2.4 Land Acquisition and Demolition in Each District

SFG3065

Ma'anshan Cihu River Basin Improvement Supplementary Project

Public Disclosure Authorized

Resettlement Action Plan

Public Disclosure Authorized (Update after Project Interim Adjustment)

(Draft for Review)

Public Disclosure Authorized

Project Management Office for Ma'anshan Cihu River Basin Improvement Supplementary Project

Public Disclosure Authorized December 2016

Highlights

Ma'anshan Cihu River Basin Improvement Supplementary Project needs permanent acquisition of 354.1mu collective land, and temporary occupation of 640mu collective land, which is not contracted out, such as canals and river channels, and will demolish 26,300m2 of buildings, which belong to 85 households including 494 persons. Resettlement occurs in three districts, i.e. Yushan district, Huashan district (including Xiushan New District) and Cihu high-tech zone, In Yushan district, land acquisition is 69mu, structure demolition is 11,000 square meters and 236 persons are affected; in Huashan district, land acquisition is 150.1mu, structure demolition is 7,900 square meters and 113 persons are affected; in Xiushan New District, land acquisition is 135mu, structure demolition is 6,200 square meters and 120 persons are affected; in Cihu high-tech zone, there is no land acquisition, structure demolition is 1,200 square meters, and 25 persons are affected. According to the estimates in June 2016, the resettlement cost of the supplementary project amounts to 109.26 million Yuan, among which Yushan district needs 38,527,513 Yuan, accounting for 35.41%; Huashan district needs 35,447,605 Yuan, accounting for 32.15%; Xiushan New District needs 31,449,263 Yuan, accounting for 28.91%; Cihu high-tech zone needs 3,835,235 Yuan, accounting for 3.53%.

Table of Contents

1 Project information and update of the Resettlement Action Plan...... 1 1.1 Project introduction ...... 1 1.2 Update of the Resettlement Action Plan ...... 6 2. Project impacts ...... 11 2.1 Affected villages ...... 11 2.2 Land acquisition ...... 12 2.3 Structure demolition ...... 15 2.4 Land acquisition and demolition in each district...... 16 3. Socio-economic background of the project-affected area and public consultation activities already carried out ...... 18 3.1 Socio-economic conditions of the affected districts ...... 18 3.2 Socio-economic conditions of affected villages ...... 19 3.3 Livelihoods of affected households ...... 20 3.3.1 Age structure ...... 21 3.3.2 Education level ...... 22 3.3.3 Land resources ...... 22 3.3.4 Annual household incomes and expenditures ...... 23 3.4 Public consultation activities already held ...... 25 3.4.1 Discussion meetings ...... 25 3.4.2 Questionnaire survey ...... 26 4 Compensation and resettlement regulations ...... 29 4.1 Regulations on the acquisition of collective land ...... 29 4.2 Regulations on the demolition of structures on collective land ...... 31 5 Resettlement and livelihood restoration plan ...... 33 5.1 Objectives, methods and principles of resettlement and livelihood restoration ...... 33 5.1.1 Objectives of resettlement and livelihood restoration ...... 33 5.1.2 Methods of resettlement and livelihood restoration ...... 33 5.1.3 Principles of resettlement and livelihood restoration ...... 34 5.2 Resettlement of the house-demolished families ...... 34 5.3 Resettlement of the land-acquired farmers ...... 36 6 Resettlement funds budget and management ...... 39 6.1 Composition of resettlement funds ...... 39 6.2 Budgeting for resettlement funds ...... 40 6.3 Allocation of resettlement funds ...... 41 6.3.1 Recipients of resettlement funds ...... 41 6.3.2 Sources and flows of resettlement funds ...... 41 6.4 Disbursement, management and monitoring of resettlement funds ...... 43 6.4.1 Disbursement of resettlement funds ...... 43 6.4.2 Management and monitoring of resettlement funds ...... 43 7. Resettlement implementing units (RIUs) ...... 44 7.1 Institutional arrangement ...... 44 7.2 Responsibilities of the RIUs ...... 45 7.3 Staffing ...... 46 8 Public consultation and grievance procedures ...... 47 8.2 Plan for consultation with the affected persons ...... 47 8.3 Approaches to the APs' participation in consultation ...... 48 8.4 Information disclosure and RIB ...... 48 8.4 Collection of grievances and complaints...... 49 8.5 Grievance procedure ...... 49 8.6 Grievance record and feedback ...... 50 9 Resettlement monitoring ...... 51 9.1 Internal monitoring...... 51 9.2 External monitoring ...... 53 9.2.1 External monitoring agency and staff ...... 53 9.2.2 Responsibilities of external monitoring agency ...... 53

9.2.3 External monitoring methods and steps ...... 54 9.2.4 External monitoring focuses...... 54 9.2.5 External monitoring report system ...... 56 Appendix 1 Resettlement cost budget ...... 57 Appendix 2 Resettlement information booklet ...... 60

1 Project information and update of the Resettlement Action Plan

1.1 Project introduction

Cihu River is a large tributary of the Yangtze River in the territory of Ma'anshan City in Anhui Province, flowing from south to north through east part of urban area of the city. With the urban development strategy of “expanding eastward and southward”, the east part of the urban area will become its central part, and Cihu River will assume multiple functions, including water supply for industry and agriculture, discharge of urban floods, landscape and tourism, cultural and recreation activities of surrounding residents. The upstream region of Cihu River is a mining area, having damaged vegetation and soil erosion. In recent years, the construction along the river (also its tributaries) encroaches on the river banks, and the river channel at some places is too narrow, weakening the drainage capacity of Cihu River and its tributaries. The embankments downstream of the river are not strong enough for flood control; pumping stations and culverts along the river are aged and inadequate to discharge storm water; buildings are built on the vertical walls of embankment, and wastes are piled on both banks, showing a terrible sight. In order to solve the existing problems of Cihu River, such as weakened embankments, siltation and blockage of tributaries and canals, aged drainage facilities and poor water environment, the Ma'anshan Cihu River Basin Improvement Project was proposed and is being implemented with the World Bank loans. Project activities include: upstream rehabilitation of Cihu River (6.8km), downstream rehabilitation of Cihu River (6.2km), rehabilitation of five storm water pumping stations, rehabilitation of 18 tributaries and drainage canals in urban areas of Huashan District, rehabilitation of tributaries and drainage canals in Cihu high-tech zone, focusing on Jiandan River and Lijianwan River (only left bank, because the right bank is in the territory of Jiangsu Province), and upgrading of ponds (Hupo and Yaochang) for use as storm retention basins in Cihu high-tech zone. The preliminary design and construction drawing design was started in May 2013, and the tendering for procurement by using bank loans including 24 packages had been finished in late September 2016. The Resettlement Action Plan prepared in 2012 shows that the project requires the acquisition of 1788.89mu land, including 1253.89mu cultivated land and 535 mu state-owned land (see Table 1-1). However, according to the third Report on Independent Resettlement Monitoring prepared in July 2016, the project requires the acquisition of 2236mu land, of which collective land is 1529 mu (1857.23 mu had been acquired as of June 30, 2016) and state-owned land is 708 mu (530.639 mu had been acquired as of June 30, 2016).

Table 1-1 Components of Ma'anshan Cihu River Basin Improvement Project and resettlement caused

Project Project Sub-components Location Resettlement caused implementing components units (PIUs) River section from Ma-Wu highway to Upstream river Ma'anshan provincial highway 313, 13100m long, Temporary occupation of 445mu collective land Cihu River rehabilitation Municipality 20m wide rehabilitation Water Resources Downstream river River section from Linli Rd to the Temporary occupation of 266.85mu collective land and Bureau (WRB) rehabilitation estuary, 6300m long, 20m wide permanent acquisition of 150.35mu state-owned land From Tianmen Ave. to Xiaonanyu Dianye Rd. Canal Permanent acquisition of 16.65mu state-owned land Pumping Station, about 1086m Canal in east of Ning-Wu From Tianmen Ave. to Tianran River, Permanent acquisition of 30mu collective land Railway about 1642m Canal in north of Tianran From Tianmen Ave. to Tailai Pumping Permanent acquisition of 85.9mu collective land River Station, about 1233m Rehabilitation From Tianmen Ave. to Cihu Str., about of tributaries Nantang River Permanent acquisition of 28.68mu collective land 1304m and drainage WRB Transverse canal in Xindu From Jiankang Community to Caicun canals Permanent acquisition of 9.10mu state-owned land community Canal, about 1169m Wangbai Beach river From Jiangdong Ave. to Cihu River, Permanent acquisition of 9.21mu state-owned land system about 820m Yangqiao Canal river From Mapu Rd to Wangbai Beach, Permanent acquisition of 30.20mu state-owned land system about 1448m From Maxiang Railway to Cihu River, Xitang river system Permanent acquisition of 38.73mu state-owned land about 1094m

Project Project Sub-components Location Resettlement caused implementing components units (PIUs) From Maxiang Railway to Cihu River, Xiaohecha west tributary Permanent acquisition of 4.5mu state-owned land about 240m From Huayuan Rd. to Cihu River, about Xiaohecha mainstream Permanent acquisition of 3.77mu state-owned land 1230m Xiaohecha east tributaries From Yushan Rd. to Cihu River, about Permanent acquisition of 24mu state-owned land (2) 1600m From Geyang Rd. to Cihu River, about Permanent acquisition of 6mu collective land and 6mu Qiaoshan Canal 664m state-owned land From East Ring Rd. to Cihu River, about Geyang river system Permanent acquisition of 11.92mu collective land 539m From Xiushan Rd. to Shanghu River, Wudangang East Canal Permanent acquisition of 60.54mu collective land about 1980m From Xiushan West Second Rd. to Permanent acquisition of 40.2mu collective land and 40.2mu Wudangang West Canal Shanghu River, about 2120m state-owned land Canal in north of right From Taodian Rd. to Shanghu River, embankment of Shanghu Permanent acquisition of 26.64mu collective land about 990m River From Tuanqishan Rd to Fengshou Permanent acquisition of 68.96mu collective land and Shanghu River Pumping Station, about 3670m long 137.91mu state-owned land From Mapu Rd to Fengqiao Pumping Fengshou South Canal Permanent acquisition of 12.85mu collective land Station, about 900m From East Ring Rd. to Fengqiao Qianjin Canal Permanent acquisition of 54.95mu collective land Pumping Station, about 1410m

Project Project Sub-components Location Resettlement caused implementing components units (PIUs) From Shengdiegeban Rd. to Lijianwan Jiandan River Permanent acquisition of 11.78mu state-owned land River, about 1210m Pond shoreline within the boundary of Permanent acquisition of 24.3mu state-owned land and Hupo Pond Anhui Province, about 3320m 38.25mu collective land Yaochang Pond Pond shoreline, about 1770m Permanent acquisition of 16.5mu state-owned land Reinforcement of the left About 1700m Permanent acquisition of 63.75mu state-owned land embankment of Lijianwan Nantang zone (Tongyi (2) Cihu Town Temporary occupation of 4.5mu state-owned land Pumping Stations) Sulfuric Acid Plant zone Temporary occupation of 7.8mu state-owned land which is (Jiandan Gate Pumping Cihu high-tech zone planned for construction Station) Drainage Zhaoming zone (Zhaoming Temporary occupation of 4.7mu state-owned land which is pumping Zhaoming community WRB Pumping Station) planned for construction stations Xiaonanyu zone (Xiaonanyu Pumping Shuyi Village, Cihu Town Temporary occupation of 4.1mu collective land Station) Zhendong zone (Tailai Tailai Village, Cihu Town Temporary occupation of 4.1mu collective land Pumping Station) Source: the Resettlement Action Plan prepared in 2012.

In addition, the previous Resettlement Action Plan shows that no demolition is required, but the independent monitoring agency found that demolition occurred during project implementation. As of June 30, 2016, 8520m2 of rural residential structures had been demolished, affecting

21 households comprising of 83 persons, and 1600m2 of non-residential structures had been demolished, affecting 88 households comprising of 158 persons.

1.2 Update of the Resettlement Action Plan

As mentioned above, since the WB-funded Ma'anshan Cihu River Basin Improvement Project started its implementation in May 2014, land acquisition has accumulated to 1857.63mu, far exceeding the planned quantity in the previous Resettlement Action Plan (RAP). The tendering for execution of all works contained in the project was completely finished in September 2016. It is estimated that the World Bank loan has a balance of about 55 million dollars. Based on this, some works was added into the WB-funded project (the added works constitute the "supplementary project") to further improve the city's flood protection and drainage capacity. The supplementary project comprises of three components: 1) upstream river rehabilitation, which includes two sub-components: rehabilitation of Yang River system and improvement of drainage facilities of Xiangshan Town; 2) midstream river rehabilitation, which includes three sub-components: improvement of drainage facilities, rehabilitation of Wumushan River system and rehabilitation of Xiaohe Gate river system; 3) downstream river rehabilitation, which includes four sub-components: improvement of drainage facilities, rehabilitation of Zhaoming Open Canal, rehabilitation of Tianran River South Canal system, and rehabilitation of Liannong river system. The supplementary project contains 22 activities, divided into three categories. 1) Upgrading of existing storm and sewage drainage network in central urban area and industrial area of Xiangshan Town and under Lianhe Road, Zhongxiang Avenue, Yanjiang Avenue and Hailuo Avenue in Cihu high-tech zone, which requires no land acquisition or demolition. 2) Rehabilitation of Cihu River tributaries and drainage canals, including Yang River tributaries, Wumushan River mainstream and tributaries, Heibai Pond tributary, Zhenbei tributary, and upstream of Xiaohe Gate, which requires temporary occupation of stated-owned or collectively-owned land in river (canal) channel or on both banks, without changing the ownership or the planned use (for water conservancy) of the land, but strengthening the land's original functions (natural drainage and water retention) and even beautify surrounding environment. Our workers found in public consultation activities that all collectively-owned river channels and canals are left unused because of floods or terrible conditions. Local residents expressed their strong supports for the rehabilitation of these river channels and canals and their willingness to well maintain the rehabilitated river channels and canals. 3) Construction of roads resulting from construction of drainage facilities, such as Xiangyang Road in Xiangshan Town, Mudanjiang Road, Yuxiu Road, Huashan Road, Hongdong Road and Yujia Road in Huashan District. Permanent acquisition of collective land and waters is required and structure demolition is also required. Table 1-2 shows the components of the supplementary project and the resettlement caused.

Table 1-2 Components of the supplementary project and resettlement caused Land acquisition and No. Components Sub-components Activities Description of works required demolition Rehabilitation of Temporary occupation of 2.3km from Xiangpu Rd. to East Ring Rd. within boundary Cihu River Rehabilitation of Yang stated-owned land (river 1 of Xiangshan Town, including dredging, slope rehabilitation, tributaries and River tributary system channel) or unused collective upstream revetment reinforcement. drainage canals land (along river banks)

Construction of Construction of Xiangyang Road, 1.4km from Maxiang Rd. Land acquisition and 2 drainage facilities along to Chadong Rd., 30m wide, including drainage facilities and demolition is required. Xiangyang Road road facilities. Upstream Upgrading of storm and Upgrading of 26.7km storm and sewage pipes within an area river sewage drainage of 534ha enclosed by Xiangpu Rd. (east), the railway (south), No land acquisition or 3 rehabilitation Improvement of network at central urban East Ring Rd. (west) and north side of provincial highway demolition is required. drainage area of Xiangshan 313 (north). facilities Town Upgrading of storm and Upgrading of 11.5km storm and sewage pipes within an sewage drainage irregularly-shaped area of 85.6ha. enclosed by Nan Mountain No land acquisition or 4 network at industrial (north), the boundary with Dutang Town (west), Xiangkuang demolition is required. area of Xiangshan community (south) and Lali Mountain (east). Town Construction of Construction of Mudanjiang Road (1.4km long and 40m Land acquisition and 5 drainage facilities along Midstream Improvement of wide), including drainage facilities and road facilities. demolition is required. river drainage Mudanjiang Road rehabilitation facilities Construction of Construction of Yuxiu Road (0.26km long and 30m wide), Land acquisition and 6 drainage facilities along including drainage facilities and road facilities. demolition is required.

Yuxiu Road

Construction of Land acquisition has been Construction of Jinxiu Road (0.27km long and 20m wide), 7 drainage facilities along completed, and no including drainage facilities and road facilities. Jinxiu Road demolition is required. Construction of Construction of Huashan Road (0.42km long and 40m wide), Land acquisition and 8 drainage facilities along including drainage facilities and road facilities. demolition is required. Huashan Road Construction of Construction of Hongdong Road (1km long and 24m wide), 9 drainage facilities along Land acquisition is required. including drainage facilities and road facilities. Hongdong Road Construction of Construction of Yujia Road (2.9km long and 30m wide), Land acquisition and 10 drainage facilities along including drainage facilities, road facilities and bridges. demolition is required. Yujia Road Temporary occupation of Wumushan River 1.43km, including dredging, slope protection, box culvert, 11 collective land, which is not tributary system greening etc. contracted to individuals. Temporary occupation of Wumushan River 3.43km, including dredging, slope protection, box culverts, 12 Rehabilitation of collective land, which is not mainstream system greening etc. Wumushan River contracted to individuals. system Temporary occupation of Heibai Pond tributary 0.9km, including dredging, slope protection, box culvert, 13 collective land, which is not system greening etc. contracted to individuals. Zhenbei tributary 1.9km, including dredging, slope protection, box culvert, Temporary occupation of 14 system greening etc. collective land, which is not

contracted to individuals. Rehabilitation of Temporary occupation of Upstream of Xiaohe 1.73km, including dredging, slope protection, box culvert, 15 Xiaohe Gate collective land, which is not Gate greening etc. river system contracted to individuals. Upgrading of drainage 2.23km, including upgrading of drainage facilities and No land acquisition or 16 facilities along Lianhe restoration of damaged pavement demolition is required. Road Upgrading of drainage 1.23km, including upgrading of drainage facilities and No land acquisition or 17 facilities along Improvement of restoration of damaged pavement demolition is required. Zhongxiang Ave. drainage Upgrading of drainage facilities 0.44km, including upgrading of drainage facilities and No land acquisition or 18 facilities along restoration of damaged pavement demolition is required. Yanjiang Ave. Upgrading of drainage Downstream 0.84km, including upgrading of drainage facilities and No land acquisition or 19 facilities along Hailuo river restoration of damaged pavement demolition is required. Ave. rehabilitation Rehabilitation of Temporary occupation of 1.4km, including dredging, widening and deepening, 20 Zhaoming Open Zhaoming Open Canal collective land, which is not rehabilitation of bridges and culverts Canal contracted to individuals. Rehabilitation of Temporary occupation of Tianran River Tianran River South 1.67km, including dredging, revetment reinforcement, and 21 collective land, which is not South Canal Canal connection between waters contracted to individuals. system Rehabilitation of 2.1km, including widening of open canal, connection Land acquisition has been 22 Liannong river Liannong river system between waters, revetment reinforcement, water quality completed and demolition is system improvement and greening. required.

Note: the boundary of Yang River tributaries, Wumushan River tributaries, Wumushan River mainstream, Heibai Pond tributary and Zhenbei tributary is 10m outside of river width, and the boundary for other river systems is 5m outside of river width.

Considering the changes (mainly the added works) of the WB-funded project and the new policies on land acquisition and resettlement published by Anhui Provincial Government and Ma'anshan Municipal Government since 2015, and on the request of the World Bank, we prepared this updated Resettlement Action Plan.

2. Project impacts

2.1 Affected villages

After interim adjustment of the WB-funded project, 15 activities out of 22 of the supplementary project require land acquisition (including temporary occupation) or demolition, affecting 14 villages. Table 2-1 Villages affected by land acquisition and demolition after interim adjustment No. Activities Villages affected

Suli Village in Huashan district; Xiangyang Village Rehabilitation of Yang River 1 and Dutang Village in Xiangshan Town of Yushan tributary system District Construction of drainage facilities Xiangyang Village in Xiangshan Town of Yushan 2 along Xiangyang Road District Construction of drainage facilities 3 Shanghu Village in Huashan district along Mudanjiang Road Construction of drainage facilities 4 Shanghu Village in Huashan district along Yuxiu Road Construction of drainage facilities 5 Shanghu Village in Huashan district along Huashan Road Construction of drainage facilities 6 Shanghu Village in Huashan district along Hongdong Road Construction of drainage facilities Zhangzhuang Village and Huoli Village in Xiushan 7 along Yujia Road New District

8 Wumushan River tributary system Chikou Village, Xiushan New District

Wumushan River mainstream Chikou, Fengshou, Huoli and Zhangzhuang villages 9 system in Xiushan New District

10 Heibai Pond tributary system Zhangzhuang Village in Xiushan New District

Huoli and Zhangzhuang villages in Xiushan New 11 Zhenbei tributary system District

12 Upstream of Xiaohe Gate Tuanjie and Gaohu villages in Huashan district

23 Zhaoming Open Canal Zhaoming Village in Cihu high-tech zone

14 Tianran River South Canal Linli Village in Cihu high-tech zone

15 Liannong canal Liannong Village in Cihu high-tech zone

Note: Xiushan New District is an administrative division of Huashan district but it is considered separately resettlement implementation (including resettlement cost).

2.2 Land acquisition

Of the 15 activities that cause resettlement, 13 demand for land compensation. The construction of 6 roads requires the permanent acquisition of 354.1mu collective land, of which 37.2mu is land of homesteads and the rest is cultivated land, affecting 558 households comprising of a population of 784 (see Table 2-2). All other activities demand for only temporary occupation of collective land, which is not contracted to individuals, such as river channels and canals, totaling to 640mu. Details are shown in Table 2-3.

Table 2-2 Land acquisition and affected population Land acquisition (mu) Number of Number of Affected Activities Cultivated affected affected villages Subtotal Homestead land households persons Xiangyang Rd. Xiangyang 69 53 16 96 126

Huashan Rd. Shanghu 25 23.8 1.2 44 70 Mudanjiang Rd. Shanghu 88 77.8 10.2 136 204 Yuxiu Rd. Shanghu 12.1 11.6 0.5 22 32

Hongdong Rd. Shanghu 25 25 48 71

Zhangzhuang 57 50 7 82 103 Yujia Rd. Huoli 78 75.7 2.3 130 178

Total 354.1 316.9 37.2 558 784

Table 2-3 Permanent acquisition and temporary occupation of land in each project activity, mu Category of Xiangyang Suli Dutang Components Sub-components Activities land Village Village Village acquisition Rehabilitation of Cihu River Yang River Temporary 50 37 21 tributaries and tributary occupation Upstream drainage canals river Permanent rehabilitation Improvement of acquisition drainage Xiangyang Rd. 69 (including

facilities 16mu of homestead) Chikou Fengshou Gaochao Shanghu Tuanjie Zhangzhuang Category of land Components Sub-components Activities Huoli Village Village Village Village Village Village Village acquisition Wumushan River 36 Temporary occupation tributary system Wumushan River 6 45 17 102 Temporary occupation Rehabilitation mainstream system Midstream of Cihu River Heibai Pond river 41 Temporary occupation tributaries and tributary system rehabilitation drainage canals Zhenbei tributary 108 31 Temporary occupation system Xiaohe Gate river 11 11 Temporary occupation system

Permanent acquisition Mudanjiang Rd. 88 (including 10.2mu of homestead) Permanent acquisition Yuxiu Rd. 12 (including 0.45mu of homestead) Improvement of Permanent acquisition drainage Huashan Rd. 25 (including 1.2mu of facilities homestead) Permanent Hongdong Rd. 25 acquisition Permanent Yujia Rd. 78 57 acquisition (including 9.3mu of homestead) Category Zhaoming Linli Components Sub-components Activities of land Village Village acquisition Rehabilitation Zhaoming Open Temporary Downstream 41 of Cihu River Canal occupation river tributaries and Tianran River Temporary rehabilitation 83 drainage canals South Canal occupation

2.3 Structure demolition

According to statistics, after interim adjustment, 6 activities of the supplementary project require structure demolition, affecting 85 households comprising of a population of 494. The total floor area of the structures to be demolished is 26300 square meters, including 24900 square meters of brick-concrete structures, 1200 square meters of brick-wood structures and 200 square meters of simply-built structures. Details are shown in Table 2-4. Table 2-4 Structure demolition and affected population Number Structure demolition (m2) Affected Number of of affected Brick- Brick- Simple Activities villages households persons concrete wood structure Subtotal Xiangyang 36 Xiangyang 236 11000 11000 Rd. Huashan Rd. Shanghu 1 5 300 300

Mudanjiang 15 Shanghu 90 6800 6800 Rd. Yuxiu Rd. Shanghu 3 18 800 800

Zhangzhuang 16 95 5000 5000 Yujia Rd. Huoli 4 25 1000 200 1200

Liannong 10 Liannong 25 1000 200 1200 canal Total 85 494 24900 1200 200 26300

Most of the structures to be demolished are two-storey brick-concrete houses (see Picture 2-1), except the brick-wood bungalows to be demolished for rehabilitation of Liannong Canal, which were built on the edge of canal, with poor living conditions (see Pictures 2-2 and 2-3).

Picture 2-1 Structures to be demolished at Zhangzhuang Village

Picture 2-2 Structures to be demolished for rehabilitation of Liannong Canal

Picture 2-3 Structures to be demolished for rehabilitation of Liannong Canal

2.4 Land acquisition and demolition in each district

Huashan district has the largest amount of land to be acquired and Yushan district (Xiangshan Town) has the largest quantity of structures to be demolished (see Table 2-4). Investigation finds that there are no vulnerable groups in the project-affected people. Table 2-4 Land acquisition and demolition in each district Structure demolition and affected Permanent acquisition of land Temporary population Districts occupation of Quantity of Cultivated Number of Subtotal Homestead land structures to be land affected persons demolished (m2) Yushan 69 53 16 108 11000 236

District Huashan 150.1 138.2 12.9 7900 113 District Xiushan New 135 125.7 9.3 408 6200 120 District Cihu high-tech 124 1200 25 zone Total 354.1 316.9 37.2 640 26300 494 Note: Xiushan New District is an administrative division of Huashan district but it is considered separately resettlement implementation (including resettlement cost).

3. Socio-economic background of the project-affected area and public consultation activities already carried out

The project-affected area comprises of Yushan district, Huashan district and Cihu high-tech zone. Xiushan New District is an administrative division of Yushan district and its socio-economic background is not described separately in this chapter, although it is considered separately in analysis of project impacts and estimation of resettlement cost.

3.1 Socio-economic conditions of the affected districts

1) Huashan District Huashan district administers one town, eight subdistricts, 36 communities, 3 community preparatory teams and one community working team, and 16 villages, covering an area of 179 square kilometers, having a population of nearly 500,000, serving as the central urban area and commercial, cultural, and educational center of Ma'anshan municipality. Huashan district adjoins Jiangning district of Nanjing municipality, only half an hour drive away from downtown area of Nanjing, three hours’ drive away from Shanghai and two and half hours’ drive away from Hangzhou. It is within the core circle of Nanjing metropolitan area and it is the frontier to receive the industrial and capital transfer from Yangtze River delta. In 2015, Huashan district's GDP amounted to 28 billion Yuan, with an year-on-year growth of 8%, its fiscal revenue amounted to 1.816 billion Yuan, the investment in fixed assets was 28.1 billion Yuan, an increase of 12%, the total retail sales of consumer goods was 14.6 billion Yuan, an increase of 12%, the amount of foreign capital actually used was 290 million Yuan, an increase of 13.6%, the average net income of farmers exceeded 20,000 Yuan/person, an increase of 9%, and the average disposable income of urban residents exceeded 40,000 Yuan/person, an increase of 8% over previous year. Xiushan New District is planned to extend southward to Jiuhua East Rd., westward to the relocated Ning-Wu expressway, northward to east extension of Qiaoshan Rd., and eastward to the planned East Ring Rd., Xiangxiu Rd., Fenghuanghu Ave. and the mountains, covering an area of 34.68 square kilometers. 2) Cihu high-tech zone Cihu high-tech zone (formerly Cihu high-tech industrial development zone) was founded in May 2002. It is planned to have a total area of 11.2 square kilometers. Cihu high-tech zone is located in the northwest of the city, on the bank of Yangtze River, adjacent to Jiangning development zone and Binjiang development zone of Nanjing, Jiangsu Province. National highway 205, Ning-Tong railway and Ning-Ma expressway go through the zone. The zone owns 4.2km deep water coastline of Yangtze River, allowing passing of 10,000t ships all year round, and one 5000t wharf for dangerous goods and four 5000t public wharfs providing berths for 10,000t vessels have been constructed. There is one railway transit station and 5km special line connecting to railway. Cihu high-tech zone has a population of 90,350, including 45,010 males, accounting for 49.82%, 45,340 females, accounting for 50.18%. The non-agricultural population totals to 88,280. In 2013,

18 the added value of industries above designated size reached 5.68 billion Yuan, a 14.6% increase over the previous year; the output of strategic emerging industries amounted to 2.05 billion Yuan, a 20.5% increase; total retail sales of consumer goods amounted to 350 million Yuan, an increase of 16%; the fiscal revenue was 974 million Yuan, an increase of 14.8%; the fixed-asset investment was 17.12 billion Yuan, an increase of 24.8%. 3) Yushan district Yushan district administers 1 township, 2 towns, 4 subdistricts, 28 villages and 36 communities, covering an area of 173 square kilometers, with a population of 260,000. It is located in central urban area of Ma'anshan, on the bank of Yangtze River, adjacent to Jiangning district of Nanjing in the east and Dangtu County in the south. In 2015, this district's GDP reached 15.71 billion Yuan, up 10.7% over the previous year; the added value of industries above designated size reached 3.586 billion Yuan, an increase of 15.3%; the fixed-asset investment was 25.6 billion Yuan, an increase of 11.6%; the fiscal revenue amounted to 1.403 billion Yuan, an increase of 3.7%; foreign investment totaled to 340 million dollars, an increase of 8.6%; total retail sales of consumer goods was 6.26 billion Yuan, an increase of 12.3%; the average disposable income of urban residents was 43,512 Yuan/person, an increase of 7.5%; the average net income of rural residents was 22,410 Yuan/person, up 9%.

3.2 Socio-economic conditions of affected villages

The resettlement work of the supplementary project involves 14 administrative villages, of which five villages are affected directly by land acquisition or demolition, namely Xiangyang, Shanghu, Zhangzhuang, Huoli and Liannong, and all other villages only have some land occupied by the supplementary project temporarily. Due to space limitations, the socio-economic conditions of the five directly-affected villages and only two villages (Fengshou and Linli) affected by temporary land occupation, representative of all this type, are introduced here. Xiangyang village is located in the west of Xiangshan town of Ma'anshan, close to Nanshan Mine, covering an area of 2600mu. It administers 11 natural villages, accommodates a population of 2979 including 1937 registered permanent residents, and owns 863mu cultivated land. The average income of villagers is 18,300 Yuan each person. Shanghu village contains 580 households and has 1650 registered permanent residents. Average net income of villagers is 22,000 Yuan/person. Huoli village comprises of 13 groups and accommodates a population of over 5000 including 3200 registered permanent residents. It has 1500mu cultivated land, mainly paddy fields and also some dry land modified from paddy field. Rice, wheat, vegetables and fruit trees are planted. Each person owns only a little arable land. Zhangzhuang village covers an area of 6 square kilometers and accommodates a population of 50,000 including 2800 registered permanent residents. It has 7000mu cultivated land, 1800mu forest land and 1200mu waters. The average income of villagers is 16,000 Yuan/person. Fengshou village covers an area of 4 square kilometers and comprises of 13 groups, with a

19 population of 2300. It has 2000mu cultivated land and 1800mu forest land. Liannong village has been cancelled, leaving only a group of people to deal with the social insurance affairs for 720 households (1850 persons). Land acquisition has been finished. Linli village covers an area of 4 square kilometers and comprises of 3 groups, including totally 460 households and 1275 persons. The village now has 121.4mu cultivated land and the average income of villagers is 12,800 Yuan per person. Table 3-1 shows the statistics about socio-economic conditions of affected villages Table 3-1 Socio-economic conditions of affected villages

Average net Cultivated land Number of Registered Cultivated income of No. Villages for each person households population land (mu) villagers (mu) (Yuan/person) 1 Xiangyang 1937 863 0.45 18300

2 Shanghu 580 1650 600 0.36 22000 3 Zhangzhuang 246 2800 7000 2.5 16000 4 Huoli 1153 3372 1500 0.44 16400 5 Liannong 668 1856 0 0 7 Linli 460 1275 121 0.09 12800 8 Fengshou 2300 7000 3.42

Source: 2015 Agricultural Economy Statistics and visits in affected villages.

3.3 Livelihoods of affected households

In order to fully understand the basic situation of the affected households, a questionnaire survey was carried out during July and August of 2016. Totally 73 questionnaires were sent back. 73 households were surveyed, comprising of 255 persons, averagely 3.49 persons in each household, including 119 males, accounting for 46.3% and 136 females, accounting for 53.7%. In the surveyed households at Xiangyang village, females are 20% more than males, while at Shanghu village, the difference is only 2%. Table 3-2 Gender structure of the surveyed population Gender Villages Males Females Total Fengshou 18 22 40 45.00% 55.00% 100.00% Huoli 18 16 34 52.90% 47.10% 100.00% Shanghu 29 28 57 50.90% 49.10% 100.00% Xiangyang 36 55 91

39.60% 60.40% 100.00% Zhangzhuang 18 15 33 54.50% 45.50% 100.00% Total 119 136 255 46.30% 53.70% 100.00%

3.3.1 Age structure

The age structure of the surveyed population is shown in Figure 3-1. It shows that the age group over 60 has the largest proportion (21.96%), followed by group 40-49 (19.16%) and group 15-29 (19.16%), finally group 50-59 (12.62%). In accordance with UN standards, when a country or region has 7% or higher proportion of people over age 60, it means that the country or region has an aging population. In the surveyed population, the persons aged over 40 exceeds 53% and the persons aged over 60 takes up 21.96%, largely exceeding the 7% stated by the UN.

Figure 3-1 Age structure of the surveyed population

年龄分组 Age groups 0-14 岁 0-14 years old 15-29 15-29 years old 30-39 30-39 years old 40-49 40-49 years old 50-59 50-59 years old 60 岁以上 Over 60 (included)

3.3.2 Education level

In the surveyed population (255), the persons only receiving junior high school education constitute the largest proportion (38.62%), followed by those only receiving senior high school education (19.58%) and those only receiving primary school education (19.58%), then followed by illiterate and semi illiterate persons (13.76%), finally those receiving college education (8.47%). Figure 3-2 shows the education level of the surveyed population.

文化程度 Education level 初中 Junior high school 大专及以上 College degree and above 高中 Senior high school 文盲及半文盲 Illiterate and semi-illiterate 小学 Primary school Figure 3-2 Education level of the surveyed population

3.3.3 Land resources

Survey results show that the cultivated land contracted by each household is less than 2mu, mainly used for vegetable planting. The workers interviewed some villagers and found that large quantity of cultivated land had been expropriated for purpose of urban development, the villagers whose land had not been expropriated were expecting the same thing and therefore they only planted vegetables for self-eating rather than investing more in land.

Table 3-3 Average quantity of land contracted by each household, mu Villages Dry land Paddy field Forest land Fish pond Others Subtotal

Xiangyang 0.41 0.32 0 0.6 0 1.33 Shanghu 0.45 2.09 0.035 0.57 0 3.145 Zhangzhuang 1.52 1.68 0.3 0.4 0 3.9 Huoli 0.5 3.375 0 2.25 0 6.125 Fengshou 0.5 2.58 3 0 6.08 Total 0.42 1.56 0.07 0.56 0

3.3.4 Annual household incomes and expenditures

1) Household incomes Among the 73 surveyed households, the annual household income averages at 82,953 Yuan, and the per capita income is 23,700 Yuan by assuming each household has 3.5 persons, exceeding the disposable income of rural residents, i.e. 16,400 Yuan/person.

Table 3-4 Household income (Yuan) Villages Highest Lowest Standard Average deviation Xiangyang 1100000 4100 287628 139695 Shanghu 59000 7000 17953 34440 Zhangzhuang 176300 24000 56260 72430 Huoli 273600 16000 113797 107150 Fengshou 167000 10440 63040 57073 Total 1100000 41000 164526 82953

Household income mainly comes from business and service sectors (48.85%) and other sources (29.7%). Agricultural, industrial, construction and transportation sectors are not major sources of income, accounting for 14.14%, 2.8%, 2.62% and 2.31% respectively. Workers found from interviews that many labors from Xiangyang and Fengshou worked in service industry in Ma'anshan urban area, and "other sources" constitute a very large proportion of household income at Shanghu and Huoli because many villagers received large amount of compensation for their land expropriated in recent years.

Table 3-5 Sources of the incomes of the surveyed households (%) Fishery or Forestry or Business and Grain Industrial Construction Transportation Other Villages livestock planting of other service planting sector sector sector sources farming crops sectors Xiangyang 2.07 15.85 0.82 2.97 0.00 0.00 69.25 9.04 Shanghu 5.63 0.04 13.87 11.39 9.38 0.00 8.93 50.75 Zhangzhuang 0.00 0.00 0.00 0.00 8.28 0.00 40.04 51.68 Huoli 5.51 0.00 2.33 0.00 0.00 21.00 8.40 62.76 Fengshou 0.00 13.14 6.72 0.00 0.00 0.00 53.73 32.25 Average 2.29 9.11 2.74 2.80 2.62 2.31 48.85 29.70

Note: "other sources" include benefits of social insurance, money given by children and other incomes that can't be classified into other seven sources.

2) Household expenditures Annual household expenditure averages at 24,490 Yuan, in which the expenditure on household operations is 5,167 Yuan, accounting for 21.1%, and the expenditure on household consumption is 19,297 Yuan, accounting for 78.8%. Table 3-6 shows the information about household expenditures.

Table 3-6 Annual expenditures of the surveyed households

Expenditure on household Expenditure on household Average annual household Villages operations consumption expenditure Yuan % Yuan % Yuan Xiangyang 15157 56.68 11583 43.32 26740 Shanghu 428 2.77 14874 96.39 15431 Zhangzhuang 100 0.39 25654 99.61 25754 Huoli 5150 18.07 23350 81.93 28500 Fengshou 5000 19.21 21026 80.79 26026 Total 5167 21.10 19297 78.80 24490

In expenditures on household consumption, education & recreation, non-staple food and clothing rank top three, accounting for 24.92%, 23.03% and 15.46% respectively. During this survey, the workers also investigated the livelihoods of urban residents at Xiangshan Town and found that in the expenditures on household consumption, the top three are non-staple food (37.10%), education & recreation (18.03%) and health and medical services (15.44). By comparing rural and urban residents, it is known that the land contributes to a decrease of 14% in non-staple food expenditure at rural families (non-staple food refers to vegetable, meat, egg, fish, oil, salt etc.).

Table 3-7 Structure of the expenditures on household consumption (%)

Water, Health and Education & Non-staple Villages Food electricity, Clothing medical Communications Total recreation food and gas services Xiangyang 39.07 16.57 12.49 7.66 10.13 10.67 7.68 100.00 Shanghu 11.14 16.00 35.14 3.89 13.23 13.59 5.61 100.00 Zhangzhuang 33.99 5.48 19.53 5.61 8.26 6.43 10.60 100.00 Huoli 14.99 11.56 37.47 2.57 9.64 10.71 8.67 100.00 Fengshou 11.89 17.91 17.84 2.45 13.95 8.48 8.61 100.00 Average 24.92 12.96 23.03 4.96 15.47 10.79 9.84 100.00

Overall, the livelihoods of the affected households have been greatly influenced by urbanization, they don't depend on agricultural production any longer, especially at the villages close to urban area, and many families have no land now due to land expropriation. In addition to non-sustainable

24 incomes e.g. the compensation for expropriated or occupied land or demolished structures, major source of incomes of the affected households is shifting from agricultural sector to non-agricultural sectors e.g. business and service sectors.

3.4 Public consultation activities already held

In order to timely deal with the problems and requirements of the affected households in land acquisition and resettlement, it is necessary to consult with and solicit opinions from the affected persons before the implementation of the RAP. During the survey on the livelihoods of the affected households, public consultation activities were held at Xiangyang, Huoli, Zhangzhuang and Shanghu villages affected by permanent land acquisition or structure demolition and at Fengshou village affected by temporary land occupation to listen to the ideas and opinions of the affected persons.

3.4.1 Discussion meetings

In addition to public consultation activities at some communities of Xiangshan town, five discussion meetings were organized at Xiangyang, Huoli, Zhangzhuang, Shanghu and Fengshou villages. Details about discussion meetings are described in Table 3-8. Table 3-8 Public consultation activities

Date Place Participants Issues discussed Results Involuntary Resettlement Research Center of China Main environmental Communities Three Gorges University problems in the including Xishan, See the Report on Public Jul. 25-30 of (CTGU), Ma'anshan community, Beishan, Shishan and Consultation Activities at Affected 2016 Municipal Project understanding about and Pingshan etc. at Communities of Xiangshan Town. Management Office (PMO), support for the Xiangshan town. residents of the affected WB-funded project communities 1) Compensation and resettlement policies: the latest national and local policies shall prevail; 2) Socio-economic survey, resettlement method: the persons Involuntary Resettlement survey on project impact Village committees affected by land acquisition wish to Research Center of China range and quantity of of Xiangyang, get compensation according to the Three Gorges University land to be acquired and Jul. 26 - Aug. 10 Shanghu, Unified Annual Production Value (CTGU), Ma'anshan structures to be of 2016 Zhangzhuang, and Compensation Standard for Municipal Project demolished, consultation Fengshou, Huoli and Land Acquisition in Anhui Management Office (PMO), on resettlement policies, Liannong Province published on February the affected villagers survey on resettlement 28, 2015, and most of the persons methods. whose structures will be demolished choose cash compensation and a few of them

Date Place Participants Issues discussed Results choose property swap. 3) The affected persons expressed their support for the WB-funded project under the premise of getting reasonable compensation. Ma'anshan Municipal PMO, CTGU Involuntary Report on field survey Aug. 12, 2016 Development Reform A preliminary report to the PMO Resettlement Research Center results Commission (DRC) Several issues PMO, CTGU, design institute Aug. 16, 2016 DRC concerning resettlement First draft of RAP (DI) regulations and methods Resettlement regulations The seventh project and methods, progress of Dec. 19-23, 2016 DRC implementation support and RAP (draft for review) land acquisition, public monitoring activity consultation

3.4.2 Questionnaire survey

Based on the analysis of 73 effective questionnaires, the following conclusions are drawn: 1) Opinions on compensation and resettlement Most of the households whose land is expropriated or occupied hope to get the compensation money and make a living by themselves.60% of the households whose houses are demolished prefer cash compensation and 30% of them choose the return of an apartment. The survey results were considered when developing compensation and resettlement regulations, see Chapters 4 & 5. Table 3-9 Opinions on the compensation for expropriated or occupied land (%) Compensation method for land acquisition Resettlement subsidy is Compensation Compensation money is Villages given to households and money is given to given to households and Non-agricultural land compensation is given the collective and they make a living by job opportunities to the collective. land is reallocated themselves are offered. Total Fengshou 0.00 0.00 83.30 16.70 100.00 Huoli 33.30 0.00 66.70 0.00 100.00 Shanghu 7.70 15.40 76.90 0.00 100.00 Xiangyang 0.00 0.00 100.00 0.00 100.00 Zhangzhuang 0.00 0.00 100.00 0.00 100.00 Total 5.30 5.30 86.80 2.60 100.00

Table 3-10 Opinions on the compensation for demolished structures Villages Compensation methods for demolished structures Total

Return of an Return of a house on new Others apartment homestead Cash compensation Huoli 0.00% 66.70% 0.00% 33.30% 100.00% Shanghu 8.30% 25.00% 0.00% 66.60% 100.00% Xiangyang 0.00% 36.40% 9.10% 54.60% 100.00% Zhangzhuang 0.00% 11.10% 22.20% 66.70% 100.00% Total 2.50% 30.00% 7.50% 60.00% 100.00%

We found through interviews that there were three reasons why the affected households prefer cash compensation rather than property swap: 1) In some projects in Ma'anshan, the transition period from moving out from their original house to moving into the new houses was too long, causing inconvenience to their life and work; 2) some families have more than one house, they can live in another of their houses in transition period, so what they want is get cash as soon as possible or move to a better place; 3) Young persons in villages have moved to urban area, so mostly the land is operated by the aged persons. But the aged persons are too old to do farm work, they are very willing to have their land expropriated, so they can move to live with their children. 2. Understandings of and attitudes toward the environmental governance project 65% of survey respondents know the Cihu River project, mainly through government documents (62.1%) or through radio, television and newspapers (13.8%).We found in interviews that such a high proportion of the survey respondents knew Cihu River project mainly because some project activities were located at Huoli, Shanghu and Linli. After listening to the introduction of project activities, more than 90% of the villagers expressed that environmental governance was "very important" or "important" and they were willing to assist the government in the implementation of this project (see Figure 3-3).So, this project wins a wide support at the affected area.

是否愿意配合政府实施此项 Whether willing to assist government in the 27

目 implementation of Cihu River project or not? 百分比 Percent 不愿意 Unwilling 未回答 Unanswered 愿意 Willing Figure 3-3 Local people's attitudes toward the implementation of Cihu River project

All of survey respondents believed that this project would bring them benefits, none of them insisted that this project had no benefits, and 2% of them chose "others". With respect to what kind of benefits this project will bring, 78% of the survey respondents mentioned "water quality improvement", 74% mentioned "improvement of living environment", and 52% mentioned "air quality improvement" and "improvement of living conditions" (see Figure 3-4).

100% 90% 78% 80% 74% 70% 60% 52% 52% 50% 系列1 40% 30% 20% 13% 13% 10% 2% 0%

其它没好处水质改善空气净化

居住环境改善

资产升值的可能性为改善居住条...增加获得收入的机会

系列 1 Series 1 水质改善 Water quality improvement 空气净化 Air quality improvement 为改善居住条件 Improvement of living conditions 增加获得收入的机会 Increase of job opportunities 资产升值的机会 Assets appreciation 居住环境改善 Improvement of living environment 没好处 No benefits 其它 Others Figure 3-4 Benefits caused by this project The survey data shows that the residents in and near the project area have suffered floods and sewage overflows for long, so they are very supportive for Cihu River project and hope that this project can alleviate water pollution, protect them against floods and improve air quality and their living environment and conditions. 3) Awareness of local environmental problems Survey results show that the top three problems most concerned by local people are water pollution abatement (89.1%), water protection and management (69.5%), and air pollution abatement (52.2%),

28 followed by collection of domestic wastes (47.8%) and collection and disposal of industrial wastes (43.5%). The survey respondents' awareness of local environmental problems fits with this project (improvement of storm and sewage drainage network and rehabilitation of Cihu River mainstream and tributaries), also consistent with our findings in interviews. Table 3-11 Awareness of local environmental problems Very Somewhat Not very Not important at Important important important important all Water pollution 89.1 6.5 2.2 2.2 0 abatement Air pollution 52.2 19.6 19.6 8.7 0 abatement Water protection and management 69.5 19.6 6.5 4.3 (water source and floods) Collection and disposal of 43.5 8.7 15.2 23.9 8.7 industrial wastes Collection and disposal of 47.8 15.2 23.9 10.9 2.2 domestic wastes Construction of 34.8 8.7 28.3 17.4 10.9 green space Noise control 32.6 17.4 23.9 13 13 Water and soil 19.6 13 26.1 32.6 8.7 erosion Soil pollution 39.1 17.4 17.4 23.9 2.2 Others (please specify)

4 Compensation and resettlement regulations

In respect of the land acquisition and demolition required by the WB-funded project (mainly the supplementary project) after interim adjustment, the compensation and resettlement activities shall follow the principles and measures stipulated in the previous RAP and adjustments may be made according to the new standards and policies published by Anhui province and Ma'anshan municipality.

4.1 Regulations on the acquisition of collective land

The previous RAP was prepared in 2012, but on February 28, 2015, Anhui Provincial Government published the Unified Annual Production Value and Compensation Standard for Land Acquisition in Anhui Province. So, compensation for acquired collective land after interim adjustment shall follow the new policy. According to the new policy, the land in the project area is rated levels II & III and the composite land prices are 55,600 or 60,500 Yuan/mu respectively, 5000 Yuan higher than the old policy.

Table 4-1 Compensation rates for the acquisition of collective land, Yuan/mu Village and district Compensation relating to land acquisition Land compensation Resettlement subsidy Total Xiangyang village in Yushan district, Shanghu 24200 36300 60500 village in Huashan district Zhangzhuang and Huoli in Huashan district 22200 33400 55600

Special facilities on the acquired collective land will be rebuilt at original scale to restore original functions. Those that can't be rebuilt will be compensated at the replacement price. Compensation for ground attachments will be made at replacement price to their owners. Compensation for standing crops on the collective land acquired shall be made according to the Notice of Ma'anshan Municipal Government on Issuing the Compensation Standards for Standing Crops on and Attachments to the Collective Land Expropriated in Urban Area of Ma'anshan (M.Z.M [2013] No. 21).Compensation rates for ground attachments and standing crops are described in Table 4-2.

Table 4-2 Compensation rates for attachments to and standing crops on the collective land acquired Compensation rate Attachments and standing crops Description Unit (Yuan) Standing Vegetable Vegetables for sale Mu 1400 crops Grain and oil crops Rice, wheat, etc. Mu 1200 Shorter than 10cm Each 2 10-20cm Each 5 Scattered trees Common trees 20-30cm Each 8 30-40cm Each 15 Taller than 40cm Each 20 Garbage pool Each 600 Bridge, ditch Steel structure, with film Mu 4000 etc. Greenhouse Bamboo structure, with film Mu 2000

Other costs relating to land acquisition are shown in Table 4-3.

Table 4-3 Other costs relating to land acquisition No. Items Rates Relevant regulations Relevant rules of the 1 Tax on occupancy of cultivated land 3000 Yuan/mu Municipal Land Resources

Bureau 2 Water conservancy fund 500 Yuan/mu W.Z. [2000] No. 3 3 Cultivated land reclamation fee 9 Yuan/m2 4 Management cost of acquired land 4% of the cost of land acquisition 5 Land surveying fee 40 Yuan/mu 5% of total cost for land 6 Administrative expenses acquisition 1% of total cost for land 7 Technical training expenses acquisition External monitoring and evaluation (M&E) 0.5% of total cost for land 8 expenses acquisition Cost of land reclamation for increasing 9 40000 Yuan/mu farmland Cost of use of newly-added construction 10 6 Yuan/m2 land 10% of the sum of the basic costs plus design expense, management 11 Contingency expenses fee, training expense and monitoring expense.

4.2 Regulations on the demolition of structures on collective land

Two resettlement methods, i.e. cash compensation and property swap, are offered for the demolished structures on collective land. 4.2.1. Cash compensation

Cash compensation, if preferred by house owner, will be made at the appraisal price of the demolished house. 1) Calculation of compensation amount: cash compensation amount = effective number of persons in each household*30m2/person*average sale price of new houses + additional quota of housing area for each household*(average sale price of new houses - construction & installation cost). The average sale price of new houses is determined by a qualified real estate company through investigations and appraisal. Since the average sale prices of new houses are different in different districts, ranging from 3100 Yuan/m2 to 4700 Yuan/m2, it is tentatively fixed at 4000 Yuan/m2. The cost of construction & installation is 2080 Yuan/m2, unified in the whole city. 2) Release of compensation money The compensation money won't be given to the households, but will be released to and managed by the Land and House Expropriation Management Bureau, to be used specially for house purchase by the households. The persons who choose cash compensation can buy commodity house or second-hand house and 31 must sign contract with the property developer or the seller of second-hand house and finish the procedures of filing. The Land and House Expropriation Management Bureau of the district will take out the compensation money to make payment to the property developer or the seller of second-hand house. If the purchase price is higher than the compensation money, the difference shall be paid by the households; if the purchase price is lower than the compensation money, the surplus amount will be given to the households after house purchase procedures are finished. If the households won't purchase house in short term, the compensation money will be kept by the Land and House Expropriation Management Bureau, and interest will be produced from the ending of transition period according to the demand deposit interest rate of bank for the corresponding period. 4.2.2. Property swap

The displaced households who choose property swap will be supplied with new houses, which are built to accommodate the displaced households. Size of the new house will be based on 30m2/person. If the original living space (not including lean-tos) is less than 30m2 each person, the size of the new house will be based on 30m2/person; if the original living space per person is higher than 30m2, the new house will be still based on 30m2/person and cash compensation will be made for the excess area of the demolished house. The displaced households can apply for an additional quota of 10m2/person for the new house, and the price for this part shall be paid by the households at the cost of construction and installation. The displaced household including 3 or more persons may get two or more apartments, provided the total area of the apartments doesn't exceed the housing area (including additional quota) they can get. If the size of new house exceeds the housing area (including additional quota) one household can get due to reasons of house structure or shape, the excess part within 5m2 shall be paid at the cost of construction and installation, and the excess part beyond 5m2 shall be paid at another price properly determined. If the original living space per person is larger than 30m2/person, cash compensation will be made for the excess part, 550 Yuan/m2 for brick-concrete structures and 350 Yuan/m2 for brick-wood structures. 4.2.3. Compensation for decoration, relocation allowance and transition allowance

If the demolished house is decorated, compensation for decoration shall be made at the rate of 193 Yuan/m2 based on the effective area of the demolished house, or at another rate agreed by the house owner and the Land and House Expropriation Management Bureau. If no agreement is reached, the compensation shall be made according to the appraisal price on the announcement date of house demolition. Relocation allowance shall be 600 Yuan for each household, granted to each displaced household twice. The transition allowance is 300 Yuan/person/month, granted for twelve months

(one year).

5 Resettlement and livelihood restoration plan

5.1 Objectives, methods and principles of resettlement and livelihood restoration

5.1.1 Objectives of resettlement and livelihood restoration

According to the WB policy on involuntary resettlement and relevant laws and regulations of China, the objective of the resettlement work is to restore and try to improve the production and livelihood of the project-affected persons, including five aspects: 1) The families whose houses are demolished receive cash compensation at replacement cost or get new houses and their living conditions are restored to original level at least and improved if possible. 2) The attachments to the land acquired receive compensation at replacement cost; 3) Public buildings and special facilities on the land acquired receive compensation at replacement cost or are rebuilt to restore original functions. 4) The public facilities and environment of the affected communities are restored and improved if possible. 5) The labors whose land is expropriated or occupied are well arranged to guarantee their long-term livelihood and restore and improve their living standards.

5.1.2 Methods of resettlement and livelihood restoration

The resettlement and livelihood restoration are implemented from two aspects: life and production. Restoration of life refers to construction of new houses and supporting facilities, including: 1) Provide the house-demolished families with cash compensation or new houses. 2) Construction and improvement of infrastructure including water and power supply. Restoration of production refers to provision of job opportunities to the displaced people and restoration of production facilities, including: 1) Properly arrange the displaced persons depending on agriculture to ensure their long-term livelihood. 2) Reconstruct necessary facilities to restore production or operation of the displaced entities.

5.1.3 Principles of resettlement and livelihood restoration

1) The affected people take part in the whole process of resettlement implementation. The decisions relating to resettlement, such as compensation rates for demolished structures, selection of resettlement site, schedule of structure demolition, schedule of livelihood restoration, funds allocation, use and management of resettlement funds, restoration measures of production and operation etc., will be made by consulting the affected people or their representatives and obtaining their consents through discussion meetings. 2) The compensation money for private properties will be sent to the hands of the property owners and won't be retained or embezzled by any other person or entity. 3) Compensation for houses, special facilities and attachments will be calculated at the replacement price. The compensation amount given to property owners must be based on the disclosed compensation rates, without deduction or depreciation, bearing no taxes. All articles in the demolished house belong to house owner, and the compensation amount for demolished house won't be decreased by the value of remaining materials after demolition.

5.2 Resettlement of the house-demolished families

Now, two resettlement options are offered by Ma'anshan Municipal Government for the families whose housings are demolished: cash compensation and property swap. Due to too long transition period before resettlement site is constructed in some projects and the changes of the relation between supply and demand in recent years, cash compensation is more attractive. Our questionnaire survey also shows that 60-70% of the house-demolished families tend to choose cash compensation (see Table 3-10). An investigation was carried out by the PMO and district governments to ask the families whose houses are demolished about their choices of resettlement methods. Results show that 60 families including 312 persons chose cash compensation and 25 families including 182 persons chose property swap (see details in Table 5-1). Hence, the PMO determined that after interim adjustment, the resettlement of the families whose houses are demolished will focus on cash compensation, supplemented by property swap. Table 5-1 Choices of resettlement methods in each district Cash compensation Property swap Districts Number of persons Number of households Number of persons Number of households Yushan 130 20 106 16 Huashan 85 14 28 5 Xiushan New District 72 16 48 4 Cihu hi-tech zone 25 10 0 0 Total 312 60 182 25 Note: Xiushan New District is an administrative division of Huashan district but it is considered separately resettlement implementation (including resettlement cost). 1) Cash compensation

Field survey shows that all project-affected places locate at rural-urban fringe and have integrated with urban area in recent years due to urban construction. In a long period of time in the past, governments had no strict limitation on size of rural houses, so each rural family has very large living space. Averagely, each family has more than 300m2 living space (brick-concrete structure), this is only the size within the boundary line of road construction, so the actual living space must be larger than 300m2.Therefore, the dwellings of some families are demolished only partially, the remaining part may be still large enough for them, so they usually don't want the replacement housing. Some families have more than one dwelling, so they may also prefer cash compensation. If these families choose cash compensation, special bank accounts will be opened for them, only used for house purchase. We know from Table 5-1 that cash compensation is preferred by 20 households in Yushan district, 14 households in Huashan district, 16 households in Xiushan New District and all 10 households in Cihu hi-tech zone. 2) Property swap Of the 25 households choosing property swap, 16 households are in Yushan district, all at Xiangyang village. The government of Xiangshan promised that all households choosing property swap would be relocated at Shipai plot resettlement site. It locates on the south side of Xiangpu Rd. and on the west side of Xiangshan Rd., 1.5km away from Xiangyang village. With an investment of 450 million Yuan, it will be completed in November 2016, and will provide 1168 apartments, enough to accommodate the households choosing property swap. After completed, the resettlement site will be surrounded by all kinds of amenities, more convenient than Xiangyang village. 5 households in Huashan district chose property swap, all at Shanghu village. They will be resettled at the Shanghu Jiayuan housing estate. It covers an area of 76,256m2 and the floor area after completed will total up to 310,112m2, including 47,033m2 underground and 263,080m2 on ground. 20 buildings will be constructed, of which 15 buildings are for residential purpose, providing 2485 apartments, having gross floor area of 243,029m2, and 5 buildings are for nonresidential purpose, having gross floor area of 20050m2 (See Figures 5-1 & 5-2). 4 households in Xiushan New District chose property swap, at Zhangzhuang and Huoli villages. They will be resettled at the housing estate to be built on Wudangang plot 4#. The housing estate is named Fengshou Jiayuan, locating at Fengshou village, Huoli town, Huashan district, at the northwest corner of the intersection between Lvyou Ave. and Huolishan Ave., having a distance of less than 2 kilometers from Zhangzhuang or Huoli. It covers an area of 142mu and the floor area after completed will total up to 290,000m2. 23 buildings will be built, including 1 kindergarten, 3 commercial buildings with street frontage, 2 underground garages, and 17 residential buildings (5 24-storey and 12 18-storey), to provide 2552 apartments, having gross floor area of 231,000m2. The life here is more convenient than that at villages. Figure 5-1 Shanghu Jiayuan resettlement site (the displaced people already moved in)

Figure 5-2 Shanghu Jiayuan resettlement site (not completed)

5.3 Resettlement of the land-acquired farmers

Survey shows that the permanent acquisition of 354.1mu collective land is required by the supplementary project, mainly comprising of vegetable field and homestead (37.2mu). 558 households are affected, including 784 persons (see Table 2-2).Averagely, land acquisition from each household is 0.56mu. Total quantity of land to be acquired is not large, but too many households are involved. This is because the linearity of road and water conservancy projects. We know from field survey that most of the farmland to be acquired is on slopes, having poor harvest, and high-quality vegetable fields are very few. Survey workers of CTGU found from surveys and interviews that in the project area, most of the families plant vegetables for self-eating and only a few of them sell the surplus vegetables. Generally speaking, 85% of the incomes of the families are from non-agricultural production and operations,

36 the land only contributes to an decrease of 14%(see Table 3-7) in household expenditure of non-staple foods, so the acquisition of small amount of vegetable field from each family has small influence on family livelihood. The influence can be made up for by the adjusted planting structure of remaining land and the increased employment opportunities brought by the supplementary project. In the survey, the families also expressed their opinions on resettlement method. 86.6% of the surveyed families prefer that all land compensation is paid to them directly. Considering common practices for land acquisition at suburban of Ma'anshan, with full respect for the opinions of the affected families, and after repeated consultations with the affected villages, the compensation money for land acquisition will be allocated and used in the following way. Full amount of resettlement subsidy and 70% of land compensation are given to the farmers. The remaining part of land compensation will be firstly used to incorporate the farmers into social security system on a voluntary basis, and those who are unwilling to do so will get the money. The remaining amount of land compensation is used mainly for public welfare undertakings of the village collective, to be decided through villagers' representative meeting. The allocation and use of resettlement subsidy and land compensation will be monitored and audited by superior organs. Resettlement subsidy will be paid and used in the following way: 1) Persons under the age of 16 (including those who live with parents and experience the change from agricultural to non-agricultural status in involuntary resettlement) will get the raising subsidy, i.e.12,000 Yuan; 2) The persons aged 16 or above will get the employment subsidy, i.e. 15,000 Yuan. 3) The persons who has changed from agricultural to non-agricultural status on their own costs and have no regular job or source of income, who were under 16 when changing status from agricultural to non-agricultural due to land acquisition last time, and who are learning full-time programs at college or university, will get subsistence allowance, i.e. 8000 Yuan. 4) After deducting all above payments, the remaining amount will be deposited into the special account for old-age security for the land-acquired farmers. The displaced agricultural population shall be determined by dividing the quantity of cultivated land to be acquired by the per capita cultivated land in each village before land acquisition. The total number of the land-acquired persons in a village shall be the number of registered permanent agricultural residents who meet with resettlement requirements on the announcement date of land acquisition. The total quantity of cultivated land of a village before land acquisition is subject to the investigation results of the land resources bureau. The displaced agricultural residents approved will be changed from agricultural to non-agricultural status at public security organ and will be incorporated into the basic old-age security system for land-acquired farmers, and the employment service system and medical insurance system for urban residents. The families whose per capita income is below subsistence level will be brought into the urban subsistence security system. The families whose cultivated land per capita is less than 0.1mu will be reported by the village committee and verified by civil affairs bureau, land resources bureau and district and sub-district governments, and after that, the families members will be changed from agricultural to non-agricultural status and the families will be brought into the urban subsistence security system and obtain the subsistence allowance. Basic old-age security for land-acquired farmers 37

In accordance with the Interim Measures on Basic Old-age Security for Land-acquired Farmers in Ma'anshan, the land-acquired farmers who didn't purchase urban basic endowment insurance shall be brought into the basic old-age security system for land-acquired farmers. According to surveys, the pension fund for the land-acquired farmers comprises of pooling fund and personal account fund and is deposited in the special account opened by Financial Bureau. Revenue and expenditure of the pension fund will be managed separately and the fund is used only for old-age pension for the land-acquired farmers. The pooling fund comes from: 1) fees charged on land acquisition, 30 Yuan/m2 for the land obtained by way of administrative allocation and 20 Yuan/m2 for the land obtained by way of transfer (10 Yuan/m2 for industrial land); 2) 15% of land compensation (half of the amount retained by the collective); 3) 20% of the municipality-retained amount of the fees for use of newly-added construction land; 4) 50% of new vegetable field development and construction fund; 5) other available funds, all of which will be collected by municipal and district land resource bureaus. Personal account fund comprises of the payments made by the land-acquired farmers and the interests accrued. The farmers may choose from two levels of payments, i.e. 6,000 Yuan and 9,000 Yuan. They need to apply to the municipal social security bureau and pay the amount at one time. Males begin to obtain a regular payment monthly since 60 and females began since 55. The land-acquired farmers reaching the specified ages will get pension payment: the basic pension i.e. 240 Yuan/month for those who made no payments into personal account; 300 Yuan/month including basic pension 240 Yuan and personal account pension 60 Yuan for those who paid 6000 Yuan into personal account; 335 Yuan/month including basic pension 240 Yuan and personal account pension 95 Yuan for those who paid 9000 Yuan into personal account. The basic pension is drawn from pooling fund and personal account pension is drawn from personal account fund. After the personal account fund is used up, personal account pension will be drawn from pooling fund. After the death of the farmers, the balance money in personal account will be given to their legal successors or designated beneficiaries. Table 5-2 shows three benefit payment options of the old-age security system. Table 5-2 Three benefit payment options of the old-age security system Benefit payment (Yuan/month) No. Premium payment Basic pension Personal account pension Total 1 No 240 0 240 2 6000 Yuan 240 60 300 3 9000 Yuan 240 95 335

Each farmer can obtain at least 12,000 Yuan compensation money for the acquired land, higher than the highest premium payment of 9000 Yuan. Even if the affected villages and families make no payments, the land-acquired farmers can still get the subsidy i.e. 240 Yuan/month. So the livelihoods of the land-acquired farmers will be guaranteed. Survey shows that the vast majority of the land-acquired farmers, especially the elderly, are willing to join in the old-age security system. After changing from agricultural to non-agricultural status, the land-acquired farmers will receive employment training and join in the medical insurance system. The land-acquired farmers who have no job can go to the Public Employment Service Office of each district for assistance. There, their information will be registered and they will be given the Employment Service Card. With this card, they can get job opportunities for free and receive 38 employment training subsidy. Cost of employment services and supports for the land-acquired farmers will be disbursed from the re-employment fund. The land-acquired farmers who have changed from agricultural to non-agricultural status can go to the office of the community to apply for the urban basic medical insurance according to the regulations of the Labor and Social Security Bureau. 6 Resettlement funds budget and management

6.1 Composition of resettlement funds

The cost of resettlement for the project mainly consists of the following parts: cost of land acquisition; cost of structure demolition; compensation for the demolished attachments and public facilities; other costs related to resettlement; administrative expenses for resettlement; and contingency expenses. Cost of land acquisition Cost of land acquisition includes compensation funds and various taxes and dues. Specifically, it involves land compensation, cost for use of newly-added construction land, farmland occupancy tax, management cost of acquired land, vegetable plot development fund, and other taxes and fees required to be paid. Cost of structure demolition Cost of structure demolition includes: (1) Compensation for private housing demolition. The compensation is divided into two parts: compensation of the amount of the difference between the valuation of a house prior to its demolition and the estimated price of a corresponding resettlement house (based on 30m2 of housing per person); and compensation for the area equal to the area of a house prior to its demolition minus 30m2 per person. (2) Relocation subsidies, transition allowance Compensation for the demolished attachments and public facilities Compensation for public facilities and land attachments will be determined based on their quantity and relevant compensation standards. Other costs related to resettlement It refers to expenses incurred in the preparation and implementation of resettlement work, e.g. monitoring and appraisal expenses payable to external monitoring agency, and the expenses for the measurement and appraisal of the demolished objects by professional agency. The expenses will be calculated according to industrial standard or by reference to the standard used in similar projects. Administrative expenses for resettlement Administrative expenses for resettlement will be 5% of the basic costs. Administrative expenses will be used for all kinds of matters related to land acquisition and structure demolition, including 39 organizational improvement, organization & coordination, internal monitoring, public affairs, reception, occupational training, rewards for progress in land acquisition or structure demolition, information collection and release, earlier stage preparation, lease or purchase of offices, salary, welfare and social insurance for employees, purchase and use of vehicles, vehicle maintenance, communications and daily management. Contingency expenses Contingency expenses include two parts, i.e. contingency cost for materials and contingency cost for price difference (excluding the cost incurred from modification of project design), generally calculated as per 10% of basic costs.

6.2 Budgeting for resettlement funds

Based on the compensation standards and statistics of the affected items, the resettlement compensation for Ma'anshan Cihu River Basin Improvement Supplementary Project totals 109,259,616 yuan (see Table 6-1). See Schedule 1 for the details. Table 6-1 Resettlement budget for Ma'anshan Cihu River Basin Improvement Supplementary Project No. Item Unit Quantity Compensation Amount Standard (Yuan) I Basic costs Yuan 90128596

1 Cost of land acquisition Yuan 36351996

Compensation for acquired mu 354.1 55600-60500 16647550 collective land Compensation for standing crops mu 316.9 1400 443660

Tax on occupancy of cultivated mu 316.9 30000 9507000 land Cost of use of newly-added m2 236064 6 1416360 construction land Cultivated land reclamation fee m2 211265 9 1901376

Water conservancy fund Yuan/mu 316.9 500 158450

Cost of land reclamation for Yuan/mu 316.9 4000 770080 increasing farmland Temporary land occupation mu 640 1400 896000

2 Cost of structure demolition Yuan 53776600

Price difference arising from the part of resettlement house Yuan/person 346 103500 37156500 exceeding 30m2 per person (monetary compensation) Price difference arising from the part of resettlement house Yuan/person 148 45900 8353800 exceeding 30m2 per person (property swap) Compensation for area Yuan 14820 550 6224000 difference Compensation for Decoration Yuan 26300 193 5075900

Relocation allowance household 85 1200 102000

Transition allowance Yuan/person 494 3600 1778400

II Other costs 5611723

1 Agency fees of land acquisition and housing demolition (as per 1.8% of basic costs) 1624043 2 Monitoring and appraisal expenses (as per 0.4% of basic costs) 360514

Other related costs for building demolition & site clearance and for engagement of appraisal and 3 3627167 audit organs (as per 1% of basic costs) III Administrative expenses for resettlement (as per 5% of basic costs) 4506437 IV Contingency expenses (as per 10% of basic costs) 9012860 Total 109259616 Note: the transitional period is 12 months.

6.3 Allocation of resettlement funds

6.3.1 Recipients of resettlement funds

In order to make sure that the funds can be allocated to the affected individuals and organizations timely and fully, we will give full play to the role of external monitoring agency, internal monitoring departments and state audit authorities, and at the same time, we will minimize intermediate procedures and distribute resettlement funds directly to individuals and organizations in a simple and practicable manner. See Table 6-2 for the details. Table 6-2 Recipients of resettlement funds Recipient Category of Funds Village Compensation for land, attachments, collective facilities, etc. collective Compensation for housing demolition, attachments, and standing crops (only for Household those whose standing crops are acquired), relocation subsidies, transition allowance, etc. Other Taxes and charges on land acquisition organizations

6.3.2 Sources and flows of resettlement funds

The funding sources of the project are as follows: (1) World Bank loan of 87.2 million USD (equivalent to 581.71 million CNY, at an exchange rate of 1: 6.6707), accounting for 71.74% of the project's gross investment. (2) Domestic counterpart funds of 229.12 million yuan from local finance, accounting for about 28.26% of the project's gross investment; the funds are obtained in line with the relevant provisions of the State Council, and can meet the requirement of the World Bank financed project. All resettlement funds of the project are included in the domestically allocated funds and will be provided by local governments. The resettlement funds will be distributed to the compensation recipients through special account with as few intermediates as possible, in order to prevent funds from being retained or embezzled. To ensure that the resettlement funds are in place timely and fully, and to ensure the restoration of the production, livelihood and income level of the affected rural households, the following measures will 41 be taken: (1) All costs related to resettlement caused by housing demolition will be included in the general budget of the project. (2) Land compensation and resettlement subsidies will be fully paid before land acquisition to ensure that all affected persons (APs) are properly resettled. (4) Financial and supervisory agencies will be established at different levels to ensure that all funds are fully and timely available, so that land acquisition and resettlement proceed smoothly (5) The finance and audit departments of Ma'anshan Municipal Government have the power to monitor and audit the use of resettlement funds. (6)The external monitoring agency will perform follow-up monitoring on the payment of compensation to the affected households during external monitoring.

Local counterpart funds

PMO

PMOs in different districts

Land resources bureau, Bank Town Land and House governments/S Expropriation ub-district Management Bureau offices

Villages/communities

The

Attachment APs

Figure 6-1 Fund Flowchart

6.4 Disbursement, management and monitoring of resettlement funds

6.4.1 Disbursement of resettlement funds

Resettlement funds will be disbursed on the following principles: (1) All costs related to land acquisition and structure demolition will be included in the general budgetary estimate of the project. Compensation for land acquisition and structure demolition for (project) components will be audited by the PIUs and will be disbursed by construction bureaus in different districts directly to relevant entities or individuals through a special account under the supervision of Ma'anshan Project Management Office (PMO). (2) Compensation for the affected households will be disbursed to them through a special account. (3) Compensation for land acquisition will be disbursed to the APs before land acquisition;

6.4.2 Management and monitoring of resettlement funds

1) Resettlement funds must be disbursed in strict accordance with RAP and national laws and regulations related to land acquisition and housing demolition; the disbursement must not be lower than the compensation standard specified in the RAP. 2) The PIUs will submit the construction schedule to the PMO every month. They are responsible for reviewing disbursement statements, which will be signed by persons in charge of PIUs and reported to the finance departments of the PIUs for fund appropriation. The PMO will handle the disbursement of progress payment based on the signed disbursement statements; the finance departments of the PIUs will then use the progress payment they have received to pay compensation directly to the APs. 3) Compensation for relocation, land acquisition, and housing and attachment demolition covers relocation subsidies, transition allowance, incentives for relocation ahead of schedule, the cost of relocating indoor facilities, and the losses to businesses and institutions; the compensation must be approved by the PIUs. 4) The PMO will employ a consulting firm to audit the resettlement funds used by the resettlement office. 5) The finance and audit departments of Ma'anshan Municipal Government will monitor and audit the use of resettlement funds 6) Utilization of resettlement funds will be monitored and audited by the finance and audit departments of Ma'anshan Municipal Government. 7) The external monitoring agency will perform follow-up monitoring on the payment of compensation to the affected households during external monitoring.

7. Resettlement implementing units (RIUs)

7.1 Institutional arrangement

In order to ensure successful resettlement for the project, Ma'anshan governments at different levels will establish organizations and enhance their competence. When preparing for the project, the governments have set up resettlement organizations and defined their responsibilities. Based on the implementation of the project in the early stage, the PIU has set up PMOs for (project) components in Huashan district (including Xiushan New District), Cihu hi-tech zone, and Yushan district. The main organizations related to the project and resettlement are as follows:  The Project Leading Group for Ma'anshan Cihu River Basin Improvement Supplementary Project (Ma'anshan Project Management Office, or PMO)  PIUs: PMO of Huashan District (including Xiushan District), PMO of Cihu Hi tech Zone, and PMO of Yushan District  Land Acquisition (LA) and Structure Demolition (SD) Office of Huashan District (including Xiushan New District), LA and SD Office of Cihu Hi-tech Zone, and Xiangshan Township Government of Yushan District  Village (community) committees  Project Design Institute  External Monitoring and Evaluation Agency See figure 7-1 for institutional arrangement

Project Leading Group

Ma'anshan Land and PMO House Expropriation Management Bureau

Design ernal M&E PIUs (PMOs in the different InstituteExt agency districts)

RIUs (LAD Offices in the different districts)

State-owned Land Attachments Infrastructure The affected land acquisition households

Figure 7-1 Chart of institutional arrangement

7.2 Responsibilities of the RIUs

 PMO It is responsible primarily for organizing the resettlement of the project, developing rules on resettlement, preparing RAP, coordinating relations among the resettlement organizations at all levels, and selecting an independent monitoring agency. It serves as a bridge between the World Bank, PIUs, and the independent monitoring agency.  PMO of Huashan District (including Xiushan District), PMO of Cihu Hi tech Zone, and PMO of Yushan District District PMOs are the PIUs for this project. Every District PMO has an environmental resettlement department with a full-time workforce of 2-3. It is responsible for not only handling day-to-day affairs in resettlement planning and implementation, but also managing, planning, implementing, coordinating, supervising, and monitoring resettlement. Specifically, their responsibilities are as follows: ①Developing rules on land acquisition, housing demolition, and resettlement for the project ②Commissioning the design institute to define the project area, survey the impact of land acquisition and housing demolition to material objects, and save the survey data ③Applying for the license for planning of land use and the license for land used for construction; ④Training the key resettlement officials; ⑤Organizing and coordinating the implementation of the RAP; ⑥Responsible for the management, appropriation and supervision of the funds; ⑦Directing, coordinating and supervising resettlement activities and their progress; ⑧Providing guidance and assistance for handling the complaints of the displaced persons; ⑨Hosting and inspecting internal monitoring; preparing progress reports on land acquisition, housing demolition, and resettlement, and submitting the reports to the PMO; ⑩Assisting in external monitoring activities  District LA and SD Offices The LA and SD Offices of Cihu hi-tech zone and Huashan district are headed by the leaders in charge of the district; the LA and SD Office of Yushan district is headed by the leaders in charge of Xiangshan Town. Though Xiushan New District has independent sources of funds to cover its resettlement cost, the resettlement implementation organization of Xiushan New District is still the LA and SD Office of Huashan district. The main responsibilities of these offices are as follows. ①Participating in the survey of the project and assisting in the preparation of the RAP; ②Organizing public consultation and communicating the resettlement policies; ③Implementing, inspecting, monitoring and recording all resettlement activities within the affected 45 area; ④Responsible for the disbursement and management of land compensation funds; ⑤Supervising land acquisition, occupation and restoration; ⑥Reporting LA and resettlement information to PMO and PIU; ⑦Coordinating and handling conflicts and issues arising from work  Affected village committees The resettlement working team of an affected village is composed of its key officials. Its main responsibilities are as follows. ①Participating in the survey of the socioeconomic impact of the project; ②Organizing public consultation, and communicating the policies on land acquisition and housing demolition; ③Organizing the implementation of agricultural and non-agricultural resettlement activities; ④Reporting the APs' opinions and suggestions to the competent authorities; ⑤Providing assistance to the displaced households with difficulties  Project design institute ①Reducing the population affected by the project through design optimization ②Defining the scope of the impact of land acquisition and housing demolition  External Monitoring and Evaluation Agency PMO will employ a qualified M & E agency as the external resettlement monitoring agency. Its main responsibilities are: ①Observing all aspects of resettlement planning and implementation as an independent M&E agency, monitoring and evaluating the resettlement results and the social adaptability of the displaced persons, and submitting resettlement M&E reports to the World Bank through PMO ②Providing technical advice in data collection and processing to PMO and the PIU

7.3 Staffing

In order to ensure the successful implementation of the resettlement plan, and strengthen communication between resettlement implementation agencies and the World Bank, PMO and other resettlement implementation agencies have been provided with full-time staff. See Table 7-1. Table 7-1 Full-time staff of resettlement organizations

Resettlement organizations Workforce Composition Project Leading Group 2 Government officials PMO 2 Civil servants, engineers

Resettlement organizations Workforce Composition District Construction offices 2-3 Civil servants, engineers District LA and SD Offices 4-5 Civil servants, engineers Designing Institute 2 Senior engineers, engineers

8 Public consultation and grievance procedures

In the project preparation process, the PMO and the resettlement organizations at different levels have always given priority to public consultation. Both the Resettlement Action Plan (RAP) and the Third Party Monitoring Report on Resettlement includes the useful information and advice with regard to public consultation activities. Public consultations have been carried out since the project started in 2014.

8.2 Plan for consultation with the affected persons

During the implementation of (project) components (land acquisition and demolition) after Project Interim Adjustment, the PMO, district PMOs, and LA and SD Offices will continue to hold public consultations in the following aspects: ●The APs' opinions on project design. Before construction, the construction bureaus of different districts and the LA and SD Offices will inform the APs of project design and impacts through different approaches. At the beginning of construction, the PMO will also carry out site survey, and work with village collectives and sub-district offices along the project area to determine the locations and dimensions of structures. With regard to the areas which a large number of people complain about, the PMO will organize the design institute to modify the project design again on the condition that the technical standard of the project is met. ●Policies on and implementation of resettlement and compensation for housing demolition ●The distribution of land compensation and the use of collective funds ●Resettlement house construction and allocation ●Others concerns of the APs Table 8-5 shows the timing of the following consultation between resettlement offices and the APs. According to PMO, the PIUs, sub-district offices, and village (residential) committees can hold public consultations now and then and report consultation results to the Project Resettlement Office. In addition to participating in the consultations organized by the PMO, the monitoring department will also independently consult with the APs on other monitoring issues, collect their complaints and suggestions, and provide monitoring information to the LA and HD departments at different levels. Table 8-5 Time for consultations with the APs Consultation Time Participant January to March, PMO, design institute, external monitoring Opinions on project design 2017 agency

Policies on resettlement and May to September, compensation for housing PMO, PIU, external monitoring agency 2017 demolition The distribution of land Throughout the compensation and the use of implementation of PMO, PIU, external monitoring agency collective funds the project Resettlement house construction PIU, PMO, district LA and SD Offices, 2017-2018 and allocation external monitoring agency Throughout the Collecting suggestions and Monitoring department, PMO, village implementation of complaints committees the project

8.3 Approaches to the APs' participation in consultation

1) Direct approach ●Meeting with the APs Through meetings with the representatives of the APs and village committees, the PMO can collect the information of the APs' concerns and their opinions, and solicit suggestions from sub-district offices and village (residential) committees accordingly. ●Information session for land acquisition and housing demolition for (project) components LA and HD information sessions will be held jointly by resettlement offices for (project) components. The resettlement offices will organize the APs to visit resettlement sites, where they can get first-hand information of supporting facilities, so that they can make a choice between resettlement apartments and monetary compensation. Moreover, the resettlement offices will also solicit the APs' opinions, so as to improve the RAP. After information sessions, the resettlement office workers will consult with the APs in person about the Compensation/Resettlement Agreement before signing it. 2) Indirect approach The APs can submit their complaints, advice, and suggestions to village (residential) committees, LA and HD departments at different levels, and monitoring departments; resettlement offices will provide feedback to the APs in accordance with the complaint handling procedures.

8.4 Information disclosure and RIB

In order to let all APs understand the resettlement policies and implementation details for the project, and truly make the resettlement work open, fair and transparent, the resettlement offices at all levels will take the following measures to ensure that the resettlement policies are disclosed. ●The leaders of the committees of the affected villages (neighborhoods) will disclose information with regard to the impact of the project to their communities, compensation standards, resettlement measures, and the channels through which local people file complaints.

●A copy of Resettlement Information Booklet (RIB) will be given to every affected household (see Annex 2). The RIB covers the detailed information with regard to the affected households, the resettlement policies and compensation standards applicable to the project, the project implementation process, and the handling procedure for the APs' complaints. The copies of the RIB will be sent to the APs before the project is officially launched. The RIB's format meets the requirement of the RAP. ●Disclosure According to the RIB, the information of the project was disclosed on the website of Ma'anshan Municipal Development and Reform Commission on September 2016. The disclosed information includes the basic information of construction, the name and contact of the construction contractor and resettlement monitoring agency, solicitation of public opinions, and the main ways in which the public gives advice.

8.4 Collection of grievances and complaints

(1) Reports prepared by village (residential) committees or by district LA and SD Offices; the reports cover the information of complaints, project progress, and project implementation measures and problems. (2) Construction logs faxed by the construction contractor every day to the PIU; the logs record the public's impact on construction; (3) Problems in coordination of land acquisition and housing demolition that are identified by the PIU on the construction site (4) Relevant information provided by the external monitoring agency. (5) Letters and visits from the APs. (6) Information provided by the workstations designated by the PIU (7) Relevant information provided by the audit, discipline inspection, and other departments. (8) Information of the cost of land acquisition and housing demolition that is collected from the bank's fund appropriation schedule. (9) Internal monitoring and ad hoc survey

8.5 Grievance procedure

●Stage 1 If any AP is dissatisfied with the RAP, he/she can report this to village (residential) committees or district LA and SD Offices and construction bureau orally or in writing. In case of an oral appeal, village (residential) committees or district LA and SD Offices and construction bureau shall handle such appeal and keep written records; such appeal should be solved within 2 weeks. If an appeal involves serious issues, such appeal should be reported to a resettlement office at a higher level; and a response to the appeal must be obtained from the office within 2 weeks.

●Stage 2 If the AP is dissatisfied with the disposition of Stage 1, he/she may file an appeal to the project component resettlement office after receiving such disposition; the office should make a decision on the disposition of the appeal within 3 weeks. ●Stage 3 If the AP is still dissatisfied with the disposition of Stage 2, he/she may file an appeal to PMO after receiving such disposition; the PMO should make a decision on the disposition of the appeal within 4 weeks. ●Stage 4 If the AP is still dissatisfied with the disposition of Stage 3, he/she may escalate the appeal to a civil court within 15 days after receiving such disposition.

8.6 Grievance record and feedback

During the implementation of the RAP, the LA and HD departments should register and manage the information of complaints and their disposition, and submit the information in written form to the PMO every month. The PMO will regularly inspect the registration of the disposition of complaints. In order to record the full information of complaints and their disposition, the PMO has made a registration form of complaints and their disposition for the APs. See Table 8-6 for the sample. Table 8-6 Resettlement complaint and appeal registration The receiving Time: Location: organization: Complainant Complaint Requested solution Proposed solution Actual disposition

Complainant Recorder

(signature) (signature) Note: 1. The recorder should faithfully record a complainant's complaints and requirements. 2. The appeal process should not be interfered or obstructed. 3. The proposed solution should be provided to the complainant within the specified time.

The main content of this chapter will be disclosed to the APs and sent in the form of promo materials to every affected household before resettlement begins. The resettlement offices for components will designate workers to receive visits from the APs and collect their complaints. See table 8-7 for these workers' name, office address, and contact number.

Table 8-7 The APs' complaints and complaints office and staff

Resettlement organizations Contacts Address Phone number Ma'anshan Resettlement Office for the Xiong PMO 8356156 project Maoneng The LA and SD The government of Xiangshan Office of Xiangshan Wang Bilong 3100161 Town Yushan District Town Complaints Office of The government of Xiangshan Yu Yuewen 3108815 Xiangshan Town Town Land and House Expropriation Land and House Expropriation Zhang Management Bureau of Huashan District Management Bureau of Huashan 8881331 Mingwu (including Xiushan New District) District Land and House Expropriation Land and House Expropriation Wang Wei Management Bureau of Cihu 2966917 Management Bureau of Cihu hi-tech zone hi-tech zone

9 Resettlement monitoring

The internal monitoring and external monitoring systems defined in the RAP for this project will be implemented for resettlement for components after Project Interim Adjustment.

9.1 Internal monitoring

Internal monitoring is a process in which the PIU and resettlement implementation agencies continuously monitors the implementation of the RAP through their management systems. It is aimed at keeping track of resettlement progress in a comprehensive, timely, and accurate manner, so as to identify and solve problems, helping ensure that resettlement proceeds successfully. The PMO will organize people to implement the internal monitoring of resettlement and regularly submit the internal monitoring report to the World Bank. Internal monitoring will cover the following: ● Organizations: establishment of resettlement implementation organizations and associated organizations, and their division of work; the staffing and capacity building of resettlement organizations; ● Resettlement policies and compensation standards: development and implementation of resettlement policies; implementation of compensation standards for various losses (losses caused by permanent land acquisition, temporary land occupation, demolition of houses and special facilities, etc.). Whether resettlement is implemented in accordance with the RAP's standards should be specified; if resettlement is not implemented in accordance with the RAP's standards, reasons should be explained. ● Progress of land acquisition, housing demolition, and resettlement: general schedule and annual schedule: resettlement organizations and staffing progress; implementation progress of permanent land acquisition and temporary land occupation in the project area; progress of the adjustment, acquisition, and allocation (to the DPs) of land in the resettlement area (including homestead, land

51 for production, and land for public facilities), progress of structure demolition and resettlement house reconstruction; progress of relocation of the DPs; progress of public facility construction; progress of the reconstruction and relocation of special facilities; and progress of other resettlement activities ● Resettlement budget: the amount of available resettlement funds and the time when resettlement funds are made available; the use and management of resettlement funds by resettlement implementation organizations at different levels; the amount of compensation funds paid to the affected owners of properties (real estate etc.), land owners (village/residential committees) and users, and the time when the compensation funds are paid; the use and management of compensation funds for village-level collectively owned land; supervision and audit of the use of compensation funds ● Resettlement of the DPs: resettlement methods for displaced rural persons and the number of displaced rural persons to be resettled; reclamation of temporarily occupied land; resettlement effects, etc. ● Complaints, appeals, public consultation, information disclosure, and external monitoring: the channels, procedures and organizations for complaints and appeals; complaints and appeals and their disposition; public consultations and their forms; public consultation effects; resettlement information booklet and information disclosure; external monitoring agency, activities, and effects; ●Handling relevant issues in the memorandum of the World Bank mission; ●Existing problems and their solutions The following internal monitoring methods will be taken for the project. 1) Standardized system of statistical reports The PMO will prepare unified reports based on the resettlement requirements. The reports should indicate the progress of resettlement fund appropriation and the quantity of the acquired land and demolished houses. The reports will be submitted to higher-level departments at the end of every month when funds are allocated, so that relevant parties can keep track of work progress. 2) Regular or irregular feedback Resettlement organizations should share the information of problems in resettlement implementation and provide advice on how to solve the problems. 3) Regular joint meetings At the beginning of every month, the PMO will hold a resettlement coordination meeting. Workers at resettlement offices for components will attend the meeting and report the project progress and problems, or share their work experience, or figure out solutions to the problems. 4) Inspection The PMO will conduct both routine and special inspections on the resettlement work of subordinate resettlement organizations, carry out field investigations, handle the problems of land acquisition, housing demolition, and resettlement on site, and verify work progress and the implementation of resettlement policies. 5) Information exchange with external monitoring agency 52

The PMO and the LA and HD implementation organizations should keep contact with the external monitoring agency and use the findings and evaluation opinions of the external monitoring agency as references for internal monitoring. 6) Survey The PMO will survey the affected persons through both questionnaire and interviews in an attempt to inspect the implementation of resettlement. A number of households or collective enterprises will be randomly selected for the survey on resettlement; the survey results will be included in reports, which should indicate the disbursement of compensation funds and relocation subsidies, so as to see whether the resettlement work is carried out in strict accordance with the RAP. Internal monitoring is a continuous process. Comprehensive monitoring should be conducted at least once a quarter; throughout the relocation of the DPs, monitoring should be increased. The PMO will submit an internal monitoring report to the World Bank every six months.

9.2 External monitoring

9.2.1 External monitoring agency and staff

Workers of the external monitoring agency must meet the following requirements: (1) External monitoring workers should have relevant work experiences and rich experience in socio-economic survey, understand the World Bank policies on involuntary resettlement, and be familiar with national and local policies and laws concerning resettlement. (2) External monitoring workers should be capable of independently conducting social survey and study, be hard working, and have good communication skills (3) There should be a number of female workers participating in external monitoring.

9.2.2 Responsibilities of external monitoring agency

External monitoring agency will undertake the following activities: ●Prior to resettlement, the external monitoring agency should conduct living standard benchmark survey to obtain the basic information of the life and production of the APs. ●The external monitoring agency should keep track of the resettlement implementation; collect the APs' opinions and grievances and report them to the PMO and local resettlement offices; and submit monitoring reports to the PMO and the World Bank; ●The external monitoring agency should conduct follow-up surveys on changes in the production and living standard of the APs and evaluate the resettlement activities and measures; ●Based on the survey and study and the consultation with the APs, the external monitoring agency should put forward constructive suggestions to the PMO and local resettlement offices, in an effort to ensure that resettlement proceeds successfully and the APs' livelihood and living standard are restored as soon as possible. 53

9.2.3 External monitoring methods and steps

The external monitoring agency will take the following methods to monitor resettlement: (1) Based on the resettlement survey, the external monitoring agency will establish a database of information about the APs and interview the affected households on a regular basis. The external monitoring agency will make full use of the socio-economic survey data and the resettlement information management system created by the PMO to dynamically manage the basic information of the households whose land is acquired or houses are demolished, in order to keep track of the DPs' situation. By using the information of the database and interviewing the affected households, the external monitoring agency will be able to keep track of resettlement, understand the APs' complaints and suggestions, and increase the public's understanding of relevant national policies, the World Bank requirements, and project construction. Households will be interviewed independently by the external monitoring agency after the agency obtains the name list and information of the APs from the grass-roots organizations. The external monitoring agency should designate workers to interview households such that every worker gets familiar with an affected area and builds trust with the APs, which will in turn help resettlement proceed successfully. (2) In the areas where the APs are concentrated, the external monitoring agency will hold formal or informal discussion meetings with the APs. At the meetings, the agency will listen to the APs' opinions on the major issues caused by the project. The workers of the grass-roots resettlement organizations can be invited to attend the meetings. (3) Field observation: The workers of the external monitoring agency will visit the resettlement sites, obtaining the first-hand information of resettlement. (4) Case study: The external monitoring agency will focus on the major problems that may surface throughout resettlement, analyzing the root causes of the problems, figuring out solutions, and providing suggestions. (5) Questionnaire survey: The external monitoring agency will conduct sample surveys on the restoration of the DPs' production and living standard and their opinions on resettlement, analyze the survey results in a timely manner, and solve the existing problems, so as to provide reference for the resettlement work of the next year.

9.2.4 External monitoring focuses

(1) Resettlement monitoring of relocated households The project involves the demolition of both urban and rural houses. Resettlement of the APs will be one of external monitoring focuses. For the APs, the external monitoring agency will focus on the following aspects: ●Whether compensation funds are appropriated in full amount and in time; ●Whether the construction of resettlement housing is determined through consultation;

●Whether the time arrangement for relocation is reasonable; ●Whether transition allowance and relocation subsidies are paid; ●Whether physical compensation is discounted; (2) Monitoring of the disbursement and use of land acquisition compensation Based on the characteristics of the affected land and its use, the external monitoring agency will focus on the following aspects: ●Whether the compensation standards for land acquisition are made in accordance with relevant national laws; ●Whether the allocation of land compensation can ensure that the affected villages are compensated as they are entitled to; ●Whether the quantity of requisitioned land, the compensation standard, and the amount of compensation funds are disclosed to all affected villagers; in which form they are disclosed; ●How to determine the individual recipient of land compensation if it is given directly to individuals; ●Whether there is definite, feasible plan for the collective use of land compensation funds; ●Whether the opinions of interested parties are solicited for making the plan for the use of land compensation funds; how the plan is finally determined; ●How to allocate the gains obtained from the use of land compensation funds; how to guarantee the real economic benefits of the affected labor force; (3) Monitoring of the operation of resettlement organizations Capable, professional, efficient resettlement organizations are a guarantee of successful resettlement for the project. Monitoring the operation of resettlement organizations is also one of the external monitoring focuses by the external monitoring agency. The external monitoring agency will monitor the operation of resettlement organizations by visiting them and inspecting their work data and records. ●Whether the staff composition of resettlement organizations meets the resettlement requirements; ●Whether the working conditions of resettlement organizations meet the requirements; ●Whether the workers of resettlement organizations are qualified for the resettlement work; ●Personnel training of resettlement organizations; ●Management of internal work data of resettlement organizations (4) Monitoring and evaluation of resettlement effects After resettlement begins, the external monitoring agency will continuously monitor the resettlement effects. The external monitoring agency will survey the affected households six months after they are resettled. This follow-up survey, similar to the living standard benchmark survey, will be conducted 55 in the form of questionnaire to reflect the impact of resettlement to the life and production of the respondents, so as to evaluate the resettlement effects. The principle of sample selection for the follow-up survey should be the same as that for the living standard survey. The follow-up survey should be conducted on the respondents of the living standard survey. After the living standard benchmark survey is completed, a database should be built for all samples as the basis of the follow-up survey. With regard to a few respondents that can hardly be tracked due to various factors, the external monitoring agency will use similar affected households in the same community as substitute respondents, based on the database of the earlier socio-economic surveys. The follow-up survey should be properly coordinated with the living standard benchmark survey in order to compare and analyze the changes in life and production of the affected families before and after resettlement. In addition, the opinions of the APs on the resettlement work will be solicited and used as references for the evaluation of resettlement effects.

9.2.5 External monitoring report system

The period within which the external monitoring agency submits a report to the World Bank and PMO is as follows: ●Before July 31 each year, the external monitoring agency will submit a mid-year monitoring report on the resettlement of the first six months of the year to the World Bank and PMO; ●Before January 31 each year, the external monitoring agency will submit an annual monitoring report of the previous year to the World Bank and PMO; Regular monitoring reports should cover the following items: 1) items being monitored; 2) resettlement progress; 3) major findings from monitoring agencies; 4) existing problems; 5) the general evaluation and suggestions of the external monitoring agency

Appendix 1 Resettlement cost budget

No. Items Unit Cihu hi-tech zone Xiushan New District Huashan District Yushan District Compen Compen Compensa Compens sation Amount sation Amount tion Amount ation Amount Total Quantity Quantity Quantity Quantity standard (Yuan) standard (Yuan) standard (Yuan) standard (Yuan) (Yuan) (Yuan) (Yuan) (Yuan) I Basic costs 3244700 26606815 29989514 30287567 90128596

Cost of land 1 173600 13884015 15472014 6822367 36351996 acquisition Compensation for acquired mu 0 0 0 135 55600 7506000 150.1 60500 9081050 69 60500 4174500 16647550

collective land Compensation for standing mu 0 0 0 125.7 1400 175980 138.2 1400 193480 53 1400 74200 443660

crops Tax on occupancy of mu 0 0 0 125.7 30000 3771000 138.2 30000 4146000 53 30000 1590000 9507000

cultivated land Cost of use of newly-added m2 0 0 0 89999 6 539994 100066 6 600396 45995 6 275970 1416360 construction land Cultivated land m2 0 0 0 83799 9 754191 92132 9 829188 35333 9 317997 1901376 reclamation fee Water conservancy Yuan/mu 0 0 0 125.7 500 62850 138.2 500 69100 53 500 26500 158450

fund Cost of land reclamation for Yuan/mu 0 0 0 125.7 4000 502800 138.2 4000 552800 53 4000 212000 770080 increasing farmland Temporary mu 124 1400 173600 408 1400 571200 0 1400 0 108 1400 151200 896000 occupation

Cost of 2 structure Yuan 3071100 12722800 14517500 23465200 53776600

demolition Compensation for price difference arising from the part of Yuan/person 25 103500 7452000 72 103500 7452000 85 103500 8797500 130 103500 13455000 37156500 resettlement house exceeding 30m2 per person (monetary compensation) Price difference arising from the part of resettlement Yuan/person 0 0 0 48 45900 2203200 28 45900 1285200 106 45900 4865400 8353800

house exceeding 30m2 per person (property swap) Compensation for area Yuan 450 350 157500 2600 550 1430000 4510 550 2480500 3920 550 2156000 6224000

difference Compensation Yuan 1200 193 231600 6200 193 1196600 7900 193 1524700 11000 193 2123000 5075900 for decoration Relocation Yuan/household 10 1200 12000 20 1200 24000 19 1200 22800 36 1200 43200 102000 allowance Transition Yuan/person 25 3600 90000 120 3600 432000 113 3600 406800 236 3600 849600 1778400 allowance

II Other costs 103830 851418 959664 3696811 5611723

Agency fees of land acquisition 1 and housing 58405 478923 539811 546904 1624043

demolition (as per 1.8% of basic costs) Monitoring and appraisal 2 expenses (as 12979 106427 119958 121150 360514

per 0.4% of basic costs) Other related costs for building demolition & site clearance and for 3 32447 266068 299895 3028757 3627167 engagement of appraisal and audit organs (as per 1% of basic costs) Administrati ve expenses for III 162235 1330348 1499476 1514378 4506437 resettlement (as per 5% of basic costs) Contingency expenses (as IV 324470 2660682 2998951 3028757 9012860 per 10% of basic costs) Total 3835235 31449263 35447605 38527513 109259616

Note: Xiushan New District is an administrative division of Huashan district but it is considered separately in the arrangement of resettlement work (including resettlement cost).

Appendix 2 Resettlement information booklet

Dear Mr./Ms.: The World Bank Financed Ma'anshan Cihu River Basin Improvement Supplementary Project will be implemented in the area where you live. This booklet is hereby issued in order to let you understand the project in general, the national policies of land acquisition and housing demolition, and the impact of the project to your family. I. Project overview The World Bank Financed Ma'anshan Cihu River Basin Improvement Supplementary Project includes upstream river rehabilitation, midstream river rehabilitation, and downstream river rehabilitation. The project is expected to start in 2017; the construction period is 3 years. II. Laws, regulations and compensation standards in regard to land acquisition and structure demolition Policies on land requisition and structure demolition for this project are developed in accordance with the following laws and regulations: ●Land Administration Law of the People's Republic of China, coming into force in January of 1999; its revised version came into force on August 28, 2004; ●Decision on Deepening the Reform and Strengthening Land Administration, issued by the State Council on October 21, 2004; ●Guidance of the Ministry of Land and Resources on Improving Compensation and Resettlement Systems for Land Acquisition (November 3, 2004); ● Unified Annual Production Value and Compensation Standard for Land Acquisition in Anhui Province, February 28, 2015 ●Notice on Issuing the Supplementary Provisions on Compensation and Resettlement for Land Acquisition of Ma'anshan Municipality, April 1, 2012

●Notice of Ma'anshan Municipal Government on Issuing the Compensation Standards for Standing Crops on and Attachments to the Collective Land Expropriated in Urban Area of Ma'anshan (M.Z.M [2013] No. 21). ●Compensation and Resettlement Measures for Land Acquisition of Ma'anshan Municipality (Decree No. 43 of the Ma'anshan Municipal Government), January 1, 2009

●World Bank Operational Policy OP4.12 on Involuntary Resettlement and appendixes, January 1, 2002; ●World Bank Business Procedure BP4.12 Involuntary Resettlement and its appendixes, January 1, 2002

See the table below for compensation policies for land acquisition and housing demolition for this project

Category Compensation standard

I. Compensation relating

to land acquisition

II. House

III. Land attachments

IV. Infrastructure

III. Impact on your family Compensation Item Quantity Compensation Note standard 1 2 3 4 Total

IV. Scheduled time for project implementation Item Time

Issuing a public notice on land

acquisition and demolition

Disbursing funds

Land acquisition and demolition

Moving into new houses

Project preparation

Project construction

V. Rights and obligations of the affected persons (I) The rights of the affected persons The affected persons will obtain compensations they are entitled to in accordance with the aforesaid compensation standard; they can submit their opinions and suggestions to the PMOs at different levels (i.e. village level, district level, county level, and municipal level). Compensation details include the number of the affected persons to be compensated, compensation standard, time when compensation is disbursed, site 61 selection for resettlement house construction, etc. Each resettlement office must respond within 15 days after receiving the appeals of the affected persons or feedback from subordinate LA and SD Offices. (II) Obligations of the affected persons ● The affected persons should be supportive of project construction. ● The affected persons should not build new structures within the area under investigation when the relocation survey is over, otherwise no compensation will be made. VI. Complaint and grievance procedures If you have any grievance about resettlement, you may file your complaints by following the procedures below: Stage 1 The affected persons can report their grievances orally or in writing to the village or sub-district resettlement offices. In case of an oral appeal, the village or sub-district resettlement offices must keep written records and response to the appeal within 2 weeks. If an appeal involves serious issues, such appeal should be reported to a resettlement office at a higher level; and a response to the appeal must be obtained from the office within 2 weeks. Stage 2 If the AP is dissatisfied with the disposition of Stage 1, he/she may file an appeal to the PMO after receiving such disposition; the PMO should make a decision on the disposition of the appeal within 30 days. Stage 3 If the AP is still dissatisfied with the disposition of Stage 3, he/she may escalate the appeal to a civil court within 15 days after receiving such disposition. VII. LA and HD organizations ●Municipal-level organization PMO Address: Contact number: 8356156 ●Xiangyang Town Address: Contact number: 3100161 or 3108815 ●Resettlement organization of Huashan district

Address: Contact number: 8881331 ●Resettlement organization of Cihu hi-tech zone Address: Contact number: 2966917 ●External monitoring agency: Address: Contact number: VIII. Right to interpret this booklet The PMO has the right to interpret this booklet. Thanks for your support of the project!

PMO XX (Month), 2017