LURT; county land and agriculture departments should provide production facilities, auxiliary facilities and supporting facilities for livestock and poultry houses, factory crop cultivation or aquaculture directly used by the transferee of LURT for business cultivation According to the management of agricultural land, the land for use does not need to go through the approval procedures for the conversion of agricultural land, but only needs to go

through the filing of facilities for agricultural land; the power and water conservancy departments at the county level should regard the water for the development of production as the water for agricultural power; the financial departments should improve the rural credit system, promote the realization of land management right mortgage loans, and focus on the large-scale industrialized leading enterprises and large-scale planting and breeding enterprises Households, cooperatives, family farms, etc. should be included in the scope of support and services.

（4） We will strengthen the provision of legal services. Establish and improve the legal aid service mechanism, establish a legal service team, provide consultation and services on the obligation agreement, contract signing and related legal issues of LURT, and help farmers and owners to improve the relevant legal procedures of LURT with the Township People's government and the sub district office as the leading role. Improve the mediation and arbitration system of rural LURT disputes, pay attention to the construction of grass-roots mediation and arbitration team, increase training and publicity, and give full play to the role of mediation and arbitration institutions.

Appendix：1. Lease contract of rural land management right of Dianjiang County, Chongqing

2. Implementation plan of rural LURT performance guarantee insurance

Appendix 2 Case of LURT agreement in the project area

Case1

Land lease agreement signed in May 2020

Party A: The second villager group of

Shuanghekou village, Xinmin Town, Dianjiang

County

Party B: People's Government of Xinmin Town,

Dianjiang County

In order to support the comprehensive

environmental improvement and ecological

restoration project of Longxi River (Dianjiang

section) loaned by ADB, Party A voluntarily

agreed to lease part of the land located in

shangheba to Party B. The parties agree as

follows voluntarily.

1．Location of leased land

Changmaotu to tongziwan plot, the second

village group, Shuanghekou village, Xinmin

Town.

2．Rented land area

The total area is 11.76 mu.

3．Lease term

From May 20, 2020 to the start of obtaining

the plot.

4．Compensation expenses

Party B shall provide subsidies to Party A by

converting 800 Jin of rice into currency per mu

per year, and the unit price of converting rice into

currency shall be implemented according to the

national purchase price in April of that year.

5．Payment method of compensation

Before May 20 of each year, Party B shall

pay the subsidy fee of the current year to Party

A in lump sum (i.e. pay first and then use the

land), and Party A shall distribute the subsidy fee

to relevant farmers within 5 days after receiving

it.

6 ． After the land is rented, it shall not be

cultivated. Party B shall make up the

compensation for green crops at a lump sum of

1100 yuan / mu. When Party B uses the land for

construction, it will not make any compensation.

Party A and the relevant farmers shall eliminate

the compensation by themselves. If the construction loss is caused, Party A shall compensate for the loss.

7. This agreement is made in quadruplicate

and shall come into force upon signature of both

parties.

8. This agreement will automatically expire

when the land acquisition of the plot starts

Party A： Shuanghekou village, Xinmin Town,

Dianjiang County

Party B：People's Government of Xinmin Town,

Dianjiang County

Case 2

Land lease agreement signed in May 2020

Party A: the fourth villager group of

Shuanghekou village, Xinmin Town, Dianjiang

County

Party B: People's Government of Xinmin Town,

Dianjiang County

In order to support the comprehensive

environmental improvement and ecological

restoration project of Longxi River (Dianjiang

section) loaned by ADB, Party A voluntarily

agreed to lease part of the land located in

shangheba to Party B. The parties agree as

follows voluntarily.

1. Location of leased land

Guanyinge to kujing plot, the fourth village

group, Shuanghekou village, Xinmin Town.

2. Leased land area

The total area is 15.35 mu.

3. Lease term

From May 20, 2020 to the start of obtaining

the plot.

4. Compensation expenses

Party B shall provide subsidies to Party A by

converting 800 Jin of rice into currency per mu

per year, and the unit price of converting rice into

currency shall be implemented according to the

national purchase price in April of that year.

5. Payment method of compensation fee

Before May 20 of each year, Party B shall pay

the subsidy fee of the current year to Party A in

lump sum (i.e. pay first and then use the land),

and Party A shall distribute the subsidy fee to

relevant farmers within 5 days after receiving it.

6. After the land is rented, it is not allowed to

cultivate. Party B shall make a one-time

compensation for green crops at the rate of 1100

yuan / mu. When Party B uses the land for

construction, it will not make any compensation.

Party A and the relevant farmers shall eliminate

the compensation by themselves. If the

construction loss is caused, Party A shall make

compensation for the loss.

7. This agreement is made in quadruplicate

and shall come into force upon signature of both

parties.

8. This agreement will automatically expire

when the land acquisition of the plot starts

Party A: Residents committee of Xinmin

community, Xinmin Town, Dianjiang County

Party B：People's Government of Xinmin Town,

Dianjiang County

Case 3

Land lease agreement signed in May 2020

Party A: the third village group of Xinmin

community, Xinmin Town, Dianjiang County

Party B: People's Government of Xinmin Town,

Dianjiang County

In order to support the comprehensive

environmental improvement and ecological

restoration project of Longxi River (Dianjiang

section) loaned by ADB, Party A voluntarily

agreed to lease part of the land located in

shangheba to Party B. The parties agree as

follows voluntarily.

1. Location of leased land

Shangheba plot, the fourth villagers' group,

Xinmin community, Xinmin Town.

2. Leased land area

The total area is 10.33 mu.

3. Lease term

From May 20, 2020 to the start of obtaining

the plot.

4. Compensation expenses

Party B shall provide subsidies to Party A by

converting 800 Jin of rice into currency per mu

per year, and the unit price of converting rice into

currency shall be implemented according to the

national purchase price in April of that year.

5. Payment method of compensation fee

Before May 20 of each year, Party B shall pay

the subsidy fee of the current year to Party A in

lump sum (i.e. pay first and then use the land),

and Party A shall distribute the subsidy fee to

relevant farmers within 5 days after receiving it.

6. After the land is rented, it is not allowed to

cultivate. Party B shall make a one-time

compensation for green crops at the rate of 1100

yuan / mu. When Party B uses the land for

construction, it will not make any compensation.

Party A and the relevant farmers shall eliminate

the compensation by themselves. If the

construction loss is caused, Party A shall make

compensation for the loss.

7. This agreement is made in quadruplicate and

shall come into force upon signature of both

parties.

8. This agreement will automatically expire when

the land acquisition starts

Party A:Residents committee of Xinmin

community, Xinmin Town, Dianjiang County

Party B：People's Government of Xinmin Town,

Dianjiang County

Case 4

Land lease agreement signed in May 2020

Party A: the eighth village group, Shuanghekou

village, Xinmin Town, Dianjiang County

Party B: People's Government of Xinmin Town,

Dianjiang County

In order to support the comprehensive

environmental improvement and ecological

restoration project of Longxi River (Dianjiang

section) loaned by ADB, Party A voluntarily

agreed to lease part of the land located in

shangheba to Party B. The parties agree as

follows voluntarily.

1. Location of leased land

The plot from banbanqiao to Shuanghe

headquarters of the eighth villagers' group,

Shuanghekou village, Xinmin Town.

2. Leased land area

The total area is 14.41 mu.

3. Lease term

From May 20, 2020 to the start of obtaining

the plot.

4. Compensation expenses

Party B shall provide subsidies to Party A by

converting 800 Jin of rice into currency per mu

per year, and the unit price of converting rice into

currency shall be implemented according to the

national purchase price in April of that year.

5. Payment method of compensation fee

Before May 20 of each year, Party B shall pay

the subsidy fee of the current year to Party A in

lump sum (i.e. pay first and then use the land),

and Party A shall distribute the subsidy fee to

relevant farmers within 5 days after receiving it.

6. After the land is rented, it is not allowed to

cultivate. Party B shall make a one-time

compensation for green crops at the rate of 1100

yuan / mu. When Party B uses the land for

construction, it will not make any compensation.

Party A and the relevant farmers shall eliminate

the compensation by themselves. If the

construction loss is caused, Party A shall make

compensation for the loss.

7. This agreement is made in quadruplicate and

shall come into force upon signature of both parties.

8. This agreement will automatically expire when

the land acquisition starts

Party A: Shuanghekou village, Xinmin Town,

Dianjiang County

Party B: People's Government of Xinmin Town,

Dianjiang County

Case 5

Land lease agreement signed in May 2020

Party A: the fourth villager group of Xinmin

community, Xinmin Town, Dianjiang County

Party B: People's Government of Xinmin

Town, Dianjiang County

In order to support the comprehensive

environmental improvement and ecological

restoration project of Longxi River (Dianjiang

section) loaned by ADB, Party A voluntarily

agreed to lease part of the land located in

shangheba to Party B. The parties agree as

follows voluntarily.

1. Location of leased land

Shangheba plot, the fourth villagers'

group, Xinmin community, Xinmin Town.

2. Leased land area

The total area is 12.94 mu.

3. Lease term

From May 20, 2020 to the start of

obtaining the plot.

4. Compensation expenses

Party B shall provide subsidies to Party A

by converting 800 Jin of rice into currency per

mu per year, and the unit price of converting

rice into currency shall be implemented

according to the national purchase price in

April of that year.

5. Payment method of compensation fee

Before May 20 of each year, Party B shall pay

the subsidy fee of the current year to Party A

in lump sum (i.e. pay first and then use the

land), and Party A shall distribute the subsidy

fee to relevant farmers within 5 days after

receiving it.

6. After the land is rented, it is not allowed to

cultivate. Party B shall make a one-time

compensation for green crops at the rate of

1100 yuan / mu. When Party B uses the land

for construction, it will not make any

compensation. Party A and the relevant

farmers shall eliminate the compensation by

themselves. If the construction loss is caused,

Party A shall make compensation for the loss.

7. This agreement is made in quadruplicate

and shall come into force upon signature of

both parties.

8. This agreement will automatically expire

when the land acquisition starts

Party A: Committee of Xinmin community,

Xinmin Town, Dianjiang County

Party B ： People's Government of Xinmin

Town, Dianjiang County

Appendix 3 Letter from Dianjiang County Land Resources and Housing Administration

Dianjiang County Land Resources and Housing Administration issued a Dianjiang County Land Resources and Housing letter confirming: 1) Construction land for emergency refuge square 2) New Administration ecological reservoir bank 7.5km Sanhe wetland restoration project original Dian Guotufangguan Han (2018) No. 67 river course and reservoir part 3) Longxi River embankment construction 4)

Emergency Bridge construction does not involve new construction land, as Dianjiang County Land Resources and Housing Administration Regarding the comprehensive environmental

improvement and hygiene of the Longxi River Basin

(Dianjiang Section) state protection demonstration project

does not involve new construction land

Chongqing Xingdian Industrial Co., Ltd.:

Your company’s "Letter on Whether the Longxi River

Basin (Dianjiang Section) Comprehensive Environmental

Remediation and Ecological Protection Demonstration

Project Involves New Construction Land" (Xingdian Industrial

Letter [2018] No. 2) has received that the construction

content of the project is Build 38.51km dikes on both banks

of the Longxi River, 1.69km dikes on tributaries, one dam for

Sanhe Reservoir renovated, 7.5km new ecological reservoir

bank (using the original river and the land in the reservoir),

two new emergency squares, totaling 6 thousand M2 (the

emergency plaza uses state-owned stock land) to build a

riverside ecological zone. A total of 80 mu (green ecological

land), 5 new emergency bridges across the river (the bridge

uses the original river and the land in the water bank), the

construction of a 40.2km long embankment road, of which a

3-meter wide sidewalk 24.65km, the 6-meter- wide roadway

is 15.55km, which does not involve new construction land. shown in the figure below. Dianjiang County Land Resources and Housing

Administration

March 6, 2018

Appendix 4 Land Lease Agreement of the First Villager Group of Minzhu Village

Land lease agreement

Party A: Group No.1 of Minzhu Village, Gaofeng

Village, Dianjiang County

Party B: People's Government of Gaofeng Town,

Dianjiang County

In order to support the Longxi River (Dianjiang

Section) Environmental Remediation and

Ecological Rehabilitation Project of the Gaofeng

Town River Section of the ADB loan project. After

Party A convened a villager representative

meeting, it agreed to lease part of the land from

Yujiaqiao to Xiaoqiaoba to Party B for the

comprehensive treatment of the river section of

Gaofeng Town Construction. After mutual

consultation, both parties have reached the

following agreement.

1. Location of leased land: The fourth villager

group of Minzhu Village, Gaofeng Town

2. The area of leased land: a total area of 60.86

mu, subject to the location of the land provided by

Party A, and Party A shall be responsible for the

actual allocation to relevant farmers.

3. Lease period: from June 1, 2021 to the end of

the land acquisition.

4. Compensation fee: Party B will subsidize Party

A at 500 yuan per mu per year.

5. Compensation payment method: Party B shall

pay the subsidy of the year to Party A in full before

July 1 of each year (that is, pay first and then use

the land), and Party A shall distribute the subsidy

to relevant farmers within 5 days after receiving

the subsidy.

6. The land is not allowed to be cultivated after it is

rented. Party B will compensate the young crops at

a lump-sum payment of 500 yuan/mu. Party B will

not make any compensation when the land is used

for construction. Party A and related farmers will

exclude it by themselves. If construction losses are

caused, Party A shall compensate for the losses.

7. This agreement is in quadruplicate, which will

become effective after both parties sign it. Each

party will hold two copies, and Murakami will keep

one copy. One copy will be attached to the

account.

8. This agreement will automatically become

invalid when the land acquisition starts.

Party A: Group No.1 of Minzhu Village, Gaofeng

Village, Dianjiang County

Party B: People's Government of Gaofeng Town,

Dianjiang County

January 27, 2021