RRP Resettlement Plan
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Resettlement Due Diligence Report February 2020 PRC: Henan Sustainable Livestock Farming and Product Safety Demonstration Project Prepared by Henan Provincial Government for the Asian Development Bank. This resettlement due diligence report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. 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. Loan 3296-PRC: Henan Sustainable Livestock Farming and Product Safety Demonstration Project Due Diligence Report of Land Acquisition and Land use-right transfer Feb 2020 CURRENCY EQUIVALENTS (As of 28 Feb 2020) Currency unit – Yuan (CNY) CNY 1.00 =$0.143 $ 1.00 = CNY 7.007 ABBREVIATION AAOV Average Annual Output Value AH Affected Household AP Affected Person DDR Due Diligence Review FSR Feasibility Study Report GRM Grievance Redress Mechanism HH Household LAR Land Acquisition and Resettlement M&E Monitoring and Evaluation PMO Municipal Project Management Office NGO Non-Government Organization PAP Project Affected Persons PDRC Provincial Development and Reform Commission PCG Project Coordinating Group PIU Project Implementing Unit PMO Project Management Office PPEs Project Participating Enterprises PRC People’s Republic of China RP Resettlement Plan RIB Resettlement Information Booklet SOE State Owned Enterprise SPS Safeguard Policy Statement NOTES (i) The fiscal year of the Government of the People’s Republic of China and its agencies ends on 31 December. (ii) In this report, " $ " refers to US dollars and “¥” refers to CNY or Yuan (iii) 1 hectare=15 mu Contents 1 Background ........................................................................................................................................... 5 A. Overview of the Project .......................................................................................................... 5 B. Overview of the Project Progress ....................................................................................... 5 C. Socio-economic Background ............................................................................................... 6 2 Due Diligence Review of the Land Acquisition of Muyuan Meat Food ................................................. 8 A. Purpose of this Due Diligence.............................................................................................. 8 B. Methodology ............................................................................................................................. 8 C. resettlement impacts .............................................................................................................. 8 D. Land acquisition process .................................................................................................... 10 E. Resettlement policy and Resettlement measures for the APs .................................. 11 F. Information disclosure, participation and Grievance Redress Mechanism ........... 13 G. Follow up survey and interview ......................................................................................... 13 H. Conclusions for Land Acquisition of Muyuan Meat Food .......................................... 15 3 Due Diligence Review of the Land use-right transfer of Sheqi Muyuan and Yongxin ......................... 16 A. Purpose of this Due Diligence............................................................................................ 16 B. Method ...................................................................................................................................... 16 C. Legal Basis and ADB Policy ............................................................................................... 16 Rental and its Payment Period ....................................................................................................... 20 Sublease Right .................................................................................................................................. 20 The Attribution of the State's Subsidy Income .............................................................................. 21 Ownership of Compensation for Land Acquisition when the Land is Expropriated ................ 21 D. Construction Contents of Newly Added Subprojects .................................................. 21 Project Construction Content .......................................................................................................... 21 Project Construction Site ................................................................................................................. 21 Construction Scope and Approval of the Project ......................................................................... 21 E. Review of signed Land use right transfer Agreement ................................................. 23 F. Implementation Status of the newly added Subprojects Land Lease Agreement 30 G. Suggestions on the Implementation of the newly added Subprojects and Matters Need to be paid Attention to ................................................................................................................ 31 H. Conclusions ............................................................................................................................ 33 Appendix 1 Decision of Neixiang County People's Government on acquisition of collective land in Guanzhang and Tuandong Townships ............................................................ 34 Appendix 2 Certificate of motionless property rights of Henan Muyuan Meat Food Co., Ltd. .............................................................................................................................................................. 38 Appendix 3 Land acquisition notice for Muyuan Meat Food............................................... 44 Appendix 4 Three parties signed land leasing agreement Sheqi Muyuan ...................... 46 Appendix 5 Land Document of Zhoukou Yongxin Co. ltd. ................................................ 57 Appendix 6 payment record of land rental of Sheqi Muyuan .............................................. 63 Appendix 7 payment record of land rental of Zhoukou Yongxin ....................................... 65 1 Background A. Overview of the Project 1. Henan Animal Husbandry and Product Safety Demonstration Project (hereinafter referred to as "the project") is aimed at establishing a demonstrative and environmentally sustainable husbandry and animal products processing to ensure food security. The project is expected to facilitate: (i)optimization of animal products quality and safety inspection system for Henan provincial government; and (ii) improvement of food safety management and implementation of environmentally sustainable husbandry and animal products processing for nine large and medium-sized private-owned husbandry and animal products processing enterprises, i.e., PPEs. The project will establish a demonstrative husbandry and animal products processing by strengthening good practices of environmentally sustainable food security. 2. The main outputs of the project include: (i) The animal products quality and safety inspection system upgraded; (ii) Environmentally sustainable livestock production facilities established; (iii) Capacity building and project management. According to the project design, the PPEs are expected to construct breeding, processing and testing facilities to their own needs. B. Overview of the Project Progress 3. A total of nine subproject enterprises participated in the project at the beginning of the Loan Agreement signed with the ADB in January 2016, they are Muyuan Meat Food Co., Ltd. (referred to as "Muyuan Meat Food"), Henan Fenghua Seed Industry Co., Ltd. (referred to as "Fenghua"), Henan Hengtianran Agriculture and Animal Husbandry Co., Ltd. (referred to as "Hengtianran"), Henan Sangao Agriculture and Animal Husbandry Co., Ltd. (referred to as "Sangao"), Henan Dadi Animal Husbandry Co., Ltd. (referred to as "Dadi"), Henan Avanti Food Co., Ltd. (referred to as "Avanti"), Luoyang Donghan Poultry Co., Ltd. (referred to as "Donghan "), Kerchin Cattle Industry Co. Ltd (referred to as "Kerchin"), and Henan Niuniu Animal Husbandry Co., Ltd. (referred to as "Niuniu"). 4. Due to changes in the market, poor performance of some enterprises and changes of national policy, the Overall Implementation Plan of the Project is directly affected in the process of project implementation and management. Four subproject enterprises, namely Avanti, Donghan, Kerchin and Niuniu cannot promote their subprojects subject to various reasons or voluntary withdrawal from the implementation of the Project, involving ADB loan funds of US $26 million. 5. By the end of 2019, the original five subproject enterprises (Muyuan Meat Food, Fenghua, Sangao, Hengtianran and the Dadi) had completed the Implementation Agreement and the reverse guarantee procedure of the Loan Transfer Agreement, and six subproject units, including 5 Henan Provincial Animal Husbandry Bureau, were ready for bidding. Among them, Muyuan Meat Food, Sangao, Fenghua and Hengtianran have completed the anti-guarantee mortgage to the financial