Resettlement Action Plan

Home , Putian, Quangang District, Xiuyu District

Public Disclosure Authorized Fujian Meizhou Bay Navigation Improvement

Project

Public Disclosure Authorized

Resettlement Action Plan

Public Disclosure Authorized

Meizhou Bay Harbor Administration Bureau of Fujian Province

July 2012 Public Disclosure Authorized

Contents

1 Overview of the Project ...... 1 1.1 Background of the Project ...... 1 1.2 Components and Resettlement Impacts ...... 3 1.2.1 Bank-financed Projects ...... 3 1.2.2 Other Projects ...... 4 1.3 Gross Investment and Financing Sources ...... 1 1.4 Measures to Reduce Resettlement Impacts ...... 1 1.5 Project Preparation and Progress ...... 2 2 Project Impact Analysis ...... 3 2.1 Survey of Resettlement Impacts ...... 3 2.2 Identification of the Right to Use Sea Areas ...... 3 2.3 Resettlement Impact Analysis ...... 4 2.4 Socioeconomic Impact Analysis of the Project ...... 6 2.4.1 Economis Impact Analysis ...... 6 2.4.2 Impacts on the aquaculture environment ...... 7 2.4.3 Impacts on navigation ...... 7 2.4.4 Impacts on fishing ...... 8 3 Socioeconomic Survey of the Project ...... 9 3.1 Socioeconomic Profile of the Affected Cities/Districts/Counties ...... 9 3.2 Socioeconomic Profile of the Affected Towns ...... 10 3.3 Socioeconomic Profile of the Affected Villages ...... 11 3.4 Basic Information of the AHs ...... 14 3.4.1 Sampling Analysis of the Directly Affected Population ...... 14 3.4.2 Sampling Analysis of the Population Affected by the Related Projects 15 3.5 Analysis of the Minority Population ...... 18 3.5.1 Minority Population in the Beneficiary Area ...... 18 3.5.2 Minority Population in the Affected Population ...... 18 3.6 Social Gender Analysis ...... 20 3.6.1 Overall Development of Women in the Project Area ...... 20 3.6.2 Survey on Women’s Development ...... 20 4 Laws, Regulations and Policies ...... 22 4.1 Laws and Policies on Resettlement ...... 22 4.2 Key Provisions of Laws, Regulations and Policies on Resettlement ...... 22 4.2.1 Land Administration Law of the PRC ...... 22 4.2.2 Fisheries Law of the PRC...... 22 4.2.3 Law of the PRC on the Administration of Sea Areas ...... 23 4.2.4 Measures of Fujian Province for the Implementation of the Fisheries Law of the PRC ...... 24 4.2.5 Notice of the Fujian Provincial Government on Issuing the Measures of Compensation for the Use of Sea Areas of Fujian Province ...... 25 4.2.6 Bank Policy on Involuntary Resettlement ...... 27

4.3 Policies and Compensation Rates of the Project ...... 27 4.3.1 Policies of the Project ...... 27 4.3.2 Compensation rates ...... 28 5 Income Restoration Measures for APs ...... 30 5.1 Objective of Resettlement ...... 30 5.2 Income Restoration Measures ...... 30 5.2.1 Income Loss Analysis ...... 30 5.2.2 Income Restoration Program ...... 30 6 Resettlement Budget and Management ...... 34 6.1 General Budget ...... 34 6.2 Fund Use Plan ...... 34 6.3 Disbursement, Management and Monitoring of Funds ...... 34 6.3.1 Disbursement of Funds ...... 34 6.3.2 Management and Monitoring of Funds ...... 35 7 Institutional Framework ...... 36 7.1 Agencies for Resettlement Actions ...... 36 7.2 Institutional Responsibilities ...... 36 7.3 Organizational setup and staffing ...... 38 7.4 Measures to Strengthen Institutional Capacity ...... 38 8 Implementation Plan ...... 40 8.1 Principles for Progress Coordination between Resettlement and Project Construction 40 8.2 Schedule for Key Resettlement Tasks ...... 40 8.2.1 Principles for Schedule Preparation ...... 40 8.2.2 Resettlement Schedule ...... 40 9 Public Participation and Grievance Redress ...... 42 9.1 Strategy and Methods of Public Participation ...... 42 9.2 Completed Public Participation and Consultation Activities ...... 42 9.3 Information disclosure ...... 43 9.4 Public Participation Plan for the Next Stage ...... 44 9.5 Appeal Procedure and Handling ...... 45 10 Monitoring and Evaluation...... 47 10.1 Internal Monitoring ...... 47 10.1.1 Implementation Procedure ...... 47 10.1.2 Scope of Monitoring ...... 47 10.1.3 Internal Monitoring Reporting ...... 47 10.2 Independent External Monitoring ...... 48 10.2.1 Independent Monitoring Agency ...... 48 10.2.2 Monitoring Procedure and Scope ...... 49 10.3 Post-evaluation ...... 49 11 Entitlement Matrix ...... 51 Appendixes ...... 53 Appendix 1 Fieldwork Methods of the RAP Preparation Team ...... 53 Appendix 2 Public Participation Activities at the Preparation Stage ...... 55

Appendix 3 Due Diligence Report on Resettlement for the Fujian Meizhou Bay Navigation Improvement Project (Phase I) ...... 59 Appendix 4 Due Diligence Report on Resettlement for the Construction Works of the 5# and 6# Berths of the Xiaocuo Operation Zone ...... 65 Appendix 5 Due Diligence Report on Resettlement for the Construction Works of the 1# and 2# Berths of the Putou Operation Zone ...... 72

List of Tables

Table 1-1 and Resettlement Impacts of the Meizhou Bay Navigation Improvement Project (Phase 3, Stage 1) and Related Projects ...... 1 Table 2-1 Resettlement Impact Analysis of the Project ...... 5 Table 2-2 Impact Analysis of Related Projects ...... 5 Table 3-1 Summary of Key Economic Indicators of the Affected Villages ...... 13 Table 3-2 Basic Information of Directly Affected Households ...... 14 Table 3-3 Income of Directly Affected Households (2010) ...... 15 Table 3-4 Expenditure of Directly Affected Households (2010) ...... 15 Table 3-5 Income of Sample AHs of the Related Projects (2010) ...... 17 Table 3-6 Expenditure of Sample AHs in 2010 ...... 17 Table 3-7 Distribution of the Minority Population in the Project Area (2010) ...... 19 Table 4-1 Compensation Rates (Replacement Cost) for Demolished Fixed Fishnets and Other Attachments of Reference Projects ...... 28 Table 5-1 Income Loss Analysis of AHs ...... 30 Table 6-1 Budget of the Project ...... 34 Table 7-1 Staffing of Resettlement Agencies of the Project ...... 38 Table 7-2 Resettlement Training Program ...... 39 Table 8-1 Resettlement Schedule of the Project ...... 40 Table 9-1 Public Participation Process of APs ...... 43 Table 9-2 Registration Form of Grievances and Appeals on Resettlement ...... 46 Table 10-1 Progress Report on Land Acquisition, House Demolition and Resettlement ...... 48 Table 10-2 Progress of Fund Utilization ...... 48

List of Figures

Figure 1-1 The Sketch Map of Fujian Meizhou Bay Navigation Improvement Project ...... 3 Figure 3-1 Age Structure of Sample Households Affected by the Related Projects ...... 16 Figure 3-2 Educational Level of Sample Households Affected by the Related Projects ...... 16 Figure 7-1 Institutional Chart ...... 36

iii

Abbreviations

AH - Affected Household AP - Affected Person CPC - Communist Party of China DP - Displaced Person DWT - Deadweight Tonnage FGD - Focus Group Discussion Fujian Provincial Development Reform FPDRC - Commission FPMO - Fujian Project Management Office FPTD - Fujian Provincial Transport Department FSR - Feasibility Study Report LNG - Liquefied Natural Gas MBHAB - Meizhou Bay Harbor Administration Bureau M&E - Monitoring and Evaluation PRC - People’s Republic of China RAP - Resettlement Action Plan RIB - Resettlement Information Booklet RPF - Resettlement Policy Framework

Units

Currency unit = Yuan (RMB) US$1.00 = RMB6.33 1 kilogram = 2 jin

1 Overview of the Project

1.1 Background of the Project Meizhou Bay Port is located in the center of Fujian’s coastline, and at the midpoint of the Yangtze River Delta and the Pearl River Delta – the two major economic centers of China, close to China’s international shipping line, opposite to Taiwan across the strait. It is also the starting point of Fujian’s corridor leading to central and western China, enjoying significant geographic advantages. It will play a crucial role in promoting the structuring and development of West Coast Economic Zone, attracting Taiwanese and foreign capital, and promoting the ―Three Direct Links‖ and China’s unification. The coastline of Meizhou Bay is 289 kilometers long, with a water area of 516 km2, in which that below mean low water is 374 km2. Over 100 berths above 10,000 DWT can be built here, accounting for half of China’s planned deepwater berths. It is a natural deepwater port rare in China and the world. According to the layout plan of coastal ports of Fujian Province, all sea ports of Fujian will be integrated into three ports groups gradually, namely Fuzhou Port, Meizhou Bay Port and Xiamen Port. On May 14, 2009, the State Council promulgated Some Opinions of the State Council on Supporting the Accelerated Construction of West Coast Economic Zone in Fujian Province. On July 17, 2009, the Ministry of Transport signed the Minutes on Accelerating the Transport Development of West Coast Economic Zone with the Fujian Provincial Government, stating that the Ministry of Transport supported the strategy of accelerating development on the basis of transport construction proposed by the Fujian Provincial Government, and would further strengthen communication and consultation with the Fujian Provincial Government, implement strategic plans of the CPC Central Committee and the State Council together, and provide greater support for Fujian’s transport construction in order to support the construction of West Coast Economic Zone effectively. In order to integrate port resources, and develop Meizhou Bay’s port industry faster and more effectively, the Meizhou Bay Harbor Administration Bureau (MBHAB) will be responsible for the implementation of the Phase III of the Fujian Meizhou Bay Navigation Improvement Project (hereinafter, the ―Project‖). MBHAB is a public institution affiliated directly to the Fujian Provincial Transport Department (FPTD), founded on August 3, 2009. It governs four agencies directly, namely the Xiuyu Harbor Administration Station, Xiaocuo Harbor Administration Station, Pilot Station and Channel Administration Station, and exercises such functions as harbor and navigation administration, water transport administration, port/channel planning and construction, channel maintenance, pilotage and fee collection within Meizhou Bay. Presently, Meizhou Bay Port is developing rapidly, with a cargo throughput of 39.069 million tons in 2010. In addition, there is a large LNG berth at the Xiuyu Terminal, which was completed and put into operation in 2008. According to rules for LNG shipment in ports, the main channel should be closed when an LNG vessel passes the channel. The closure of the main channel causes interruption of the

normal ports operation. Moreover, LNG transport enterprises incline using large-capacity carriers like Q-MAX to reduce transport costs. Therefore, it is necessary to upgrade the current channel to accommodate large-capacity LNG vessels, and increase the duration and passage of other vessels. The Meizhou Bay Navigation Improvement Project includes the Meizhou Bay Navigation Improvement Project (Phase 1), the Meizhou Bay Navigation Improvement Project (Phase 2), Phase 3 (Stages 1 and 2) of the Meizhou Bay Navigation Improvement Project, as well as rock blasting and dredging backfilling areas (including the Construction Project of the 5# and 6# Berths of the Xiaocuo Operation Zone, Construction Project of the 1-25# Berths of the Putou Operation Zone), where: 1) the Meizhou Bay Navigation Improvement Project (Phase 3) (Stages 1 and 2) is a Bank-financed project1. 2) The other projects will be financed by domestic funds mainly, but are directly associated with the Meizhou Bay Navigation Improvement Project (Phase 3) in function or benefit, including the Meizhou Bay Navigation Improvement Project (Phase 1), the Meizhou Bay Navigation Improvement Project (Phase 2), the Construction Project of the 5# and 6# Berths of the Xiaocuo Operation Zone, and the Construction Project of the 1-25# Berths of the Putou Operation Zone.

1 In a strict sense, only Stage 2 of Phase 3 will be constructed using a Bank loan.

Figure 1-1 The Sketch Map of Fujian Meizhou Bay Navigation Improvement Project

1.2 Components and Resettlement Impacts 1.2.1 Bank-financed Projects The Phase III of the Fujian Meizhou Bay Navigation Improvement Project has two stages, and includes supporting works for proposed berths or those under construction in the terminals of Meizhou Bay. 1. Project (Stage 2) The Project (Stage 2) includes: 1) outer bay section, from Point A3 near the

Dazuo sea area to Point B near Huanggan Island (34.6Km long), to be expanded to a unidirectional tide-independent channel for 300,000 DWT bulk vessels; 2) Huanggan Island-Dasheng Island (B-C) section (voyage 4.7km), to be broadened and deepened on the basis of the Fujian Meizhou Bay Navigation Improvement Project (Phase II); 3) Dasheng Island-Luoyu (C-D-F) section (voyage 12.8km), subject to dredging and rock blasting; and 4) clearance of Linchi Reef (to be implemented in Stage 1 in advance). The Project (Stage 2) is designed on the basis of synchronous construction, with a construction period of 33 months, about to break ground in the second half of 2012. This stage includes dredging, rock blasting and navigation marks, in which the amount of work of dredging is 17,140,200 m³, and that of rock blasting 724,700 m³ (excluding that of Linchi Reef of 513,000 m³). In the Project, except that dredged spoil from the outer bay section will be dumped in permitted dumping areas, all dredged and rock blasting spoil from the inner bay section will be used for land-filling of the 5#-10# berths at the Xiaocuo Operation Zone. Through identification by the owner and the design agency, the Phase III of the Fujian Meizhou Bay Navigation Improvement Project (Stage 2) does not involve withdrawal of the right to use sea areas and house demolition. 2. Project (Stage 1) The scope of the Project (Stage 1) includes: 1) Xiaocuo channel (requiring a small amount of rock blasting); 2) new branch channel of Meizhou Bay; 3) Putou 70,000 DWT channel; 4) 10,000 DWT channel in the Putou North Operation Zone; 5) full clearance of Linchi Reef out of the northwest line of the turning basin of the Douwei-Fulian 300,000 DWT crude oil terminal; 6) 150,000 DWT channel in the Shimenao Operation Zone; and 7) three new anchorage zones. This stage includes dredging, rock blasting and navigation marks, in which the amount of work of dredging is 60,549,100 m³, and that of rock blasting 983,900 m³. In order to reduce the impact of spoil and waste dumping on the nearby marine environment, and to meet the construction requirements of the berths in the Xiaocuo and Putou Operation Zones in Meizhou Bay, dredged spoil and rock blasting waste will be fully utilized for land-filling of the 5#-10# berths of the Xiaocuo Operation Zone and the 1#-25# berths of the Putou Operation Zone. Dredged spoil and rock blasting waste of the Shimenao channel will be backfilled in the Shimenao Operation Zone. All channels, anchorage zones and maneuvering area of the Project (Stage 1) are designed on the basis of synchronous construction, with a construction period of 39 months. As identified by the owner and the design agency, the rock blasting works in the Project (Stage 1) will involve the demolition of 10 fixed fishnets (for fishing) and other fixed fishing attachments, affecting one household with 9 persons in Xiaocuo Village, Nanpu Town, Quangang District. The scope of this RAP is the resettlement impacts of the Meizhou Bay Navigation Improvement Project (Phase 3, Stage 1) mainly. 1.2.2 Other Projects The Meizhou Bay Navigation Improvement Project (Phase 3) will be expanded from the first two phases, and dredged spoil and rock blasting waste will be backfilled

to the areas of the Construction Project of the 5# and 6# Berths of the Xiaocuo Operation Zone, and the Construction Project of the 1-25# Berths of the Putou Operation Zone. Since these projects are directly associated with the Meizhou Bay Navigation Improvement Project (Phase 3) in function or benefit, they are identified as related projects2. 1）The Project includes broadening and deepening on the basis of the Fujian Meizhou Bay Navigation Improvement Project (Phase I), and is closely associated with the first phase in function, so the first phase will be considered as a related project. 2）According to the FSR of this project, all spoil and waste of this project will be fully utilized, and part of soil and waste will be backfilled in the 5-6# berths of the Xiaocuo Operation Zone for berth construction. Therefore, the Construction Project of the 5-6# Berths of the Xiaocuo Operation Zone is closely associated with the Project in function, and should be considered as a related project. 3）According to the FSR of this project, all spoil and waste of this project will be fully utilized, and part of soil and waste will be backfilled in the 1#-25# of the Putou Operation Zone for berth construction. Therefore, the Construction Project of the 1-25# Berths of the Putou Operation Zone is closely associated with the Project in function, and should be considered as a related project. 1. Fujian Meizhou Bay Navigation Improvement Project (Phases I & II) The Meizhou Bay Navigation Improvement Project (Phase 1) includes: (1) dredging works, with a design volume of 1.228 million m³; (2) rock blasting works, with a design volume of 24,100 m³; and (3) navigation mar works, in which 5 HF-3.0 light floats, an HF-2.4 light float and 6 movable light floats will be completed, 8 flexible light staffs cleared and one anchorage boundary post removed. This project will occupy 62.3 mu of aquaculture sea area, affecting 16 fishing households with 65 persons in Shage Village, Nanpu Town, Quangang District. The Meizhou Bay Navigation Improvement Project (Phase 2) includes: (1) dredging works, with a design volume of 9.9259 million m³; (2) rock blasting works, with a design volume of 584,400 m³; and (3) navigation mar works, in which 16 light floats and 4 flexible light staffs will be provided, cleared and one light float and two buoys removed. This project involves no resettlement. To date, Phase 1 has been fully completed, and its resettlement activities have been completed; Phase 2 is close to completion and involves no resettlement.MBHAB and the RAP preparation team of Hohai University have conducted a detailed survey on the Fujian Meizhou Bay Navigation Improvement Project (Phase I), and prepared the Due Diligence Report on Resettlement for the Fujian Meizhou Bay Navigation Improvement Project (Phase I) (see Appendix 3). 2. Construction Project of the 5-6# Berths of the Xiaocuo Operation Zone in the Xiaocuo Terminal, Meizhou Bay The scope of the Construction Project of the 5# and 6# Berths of the Xiaocuo Operation Zone includes: Two 50,000 DWT multi-purpose terminals (reserved for

2 A related project refers to a project that is directly associated with the Project in function or benefit, namely an extended project constructed using funds other than Bank lending within the range of the Project during the preparation and implementation.

100,000 DWT) will be constructed, with a design annual throughput of 3.5 million tons. The 5# and 6# berths are 318m and 323m long respectively, and will be backfilled into a land area. The 5# and 6# berths have a land area of 370,900 m2 and 265,500 m2 respectively. The gross investment in this project is 1.03 billion yuan. The Construction Project of the 5# and 6# Berths of the Xiaocuo Operation Zone will occupy 1,248.35 mu of aquaculture water surface, affecting 35 households with 133 persons in Shage Village, Nanpu Town, Quangang District. As of May 2012, sea area withdrawal, compensation and other resettlement activities had been completed for the Construction Project of the 5# and 6# Berths of the Xiaocuo Operation Zone. MBHAB and the RAP preparation team visited and surveyed the resettled APs, interviewed and collected information from agencies concerned, and prepared the Due Diligence Report on Resettlement for the Construction Project of the 5# and 6# Berths of the Xiaocuo Operation Zone (see Appendix 4). 3. Construction Project of the 1-25# Berths of the Putou Operation Zone in the Xiuyu Terminal, Meizhou Bay The Putou Operation Zone has a planned coastline of 4.24 kilometers, and 25 planned 5,000-40,000 DWT berths, with a built-up area of about 8 km2. The construction works of the 1-2# berths have commenced and will be constructed for 24 months in Phase 1, and the subsequent 3-25# berths and the rear logistics park will be developed in Phase 2. 15,917.7 mu of sea area and tidal flat will be occupied for the construction of the Construction Project of the 1-25# Berths of the Putou Operation Zone, including 7,952.76 mu of aquaculture water area and 7,964.96 mu of non-aquaculture water area. (1) A sea area of 1,297.4 mu will be withdrawn for the Construction Project of the 1# and 2# Berths of the Putou Operation Zone, including the withdrawal of 1,106.84 mu of aquaculture water area, involving 49 households with 190 persons in Putou and Daxiang Villages, Dongzhuang Town, Xiuyu District, Putian City, and the occupation of 190.57 mu of non-aquaculture water area, involving no person. As of August 2011, compensation for sea area withdrawal and other resettlement activities had been completed for the Construction Project of the 1# and 2# Berths of the Putou Operation Zone, and Fujian Meizhou Bay Port Development Co., Ltd. obtained a certificate of the right to use sea areas in September 2010. In August-September 2011, MBHAB and the RAP preparation team visited and surveyed the resettled APs in the Construction Project of the 1# and 2# Berths of the Putou Operation Zone, interviewed and collected information from agencies concerned, and prepared the Due Diligence Report on Resettlement for the Construction Project of the 1# and 2# Berths of the Putou Operation Zone (see Appendix 5). (2) A sea area of 7,774.39 mu will be withdrawn for the Construction Project of the 3-25# Berths of the Putou Operation Zone, including 6,825.91 mu of aquaculture water surface. Sea area withdrawal will affect 1,631 households with 8,725 persons in 4 administrative villages, one township, Xiuyu District, Putian City directly, and will involve neither house demolition nor land acquisition.

The construction site for the Construction Project of the 3-25# Berths of the Putou Operation Zone has been determined preliminarily, where resettlement activities involved in sea area withdrawal under the Construction Project of the 3# and 4# Berths of the Putou Operation Zone have begun, the resettlement compensation agreement has been signed and compensation fees are being paid. The approval formalities of the right to use sea areas have got; resettlement activities involved in sea area withdrawal under the Construction Project of the 5# and 6# Berths have begun, the affected village committee and villagers are being consulted, and the right to use sea areas has passed preliminary examination, and the approval formalities are ongoing; resettlement activities for the Construction Project of the 7-25# Berths have not begun, this project is at the survey stage, and the right to use sea areas has not been submitted for approval. According to the Bank aide-memoire, in May and June 2012, MBHAB and the RAP preparation team visited and surveyed the APs in the Construction Project of the 3-25# Berths of the Putou Operation Zone, interviewed and collected information from agencies concerned, and prepared the the Resettlement Action Plan for the Construction Project of the 3-25# Berths of the Putou Operation Zone in Xiuyu Port Area, Meizhou Bay, Fujian. See the Resettlement Action Plan for the Construction Project of the 3-25# Berths of the Putou Operation Zone in Xiuyu Port Area, Meizhou Bay, Fujian for the resettlement survey and impacts, and restoration programs of the Construction Project of the 3-25# Berths of the Putou Operation Zone. The resettlement impacts of the Bank-financed project and related projects involved in the Meizhou Bay Navigation Improvement Project are as follows: 1) The Meizhou Bay Navigation Improvement Project (Phase 3, Stage 2) involves neither sea area withdrawal nor house demolition. The rock blasting works of the Meizhou Bay Navigation Improvement Project (Phase 3, Stage 1) involve the demolition of 10 fixed fishnets and other fixed fishing attachments, affecting one household with 9 persons in Xiaocuo Village, Nanpu Town, Quangang District, Quanzhou City; 2) The Meizhou Bay Navigation Improvement Project (Phase 1) will occupy 62.3 mu of aquaculture water area, affecting 16 fishing households with 65 persons in Shage Village, Nanpu Town, Quangang District, Quanzhou City; the Meizhou Bay Navigation Improvement Project (Phase 2) involves no resettlement impact; 3) The Construction Project of the 5# and 6# Berths of the Xiaocuo Operation Zone will occupy 1,248.35 mu of aquaculture water area, affecting 35 households with 133 persons in Shage Village, Nanpu Town, Quangang District; 4) A sea area of 1,297.42 mu will be withdrawn for the Construction Project of the 1# and 2# Berths of the Putou Operation Zone, including 1,106.84 mu of aquaculture water area, affecting 49 households with 190 persons in Putou and Daxiang Villages, Dongzhuang Town, Xiuyu District, Putian City; 5) The Construction Project of the 3-25# Berths of the Putou Operation Zone involves the withdrawal of a sea area of 7,774.39 mu, including 6,825.91 mu of aquaculture water surface, affecting 1,631 households with 8,725 persons in 4

administrative villages, one township, Xiuyu District, Putian City directly, and involving neither house demolition nor land acquisition. See Table 1-1.

Table 1-1 and Resettlement Impacts of the Meizhou Bay Navigation Improvement Project (Phase 3, Stage 1) and Related Projects Non- Aquacultur aquaculture e water Affected Affected Demolishe water Total Project City District Town Village surface househol populatio Remarks d fixed net surface (mu) occupied ds n occupied (mu) (mu) Meizhou Bay This project is at the preliminary design Navigation Quanz Quanga Nanpu Xiaocuo 10 / 1 9 / / stage, and resettlement activities have Improvement Project hou ng not begun. (Phase 3, Stage 1) Meizhou Bay This project has been completed, and Navigation Quanz Quanga Nanpu Shage / 62.3 16 65 / 62.3 resettlement activities have been Improvement hou ng completed. Project (Phase 1) Meizhou Bay Navigation Construction is close to completion, and / / / / / / / / / / Improvement no resettlement impact is involved.

Related projects Related Project (Phase 2) Xiaoc Quanz Quanga 5# berth Nanpu Shage / 652.038 20 81 / 652.038 This project is under construction, and uo hou ng resettlement activities have been Oper Quanz Quanga 6# berth Nanpu Shage / 596.3145 15 52 / 596.3145 completed. ation hou ng Zone Subtotal 10 1248.353 35 133 / 1248.353 /

1# & Dongzhu 1# Putian Xiuyu Putou / 321.77 21 81 This project is under construction, and 2# ang 190.57 1297.42 resettlement activities have been Puto bert Dongzhu 2# Putian Xiuyu Daxiang / 785.08 28 109 completed. u hs ang Oper Subtotal 1106.85 49 109 190.57 1297.42 ation Shiqian / 866.41 555 2915 The construction site for the Construction Zone 3#-25# Dongzhu Putian Xiuyu 1139.05 9071.81 Project of 3#-25# Berths has been berths ang Daxiang / 735.41 379 1820 Shiwei / 3379.31 521 3048 determined preliminarily, where

resettlement activities involved in sea area withdrawal under the Construction Project of the 3# and 4# Berths of the Putou Operation Zone have begun, the resettlement compensation agreement has been signed and compensation fees are being paid; resettlement activities Shitou / 1844.78 176 942 involved in sea area withdrawal under the Construction Project of the 5# and 6# Berths have begun, and the affected village committee and villagers are being consulted; resettlement activities for the Construction Project of the 7-25# Berths have not begun, and this project is at the survey stage. Subtotal / 7932.76 1631 8725 1329.62 10369.21 / Total 10 10350.26 1732 9041 1520.19 11870.45 /

1.3 Gross Investment and Financing Sources The Phase III of the Fujian Meizhou Bay Navigation Improvement Project (Stage 2) is a Bank-financed project, with an estimated total investment of RMB898,380,300 (US$138 million), from a Bank loan of US$50 million (36% of total investment) and domestic counterpart funds. It involves no insettlement funds. The Phase III of the Fujian Meizhou Bay Navigation Improvement Project (Stage 1) will be financed by domestic funds, with an estimated total investment of RMB1,908,595,300 (US$312 million), in which resettlement costs are RMB1,230,300. The Construction Project of the 3-25# Berths of the Putou Operation Zone will be financed by domestic funds, with an estimated total investment of RMB2.4 billion (US$370 million), including resettlement costs of 58,344,600 yuan. See the Resettlement Action Plan for the Construction Project of the 3-25# Berths of the Putou Operation Zone in Xiuyu Port Area, Meizhou Bay, Fujian for the resettlement costs of the Construction Project of the 3-25# Berths of the Putou Operation Zone. The financing sources is shown in Error! Not a valid bookmark self-reference.. Table 1-2 Financing Sources3for the project above Percentage Among:insettlement Project Source RMB (million) US$ (million) (%) funds(￥1’0000) Subsidy from the Ministry of 180 28 20 The Phase III Transport of the Fujian (TBD) Meizhou Bay Contribution Navigation from provincial 270 41 30 / Improvement finance Project World Bank 325 50 36 (Stage 2) loan Self-financed 124 19 14 by MBHAB The Phase III of the Fujian Meizhou Bay Domestic Navigation funds as a 1909 312 100 123 Improvement whole solve Project (Stage 1) 2400 370 100 5834.46

1.4 Measures to Reduce Resettlement Impacts At the planning and design stages, the design agency and the owner took the following effective measures in order to reduce the local socioeconomic impacts of the Project:

3 Source: Aide-Memoire of the Identification Mission for the Fujian Meizhou Bay Navigation Improvement Project in May 2011 (US$1=RMB6.48)

1) At the project planning stage, the local socioeconomic impacts of the Project were taken as a key factor for option optimization and comparison; 2) The design was optimized to reduce the amount of dredging, rock blasting and backfilling in order to avoid affecting aquaculture and fishing households, reduce the amount of withdrawal of the right to use sea areas and fishing facility demolition, and minimize the impact on the local socioeconomic conditions and people’s living standard. At the RAP preparation and implementation stages, when withdrawal of the right to use sea areas and some fishing facility demolition is unavoidable, the following measures will be taken to reduce the local impacts of the Project: 1) Strengthen the collection of basic information, make an in-depth analysis of the local present socioeconomic conditions and future prospect, and develop a feasible RAP based on the local practical conditions to ensure that the APs will not suffer losses due to the Project. 2) Encourage public participation actively and accept public supervision. 3) Strengthen internal and external monitoring, establish an efficient and unobstructed feedback mechanism and channel, and shorten the information processing cycle to ensure that issues arising from project implementation are solved timely.

1.5 Project Preparation and Progress By the end of June 2012, the progress of the Project was as follows with the joint effort of the FPMO, MBHAB, the project owner and the design agency: 1. Fujian Meizhou Bay Navigation Improvement Project (Phases I & II) In May 2011, the Bank mission identified the Project, and reviewed the FSR of the Project (Stages 1 and 2). The FPMO and MBHAB revised the FSR based on the review opinions, and submitted the revised FSR in June 2011. By the end of September 2011, the preparation for the Project progressed smoothly with the joint effort of the FPMO, MBHAB and the design agency. The National Research Center for Resettlement at Hohai University was appointed by MBHAB to participate in the whole preparation of the RAP of the Project as the consulting agency. During August-October 2011, the RAP preparation team conducted a socioeconomic survey on the project area and the affected areas of the related projects, and extensive public consultation with the APs. At the end of October 2011, the Resettlement Action Plan for the Meizhou Bay Navigation Improvement Project (Phase 3) was completed. 2. Other projects During the implementation of the Project, relevant documents have been prepared for the related projects of the Meizhou Bay Navigation Improvement Project (Phase 3). 1) The Meizhou Bay Navigation Improvement Project (Phase 3) involves broadening and deepening on the basis of the Meizhou Bay Navigation Improvement Project (Phase 1), and is closely associated with the first phase in function, so the first phase will be considered as a related project. The first phase has been completed, and its resettlement activities have also been completed. For this reason, the RAP

preparation team has conducted a detailed survey on the resettlement activities of the Fujian Meizhou Bay Navigation Improvement Project (Phase 1), and prepared a due diligence report on resettlement for this project (see Appendix 3). 2) According to the FSR of the Meizhou Bay Navigation Improvement Project (Phase 3), all spoil and waste of this project will be fully utilized, and part of soil and waste will be backfilled in the 5# and 6# berths of the Xiaocuo Operation Zone for berth construction. Therefore, the Construction Project of the 5# and 6# berths of the Xiaocuo Operation Zone is closely associated with the Project in function, and should be considered as a related project. All dredged spoil will be recovered, and a part thereof will be backfilled directly to the land area behind the 5# and 6# berths of the Xiaocuo Operation Zone for berth construction. Therefore, the Construction Project of the 5# and 6# berths of the Xiaocuo Operation Zone is closely associated with the Project in function, and should be considered as a related project. To date, compensation for withdrawal of the right to use sea areas and other resettlement activities have been completed for the Construction Project of the 5# and 6# Berths of the Xiaocuo Operation Zone, and the Due Diligence Report on Resettlement for the Construction Project of the 5# and 6# Berths of the Xiaocuo Operation Zone prepared (see Appendix 4). 3) According to the Feasibility Study Report (FSR) of the Meizhou Bay Navigation Improvement Project (Phase 3), all dredged spoil will be recovered, and a part thereof will be backfilled directly to the land area behind the 1-25# berths of the Putou Operation Zone and used for the construction of some berths. To date, compensation for withdrawal of the right to use sea areas and other resettlement activities have been completed for the Construction Project of the 1# and 2# Berths of the Putou Operation Zone, and the Due Diligence Report on Resettlement for the Construction Project of the 1# and 2# Berths of the Putou Operation Zone prepared (see Appendix 5). 4) According to the Bank aide-memoire, the RAP preparation team prepared the Resettlement Action Plan for the Construction Project of the 3-25# Berths of the Putou Operation Zone in Xiuyu Port Area, Meizhou Bay, Fujian in July 2012. See Table 1-3.

Table 1-3 Preparation of Documents on Resettlement and Resettlement Impacts of the Project Financing Project Resettlement impacts Resettlement progress Resettlement document source Stage 1 Domestic 10 fixed fishnets will be Resettlement not started yet The RAP for the Project has Fujian Meizhou funds demolished, affecting one been prepared. Bay Navigation household with 9 persons. Improvement Stage 2 Domestic No resettlement impact / Project (Phase funds, Bank III) loan Meizhou Bay Domestic 62.3 mu of aquaculture area will Resettlement completed The Due Diligence Report on Navigation funds be occupied, affecting 16 Resettlement for the Fujian Improvement households with 65 persons Meizhou Bay Navigation Project (Phase I) Improvement Project (Phase I) has been prepared. See Appendix 3. Meizhou Bay Domestic No resettlement impact / None Navigation funds Improvement Project (Phase II) Related projects Construction Domestic 1,248.35 mu of aquaculture area Resettlement completed The Due Diligence Report on Project of the funds will be occupied for 5# and 6# Resettlement for the 5-6# Berths of berths, affecting 35 households Construction Works of the 5# the Xiaocuo with 133 persons. and 6# Berths of the Xiaocuo Operation Zone Operation Zone has been in the Xiaocuo prepared. See Appendix 4. Terminal, Meizhou Bay Construction Domestic For the 1# and 2# berths, Withdrawal of the right to use sea areas The Due Diligence Report on Project of the funds 1,297.4 mu of sea area has been and resettlement for the 1# and 2# berths Resettlement for the 1-25# Berths of acquired, including 1,106.84 mu has been completed. Construction Works of the 1#

Financing Project Resettlement impacts Resettlement progress Resettlement document source the Putou of aquaculture area, affecting 49 and 2# Berths of the Putou Operation Zone households with 190 persons, Operation Zone has been in the Xiuyu and 190.57 mu of other not prepared. See Appendix 5. Terminal, breed water area, affecting no Meizhou Bay one. A sea area of 7,774.39 mu will The construction site for the Construction The Resettlement Action Plan be withdrawn for the 3#-25# Project of 3#-25# Berths has been for the Construction Project of berths, including 6,825.91 mu of determined preliminarily, where the 3-25# Berths of the Putou aquaculture water area and resettlement activities involved in sea area Operation Zone in Xiuyu Port 948.48 mu of non-aquaculture withdrawal under the Construction Project Area, Meizhou Bay, Fujian has water area, affecting 1,631 of the 3# and 4# Berths of the Putou been prepared. households with 8,725 persons Operation Zone have begun, the in 4 villages, one town. resettlement compensation agreement has been signed and compensation fees are being paid; resettlement activities involved in sea area withdrawal under the Construction Project of the 5# and 6# Berths have begun, and the affected village committee and villagers are being consulted; resettlement activities for the Construction Project of the 7-25# Berths have not begun, and this project is at the survey stage.

2 Project Impact Analysis This RAP makes an analysis of the resettlement impacts and resettlement progress of the Bank-financed Meizhou Bay Navigation Improvement Project (Phase 3). See the relevant appendix and the Resettlement Action Plan for the Construction Project of the 3-25# Berths of the Putou Operation Zone for the resettlement impacts and resettlement progress of the other projects. 2.1 Survey of Resettlement Impacts According to the Terms of Reference for the RAP, the RAP preparation team conducted a field survey together with MBHAB, and the affected town governments and village committees during August 17-30, 2011: (1) A questionnaire socioeconomic survey was conducted on project impacts, and 24 affected fishing and aquaculture households, in which one was affected directly by the Project, and 23 by the related projects; (2) Government agencies concerned were visited, including statistics bureau, agriculture, forestry and water resources bureau, ocean and fishery bureau, labor & social security bureau, and women’s federation, and 6 persons concerned were interviewed in depth; (3) Two focus group discussions (FGDs) were held with staff of the affected town governments and village committees, and representatives of the APs, in which 30% of the participants were women; and (3) Representatives of 8 AHs were interviewed in depth. The survey covered project impacts and suggestions, income and expenditure of the AHs, household livelihood patterns, expected resettlement modes, and income restoration programs. (See Appendix 1 for the details of the survey.)

2.2 Identification of the Right to Use Sea Areas According to the Law of the PRC on the Administration of Sea Areas, ―The sea areas shall belong to the state, and the State Council shall exercise ownership over the sea areas on behalf of the state. No entity or individual may usurp on, buy or sell or by any other means transfer sea areas. The right to use sea areas shall be lawfully obtained for the use of sea areas by any entity or individual.‖ Based on the field survey, the sea area involved in the Project is state-owned. According to the Opinions of the Fujian Provincial Government on the Implementation of Some Opinions of the State Council on Supporting Fujian Province to Accelerate the Construction of West Coast Economic Zone, the Outline of the 12th Five-year Plan for National Economic and Social Development of Fujian Province, and the Development Plan for the West Coast Urban Group (2008-2020), the onshore area of Meizhou Bay has been planned as a port-based industrial base with focus on petrochemicals and equipment manufacture, and the aquaculture function should be adjusted, including the project area. According to the oceanic functional zoning, the ocean and fishery department has not granted the right to use local marine and tidal-flat resources to any collective, fishery production organization or individual in the project area. Aquaculture and fixed fishnet fishing operations of some fishery production organizations and fishermen in Meizhou Bay are personal acts, and do not comply with the oceanic functional zoning.

2.3 Resettlement Impact Analysis According to the survey data provided by the FPMO and MBHAB, some aquaculture facilities of fishermen will be demolished for the rock blasting works in the Project (Stage 1), especially fixed fishnets. 10 fixed fishnets and other fixed fishing attachments will be demolished, affecting one fishing household with 9 persons. The affected fishermen are villagers in Xiaocuo Village, Nanpu Town, Quangang District, and the aquaculture sea area is close to Songcun Village, Jingfeng Town, Hui’an County.

Table 2-1 Resettlement Impact Analysis of the Project Affected population Proejct # of fixed fishnets Size of fixed fishnet Remarks Households Population The perimeter of each net is The affected fishermen are villagers in about 60m, overall length is Xiaocuo Village, Nanpu Town, Quangang The Project (Stage 2) 10 about 36m (net body 30m and 1 9 District, and the aquaculture sea area is pocket 6m), and each net weighs near Songcun Village, Jingfeng Town, 280 jin. Hui’an County.

Table 2-2 Impact Analysis of Related Projects Aquaculture Affected Affected Not breed water area Project City District Town Village area occupied households population occupied (mu) (mu) Fujian Meizhou Bay Navigation Quanzhou Quangang Nanpu Shage 62.3 16 65 / Improvement Project (Phase I) 5# berth Quanzhou Quangang Nanpu Shage 652.038 20 81 / 6# berth Quanzhou Quangang Nanpu Shage 596.315 15 52 / Xiaocuo Operation 7-10# Zone Project / / / / / / / / berths Subtotal 1248.35 35 133 / 1# berth Putian Xiuyu Dongzhuang Putou 321.77 21 81 190.57 2# berth Putian Xiuyu Dongzhuang Daxiang 785.08 28 109 Shiqian 866.41 555 2915 120.39 Putou Operation 3#-25# Daxiang 735.41 379 1820 102.2 Zone Project Putian Xiuyu Dongzhuang berths Shiwei 3379.31 527 3048 469.55 Shitou 1844.78 176 942 256.34 Subtotal 10491.76 1772 9246 1139.05

2.4 Socioeconomic Impact Analysis of the Project The Project aims to improve the traffic capacity of the channels in Meizhou Bay, accelerate local economic development, and create favorable conditions for further opening up for Fujian and even the whole country. During and after construction, the functioning of the Project will affect the socioeconomic conditions and resource environment of the project area. In August 2011, the RAP preparation team visited some towns and villages along the navigation channels, and interviewed officials concerned and representatives of the APs in depth. In May and July 2012, the RAP preparation team visited the relevant management agencies many times for interview and information collection, and held FGDs to discuss project impacts. Based on the analysis of the survey results, the socioeconomic impacts on both sides of the channels in Meizhou Bay has following aspects. 2.4.1 Economis Impact Analysis To see in the acroscopic aspect, Meizhou Bay is a natural deepwater port rare in China. For historical reasons, port construction has been slow. Since the beginning of reform and opening up, the development and construction of Meizhou Bay has accelerated, but the increasing demand for cargo throughput and capacity is still unmet. The Project will change this situation significantly, increase the channel capacity in this area greatly, allow for the passage of large LNG vessels, and increase the navigation hours of other transport vessels to meet development and production needs of different terminals in Meizhou Bay, and drive local socioeconomic development. According to statistics4, the Project’s direct economic benefits will be equivalent to an annual net present value of 456,411,200 yuan upon completion, with an internal rate of return of 10.3% (greater than the benchmark social discount rate of 8%) and a payback period 7.3 years. Moreover, due to the special geographic conditions of the channels in Meizhou Bay, the Project will play a crucial role in promoting the structuring and development of West Coast Economic Zone, attracting Taiwanese and foreign capital, and promoting the ―Three Direct Links‖ and China’s unification. From a microscopic perspective, the Meizhou Bay Navigation Improvement Project will promote local economic development in the following ways: 1.The Project will improve the operating capacity of the channels in Meizhou Bay greatly, promote the economic development of both sides of Meizhou Bay, attract more investment, and generate more job opportunities for fishermen on both sides of Meizhou Bay. Moreover, 25,000 men-times of civil construction and transport jobs will be generated for local labor at the construction stage. 2.Local raw materials will be used partly during construction, which will increase the income of enterprises near the channels in Meizhou Bay. 3.At the construction stage, the contractor will have a great demand for residential property leases and catering services. Although such demand will last 2-3 years only, it will generate job opportunities for residents on both sides of Meizhou Bay and increase their income. The construction agency will urge the contractor to provide unskilled jobs to the APs first, including women and the poor.

4 Source: FSR of the Project

4.Through communication with the local labor & social security department, training courses held in the project area will be first made available to the APs, and will include crop cultivation, aquaculture and industry transfer skills based on the local socioeconomic conditions and the APs’ needs. 5.The Project will promote the public participation of women. At the project design stage, women’s needs and suggestions will be solicited and incorporated into the project design. On the other hand, the scope, time and location of training will be selected based on local women’s needs so as to ensure that more women are trained and benefit from the Project. At the same time,10 fixed fishnets and other fixed fishing attachments will be demolished, affecting one fishing household. Although this household will be compensated, its income will be affected and economic structure varied temporarily. Through communication with the PMO, MBHAB and the local government agencies concerned, the RAP preparation team thinks that the following measures may be taken to reduce such impact: Prepare a detailed RAP, develop rational resettlement policies, and pay attention to the restoration of the APs’ production level and living standard; involve the APs in the consultation and decision-making of the construction and resettlement programs, and strengthen public participation; conduct pertinent labor skills training, and encourage the APs to participate in social insurance. 2.4.2 Impacts on the aquaculture environment At the construction stage, the dredging and rock blasting (e.g., blasting operations in the Dasheng Island segment in the Fujian Meizhou Bay Navigation Improvement Project (Phase 2), and the Putou, branch channel and Linchi Reef rock blasting areas) works may affect the surrounding aquaculture environment temporarily. The following measures should be taken to avoid or reduce the negative impacts of the Project: Prepare a detailed Environmental Impact Assessment (EIA) Report to make clear the possible environmental impacts of the Project, propose detailed measures and restoration programs to avoid negative impacts, and strengthen construction management and optimize the construction program to minimize negative environmental impacts (see the EIA Report). The APs will be consulted about the temporary impacts of rock blasting, and their aquaculture areas will be relocated temporarily and compensated for, and may be moved back after construction. 2.4.3 Impacts on navigation At the construction stage, the main channel will be occupied, and the regular operation, berthing and departing of the navigation sections in Meizhou Bay will be affected for a certain time. At the construction stage, the FPMO will urge the contractor to minimize the negative impact on the traffic of the navigation channels by adopting a sectionalized construction approach and performing construction within the specified hours, improve construction efficiency and shorten the construction period. For small-displacement boats, channel construction will have no impact no their

navigation, because their waterline is as low as 1m, so that such boats can enter the sea easily. On the other hand, the navigation of large-displacement boats may be affected to some extent. According to the interviews with the local maritime bureau, and ocean and fishery bureau, at the construction stage, the local maritime bureau will usually issue a navigation notice in advance to specify the construction period, area and scope, and the relevant precautions in detail. 1) The notice will specify that operating vessels should signal in accordance with the Regulations on Coastal Port Signaling, and impose traffic control measures on the water area of construction. 2) In case of blasting, the constructor should report the local traffic control center one hour in advance, and blasting should not be implemented until the local maritime bureau has issued a VHF navigation alarm. 3) The constructor will report the piloting and construction scheme of the next day to the local traffic control center by 16:00 of each day, and the local maritime bureau will release information on blasting time, navigation hours and entry/exit arrangements on its website on a daily basis. 2.4.4 Impacts on fishing According to the FGDs with the municipal ocean and fishery bureau, some fishermen in the project area have fishing licenses5 and fishing boats. These licenses will expire at the end of 2012 or 2013. It is learned that since there is a very small amount of commercial fish in the bay, it is uneconomical to capture wild fish stocks in the bay. In pursuit for economic benefits, people would carry out offshore fishing. In addition, since the channel construction of Meizhou Bay has a history of over 30 years, all nearby fishermen know that they should no longer fish in the channel for the sake of safety. Therefore, channel construction will affect fishing income to a very low extent.

5 For example, in the Putian urban area, there are 420 fishing boats on Meizhou Island, 82 on the north bank and 44 in Dongzhuang Town.

3 Socioeconomic Survey of the Project

3.1 Socioeconomic Profile of the Affected Cities/Districts/Counties Quanzhou City—Quanzhou City is one of the three central cities of Fujian Province, and has been ranking first in Fujian in terms of aggregate economic volume since 1999. It is an economic center of Fujian Province, and a well-known origin of overseas Chinese and Taiwan compatriots. The city has a territory area of 1,1015 km2. At the end of 2010, the city’s resident population was 8 million (excluding Jinmen County), in which Han people accounted for 98.2%. In 2010, the city’s regional GDP was 356.476 billion yuan, an increase of 12.8% from the previous year based on comparable prices, and its aggregate economic volume had been ranking first in the province for 12 consecutive years; the ratio of primary, secondary and tertiary industries was 3.7:60.2:36.1. In 2010, the disposable income of urban residents was 25,155 yuan, up 9.8% from 2009; and the per capita net income of farmers was 9,296 yuan, up 8.6% from 2009. Putian City—Putian City is located on the central coast of Fujian Province, and governs Xianyou County, Licheng, Chengxiang, Hanjiang and Xiuyu Districts, and the Administrative Committee of the Meizhou Island National Resort. At the end of 2010, the city’s land area was 4,119 km2, sea area 11,000 km2, coastline 534.5 kilometers, including a mainland coastline of 271.6 kilometers and an island coastline of 262.9 kilometers, and resident population 3,069,700. The city abounds with such marine products as eel, prawn, swimming crab and Dingchang fish, and is known for the ―four major fruits‖ of longan, litchi, loquat and pomelo. The city is also one of the ―famous historical and cultural cities‖ of Fujian. The city boasts an advantaged geographic location and three major bays – Meizhou, Xinghua and Pinghai Bays, and has navigational links with ports in many countries and regions in the world. In 2010, the city’s regional GDP 81.698 billion yuan, an increase of 15.2% from the previous year based on comparable prices; the ratio of primary, secondary and tertiary industries was 10.8:56.6:32.6. The per capita net income of farmers was 7,663 yuan, and the disposable income of urban residents 19,068 yuan. Quangang District—Quangang District is under the jurisdiction of Quanzhou City, located on the south side of Meizhou Bay, and is a well-known origin of overseas Chinese and Taiwan compatriots. The district has a territory area of 441.4 km2, including a land area of 321 km2 and a sea area of 119.6 km2 (in which the tidal flat area above the intertidal zone is 47.68 km2). The district governs 6 towns, one sub-district office, one state salt farm, 96 administrative villages and 4 community committees. In 2010, the district’s population was 392,700, and GDP 19.185 billion yuan, up 18.85% from the previous year; the disposable income of urban residents was 16,362 yuan, up 8.8%, and the per capita net income of farmers 9570 yuan, up 8.68%. The district has an advantaged geographic location and a great port. The coastline suitable for the construction of deep-, medium- and shallow-water harbors is 21.4km long, and that suitable for the construction of 10,000 DWT or above berths is 9.8km long. This is a great group of deepwater berths of Fujian.

Hui’an County—Hui’an County is under the jurisdiction of Quanzhou City, located between Quanzhou and Meizhou Bays, and is a major origin of overseas Chinese and Taiwan compatriots. The county ranks 29th among the top 100 counties of China in terms of basic economic competitiveness, 51st among the top 100 medium and small towns of China in terms of overall strength, and 35th among the top 100 medium and small towns of China in terms of investment potential, and is one of the top 100 medium and small towns of China in driving regional economic development. The county’s land area is 720 km2 and sea area 1,833 km2. The county governs 15 towns, one minority Xiang, 11 communities and 284 administrative villages. At the end of 2010, the county’s resident population was 716,200. In 2010, the county’s GDP was 39.926 billion yuan, up 12.9%; and the per capita net income of farmers 9,551 yuan, up 9.3%. Xiuyu District—Xiuyu District is under the jurisdiction of Putian City, surrounded by Xinghua, Pinghai and Meizhou Bays. The district has a land area of 390 km2, a sea area of 4,514.75 km2, 143 lands, a coastline of 471.19km, including a mainland coastline of 237 kilometers and an island coastline of 233.89 kilometers. The district governs 6 towns and one Xiang, and 147 villages/communities. At the end of 2010, the district’s resident population was 479,000. The district abounds with fishery, salt, coastal tourism and marine mineral resources. In 2010, the district’s GDP was 12.3 billion yuan, the ratio of primary, secondary and tertiary industries was 16.2: 56.9: 26.8, and the per capita net income of farmers 7,689.3 yuan.

3.2 Socioeconomic Profile of the Affected Towns Nanpu Town—Nanpu Town is located in the northeast of Quangang District and the south side of Meizhou Bay, and is a petrochemical port under construction, and a strong industrial and trading town. The town has a land area of over 40 km2, and governs 15 administrative villages. At the end of 2010, the town’s resident population was 100,000. The town’s deepwater coastline is 11 kilometers, and the port is a state Tier-1 port, which has a 50,000 DWT multifunctional dock, a 10,000 DWT bulk dock and a Taiwan trading dock. There are a number of large- and medium-sized enterprises in the town, including the Fujian Refining-Chemical Integration Project, Fujian Grain & Oils Industry Co., Ltd. funded by ADM Inc. (a world top 500 corporation), and NARI Nanpu Power Plant. In 2010, the town’s GDP was 7 billion yuan, and the per capita net income of farmers 7,587 yuan. Dongzhuang Town—Dongzhuang Town is located in the west of Xiuyu District, Putian City, beside Meizhou Bay. The town governs one community committee and 23 administrative villages, and is run through by the Puxiu Highway. The town has a territory area of 35 km2, a cultivated area of 28,275.5 mu, including 13,558.5 mu of non-irrigated land and 4,617 mu of irrigated land, a per capita cultivated area of 0.35 mu, a reclamation area of 9,675.9 mu, a shelter forest area of 455 mu, a coastline of 25 kilometers and 17 reclamation areas (including 6 reclamation areas of over 1,000 mu). In 2010, the town’s population was 80,112, and the per capita net income of farmers was 11,635 yuan. Jingfeng Town—Jingfeng Town is located in the east of Hui’an County,

bordering Meizhou Bay on the north, the Taiwan Strait on the east and Dagang Bay on the south. The town has a land area of 51.7 km2, and governs 21 administrative villages, with a population of 65,000. This town boasts an advantaged geographic location, and convenient sea, land and air traffic. The town has a coastline of 25 kilometers and a sea area of 170,000 mu, and abounds with fishery resources. It is a well-known strong construction town, and has a construction workforce of over 10,000. In 2010, the per capita net income of farmers was 6,980 yuan.

3.3 Socioeconomic Profile of the Affected Villages The Project involves 6 villages in 3 towns of Quangang District, Hui’an County, Quanzhou City, and Xiuyu District, Putian City, including two villages (Shage and Xiaocuo Villages) in Nanpu Town, Quangang District, 3 villages (Shiqian, Shiwei and Daxiang Villages) in Dongzhuang Town, and one village (Songcun Village) in Xiuyu District, Hui’an County. The 6 affected villages has a total population of 23,873 (6,320 households), and an average population of 3.777 per household. The affected villages have a small total cultivated area and a per capita cultivated area of less than 0.1 mu. Xiaocuo Village has the largest per capita cultivated area of 0.247 mu only. The 6 affected villages differ in income structure due to different geographic locations, economic focuses and traditions. 1. Shage and Xiaocuo Villages, Nanpu Town Shage Village has 1,400 households with 4,860 persons, a cultivated area of 820 mu, and a per capita cultivated area of 0.17 mu only. In 2010, per capita net income was 5,610 yuan. The main income sources of villagers are offshore fishing and tidal-flat aquaculture, and the main aquatic products are kelp and hard clam. Due to the small amount of cultivated land, crop cultivation income accounts for a low proportion in gross income. Xiaocuo Village, with 4 village groups, has 182 households with 598 persons, a land area of 1 km2 and a cultivated area of 148 mu. There is a stone material market, and 19 stone factories in the village. The average annual income of villagers is 8,200 yuan. 2. Shiqian, Shiwei and Daxiang Villages, Dongzhuang Town Shiqian Village has 831 households with 4,212 persons; a cultivated area of 1,650 mu, and a per capita cultivated area of 0.39 mu only; in 2010, per capita net income was 18,700 yuan. Shiqian Village has 602 households with 3,384 persons, a cultivated area of 970 mu, and a per capita cultivated area of 0.29 mu only, in 2010, per capita net income was 26,950 yuan. Daxiang Village has 683 households with 3,123 persons, a cultivated area of 345 mu, and a per capita cultivated area of 0.11 mu only. In 2010, per capita net income was 23,150 yuan. The economic conditions and the main income sources of villagers of Shiqian, Shiwei and Daxiang Villages are similar. The main income sources of villagers in the 3 villages are outside employment and doing business, and some villagers live on offshore fishing and tidal-flat aquaculture. Due to the small amount of cultivated land, crop cultivation income accounts for a low proportion in gross income. Since Dongzhuang Town is not suitable for the development of fishery products with high

added value due to its location and marine environment, the yield rate of fishery is low. Many villagers are working outside, or doing business in Guangdong and Zhejiang. 3. Songcun Village, Jingfeng Town Songcun Village has 1,210 households with 4,997 persons, a cultivated area of 600 mu, and a per capita cultivated area of 0.12 mu only. In 2010, per capita net income was 16,500 yuan. Most of the land and sea area of this village has been acquired for port construction projects in recent years. Since the sea area is seriously polluted, most of villagers have abandoned crop cultivation and aquaculture. Jingfeng Town is a well-known ―construction town‖, where many villagers work outside or run construction enterprises, and the main income sources are outside employment and doing business. See Table 3-1.

Table 3-1 Summary of Key Economic Indicators of the Affected Villages Population Average Per capita Per capita # of Labor Cultivated District Town Village Where, population per cultivated net income Remarks households Total force area (mu) men household area (mu) (yuan) This village has no collective sea area, and Xiaocuo 182 598 302 3.28 279 148 0.247 8200 most villagers deal with outside employment, offshore fishing and tidal-flat aquaculture. Quangang Nanpu This village has no collective sea area, and Shage 1400 4860 2673 3.47 3256 820 0.17 5210 most villagers deal with offshore fishing and tidal-flat aquaculture. This village has no collective sea area, and a few villagers deal with offshore fishing and Shiqian 831 4212 2317 5.07 2906 1650 0.39 18700 tidal-flat aquaculture; the main income sources are outside employment and doing business. This village has no collective sea area, and a few villagers deal with offshore fishing and Dongzhuang Shiwei 602 3384 1760 5.62 1967 970 0.29 26950 tidal-flat aquaculture; the main income sources are outside employment and doing business. Xiuyu This village has no collective sea area, and a few villagers deal with offshore fishing and Daxiang 683 3123 1768 4.57 2045 345 0.11 20150 tidal-flat aquaculture; the main income sources are outside employment and doing business. This village has no collective sea area, and a few villagers deal with offshore fishing and Jingsong Songcun 1210 4997 2598 4.13 3398 600 0.12 16340 tidal-flat aquaculture; the main income sources are outside employment and doing business. Total 6320 23873 4908 21174 11418 4.31 13851 4533 0.21 Source: Key Informant Interviews of Each Village.

3.4 Basic Information of the AHs In order learn the basic information of the population affected by sea area and tidal flat acquisition in the Project and the related projects, the survey team conducted a sampling survey on the AHs. The Phase III of the Fujian Meizhou Bay Navigation Improvement Project（Stage 1）affects one household with 9 persons directly. The Phase I of the Fujian Meizhou Bay Navigation Improvement Project, Construction Project of the 5-6# Berths of the Xiaocuo Operation Zone in the Xiaocuo Terminal, Meizhou Bay ,and Construction Project of the 1-2# Berths of the Putou Operation Zone in the Xiuyu Terminal, Meizhou Bay affect 354 households with 1,372 persons (identified to date). 24 households with 100 persons were involved in the sampling survey in total (including one household with 9 persons affected directly by the Project, and 23 households with 91 persons by the related projects), accounting for 70% of all AHs. 3.4.1 Sampling Analysis of the Directly Affected Population The Project affects one household with 9 persons directly. This household has 6 male members and 6 laborers. See Error! Reference source not found.. Table 3-2 Basic Information of Directly Affected Households Relation with head Educational Name Age Gender Occupation of household level XLH Head of household 29 Male Primary school Fishing XDC Father 55 Male Primary school Aquaculture LFZ Month 55 Female Illiterate Aquaculture XLH Brother 35 Male High school Aquaculture XMY Sister-in-law 34 Female Primary school Aquaculture XYY Wife 29 Female Primary school Fishing XXP Son 4 Male Preschool / XXM Nephew 9 Male Primary school / XSL Nephew 7 Male Primary school / The main income sources of this household are offshore fishing and aquaculture. In 2010, its gross income was 612,000 yuan. The agricultural income sources of this household are aquaculture and fishing, and its agricultural income was 550,000 yuan in 2010, accounting for 89.87% of gross income. The average output value of the fixed fishnet demolished for the Project was 22,500 yuan6 in the past 3 years. In 2010, this household’s gross expenditure was 516,340 yuan, in which productive expenses were 440,000 yuan, and the per capita net income of the directly affected population was 19,111 yuan. See Table 3-3 and Table 3-4. Except the demolished fixed fishnet, the affected household also has a large

6 In the Project, the output value of a demolished fixed fishnet is affected by local climate, marine environment and many other factors: When the external environment is favorable, annual output value is 30,000-40,000 yuan; when the external environment is unfavorable, annual output value is 10,000 -20,000 yuan.

amount of aquaculture water surface and tidal flat. The demolition of the fixed fishnet will have little impact on its income.

Table 3-3 Income of Directly Affected Households (2010) 1. Agricultural Where, fishery 2. Other Per capita net Item and sideline Total income income income income Unit yuan yuan yuan yuan yuan Total 550000 550000 62000 612000 19111.11 Percentage 89.87% 89.87% 10.13% 100.00% \

Table 3-4 Expenditure of Directly Affected Households (2010) Item Unit Total Percentage 1. Productive expenses yuan 440000 85.22% Taxes and fees paid yuan 40000 7.75% Seedlings, feeds, etc. yuan 280000 54.23% Labor costs yuan 100000 19.37% Other yuan 20000 3.87% 2. Nonproductive expenses yuan 76340 14.78% Electricity costs yuan 8600 1.67% Water costs yuan 400 0.08% Communication expenses yuan 840 0.16% Educational expenses yuan 5000 0.97% Medical expenses yuan 12000 2.32% Non-staple food expenses yuan 31500 6.10% Other yuan 18000 3.49% 3. Gross expenditure yuan 516340 100.00% yuan/ 4. Per capita gross expenditure household 57371.11 \

3.4.2 Sampling Analysis of the Population Affected by the Related Projects 1. Ethnic and gender analysis Among the 91 persons of the 23 sample households, there are 73 laborers, and the average population per household is 3.96. All the 91 persons are Han people, including 41 women, accounting for 45.05%. Women deal with tidal-flat aquaculture, housework and outside employment mainly. 2. Age structure Among the 91 persons of the 23 sample households, 13 are underage, accounting for 14.29%; 39 are 18-40 years old, accounting for 42.86%; 34 are 40-60 years old, accounting for 37.36%; and 5 are over 60 years old, accounting for 5.49%. See Figure 3-1.

5.49% 14.29%

18岁以下 37.36% 18~40岁 40~60岁 60岁以上 42.86%

Figure 3-1 Age Structure of Sample Households Affected by the Related Projects 3. Educational levels Among the 91 persons of the 23 sample households, 9 are illiterate, accounting for 9.89%; 25 have received primary school education, accounting for 27.47%; 40 have received junior high school education, accounting for 43.96%; 14 have received senior high school / secondary technical school education, accounting for 15.38%; and 3 have received junior college or above education, accounting for 3.30%. See Figure 3-2.

3.30% 9.89% 15.38%

不识字小学 27.47% 初中高中/中专大专及以上

43.96%

Figure 3-2 Educational Level of Sample Households Affected by the Related Projects 4. Land resources The 23 sample households have a very small amount of cultivated land of 11.6 mu only; the average cultivated area per household is 0.50 mu and per capita cultivated area 0.13 mu. Their cultivated land is non-irrigated land mainly, on which vegetables and saplings are grown. 5. Aquaculture sea area and tidal flat The 23 sample households have a total area of aquaculture sea area and tidal flat of 223 mu, an average aquaculture area of 9.70 mu per household and a per capita aquaculture area of 2.45 mu. The main aquatic products are hard clam, kelp and sea

oyster. The survey team has learned that those dealing with tidal-flat aquaculture are 45 years old or so, and have received primary or junior high school education, usually working as couples. 6. Household income and expenditure In 2010, the per capita net income of the households affected by the related projects was 6,718.02 yuan. Employment income is dominant in their gross income, accounting for 48.12%, followed by operating income, which accounts for 20.53%. Agriculture and sideline operations are no longer their main income source, accounting for 18.73% only (in which fishery income7 accounts for 17.58% of gross income). See Table 3-5. The gross expenditure of the sample households was 672,330 yuan in 2010, in which productive expenses were 193,110 yuan, accounting for 28.72%, and nonproductive expenses were 479,220 yuan, accounting for 71.28%. See Table 3-6.

Table 3-5 Income of Sample AHs of the Related Projects (2010) Item Unit Total Percentage 1. Agricultural and sideline income yuan 155150 18.73% Where, fishery income yuan 145600 17.58% 2. Wage income yuan 81000 9.78% 3. Employment income yuan 398500 48.12% 4. Operating income yuan 170000 20.53% 5. Other income yuan 23500 2.84% Total yuan 828150 100.00% Per capita net income yuan 6774.78 \

Table 3-6 Expenditure of Sample AHs in 2010 Item Unit Total Percentage 1. Productive expenses yuan 193110 28.72% Taxes and fees paid yuan 23450 3.49% Seedlings, feeds, etc. yuan 92760 13.80% Labor costs yuan 25600 3.81% Other yuan 51300 7.63% 2. Nonproductive expenses yuan 479220 71.28% Electricity costs yuan 9880 1.47% Water costs yuan 5860 0.87% Communication expenses yuan 28800 4.28% Educational expenses yuan 68900 10.25% Medical expenses yuan 61080 9.08% Non-staple food expenses yuan 237000 35.25%

7 Tidal-flat aquaculture is highly restricted by natural conditions (e.g., water quality, climate). According to the survey, typhoons would often lead to infrastructure damage or aquatic product escape, so income is highly unstable. A major loss is usually suffered every 2-3 years.

Item Unit Total Percentage Other yuan 67700 10.07% 3. Gross expenditure yuan 672330 100.00% 4. Average gross expenditure per yuan 29231.74 \ household 5. Per capita gross expenditure yuan 7388.24 \

3.5 Analysis of the Minority Population 3.5.1 Minority Population in the Beneficiary Area According to the data provided by the Ethnic and Religious Affairs Bureaus of Quanzhou and Putian Cities, there are ethnic minorities such as Hui, She and Mongolian in the 33 townships along Meizhou Bay. In 2010, the 33 townships had a total population of 1,876,300, in which minority population was 42,294, accounting for 2.25%. There is no minority township among these townships. There are Hui, She and Mongolian people in the 15 villages in the project area. In 2010, the 15 villages had a total population of 22,280, in which minority population was 1,251, accounting for 5.61%. There is no minority village among these villages. See Table 3-7. All minority groups in the project area live together with the local dominant ethnic group (Han people), and there is no ethnic boundary in daily intercourse. These ethnic groups have no ancestral domain or distinctive residential area. Socioeconomic activities of the ethnic minorities differ slightly from the Han people in terms of economic, social and political institutions. All ethnic groups in the project area live in harmony, which is shown in the following: 1) All of them speak mandarin Chinese in daily communication; 2) In the project area, people of all ethnic groups contact closely without regard to ethnic identity; and 3) The income sources of the minority people are the same as those of the Han people, and are outside employment, fishing and aquaculture mainly. 3.5.2 Minority Population in the Affected Population According to the survey, there is no minority community in the affected areas of the Project and the related projects. Over 98% of the affected population is Han people.

Table 3-7 Distribution of the Minority Population in the Project Area (2010) District / Percentage of ethnic Is it a minority No. City Town Village Population Minority population Ethnic group county minorities (%) community? 1 Jiedong 972 43 4.42 She, Mongolian No Jieshan 2 Shidong 1420 121 8.52 Hui No 3 Zhengrong 1328 69 5.20 Hui No 4 Quangang Fengwei Qianting 1908 146 7.65 Hui No 5 District Guocuo 879 54 6.14 Hui, Mongolian No 6 Liucuo 676 31 4.59 Hui No 7 Nanpu Nanpu 823 42 5.10 Hui No 8 Quanzhou Xiaocuo 598 32 5.35 Hui No 9 Ducuo 3210 189 5.89 Hui No Jingfeng 10 Songcun 4997 142 2.84 Hui No 11 Qianqun 897 74 8.25 Hui No Hui’an Xiaozuo 12 Qianfeng 1980 178 8.99 Hui No County 13 Wufeng 1487 67 4.51 Hui No 14 Chongwu Dazha 435 21 4.83 Hui No 15 Tianbian 670 42 6.27 Hui No Total \ 22280 1251 5.61 \ \

3.6 Social Gender Analysis At the preparation stage, the owner of the Project, the local ocean and fishery department, and other competent departments attached great importance to women’s rights, interests and status in the Project. To learn the division of labor, family status and social status of women in the project area, the survey team visited the local women’s federations, and paid special attention to women in the sampling survey. 3.6.1 Overall Development of Women in the Project Area The Project involves Quangang District and Hui’an County, Quanzhou City, and Xiuyu District, Putian City. In the project area as a whole, with the implementation of the Women’s Development Outline of Fujian Province (2001-2010) and the Children’s Development Outline of Fujian Province (2001-2010), programs for women and children have been balanced with society and economy in the two cities. (1) Women’s education According to the Statistical Reports on Women’s Development Monitoring of Quanzhou and Putian Cities, as of 2010, nine-year compulsory education had been fully realized in the two cities, the enrollment rate of girls of school age was over 99%, and annual drop-out rate was below 0.5%. At the junior high school stage, the gross enrollment rate of girls was 100% and their annual drop-out rate below 3%. In 2010, girls accounted for 42.3% of all students of regular institutions of higher learning and 68.9% of all students of higher education institutions for adults in the two cities. (2) Women’s employment, and protection of their rights and interests According to the Statistical Reports on Women’s Development Monitoring of Quanzhou and Putian Cities, publicity on the Labor Contract Law, the Law on Labor Dispute Mediation and Arbitration, and the Regulations for the Implementation of the Labor Contract Law was strengthened during the inspection on the implementation of the Labor Contract Law in the two cities in 2010 to further improve the legal awareness of employers and laborers. The inspection was focused on if employers had signed lawful labor contracts with employees to protect the lawful rights and interests of the labor, including female employees. It was required that female employees should not be dismissed or their labor contracts terminated unilaterally on the ground of marriage, pregnancy, maternity leave or lactation. To date, the labor contract coverage rate of female employees of enterprises in the two cities is over 95% and the contracting rate of female employees is over 88%. (3) Women’s participation in social decision-making and management According to the Statistical Reports on Women’s Development Monitoring of Quanzhou and Putian Cities, female officials accounted for 42.95% of all officials of public institutions in the two cities in 2010, women accounted for 40.67% of all community committee members, and 95.8% of heads of village women’s congresses were women. Women are a main force in community- and village-level grass-root autonomous organizations. 3.6.2 Survey on Women’s Development The RAP preparation team paid special attention to women in the sampling survey. Among all the 24 sample households with 100 persons, there were 44 women, accounting for 44%. Based on the questionnaire survey, women in the project area

are almost the same as men in education, employment, and family and social status. (1) Women’s education The socioeconomic survey shows that men and women in the project area differ slightly in educational level, but less women have received junior high school or above education than men. (2) Women’s employment and labor The socioeconomic survey shows that men and women in the project area have similar employment structures. For example, 41.07% of men work outside, slightly higher than that of women (38.64%); 28.57% of women deal with crop cultivation or aquaculture, slightly higher than that of women (27.27%); 3.57% of men do business, slightly lower than that of women (6.82%). In addition, 4.55% of the women in the sample households are unemployed, while no man is unemployed. It can be seen that the employment status of women is worse than that of men, mainly because women have to do housework and take care of the family, and also because some women have poorer employment skills and a lower education level than men. (3) Division of labor by gender According to the door-to-door socioeconomic survey and the interviews with some women, a couple dealing with fishery or aquaculture or working outside is the main pattern of family division of labor in the project area. In 16.67% of the sample households, a couple does farm work together, and in 33.33% of the sample households, a couple works outside together. In households in which the husband works outside, all farm work is done by the wife. The division of labor by gender exists in fishery activities, in which men deal with not only more manageable tidal-flat aquaculture, but also more physically demanding offshore fishing and net aquaculture activities, while most women deal with less physically demanding offshore fishing and tidal-flat aquaculture. (4) Participation in public affairs According to the door-to-door socioeconomic survey and the interviews with some women, women in the project area participate in village public affairs at a low level, and the female respondents rarely express opinions on public affairs, and would attend village meetings only when husbands are absent. If their husbands are at home, over 70% of the female respondents think their husbands should attend such meetings.

4 Laws, Regulations and Policies 4.1 Laws and Policies on Resettlement State laws and regulations  Land Administration Law of the PRC (amended on August 28, 2004)  Fisheries Law of the PRC (amended on August 28, 2004)  Law of the PRC on the Administration of Sea Areas (effective from January 1, 2002) Local regulations and policies  Measures of Fujian Province for the Implementation of the Fisheries Law of the PRC (effective from May 1, 2007)  Notice of the Fujian Provincial Government on Issuing the Measures of Compensation for the Use of Sea Areas of Fujian Province (effective from May 1, 2008) Bank policies:  Operational Policy OP4.12 on Involuntary Resettlement and appendixes (effective from January 1, 2002)  Bank Procedure BP4.12 on Involuntary Resettlement and appendixes (effective from January 1, 2002)

4.2 Key Provisions of Laws, Regulations and Policies on Resettlement 4.2.1 Land Administration Law of the PRC Article 11 Certifications of ownership or use right of wooded land and grassland and the uses or of water surface and tidal flat for breeding purpose shall be managed according to related provisions of the Forest Law of the People's Republic of China, the Grassland Law of the People's Republic of China and the Fisheries Law of the People's Republic of China. 4.2.2 Fisheries Law of the PRC Article 10 The state encourages entities owned by the whole people, collectively owned entities and individuals to make full use of suitable water surface and tidal flat to develop aquaculture. Article 11 In conformity with the overall arrangement made by the state for utilization of water areas, governments at or above the county level may assign state-owned water surfaces and tidal flats that have been designated for aquaculture to entities owned by the whole people and collectively owned entities to develop aquaculture, and after examining their qualifications grant those entities aquaculture licenses to confirm their rights to the use of such water surfaces and tidal flats. Water surfaces and tidal flats used by entities owned by the whole people, water surfaces and tidal flats owned by collectives, and those owned by the whole people but used by collectively owned entities may all be contracted to collectives or individuals to develop aquaculture. Ownership and rights to the use of water surfaces and tidal flats shall be protected by law and shall not be subject to encroachment by any entities or individuals. Article 12 Governments at or above the county level shall give priority to local

fishery producers when issuing aquaculture licenses. Article 13 Disputes over the ownership and rights to the use of water surfaces or tidal flats under state planning shall be settled through the procedures stipulated in the applicable laws. Before such disputes are settled, no party may disrupt fishery production in the disputed areas. Article 14 Collectively owned water surfaces and tidal flats for state construction shall be acquired in accordance with the Land Administration Law of the PRC. 4.2.3 Law of the PRC on the Administration of Sea Areas Article 2 The term ―sea area‖ as mentioned in this law shall refer to the interior waters, the surface, body, seabed and bottom soil of the territorial seas… Article 3 The sea areas shall belong to the state, and the State Council shall exercise ownership over the sea areas on behalf of the state. No entity or individual may usurp on, buy or sell or by any other means transfer sea areas. The right to use sea areas shall be lawfully obtained for the use of sea areas by any entity or individual. Article 16 The entities and individuals may apply to the maritime administrative department of the people's government on the county level or above for using the sea areas. When applying for using the sea areas, the applicant shall submit the following written materials: (1) an application for using sea areas; (2) materials justifying the use of sea areas; (3) relevant certification materials of credit standing; (4) other written materials as provided by law or regulations. Article 17 The maritime administrative department of the people's governments on the county level and above shall, according to the functional divisions of the seas, be responsible for the examination of applications for using sea areas and shall, pursuant to this Law and the provisions of the people's government of the provinces, autonomous regions and municipalities directly under the Central Government, submit the application to the competent people's government for approval. Article 18 The use of sea for the purposes as mentioned below shall be subject to the approval of the State Council: (1) the use of sea for projects of filling up the sea up to 50 hectares or more; (2) the use of sea for projects of encircling the sea up to 100 hectares or more; (3) the use of sea for projects of using the sea up to 700 hectares or more without changing the natural qualities of the sea areas; (4) the use of the sea for key state construction projects; (5) the use of the sea for other projects as provided by the State Council. The power to examine and approve the use of the sea for purposes not mentioned in the preceding paragraph shall be provided by the people's government of the provinces, autonomous regions and municipalities directly under the Central Government under the authorization of the State Council. Article 19 After an application for using sea areas is lawfully approved and if the State Council approves the use of the sea, the maritime administrative department of

the State Council shall register it in detail lists, and issue a certificate to the applicant indicating the right to use sea areas. If the application for using sea areas is approved by the local people's government, the local people's government shall register it in detailed lists, and issue a certificate to the applicant indicating the right to use sea areas. The applicant for using sea areas shall obtain the right to use sea areas on the day when he obtains the sea area use certificate. Article 25 The maximum term for using sea areas shall be defined according to the following purposes: (1) 15 years for aquatic breeding; (2) 20 years for ship breaking; (3) 25 years for tourism and entertainment; (4) 30 years for salt production and mineral exploitation; (5) 40 years for public interests; (6) 50 years for construction projects including ports, shipbuilding factories, etc. Article 30 For the purpose of public interest or the security of the state, the people's government shall made the approval may lawfully take back the right to use sea areas. If the right to use sea areas is withdrawn pursuant to the provisions of the preceding paragraph prior to the expiration of the term of use, appropriate compensations shall be made to the right holder. Article 33 The state practices the system of using sea areas on the paid basis. Any entity or individual that uses a sea area shall pay royalties for the use according to the rates as provided by the State Council. The royalties for using sea areas shall, pursuant to the provisions of the State Council, be turned over to the state treasury. Article 36 The royalties for the use of the sea for the following purposes may, pursuant to the provisions of the public fiscal department of the State Council and the maritime administrative department of the State Council, and upon the approval of the public fiscal department and the maritime administrative department of competent people's governments, be paid at reduced rates or be exempted: (1) for public facilities; (2) for key construction projects of the state; (3) for aquatic breeding. 4.2.4 Measures of Fujian Province for the Implementation of the Fisheries Law of the PRC Article 6 Entities and individuals dealing with fishery shall observe the regulations on marine traffic safety and maintain the order of marine traffic. It is strictly prohibited to deal with fishing or aquaculture in navigation channels, harbor areas and water source reserves. Article 9 Entities and individuals are encouraged to make full use of suitable sea areas and inland water areas to develop aquaculture or extend ecological aquaculture. Article 12 If any entity or individual is to use any sea area intended for aquaculture under aquaculture planning or any inland water area owned by the whole

people for aquaculture, it shall obtain an aquaculture license according to law, and deal with production as permitted by such aquaculture license. Article 13 If collective economic organization has obtained the right to use any sea area or inland water area owned by the whole people for aquaculture according to law, such sea area or inland water area may be contracted by individuals or the collective within the statutory period of use. Any collectively owned inland water area may be contracted by the collective economic organization to individuals or the collective for aquaculture. The contract issuer and the contractor shall enter into a contract. Administrative departments for fishery of local governments at or above the county level shall strengthen guidance and service for contracting. Article 14 The right to use any sea area or inland water area for aquaculture, or the contract and management right acquired according to law shall be protected by law, and may be transferred or leased according to law. If any collectively owned inland water area for aquaculture, or sea area or inland water area owned by the whole people whose right of aquaculture has been granted is acquired for public interest, the relevant formalities shall be settled and reasonable compensation granted in accordance with the authorities and procedures stipulated in the applicable laws and regulations. Specific compensation measures shall be developed by the provincial government. Article 23 Oceanic fishing is encouraged. Local governments at or above the county level in coastal areas shall provide financial, material and technical support. Article 24 A fishing quota system shall be practiced on the principle that the amount of fishing shall be less than the growth of fishery resources. Article 25 Entities and individuals with fishery vessels must apply for vessel registration with regulators of fishery affairs and fishery harbors, pass the inspection of the fishery vessel inspection department, receive a certificate of inspection of fishery vessel, and obtain a book of signatory navigation before sailing. Article 26 All entities and individuals dealing with fishery shall apply for a fishing license with administrative departments for fishery of local government at or above the county level according to law, and observe the type of work, location, time limit, fishing gear quantity and fishing quota specified in such license. Anyone who has not obtained a fishing license shall not deal with fishing. 4.2.5 Notice of the Fujian Provincial Government on Issuing the Measures of Compensation for the Use of Sea Areas of Fujian Province Article 2 A holder of the right to use sea areas referred to herein shall mean any entity or individual who has obtained sea area use certificate according to law, or any entity or individual who has used a sea area for aquaculture from before the promulgation of the Law of the PRC on the Administration of Sea Areas on January 1, 2002 to date but has not obtained a sea area use certificate. Article 4 Administrative departments of marine affairs of governments at or above the county level in coastal areas shall supervise and manage the recovery and compensation of the right to use sea areas adjacent to their jurisdictions. Article 6 Sea area use may be compensated for in cash, or by replacement of the

right to use sea areas or equity holding according to law. Article 7 For the recovery of the right to use sea areas, sea area compensation fees, and compensation fees for offspring and attachments shall be paid. Article 8 Sea area compensation fees shall be equal to the sea area compensation rate multiplied by the sea area grading factor. Sea area compensation rates and sea area grading factors shall be fixed by the provincial government based on the type of sea area use, the value of the right to use sea areas, the demand for sea area use, the degree of impact on the marine environment, the level of the national economy and social affordability. Article 9 The amount of sea area compensation shall be agreed on by the government recovering the right to use sea areas and the holder of the right to use sea areas, but shall not be less than the rate specified in Article 8 above. Article 10 For anyone who has used a sea area for aquaculture from before the promulgation of the Law of the PRC on the Administration of Sea Areas on January 1, 2002 to date but has not obtained a sea area use certificate, sea area compensation fees shall be granted at 80% of the rate specified herein. Anyone who has not applied for a sea area use certificate within 6 months from the effective date hereof shall not be compensated. Article 11 Seedling compensation fees shall include the cost of the offspring and a reasonable value of unfinished products. Compensation fees for sea area attachments shall be compensated for at replacement cost and by reference to newness. The amount of compensation for offspring and sea area attachments shall be agreed on by the government approving sea area use and the holder of the right to use sea areas according to paragraphs 1 and 2 of this Article 11, or determined by a qualified appraisal agency appointed jointly by them. Article 13 The right to use sea areas shall be recovered as follows: (1) publishing an announcement for recovering the right to use sea areas; (2) going through registration of compensation for sea area use; (3) signing a compensation agreement for sea area use; (4) paying compensation fees for sea area use; (5) recovering the right to use sea areas. Article 14 In case of recovery of the right to use sea areas, county-level governments in coastal areas shall publish an announcement in the townships and villages adjacent to such sea area to identify subjects of compensation. Such announcement shall include: (1) the location, boundary and size of the sea area to be recovered. (2) the right to use the sea area to be recovered; (3) the use of the sea area to be recovered; (4) the location for going through the compensation registration formalities; (5) entity recovering the right to use sea areas; (6) prohibitions and other matters to be announced. The period of announcement shall be 15 days; from the date of publication of the announcement, no entity or individual shall rush grow or build sea area attachments

within the declared sea area. Administrative departments of marine affairs of county governments in coastal areas shall determine subjects of compensation and the use of sea areas by them within 10 days of expiry of the announcement, and disclose such information in the townships and villages adjacent to such sea area for 5 days. Article 16 The original government approving sea area use shall sign a compensation agreement for sea area use with the subject of compensation (the original holder of the right to use sea areas). Article 21 Before recovering the right to use sea areas, governments at or above the county level in coastal areas shall ensure that the original holder of the right to use sea areas is compensated according to the compensation agreement for sea area use. Compensation fees for sea area use shall be paid timely and fully. No entity or individual misappropriate compensation fees for sea area use. 4.2.6 Bank Policy on Involuntary Resettlement 10. The implementation of resettlement activities is linked to the implementation of the investment component of the project to ensure that displacement or restriction of access does not occur before necessary measures for resettlement are in place. For impacts covered in para. 3(a) of this policy, these measures include provision of compensation and of other assistance required for relocation, prior to displacement, and preparation and provision of resettlement sites with adequate facilities, where required. In particular, taking of land and related assets may take place only after compensation has been paid and, where applicable, resettlement sites and moving allowances have been provided to the displaced persons. For impacts covered in para. 3(b) of this policy, the measures to assist the displaced persons are implemented in accordance with the plan of action as part of the project. 15. Criteria for Eligibility. Displaced persons may be classified in one of the following three groups: (a) those who have formal legal rights to land (including customary and traditional rights recognized under the laws of the country); (b) those who do not have formal legal rights to land at the time the census begins but have a claim to such land or assets—provided that such claims are recognized under the laws of the country or become recognized through a process identified in the resettlement plan; and (c) those who have no recognizable legal right or claim to the land they are occupying.

4.3 Policies and Compensation Rates of the Project For the Project, the qualification identification criteria, property appraisal rates and compensation rates stipulated in the applicable policies shall not be varied without the approval of the Bank. 4.3.1 Policies of the Project According to the above RPF, the objective of the Project’s resettlement policies is to minimize negative impacts from the occupation of sea areas, compensate for properties of those adversely affected at replacement cold, and assist them in their efforts to improve their living standard or at least to restore it. The policies of the Project are as follows:

 Notification in advance Such notice includes the project name, scope of construction, date of relocation and implementation period. One year before project commencement, project information has been publicized by means of television, broadcast, newspaper, website and posting, and the town governments and the AHs have been notified in the form of open letter or notice in order to obtain their understanding and support, and minimize their losses.  Reasonable compensation The compensation rates of other ongoing projects in the project area will be used as a reference for the Project. The local ocean and fishery bureaus, government departments concerned, MBHAB, the FPMO and the appraisal agency will appraise the impacts on the AHs, develop compensation and resettlement programs, and finally enter into compensation and resettlement agreements with the AHs.  Other assistance measures 1. The FPMO will provide employment information (2-3 times) together with the labor and social security departments of Quanzhou City and Hui’an County, and give 2/3-day free skills training to the AHs (2-3 times) from project commencement to help them switch to other industries, and restore their production and income as soon as possible. 2. Eligible fishermen may participate in endowment insurance according to Hui’an County’s regulations on new-type rural social endowment insurance. 4.3.2 Compensation rates During project implementation, the fixed fishnets of the AHs will be demolished, and their production will be affected. There are two options of resettlement implementation. First, the owner will identify affected fishnets and other fishing facilities, and income losses, and grant one-time cash compensation in consultation with the Hui’an County Ocean & Fishery Bureau, the town governments and village committees concerned, and the AHs. Second, the AHs will be relocated on the basis of consultation. With the assistance of the Hui’an County Ocean & Fishery Bureau, displaced persons may look for suitable sea areas for fixed fishnet fishing out of the navigation channels themselves, their affected fixed fishnets and other fishing facilities will be compensated for at rates not less than replacement cost, and a moving subsidy will be paid.

Table 4-1 Compensation Rates (Replacement Cost) for Demolished Fixed Fishnets and Other Attachments of Reference Projects Type of Compensation No. Unit Specification attachment rate The perimeter of each net is about 60m, 1 Fixed fishnet / overall length is about 36m (net body 30m and 9 yuan/jin pocket 6m), and each net weighs 280 jin. 20m long, 35-46cm in diameter, 1.4-1.6cm in 5,900 2 Steel pipe pile / wall thickness, thick in the middle and fine at yuan/ton both ends, with a 1m solid tube at both ends,

weighing about 3 tons 3 Guy rope m 1.5 jin/m 8.5 yuan/jin Stone stake 700 yuan 4 / Granite for guy rope each 5 Cross rope m White rope, 40# 8.5 yuan/jin 6 Tail rope m White rope, 40# 8.5 yuan/jin 700 yuan 7 Tail stone / Granite each

5 Income Restoration Measures for APs In order to protect the interests of the APs, the RAP preparation team has developed these programs in consultation with the PMO, the project owner and the APs. This chapter will describe the restoration programs and specific measures for the APs affected directly by the Project (identified resettlement impacts) (see Appendixes 3, 4 and 5). 5.1 Objective of Resettlement The objective of resettlement of the Project is to ensure that the APs receive full compensation for their losses, reasonable resettlement and good rehabilitation, so that they can share the benefits of the Project, and also to provide subsidies for their temporary difficulties, so that their income level and living standard are improved or at least restored to pre-project levels in real terms. 5.2 Income Restoration Measures 10 fixed fishnets and other fixed fishing attachments for sea area fishing will be demolished for the Project, affecting one household with 9 persons in Xiaocuo Village, Nanpu Town, Quangang District. The fixed fishnets are installed in Songcun Village, Jingfeng Town, Hui’an County. 5.2.1 Income Loss Analysis The main income sources of the household with 9 persons affected directly by the Project are fishing and aquaculture. The sea area near Songcun Village where the fixed fishnets are to be demolished has been polluted to some extent due to the construction of chemical plants in recent years, and the output level of fishery is low. In addition, the operating period of fixed fishnets in this area is 4 months (late fall and early winter). Out of the fishing period, fishermen often work outside. The income loss from the demolition of the 10 fixed fishnets accounts for 36.76% of the AH’s gross income.

Table 5-1 Income Loss Analysis of AHs # of fixed Annual output Income loss Annual gross Income loss Project fishnets value per unit (yuan) income (yuan) rate (%) demolished (yuan) Project 10 22500 225000 612000 36.76% (Stage 1)

5.2.2 Income Restoration Program To minimize the adverse impact of fixed fishnet demolition on the AHs, and restore their production and livelihoods timely and effectively, the owner and the FPMO have designed the following compensation and resettlement options in consultation with the Hui’an County Ocean & Fishery Bureau, the town governments and village committees concerned, and the AHs in accordance with the applicable regulations and polices of the state, and the Bank’s policy and procedure on involuntary resettlement, available to the AHs at their option: 1. One-time cash compensation During resettlement implementation, the Hui’an County Ocean & Fishery Bureau

will offer appraisal agencies at the option of the AHs. The appraisal agencies will appraise fishery income losses and investments in productive materials reasonably. If there is no objection, the appraised price will be the final compensation price. 2. Relocation through consultation Displaced persons may look for suitable sea areas for fixed fishnet fishing out of the navigation channels themselves, their affected fixed fishnets and other fishing facilities will be compensated for at rates not less than replacement cost, and a moving subsidy will be paid. 1) The amount of the moving subsidy will be agreed on between displaced persons and the owner; 2) The compensation rates for the affected fixed fishnets and other fishing facilities will not be less than replacement cost (see Table 4-1). In addition, whichever option is chosen, eligible APs are also entitled to the following resettlement measures: A. Social security If any household still has any land, tidal flat or aquaculture water surface after withdrawal of the right to use sea areas, it may be included in local new rural insurance; if any household has no land, tidal flat or aquaculture water surface after withdrawal of the right to use sea areas, it will be included in the local endowment insurance for land-expropriated farmers (fishermen do not have to pay any expense other than new rural insurance premiums)8. (1) New rural insurance Participants: All urban and rural residents registered within the administrative area of Quangang District, having attaining 16 full years (excluding students at school), and having not participated in the basic endowment insurance for public institutions or urban workers may participate in new-type rural social endowment insurance (hereinafter, new rural insurance) voluntarily at their places of household registration. Fund raising: a) Personal payment: The payment rate shall be 100-1,200 yuan per annum, and 100 yuan shall make a payment level. Participants may choose payment level independently, and those paying more will receive more. Participants shall pay premiums on an annual basis in principle. b) Collective subsidy: Where conditions permit, a village (community) collective shall provide subsidies to participants, and the subsidy rate shall be determined democratically at a village (community) congress. Other economic organizations, social welfare organizations and individuals are encouraged to provide subsidies to participants. c) Government subsidy: Depending on the payment level, the subsidy rate shall be 30-50 yuan per capita per annum. The policy also stipulates that for Level 1-2 (moderate) disabled persons identified by the disabled persons’ federation department, and five-guarantee

8 Subject to the Interim Regulations on the New Social Endowment Insurance for Rural Residents of Quangang District (QDG General [2011] No.191); if any household has no land, tidal flat or aquaculture water surface after withdrawal of the right to use sea areas, it will be included in the local endowment insurance for land-expropriated farmers

households identified by the civil affairs department, the government shall pay endowment insurance premiums for them at 100% of the minimum payment level. For households receiving minimum living security support identified by the civil affairs department in the previous year, and subjects of family planning whose only child is dead or disabled, or suffers from any operative complication identified by the family planning department, the government shall pay endowment insurance premiums for them at 50% of the minimum payment level. For couples aged 45-49 years having given birth to two daughters or one child and complying with the family planning policy, 20 yuan shall be added to the payment subsidy of not less than 30 yuan per capita per annum. d) Benefit payment and management: i) Participants who have participated in new rural insurance, have attained 60 full years, and have not participated in the basic endowment insurance for public institutions or urban workers may receive pensions on a monthly basis. ii) The pension on new rural insurance consists of a basic pension and a personal account pension, where the former shall be paid fully by the government at the prevailing rate of 55 yuan per capita per month, and the latter shall be the full balance of the personal account divided by 139. (2) Endowment insurance for land-expropriated farmers If any household has no land, tidal flat or aquaculture water surface after withdrawal of the right to use sea areas, it will be included in the local endowment insurance for land-expropriated farmers (fishermen do not have to pay any expense other than new rural insurance premiums). Any land-expropriated farmer eligible to receive new rural insurance benefits shall also be granted pensions for land-expropriated farmers at the average difference compensation rate between urban and rural minimum living security benefits of Quangang District in the previous year (not les than 90 yuan per capita per month). B. Employment training Since the villages affected by the Project are close to the urban area, and many villagers work on a flexible basis, such as outside employment, small commodity distribution and house lease, the APs are able to obtain other job opportunities easily to restore their income. The owner of the Project will provide employment information to the APs, recommend them to employers and give priority to local labor during project construction in coordination with the local labor and social security department so as to create employment and income-generating opportunities for them. In addition, the APs will also be subjects of skills and employment training, and may attend skills training organized by the labor employment department voluntarily for free in order to improve labor and income-generating skills. Such training includes agricultural skills training, pre-job training and nonagricultural vocational training Training will be financed by special government funds and project training funds. See Table 5-2.

Table 5-2 Funding sources of training Funding source Project Type of training Scope Special Project training

government funds funds Use and repair of farm √ / implements Agricultural Balanced fertilization skills for √ / skills longan Greenhouse vegetable √ √ cultivation Fisher skills Sailor training √ / Expertise on medical apparatus √ √ Expertise on timber √ √ Business management √ √ Meizhou Bay Navigation Poultry and livestock breeders √ √ Improvement Employment Motorcycle repair √ √ Project training for rural (Phase 3, labor transfer Building painting √ √ Stage 1) (Sunshine Concrete and masonry work √ √ Project) Tailoring √ √ Shoe making skills √ √ Jewelry and stone sculpture √ √ skills Business start-up √ / Disaster relief √ / Protection of rights and Other √ √ interests Disease prevent and treatment √ / C. Employment The APs affected by sea area withdrawal will be eligible for public welfare jobs offered by the government and jobs offered by the project owner. According to the interview with the labor and social security bureau, subjects of employment assistance involved in the Project include laborers who can hardly get employment due to the loss of sea areas, physical illness or low skill level. 1) Public welfare job placement by the government: Persons having difficulty in employment may apply for employment assistance with their village committees and the town government, and be included in employment assistance with the confirmation the village and town employment service agencies. Job placement by the project owner: During project implementation and operation, the PMO and the project owner should make unskilled jobs first available to the APs in consultation with the construction agency to create employment and income generation opportunities. Such unskilled jobs include transport workers, drivers, security guards and clerks. In addition, the contract between the project owner and the construction agency should specify wage levels and labor contracts.

6 Resettlement Budget and Management 6.1 General Budget During resettlement, the Hui’an County Ocean & Fishery Bureau, the owner, the town governments and village committees concerned will compensate the AHs reasonably on the basis of adequate consultation. Based on replacement cost, the resettlement costs of the Project are 1,230,300 yuan, which will be included in the total costs of the Project. The Budget of the Project see Table 6-1 Table 6-1 Budget of the Project Amount of No. Item compensation Percentage Remarks (0,000 yuan) The compensation rates for fixed fishnets, other attachments and Compensation for relocation will be fixed by reference 1 productive resources 52.9 43.00% to the compensation program for for fishery fishnets of the Douwei Dockyard and Sinochem projects in Hui’an County. Survey, evaluation 2 20 16.26% and design costs 3 Training costs 10 8.13% 4 Administrative costs 2 1.63% 5 Subtotal of 1-4 84.9 69.01% Contingencies (10% 6 9.43 7.66% of total costs) 7 M&E costs 28.7 23.33% Estimated 8 General budget 123.03 100.00% Note: This table does not include compensation for household income.

6.2 Fund Use Plan The owner will pay compensation fees timely and fully to the APs after consulting with them about compensation for income losses according to the implementation schedule of the Project.

6.3 Disbursement, Management and Monitoring of Funds 6.3.1 Disbursement of Funds In order that resettlement funds are paid to the APs timely and fully in accordance with the compensation policies specified in the RAP, resettlement funds will be disbursed on the following principles: (1) All costs related to resettlement will be included in the general budget of the Project; (2) Compensation fees will be paid before sea area use; (3) To ensure the successful implementation of resettlement, MBHAB will ensure that all funds are paid timely and fully through an internal financial supervision agency. The disbursement process of resettlement funds of the Project is as follows: MBHAB will pay compensation fees to the Hui’an County Finance Bureau, which

will deposit compensation fees in the designated bank or credit cooperative account. The bank or credit cooperative will pay compensation fees according to compensation agreements between the town governments and the AHs. 6.3.2 Management and Monitoring of Funds 1. Resettlement funds must be disbursed in strict conformity with the compensation rates specified in the applicable state regulations on land acquisition and the policies in the RAP. 2. The FPMO will appoint a consulting agency to conduct regular internal audits on the use of resettlement funds by the resettlement offices. 3. The municipal finance and audit departments have the power to monitor and audit the use of resettlement funds. 4. The external M&E agency will perform follow-up monitoring on the use of compensation fees by the AHs during external monitoring.

7 Institutional Framework 7.1 Agencies for Resettlement Actions The agencies responsible for resettlement planning, management, implementation and monitoring of the Project include:  FPMO  MBHAB  Quanzhou Municipal Ocean & Fishery Bureau, and Land & Resources Bureau  Hui’an County Ocean & Fishery Bureau  Jingfeng Town Government  External M&E agency

FPMO

Quanzhou Municipal Internal M&E Design Ocean & Fishery MBHAB agency Bureau, and Land & Resources Bureau

External M&E Hui’an County Ocean agency & Fishery Bureau

Jingfeng Town Government

AHs

Figure 7-1 Institutional Chart

7.2 Institutional Responsibilities 1. FPMO  Responsible for the coordination and management of the Project  Directing, coordinating and supervising resettlement implementation and progress  Reviewing monitoring reports  Handling conflicts and issues arising from implementation 2. MBHAB  Appointing a design agency to measure the project area  Organizing the socioeconomic survey  Organizing public participation activities

 Organizing and coordinating the preparation of the RAP  Implementing the policies in the RAP  Determining the construction schedule of the Project and coordinating the implementation of the RAP  Managing resettlement information  Disbursing funds and supervising the use thereof  Directing, coordinating and supervising resettlement implementation and progress  Implementing internal monitoring, selecting an external monitoring agency and assisting in external monitoring activities  Reviewing monitoring reports  Handling conflicts and issues arising from implementation  Reporting resettlement progress, fund use and implementation quality to the Bank regularly 3. Quanzhou Municipal Ocean & Fishery Bureau, and Land & Resources Bureau  Carrying through the state policies and regulations on land used for project construction  Participating in the review of the land compensation rates of the Project  Going through the land approval formalities 4. Hui’an County Ocean & Fishery Bureau  Carrying through the state policies and regulations on land used for project construction  Participating in the review of the land compensation rates of the Project  Participating in the socioeconomic survey  Participating in the preparation and review of the RAP  Directing, coordinating and supervising land acquisition and resettlement activities of the Project 5. Jingfeng Town Government  Organizing the socioeconomic survey  Conducting physical registration and fact-finding survey  Organizing public participation activities  Consulting and organizing resettlement programs  Implementing the RAP  Entering into compensation and resettlement agreements with the AHs  Training the staff  Assisting in handling conflicts and issues arising from implementation  Handling and coordinating disputes and appeals of the APs  Giving administrative punishment against illegal acts in resettlement  Reporting resettlement information to MBHAB 6. External M&E agency  Providing technical advice on resettlement Observing all aspects of resettlement planning and implementation as an independent M&E agency, and submitting external resettlement M&E reports to the

Bank

7.3 Organizational setup and staffing The resettlement agencies of the Project are provided with well-trained staff, with a full-time workforce of 13 and a peak workforce of 32, and a smooth channel of communication has been established. See Table 7-1.

Table 7-1 Staffing of Resettlement Agencies of the Project Full-time Resettlement agency Peak workforce Composition workforce FPMO 1 3 Civil servants Civil servants, MBHAB 4 6 technicians Quanzhou Municipal Ocean & Fishery Bureau, and Land & 1 3 Civil servants Resources Bureau Hui’an County Ocean & Fishery 2 4 Civil servants Bureau Jingfeng Town Government 2 8 Civil servants Resettlement external M&E agency 3 8 experts Total 13 32 \

7.4 Measures to Strengthen Institutional Capacity 1) Before the commencement of resettlement, the resettlement staff of the FPMO has been trained, including the Bank’s operational policy on resettlement, the applicable laws and regulations, and the management of resettlement implementation in order to improve the staff’s professional proficiency and policy application capacity. 2) At the resettlement implementation stage, the FPMO will organize backbone resettlement staff to visit domestic Bank-financed projects, and attend training on resettlement policies and other specialized training. See 3) Table 7-2 for the resettlement training program. 4) Sufficient funds and equipment are available to improve working efficiency. 5) Duties are assigned rationally, and sound reward and punishment measures for the resettlement staff have been established to motivate the staff. 6) Establish a computer-based resettlement management information system and strengthen information feedback to ensure a smooth information flow, and leave major issues to the Leading Group; 7) A resettlement management information system has been established to realize computer-aided resettlement data management, and information feedback is strengthened to form a smooth information flow. 8) Reporting and internal monitoring are strengthened in order to solve

problems timely. 9) Independent M&E will be strengthened, and the external M&E agency will point out existing issues for the competent departments and propose suggested solutions.

Table 7-2 Resettlement Training Program Estimated cost No. Scope of training Trainees Frequency Location (0,000 yuan) Resettlement learning tour of Backbone In the 1 domestic Bank-financed resettlement Annually 5 country projects staff Backbone Exchange of resettlement In the 2 resettlement Annually 5 experience country staff

8 Implementation Plan 8.1 Principles for Progress Coordination between Resettlement and Project Construction According to the implementation schedule of the Project, construction will commence in the second half of 2012; the construction period of Stage 1 will be 39 months and that of Stage 2 33 months. The resettlement schedule will be linked up with the construction schedule of the Project; the main part of resettlement will begin in the end of 2011 and end in the first half of 2012. The basic principles of scheduling are as follows: 1) Resettlement should be completed at least one month prior to the commencement of construction; 2) Sufficient time must be allowed for resettlement before the commencement of construction.

8.2 Schedule for Key Resettlement Tasks 8.2.1 Principles for Schedule Preparation 1) The Project should be announced 6 months in advance; 2) MBHAB will hold a relocation mobilization meeting that involves the displaced households and the agencies concerned to disclose the compensation and resettlement policies, and the resettlement options; 3) Compensation fees will be settled and paid after contract signing and before land use; 4) The resettlement work should be inspected so as to satisfy the displaced households. 8.2.2 Resettlement Schedule The general resettlement schedule of the Project has been drafted based on the progress of project construction, and resettlement preparation and implementation. The exact implementation schedule may be adjusted due to deviations in overall project progress. See Table 8-1.

Table 8-1 Resettlement Schedule of the Project No. Resettlement activity Duration Starting time Ending time 1 RAP preparation stage 49d 2011.8.15 2011.10.30 Appointment of the RAP preparation 2 10d 2011.8.15 2011.8.25 agency 3 Socioeconomic survey 20d 2011.8.17 2011.10.15 4 RAP preparation 40d 2011.9.10 2011.10.30 Information disclosure and public 5 30d 2011.8.17 2011.11.30 participation Consultation with competent departments 6 15d 2011.8.17 2011.12.15 and APs 7 Disclosure of the RAP on the Bank’s 0d 2011.2.15 2011.2.15

website Disclosure of the draft RAP and the 8 Resettlement Information Booklet (RIB) to 15d 2012.2.10 2012.2.15 APs 9 Implementation stage 390d 2012.2.20 2013.4.15 10 Detailed measurement survey 8d 2012.3.15 2012.3.23 Execution of resettlement agreements and 11 22d 2012.4.10 2012.5.1 payment of compensation fees 12 Commencement of construction 0d 2012.5.10 2012.5.10 13 Income restoration measures 180d 2012.3.15 2012.8.15 14 Skills training 180d 2012.3.15 2012.8.15 15 M&E 291d 2012.8.1 2015.12.31 16 Baseline survey 5d 2012.8.1 2012.9.1 17 Internal monitoring 16d 2012.12.30 2014.12.31 18 External M&E 270d 2012.12.30 2015.12.31

9 Public Participation and Grievance Redress

Information disclosure, public participation and grievance redress at all stages of the Project are a prerequisite to realizing the project objectives and ensuring that the APs benefit from the Project. According to the field survey, public participation activities involving agencies concerned and AP representatives have been conducted under the leadership of the FPMO and MBHAB at the preparation stage. This chapter will analyze the information disclosure and public participation activities on resettlement only. See Appendix 3 for details.

9.1 Strategy and Methods of Public Participation According to the policies and regulations of the state, Fujian Province and Quanzhou City on resettlement, 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 APs, reduce grievances and disputes, and realize the resettlement objectives properly by developing sound policies and implementation rules on displacement and resettlement, preparing an effective RAP, and organizing implementation properly. The project management agencies should take appropriate measures and consult with the APs by different means: 1. Direct methods  FGD with APs FGDs are held with representatives of the APs or village officials to discuss key concerns of the APs, collect their opinions, and consulted with local governments about these concerns.  Resettlement consultation meeting Resettlement consultation meetings are organized by the resettlement offices with the APs to notify and discuss resettlement options, and solicit their opinions on improving the RAP. 2. Indirect methods The APs reflect grievances, opinions and suggestions through village committees, and resettlement management and monitoring agencies at different levels, and the resettlement offices feed back and handle such grievances, opinions and suggestions according to established procedures.

9.2 Completed Public Participation and Consultation Activities In May 2011, the Bank mission identified the Project. In the Aide-Memoire of the Identification Mission, the Project will involve the acquisition of shallow sea areas, and an RAP will be prepared in consultation with the APs, and the town and county departments concerned. After the identification, the FPMO conducted preparatory work for withdrawal of the right to use sea areas and resettlement, and then conducted mobilization and consultation based on the scope of construction of the Project identified in the FSR. See Table 9-1 for the public participation and consultation completed to date.

Table 9-1 Public Participation Process of APs Time Location Organizer Participants Topic Output Town governments MBHAB MBHAB, town Notification of project Conducting concerned governments, impacts; preliminary preparatory 2011.7 village identification of affected work committees, AP area, policy publicity and representatives mobilization MBHAB, town MBHAB, MBHAB, Hohai Resettlement Defining the governments, village ocean & University, town socioeconomic survey, socioeconomic 2011 committees, locations of fishery governments, affected area and impacts and 8-11 APs department village detailed measurement affected area committees, AHs survey of the Project MBHAB, Quanzhou MBHAB, MBHAB, Hohai Determination of Defining the Municipal Ocean & ocean & University, town preliminary resettlement Fishery Bureau, Hui’an fishery governments, AHs compensation and and 2011 County Ocean & department (many times) resettlement policies and compensation 8-11 Fishery Bureau, town programs policies of the governments, village Project committees, locations of preliminarily APs MBHAB MBHAB, MBHAB, town Discussion of specific Supplementary town governments, issues in resettlement consultation on 2011 governments village policies and programs specific issues 10-11 committees, AHs during RAP finalization Locations of APs MBHAB MBHAB, AHs Learning the Preliminary socioeconomic profile consultation on 2011 and preliminary expectations 10-11 expectations for for resettlement of the APs resettlement

9.3 Information disclosure At the RAP preparation stage, the FPMO, MBHAB, the competent department for withdrawal of the right to use sea areas and the design agency disclosed project information and resettlement policies to the APs in different ways, as shown in Table 9-2.

Table 9-2 Disclosure Plan of Project Information and Policies Document Mode of disclosure Time Location language Introduction and Municipal radio / TV June 2011 / Chinese announcement of the Project stations, newspaper Resettlement policies Municipal radio / TV stations, government August 2011 / Chinese website Notice on RAP disclosure Local Newspapers February 2012 / RIB Distributed to APs After Bank view / Chinese RAP Government website February 2012 and Chinese / Library after Bank view English

9.4 Public Participation Plan for the Next Stage Different participation and consultation activities will be held at different stages. At the project implementation and resettlement stages, the FPMO will also pay attention to public participation and information disclosure, and communicate with the AHs adequately to ensure the successful implementation of the Project. With the progress of project preparation and implementation, the APs should be further consulted in order to handle their issues and requests on resettlement properly and timely so that all issues can be handled before the implementation of the RAP. The resettlement implementing agencies will schedule public participation meetings rationally so that all AHs have an opportunity to be consulted about compensation agreements before they enter into such agreements with the resettlement implementing agencies. The public participation and consultation activities of the next stage include: 1.Release of sea area withdrawal announcement The Yuxiu District Government, the Dongzhuang Town Government and the affected villages will release a sea area withdrawal announcement to identify subjects of compensation. Such announcement will specify the location, boundary, size and proposed use of the sea area to be withdrawn, prohibitions and other matters to be announced. The period of announcement will be 15 days; from the date of publication of the announcement, no entity or individual should rush grow or build sea area attachments within the declared sea area. The Xiuyu District Ocean and Fishery Bureau should determine subjects of compensation and the use of the sea area by them within 10 days of expiry of the announcement, and disclose such information in Dongzhuang Town and the affected villages for 5 days. 2.Go through compensation registration for sea area use; 3.Sign a compensation agreement for sea area use. 4.Compensation and payment schedule; 5.Detailed restoration measures; 6.Issues arising from resettlement implementation; 7.Other concerns of the APs. The schedule for the next stage of consultation between the resettlement offices and the APs is shown in Table 9-3. According to the working schedule of the resettlement offices, public consultation meetings may be held irregularly in the affected towns and villages, and relevant information will be reflected to the project management agencies in the form of report. The monitoring agencies will not only participate in the consultation activities organized by the resettlement offices, but also consult with the APs about monitoring issues, collect their opinions and suggestions, and provide monitoring information to the competent departments at different levels independently.

Table 9-3 Public Participation Plan for the Next Stage

Purpose Mode Time Agency Participants Remarks Soliciting opinions Village from the APs on Opinions on Discussion Resettlement offices, Feb. 2012 committees, project impacts project design meeting agencies involved APs during implementation Newspaper, Disclosure of the Resettlement offices, Disclosure of the government Feb. 2012 APs RAP agencies involved RAP website RAP Handbook Distributed Resettlement offices, RAP Handbook or Feb. 2012 APs or RIB to APs agencies involved RIB Announcing the amount of Village withdrawal of the withdrawal of bulletin Resettlement offices, right to use sea the right to use board, Aug. 2012 Ocean & Fishery APs areas, sea areas village Bureau compensation announcement meeting rates and resettlement options Compensation and resettlement Village for withdrawal of bulletin Resettlement offices, Amount of the right to use board, Aug. 2012 Ocean & Fishery APs compensation and sea areas, village Bureau mode of payment announcement meeting of programs Determination of income Villager Discussing final Resettlement offices, restoration meeting income restoration Aug. 2012 town governments, APs programs and (many programs and their village committees their times) implementation implementation Discussing issues Discussion Resettlement offices, Issues arising Whole arising from meeting, town governments, from project implementati All APs implementation field survey, village committees, implementation on process and suggested appeal external M&E agency solutions Resettlement offices, Collecting Collection of Appeal Whole town governments, opinions and suggestions and mechanism, implementati All APs village committees, suggestions of the grievances field survey on process external M&E agency APs on the Project

9.5 Appeal Procedure and Handling During preparation and implementation of the RAP, consistent attention will be paid to the participation of the APs and an appeal mechanism will be established. The appeal procedure is as follows:

Stage 1: If an AP is dissatisfied with any indirect impact of resettlement or

construction, he/she may file an oral or written appeal with the Jingfeng

Town Government. In case of an oral appeal, the town government shall

handle such appeal and keep written records. A disposition shall be made

within 2 weeks.

Stage 2: If the AP is dissatisfied with the disposition of Stage 1, he/she may file an appeal with the Hui’an County Ocean & Fishery Bureau after receiving such disposition, which shall make a disposition within 2 weeks.

Stage 3: If the AP is still dissatisfied with the disposition of Stage 2, he/she may file a suit in a civil court in accordance with the Civil Procedure Law of the PRC after receiving such disposition.

All agencies will accept grievances and appeals from the APs for free, and costs so reasonably incurred will be disbursed from contingency costs. At the whole construction stage, the above procedure will remain effective so that the APs can use it to solve relevant issues. The above appeal channel will be disclosed to the APs via the RIB and mass media. During the implementation of the RAP, the resettlement offices should register and manage appeal and handling information, and submit such information to the FPMO in writing on a monthly basis. The FPMO will inspect the registration of appeal and handling information regularly, and will prepare a registration form for this purpose, the format of which is shown in Table 9-2.

Table 9-2 Registration Form of Grievances and Appeals on Resettlement Appellant Time Accepting agency Location Appeal Expected solution Proposed solution Actual handling Appellant Recorder (signature) (signature) Notes: 1. The recorder should record the appeal and request of the appellant factually. 2. The appeal process should not be interfered with or hindered whatsoever. 3.The proposed solution should be notified to the appellant within the specified time.

10 Monitoring and Evaluation

To ensure the successful implementation of the RAP and resettle the APs properly, periodic M&E on resettlement activities will be conducted in accordance with the Bank’s policy on involuntary resettlement (OP4.12), and the Operational Guide to the Monitoring and Evaluation of Resettlement of World Bank Financed Projects in China. Monitoring is divided into internal monitoring of resettlement agencies and independent external monitoring.

10.1 Internal Monitoring Internal monitoring will be implemented by the FPMO, MBHAB and other departments concerned (e.g., the ocean and fishery bureau) jointly to ensure that resettlement activities are conducted pursuant to the principles and schedule of the RAP. The purpose of internal monitoring is to keep the resettlement agencies functioning properly during implementation. The FPMO will run an internal monitoring mechanism to inspect resettlement activities, establish a basic resettlement database, and use it to prepare the RAP, monitor all AHs, and conduct internal supervision and inspection of the whole process of resettlement preparation and implementation. 10.1.1 Implementation Procedure During implementation, the town governments will collect and record resettlement information from the monitoring samples, and report real-time activity records to the FPMO and MBHAB timely to maintain continuous monitoring. The FPMO will inspect implementation regularly. Information forms of specified formats will be prepared in the above monitoring mechanism to realize a continuous mechanism from the town governments to the FPMO. As an integral part of the internal monitoring system, the FPMO and MBHAB will conduct inspection and verification regularly. 10.1.2 Scope of Monitoring 1. Investigation, coordination of and suggestion on key issues of the resettlement and implementing agencies during implementation; 2. Restoration of the household income of the APs; 3. Restoration and resettlement of vulnerable groups; 4. Payment, use and availability of compensation fees for resettlement; 5. Level of public participation and consultation of the AHs during implementation; 6. Resettlement training and its effectiveness; 7. Resettlement implementing agencies, staff and working efficiency. 10.1.3 Internal Monitoring Reporting The FPMO will submit an internal monitoring report to the Bank semiannually. Such report should indicate the statistics of the past 6 months in tables, and reflect the progress of land acquisition, resettlement and use of compensation fees through comparison.

Table 10-1 and ______, ______Township, ______District (County) Cut-off date: MM/DD/YY Date of completion: MM/DD/YY Actually Percentage of Item Unit Planned Accumulated completed completion Permanent land acquisition mu Temporary land occupation mu Payment of land 0,000 compensation fees yuan Training Person Employment arrangement Person Land reallocation mu Reported by: ______Signature (person responsible): ______Official seal:

Table 10-2 provide some formats.

Table 10-1 Progress Report on Land Acquisition, House Demolition and Resettlement ______, ______Township, ______District (County) Cut-off date: MM/DD/YY Date of completion: MM/DD/YY Actually Percentage of Item Unit Planned Accumulated completed completion Permanent land acquisition mu Temporary land occupation mu Payment of land 0,000 compensation fees yuan Training Person Employment arrangement Person Land reallocation mu Reported by: ______Signature (person responsible): ______Official seal:

Table 10-2 Progress of Fund Utilization ______, ______Township, ______District (County) Cut-off date: MM/DD/YY Date of completion: MM/DD/YY Required Affected Unit/ Compensation Adjusted Percentage of Description9 investment entity qty. received (yuan) compensation compensation (yuan) Village 1 Village 2 Collective Displaced household Entity Reported by: ______Signature (person responsible): ______Official seal:

9 Fill in labor training, employment, vulnerable group subsidy, etc. in ―Description‖.

10.2 Independent External Monitoring Independent M&E means the regular M&E of resettlement activities by an independent M&E agency. The independent monitoring of the Project will be conducted by an independent agency with relevant experience. Independent monitoring is conducted on all resettlement activities by an agency independent of resettlement implementation with a comprehensive, long-term point of view. The external M&E agency will follow up the resettlement activities to see if the state laws on resettlement, and the Bank’s operational policy on involuntary resettlement (OP4.12) are complied with, and if the production level and living standard of the APs are improved or at least restored to pre-project levels. The external M&E agency will give suggestions to the implementing agencies based on issues found during monitoring so that such issues can be solved timely. 10.2.1 Independent Monitoring Agency As required by the Bank, the FPMO will appoint a qualified, independent agency experienced in Bank-financed projects as the external M&E agency. The external M&E agency will conduct follow-up M&E on resettlement activities regularly, monitor the progress, quality and funding of resettlement, and give opinions. It will also conduct follow-up monitoring on the production level and living standard of the APs, and submit M&E reports to the FPMO and the Bank. 10.2.2 Monitoring Procedure and Scope 1. Preparing the Terms of Reference of M&E 2. Developing software for the resettlement M&E information system 3. Preparing a survey outline, a questionnaire and a record card 4. Design of the sampling survey plan 5. Baseline survey A baseline survey required for the independent M&E of the AHs will be conducted to acquire baseline data on the living standard (livelihood, production and income levels) of the monitored displaced AHs. 6. Establishing an M&E information system An M&E information system will be established, where a database will be established for different types of M&E data, in order to provide computer aid for analysis and follow-up monitoring. 7. M&E survey  Capacity evaluation of resettlement implementing agencies: to investigate the working capacity and efficiency of the resettlement implementing agencies  Monitoring of resettlement progress, compensation rates and payment;  Impact analysis of the Project  Follow-up survey and evaluation of the income level of the AHs  Public participation and consultation: to monitor public participation activities during the preparation and implementation of the RAP, and the effectiveness of participation  Appeals: to monitor the registration and disposition of appeals of the APs 8. Compiling monitoring data, and establishing a database

9. Comparative analysis 10. Preparing M&E reports according to the monitoring plan The external M&E agency should prepare the terms of reference, the survey outline and the questionnaire, establish a monitoring system, define tasks and select monitoring sites before the commencement of resettlement. After resettlement implementation, the external M&E agency will monitor the progress, quality and funding of resettlement, and submit to an external M&E report to the Bank semiannually.

10.3 Post-evaluation After project implementation, the resettlement activities will be subject to post-evaluation using the theory and methodology for post-evaluation on the basis of M&E. Successful experience and lessons of land acquisition and resettlement will be evaluated to provide experience that can be drawn on for future resettlement. The post-evaluation will be conducted by an independent external M&E agency appointed by the Project owner. The post-evaluation agency will prepare terms of reference for post-evaluation, establish a system of evaluation indicators, conduct socioeconomic analysis and survey, and prepare the Resettlement Post-evaluation Report for submission to the FPMO and the Bank.

11 Entitlement Matrix

Type of Compensation and Compensation Project Impact Beneficiaries Remarks project resettlement policy rate Fujian Bank Demolishing 10 One household with 9 1. One-time cash / During consultation, the compensation rates Meizhou financed fixed fishnets persons in Xiaocuo compensation or for the affected fixed fishnets and other Bay project and other fixed Village moving subsidy, fishing facilities are shown in Table 4-1: 9 Navigation fishing where AHs may look yuan/jin for fixed fishnets, 5,900 yuan/ton for Improvemen attachments for other sea areas to steel pipe piles, 8.5 yuan/jin for guy ropes, t Project restore production; 700 yuan per stone stake for guy rope, 8.5 (Phase III) 2. Social security; yuan/jin for cross ropes, 8.5 yuan/jin for tail 3. Employment ropes and 700 yuan per tail stone. training Fujian Related Occupying 62.3 16 fishing households 1. Cash Tidal flat and See the Due Diligence Report on Meizhou project mu of with 65 persons in compensation; aquaculture water Resettlement for the Fujian Meizhou Bay Bay aquaculture Shage Village 2. Employment surface: 4,000 Navigation Improvement Project (Phase I) Navigation water surface training yuan/mu (Appendix 3) Improvemen t Project (Phase I) Construction Related Occupying 35 households with 1. Cash Aquatic products: See the Due Diligence Report on works of the project 1,248.35 mu of 133 persons in Shage compensation; 3,840-9,700 Resettlement for the Construction Works of 5# and 6# aquaculture Village, Nanpu Town, 2. Social security; yuan/mu; the 5# and 6# Berths of the Xiaocuo berths of the area for 5# and Quangang District 3. Employment aquaculture nets: Operation Zone (Appendix 4) Xiaocuo 6# berths. training 500-10,000 yuan Operation each Zone

Construction Related Occupying 303 households with 1. Cash Aquatic products: See the Due Diligence Report on works of the project 8,716.2 mu of 1,174 persons in Putou compensation; 1,875-10,000 Resettlement for the Construction Works of 1-2# berths sea area and and Daxiang Villages 2. Social security; yuan/mu the 1# and 2# Berths of the Putou Operation of the Putou tidal flat 3. Employment Zone (Appendix 5) Operation training Zone Occupying Construction 6,825.91 mu of Project of 1,631 households with aquaculture 1. Cash See the Resettlement Action Plan for the the 3-25# 8,725 persons in Aquatic products: Related water surface compensation; 2. Construction Project of the 3-25# Berths of Berths of the Shiqian, Daxiang, 5,000-6,250 project and withdrawing Social security; 3. the Putou Operation Zone in Xiuyu Port Area, Putou Shitou and Shiwei yuan/mu; a state-owned Employment training Meizhou Bay, Fujian. Operation villages sea area of Zone 1,139.05 mu

Appendixes Appendix 1 Fieldwork Methods of the RAP Preparation Team Method Time Location Size Participants Remarks 1. Literature Aug. – Oct. / / RAP Refer to the project proposal review 2011 preparation and the aide-memoire of the team of Hohai Bank Identification Mission to University learn project information. Learn the socioeconomic profile of the province, cities, counties and towns affected by the Project, and refer to the withdrawal of the right to use sea areas policies of Fujian Province. Develop the survey plan and design the questionnaire on this basis. 2. Sampling Aug. Nanpu AHs Town Investigate the AHs’ attitude to survey 17-26, Town, (25) governments, the Project, and living and 2011 Quangang affected village economic conditions in depth. District; committees, Dongzhuan aquaculture g Town, fishing/ Xiuyu households in District; affected Jingfeng villages, RAP Town, preparation Hui’an team of Hohai County University 3. FGD Aug. MBHAB, 2 times AP Learn project preparation, the 23-25, town representatives, preparation of the pre-FSR, 2011 governmen RAP specific project information and ts, preparation its affected area, and the committees team of Hohai socioeconomic profile of the of affected University affected towns and villages, villages, AP and consult and discuss representat resettlement and ives compensation programs. 4. Key Aug. Resettleme 6 Quangang Learn the socioeconomic informant 17-25, nt offices, persons District profile of Fuxing Sub-district, interview 2011 village Agriculture, and the Project’s committees Forestry & socioeconomic benefits for and Water impacts on the sub-district, Resources future development plans of Bureau, Putian the sub-district and affected Municipal villages, and the compensation Ocean & and resettlement policies of Fishery Bureau, the Project. Hui’an County Ocean & Fishery Bureau, labor and social security

departments, village CPC branch secretaries

5. In-depth Aug. Affected 8 AP Discuss the compensation and interview 23-25, Oct. village persons representatives, resettlement measures of the 20 – Nov. committees RAP Project in depth. 15, 2011 preparation team of Hohai University 6. Field Aug. 21, Project site / MBHAB, RAP Investigate the Project’s investigation 2011 preparation impacts on site. team of Hohai University

Appendix 2 Public Participation Activities at the Preparation Stage Public participation is an important means of protecting the lawful rights and interests of the APs, reducing grievances and disputes, and further improving the project design. In addition, a good public participation strategy and participation activities can solicit public opinions extensively and reduce the Project’s social risks. The management agencies of the Project attached great importance to public participation at the preparation stage, and held FGDs with town and village officials, and some villagers in the project area in different ways to solicit public opinions extensively, and provide firsthand information for the development of the project design and the resettlement programs. In April 2011, under the leadership of MBHAB, FPTD, Fujian Port & Waterway Investigation & Design Institute (FPWIDI), the Quanzhou Municipal Ocean & Fishery Bureau, the Putian Municipal Ocean & Fishery Bureau, some ship owners, and villager representatives discussed layout plans and spoil backfilling schemes many times in the form of FGD. Through repeated discussions and comparisons, layout plans and spoil backfilling schemes for several key channels in the Project were determined, and the FSR of the Project was completed by the design agency. In August 2011, under the leadership of, the RAP preparation team conducted FGDs with village officials and villager representatives to learn the Project’s direct and indirect economic, social, productive and living impacts. In addition, the survey team also interviewed key informants in depth to learn nearby residents’ needs for the Project. It was found that most town and village officials, and villagers supported the Project, and they thought that the Project would not affect their production and livelihoods itself, but its construction should not damage the local marine environment and landscape. Some villagers said that if resettlement was caused inevitably by the Project or their productive resources were damaged during project construction, the management agency should compensate them reasonably. See Attached Table 2-1.

Attached Table 2-1 Summary of Public Participation Activities at the Preparation Stage Time Organizer Location Participants Method Topic Consultation outputs 2011.4 MBHAB MBHAB MBHAB, FPTD, FGD Channel 1. Design options were FPWIDI, layout compared, and the layout Quanzhou plan plan of the main channels of Municipal Xiaocuo, Putou and Ocean & Shimenao were determined; Fishery Bureau, 2. Some ship owners thought Putian the channel layout was Municipal rational and good for future Ocean & sea transport, but they Fishery Bureau, worried that their logistics some ship would be affected owners (11), temporarily during some villagers construction; 3. Villagers (5) along channels suggested that local farmers could be recruited for channel construction.

Time Organizer Location Participants Method Topic Consultation outputs 2011.4 MBHAB, Dongzhuan MBHAB, FGD Dredged 1. The owner of the Putou Meizhou g Town Meizhou Bay spoil Operation Zone Project Bay Port Governmen Port backfilling proposed that dredged spoil Developm t, Xiuyu Development scheme of the channels in Meizhou ent Co., District, Co., Ltd., Bay be used for land Ltd. Putian City FPWIDI, reclamation in berth Dongzhuang construction; 2. Dredged Town spoil of this project would be Government, used for land reclamation in Shiqian and berth construction behind the Daxiang Village proposed 1-25# berths of the Committees, Putou Operation Zone; 3. some villagers The Dongzhuang Town (9) Government approved of using dredged spoil for berth construction; 4. The Shiqian and Daxiang Village Committees approved of using dredged spoil for berth construction; 5. Most of villagers approved of this scheme, but required that withdrawal of the right to use sea areas should begin after the current aquaculture period. 2011.4 MBHAB, Nanpu MBHAB, FGD Dredged 1. Dredged spoil of this Xiaocuo Town, Xiaocuo Port spoil project would be used for Port Quangang Development backfilling land reclamation in berth Developm District, Co., Ltd., scheme construction behind the ent Co., Quanzhou FPWIDI, Nanpu proposed 5-10# berths of the Ltd. City Town Xiaocuo Operation Zone; 2. Government, The Nanpu Town Shage Village Government approved of Committee, using dredged spoil for berth some villagers construction; 3. The Shage (6) Village Committee approved of using dredged spoil for berth construction; 4. Most of villagers approved of this scheme, but required that withdrawal of the right to use sea areas should begin after the current aquaculture period.

Time Organizer Location Participants Method Topic Consultation outputs 2011.8 MBHAB Shiwei MBHAB, Hohai Key Attitude of 1. Most of villagers Village, University, informant nearby understood the significance Dongzhuan Shiwei Village interview, residents of the Project, and thought g Town, Committee, FGD to the that the Project was Xiuyu villager Project favorable as long as it did not District, representatives damage the local marine Putian City (5) of Shiwei environment and landscape, VIllage and the Project would not cause productive or living inconvenience to them itself; 2. Most of villagers thought that higher compensation should be paid for withdrawal of the right to use sea areas arising from the Project, and be accompanied by endowment insurance; 3. Some fishing households thought that the Project should not affect their fishing operations; 4. The head of Shiwei Village thought that there should be more similar project consultations, and the project management agencies should disclose the project design on newspapers and TV timely. 2011.8 MBHAB Hui’an MBHAB, Hohai Key Attitude of 1. The Songcun Village County University, informant nearby Committee and the villager Songcun Jingfeng Town interview, residents representatives supported Village, Government, FGD to the the Project, but they thought Jingfeng Songcun Project, that the Sinochem port Town Village resettleme construction project had Committee, nt scheme caused serious marine villager pollution in recent years, and representatives expected that this should be (2) of Songcun avoided in the Project, and if Village, AP possible, the project representative management agencies (1) should participate in the improvement of the local marine environment; 2. The resettlement options were determined preliminarily, i.e., cash compensation + social security + employment training.

Time Organizer Location Participants Method Topic Consultation outputs MBHAB, Putian and Quanzhou Municipal Environm Ocean & 2006.5 Village ental Fishery Environmental impact –2011. MBHAB committees impact / Bureaus, town announcement 10 concerned announce government, ment village committees concerned, APs (1) After the measurement of MBHAB, Putian the withdrawn sea area, the and Quanzhou results and criteria will be Municipal RIB and disclosed for one week. (2) 2006.1 Ocean & sea area Village The contract between the 0 Fishery withdraw MBHAB committees / project owner and the town –2011. Bureaus, town al concerned government will also be 12 government, announce disclosed for one day. (3) village ment The sea area withdrawal committees announcement will be concerned, APs published.

Appendix 3 Due Diligence Report on Resettlement for the Fujian Meizhou Bay Navigation Improvement Project (Phase I) The Project includes broadening and deepening on the basis of the Fujian Meizhou Bay Navigation Improvement Project (Phase I), and is closely associated with the first phase in function, so the first phase will be considered as a related project. The first phase has been completed, and its resettlement activities have also been completed. For this reason, the RAP preparation team has conducted a detailed survey on the resettlement activities of the Fujian Meizhou Bay Navigation Improvement Project (Phase I), and prepared a due diligence report on resettlement for this project. I. Project introduction Meizhou Bay is a natural deepwater port rare in the southeast coastal region of China. With the development of port-based industries on both sides of Meizhou Bay, especially the construction of major projects, such as the Fujian Refining-Chemical Integration Project and the Fujian LNG Project, the existing channels in Meizhou Bay cannot ensure navigational safety, and the Fujian Meizhou Bay Navigation Improvement Project (Phase I) has been implemented for this reason. The Fujian Meizhou Bay Navigation Improvement Project (Phase I) includes the following parts: (1) from Point A on the main channel of Meizhou Bay to Point H in the Xiaocuo Terminal via Point G in the Xiuyu Terminal, with a mileage of 30.85km, a design channel width of 300m and a design bottom level of -14.5m; (2) segment of the Yangyu branch channel from Point E in the Liyuwei Terminal to the Yangyu bank, with a mileage of 1.73km, a design channel width of 220m and a design bottom level of -10m; and (3) the construction of 3 maneuvering areas with a total length of 7km along the main channel of Meizhou Bay, with the same design standard as the main channel. This project includes the following works: (1) dredging works, with a design volume of 1.228 million m³; (2) rock blasting works, with a design volume of 24,100 m³; and (3) navigation mar works, in which 5 HF-3.0 light floats, an HF-2.4 light float and 6 movable light floats will be completed, 8 flexible light staffs cleared and one anchorage boundary post removed. This project will occupy 62.3 mu of aquaculture sea area, affecting 16 fishing households with 65 persons in Shage Village, Nanpu Town, Quangang District. By the end of 2007, the withdrawal of the right to use sea areas and resettlement compensation work had been completed, and all compensation fees had been paid. To date, this project has been completed and put into operation. Therefore, this appendix is a review of the resettlement activities of the Fujian Meizhou Bay Navigation Improvement Project (Phase I). II. Project approval According to the Law of the PRC on the Administration of Sea Areas, and other applicable laws and regulations, the right to use sea areas shall be lawfully obtained for the use of sea areas by any entity or individual; the entities and individuals may apply to the maritime administrative department of the people's government on the county level or above for using the sea areas; when applying for using the sea areas,

the applicant shall submit the following written materials: an application for using sea areas; materials justifying the use of sea areas; relevant certification materials of credit standing; and other written materials as provided by law or regulations. On March 7, 2005, FPDRC reviewed the FSR of the Fujian Meizhou Bay Navigation Improvement Project (Phase I), and approved it with Reply FPDRC Traffic & Energy [2006] No.164. On December 10, 2005, FPTD reviewed the preliminary design of the Fujian Meizhou Bay Navigation Improvement Project (Phase I), and approved it with Document FPTD [2005] No.12. At the end of 2007, the Fujian Provincial Government issued the sea area use certificate for the Fujian Meizhou Bay Navigation Improvement Project (Phase I). It can be seen from the above activities that the use of sea areas for the construction of the Fujian Meizhou Bay Navigation Improvement Project (Phase I) complies with the applicable state laws and regulations. III. Resettlement impacts The Fujian Meizhou Bay Navigation Improvement Project (Phase I) has occupied 62.3 mu of aquaculture area, affecting 16 households with 65 persons in Shage Village, Nanpu Town. See Attached Table .

Attached Table 3-1 Summary of Resettlement Impacts of the Fujian Meizhou Bay Navigation Improvement Project (Phase I) Aquaculture Affected Affected Project City District Town Village water surface households population occupied (mu) Fujian Meizhou Bay Navigation Quanzhou Quangang Nanpu Shage 62.3 16 65 Improvement Project (Phase I)

IV. Compensation and resettlement for withdrawal of the right to use sea areas The compensation rate for withdrawal of the right to use sea areas of the Fujian Meizhou Bay Navigation Improvement Project (Phase I) is based mainly on the Measures of Fujian Province for the Implementation of the Fisheries Law of the PRC (effective from May 1, 2007). According to the opinion of the Quangang District Government, the compensation rate for withdrawal of the right to use sea areas of the Fujian Meizhou Bay Navigation Improvement Project (Phase I) is 4,000 yuan/mu. The withdrawal of the right to use sea areas and resettlement work of the Fujian Meizhou Bay Navigation Improvement Project (Phase I) was conducted in the form of ―cash compensation + employment training‖. 1. Cash compensation: Since this sea area was owned by the state, and the DPs had not applied for a sea area use certificate, their losses were compensated for at the compensation rate of Quangang District. The total amount of compensation of 249,200 yuan was paid in October 2007. 2. Employment training: To promote the industry switching of fishermen losing

sea areas, the Quangang District Government has sought for a fitting point between unemployed farmers and the labor gap of enterprises, and promoted employment training and guidance actively. First, employment-oriented training is given based on employment demand and requirements for vocational skills, including order-based training, oriented training and fixed-post training; second, free referral services are offered to help local farmers losing sea areas or land get employed, and talent fairs are held regularly based on employment demand; third, free vocational skills identification is conducted to help those having difficulty in employment master skills and get employed; fourth, urban and rural laborers, and early-stage entrepreneurs are encouraged to attend start-up training; five, vocational skills training subsidies are paid directly to employers and employees, and eligible enterprises are guided to conduct skills training and job certification. According to the policy of Quangang District, all fishermen affected by this project can attend the above training for free. The survey shows that some APs have attended skills training organized by the government and switched to other industries successfully. The withdrawal of the right to use sea areas and resettlement work of this project has been completed successfully, and there is no leftover dispute or any other issue arising from compensation and resettlement.

Attached Table 3-1 Details of Resettlement Compensation of the Fujian Meizhou Bay Navigation Improvement Project (Phase I) Name Compensation amount (yuan) Compensation date XZD 109600 2007.8.25 WZH 30000 2007.10.9 LYM, WXX 25000 2007.8.25 XWF, XXZ 1000 2007.8.22 LHQ 5000 2007.8.22 XMQ 1500 2007.9.1 XYX 1500 2007.8.25 LJP 15000 2007.8.25 XJM 22000 2007.8.25 XJ 4600 2007.8.25 KBL 16000 2007.8.25 XYL 5000 2007.8.25 XHZ, XMY 13000 2007.8.25 Total 249200 /

V. Income restoration and satisfaction survey To learn the AHs’ satisfaction with the withdrawal of the right to use sea areas and resettlement work of the Fujian Meizhou Bay Navigation Improvement Project (Phase I), the RAP preparation team interviewed typical AHs (see Attached Table -3). The survey findings show that the DPs have restored their income greatly by investing compensation fees in operating activities. In addition, since these DPs do

not live mainly on fishery, and most of them do business or work in Quanzhou and Fuzhou, their household income has been largely restored or improved though affected temporarily after aquaculture water surface acquisition.

Attached Table 3-3 Interviews with Typical AHs Time: August 24, 2011 Location: Shage Village Committee, Nanpu Town Interviewee: LJP, villager of Shage Village Household background: I’m 51 years old. My family has 5 members, including my wife, son, daughter-in-law, grandson and I, all Han people. My son deals with transport in Shanghai and is paid about 2,000 yuan a month, and my daughter-in-law is taking care of the child at home. We have neither aquaculture water surface nor land, and I and my wife do small business at home. Withdrawal of the right to use sea areas and compensation: Over 3 mu of aquaculture water surface was acquired and sea oyster was bred only at that time, which was quite profitable. We received a compensation sum of about 15,000 yuan for withdrawal of the right to use sea areas in 2007. Part of the sum was used for house renovation and part for business. We lead a good life today and our main income source is my son. Time: August 24, 2011 Location: Shage Village Committee, Nanpu Town Interviewee: XMQ, villager of Shage Village Household background: My family has 5 members, my husband, father, two sons and I, all Han people. My elder son has been working in Xiamen after graduation from university, and is paid 6,000 yuan a month, and my younger son is working in Quanzhou, and is paid 2,000 yuan a month. We have neither sea area nor land. My father is 72 years old, and receives a pension of 145 yuan per month, in which 90 yuan is from the endowment insurance for land-expropriated farmers. My husband deals with construction work nearby, which is a hard job. It is me who takes care of the family mainly. Withdrawal of the right to use sea areas and compensation: The aquaculture water surface was acquired in 2007, when several thousands of yuan was paid and used to repay my son’s student loan. We lead a so-so life, which is slightly better than the past, because society is progressing after all. Now, we expect the government to give useful skills training, because my husband’s job is a little bit hard. I also want to learn textile skills and work at a nearby factory to relieve my family’s burden. Source: field survey of the RAP preparation team VI. Resettlement satisfaction survey To learn the satisfaction of the AHs with withdrawal of the right to use sea areas and resettlement in the project area, the RAP preparation team conducted a sampling survey on the AHs. It has been learned that the DPs know the resettlement policies quite well, and most of them are confident in income restoration. In this survey, 16 fishing households affected by the construction works of the Fujian Meizhou Bay Navigation Improvement Project (Phase I) were chosen, and 8 of them were

interviewed in dept. The survey results are as follows:

Attached Table 3-4 Sampling Survey Form of Households Affected by the Construction Works of the Fujian Meizhou Bay Navigation Improvement Project (Phase I) with Satisfaction Results No. Question Answer ① ② ③ ④ ⑤ By what means did you ①Government leaflet or first know about announcement ②Newspaper, withdrawal of the right to TV and other mass media use sea areas? ③Discussion of nearby 1 0.00% 0.00% 37.50% 50.00% 12.50% residents ④Meeting convened by village officials or informal channel ⑤Measurement of aquaculture water surface Are you satisfied with ①Very satisfied ②Somewhat the DMS results? satisfied ③Satisfied 2 12.50% 50.00% 31.25% 12.50% 6.25% ④Dissatisfied ⑤Very dissatisfied Are you aware of the ①Yes ②Somewhat ③No compensation policies 3 12.50% 62.50% 25.00% 0.00% 0.00% for withdrawal of the right to use sea areas? Are you satisfied with ①Very satisfied ②Somewhat the compensation satisfied ③Satisfied 4 policies for withdrawal of ④Dissatisfied ⑤Very 0.00% 68.75% 18.75% 12.50% 0.00% the right to use sea dissatisfied areas? Are you confident in the ①Very confident ②Somewhat implementation of these confident ③Confident 5 31.25% 37.50% 18.75% 12.50% 0.00% policies? ④Unconfident ⑤Very unconfident During the whole ①Don’t know ②Village resettlement process, by officials directly or indirectly what means will you ③Government above the 6 6.25% 37.50% 12.50% 12.50% 31.25% express your personal village level directly or opinions and ideas? indirectly ④Mass media ⑤Project owner Are you or your family ①Yes ②No ③Don’t know 7 willing to attend skills 62.50% 25.00% 12.50% 0.00% 0.00% training? Are you confident in ①Very confident ② your future life after Somewhat confident ③ 8 0.00% 0.00% 37.50% 50.00% 12.50% withdraw the right to use Confident ④Unconfident sea areas? ⑤Very unconfident Source: survey team of Hohai University

follows: 1) In the project area, most of the DPs think that their household income is from outside employment and household operations mainly. Some of them say that they will invest compensation fees for withdrawal of the right to use sea areas in household operations to obtain more profits. 2) Some DPs say that they will take an active part in labor skills training offered by the government in order to switch to other industries as soon as possible, especially training on apparel processing, shoemaking, medical apparatus, timber processing, mechanical repair and vessel driving, etc. 3) Some DPs say that they have no other skills than aquaculture, They expect to obtain unskilled jobs offered by berth construction. It has been learned that no complaint visit, lawsuit or any other leftover issue arising from withdrawal of the right to use sea areas has occurred in this project, and the withdrawal of the right to use sea areas work of this project have been successful to date.

VII. Conclusion The withdrawal of the right to use sea areas work of the Fujian Meizhou Bay Navigation Improvement Project (Phase I) complied with the applicable state laws and regulations, and sea area use approval, withdrawal of the right to use sea areas and resettlement activities were conducted according to law. The withdrawal of the right to use sea areas procedures, compensation rates and resettlement programs were supported and accepted by the DPs. Through reasonable compensation and effective resettlement, the income and living standard of the APs have been restored. It has been learned that no complaint visit, lawsuit or any other leftover issue arising from withdrawal of the right to use sea areas has occurred in this project, and the compensation and resettlement activities of this project have been completed successfully in general.

Appendix 4 Due Diligence Report on Resettlement for the Construction Works of the 5# and 6# Berths of the Xiaocuo Operation Zone According to the FSR of this project, all spoil and waste of this project will be fully utilized, and part of soil and waste will be backfilled in the 5# and 6# berths of the Xiaocuo Operation Zone for berth construction. Therefore, the Construction Project of the 5# and 6# Berths of the Xiaocuo Operation Zone is closely associated with the Project in function, and should be considered as a related project. To date, compensation for withdrawal of the right to use sea areas and other resettlement activities have been completed for the construction works of the 5# and 6# berths of the Xiaocuo Operation Zone. As required by the Bank, MBHAB and the RAP preparation team have conducted a due diligence investigation on the completed resettlement activities of the construction works of the 5# and 6# berths of the Xiaocuo Operation Zone, and prepared this report. I. Project introduction The south side of Meizhou Bay is an important port-based industry base of petrochemicals, and ship repair and building in Fujian Province. In recent years, with the rapid economic development of Quanzhou City, port throughput has been growing rapidly, but the insufficient port throughput and the limited number of deepwater berths can hardly meet the demand for economic development. In order to further improve the infrastructure conditions and bulk transport capacity of Meizhou Bay Port, meet the demand for port-based industries, and promote regional economic development, it is necessary to construct the 5# and 6# berths of the Xiaocuo Operation Zone. The Construction Project of the 5# and 6# Berths of the Xiaocuo Operation Zone is located in Meizhou Bay, Quangang District, Quanzhou City. This project includes terminal works, harbor basin works, separation levee, land area formation, foundation treatment, road works and stockyard. See Attached Table 4-1. According to the progress of the project, 5# and 6# Berths are expected to complete sea surface cleaning work in the second half of 2012, and then began construction work.

Attached Table 4 -1 Scope of Construction of the Construction Project of the 5# and 6# Berths of the Xiaocuo Operation Zone Investment Project Berths Scope of construction (00 million yuan) Two 50,000 DWT multi-purpose terminals (reserved for 100,000 DWT) will be constructed, Xiaocuo with a design annual throughput of 3.5 million tons. Operation 5# and 6# berths The 5# and 6# berths are 318m and 323m long 10.3 Zone respectively, and will be backfilled into a land area. The 5# and 6# berths have a land area of 370,900 m2 and 265,500 m2 respectively. Note: According to the progress of this project, sea area clearing for the 5-6# berths will be completed, and these two berths will break ground in the second half of 2011.

II. Project approval

According to the Law of the PRC on the Administration of Sea Areas, and other applicable laws and regulations, the right to use sea areas shall be lawfully obtained for the use of sea areas by any entity or individual; the entities and individuals may apply to the maritime administrative department of the people's government on the county level or above for using the sea areas; when applying for using the sea areas, the applicant shall submit the following written materials: an application for using sea areas; materials justifying the use of sea areas; relevant certification materials of credit standing; and other written materials as provided by law or regulations. The Construction Project of the 5-6# Berths of the Xiaocuo Operation Zone will be constructed in strict conformity with the applicable state laws and regulations, and has been approved. The construction works of the 5# and 6# berths have passed sea area use pre-examination, and the sea area use certificate has been obtained.

Attached Table 4-2 Project Approval Documents Item Document name Document No. Opinion on Site Selection Selection No.350505201041001 Pre-examination Opinion on Sea FPOFD Letter [2010] No.23 Area Use 5# Opinion on FSR FPTD Navigation [2009] No.38 berth Project Pre-examination Opinion QMDRC Review [2010] No.62 Reply of Project Approval FPDRC Traffic & Energy [2010] No.29 Xiaocuo Sea area use certificate SSAC No.103570076 Operation Opinion on Site Selection Selection No.350505201041002 Zone Pre-examination Opinion on Sea FPOFD Letter [2010] No.27 Area Use 6# Opinion on FSR FPTD Navigation [2009] No.39 berth Project Pre-examination Opinion QMDRC Review [2010] No.63 Reply of Project Approval FPDRC Traffic & Energy [2010] No.33 Sea area use certificate SSAC No.103570077

III. Resettlement impacts Withdrawal of the right to use sea areas for the construction works of the 5# and 6# berths of the Xiaocuo Operation Zone has begun, and resettlement impacts have been identified. Withdrawal of the right to use sea areas for the construction works of the 7-10# berths has not been started, and resettlement impacts cannot be identified. According to the withdrawal of the right to use sea areas contract between the Xiaocuo Operation Zone and the Quangang District Government, 1,248.35 mu of aquaculture area will be occupied for the 5# and 6# berths, affecting 35 households with 133 persons in Shage Village, Nanpu Town, Quangang District. See Attached Table 4-3.

Attached Table 4-3 Resettlement Impacts of the Construction Works of the 5# and 6# Berths of the Xiaocuo Operation Zone

Aquaculture water Affected Affected Project City District Town Village surface households population occupied (mu) 5# berth Quanzhou Quangang Nanpu Shage 652.038 20 81 Xiaocuo 6# berth Quanzhou Quangang Nanpu Shage 596.3145 15 52 Operation 7-10# berths Not started, resettlement impacts not identified yet / / / Zone Total 1248.3525 35 133

IV. Compensation policies and rates The compensation rates for withdrawal of the right to use sea areas of this project are based on the Measures of Fujian Province for the Implementation of the Fisheries Law of the PRC (effective from May 1, 2007), and the Notice of the Fujian Provincial Government on Issuing the Measures of Compensation for the Use of Sea Areas of Fujian Province (effective from May 1, 2008). According to the opinion of the Quangang District Government, the compensation rates for withdrawal of the right to use sea areas of the construction works of the Construction Project of the 5-6# Berths of the Xiaocuo Operation Zone are as shown in Attached Table 4-4.

Attached Table 4-4 Compensation Rates for Withdrawal of the right to use sea areas of the Construction Project of the 5# and 6# Berths of the Xiaocuo Operation Zone Compensation rate (yuan) Compensation Type of compensation Unit Sea area for Compensation Total compensation aquaculture for offspring facilities Clam mu 3840 1400 1960 7200 Artificial shell tidal

Compensation for aquatic products for aquatic Compensation flats, natural mu 3840 / / 3840 nursery grounds Stone and bamboo mu 3840 1660 / 5500 stake oyster Scaffold mu 3840 3960 1400 9200 suspended oyster Laver mu 3200 4200 1500 8900 Kelp, sea moss mu 3200 4300 1500 9000 Floating rope mu 3200 4600 1500 9300 suspended oyster Pond culture mu 5120 4000 580 9700

Soil pond culture mu 5120 3000 580 8700 Sand bag culture mu 5120 2000 580 7700 Big net / / / / 10000 Fixed Vertical / floating / / / / 6200 fishing net facilities Eel net (small) / / / / 500 Eel net (big) / / / / 1000

Compensation rate (yuan) Compensation Type of compensation Unit Sea area for Compensation Total compensation aquaculture for offspring facilities Purse net fishing m / / / 7 Fishing cage / / / / 80 Industrialized Facility Offspring losses and moving costs are compensated for only nursing, workshop culture at 15% of appraised price. culture A moving subsidy is paid only; the subsidy for an ordinary net Movable cage (3.8m*3.8m*3m) is 500 yuan, and it will be demolished without compensation 3 years later. Culture Based on net cage replacement 15% of Immovable m2 24 cost by / appraised price reference to newness

V. Resettlement program and implementation According to the survey, withdrawal of the right to use sea areas contract for the 5# and 6# berths has been entered into the Quangang District Government, the resettlement work has finished. The resettlement options of ―cash compensation + employment training + endowment insurance‖ have been proposed for the Construction Project of the 5-6# Berths of the Xiaocuo Operation Zone. 1. Cash compensation: Once the counting of aquatic products is completed, the APs will be compensated according to the compensation rates in Attached Table 4-4. According to the survey, these rates have been fixed based on replacement costs of fishing facilities and accepted by the APs. 2. Employment training: To promote the industry switching of fishermen losing sea areas, the Quangang District Government has enacted the Guidelines on the Labor Resettlement and Employment of Displaced Households, and would invest hundreds of thousands of yuan in free skills training and job referral. First, employment-oriented training is given based on employment demand and requirements for vocational skills, including order-based training, oriented training and fixed-post training; second, free referral services are offered to help local farmers losing sea areas or land get employed, and talent fairs are held regularly based on employment demand; third, free vocational skills identification is conducted to help those having difficulty in employment master skills and get employed; fourth, urban and rural laborers, and early-stage entrepreneurs are encouraged to attend start-up training; five, vocational skills training subsidies are paid directly to employers and employees, and eligible enterprises are guided to conduct skills training and job certification. According to the policy of Quangang District, all fishermen affected by this project can attend the above training for free. 3. Endowment insurance: In order to provide old-age support for urban/rural residents and land-expropriated farmers, and maintain social stability, the Quangang District

Government has promulgated the Interim Regulations on the New Social Endowment Insurance for Rural Residents of Quangang District, See Attached Table 4-5. All farmers and fishermen in Quangang District are covered by this policy. Ensure the old, basic life of rural residents and landless farmers.

Attached Table 4-5 Provisions of Quangang District on New-type Rural Social Endowment Insurance Interim Regulations on the New Social Endowment Insurance for Rural Residents of Quangang District (QDG General [2011] No.191) Participants: All urban and rural residents registered within the administrative area of Quangang District, having attaining 16 full years (excluding students at school), may participate in new-type rural social endowment insurance (hereinafter, new rural insurance) voluntarily at their places of household registration. Fund raising: 1. Personal payment: The payment rate shall be 100-1,200 yuan per annum, and 100 yuan shall make a payment level. Participants may choose payment level independently, and those paying more will receive more. Participants shall pay premiums on an annual basis in principle. 2. Collective subsidy: Where conditions permit, a village (community) collective shall provide subsidies to participants, and the subsidy rate shall be determined democratically at a village (community) congress. Other economic organizations, social welfare organizations and individuals are encouraged to provide subsidies to participants. 3. Government subsidy: Depending on the payment level, the subsidy rate shall be 30-50 yuan per capita per annum. The policy also stipulates that for Level 1-2 (moderate) disabled persons identified by the disabled persons’ federation department, and five-guarantee households identified by the civil affairs department, the government shall pay endowment insurance premiums for them at 100% of the minimum payment level. For households receiving minimum living security support identified by the civil affairs department in the previous year, and subjects of family planning whose only child is dead or disabled, or suffers from any operative complication identified by the family planning department, the government shall pay endowment insurance premiums for them at 50% of the minimum payment level. For couples aged 45-49 years having given birth to two daughters or one child and complying with the family planning policy, 20 yuan shall be added to the payment subsidy of not less than 30 yuan per capita per annum. Benefit payment and management: 1. Participants who have participated in new rural insurance, have attained 60 full years, and have not participated in the basic endowment insurance for public institutions or urban workers may receive pensions on a monthly basis. 2. The pension on new rural insurance consists of a basic pension and a personal account pension, where the former shall be paid fully by the government at the prevailing rate of 55 yuan per capita per month, and the latter shall be the full balance of the personal account divided by 139. Linkup with the endowment insurance for land-expropriated farmers: Any land-expropriated farmer eligible to receive new rural insurance benefits shall also be granted pensions for land-expropriated farmers at the average difference compensation rate

between urban and rural minimum living security benefits of Quangang District in the previous year (not les than 90 yuan per capita per month).

VI. Resettlement satisfaction survey To learn the satisfaction of the AHs with withdrawal of the right to use sea areas and resettlement in the project area, the RAP preparation team conducted a sampling survey on the AHs. It has been learned that the DPs know the resettlement policies quite well, and most of them are confident in income restoration. In this survey, 10 fishing households affected by the construction works of the 5# and 6# berths were chosen, and 5 of them were interviewed in dept. The survey results are as follows:

Attached Table 4-6 Sampling Survey Form of Households Affected by the Construction Works of the 5# and 6# Berths of the Xiaocuo Operation Zone with Satisfaction Results No. Question Answer ① ② ③ ④ ⑤ By what means did you ①Government leaflet or first know about announcement ②Newspaper, withdrawal of the right to TV and other mass media use sea areas? ③Discussion of nearby 1 0.00% 0.00% 70.00% 20.00% 10.00% residents ④Meeting convened by village officials or informal channel ⑤Measurement of aquaculture water surface Are you satisfied with ①Very satisfied ②Somewhat the DMS results? satisfied ③Satisfied 2 10.00% 20.00% 50.00% 10.00% 10.00% ④Dissatisfied ⑤Very dissatisfied Are you aware of the ①Yes ②Somewhat ③No compensation policies 3 10.00% 60.00% 30.00% 0.00% 0.00% for withdrawal of the right to use sea areas? Are you satisfied with ①Very satisfied ②Somewhat the compensation satisfied ③Satisfied 4 policies for withdrawal of ④Dissatisfied ⑤Very 0.00% 20.00% 50.00% 20.00% 10.00% the right to use sea dissatisfied areas? Are you confident in the ①Very confident ② implementation of these Somewhat confident ③ 5 10.00% 40.00% 30.00% 20.00% 0.00% policies? Confident ④Unconfident ⑤ Very unconfident During the whole ①Don’t know ②Village resettlement process, by officials directly or indirectly what means will you ③Government above the 6 10.00% 40.00% 10.00% 10.00% 30.00% express your personal village level directly or opinions and ideas? indirectly ④Mass media ⑤Project owner Are you or your family ①Yes ②No ③Don’t know 7 willing to attend skills 60.00% 30.00% 10.00% 0.00% 0.00% training?

Results No. Question Answer ① ② ③ ④ ⑤ Are you confident in ①Very confident ② your future life after Somewhat confident ③ 8 10.00% 40.00% 30.00% 10.00% 10.00% withdraw the right to use Confident ④Unconfident sea areas? ⑤Very unconfident Source: survey team of Hohai University

It can be seen that most DPs know and accept the compensation policies very well, and believe that the government will implement them. In addition, the RAP preparation team interviewed 5 AHs in depth to learn the AHs’ present socioeconomic conditions and existing issues. The key information is as follows: 1) In the project area, most of the DPs think that their household income is from outside employment and household operations mainly. Some of them say that they will invest compensation fees for withdrawal of the right to use sea areas in household operations to obtain more profits. 2) Some DPs say that they will take an active part in labor skills training offered by the government in order to switch to other industries as soon as possible, especially training on apparel processing, shoemaking, medical apparatus, timber processing, mechanical repair and vessel driving, etc. 3) Some DPs say that they have no other skills than aquaculture, They expect to obtain unskilled jobs offered by berth construction. It has been learned that no complaint visit, lawsuit or any other leftover issue arising from withdrawal of the right to use sea areas has occurred in this project, and the withdrawal of the right to use sea areas work of this project have been successful to date.

VII. Conclusion 1. To date, the project owner has entered into the Contracting Agreement for the Construction Project of the 5# and 6# Berths of the Xiaocuo Operation Zone sea area withdrawal with the Quangang District Government, and the resettlement work has been completed. 2. To date, the sea area use procedures of the construction works of the 5# and 6# berths of the Xiaocuo Operation Zone have complied with the applicable state laws and regulations, sea area use pre-examination has been completed, and the sea area use certificate has been obtained. The withdrawal of the right to use sea areas procedures, compensation rates and resettlement programs comply with the applicable state laws and regulations. 3. Through reasonable compensation and effective resettlement, the DPs are quite satisfied, but a little number of DPs are pessimistic about industry changeover and future livelihoods. 4. It has been learned that as of August 2011, no complaint visit, lawsuit or any other leftover issue arising from withdrawal of the right to use sea areas had occurred in this project, and the withdrawal of the right to use sea areas work of this project

had been successful.

Appendix 5 Due Diligence Report on Resettlement for the Construction Works of the 1# and 2# Berths of the Putou Operation Zone According to the FSR of this project, all spoil and waste of this project will be fully utilized, and part of soil and waste will be backfilled in the 1#-25# of the Putou Operation Zone for berth construction. Therefore, the Construction Project of the 1-25# Berths of the Putou Operation Zone is closely associated with the Project in function, and should be considered as a related project. To date, compensation for withdrawal of the right to use sea areas and other resettlement activities have been completed for the construction works of the 1# and 2# berths of the Putou Operation Zone. As required by the Bank, MBHAB and the RAP preparation team have conducted a due diligence investigation on the completed resettlement activities of the construction works of the 1# and 2# berths of the Putou Operation Zone, and prepared this report. I. Scope of construction The Putou Operation Zone is designed to offer public integrated transport services, such as the transport of general bulk cargos, including grain and steel products, the roll-on (drop and pull) transport of passengers and cargos with Taiwan, and modern logistics. Port-based industries will be developed actively to build the zone into an integrated modern port serving port-based industries and the local economy, and integrating multimodal transport, trade, storage and processing. The Putou Operation Zone has a planned coastline of 4.24 kilometers, and 25 planned 5,000-40,000 DWT berths, with a built-up area of about 8 km2. The estimated investment in this project is about 3.1 billion yuan (excluding equipment). In the first phase, the construction works of the 1-2# berths will be started to construct two 40,000 DWT berths (reserved for 70,000 DWT), with an estimated investment of 700 million yuan; this phase has broken ground and has a construction period of 24 months. In the second phase, the 3-25# berths and the rear logistics park will be developed, with an estimated investment of 2.4 billion yuan. II. Project approval According to the Fisheries Law of the PRC, the Law of the PRC on the Administration of Sea Areas, and other applicable laws and regulations, sea areas are owned by the state, no entity or individual may usurp on, buy or sell or by any other means transfer sea areas, and the right to use sea areas shall be lawfully obtained for the use of sea areas by any entity or individual. The project approval and certificate application procedures of the Putou Operation Zone Project are in strict conformity with the applicable state laws and regulations. As of August 2011, 1,106.87 mu of sea area had been acquired for the 1# and 2# berths of the Putou Operation Zone, the project had been approved and the sea area use certificate had been obtained. Through a review of the approval documents of the 1# and 2# berths of the Putou Operation Zone, it can be seen that the construction and sea area use procedures of the construction works of the 1# and 2# berths of the Putou Operation Zone comply with the applicable state laws and regulations.

Attached Table 5-1 Summary of Project Approval Documents No. Issuing agency Document No. Document name Putian Municipal Opinion on Site Selection for the Selection 1 Urban-Rural Construction Works of the 1# and 2# No.350300200904006 Planning Bureau Berths of the Putou Operation Zone Pre-examination Opinion of Land for Fujian Provincial FPLRD [2010] Pre the Construction of the Construction 2 Land & Resources No.028 Works of the 1# and 2# Berths of the Department Putou Operation Zone Pre-examination Opinion on Sea Area Fujian Provincial FPOFD Letter [2009] Use of the Construction Works of the 3 Ocean & Fishery No.451 1# and 2# Berths of the Putou Department Operation Zone Fujian Provincial Reply Letter on the EIA Report of the FPEPB Supervision 4 Environmental Construction Works of the 1# and 2# [2010] No.30 Protection Bureau Berths of the Putou Operation Zone Fujian Provincial Approval Opinion on the EIA Report of FPOFD Letter [2010] 5 Ocean & Fishery the Construction Works of the 1# and No.229 Department 2# Berths of the Putou Operation Zone Opinion on the Feasibility Study of the FPTD Navigation [2010] 6 FPTD Construction Works of the 1# and 2# No.2 Berths of the Putou Operation Zone Reply on the Approval of the FPDRC Traffic & Energy 7 FPDRC Construction Works of the 1# and 2# [2010] No.31 Berths of the Putou Operation Zone Sea area use certificate for the Fujian Provincial 8 No.35000020100039 Construction Works of the 1# and 2# Government Berths of the Putou Operation Zone

Attached Figure 5-1 Approval documents and sea area use certificate of the 1# and 2# berths

III. Acquisition of sea area and tidal flat, and resettlement impacts 15,917.7mu of sea area and tidal flat will be occupied for the 1#-25# berths of the Putou Operation Zone, including 7,952.76 mu of aquaculture water surface and 7,964.96 mu of no-breed water surface. By the end of August 2011, the withdrawal of

the right to use sea areas work of the 1# and 2# berths had been completed. To date, 1,297.4 mu of sea area has been acquired, including 1,106.84 mu of aquaculture area, affecting 49 households with 190 persons in Putou and Daxiang Villages, Dongzhuang Town, Xiuyu District, Putian City, and 190.57 mu of other state-owned sea area, affecting no one. The sea area withdrawal and resettlement work of the Construction Project of the 3-25# Berths of the Putou Operation Zone is still at the preparation stage. See Error! Reference source not found..

Attached Table 5-2 Resettlement Impacts of Withdrawal of the right to use sea areas of the Project Aquaculture area occupied (mu) Occupation Other of no-breed sea Total Project City District Town Village Affected Affected Progress of resettlement aquaculture area occupied (mu) households population water (mu) surface 1# Withdrawal of the right to use sea Putian Xiuyu Dongzhuang Putou 321.77 21 81 berth areas has been completed, and 190.57 1297.4 2# DPs are still under production Putian Xiuyu Dongzhuang Daxiang 785.08 28 109 berth restoration. The construction site for the Shiqian 866.41 555 2915 3#-25# berths has been determined preliminarily, Daxiang 735.41 379 1820 where the preliminary Putou examination of the 3# and 4# Operation Shiwei 3379.31 527 3048 berths has been completed Zone and is pending approval in 3#-25# Project Putian Xiuyu Dongzhuang 1139.05 9071.81 August; the 5# and 6# berths berths are under preparation for submission for approval; the time of submission for Shitou 1844.78 176 942 approval of the 7-25# berths is to be determined (estimated in the next two years), and resettlement is about to begin. Total 7932.76 1686 8915 1329.62 10369.21 /

IV. Compensation policies and rates The compensation rates for withdrawal of the right to use sea areas of the 1# and 2# berths of Putou Operation Zone have been fixed pursuant to the Land Administration Law of the PRC, the Fisheries Law of the PRC, the Law of the PRC on the Administration of Sea Areas, the Notice of the Fujian Provincial Government on Issuing the Measures of Compensation for the Use of Sea Areas of Fujian Province, and the Notice of the Putian Municipal Government on Issuing the Compensation Rates for Land Acquisition and House Demolition of Putian City. According to the Notice of the Putian Municipal Government on Issuing the Compensation Rates for Land Acquisition and House Demolition of Putian City, the compensation rates for sea area and tidal flat acquisition have been fixed based on replacement costs of fishing facilities, and losses from the suspension of production of the fishermen will be compensated for. In addition, all APs will be provided with labor skills training, and eligible APs will also be included in the local endowment insurance system for land-expropriated farmers. The compensation rates of the construction works of the 1# and 2# berths of the Putou Operation Zone comply with the applicable provisions.

Attached Table 5-3 Compensation Rates for Withdrawal of the right to use sea areas of the Construction Works of the 1# and 2# Berths of the Putou Operation Zone Item Unit Unit price (yuan) Clam (tidal flat) mu 5000 Suspended oyster mu 5625 Shrimp, crab mu 6250 Eel pond mu 7500-10000 Intensive fish farming pond mu 3750 Net cage culture Big 2625 Net cage culture Small 1875 Frog culture mu 4375 Ordinary fish pond mu 1875

Attached Figure 5-2 Document on Compensation Rates

V. Resettlement program and implementation The RAP preparation team has found that the withdrawal of the right to use sea areas work of the 1# and 2# berths has been completed, and the DPs are at the production and livelihood restoration stage, but the withdrawal of the right to use sea areas work of the other berths has not been completed. The resettlement options of ―cash compensation + employment training + endowment insurance‖ have been proposed for the construction works of the 1# and 2# berths of the Putou Operation Zone. 1. Cash compensation: Once the counting of aquatic products is completed, the APs will be compensated according to the compensation rates in Attached Table 5-3. According to the survey, these rates have been fixed based on replacement costs of fishing facilities and accepted by the APs. 2. Employment training: To promote the industry switching of fishermen losing sea areas, the Xiuyu District Government has sought for a fitting point between unemployed farmers and the labor gap of enterprises, and would invest heavily in free skills training and job referral in cooperation with the Meizhou Bay Vocational Skills Identification Station and the Vocational Skills Identification Station of the Putian Electricity System. First, employment-oriented training is given based on employment demand and requirements for vocational skills, including order-based training, oriented training and fixed-post training; second, free referral services are offered to help local farmers losing sea areas or land get employed, and talent fairs are held regularly based on employment demand; third, free vocational skills identification is conducted to help those having difficulty in employment master skills and get employed; fourth, urban and rural laborers, and early-stage entrepreneurs are

encouraged to attend start-up training; five, vocational skills training subsidies are paid directly to employers and employees, and eligible enterprises are guided to conduct skills training and job certification. All fishermen affected by this project can attend the above training for free. 3. Endowment insurance: In order to ensure that the land-expropriated farmers’ long-term livelihoods are not affected seriously due to the loss of productive resources, the Putian Municipal Government promulgated the Interim Regulations on the Employment Training and Social Security of Land-expropriated Farmers of Putian City in 2009, stating that eligible land-expropriated farmers may participate in the endowment insurance for land-expropriated farmers. According to the key informant interview with the Putian Municipal Human Resources and Social Security Bureau, the provincial government has not promulgated any policy or document on the endowment insurance for farmers affected by sea area withdrawal to date, but allows municipal governments to develop measures themselves. Since Putian City is preparing a pilot reform framework for urban-rural integration, the policy on the endowment insurance for farmers affected by sea area withdrawal has not been promulgated, but the endowment insurance for farmers affected by sea area withdrawal may be implemented by reference of the endowment insurance for LEFs. According to the Measures of Putian City for the Implementation the Employment Training and Social Security of Land-expropriated Farmers (PMGO [2012] No.111), the measures for the endowment insurance for LEFs are as follows: 1) Any eligible LEF having attained 60 full years will receive pensions under the endowment insurance for LEFs from the county government (district government, administrative committee) on a monthly basis together with pensions under new rural insurance. 2) Eligible LEFs aged 16-59 years will be included directly in new rural insurance, and will receive pensions under the endowment insurance for LEFs from the county government (district government, administrative committee) on a monthly basis together with pensions under new rural insurance when attaining 60 full years. For LEFs aged 16-59 years having been converted into urban status in household registration, the local social security handling agency will include them in the basic endowment insurance for urban employees. 3) The pension rate under the endowment insurance for LEFs shall not be less than 90 yuan per capita per month. If the local minimum living security rate for farmers in the previous year is higher than 90 yuan, such rate shall apply. Within 3 months of approval of the compensation and resettlement program for land acquisition, each village (community) committee will calculate the cultivated area and remaining cultivated area of each LEF in the village (community) to identify subjects of the endowment insurance for LEFs. The list of participants will be discussed at the village congress and disclosed for one week, submitted by the village (community) to the town government (sub-district office) for review, and then to the local agriculture, and land and resources authorities for review, and finally submitted to the rural insurance handling agency under the local human resources and social security for approval. VI. Income restoration and satisfaction survey

To learn the satisfaction of the AHs with withdrawal of the right to use sea areas and resettlement in the project area, the RAP preparation team conducted a sampling survey on the AHs. It has been learned that the DPs know the resettlement policies quite well, and most of them are confident in income restoration. However, quite a number of DPs are pessimistic about industry changeover and future livelihoods. In this survey, 12fishing households affected by the construction works of the 1# and 2# berths were chosen, and 6 of them were interviewed in dept. The survey results are as follows:

Attached Table 5-4 Sampling Survey Form of Households Affected by the Construction Works of the 1# and 2# Berths of the Putou Operation Zone with Satisfaction Results No. Question Answer ① ② ③ ④ ⑤ By what means did you ①Government leaflet or first know about announcement ②Newspaper, withdrawal of the right to TV and other mass media use sea areas? ③Discussion of nearby 1 0.00% 0.00% 41.67% 58.33% 0.00% residents ④Meeting convened by village officials or informal channel ⑤Measurement of aquaculture water surface Are you satisfied with ①Very satisfied ②Somewhat the DMS results? satisfied ③Satisfied 2 25.00% 58.33% 8.33% 8.33% 10.00% ④Dissatisfied ⑤Very dissatisfied Are you aware of the ①Yes ②Somewhat ③No compensation policies 3 25.00% 58.33% 16.67% 0.00% 0.00% for withdrawal of the right to use sea areas? Are you satisfied with ①Very satisfied ②Somewhat the compensation satisfied ③Satisfied 4 policies for withdrawal of ④Dissatisfied ⑤Very 16.67% 58.33% 16.67% 8.33% 00.00% the right to use sea dissatisfied areas? Are you confident in the ①Very confident ② implementation of these Somewhat confident ③ 5 25.00% 50.00% 16.67% 8.33% 0.00% policies? Confident ④Unconfident ⑤ Very unconfident During the whole ①Don’t know ②Village resettlement process, by officials directly or indirectly what means will you ③Government above the 6 8.33% 41.67% 50.00% 00.00% 0.00% express your personal village level directly or opinions and ideas? indirectly ④Mass media ⑤Project owner Are you or your family ①Yes ②No ③Don’t know 7 willing to attend skills 83.33% 8.33% 8.33% 0.00% 0.00% training? Are you confident in ①Very confident ② 8 your future life after Somewhat confident ③ 8.33% 58.33% 16.67% 16.67% 00.00% withdraw the right to use Confident ④Unconfident

Results No. Question Answer ① ② ③ ④ ⑤ sea areas? ⑤Very unconfident

Source: survey team of Hohai University

It can be seen that most DPs know and accept the compensation policies very well, and believe that the government will implement them. According to the survey, in the resettlement implementation process of the 1# and 2# Berths of the Putou Operation Zone, related institutions conducted 2 publicities and 1 announcement. (1)After the measurement work of withdraw the right to use sea areas, the measurement results and standards should be announced, the announcement should be shown for 1 week. Meanwhile, the villagers can inquire compensation standard documents on site. (2)The agreement signed by the owner and the township government should also be announced. The announcement content includes finally determination of sea areas decoded to be used, compensation standards of each breeding types, etc. The announcement should be shown for one day. (3)Announce withdrawal of the right to use sea areas. 1) The compensation standards should be identified and announced by Xiuyu District Government, Dongzhuang Town Government and affected villages. The announcement content includes the location, boundary and area, the use right settings, the use of the sea areas decoded to be used; the compensation registration sites; the implementation institution to take back the rights of using sea areas; prohibited items and other items needed to be announced, the announcement should be shown for 15 days. Since the announcement promulgated, any unit and individuals shall not plant or build sea attachment in the announced sea area. Xiuyu District Oceanic &Fishery Administration ought to determine the object of sea area use compensation and its use of sea within 10 days of the expiration of the public announcement, and show the announcement in related villages of Dongzhuang Town, The announcement should be shown for 1 week. 2) Compensation registration of using sea areas; 3) Sign agreements of using sea areas; 4) Compensation and payment schedule; 5) Detailed restoration measures; 6) Issues arising from resettlement implementation; 7) Other concerns of the APs. As a whole, most immigrants in this project approve of the resettlement policies, and they believe that the government can perform the related policy according to law. According to the survey, the local aquaculture industry is unprofitable, and many DPs say that they will abandon aquaculture even without withdrawal of the right to use sea areas. Many local people do business or work outside, and business and outside employment have become their main income sources. Most of the DPs say they are confident in production and livelihood restoration. In addition, the RAP preparation team interviewed 6 AHs in depth to learn the

AHs’ present socioeconomic conditions and existing issues. The key information is as follows: 1) Fishery conditions in the project area are not favorable, and fishery and aquaculture are unprofitable. Many fishermen have already switched to other industries many years ago, and fishery income is no longer dominant. 2) Some APs think that they have no other skills than aquaculture. They expect to obtain unskilled jobs offered by berth construction. 3) Some elderly APs think that though they will lose aquaculture resources after sea area withdrawal, the government has effected insurance for them and their household conditions are generally good, so they are confident in future life. 4) Some APs expect labor skills training organized by the government and realize industry shift as soon as possible, especially training on apparel processing, shoemaking, medical apparatus, timber processing, mechanical repair and vessel driving, etc.

VII. Conclusion 1. As of August 2011, the withdrawal of the right to use sea areas work of the 1# and 2# berths of the Putou Operation Zone had been completed, The construction site of the 3#-25# berths has been determined; and the sea area withdrawal and resettlement work is about to begin. 2. In the withdrawal of the right to use sea areas work of the 1# and 2# berths of the Putou Operation Zone, sea area use pre-examination and project approval have been conducted, and the sea area use certificate obtained in conformity with the applicable state laws and regulations. The withdrawal of the right to use sea areas procedures, compensation rates and resettlement programs comply with the applicable state laws and regulations. 3. Through reasonable compensation and effective resettlement, the DPs are quite satisfied and most of them are confident in future livelihoods. 4. It has been learned that as of August 2011, no complaint visit, lawsuit or any other leftover issue arising from withdrawal of the right to use sea areas had occurred in this project, and the withdrawal of the right to use sea areas work of this project had been successful.