Resettlement Plan

Project Number: 44036 January 2017

PRC: Anhui Chao Lake Environmental Rehabilitation Project

Prepared by Chaohu ADB Loan Project Office

For Chaohu City

This resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. The Newly-added Subproject in Mid-term Adjustment of Water Environment Improvement Project of Anhui Chao Lake Basin Loaned by Asian Development Bank

Resettlement Plan (For Project Scope Change) Project number: Loan 2941

The Water Environment Improvement Engineering of the City Proper of Chaohu City of Water Environment Improvement Project of Anhui Chao Lake Basin Loaned by Asian Development Bank (Mid-term Adjustment)

The working group of the people’s government of Chaohu City of the project loaned by Asian Development Bank January, 2017

1

Contents

CONTENTS ......

1 EXECUTIVE SUMMARY ...... 1

1.1 PROJECT OVERVIEW, LAND REQUISITION AND IMPACTS OF RESETTLEMENT ...... 1

1.2 PRINCIPLES AND RIGHTS OF RESETTLEMENT ...... 4

1.3 PUBLIC PARTICIPATION AND APPEAL ...... 4

1.4 RESETTLEMENT AND LIVELIHOOD RECOVERY ...... 5

1.5 ORGANIZATIONS ...... 5

1.6 COST AND SCHEDULE ...... 6

1.7 MONITORING AND EVALUATION ...... 6

2 PROJECT OVERVIEW ...... 7

2.1 PROJECT CONTEXT ...... 8

2.2 PROJECT DESCRIPTION ...... 9

2.2.1OVERVIEW OF THE RECONSTRUCTION AND IMPROVEMENT PROJECT OF THE SEWAGE PIPE NETWORK IN THE CITY PROPER ...... 9

2.3 OVERVIEW OF THE PROJECT-AFFECTED AREA AND THE RESETTLEMENT IMPACT 14

2.4 THE SOCIOECONOMIC PERFORMANCE OF THE PROJECT...... 14

2.5 PROJECT INVESTMENT AND IMPLEMENTATION PLAN ...... 15

2.6 MEASURES TO REDUCE THE IMPACTS OF LAND ACQUISITION AND IMMIGRATION . 15

2.7 GOALS OF THE RESETTLEMENT PLAN ...... 16

3 SCOPE OF LAND ACQUISITION AND RESETTLEMENT...... 17

3.1 THE COLLECTIVE LAND REQUISITIONED BY THE PROJECT ...... 17

3.1.1 COLLECTIVE LAND REQUISITION...... 17

3.1.2 IMPACT ANALYSIS OF THE COLLECTIVE LAND REQUISITION ...... 17

3.1.3THE LAND USED BY ENTERPRISES REQUISITIONED BY THE PROJECT ...... 19

3.2 THE PROJECT’S TEMPORARY OCCUPATION OF LAND ...... 19

3.3THE HOUSES REQUISITIONED BY THE PROJECT ...... 19

3.4 THINGS IMMOVABLY ATTACHED TO THE LAND ...... 19

3.5DISADVANTAGED GROUPS AFFECTED BY THE PROJECT ...... 20

4 SOCIAL ECONOMIC INFORMATION AND SITUATION ...... 21

1 4.1 SITUATIONS OF THE CITIES AND TOWNS AFFECTED BY THE PROJECT ...... 21

4.2 INVESTIGATION AND ANALYSIS OF THE AFFECTED VILLAGES ...... 24

4.3 SAMPLE INVESTIGATION ...... 25

4.3.1 SAMPLING PROPORTION ...... 25

4.3.2 POPULATION OF THE SAMPLE HOUSEHOLD ...... 25

4.3.3 FAMILY PROPERTY ...... 26

4.3.4INCOME AND EXPENSE OF THE SAMPLE HOUSEHOLD ...... 26

4.3.5 SURVEY OF THE IMMIGRANTS’ WILLS ...... 27

4.4 GENDER ANALYSIS ...... 28

4.5 ETHNIC MINORITIES ...... 28

5LEGAL FRAMEWORK AND POLICIES ...... 28

5.1LAWS, REGULATIONS AND POLICIES THE RESETTLEMENT IS BASED ON ...... 28

5.2ASIAN DEVELOPMENT BANK POLICY BRIEF ...... 30

5.3MAIN DIFFERENCES BETWEEN THE ASIAN DEVELOPMENT BANK POLICIES AND THE CHINESE LAWS ...... 37

5.3.1LAND RESETTLEMENT COMPENSATION ...... 37

5.3.2CONSULTATION AND ANNOUNCEMENT ...... 37

5.3.3LACK OF LEGAL RIGHTS ...... 37

5.3.4RESETTLEMENT MONITORING, EVALUATION AND REPORT ...... 37

5.4COMPENSATION PRINCIPLES OF THIS PROJECT ...... 37

5.5COMPENSATION EXPIRATION DATE ...... 38

5.6DETERMINATION OF THE COMPENSATION STANDARD OF THE PROJECT’S RESETTLEMENT IMPACTS ...... 39

5.6.1COLLECTIVE LAND REQUISITION ...... 39

5.6.2REQUISITION OF THE ENTERPRISE’S OWNERSHIP OF LAND ...... 40

5.6.3COMPENSATION FOR THE ATTACHMENTS AND INFRASTRUCTURE ...... 41

5.6.4OTHER EXPENSE STANDARDS ...... 41

5.6.5VULNERABLE GROUPS ...... 42

5.6.6WOMEN-SUPPORTING MEASURES ...... 42

5.7APPROPRIATION OF COMPENSATION FUNDS AND TIME ARRANGEMENT ...... 43

5.8COMPENSATION ENTITLEMENT ...... 44

6RESETTLEMENT PLAN AND INCOME RESTORATION MEASURES ...... 47

2 6.1OBJECTIVES, METHODS AND PRINCIPLES OF RESETTLEMENT AND RESTORATION ...... 47

6.1.1 OBJECTIVES OF RESETTLEMENT AND RESTORATION ...... 47

6.1.2 METHODS OF RESETTLEMENT AND RESTORATION ...... 47

6.1.3PRINCIPLES OF RESETTLEMENT AND RESTORATION ...... 48

6.2RESETTLEMENT OF PEOPLE AFFECTED BY LAND REQUISITION ...... 48

6.3MEASURES OF RESTORATION OF THE PERMANENT REQUISITIONED LAND OF THE AFFECTED VILLAGES ...... 49

6.4ENDOWMENT INSURANCE MEASURES OF THE LAND-LOST FARMERS ...... 50

6.5AFFECTED PEOPLE TAKING SKILL TRAINING ...... 51

6.6PROTECTION OF WOMEN’S RIGHTS AND INTERESTS ...... 53

6.7ASSISTANCE MEASURES FOR THE VULNERABLE GROUPS ...... 54

6.8INFRASTRUCTURE RECOVERY SCHEME ...... 54

7 INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION ...... 56

7.1PUBLIC PARTICIPATION AND CONSULTATION ACTIVITIES ALREADY CARRIED OUT SO FAR ...... 56

7.2PLAN OF CONSULTATION WITH THE AFFECTED PEOPLE IN THE FUTURE ...... 58

7.3 FEEDBACK OF PUBLIC PARTICIPATION AND CONSULTATION OPINIONS ...... 58

7.4 WAYS OF PARTICIPATIN OF CONSULTATION FOR THE AFFECTED PEOPLE DURING THE IMPLEMENTATION PERIOD ...... 60

7.5 POLICY ANNOUNCEMENT AND THE RESETTLEMENT INFORMATION BROCHURE ...... 61

8 MECHANISM OF APPEALING ...... 62

8.1 WAYS OF COLLECTING DISSATISFACTION AND COMPLAINTS ...... 62

8.2 PROCESS OF COMPLAINING AND APPEALING ...... 62

8.3 PRINCIPLES OF HANDLING COMPLAINTS ...... 63

8.4 CONTENTS AND MODES FOR REPLYING COMPLAINTS ...... 63

8.4.1 CONTENTS FOR REPLYING COMPLAINTS ...... 63

8.4.2 MODES FOR REPLYING COMPLAINTS ...... 63

8.5 RECORD AND TRACKING FEEDBACK OF COMPLAINTS AND APPEALS ...... 64

8.6 CONTACT INFORMATION FOR COMPLAINING AND APPEALING ...... 65

8.7THE ACCOUNTABILITY OF ASIAN DEVELOPMENT BANK ...... 65

9RESETTLEMENT ORGANIZATIONS ...... 67

9.1 ORGANIZATION STRUCTURING ...... 67

3 9.2 RESPONSIBILITIES OF ORGANIZATIONS AT ALL LEVELS ...... 67

9.2.3CHAOHU URBAN CONSTRUCTION INVESTMENT CO., LTD...... 68

9.2.4 LAND AND RESOURCES BUREAU OF CHAOHU CITY ...... 68

9.2.5 PROJECT RESETTLEMENT EXECUTIVE ORGANIZATION(THE HOUSING AND URBAN-RURAL CONSTRUCTION BUREAU OF CHAOHU CITY) ...... 69

9.2.6 YAFU STREET IN CHAOHU CITY ...... 69

9.2.7YICHENG COMMUNITY ON YAFU STREET ...... 70

9.3 PERSONNEL AND EQUIPMENT OF THE RESETTLEMENT ORGANIZATIONS AT ALL LEVELS ...... 70

9.4 MEASURES TO STRENGTHEN INSTITUTIONAL CAPACITY ...... 71

9.5INSTITUTIONS TRAINING PLAN ...... 71

10 BUDGET OF RESETTLEMENT ...... 74

10.1.1 LAND COMPENSATION EXPENSES ...... 74

10.1.2 COMPENSATION EXPENSES FOR SPECIAL RECOVERY RECONSTRUCTION ...... 74

10.1.4 RESETTLEMENT AND OTHER RELATED EXPENSES ...... 74

10.2 BUDGET OF RESETTLEMENT FUND ...... 74

10.3.1 FUND APPROPRIATION OF RESETTLEMENT ...... 76

11 PROJECT IMPLEMENTATION PLAN ...... 78

11.1 IMPLEMENTING PRINCIPLES OF RESETTLEMENT ...... 78 11.2TIME TABLE FOR THE IMPLEMENTATION OF THE RESETTLEMENT PROJECT ...... 78

12 MONITORING AND EVALUATION ...... 86

12.1 Internal monitoring ...... 81

12.1.1 PURPOSES AND OBJECTIVES OF INTERNAL MONITORING ...... 86

12.1.2 INTERNAL MONITORING IMPLEMENTATION PROGRAM ...... 87

12.1.3 INTERNAL MONITORING CONTENTS ...... 88

12.1.4 INTERNAL MONITORING METHODS ...... 90

12.1.5 ORGANIZATION AND PERSONNEL PLACEMENT OF INTERNAL MONITORING 93

12.1.7 PERIOD AND REPORT OF INTERNAL MONITORING...... 93

12.2 External monitoring ...... 94

12.2.1 OBJECTIVES OF EXTERNAL MONITORING ...... 94

12.2.2 EXTERNAL MONITORING ORGANIZATIONS AND MONITORING PERSONNEL ...... 94

4 12.2.3 RESPONSIBILITIES OF THE EXTERNAL MONITORING ORGANIZATION ...... 95

12.2.4 METHODS AND PROCEDURES OF EXTERNAL MONITORING ...... 95

12.2.5 MAIN CONTENTS OF EXTERNAL MONITORING ...... 97

12.2.6 THE REPORTING SYSTEM OF EXTERNAL MONITORING ...... 99 12.3 POST APPRAISAL FOR RESETTLEMENT ...... 100

Contents of the due diligence report of resettlement

1 OVERVIEW ...... 102

1.1 Background ...... 109 1.2 Due diligence of resettlement ...... 109 1.2.1 Purposes of the due diligence ...... 109 1.2.2 Methods for the due diligence ...... 109 1.2.3 Contents of the due diligence ...... 110

2 RESETTLEMENT IMPLEMENTING ORGANIZATIONS...... 111

2.1 Implementing organizations ...... 111 2.2 Capabilities of the implementing organizations ...... 112 2.3 Evaluation ...... 113

3 POLICIES AND COMPENSATION STANDARD FOR LAND REQUISITION AND COMPENSATION ...... 114

3.1 Policy Framework ...... 114 3.2 Main caluses of main policies ...... 115 3.3 Compensation standard ...... 117 3.4 Evaluation ...... 112

4 IMPLEMENTATION OF PROJECT LAND ACQUISITION AND RESETTLEMENT ...... 118

4.1 Land acquisition effect and analysis ...... 118 4.2 Implementation of land acquisition and resettlement ...... 118 4.3 Appropriation of resettlement fund ...... 118 4.3.1 The expenses of the land expropriation compensation ...... 118 4.3.2 Appropriation procedures ...... 119 4.4 Evaluation ...... 125

5 INFORMATION PUBLICATION AND APPEALS AND COMPLAINTS ERROR! BOOKMARK NOT DEFINED.

5.1 Information publication and consultation ...... 127 5.2 Treatment of appeals and complaints ...... 122 5.3 Evaluation ...... 122

6 CONCLUSION ...... 133

5 1 Executive summary

1.1 Project overview, land requisition and impacts of resettlement The preliminary design of “The Water Environment Improvement Engineering of the City Proper of Chaohu City” passed the review and obtained the approval of the Development and Reform Commission of Anhui Province. The contents of the original project engineering are as following: 1) Sewage treatment project, including one newly-built sewage treatment plant of 10000 m3/d (near term), matched construction of sewage pipe network of 26.62km and one sewage pumping station; 2) Yuxi River improvement project, including Yuxi River channel cleanout of 7.49km with the dredged sand volume of 525100m3, and the new ecological slope protection of 284000m3; 3) Tianhe River improvement project, including Tianhe River channel cleanout of 2.82km with the dredged sand volume of 119100 m3, demolition of the original retaining wall Tianhe River of 1.8km, construction of ecological retaining wall of 2.50km, construction of one west dam water diversion culvert, and laying of the wastewater interception pipe of 1.73km. Yuxi River desilting engineering, Yuxi River ecological slope protection engineering, and Tianhe River desilting engineering have been constructed and completed by using other funds from domestic sources The People’s Government of Chaohu City has written to ADB’s office in Anhui Province to report the cancellation of these three construction contents which has gained the approval of ADB and the ADB’s office in Anhui Province. For the Tianhe River improvement project, the sewage interception pipelines were included in the approved preliminary design. The sewage interception pipelines have already been constructed together with the roads considering changes in planning, facilitation of construction and savings in investment after the preliminary design prior to the contract bidding for the project. Therefore, this work is removed from the package. No land or property acquisition was required during the laying of those pipelines.

1 Newly added contents: Because some contract packages of the project of Chaohu City loaned by Asian Development Bank were canceled, combining the surplus funds in the project bidding process, Chaohu City actively submitted the project of comprehensive improvement of the inner city water system of Chaohu City. The project of comprehensive improvement of the inner city water system of Chaohu City includes 3 sub-projects in total: the urban sewage pipe network transformation and improvement project, urban rainwater pollution control system and water environment management platform of Chaohu City. The construction content and scale of each sub-project are as following: (1) Urban sewage pipe network transformation and improvement project newly-built sewage pipeline network of d200—d500 with a length of13.633 km (2) Urban rainwater pollution control system Build 3 new early-stage rain water regulation facilities: Dongba Fourth Station, 11m3/s; Lishui Bay Pumping Station, 2.8m3/s; Yichengwei Pumping Station, 18m3/s. (3)Water environment management platform of Chaohu City Build the new water environment management platform of Chaohu City and purchase a batch of installation-related equipment. The total investment of this project is CNY 227.8025million Yuan. The project plans to use the loan of Asian Development Bank and the government’s financial fund, of which then of Asian Development Bank is about 85.0500million Yuan, converted into about 13.50 million USD(take RMB/USD as 6.3:1), accounting for 37.33％ of the total investment; the government investment is about 142.7525 million Yuan, accounting for 62.67％ of the total investment. According to the survey, the project will cover an area of about 0.75hm2 (11.25mu) in total, of which Yichengwei Pumping Station covers an area of about 5.2455mu. The land requisition will affect 6 households and 21 people in Xiaocun residential group in Yicheng Community in Yafu Street in Chaohu City. The Dongba Fourth Station covers an area of 4.2mu. Therefore, Chaohu Construction Investment Co., Ltd. transferred 103,500 Yuan to the special account for Fiscal rural endowment insurance of Finance Bureau of Chaohu City, and the remaining

2 land compensation fund of about 6.1396 million Yuan has been transferred to the office of urban large construction headquarters of Chaohu City, and on November 6th, 2012, the office of urban large construction headquarters of Chaohu City transferred 6.1396 million Yuan to Cadres service large construction headquarters of Tianhe River Street in Chaohu City (see the attachment: Due diligence of Resettlement). Implement People’s Government of Anhui Province’s Notice on Adjusting Compensation Standards for Land Acquisition in Anhui Province (WZ [2012] No. 67) as the compensation standard. Land compensation fee for the Agricultural land is 11095Yuan/mu, the compensation fee for resettlement is 23775Yuan/mu, and the compensation fee for green crops is 1000Yuan/mu. Tianhe River in Chaohu City has dealt out the land acquisition payment in full amount to the affected households according to relevant provisions. There’s no impact of housing demolition. Lishui Bay Pumping Station covers an area of about 1.8mu. The land right of the planned site of the pumping station now belongs to Anhui Jiatai Chemical Co., Ltd. and there is no influence of housing requisition. The land parcel will be purchased and stored by Chaohu Sub-center of Hefei Land Purchasing and Storage Center with the estimated land price being 160000Yuan/mu and the land requisition cost will be paid by the government. Table 1—1 The resettlement impact of the project

Land Acquisition (mu) Affected Affected Subproject State-owned Remark Collective Land HH People Land Yichengwei Negotiation is 5.2455 6 21 Pumping Station ongoing Acquired in 2012. See Details Dongba Fourth 4.2 in the attached Station Due Diligence Report.

3 Will purchase the state-owned land Lishui Bay currently belonging 1.8 Pumping Station to Jiatai Chemical Co. Ltd. Negotiation is ongoing

1.2 Principles and rights of resettlement This resettlement plan is formulated according to the Land Administration Law of the People's Republic of China (2004), Decisions of the State Council on Deepening Reform and Strict Land Management (GF (2004) No.28), relevant policies in Anhui province, Asian Development Bank policy requirements on Involuntary Resettlement

Based on the above policies,On the basis of consulting the local government and the affected people, the implementing organization adopted a series of resettlement principles and rights tables. According to the relevant provisions of Yicheng Community mu of Yafu Street in Chaohu City, deduct 3400Yuan/mu from the compensation for the requisitioned land and attached things, and the rest fund shall be equally distributed by the village group.

The land requisition compensation includes land compensation, resettlement assistance, crop subsidies, and compensation for ground attachments. The land requisition standard is formulated by the price of the district, and the price of the district is based on the related provisions of Anhui provincial government. 1.3 Public participation and appeal Public consultation is an important content in the preparation stage of the resettlement plan. From November 2015 to December 2015, aiming at the affected people, the project office of Chaohu City, the project design units and other stakeholders conducted a series of consultation activities. The affected people participated in the preparation of the resettlement plan through the measurement and social economic investigation. The future consultation work will be conducted in the process of implementing the resettlement plan. Set up the mechanism for the affected people to appeal and complain to deal with the complaints happen in the land requisition and resettlement affairs, including 3 channels:(1) The project office of the Water Environment Improvement Engineering

4 （medium-adjustment）of Chaohu City ; (2) Project implementation unit, the housing and urban-rural construction organization of Chaohu City; (3) Chaohu Urban Construction Investment Co., Ltd.

1.4 Resettlement and livelihood recovery In order to reduce the impact on the affected people and recover their production and living standards, the resettlement measures have been arranged in detail in the resettlement plan. Based on the social economic investigation, the analysis on the affected people and the experience of resettlement of local similar projects, the measures and income restoration of resettlement have been prepared. These measures include the monetized subsidy, subsistence allowance to the affected people, and the security funds provided by the local security system. People meeting the conditions can receive the security. Carry out skill training for the affected people, and give monetary compensation for the collective land of 5.2455mu requisitioned for Yichengwei Pumping Station. Lishui Bay Pumping Station permanently covers an area of 1.8mu，and fees of 160 thousand Yuan/mu according to the current land appraisal price will be paid to Anhui Jiatai Chemical Co., Ltd. by the government.

The new d300—d1200 with a length of 13.633 km in total of the urban sewage pipe network transformation and improvement project will be basically constructed along the municipal roads with the temporary land occupation for groove excavation of about 45mu, therefore there is no issue of land requisition and demolishing. The expense for pavement recovery has been listed in the project budget already. 1.5 Organization

Chaohu Urban Construction Investment Co., Ltd. will undertake the overall responsibility of land requisition and implementation of the resettlement plan, including planning, implementation, fund arrangement and reports for land requisition and the resettlement plan. In order to guarantee the smooth implementation of the project, the

5 major personnel in charge of land requisition and resettlement will take part in the training on resettlement implementation organized by the office of the working group of the People’s Government of Anhui Province of the project loaned by Asian Development Bank. Prepare the resettlement implementation schedule according to the timetable for preparation work and construction. The resettlement plan will be updated according to the final design and measurement survey, and will be submitted to Asian Development Bank before the signing of the civil engineering contract for examination and approval. 1.6 Cost and schedule The total cost budget of the land requisition and resettlement of the project is 786.7thousand RMB, accounting for 0.345% of the total project investment of 227.8025 million RMB. It is estimated that the land requisition work for Yichengwei Pumping Station begin in September, 2016 and end in October 2016, and it is estimated that the land requisition work of Lishui Bay Pumping Station, the land right of which belongs to Anhui Jiatai Chemical Co., Ltd. will end in December 2016. 1.7 Monitoring and evaluation The resettlement plan includes a detailed internal and external monitoring and evaluation plan. Chaohu Urban Construction Investment Co., Ltd. will provide the internal monitoring report to Asian Development Bank semiannually. Chaohu Urban Construction Investment Co., Ltd. will hire an external resettlement monitoring organization or company as the independent external monitoring organization to release the impartial, independent, and unprejudiced monitoring report. Complete the comprehensive survey before the implementation of land requisition and resettlement; in October, 2016, submit the first monitoring report and submit a monitoring report to Asian Development Bank for examination semiannually until the end of the project.

6 Explanation of key terms

Affected A Person or people affected by the change of land, house, water or other person or natural resources caused by the project. people:

Compensatio The right to be paid or obtain the cash of the affected people in order to n: make up for their loss of properties, resources and incomes.

Entitlement/ All kinds of rights the affected people are entitled to enjoy based on the Rights: characteristics of their losses in order to recover their social-economic base, including: compensation, income restoration, relocation payment, income subsidy and resettlement.

Income The restoration of the income sources and living standards of the affected restoration: people.

Resettlement Rebuild the houses and properties in another place, including the : production land and public facilities.

Impact of Material and immaterial property losses, including housing, communities, resettlement: production land, income-creating property and resources, subsidies, cultural places, social structure, network and ties, cultural characteristics and the mutual aid system.

An action plan with the time table and budget which includes the Resettlement resettlement policies, objectives, rights, actions, responsibilities, plan: monitoring and evaluation.

Disadvantag Refer to the group of special people who can suffer from the bigger ed group: resettlement impact in the resettlement process.

7 2 Project overview

2.1 Project context Chaohu City is located in central Anhui Province, between eastern longitude 117°25ˊ～117°58ˊand northern latitude 31°16ˊ～32°. It is near the Yangtze River, surrounds Chaohu Lake and borders on Feidong County, Quanjiao County, Hanshan County, LuJiang County and Wuwei County. The city’s total area is 2063km2; the total population is 880 thousand. It administers 12 villages and towns and 5 sub-district offices. At present, the phase Ⅰ project of Lishui Bay resettlement area (the area is about 5.6hm2) has been completed and some residents have moved into it. In order to meet the requirements for water drainage of that area, in 2012, the housing and urban-rural construction organization of Chaohu City built the temporary drainage facilities. But these temporary works can only solve the drainage problem of the phase Ⅰ project of Lishui Bay resettlement area. According to the drainage planning, a flood drainage pumping station needs to be built in the low-drainage area of Lishui Bay of the southern district of Chaohu City to solve the problem of storm-water drainage of the whole area of 0.2km2. The Guanwei district now has two flood drainage pumping stations, which are Caoqiao Station and Dongba Fourth Station. Caoqiao Station was built in 1990 with the current scale of only 0.5m3/s. Its equipment has aged and can not meet the requirements of flood drainage; Dongba Fourth Station has the current scale of 3.2m3/s. The flood drainage pumping station fails to meet the flow requirement and the waterlogging phenomena happen occasionally, seriously affecting the work and lives of the residents and workers of enterprise and public institutions in the district. At present, nearby the Dongba Fourth Station (within the scope of 100m) are all farmlands and ditch ponds, meeting the requirement for land use of reorganization and expansion of the pumping station. The total scale of the newly-built pumping station is 11m3/s and the regulation scale is 6m3/s. Most part of Yichengwei District is now the farmland and ditch pond with a small amount of built residential area. The district now depends on a small agricultural drainage pumping station to drain rainwater into Baoshu River, but the current station has small

8 scale (1 m3/s) and low standards, the rainwater can not be drained out in time, and the redundant waterlogging water often floods the farmland and ditch pond at the low-lying places. It is in urgent need to build Yichengwei flood drainage station according to the planned standards for city drainage. The recent scale of the pumping station is 12.6 m3/s, and the total flow is 18.0m3/s. The Road sewage pipe network in the city proper is incomplete, the drainage of storm sewage inside the old neighborhoods is scattered, the sewage is directly discharged to water bodies, the sewage pipe network in partial regions in the city proper is imperfect, and there are conditions that the connection of storm sewage pipelines is wrong, left out or disordered. 2.2 Project description The project construction contents are as following: (1)Urban sewage pipe network transformation and improvement project Newly-built sewage pipeline network of d200—d500 with a length of13.633 km (2)Urban rainwater pollution control system Build three new early-stage rainwater regulation facilities: the Dongba Fourth Station, 11m3/s; Lishui Bay Pumping Station, 2.8m3/s; Yichengwei Pumping Station, 18m3/s. (3)Water environment management platform of Chaohu City Build the new water environment management platform of Chaohu City and purchase a batch of the installation-related equipment. 2.2.1 Overview of the reconstruction and improvement project of the sewage pipe network in the city proper The project of reformation and improvement of the sewage pipe network in the city proper mainly involves the following contents: road network improvement project, point source sewage interception engineering, district sewage interception engineering, and old neighborhood modification engineering. Newly-built sewage pipeline network of d200—d500 with a length of13.633 km,See Table 2-1 for the work amount of improvement of the road sewage pipe network. Work Amount of Improvement of the Road Sewage Pipe Network

9 Table 2—1 Pipeline's Pipe diameter No. Construction content Length (m) location (mm) build new sewage pipes and Dongfeng 1 connect them into the current 461.6 D500 West Road sewage pipe in Yinping Road Build two sewage pipelines in the southern section of Chaohu D300 Chaohu 2 Road and connect them to the 535 South Road sewage pipeline in Guanwei Road Build the new d400 branch Xiangyang sewage in Xingfu Lane pipe and 3 282 D400 Road connect it to the current Xiangyang Road. Build the new sewage pipe to divert the sewage of Caigang 4 Aixin Road Pumping Station to the sewage 484.8 D500 pipe network in Jiankang West Road Build a new d800 pressure piping along Guanwei Road and Guanwei connect the current pressure pipe 923 5 D800 Road in Guanwei Road to the 1200 current main sewage pipe in Guanwei Road. ①Build the new sewage pipe along Chaohu Middle Road and connect it to the current main sewage pipe in Chaohu Middle Chaohu Road. Middle ②Build the new sewage pipe D8400 Road, along Jiankang Middle Road and 1238 6 D400 Jiankang connect it to the planned main 741

Middle sewage pipe in Chaohu Middle Road Road. ③Build the new sewage pipe along Jiankang Middle Road and connect it to the main sewage pipe in Chaohu Middle Road. Build a new sewage pipe in the extended section of Century Century Avenue and connect it to the 7 430.3 D400 Avenue① sewage pipe in Yangnan Road, final discharged sewage treatment plant in Gangling. Century Build a new sewage pipe in 8 358.8 D500 Avenue② Century Avenue (Sun Island

10 Neighborhood section) and connect it to the sewage pipe in Tuanjie Road. Tobacco Build a new sewage pipe in Branch Tobacco Branch Road and Road, connect it to Procuratorate 344 D400 9 Procuratorat Branch Road, finally connected 240 D500 e Branch into the sewage pipe in Century Road Avenue. Rebuild the current financial school pumping station and build a new sewage pump and D400 sewage pipeline, lift the sewage of City Lights and then discharge it into the sewage pipe network in Phoenix Hill Road, Entrance of and discharge it into the sewage the median treatment plant on north of the 10 gutter of city finally. Build the new D400 453.3 D400 Xiaowangzh sewage pipeline at the sidewalk uang on the south side of Bantang Road and connect it to the sewage lifting pumping station. Build the new D400 sewage pipeline of 200m in Hongshiban Road, and connect it to the sewage pipeline in Bantang Road. Build the new D500 sewage interception pipe of 180m along the current sidewalk on the north Bus station 11 side of the current Taihu 141.9 D400 square Mountain Road to the current inspection well of the external duct of Guangming Road. Build the new D600 inverted siphon passing Tianhe River underneath, Build the new D300 sewage pipe in the road along Mudan 780.4 D400 12 Tianhe River in Henan network Road 66.9 D200 and connect it to the sewage pipe network on the north bank of Tianhe River through the planned cross-river sewage pipe. Build the new intercepting well Huayajingc and discharge sewage to the 13 28.6 D400 heng sewage pipe network in Century Avenue.

11 Macao New Build the new sewage pipe 480 D400 Town, network. 1607.2 D300 14 Huguang, 2820 D200 Anqiao New Town Garden New Build the new sewage pipe 159 D400 15 Town network. 536 D300 1260 D200 Xisheng Build the new sewage pipe 115 D500 16 New Town network. Weixi Build the new sewage pipe 445.1 D400 17 network. 630 D200 Dormitory Build the new sewage pipe 272.5 D300 of the network. 330 D200 18 marine bureau Dongfang Culverts 370 4000×1600 19 Scenery The 10525 4000×1600 reconstruct ion of the sewage 20 pipe network of old neighborho ods The Chaohu Gangling Wastewater Treatment Plant is located at Baoshuqiao by Gangling Road and to the east of the Yuxi River, southeast of Chaohu’s city proper. Phase I of the wastewater treatment plant serves the area on the east of the Yuxi River, south of Juzhangshan, east of Huguang Road, and north of the shore of the Chaohu Lake. According to the master plan of Chaohu City, the final capacity of the Chaohu Gangling Wastewater Treatment Plant is 120,000 m3/d, to be built in two phases. For Phase 1 (60, 000 m3/d), the first stage of treatment was put into operation in 2001, and the second stage with biochemical treatment was built in 2002 and put into operation in 2003. The discharge water of the plant was compliant with class 1B specified in the Discharge standard of pollutants for municipal wastewater treatment plant (GB18918-2002) with the improved Carrousel oxidation ditch process and is discharged into the Yuxi River.

To respond to the call of the State Council for improvement of the “3 Rivers and 3 Lakes”, relevant authorities of Chaohu City initiated the a project for standard improvement and renovation of the Chaohu Gangling Wastewater Treatment Plant.

12 Currently, the project has been completed and put into operation. The discharge water of the plant is now compliant with class 1A specified in the Discharge standard of pollutants for municipal wastewater treatment plant and is discharged into the Yuxi River after proper treatment. The current capacity of the Chaohu Gangling Wastewater Treatment Plant is 90,000 m3/d.

2.2.2 Urban rainwater pollution control system Build three new early-stage rainwater regulation facilities: Dongba Fourth Station, 11m3/s; Lishui Bay Pumping Station, 2.8m3/s; Yichengwei Pumping Station, 18m3/s. See table 2-2, 2-3 and 2-4 for the main construction contents of the 3 waterlogging pumping stations. Main construction contents of the new projects of Dongba Fourth Station Table 2—2 Project Name of the single Project content Remarks category project 3 sets of submersible axial-flow pumps, flow: Q=2.5m3/s Maximum lift:10m, motor power: The construction area is 449m2, the 280kW; Pumping station main structure is the reinforced 1 set of submersible axial-flow pump, flow: Q=1.0m3/s concrete structure Maximum lift:10m, motor power:160kW Main Plan view size of Rainwater storage works B×L=25.64m×32.00m, volume of Inside the pump room. tank 4092m3, buried design, 7.60m deep Reform and broaden the rainwater Build the new Bazhong Lane～Yuxi Road rainwater pipeline with the intake canal of the pumping station Intake pipe duct length of about 300m and the pipe (Yuxi Road ～ pumping station diameter of d2000mm. section) of the length of 185m.

Main construction contents of Lishui Bay Pumping Station Project Table 2—3 Project Name of the Project content Remarks category single project 2 sets of submersible axial-flow pumps, flow: Q=1.1m3/s Maximum lift: 6m, motor power: Located in the west part inside the 75kW; project station, the construction area Main works pumping station 1 set of submersible axial-flow is 230m2, and the major structure is pump, flow: Q=0.6m3/s the frame structure. Maximum lift: 6m, motor power: 55kW

13 Plan view size of Rainwater storage B×L=8.60m×20.00m, volume of Inside the pump room. tank 720m3, buried design, 6.60m deep.

Main construction contents of Yichengwei Pumping Station Project Table B2—4 Project Name of the single Project content Remarks category project 3 sets of submersible axial-flow pumps, flow: Q=3.6m3/s The construction area is Maximum lift:10m, motor power: 280kW; Pumping station 233m2, and the major structure 1 set of submersible axial-flow pump, is the frame structure. flow: Q=1.8m3/s Main Maximum lift:10m, motor power:160kW works Intake canal About 2200m long (Connect the primary entrance to Site-entering Yafu Road and the secondary entrance to

road the levee of Baoshu River); the length is about 85m.

2.3 Overview of the project-affected area and the resettlement impact See Table 2-8 for the main resettlement impact of the project. The main resettlement impact of the project Table 2—8 Impacted area or Impact category Unit Quantity Remarks people Affected area Chaohu City Village, Yafu town/street Administrative Yicheng Community village Residential group Xiaocun Total mu 5.2455 Collective land Of which: cultivated requisition mu 5.2455 land The government contributes Purchase and store the fund, about 160 thousand/mu. After the the land of Jiatai mu 1.80 purchasing and storage are Chemical successful, conduct transfer of the state-owned land. Directly-affected People affected by land Household 6 people requisition People affected by land People 21 requisition 2.4 The socioeconomic performance of the project

The project of urban water environment comprehensive treatment is a public utility

14 project that protects the environment, build the civilized healthy city and benefit for future generations. Its benefits are mainly manifested as the social benefit. After this project is implemented, the problem of water pollution in Chaohu City can be solved effectively. It serves the city and society, improves the city appearance and health level and protects the beautiful natural inland river scenery. Meanwhile, the construction of the project can improve the investment environment of the urban area and the development of the industrial enterprises will not be affected by water pollution, thus more foreign investments will be attracted and the city economic development will be promoted. Therefore, this project is the crucial infrastructure for building Chaohu City into a civilized and healthy city with beautiful scenery, prosperous economy, stable society and convenient life. 2.5 Project investment and implementation plan The estimated investment of this project is 227.8025 million Yuan RMB, of which the planned loan from ADB is 85.05 million Yuan, equivalent to about 13.5 million USD. The rest fund will be supported by the governmental fiscal funds. 2.6 Measures that reduce the impacts of land requisition and resettlement Chaohu Urban Construction Investment Co., Ltd. and the compiling unit of feasibility research conduct careful site selection work according to the principles of site-selection of the construction project and ADB’s policy requirements on involuntary resettlement.. Try to reduce the quantity of requisitioned land for the pumping stations. Meanwhile, all kinds of compensation measures are formulated for the people inevitably affected by the land requisition to reduce the negative impact of the project to the minimum. The pipelines are all constructed along the already-built roads and in the construction process; the reasonable construction scheme is adopted to reduce the impact on citizens' activities, such as the stay-tube and pipe-jacking construction methods. Arrange the construction period reasonably to reduce the impact of construction on the surrounding crowd. The part of pipeline construction does not involve the housing demolition or land requisition. The temporary land occupation is about 45mu, and the pavement recovery fees are listed in the investment budget estimate.

15 2.7 Goals of the Resettlement Plan The compensation and resettlement policies for the affected people are formed based on China’s laws and regulations and the ADB’s Safeguard Policy Statement (2009) and SR-2 which stipulates requirements on Involuntary Resettlement.. The main objective of the resettlement plan is to recover the incomes and living standards of the affected people, give them adequate compensations and support to make their production and living standards no lower than before. The needs of the poorest people and vulnerable groups (there is no disadvantaged group in the affected people in this land requisition) in this land requisition and resettlement shall be paid special attention to. The primary goal of the resettlement plan is to relieve the adverse consequences brought by the project implementation and provide help to the affected people in their resettlement, incomes and livelihood restoration. Compensate the losses of the affected people reasonably through compiling the resettlement plan, mainly by the following several means:(1) In order to realize the goals of resettlement plan, in November, 2015 and February, 2016, Chaohu Urban Construction Investment Co., Ltd. organized an survey on the impacts of land requisition for Yichengwei Pumping Station. Compile the resettlement plan based on the survey.and (2) On March 1st, 2016, Chaohu Urban Construction Investment Co., Ltd. organized the public survey meeting about the project resettlement. The participants were mainly the affected villagers. At the meeting, the public participation questionnaire is distributed, and the project contents were introduced by the designing unit. The compiling unit of the resettlement plan emphatically introduced the impacts of the project and the treatment measures adopted. No affected villager had any adverse opinion on the project construction or resettlement.

16 3 Scope of land acquisition and resettlement

3.1 The collective land requisition of the project 3.1.1 Collective land requisition The collective land requisitioned by the project is 5.2455mu, which is completely the cultivated land. The land requisition affects 6 households, and 21 people. See Table 3-1 for the situations of the collective land permanently requisitioned. Amount of permanently requisitioned collective land Table 3-1 Number Admi Land Of of nistrat Unused Affected Natural requisiti which: Unused affected Town ive water(m population village oned(mu dry land(mu) househol villag u) (people) ) land(mu) ds(house e hold) Yiche Yafu ng Street in Com Xiaocun 5.2455 5.2455 / / 6 21 Chaohu munit City y

3.1.2 Impact analysis of the collective land requisition The rural collective land requisitioned for this project affects the residential group on Yafu Street, Xiaocun Village, Yicheng Community in Chaohu City, the cultivated land of the households affected by land requisition was 15.12mu before the land requisition, and the cultivated land requisitioned is 5.2455mu. The households in Xiaocun residential group affected by the land requisition proportion of the project reaches 34.6%. See situations of the project-affected rural collective land in Table 3-2. Situations of the project-affected rural collective land Table 3-2 Num Requisition Proportio Total Present ber of Fema Labor ed n of populat Male cultivated Villag Grou house le force cultivated requisitio ion land e p holds land n Hous Peopl Peopl People People Mu Mu % ehold e e Yichen Xiaoc 6 21 11 10 15 15.12 5.2455 34.6 g un

6 households and 21 people of collective lands are affected by this project. The 6 affected households lose 34.6% of the land on average. Among which the affected proportion of 66.7% of the affected households (4 households) is 10% to 30%, and the affected proportion of 33.3% of the affected households (2 households) is 30% to

17 50%. There is no farmer who loses all his/her land. See Table 3-3 for the different proportions of land requisition.

Different proportions of land requisition by household Table 3-3 Unit: household Villa <10% 10%—30 30%—50 50%—70 70%—90 90%—100 Subtotal Group ge % % % % % Xiaocu 0 4 2 0 0 0 6 Yich n eng Proport 0 66.7 33.3 0 0 0 100% ion

For the affected households with the average cultivated land of 0.72mu, among the 8 households in Xiaocun residential group, the proportion of lost land of 4 households is between 10% -30% and of the rest 2 households is between 30%-50%. For the individuals, the per capita cultivated land reduces from 0.72mu (before land requisition) to 0.47mu; See table 3-4. The per capita cultivated land in Jinxiaozhuang village group of Xinglong Village reduces from 0.58mu (before land requisition) to 0.465mu. The per capita income of the village affected by the land requisition is about 12000 Yuan. The field investigation finds that the project area is located on the outskirts of Chaohu City. With the accelerating pace of urbanization and the continuous incoming of the real estate business, the lands of each village are continuous requisitioned, and villagers have been accustomed to land requisition. The framers mainly engage in construction, transport and service business or migrate out for work. The proportion of agricultural income is only 10%, and the proportion of income losses is only 3.49%. It shows that the agricultural income is no longer the main income of the affected people. According to field investigation, most of the cultivated lands of the farmers at the project site are leased to the big grain production households who pay the rent regularly, and most of the farmers choose to become out-migrants for work. See Table 3-5 for the impact analysis of land requisition.

Cultivated land ownership per capita before and after land requisition

Table 3-4 Village Group Affected Before Requisiti After Before After

18 population land oned land land land requisition requisiti requisitio requisiti on n on Mu/peopl Mu/peo People Mu Mu Mu e ple Yicheng Xiaocun 21 15.12 5.2455 9.875 0.72 0.47

Impact analysis of land requisition

Table 3-5 Propor Annua Agricu Cultivate tion of Affecte Affecte Cultivat Requisit l ltural d land Proporti agricul d d ed land ion Village Group incom before on of income tural househo populat requisiti proporti e per requisiti income per incom lds ion oned on capita on loss capita e Yichen Xiaoc 12000 1200 10% 6 21 15.12 5.2455 34.9% 3.49% g un

3.1.3The land used by enterprises requisitioned by the project The land of 1.8mu owned by Anhui Jiatai Chemical Co., Ltd. is planned to be requisitioned for the construction of Lishui Bay Pumping Station. According to the relevant provisions of Environmental Protection Agency of Chaohu City, Anhui Jiatai Chemical Co., Ltd. will be moved integrally. After the field consultation in Chaohu Sub-center of Hefei Land Purchasing and Storage Center, the land parcel is under land appraisal at present and the land appraisal price is about 160 thousand Yuan/mu. It is estimated that by the end of 2016, that land parcel will be purchased and stored by Chaohu Sub-center of Hefei Land Purchasing and Storage Center and the government will contribute the land requisition fees for the use of the construction of the urban infrastructure——Lishui Bay waterlogging pumping station. 3.2 The project’s temporary occupation of land This project's temporary occupation of lands is 45 mu, which is completely for the pipe network construction. These occupied lands are all lands for roads, and there is no problem of demolition or land requisition. The expenses for the restoration of the road surface are listed in the budget. The contractor is responsible for restoration of temporally occupied land.

3.3The houses requisitioned by the project The land-use right of the planned site for this project of Lishui Bay Pumping Station belongs to Anhui Jiatai Chemical Co., Ltd., and there is no demolition of enterprise housing. 3.4 Ground attachments According to the results of the site survey, the ancillary facilities on the land

19 requisitioned for the Water Environment Improvement Engineering of the City Proper of Chaohu City (medium adjustment) are mainly the telegraph poles, canals, roads for transporting, and so on; SeeTable 3-6 for the situations of categories and quantitative distribution.

Ground attachments Table 3-6 Name Unit Quantity Remarks 380V telegraph pole Per pole 4 Roads for transporting m2 200

3.5 Vulnerable groups affected by the project According to the purpose of this project, vulnerable groups include the disabled, households enjoying the five guarantees(the aged, the infirm, old widows and orphans who are taken care of by the people's communes in five ways: food, clothing, medical care, housing and burial expenses), female headed households, low-income groups(per capital net income less than 2000 yuan/year) and the minority. According to the survey, the affected people are all Han and there are no minority and vulnerable groups. In the implementation process of this project, the construction unit should keep tracking and monitoring. If vulnerable groups are discovered, the following safeguards should be in place: 1) Offer vocational training to workforce from the disadvantaged groups' family and provide employment information and guidance to increase their chances of employment. 2) In the process of project construction, workforce from the disadvantaged groups' family should be given priority to do nontechnical job. 3) Coperate with Chaolake social labor and social security departments to set up special fund which is 1% of the immigration expenses. 4) After the construction of the project, needy households can make application to get loan from local credit union under the help of local village's collective guarantee. Elderly person of no family and orphans who have no relatives to take refuge can make application of their own will. If they comply with the adoption qualification, local civil affairs department will arrange them to welfare house(nursing home).

20 4 Social economic information and situation

4.1 Situations of the cities and towns affected by the project Chaohu City is located in central Anhui Province, between eastern longitude 117°25ˊ～117°58ˊand northern latitude 31°16ˊ～32°. It is near the Yangtze River, surrounds Chaohu Lake and borders on Feidong County, Quanjiao County, Hanshan County, LuJiang County and Wuwei County. The city’s total area is 2063km2, and the total population is 880 thousand. It administers 12 villages and towns and 5 sub-district offices. Chaohu City has a long history and it is propitious for giving birth to many outstanding people. The city is historically called “Juchao” or “Nanchao”, and the literary quotation “Chengtang Sends Jie to Nanchao” originated here. The written history can trace back more than 3000 years. In Tang Dynasty, Chao County was first set up; in 1984, the county-level Chaohu City was set up, subordinate to Chaohu area; in 1999, Juchao District was set up where the prefecture-level municipal Party committee and municipal government of Chaohu City were located; in 2011, Anhui Province had the administrative division adjustment, and the county-level Chaohu City was reset up, subordinate to the provincial capital of Hefei. Chaohu has given birth to many talents and heroes: in the ancient times, there was the great tactician Fan Zeng who devised strategies within a command tent during the Competition between Chu and Han and won the good name “Yafu” (meaning second only to one’s father, a honorific title); in modern times, there were the “Three Generals”: Feng Yuxiang, Zhang Zhizhong, and Li Kenong, who were renowned across the land of China. Lishui Bay Pumping Station is located at the southwest corner of the intersection of Pingfeng River and the planning road (Binghu South Road) in Chaohu City. See the following picture for the current situation of the project area:

21

Yichengwei Pumping Station is located at the northeast corner of the intersection of Baoshu River and the planning Yafu Road. The planned lay direction of the pumping station is parallel to Yafu Road, and the included angle between the effluent box culvert and Baoshu River is 60°. See the following pictures for the current situations of the project area:

Current situation 1 of Yichengwei district Current situation 2 of Yichengwei district

22

The full-year gross regional domestic product in 2014 was 23.3 billion Yuan, realizing the growth speed of 10.5%; the fiscal revenue increased simultaneously, accomplishing the fiscal revenue of 2.752 billion Yuan with the year-on-year growth of 1.56%; the growth speed of the fixed-asset investment is faster, accomplishing the total investment in fixed assets of 19.59 billion Yuan with the year-on-year growth of 23.5%; the foreign trade import-export volume is 210 million USD with the year-on-year growth of 15.4%; the industrial economy grows steadily. The annual gross value of industrial output achieved was 33.6 billion Yuan with the growth rate of 4.4%; the industrial investment was 8.01 billion Yuan with the growth rate of 10.04%. the industrial growth was steady and the industrial added value above the designated size was 8.436 billion Yuan with the year-on-year growth of 5.2%; the production value of the five leading industries achieved was 29 billion Yuan, accounting for 86% of that of the whole city; in the full year of 2014, the proportion of the first, second and tertiary industry was 10:56:34, improved significantly comparing to that proportion in 2013, and the industrial structure was more optimized. The disposable income of rural inhabitants (rural per capita net income) was 10590Yuan, increasing 13%. The total retail sales of consumer goods were 6.5 billion Yuan with the year-on-year growth of 8%; In 2014, 85 large construction projects were implemented in the whole city (not including the 20 phase-Ⅰ and phase-Ⅱ projects of China Development Bank construction of Chaohu Lake Rim Ecological Demonstration Zone) with the total investment of 6.1 billion Yuan, 62 projects completed, 23 projects under construction and the investment of about1.9 billion Yuan completed. 20 urban road projects were implemented with the total length of about 46.36km and the investment of 250 million Yuan. The reconstruction of the city entry-exit roads has been completed with the total length reaching 35.75km; 17 settlement building projects were continued with the overall floorage of 2.125million ㎡,16127 sets of apartments and investment of 1.3 billion Yuan completed; 2 affordable housing projects were completed with the overall floorage of about 487.8 thousand ㎡, 4346 sets of apartments, and total project investment of 850 million Yuan; 4 improvement projects in Xiaojie Lane were completed, with the investment of 3.75 million Yuan completed; 5 water environmental projects were completed with the investment of

23 122 million Yuan completed; 2 mine restoration projects were completed with the investment of 49.94 million Yuan completed; 6 public facilities were completed, 5 are under construction with the investment of 37 million Yuan completed; 23 forestation projects were implemented, with the forestation investment of 54.51 million Yuan completed. This project involves Yafu Street in Chaohu City. See Table 4-1 for the socioeconomic status of the project-affected area.

The socioeconomic status of the project-affected area

Table 4-1 Per capita Urban Fiscal Area of land Population GDP income of residents’ revenue farmers income Area 100 10 thousand 100 million Km2 million Yuan Yuan people Yuan Yuan Chaohu City 2063 88 233 27.52 10590 21046 Yafu Street 28.5 5.2 11.5 1.21 12000 18950

4.2 Investigation and analysis of the affected villages Xiaocun residential group of Yicheng Community on Yafu Street in Chaohu City has no ethnic minority. The per capita income is around 12000Yuan, with the agricultural income only accounts for about 10%. Among the households affected by this project, there is no household enjoying the minimum living guarantee or other vulnerable groups. Most of the villagers support the project construction. In the rapid development process of urbanization, the contracted lands of the affected households are continuously requisitioned. Villagers grow vegetables and crops on the remaining land for their own consumption. After the land requisition, part of the affected people will make up their losses with other incomes by working in the near construction market or even other provinces. Because the project is located close to the city proper of Chaohu City, where the lands of the villagers are requisitioned continuously in the process of urbanization, the affected people are accustomed to land requisition. Because of the lands are collectively owned, Deduct 3400 Yuan/mu from the compensation for land requisition to pay the endowment insurance for the land-lost farmers. Distribute the other compensation fund equally according to the population of the village group.See Table 4-2 for the

24 socioeconomic status of the affected natural villages in Yafu Street, Yicheng Community. Socioeconomic status survey of the affected villages Table 4-2 Numbe Average r of popul Labor Agricul populatio Per capita Of Rural net Chaoh househ ation( force( tural n of a agricultural income per which: u City olds(ho perso perso area(m househol area(mu/pe capita (Yuan/ male usehold n) n) u) d(person rson) person)Yuan ) ) Yichen g 698 2325 1186 1501 1627.5 3.33 0.70 12000 Comm unity

4.3 Sample investigation 4.3.1 Sampling proportion The village affected by the sample investigation of this project is Xiaocun residential group of Yicheng Community muon Yafu Street in Chaohu City. 6 households will be affected in total and all these 6 households are sampled. The sampling proportion is 100%. 4.3.2 Population of the sample household In the 6 sample households, there are 21 people in total and 10 labor force population. Among the labor force population, there are 2 agricultural labor force population, accounting for 20.0%; 8 out-migrants for work, accounting for 80.0%. See Table 4-3 for the situations of the sample household population. Among the affected people, there is 1 preschooler, accounting for 4.76%. People of the age between 6-17 account for 14.3%,18-35 account for 38.1%, 36-60 account for 33.33%, and above 60 account for 9.52%. See table 4-4 for the age composition of the affected people. Among the affected people, the illiterate account for 0%, people with the primary school education account for 28.57%, people with the middle school education account for 61.91%, and people with college education account for 9.52%. See Table 4-5 for the cultural composition of the sample household population.

Situations of the people of the sample households Table 4-3 Agricult Sample Total Prop Out-mig Labor ural Propor Villag househo populati Male Female ortio ration force labor tion Group ld on n work e force Househ People Peopl People People People % People %

25 olds e Yichen Xiaocu 6 21 11 10 10 2 20.0 8 80.0 g n

Age composition of the people of the sample households Table 4-4 Preschooler 6—17 18—35 36—60 Above 60 Subtotal Village Group s People People People People People People Yicheng Xiaocun 1 3 8 7 2 21

Education levels of the people of the sample households Table 4-5 Illiterate Primary school Middle College subtotal education school education Village Group education People people people people people Yicheng Xiaocun 0 6 13 2 7 4.3.3 Family property Among the 21 people of 6 households investigated, each household owns 1.67 set of color TV, 1.0 set of refrigerator, 1.83 electric fans, 1 set of washing machine, 1.5 set of air conditioner, 1.33 units of fixed telephones and mobile phones, 1 set of motorcycle, and 0.67 set of tractor o average. In the aspect of family-owned property, the living standards of the affected households are basically better than the average level of the villagers of the same class. (The figures above are results of the total figures divided by 6.) 4.3.4 Income and expense of the sample household The average annual per capita income of the sample households of this survey is 11637Yuan/person. Table 4-6 shows the income structure of the sample households, in which the agricultural income only accounts for about 11.05% （Crop farming）of the total income, and the rest incomes mainly come from the employment in enterprises and the tertiary industry. Besides, the sample households also have the sporadic incomes from sideline production and business and so on, such as the income of the butcher; these correspond to the local industrial structure that the agriculture and manufacture are equally important. Most of the women are employed in the nearest enterprises for the convenience of taking care of their families, and the male labor forces generally work in factories or become affected person laborers. See Table 4-7 for the nonproductive expenditures of the sample households. Income structure composition of the sample households Table 4-6 Unit: Yuan. households /year Item Lowest Highest Average Proportion

26 Crop farming 2200 7000 4500 11.05% Fishery 0 0 0.00 0.00% Poultry/livestock 1500 8000 3000 7.37% breeding Manufacture 0 0 0.00 0.00% Construction industry 0 0 0.00 0.00% Commercial and 4500 18800 9000 22.10% service sectors Transportation industry 0 0 0.00 0.00% Income from 12000 45000 23430 57.52% employment Other incomes 0 2500 800 1.96% Total income 20200 81300 40730 100%

Nonproductive expenditure and deposit Table 4-7 Unit: Yuan/year Item Lowest Highest Average Proportion Food 8000 12000 10000 29.54% Cloth 1200 6500 3100 9.16% Education 1000 9000 2210 6.53% Health care 1200 3500 1600 4.73% Transportation fee 600 2950 1300 3.84% Social spending 1200 6000 2800 8.27% Care for the Elderly 500 2000 800 2.36% Recreation 0 0 0.00 0.00% Fuel 300 800 500 1.48% Water and electricity 720 1500 900 2.66% Telephone bill 480 1200 640 1.89% Others 0 0 0.00 0.00% Savings 3000 20000 10000 29.54% Total 18200 65450 33850 100%

We can see from Table 4-6 that the average annual total family expenditure per household is about 33850Yuan/household; among all the expenditure patterns, foods account for 29.54%%, clothing 9.16%, education and culture 6.53%, and deposit accounts for 29.54%. 4.3.5 Survey of the affected households’ views The investigation team also investigated the affected households' views at the same time of social economic investigation, the results are as follows: 100% of the public hold the favorable view for the construction of the project, and no public voice opposition; 100% of the investigated households think that the construction of this project has no adverse effect; 50% of the investigated households think that the project construction will affect transportation; 100% of the investigated

27 households think that the project construction will improve the environment; and 50% of the investigated households think that the land requisition will affect their economic income. 100% of the investigated households require cash compensation for the loss of requisitioned land, that is the commonly called monetary settlement, and there will be no land adjustment within the village group. 4.4 Gender analysis Among the females, 20% are of the age from 6-17, 50.0% are of the age between 18-35, 20.0% are of the age between 36-60, and 10% are of the age above 60. The age composition of the females of the sample households is shown in Table 4-8. Among the affected females, 70% have the primary school education, 30% have the middle school education, and 0% has the college education. See Table 4-9 for the cultural composition of the women of the sample households. Age composition of the affected women Table 4-8 Preschooler 6—17 18—35 36—60 Above 60 Subtotal Village Group s Years Old People People People People People People Yichen / 2 5 2 1 10 Xiaocun g

Cultural composition of the women population of the sample household Table 4-9 Illiterate Primary Middle school College Subtotal school education school Village Group education education People People People People People Yiche / 7 3 0 10 Xiaocun ng

4.5 Ethnic minorities In the social economic survey of this resettlement, no family of ethnic minorities is found affected. Therefore, the problem of affecting the minority population does not exist in this project.

5 Legal framework and policies

5.1 Laws, regulations and policies for involuntary resettlement 1. Asian Development Bank policies Safeguard Policy Statement, June, 2009 (SR-2 for involuntary

28 resettlement) 2. Chinese laws, regulations and policies (1)The land administration law of the People's Republic of China(implemented on January 1st, 1999, revised for the first time according to the Decision of the State Council on Abolishing and Modifying Part of the Administrative Rules and Regulations on January 8, 2011; revised for the second time according to the Decision of the State Council on Modifying Part of the Administrative Rules and Regulations of the 54th executive meeting of the state council on July 9th, 2014) revised on August 28th, 2004); (2)The Enforcement Regulations of the Land Administration Law of the People's Republic of China (implemented on January 1st, 1999, revised for the first time according to the Decision of the State Council on Abolishing and Modifying Part of the Administrative Rules and Regulations on January 8, 2011;revised for the second time according to the Decision of the State Council on Modifying Part of the Administrative Rules and Regulations of the 54th executive meeting of the state council on July 9th, 2014) revised on August 28th, 2004); (3) Measures for the Announcement of Land Requisition (Ministry of Land and Resources Order No. 10) (January 1st, 2002); (4) Decisions of the State Council on Deepening Reform and Strict Land Management (GF (2004) No.28) (October, 21, 2004); (5) Instructions on Improving the System of Compensation and Resettlement of Land Requisition (GTZF (2004) No.238) (November 3, 2004); (6) Management Methods for the Preliminary Review of the Land Use for Construction Projects (Ministry of Land and Resources Order No. 27) (November 1, 2004); (7) General Office of the State Council’s Notice of Forwarding The Ministry of Labor and Social Security’s Instructions on the Employment Training and Social Security Work for the Land-Requisitioned Farmers (GFB(2006) No.29)(April 10, 2006); (8) The State Council’s Notice on Strengthening Land Regulation and Control (GF (2006) No.31) (August 31, 2006); (9) Notice on Accelerating the Promotion of the Agreement Judging System in the Compensation and Resettlement for Land Requisition (GTZF (2006) No.133) (June21,

29 2006). 3. Policies of Anhui Province (1)The Enforcement Regulations for the Collection, Use And Management of the cultivated land Reclamation Fees in Anhui Province (CZ (2001) No.1061); (2) Anhui Province implements the method of the Land Administration Law of the People's Republic of China (amendment) (July 1st, 2004); (3) Instructions of the People's Government of Anhui Province on the Employment and Social Security Work of the Land-Requisitioned Farmers (WZ (2005) No.63); (4) Measures for Judging Disputes on Compensation for Land Acquisition in Anhui Province (WZB (2004) No.101) (January 1st, 2005); (5) Notice of the People's Government of Anhui Province on Adjusting the Compensation Standard for Land Requisition in Anhui Province (WZ (2004) No.24 (March 10th, 2015) ; (6)General Office of the People’s Government of Anhui Province’s Notice of Forwarding the General Office of the State Council’s Notice of Forwarding The Ministry of Labor and Social Security’s Instructions on the Employment Training and Social Security Work for the Land-Requisitioned Farmers (WZB(2006) No.38)(May 30th, 2006); (7)《Notice of the General Office of the People's Government of Anhui Province on Printing and Distributing the Management Method of the Reserve Fund of Land Expropriation Compensation in Anhui Province》(WZB(2010) No.22)(May 4, 2010); (8) Notice on the Implementation of the Compensation Standard of the Newly-Requisitioned Land (WGTZ (2012) No.166); (9) Measures for the Implementation of cultivated land Occupation Tax in Anhui Province (2008); (10) Interim Procedures for the Basic Old-Age Security of the Land-Requisitioned Farmers in Chaohu City (CZ〔2005〕No.27); (11) The People’s Government of Hefei City: on printing and distributing the Notice of the Compensation Standard for the Attachments on the Requisitioned Collective Land Such as the green Crops and Houses in Chaohu City (HZM [2015] No.126); 5.2Asian Development Bank policy principals

30 The two important fundamental elements of ADB’s involuntary resettlement policy requirements are (i) compensations replacing the lost properties, livelihood and income; and (ii) the assistance helping to restore the living standard no lower than the standard before the implementation of the project. Part or all of these elements will be triggered in the project involving involuntary resettlement. For any ADB project that requires involuntary resettlement, the resettlement plan is part of the project design, which shall be handled from the initial stage of the project period, and meanwhile the following basic principles shall be considered: (i) Start systemizing the impacts of the project as early as possible, and identify the historic, curre4t and future impacts and risks of the involuntary resettlement. Determine the scope of the resettlement plan through investigation or the census of the project-affected population, including gender analysis, especially the analysis relating to the resettlement impacts and risks. (ii) Set up the mechanism of appealing, understand the issues concerned by the affected people and study the solutions. (iii) Improve or at least recover the living standards of all the affected persons through the following measures:(1) if the resettlement population depend on the land for livelihood, adopt the land-based resettlement policy as far as possible; if losing the land does not affect the livelihood of the affected people, then cash or other forms of compensation according to the value of the land can be considered;(2) Compensate the property beyond recovery in time in full specified amount according to the price of re-acquisition;(3) If possible, provide extra incomes and services in the way of sharing the project revenue. (iv) Provide necessary support for the affected people, and provide the service infrastructure and community services according to the demands. (v) If the land is obtained in the way of negotiated settlement, relative procedure shall be formulated based on the principles of transparency, consistency and fairness to guarantee that the affected people participating in the consultation can maintain or improve their incomes and living standards. (vi) Formulate the detailed resettlement plan elaborating the rights and interests of the affected people, the policies to restore their incomes and living standards, related institutional arrangement, monitoring and reporting arrangement, budget, as well as the explicit implementation schedule.

31 (vii) Before the approval of the project, release the draft of the resettlement plan(including the expression of the consultation process) to the affected people and other interested parties in the language and way the affected people can understand in time at proper places. Announce the final resettlement plan and its updated editions to the affected people and other interested parties. (viii) Deem the work of involuntary resettlement as part of the development project or plan. When calculating the cost and benefit of the project, all the expenses needed by the resettlement plan shall be included. (ix) Monitor and evaluate the resettlement results, and inspect the impacts on the living standards of the affected people. Investigate whether the resettlement plan has achieved the expected effect combining the basal investigation and monitoring results. Announce the monitoring report. mumumu5.3 Chinese laws, regulations and relevant policy provisions In this project, the Land Administration Law of the People's Republic of China is the principle legal basis. Meanwhile, the Ministry of Land and Resources and Anhui Province also issued some similar policies and regulations. See table 5-1 for the main terms of resettlement. The Decisions of the State Council on Deepening Reform and Strict Land Management (GF (2004) No.28) issued in October, 2004 makes clear the principles and standards of compensation of land requisition and settlement, as well as the process and monitoring system of land requisition. The Instructions on Improving the System of Compensation and Resettlement of Land Requisition (GTZF (2004) No.238) is one of the similar legal documents. These are the legal basis for the resettlement in this project. The main clauses in the above policies and applied in this project are as follows.

32 Table 5—1 Abstract of the main clauses of the land management law and related policies Item main contents reference The People's Republic of China (PRC) implements the Socialist public ownership of land, that is the ownership by the whole people and the collective ownership by the working people. Land ownership Land management law, article 2 The nation implements the system of the compensated use of the state-owned land according to the law, except for the Transfer of the use right of the state-owned land within the scope of the law. If any individual or unit needs to use land in construction, the individual or unit must apply for the use of the state-owned land according to law;…… Land management law, article if the construction-occupied land involves the transformation from Agricultural land to construction land, the procedures 43,44 Application for of examination and approval of the Agricultural land transference shall be handled.…… construction The people’s governments at all levels shall strengthen the annual plan management of land use and implement the Anhui Province implements the land total quantity control of the construction land strictly. For those without the plan target of Agricultural land transference measures of The Land or exceeding the plan target of Agricultural land transference, it is not allowed to approve their newly-added Administration Law of the People's construction land. The saved plan target of the agriculture land can be carried over to be used in the next year. Republic of China (June26,2004), article 13 Requisition of basic cultivated land; requisition of the cultivated land more than 35ha. other than the basic cultivated land; and requisition of other land more than 75ha. shall be examined and approved by the State Council. the requisition of the land not included in the above provisions shall be examined and approved by the governments of Land management law, article45 Provinces, autonomous regions and municipalities directly under the central government, and shall be submitted to the Permission of State Council for reference. land requisition The land administrative departments of the people’s governments of the county and municipality draft the plan of Anhui Province implements the agriculture land transference, plan of supplementary cultivated land, plan of land requisition, and plan of land supply. measures of The Land After they are examined and approved by the people’s governments of the municipality and county, report them level by Administration Law of the People's level to the people’s governments with approval authorities for approval. The requisition of forest land shall first obtain Republic of China (June26, 2004), the approval of the administrative department in charge of forestry. article 33 The land requisition by the state shall be announced, organized and implemented by the local people’s government System of above the county level after it is approved according to the legal PROCEDURES. announcement after the compensation plan for land requisition is determined, the related local people’s governments shall release the Land management law, article 46, of land announcement and listen to the opinions of the land-requisitioned rural collective economic organizations and farmers. 48, 49 requisition the land-requisitioned rural collective economic organization shall announce the incomes and expenses of the compensation fees of the requisitioned land to its members and accept their supervision.

33 Item main contents reference Compensate for the requisitioned land according to its original use. the compensation fees for land requisition include the land compensation fee, resettlement fee, and the compensation fees for the ground attachments and green crops. The land compensation fee is 6-10 times the average annual production value of the land in the last 3 years before land requisition. the resettlement fee is calculated according to Compensation the agriculture population needing to be resettled which is calculated according to the quantity of the requisitioned standard for Land management law, article 47 cultivated land/the quantity of the cultivated land occupied per person in the requisitioned unit before land requisition. land requisition The standard of the resettlement fee for every agriculture person needing resettlement is 4-6 times the average annual production value in the past three years before the requisition of the cultivated land. But the resettlement fee for per hectare of the requisitioned cultivated land cannot exceed 15 times the average annual production value before the land requisition The user of the temporary-use land shall use the land according to the use purposes agreed in the temporary-use land contract, and the user cannot build the permanent construction. The term for the temporary use of the land is usually Land management law, article 57 no longer than 2 years. Temporary-use If the project construction and the geological survey need to use the state-owned land or collectively-owned land, it Anhui Province implements the land shall be examined and approved by the land administrative departments of the county and municipality where the land measures of The Land is located; the Temporary-use land in the urban planning area shall first obtain the approval of the administrative Administration Law of the People's department in charge of urban planning before it is submitted for approval. Republic of China (June26,2004), article 45

34

Table 5—2 The main terms and application for GF (2004) No.28, GTZF (2004) No.238 GF (2004) No.28—Improve the system for compensation and resettlement of land requisition GTZF (2004) NO.238 The local people’s government above the county level shall take practical measures to guarantee that the living standards of the land-requisitioned farmers will not decrease because of the land requisition. The land compensation fee, resettlement fee, and compensation fees for ground attachments and green crops shall be paid in full Article 12 amount in time. if the land-requisitioned farmers cannot maintain their previous living standards after they are paid the land Formulation of the standard of unified annual Improve compensation fee and resettlement fee according to the existing legal provisions, or if the social security fees for the landless production the farmers caused by land requisition cannot be sufficiently paid, the people’s governments of the province, autonomous region and Determination of the multiple of unified compensat municipality directly under the central government shall approve the addition of the resettlement fee. If the sum of the land annual production ion compensation fee and resettlement fee reaches the legal limit but is not enough for the land-requisitioned farmers to maintain Formulation of the comprehensive price of measures their previous living standards, the local people’s government can use the income of the compensated use of the state-owned requisition land for land land to supply subsidies. Allocation of the land compensation fee requisition The people’s governments of the province, autonomous region and municipality directly under the central government shall formulate and announce the standard of unified annual production or comprehensive price of the requisition land of each county and municipality. The compensation price for land acquisition shall be the same to the same lands. The national key construction project must list the land requisition fees in full amount into the rough calculation. The local people’s government above the county level shall formulate the detailed measures to guarantee the long-term livelihood of the land-requisitioned farmers. For the projects with stable returns, the farmer can become a shareholder with the right of use of the construction land approved Article 13 according to law. Appropriate Settlement of agricultural production within the urban planning areas, the local people’s government shall include the land-requisitioned farmers into the urban arrangemen Settlement of job re-selection employment system, and set up the social security system; outside the urban planning areas, when requisitioning the farmers’ t of land- Settlement of benefit-sharing compensation collective lands, the local people’s government shall reserve necessary cultivated land for the land-requisitioned farmers or requisitione Settlement of relocated affected persons arrange corresponding working posts for them; the landless farmers don’t have the basic production and living conditions shall d farmers be relocated. The labor and social security department shall raise the instructions on setting up the employment training and social security system for the land-requisitioned farmers as soon as possible. In the process of land requisition, the rights and interests of the farmers’ collective land ownership and the farmers' rights to the contracted management of land shall be protected. before submitting the land requisition for examination & approval according to law, notify the land-requisitioned farmers the Article 14 purpose, compensation standard and approaches of resettlement; the investigation results of the current status of the land Notification of land requisition Improve planned to be requisitioned shall be confirmed by the land-requisitioned rural collective economic organizations and farmers; if Confirmation of the survey results of land the land it is indeed necessary, the Ministry of Land and Resources shall organize the hearing according to related regulations. tThe requisition acquisition related materials known and confirmed by the land-requisitioned farmers shall be the necessary materials for examination and Organization of hearing of land requisition process approval. Accelerate building and improving the mechanism of coordinating and judging the disputes on the compensation for land acquisition and protect the legal rights and interests of the land-requisitioned farmers and land users. The land acquisition matters approved shall be announced unless for special conditions.

35 GF (2004) No.28—Improve the system for compensation and resettlement of land requisition GTZF (2004) NO.238 The requisitioned land cannot be used forcefully if the compensation and resettlement of land requisition is not implemented. Article 15 The people’s governments of the province, autonomous region and municipality directly under the central government shall Strengthen Announce the matters of approval of land formulate the measures to allocating the land compensation fees in the rural collective economic organization according to the the requisition principle that the land compensation fees shall be mainly used for the land-requisitioned farmer households. monitoring Payment of the settlement fee for land The land-requisitioned rural collective economic organizations shall announce the income, expense and allocation of the land and requisition requisition fees to its members of the collective economic organization and accept their supervision. Ministries of agriculture regulation Supervision and inspection after the approval and civil administration shall strengthen the supervision on the allocation and use of the land requisition compensation fees of the land of land requisition inside the rural collective economic organization. requisition

36 5.3Main differences between the Asian Development Bank policies and the Chinese laws 5.3.1Land resettlement compensation 1. Difference: the Asian Development Bank policies require the compensation that is sufficient for offsetting all the income losses and the recovery of the long-term potential of income creation. The Chinese standards are based on the annual value of production.

2. Solution: the solution at the early stage is to provide the substitution land, but the possibility of practice is relatively small. Cash compensation is the first choice for most people, although they cannot guarantee the reasonable use of the compensation fund. Therefore, Asian Development Bank’s further technical support is needed to monitor the incomes of the severely affected households, especially the disadvantaged households. And meanwhile, the local government shall provide help for those in need.

5.3.2Consultation and announcement 1. Difference: the Asian Development Bank policy requires the full knowledge of the affected personnel, and the as early as possible consultation with them. The Chinese stipulation has improved the transparency of notice and compensation.

2. Solution: the consultation already began in the early phase (before and during the technical assistance period). The project office of Chaohu City agrees to announce the Resettlement Plan according to the requirement of Asian Development Bank.

5.3.3Lack of legal rights 1. Difference: some of the affected groups lack the official legitimate land ownership. This shall not be the obstacle of compensation. While according to the Chinese law, the illegal owner of the requisitioned land will not be compensated.

2. Solution: the consultation already began in the early stage (before and during the technical assistance). The project office of Anhui Province agrees to announce the resettlement plan according to the requirements of ADB.

5.3.4 Resettlement monitoring, evaluation and report 1. Difference: Asian Development Bank requires the internal and external resettlement

37 monitoring. But the Chinese law has no such requirement except for the reservoir project.

2. Solution: the internal and external resettlement monitoring systems are set up for all the projects loaned by Asian Development Bank. These are all written in the resettlement plan. The requirements of the internal and external reports are specified in detail in the resettlement plan.

5.4Compensation principles of this project According to the requirements of the laws, regulations and policies of the Chinese government and Asian Development Bank, the principles of compensation, rights and interests of this project are formulated with the aim of guaranteeing that the affected persons obtain adequate compensation and assistance measures and their productivity and living standard can at least recover to the standard before the project begins. See Table 5-3 for the detailed resettlement principles of the project. Resettlement principles Table 5—3 Principles 1 If feasible, try to avoid the involuntary resettlement. The compensation and rights the affected people obtain will at least maintain their standard of living before this 2 project, or higher. All the affected people will gain the migration compensation and resettlement assistance no matter whether they 3 have the lawful rights or not. If the land one has is not enough for making a living after the land acquisition, provide cash or recovery in kinds in 4 replacement of the lost land, as well as other activities creating incomes. The affected people shall fully understand the qualification, compensation methods, standards, livelihood and 5 income recovery plans, as well as the project time schedule, and take part in implementation of the resettlement plan. The land acquisition shall not be performed before the affected people are satisfied with the compensation and 6 resettlement (plan). 7 The executing organization and the independent/third party will monitor the operation of compensation. The overall planning of the municipalities (district, county), villages and towns affected by the resettlement plan 8 and the project are consistent. 9 The resettlement fund will be sufficient and covers all the affected aspects comprehensively.

5.5Compensation cut-off date

38 The cut-off (expiration)date of defining the qualification of compensation is decided on June 30th, 2016. After the feasibility research is approved, the expiration date will be announced. The cultivated land newly reclaimed after the expiration date will not be included in the compensation or subsidy scope. Any construction built or tree planted merely for extra compensation will not be included in calculation. 5.6 Determination of the compensation standard of the project’s resettlement impacts 5.6.1 Collective land requisition According to the Land Administration Law of the People's Republic of China, Instructions on Improving the Compensation System of Land Requisition, relevant policies and regulations of The Land Administration Law of the People's Republic of China implemented in Anhui Province, the compensation for land requisition includes land compensation fees, resettlement assistance allowance, crop compensation fees and so on. It is determined to implement the compensation standard for the collective land requisition in this project according to the Notice of the People’s Government of Anhui Province on Adjusting the Compensation Standard for Land Requisition in Anhui Province (WZ〔2015〕 No.24). See Table 5-4 for the compensation standard for collective land requisition in detail. Compensation standard for the collective land Table 5—4 Standard of Cultivated land unified annual Compensation standard of Land compensation Resettlement subsidy production land multiple multiple (Yuan/mu) requisition(Yuan/mu)Lamu

1850 7 15 40700

The standard of crop compensation of the requisitioned land differs according to the conditions of land use. For the crop compensation fees, the standard of the green crop compensation fee of the requisitioned cultivated land is 1200Yuan/mu. The compensation will be paid to eligible individuals.

39 The compensation fee for the rural collective land requisition will be distributed to all villagers after it is deducted 3400 Yuan/mu according to the custom of Yicheng Community. According to field survey, although the agricultural economy in this area is quite developed, the management level of agricultural production in this project scope is poor and extensive, this area is basically dry land and has two crops in a year, the standard cropping system is wheat-rice. Generally speaking, the wheat is produced 400kg/mu, with 2.4-2.8 yuan/kg, the profit is about 1000-1200 yuan/mu and the cost is 500-600 yuan/mu (fertilizers, pesticides and seeds). The production value and cost of the rice is similar with the wheat’s, which can be concluded that the average annual net income for cultivated lands is 600 yuan/mu, the standard of this project is 33.9 times more than the net income of the land, which indicates that the compensation standard in table 5-4 is formulated on the basis of the replacement cost.. Because the project is located in an area lying between the urban and suburban districts, agriculture only accounts for about of 11.0% of the residents’ incomes, and other sources of incomes include working in cities and the tertiary industry. The households being sampled also have some incomes from sidelines, business and other activities. This pattern of incomes conforms to the local industrial structure. Along the gradual urbanization, the people are accustomed to land acquisition. Women tend to find jobs in areas nearby, so they can take care of their families, while men work in factories or other cities. Only 5.2455 mu of land is to be acquired for the project. There will be no farmer who is to lost his or her land completely. Therefore, the project has little financial impact on local farmers. 5.6.2 Requisition of the enterprise’s ownership of land

The ownership of the land of 1.8mu planned to be requisitioned for this project of Lishui Bay Pumping Station belongs to Anhui Jiatai Chemical Co., Ltd., there is no enterprise housing at the place where the pumping station is planned to be built. At present, related departments of Chaohu City is negotiating with Anhui Jiatai Chemical Co., Ltd. The

40 estimated land appraisal price is 160 thousand Yuan/mu, and by the end of 2016, it is hopefully that the land can be purchased and stored successfully. The government will appropriate the land to the housing and urban-rural construction bureau of Chaohu City for free for the use of construction of the city infrastructure---waterlogging pumping station. 5.6.3 Compensation for the attachments and infrastructure According to the principle of the price of re-acquisition and the notice of the people's government of Hefei City on adjusting the compensation standard for the attachments on the requisitioned collective land such as crops and houses in Chaohu City, the compensation standards for the attachments, infrastructure and crops in this project are determined. See Table 5—5 for the details.

Standard of compensation for the attachments and infrastructure Table 5-5 Item Unit Compensation standard(Yuan/unit) Telegraph pole, wire Yuan / piece 500 Roads for transporting Yuan/m2 30

5.6.4 Other expense standards See Table 5—6 for other expense standards in detail.

41 Taxation standard of the project resettlement

Table 5-6 Serial numbe Item Standard for collecting fees Reference Accepting object r Management Calculated according to 4% of the Land and 1 expense for land total land requisition fees Resources Bureau acquisition Expenses for scientific and Calculated according to 3% of the 2 Design department research survey and total land requisition fees design Resettlement Administrative Calculated according to 5% of the 3 implementation expenses total land requisition fees organization Expenses for Calculated according to 3% of the 4 technical training total land requisition fees Expenses for Calculated according to 4% of the External 5 external monitoring total land requisition fees monitoring unit and evaluation Special security fees Inside the urban planning area, for the Social Security 6 20Yuan/m2; outside the urban GBF (2006) No.29 land-requisitioned Office planning area, 10Yuan/m2 farmers Expenses for Land and 7 cultivated land 9Yuan/m2 WCZ (2001) No.1061 Resources Bureau reclamation Calculated according to 10% of the Unexpected sum of the land requisition fees and 8 expenses design fees, management fees, training fees and monitoring fees Note: The project construction unit will cover all the expenses of taxation in the table, including total construction cost.

5.6.5 Vulnerable groups According to the purpose of this project, vulnerable groups include the disabled, households enjoying the five guarantees(the aged, the infirm, old widows and orphans who are taken care of by the people's communes in five ways: food, clothing, medical care, housing and burial expenses), female headed households, low-income groups(per capital net income less than 2000 yuan/year) and the minority.

42 According to the survey, the affected people are all Han and there are no minority and vulnerable groups. In the implementation process of this project, the construction unit should keep tracking and monitoring. If vulnerable groups are discovered, the following safeguards should be in place: 1) Offer vocational training to workforce from the disadvantaged groups' family and provide employment information and guidance to increase their chances of employment. 2) In the process of project construction, workforce from the disadvantaged groups' family should be given priority to do nontechnical job. 3) Coperate with Chaolake social labor and social security departments to set up special fund which is 1% of the immigration expenses. 4) After the construction of the project, needy households can make application to get loan from local credit union under the help of local village's collective guarantee. Elderly person of no family and orphans who have no relatives to take refuge can make application of their own will. If they comply with the adoption qualification, local civil affairs department will arrange them to welfare house(nursing home).

5.6.6 Women-supporting measures In addition to enjoying the policy of compensation of land requisition, women also enjoy the special supportive policies:

(1) Having the preferential access to employment opportunities. 30% of the affected women will obtain the opportunities of employment of unskilled workers;

(2) Having the preferential access to technical training. This project will carry out the non-agricultural technical training for affected persons covering 20people, among which the female labor force is no less than 10 people (accounting for 50%).

(3) The affected women can obtain the related information in the resettlement process, and can participate in the justice consultation and resettlement. In the implementation of resettlement, convene the special women's symposium to introduce the resettlement-related policies to improve their awareness;

(4) The compensation agreement shall be signed by both sides of husband and wife.

5.7 Appropriation of compensation funds and time arrangement For the land requisition of this project, the resettlement compensation expenses are paid by the project implementation organization. The expiration date of defining the

43 qualification of compensation is June 30th, 2016. The fund appropriation of this project is implemented according to the agreement signed by the construction party and affected party. It is required that all the compensation funds for land requisition are appropriated in place before starting the land requisition work. 5.8 Compensation entitlement All the affected people will obtain the compensations for their affected properties according to the re-acquisition values of the properties. A matrix of rights of compensation (qualification) inTable 5-7 is made according to the compensation principles and compensation qualifications.

44 Table 5—7 Entitlement Matrix Impact Implementing Impact degree Entitled persons Compensation and resettlement policy Compensation standard category measures 5.2455mu rural Obliges of 6 households 1) Obtain the land requisition compensation fees, 2) collective land is and 21 people in total in Have the preferential access of the opportunity of requisitioned in total Xiaocun residential employment by the project, which is completely group of Yicheng 3) obtain the labor employment information for free, the cultivated land. Communitymu on 4) Have the preferential access of technical training, Distribution of land Cultivated land Yafu Street in Chaohu 5) Have the preferential access of obtaining the compensation fees, 40700Yuan/mu City. opportunity of export of labor service. investment production The capital allocation measures are: 1) take out measures (training of 3400Yuan/mu from the land requisition fee and planting technologies, transfer it into the special account for endowment irrigation techniques, insurance of the land-requisitioned farmers Cultivated land the tertiary industry Permanent uniformly. Allocate the rest compensation fund 40700Yuan/mu, green crop management and so on) requisitioned equally according to the population of the village fee 1200Yuan/mu; for will be decided by the land group. Chaohu City Labor and Social Security ground attachments, see Requisition the villagers' assembly. If Bureau will Pay endowment insurance to those land Table 5-5. enterprise-ownership training is needed, it Anhui Jiatai Chemical loss farmers, who will also receive the allocated (Anhui Jiatai shall be approved by the Co., Ltd. compensation fund of future land acquisition by Chemical Co., government at the next other projects. Ltd.)land of 1.8mu higher level which shall 2) The compensation fees for the ground attachments supervise the proposal and green crops belong to the owners of the ground of the village collective. attachments and green crops. 3) The land purchasing and storage center pays the compensation for land requisition for Anhui Jiatai Chemical Co., Ltd. to the enterprise.

The fees for recovery of the The city proper of damage roads for pipeline 45 mu in total, all Chaohu City, affecting 1) Compensate according to the hold-up time and construction has been along the road,, people’s going out for Give advance losses, including the compensations fees for green included in the project Compensation for a short time. The notification for Temporary crops and reclamation; the occupation period can last investment; crops: 1200Yuan/mu; contractor is temporary land land 1 year at most; Compensation for crops: compensation for responsible for occupation 2) After the occupation of land ends, restore the occupation and give 1200Yuan/mu; reclamation: restoration of the original state of the land and give appropriate corresponding compensation for WCZ[2001]No.1061 temporarily occupied economic compensation. compensation. reclamation: , standard 9Yuan/m2 land. WCZ[2001]No.1061,

standard 9Yuan/m2 1)have the preferential access of the opportunity of The Women's is going to invest 50,000 Women / 10 women employment, and 30% of the women are ensured to Federation will provide RMB as training fee, obtain the opportunities of employment of unskilled the acceptable

45 Impact Implementing Impact degree Entitled persons Compensation and resettlement policy Compensation standard category measures workers,2) Have the preferential access to the free education for the technical training. It is guaranteed that the trained women women account for 50 % of the total number,3) it is ensured that they obtain the related information during the resettlement process and be able to participate in the consultation of resettlement affairs. In the implementation of resettlement, convene the special women's symposium to introduce the resettlement-related policies to improve their awareness. Telegraph pole, canal, 1) After the project unit compensates property unit roads for transporting for the affected specialty project at replacement cost, Specialty and so on。Telegraph the restoration work shall be conducted by the Telegraph pole, wire500 project and pole, wire500 Property owners property unit, or by the project unit according to the Yuan/unit. ， Roads for ground ， original standard and scale; 2 attachments Yuan/unit. Roads for transporting,30Yuan/m , transporting,30Yuan/ 2) Calculate the compensation fees for the ground m2, attachments according to related regulations. Free of charge. The reasonable costs happen because Complaints / All the affected people of this will be paid from the unexpected expenses of and appeals the project.

46 6 Resettlement plan and income restoration measures

6.1 Objectives, methods and principles of resettlement and restoration 6.1.1 Objectives of resettlement and restoration According to the requirements of Asian Development Bank’s implementation policies on involuntary resettlement and related national laws and regulations, the general objective for the resettlement for the Water Environment Improvement Engineering of the City Proper of Chaohu City (medium adjustment) is to recover and enhance the production and living standards of the affected people as soon and far as possible. The detailed objectives are: ·Compensation for all kinds of affected ground attachments according to the replacement cost; ·The infrastructure can be compensated for or recovered with the original function; ·The labor force affected by land acquisition can be resettled properly, their long-term livelihood can be guaranteed, their living standards will not decrease but increase, and there will be no farmer who loses his/her sufficient source of income permanently because of land requisition. ·It is planned to requisition the land of 1.8mu owned to Anhui Jiatai Chemical Co., Ltd. for this project of Lishui Bay Pumping Station. The location of the pumping station has no workshop currently. The government is now negotiating with the enterprise and plans to pay 160 thousand Yuan/mu to Anhui Jiatai Chemical Co., Ltd.. 6.1.2 Methods of resettlement and restoration The settlement and restoration of the affected people will be conducted in two aspects at the same time: life and production. The settlement and restoration of life mainly refers to the restoration of the supporting facilities for life, mainly including: ·Reasonable compensation for the requisitioned land, guarantee that the affected people will not lose their sufficient sources of income because of land requisition. ·Provide help for the affected labor force in their production and employment, guaranteeing that the long-term livelihood of the affected people will not be affected by the land requisition of the project.

47 ·Anhui Jiatai Chemical Co., Ltd. will be completely relocated by following the government’s plan, and the existing production patterns will be maintained, and the employee’s life will not be affected. 6.1.3 Principles of resettlement and restoration ·The overall process of the affected people participating in the resettlement. The determination of the issues of the compensation standards for land requisition and ground attachments, capital allocation, use and management of the resettlement fund, measures for the restoration of production and operation and so on must be agreed consistently through consultation with the participation of the affected people or their representatives. The consultation with the affected people will be carried out by convening the representative symposium or the villager (affected community resident) conference. For the affected population, conduct equal distribution according to the registered permanent residents in the village group after deducting the endowment insurance for farmers of 3400Yuan RMB/mu in accordance with the local practice of distribution of compensation fund for land requisition. No unit or individual can retain or misappropriate others’ compensation fund.

6.2 Resettlement of people affected by land requisition The influence of this project is mainly the influence of permanent land occupation. The project’s permanent collective land requisition involves Xiaocun residential group of Yicheng Community on Yafu Street in Chaohu City. The total permanently-requisitioned land for the project is 5.2455mu, all cultivated land; 6 households and 21 people are directly affected. For the affected population, conduct equal distribution according to the registered permanent residents in the village group after deducting the endowment insurance for farmers of 3400Yuan RMB/mu in accordance with the local practice of distribution of compensation fund for land requisition. In the process of investigation and consultation, most immigrants think that the local residential environment and transportation conditions will be greatly improved and there will be more job opportunities after the implementation of the project. The project office of Asian Development Bank also promises that: 1) Carry out skill training for the land-lost farmers desiring employment universally;

48 2) The job opportunities produced during and after the implementation of the project will be preferentially arranged for the land-lost farmers, and the farmers will be employed officially. 6.3Measures of restoration of the permanent requisitioned land of the affected villages Because the project is located in an area lying between the urban and suburban districts, agriculture only accounts for about of 11.0% of the residents’ income and other sources of incomes include working in cities and the tertiary industry. The households being sampled also have some incomes from sidelines, business and other activities. This pattern of incomes conforms to the local industrial structure. Along the gradual urbanization, the people are accustomed to land acquisition. Women tend to find jobs in areas nearby, so they can take care of their families, while men work in factories or other cities. Only 5.2455 mu of land is to be acquired for the project. There will be no farmer who is to lost his or her land completely. Therefore, the project has little financial impact on local farmers. In the field investigation, all the affected farmer households welcome the project; the affected households think that after the implementation of the project, the local water environment and surrounding environment sanitation conditions will be improved, bringing convenience to the life and production of the villagers. All the affected households demand currency compensation for land requisition, which is easy to operate. The affected farmer households can use the compensation funds for the restoration of their life and production at their own wills. There are mainly 3 livelihood recovery measures for the permanent requisitioned land involved in this project as following: 1. Direct currency compensation. Determine the compensation standard for land requisition and the quantity of lost cultivated lands strictly according to the relative national and local policies, and pay the compensation fees directly. Take out 3400Yuan/mu from the land requisition fee and transfer it into the special account for endowment insurance of the land-requisitioned farmers uniformly. Allocate the rest compensation fund equally according to the population of the village group. 2. Labor transfer. The government can take some supporting measures to support the development of some individual enterprises, such as the labor-intensive enterprises of

49 agricultural machinery manufacturing and processing manufacturing, creating more job opportunities. 3. Old-age security for the land-lost farmers. The land-requisitioned farmers meeting the conditions of The Notice of the Measures for the Implementation of the Basic Endowment insurance of the Land-Requisitioned Farmers in Chaohu City (CZ (2005) No.27) can join in the endowment insurance for the land-lost farmers voluntarily. By the end of December, 2015, the land-requisitioned farmers in Chaohu City basically realized “insured before requisition” and “all people shall be insured are insured”. The rate of joining the endowment insurance for the land-requisitioned farmers was 98%, and the rate of payment of the endowment insurance is 100%. Meanwhile, in the project construction process, the resettlement implementation organization shall take some measures to help and support the immigrants, including: (a) During the project construction period, labor services will be arranged for the immigrants preferentially, which will bring cash incomes to the affected people. (b) Arrange the projects of labor service export within the scope of the affected county for the affected people preferentially. (c) In the entire process of production restoration of the immigrants, the skill training for the affected people can be organized, such as the training of industrial crop cultivation and animal husbandry. Invite the relative technical personnel of the department of Agriculture and department of labor and social security to give the training on agriculture, cultivation and so on. Each affected farm household shall receive the agricultural and non-agricultural production technical training at least for one time. Improve the quality and output of crops with these measures to increase the economic incomes of the affected people to recover the livelihood of the affected people. 6.4 Endowment insurance measures of the land-lost farmers Implement the endowment insurance for the land-lost farmers according to The Notice of the Measures for the Implementation of the Basic Endowment insurance of the Land-Requisitioned Farmers in Chaohu City (CZ (2015) No.27). The land-requisitioned farmers in the regulation refer to the agricultural population within the range of urban planning with the per capita cultivated land less than 0.3mu or lose all the land after the land requisitioned approved according to law.

50 The land-requisitioned farmers in within the city planning area who are over the age of 16 years’ old and do not join the basic endowment insurance for urban workers at the time of land requisition will all be included into the scope of endowment insurance for the land-requisitioned farmers. The basic endowment insurance fund for the land-requisitioned farmers consists of two parts: the consolidated fund and individual account fund. Sources of the basic endowment insurance consolidated fund for land-requisitioned farmers: (Ⅰ)The government contribution part shall be disbursed from the income of paid use of state-owned land, such as the income of transferring the use right of state-owned land; (Ⅱ) The village(group) collective contribution part shall be paid according to the standard of 15% of the compensation fees for the requisitioned land. The individual account fund of the endowment insurance fund for the land-requisitioned farmers consists of the voluntary fund paid by the land-requisitioned farmers and its interests. The individual payment standards have three levels: the first level is 3600Yuan; the second level is 6600Yuan; the third level is 10800Yuan. The specific distribution standards are: (Ⅰ)For the individual contributed 3600Yuan, distribute 120Yuan per person per month, of which the old-age insurance fund is 90Yuan, the compensatory insurance fund is 30Yuan; (Ⅱ) For the individual contributed 6600Yuan, distribute 160Yuan per person per month, of which the old-age insurance fund is 105Yuan, the compensatory insurance fund is 55Yuan. The land-requisitioned farmers reaching the ages specified in item 1 in this article who do not contribute individually start to receive the basic endowment insurance fund of 80Yuan in the next month when they reach the specified ages. The land-requisitioned farmers start to receive the basic endowment insurance fund in the next month when the men reach the age of 60, and women reach the age of 55. 6.5 Affected people taking skill training

The project unit will unite the departments of agriculture, social security and so on to provide training to the affected villagers, especially the directly affected labor force to enhance their abilities of creating incomes. The subsidy for training will be paid from the

51 training budget. The training contents mainly include: pre-job training for employment, vocational training, The training objectives are: giving the training according to different natural environmental characteristics and impact degrees, helping them to recover their lives and improve their labor skills. This kind of training can relieve the impacts brought about by land requisition as soon as possible, the living standard of the affected residents will increase to a certain level or at least recover to the original level. Training objectives: for the affected farmers needing to recover their normal lives, under possible conditions, at least two people (one man and one woman) in each affected household can be arranged to attend the training. The training needs depend on what kind of resettlement and restoration method the immigrants tend to adopt with the objective of ensuring that the immigrants can change the traditional employment idea, set up the correct occupational consciousness and grasp the necessary labor technologies and skills. In the project-affected area, the agricultural income only accounts for 10% of the total income. Therefore, to conduct non-agricultural technical training for the affected people and improve their employability skills are the important measures and methods for improving the employment rate. The Labor Security Bureau of Chaohu City undertakes the implementation of skill training and re-employment of the land-lost farmers, formulates the training schemes, sets up the scientific training courses, implements the system of reporting the training work semiannually, and adjusts the training plan in time according to the employment needs. The training contents include, pre-job training and vocational skill trainin.; the main contents of the pre-job training are the national employment situation, employment policy, protection of laborers' rights and professional ethics; the vocational training is carried out irregularly according to the job requirements and its main content is the non-agricultural training, such as tailoring. See Table 6-1 for the detailed training plan.

Table of the employment training plan in the project-affected area Table 6-1 Traini Fund Financia Number of Training ng Training Responsible arrange l District Town trainees(peop date object content unit ment(10 resource le/year) s 000Yua s

52 n) Human Affect Govern resources and 2016.6, ed Clothing ment 30 labor security 5.0 2016.9 house making budget bureau of holds fund Chaohu City Construc tion Human Affect Govern vocation resources and Chaohu Yafu 2016.6, ed ment 30 al labor security 5.0 City Street 2016.9 house budget training, bureau of holds fund ,catering Chaohu City training Human Govern resources and ment Other irregular training 40 labor security 5.0 budget bureau of fund Chaohu City

6.6 Protection of women’s rights and interests At the stage of preparing the resettlement plan, the investigation group organized the women to participate in the investigation of the project impacts actively and asked them their opinions on the income restoration plan. The women are supportive on the project construction and they think the construction of this project is beneficial for the use of water resources, avoid the pollution of the water resources, reduce the disease infection ratio, protect people’s health, and reduce the expenditure on hospitalization costs. The land requisition of the project releases the women out from the soil work, and after they receive the cash compensation, they have the preferential access to be employed by the project, and the clothing making skills and catering skills. Aiming at the wills of the women, during the project implementation process, it is guaranteed that 30% of the women obtain the opportunities of non-technical employment. In addition, the women and men doing the same job will get the same salary. The affected female workforce will be given preferential consideration to attend the technical training to guarantee that their social status and economic income will not be harm. 20 people in total will attend the training for affected persons, and the female labor force is no less than10 people (accounting for 50%). Meanwhile, the affected women can obtain the relative information during the resettlement process and can take part in the justice consultation and resettlement. The compensation agreement must be signed by both sides of husband and wife. In the implementation of resettlement, convene the special women's symposium to introduce the resettlement-related policies to improve their awareness.

53 6.7 Assistance measures for the vulnerable groups According to the purpose of this project, vulnerable groups include the disabled, households enjoying the five guarantees(the aged, the infirm, old widows and orphans who are taken care of by the people's communes in five ways: food, clothing, medical care, housing and burial expenses), female headed households, low-income groups(per capital net income less than 2000 yuan/year) and the minority. According to the survey, the affected people are all Han and there are no minority and vulnerable groups. In the implementation process of this project, the construction unit should keep tracking and monitoring. If vulnerable groups are discovered, the following safeguards should be in place: 1) Offer vocational training to workforce from the disadvantaged groups' family and provide employment information and guidance to increase their chances of employment. 2) In the process of project construction, workforce from the disadvantaged groups' family should be given priority to do nontechnical job. 3) Coperate with Chaolake social labor and social security departments to set up special fund which is 1% of the immigration expenses. 4) After the construction of the project, needy households can make application to get loan from local credit union under the help of local village's collective guarantee. Elderly person of no family and orphans who have no relatives to take refuge can make application of their own will. If they comply with the adoption qualification, local civil affairs department will arrange them to welfare house(nursing home). 6.8 Infrastructure recovery scheme The affected special facilities and ground attachments are to be restored and rebuilt by the property owner unit after the project unit compensates the property owner unit. For ground attachments, crop compensation will be paid to eligible individuals. For the affected municipal mupublic facilities, the project implementation unit conducts demolition according to the construction drawing of this project with the principle of trying to minimize movement while not affecting the project construction. For the movement of the affected pipelines, under the premise of not affecting the normal lives

54 of the residents along the lines, the project implementation unit first conducts rebuilding (or movement) and then conduct demolition. Besides, for the production and living facilities this project construction will affect, at the project investigation and design stage, the design unit conducted many investigations on the possible impact of the project construction on the production and lives of the local residents, and adopted the forms of symposium and questionnaire to take advice from the local people’s governments at all levels, relative departments, social communities and local residents. Most of these opinions are embodied in the project design.

55

7 Information disclosure, consultation and participation

In order to build the resettlement work of the Water Environment Improvement Engineering of the City Proper of Chaohu City(medium adjustment) loaned by Asian Development Bank on the practical and reliable basis, protect the legal rights and interests of the affected persons, , and decrease the complaints and disputes, this project attaches great importance to the participation and consultation of the affected persons, , and the resettlement plan is prepared on the basis of information announcement and full consultation with the affected people. Therefore, in the process of planning, designing and implementation deciding of this project, Chaohu Urban Construction Investment Co., Ltd., project office (the housing and urban-rural construction bureau of Chaohu City), Tongji University Architecture Design and Research Institute (Group) Co., Ltd., resettlement report compiling unit and so on adopt the opportunities of social economic investigation, social impact assessment survey and so on to widely introduce and broadcast the basic information of this project in various ways together with the consultation organizations, take advice from the affected people, and conduct consultation on issues of common interest. The results of public participation and consultation provide the basis for improve the resettlement plan. 7.1 Public participation and consultation activities already carried out so far The project office organized the designing unit, consultation unit, environment evaluation unit, local resettlement department and the affected people to announce information and carry out consultation for all the major topics involved in the resettlement planning stage. See Table 7-1 for the main Public and consultation activities already carried out so far. After November, 2015, the ADB delegation identified this project. The unit compiling the resettlement report and Chaohu Urban Construction Investment Co., Ltd. interviewed the affected people and came to the following conclusions from the interviews: Firstly, the interviewed objects have positive evaluation on the construction of this project, and have relatively high expectation about the positive influences of this project. For example, 100％ of the people approve the construction of this project. Most people think that this project can bring the increase of job opportunities, improve the local

56 environmental quality, promote the local economic development, better the local investment environment, benefit the local women and make their family lives better and better. Meanwhile, they also think the government shall accelerate the pace of construction of the project. Secondly, the interview also finds that the affected people are very concerned about the compensation and settlement, especially the standards and policies of compensation and settlement. Aiming at these conditions, during the process of preparation and implementation of the project, Chaohu Urban Construction Investment Co., Ltd. and other related organizations take measures in forms of distributing resettlement information manuals, posting land requisition compensation policies, convening the villager representative meeting and so on to introduce the situations of the project, broadcast the national land-requisition policies and detailed measures of Chaohu City on implementing national policies, announce the project-related information, and put the resettlement policies into practice. Table 7-1 Time arrangement of consultations with the affected people and enterprises Consultation contents Time arrangement Participating units Further promotion of the Chaohu Urban Construction Investment Co., compensation policies for July , 2016 Ltd., unit compiling the resettlement plan, representatives of the affected people land requisition the project office of Chaohu City, the Development and Reform Commission of Chaohu City, unit compiling the resettlement plan, Land and Resources Bureau of Chaohu Resettlement measures and City, Labor and Social Security Bureau of July—August 2016 detailed implementation plan Chaohu City, The Women’s Federation in Chaohu City, Agriculture Committee of Chaohu City, Bureau of Civil Affairs of Chaohu City, Land and Resources Office of Yafu Street, villages, groups and affected people. Chaohu Urban Construction Investment Co., Ltd., the project office of Chaohu City, Chaohu Negotiation on resettlement July -December, Sub-center of Hefei Land Purchasing and 2016 fees Storage Center, Land and Resources Bureau of Chaohu City, Anhui Jiatai Chemical Co., Ltd. the project office of Chaohu City, the Development and Reform Commission of Chaohu City, unit compiling the resettlement The whole process Restoration of the affected plan, Land and Resources Bureau of Chaohu of project City, Labor and Social Security Bureau of infrastructure implementation Chaohu City, The Women’s Federation in Chaohu City, Agriculture Committee of Chaohu City, Bureau of Civil Affairs of Chaohu City,

57 Land and Resources Office of Yafu Street, villages, groups and affected people. The whole process Chaohu Urban Construction Investment Co., Problems happen during of project Ltd., unit compiling the resettlement plan, project implementation implementation representatives of the affected people The whole process Chaohu Urban Construction Investment Co., Collecting suggestions and of project Ltd., unit compiling the resettlement plan, complaints implementation representatives of the affected people

7.2 Plan of consultation with the affected people in the future The project office of Chaohu City and the implementation organization will also carry out further consultation activities, and the main consultation contents are: ·The detail opinions of the affected people on the compensation policies for land requisition; ·The arrangement of the progress of the compensation and payment for households affected by land requisition; ·Other issues concerned by the affected people. ·The issue of fees for land ownership transfer concerned by Anhui Jiatai Chemical Co., Ltd. See Table 7-2 for the time arrangement of the next negotiation between the project office and the affected people. The project office of Chaohu City and the implementation organization can convene consultation meetings aperiodically with the grass-roots in the affected area on the negotiation issues and report the situations to ADB project office. In addition to participating in the consultation activities orgainzed by ADB project office, the monitoring department will also negotiate with the affected people and collect their complaints and suggestions independently on other monitoring problems and report the monitoring information to requisition and demolition departments at all levels. 7.3 Feedback of public participation and consultation opinions Table 7—2 andTable 7—3 reflect the feedback information of public participation and consultation opinions.

Public participation program Table 7-2 MEASUR PARTICI TOPIC FOR PURPOSE DATE UNIT E PANT DISCUSSION Recheck Field July, the project office of All the 1)locate and make up of the investigat 2016 Chaohu City, the affected the deficiencies, and

58 physical ion Development and Reform people confirm the final quantity Commission of Chaohu City, influence quantity Land and Resources 2) detailed statement of Bureau, the town and the affected persons’ village, village's leaders land requisitioned and the properties lost 3) prepare the basic contract of the compensation agreement Village the project office of Announc Announce the area of bulletin Chaohu City, the ement of Development and Reform All the the requisitioned land, board July, land Commission of Chaohu City, affected compensation standard, and 2016 requisitio Land and Resources people ways of resettlement and villagers’ n Bureau, the town and so on; meeting village, village's leaders Announc ement of Village the project office of the bulletin Chaohu City, the scheme Development and Reform All the Compensation board July, of land Commission of Chaohu City, affected expenditure and and 2016 requisitio Land and Resources people payment methods villagers’ n Bureau, the town and meeting compensa village, village's leaders tion Determin e the the project office of income Villagers Chaohu City, the Discuss the final income Development and Reform All the restoratio ’ meeting August, restoration scheme and Commission of Chaohu City, affected n plan (many 2016 the plan of using the Land and Resources people and its times) Bureau, the town and compensation fund implemen village, village's leaders tation Labor security bureau, the All the Training Village 2016.5~ Discussion of the town and village, village's affected plan meeting 2016.9 training demands leaders people 1) the progress and impact of resettlement 2) Villagers payment of the All the Monitorin participat 2016.6- The town and village, compensation fund affected g ing in the 2019.5 village's leaders 3) information people meetings announcement 4) restoration of life and production

Situations of public participation and consultation Table 7-3 Item Problem Reasons and results of the Improvement measures problem Land The Water Environment Improvement Cause the some villagers lose In the project designing process, requi Engineering of the City Proper of Chaohu their land try to minimize the land to be

59 sition City (medium adjustment) will requisitioned. requisition part of the cultivated land for the use of the construction of the construction of the projects of Yichengwei Pumping Station and Lishui Bay Pumping Station. Each related department shall determine the affected groups as Blocked information. Most of the early as possible. Meanwhile, the Cause the land-requisitioned affected people didn’t obtain the adoption of broadcasting, village household unable to arrange information related to the project from group meeting and so on is their life in the future the proper channels suggested so that the affected people can have deeper understanding of the project. The payment and distribution In November 2015, Chaohu Urban The standard and date of distribution of of the compensation fund are Construction Investment Co., Ltd. the compensation fees which are more directly related to the future convened the survey meeting of concerned by the public livelihood of the affected public participation and read out people the related policies. In the process of distributing the compensation fees, carry out the Com financial disclosure and system pensa disclosure, such as announcing the tion Some villagers worry that compensation standards. After the fees they cannot receive the Form of distributing the compensation compensation fund is determined, compensation fund in full fees it shall be posted and announced to amount, or the fund is receive the participation and retained. supervision of the affected people. Distribute the compensation fees to the affected people directly in the form of the bankbook. The noise pollution produced Envir by the construction vehicles There shall be speed limit at the Noise pollution generated by project onme during the construction construction site, and whistling is construction nt process will affect the prohibited at night residents along the road Distribute the resettlement information brochure, set up the channels for complaints and feedback, such as the complaints Publi The affected groups shall fully hotline and the villagers' c share the project benefits, and suggestion box. Build the Let the project-affected people fully partic strengthen the enthusiasm of consultation system; convene more participate in each link of the project ipatio governments at all levels and symposiums attended by the n the public project office, representatives of the village committee and the affected people symposium to discuss the solutions to problems together. 7.4 Ways of participation of consultation for the affected people during the implementation period (1) Direct methods ① Symposium of the affected people Through discussing with the representatives or leaders of the affected people at the symposium, concentrate the crucial issues concerned by the affected people, collect their opinions, and ask for the suggestions on these issues from the local government and the resettlement department.

60 ② Meeting of land requisition consultation The meeting of land requisition consultation is organized uniformly by the project resettlement office and held in different areas. Introduce the compensation methods and choices in detail to the affected people for the convenience of their decision making. Ask for their suggestions and embody the suggestions in detail in the Resettlement Plan. After closing the meeting of land requisition consultation, the working personnel visit the homes of the affected people and sign the “Agreement of Compensation and Resettlement for Land Requisition” with the affected people after the full consultation. (2) Indirect methods The public reflect their complaints, opinions and suggestions to the village committee and monitoring department, and the resettlement office feedback the treatment opinions according to the treatment process. 7.5 Policy announcement and the Resettlement Information Brochure In order to let all the affected people fully understand the policies and detailed implementation methods of the resettlement of this project in time, and truly live up to the publication, justice and transparency of the resettlement work, the project resettlement organizations at all levels will take the following measures to guarantee the publicity of the resettlement action work: (1) Before July 30th, 2016, post the resettlement policies and compensation standards of this project in public on Chaohu Daily, website of the government of Chaohu City and other local media; (2) Each affected village committee or other public place shall announce the impact degree of its community or village, the compensation standards, resettlement measures, channels for complaints and appeals and so on; (3) Before July 30th, 2016, put the Resettlement Plan of this project in Chaohu Urban Construction Investment Co., Ltd. or other public places, and all the affected people can consult it. The affecting situation of each affected family, applicable resettlement policy and compensation standard of this project, project implementation progress, process of solving the dissatisfaction and complaints of the affected people and so on will be listed in detail in the Resettlement Information Brochure. The Resettlement Information Brochure will be distributed to the affected people before the official launch of the project

61 8 Mechanism of Grievance and appeals

Resettlement is a complex work. The land requisition and resettlement involve many aspects and are related to the vital interests of the affected persons ,Therefore, in the detailed implementation process, it is inevitable that the affected people have some opinions, dissatisfaction or complaints on the resettlement and compensation. In order to guarantee that the complaints of the affected people can be solved quickly and satisfactorily, Chaohu Urban Construction Investment Co., Ltd. will build a procedure of collecting and treating the dissatisfaction and complaints that is highly transparency, simple and practicable, so that the dissatisfaction of the public can be solved objectively, fairly and effectively, and the resettlement work can go smoothly. 8.1 Ways of collecting dissatisfaction and complaints (1) Report by the community, village committee, or the project office, covering the public complaints, progress, work measures, and existing problems. (2) The construction unit reports the builder's diaries to the owner every day, and the situations where the mass affect the construction are mainly reflected by the construction unit. (3) Related information reflected by the external monitoring organizations. (4) Letters and visits of the affected people. (5) Situation reflected by the owner unit’s organization—the work station. (6) Related thematic issues reflected in the work inspections of the departments of audit, discipline inspection and so on. (7) Expenditure of requisition and resettlement fees collected from the detailed statement of fund appropriation of the deposit bank. (8) Internal monitoring special investigation. 8.2 Process of complaining and appealing Stage 1: The affected objects raise the oral or written dissatisfaction to the village committee or the project office. For the oral dissatisfaction, the village committee and the project office must make a written record, and the village committee or the project office shall give explicit reply within 2 weeks. If the issue involved is relatively large and it is necessary to ask the superior resettlement management department for instructions, try to receive the reply of suggestions of the superior resettlement management department

62 within 2 weeks. Stage 2: If the suggestions replied in the stage 1 fail to satisfy the complainant, the complainant can appeal to the project office within one month upon receiving the decision of stage 1, and the project office shall make the decision of settlement of the appeal within 3 weeks. Stage 3: If the affected object still expresses dissatisfaction after receiving the reply of the project office, they can lodge an appeal to the management office of Chaohu Urban Construction Investment Co., Ltd. within one month upon receiving the reply of stage 2, and the management office shall give its reply within 4 weeks. 8.3 Principles of handling complaints For the complaints raised by the public, the project office must conduct field researches, ask for the public opinions, conduct repeated consultations patiently and give the handling suggestions objectively and fairly according to the principles and standards specified in the national laws and regulations as well as the resettlement plan. For the problems and complaints the project office is incapable to deal with, the project office must reflect the situations to the superior requisition and resettlement department in time, and assist the superior department in the investigation work. If the decision-making organization of the previous stage fails to give the reply of the above-mentioned problems within the specified date, the complainant has the right to appeal. In the resettlement process, women can have their own complaints and appeals, therefore the project office plan to hire at least 1 female working personnel to deal with the complaints and appeals of the women. The local government and the non-governmental organizations such as the civil affairs bureau and the women's federation will supervise the resettlement activities to protect the rights and interests of the affected people especially the affected women. 8.4 Contents and modes for replying complaints 8.4.1 Contents for replying complaints (1) Brief description of the dissatisfaction of the complainant. (2) Investigation result of the fact. (3) Related national regulations, the principles and standards of the resettlement plan.

63 (4) Handling suggestions and detailed basis. (5) The complainant also has the right to appeal to the superior resettlement department 8.4.2 Modes for replying complaints (1) For the individual phenomenon of complaint, deliver the reply in written form to the complainant directly. (2) For the problems complained repeatedly, notify the village and town of the problem by convening the village meeting or issuing a document. No matter what kind of method of reply is adopted, the reply materials must be delivered to the department the complainant belongs. 8.5 Record and tracking feedback of complaints and appeals During the implementation period of the resettlement plan, the requisition and resettlement department shall register and manage the materials of complaints and settlement results well, and report the materials to the resettlement department of Chaohu Urban Construction Investment Co., Ltd. in written form once every month. The resettlement department of Chaohu Urban Construction Investment Co., Ltd. will conduct regular inspections on the registration of the complaint settlement. In order to record the handling situations of the complaints and related problems of the affected people completely, the resettlement department of Chaohu Urban Construction Investment Co., Ltd. formulates the registry form of handling the complaints and appeals of the affected people. SeeTable 8-1 for the table form. Registration form of complaints and appeals of resettlement Table 8-1 Receiving Time: Location: unit: Complainant Content of Solution required Proposed Actual name complaint solution settlement situation

Complainant Noter (name) (signature) Note: 1.the recorder shall record the contents and requirement of the statement of the complainant faithfully; 2. In the complaint process, the complainant shall not have any interference and obstruction; 3. The complainant shall be replied with the planned solution within the time limit. The main contents of this chapter will be announced in public to the project-affected people, and will be delivered to every affected-household in the form of publicity materials before the implementation of resettlement.

64 8.6 Contact information for complaining and appealing The resettlement implementing and executing offices and so on of the project arrange the principal responsible person in charge of the reception of the affected people and the collection of their dissatisfaction and complaints. See table 8-2 for the names of the responsible people, office addresses and contact phone numbers. Information of institutions and personnel receiving the complaints and appeals of the affected people Table 8-2 Office Contact Address Phone number person the Development and Floor No.3, Main Building, Reform Commission of Li Xianrui Administrative Center, No.1 of Chaohu City Laoshan Road, Chaohu City Inside the office building of Chaohu Urban Xiang Agricultural Bank of China, Construction 18605650124 Yunsheng Jiankang Road, Chaohu City, Investment Co., Ltd. Anhui Province, China Project resettlement Wang Housing and Urban-Rural 18005657519 implementation Linghua Development Bureau of Chaohu organization City, Jiankang Road, Chaohu City Yafu Street in Chaohu Li Kanghua In front of Wolong Villa, 13805658018 City Ancheng Road, Chaohu City Yicheng Community on Liu Shuguang Yicheng Community, Changjiang Yafu Street Road, Chaohu City 13905659186

Alternatively, he/she may file an action in a civil court in accordance with the Civil Procedure Law of the PRC at any time irrespective of the use and progress of the GRM process. At each stage, when the responsible agencies receive the appeal, it will be also copied to the Anhui Province PMO for discussion, so that the grievance can be redressed at lower levels. All grievances (and their resolution) at each stage will be recorded and kept. The Anhui Province PMO will report the grievances and their resolution to ADB in semiannual monitoring reports. Also, the aggrieved person(s) may submit a complaint to the ADB’s Project Team to try to resolve the problem. If good faith efforts are still unsuccessful, they may submit their complaint to ADB's Accountability Mechanism (2012)1 to report behaviors which are not in compliance with ADB's policies and result in harm to APs. Displaced person(s) may file an appeal on any aspect of resettlement, including compensation rates, etc. The above means of appeal, and the names, locations, persons

1 http://www.adb.org/site/accountability-mechanism/main

65 responsible and telephone numbers of the appeal accepting agencies will be communicated to the displaced person(s) at a meeting, through an announcement or the RIB, so that the displaced person(s) know their right of appeal. Mass media will be used to strengthen publicity and reportage, and comments and suggestions on resettlement from all parties concerned will be compiled into messages for disposition by the resettlement organization at all levels. All agencies will accept grievances and appeals from the displaced person(s) for free, and costs so reasonably incurred will be disbursed from the contingency costs. During the whole construction period of the Project, these appeal procedures will remain effective to ensure that the displaced person(s) can use them to address relevant issues.

66 9 Resettlement organizations

9.1 Organization structuring In order to do resettlement work of the Water Environment Improvement Engineering of the City Proper of Chaohu City(medium adjustment) well, governments of all levels in Chaohu City first strengthens the building and capability of the organizations to guarantee that the preparation of the project and the resettlement work can go smoothly. Since March 2015, the related organizations for the resettlement work of the Water Environment Improvement Engineering of the City Proper of Chaohu City (medium adjustment) are set up with the duty of each organization determined. The main organizations of this project relating to the resettlement activities are: (1) The project implementation office of the water environment improvement of Anhui Chao Lake Basin (2)The office of the working group of the people’s government of Chaohu City of the project loaned by Asia Development Bank (the Development and Reform Commission of Chaohu City) (3) Chaohu Urban Construction Investment Co., Ltd. (4) Land and Resources Bureau of Chaohu City (5) Project resettlement implementing organization (the housing and urban-rural construction bureau of Chaohu City) (6)Yafu Street in Chaohu City (7)Yafu Street, Yicheng Community in Chaohu City (8) External monitoring organization for resettlement 9.2 Responsibilities of organizations at all levels 9.2.1 The project implementation office of the water environment improvement of Anhui Chao Lake Basin Responsible for making decisions and leading the construction of this project. 9.2.2 The office of the working group of the people’s government of Chaohu City of the project loaned by Asia Development Bank(the Development and Reform Commission of Chaohu City) (1)Responsible for the communication with Asia Development Bank, the working groups of the people’s government of Chaohu City and Anhui Province of the project loaned by Asia Development Bank and relevant functional departments.

67 (2) Responsible for obtaining the reply and approval of the various plans relating to the resettlement of the project from the state, Anhui Province and relative departments of Chaohu City. (3) Responsible for the inspection and guidance of the project implementation unit. 9.2.3 Chaohu Urban Construction Investment Co., Ltd. (1) Entrust the resettlement consultative organization to conduct the first-phase preparation work of resettlement. (2) Responsible for the coordination work between the consultation company and other organizations during the project preparation period. (3) Coordinate the implementation progresses of the project construction and resettlement plan. (4) Report the resettlement fund plan to Chaohu Finance, supervise and urge the payment of the fund. (5) Coordinate the work of the resettlement-related organizations. (6) Responsible for raising the project resettlement fund. (7) Responsible for the appropriation of the resettlement. (8) Responsible for the implementation work of resettlement of the project in detail. (9) Responsible for tracking, supervising and urging the appropriation of the resettlement fund of this project in place. (10) Responsible for the complaints and appeals of the immigrants during the resettlement process. (11) Responsible for cooperate in the work of the external monitoring organization of resettlement. (12) Responsible for the collection and neatening of all kinds of materials needed for the internal monitoring report of this project. (13) Responsible for the management of the resettlement files of this project. (14) Train the responsible person of the resettlement of the project. (15) Responsible for applying to the related departments for the land use planning permission and the land use construction permission. 9.2.4 Land and Resources Bureau of Chaohu City (1) Coordinate with the related departments to formulate the various policies of the Resettlement Plan. (2) Responsible for the land-requisition affairs comprehensively. (Including the social

68 insurance of the land-lost farmers) 9.2.5 Project resettlement executive organization (the housing and urban-rural construction bureau of Chaohu City) (1) Implement the first-phase preparation work together with the resettlement consultative organization. (2) Responsible for formulating the detailed implementation policies of the resettlement plan in detail. (3) Report the progress of the resettlement work to the leading group office of the project loaned by Asian Development Bank of the People’s Government of Chaohu City. (4) Report the communication and coordination with other departments in the process of the resettlement work to the leading group office of the project loaned by Asian Development Bank of the People’s Government of Chaohu City. (5) Report the resettlement fund plan to the leading group office of the project loaned by Asian Development Bank of the People’s Government of Chaohu City, supervise and urge the payment of the fund. (6) Responsible for the management of the archives of materials of resettlement. (7) Responsible for the internal monitoring work of resettlement. (8) Responsible for the reception of the Asian Development Bank resettlement experts in the preparation and implementation stages. (9) Deal with the complaints and appeals of the immigrants during the resettlement process. (10) Responsible for the complaints and appeals of the affected persons during the resettlement process. mu(11)Responsible for the implementation of the employment measures for the affected people. 9.2.6 Yafu Street in Chaohu City (1) Participate in the investigation of physical quantity. (2) Participate in the calculation of the compensation fund of the affected households. (3) Responsible for the distribution of the compensation fund of the affected people. (4) Responsible for dealing with the complaints and appeals of the affected persons in the resettlement process. (5) Responsible for the training of employment skills for the affected people. (6)Responsible for the implementation of the employment measures of the affected

69 people. 9.2.7 Yicheng Community on Yafu Street (1)Participate in the physical quantity survey. (2)Participate in the calculation of the compensation fund of the affected households. (3) Supervise and distribute the compensation fund of the affected people. (4) Responsible for dealing with the complaints and appeals of the affected persons in the resettlement process. (5)Participate in the training of the employment skills for the affected personnel. (6)Participate in the implementation of the employment measures for the affected people. 9.2.8 External monitoring organization In the process of resettlement planning and implementing, responsible for the external monitoring of the resettlement work, for providing the project office and Asian Development Bank with the resettlement progress report and monitoring report. The responsibilities of this organization are explained in detail in the chapter of external monitoring. 9.3 Personnel and equipment of the resettlement organizations at all levels The project resettlement office now has 5 working staffs that have strong organization and coordination skills. The project resettlement organizations also consist of workers with higher quality and rich working experiences who are completely competent for the requirements of the resettlement work. See Table 9—1 for the personnel and equipment of the resettlement organizations at all levels.

Table of staff of resettlement organizations at all levels Table 9-1 Contact Address Phone number Resettlement Total person and organization number qualification Inside the office building of Chaohu Urban Xiang Agricultural Bank of China, Construction Yunsheng 2 Jiankang Road, Chaohu 18605650124 Investment Co., Ltd. Civil servant City, Anhui Province, China Housing and Urban-Rural Project resettlement Wang Development Bureau of implementation 2 18005657519 Linghua Chaohu City, Jiankang organization Road, Chaohu City Yafu Street in Chaohu In front of Wolong Villa, Li Kanghua 3 13805658018 City Ancheng Road, Chaohu

70 City

Yafu Street in Chaohu Yicheng Community, City Liu Shuguang 4 Changjiang Road, Chaohu 13905659186 Yicheng Community City

In addition, the resettlement organizations at all levels will be equipped with a certain amount of computers, cameras, and offices. 9.4 Measures for strengthening the institutional capacity In order to better implement the Resettlement Plan, ensure the benefits of the project-affected people, and meet the general plan of the project schedule, The working group office of the project loaned by Asian Development Bank of the People’s Government of Chaohu City will take the following measures to strengthen the ability of the organization to improve the efficiency: (1) Leadership responsibility system: form the powerful leading group consists of related department heads led by the county leaders. (2) High quality-personnel equipped: the working personnel of the resettlement organizations at all levels are required to possess strong overall viewpoint, policy level and specialty capability, especially the experience in mass work. (3)Clear responsibility: determine the responsibilities of the resettlement offices at all levels according to the Asian Development Bank requirements and the related national laws and regulations. (4) Training of the resettlement personnel: conduct non-scheduled training on resettlement policies, information management and so on according to the needs of the resettlement work. (5) Give play to the supervision by public opinions: disclose all the settlement materials to the public and society to be supervised by public opinions. (6) Convene the non-scheduled resettlement briefings and distribute them to the village town in the form of brief report. (7) The project office equips the resettlement organizations at all levels with the necessary transportation tools and related office equipment to meet the work requirements. 9.5 Organization training plan In order to guarantee that the resettlement implementation work can go smoothly, the affected persons and migrant workers must be trained, and the training plan shall be formulated. The training plan is organized uniformly by the Anhui Province Asian

71 Development Bank office and Chaohu Construction Investment Co., Ltd. Set up the personnel training and human resources development systems of the resettlement organizations at all levels of the municipality, county, and village (town). It is planned to adopt various forms for training, for example, hold specialist seminars, each unit sets the technical training classes, visit and learn from other resettlement projects, and conduct on-site training of technical and management personnel. See Table 9-2 for the training plan. The training contents include: ——Asian Development Bank policies and principles for resettlement ——Difference between Asian Development Bank policies and Chinese policies ——Design and implementation management of the resettlement plan ——Matters needing attention during the resettlement implementation process ——monitoring and evaluation of resettlement

Table 9-2 The training schedule of resettlement implementation

Funding Locati Training arrangeme Time Training objects Training contents on mode nts(10000 Yuan) December, Centralized Working staff for Training of all resettlement Hefei 0.5 2015 lectures resettlement work works Learn, Site visit of the Asian Domes Key staff of the March,2016 observe and Development Bank resettlement 2.0 tic resettlement office emulate implementation projects Conduct communication and Communic Working staff for discussion on the experience June, 2016 Hefei ation 0.5 resettlement work and existing problems in the lectures resettlement

Besides, this project also takes the following measures to improve the capabilities of the resettlement organizations: (1) Determine the responsibilities and scope of duties of the resettlement organizations at all levels; strengthen supervision and management; (2) Gradually strengthen the forces of the resettlement organizations at all levels, especially the professional technical forces. All kinds of personnel must possess certain professional levels and management quality. Strengthen their technical equipment, such as the computer, monitoring device, transportation tools and so on; (3) Select the working staff strictly. Strengthen training the professional skills of the management personnel and technical personnel of the resettlement organizations at all

72 levels to improve their work abilities and management levels; (4) arrange the female leaders properly to give play of their role in the resettlement implementation process; (5) Set up the database and strengthen information feedback to unblock the information channels from top to down and down to top. The resettlement leader group decides and solves the significant problems; (6) strengthen the reporting system and internal monitoring, and solve the problems found in time; (7) Set up the external monitoring and evaluation mechanism and the early warning system.

73 10 Budget of resettlement

10.1 Composition of the resettlement fund The resettlement fees of this project mainly include five parts, which are: the land compensation expenses, compensation expenses for ground attachments and special recovery reconstruction, management fees, other related fees and budget reserve. 10.1.1 Land compensation expenses Calculated according to the unified annual output value and compensation standard for land requisition in Anhui Province (WZ (2004) No.24) and Notice of the People's Government of Anhui Province on Adjusting the Compensation Standard for Land Requisition in Anhui Province (March 10, 2015). 10.1.2 Compensation expenses for ground attachments and special recovery reconstruction Calculate the compensation for the things immovably attached to the collective land and the communal facilities according to the actual quantity of survey and the compensation standard. 10.1.3 Management fees Calculate the management fees according to 4% of the land requisition fees. It is mainly used for the rewards for the land requisition progress of the project implementation unit, information collection and announcement, early-stage preparation, office occupancy purchasing, rent of temporary office occupancy, personnel salaries, welfare and social security, purchase and use of transportation tools, vehicle maintenance, communication and official work, daily management and so on. 10.1.4 Other related expenses Mainly refer to some other expenses happen in the preparation and implementation process of resettlement, including the fees for survey, design, and scientific research, fees for monitoring and evaluation, fees for technical training, fees for land making, and fees for the compensated use of the newly-added construction land. 10.1.5 Budget reserve Calculate the budget reserve fee according to 10% of the basic fees. 10.2 Capital budget of resettlement

74 The resettlement fees of this project are CNY 0.7867 million Yuanin total. In the total cost of resettlement, the fees for requisitioning the rural collective land is CNY0.21978 millionYuan, accounting for 27.94% of the total cost; the fees for requisitioning the enterprise-ownership land are CNY 0.288 millionYuan, accounting for 36.61% of the total cost; the compensation fees for the infrastructure and ground attachments are CNY 0.0080 millionYuan, accounting for 1.00% of the total cost; the various kinds of taxes and management fees are total CNY 0.1994 millionYuan, accounting for 25.35% of the total cost. the Unexpected expenses is CNY 0.007152 million , accounting for 9.10% of the total cost, SeeTable 10-1 for the estimation of the resettlement fees.

75 Resettlement cost budget Table 10—1

Serial number Item (10000Yuan) Proportion (%) Remarks 1 Collective land 21.978 27.94 Unified annual output value: 1850Yuan/mu, 1.1 Land compensation fees 6.793 Compensation multiple: 7 times, land requisition: 5.2455mu Unified annual output value: 1850Yuan/mu, Resettlement assistance 1.2 14.556 Compensation multiple: allowance 15 times, land requisition: 5.2455mu Compensation fee for green Compensation fee for 1.3 0.629 crops:1200Yuan/mu, green crops Land requisition: 5.2455mu 160 thousand Yuan/mu, 2 Ground attachments 28.8 36.61 requisition 1.8mu See table5—5 and table 3—7 for the 3 Collective land 0.80 1.00 compensation standard and compensation quantity

Total of 1～3 51.578 items WCZ (2001) No.1061,standard Fees for the reclamation of 4 3.147 9Yuan/m2, land the cultivated land requisitioned is 5.2455mu Management fee for land 4% of the total land 5 2.063 acquisition requisition fees Fees of survey design 3% of the total land 6 1.547 and research requisition fees Expenditure on 5% of the total land 7 2.579 administration requisition fees 3% of the total land 8 Technical training fee 1.547 requisition fees External monitoring and 4% of the total land 9 2.063 evaluation fee requisition fees Special security fee for the GFB(2006) No.29, 10 6.994 land-requisitioned farmers 20Yuan/m2 Total of 4～10 19.940 25.35 items Calculated according to 11 Unexpected expenses 7.152 9.10 10% of the total basic fees Total cost 78.670 100.00

10.3 Appropriation, management and monitoring of the resettlement fund 10.3.1 Fund appropriation of resettlement Implement the appropriation of the resettlement fund of this project according to the following principles:

76 The fees relating land requisition are all calculated into the general project estimate. Chaohu Urban Construction Investment Co., Ltd. Conducts the appropriation according to the compensation standard, and the compensation fund shall be paid directly to the related functional departments of the district government by Chaohu Urban Construction Investment Co., Ltd., such as the sub-district office and the village committee; the prefecture government will make up the insufficient part; the various kinds of compensation fees paid to the personal households shall be distributed to the affected households by in the form of special account. The land compensation fees must be paid in full before the land is requisitioned. 10.3.2 Management and monitoring of the resettlement fund The expenditure of the resettlement fund must be implemented according to the policies in the Resettlement Plan and the national regulations relating to land requisition, and it cannot be lower or less than the compensation standard and scope determined in the Resettlement Plan. The project office reports the monthly construction progress plan to Chaohu Urban Construction Investment Co., Ltd. every month, and is responsible for checking the payment statement approved and signed by the main responsible person of the project resettlement executive organization, and submitting the statement to Chaohu Urban Construction Investment Co., Ltd. The application for the appropriation of the fund, land compensation fees, fees for attachments and so on shall be checked and approved by the project resettlement executive organization. Chaohu Urban Construction Investment Co., Ltd. will hire the specialized consultancy to conduct internal inspection of the use conditions of the resettlement fund of the project office. The municipal financial and auditing departments have the right to monitor and audit the use of the special fund. In the external monitoring process, the resettlement external monitoring organization shall conduct special tracking monitoring of the compensation to the affected families and the fund implementation situations.

77 11 Project implementation plan

11.1 Implementing principles of resettlement

According to the schedule of the project construction progress, the project construction will be started from December, 2016 and completed by April , 2018. In order that the resettlement progress plan can connect to the project construction schedule, the land requisition plan will start from September 2016 and end in October 2016.The basic principles for the implementation of resettlement are:

 The land requisition work shall be completed before starting the project construction. The specific starting date shall be determined according to the needs of land requisition and resettlement work.

 In the resettlement process, the affected people shall have the opportunity to take part in the project. At the project preparation stage, the scope of land requisition shall be disclosed, the resettlement brochures shall be distributed and the related work of public participation shall be conducted well. All kinds of the compensation funds shall be paid directly to the related functional departments of the district government by Chaohu Urban Construction Investment Co., Ltd., such as the sub-district office and the community; the various kinds of compensation fees paid to the personal households shall be distributed to the affected households by in the form of special account.

11.2 Time table for the implementation of the resettlement project

According to the implementation progress of the Water Environment Improvement Engineering of the City Proper of Chaohu City (medium adjustment), study out the general schedule plan of the resettlement of this project. The concrete implementation can be adjusted moderately because of the deviation of the overall progress of the project. See 11-1 for the time table of the implementation of resettlement in detail.

78 Schedule for settlement activities Table 11- 1 Serial Resettlement task Object Implementation organization Date Remarks number 1 Information disclosure Project office, Chaohu Urban Affected 1.1 Information booklet Construction Investment Co., 2016.7 groups Ltd. Post the resettlement plan on the Asian Implementation organization, 1.2 2016.10 Development Bank Project office, ADB website 2 Resettlement Plan and budget Resettlement plan, and budget Anhui Province Government, 2.1 2016.10 approved(compensati Project office on standard) villages Village-level income affected by 2.2 Village committee 2016.8 recovery plan land requisition Update the Implementation organization, If there is 2.3 resettlement plan / 2017.3 Project office any update after detailed design 3 Detailed measurement investigation villages Measure the affected by Chaohu Urban Construction 3.1 requisitioned land in 2016.5 land Investment Co., Ltd. detail requisition 4 Compensation agreement villages Village-level land affected by 4.1 compensation Land Bureau 2016.8 land agreement requisition 5 Implementation of the livelihood restoration measures The land Villages compensation fees affected by 5.1 sub-district office ,community 2016.8 distributed to the land households requisition Villages Implementation of affected by 5.2 village-level income community 2016.7 land recovery plan requisition Income restoration 7 sub-district office, 5.3 suggestions, starting households community, labor and social 2016.6—2016.7 business and work affected security bureau 17 Training plan Labor and social security 5.4 households 2016.5—2016.9 implementation bureau affected Determine and hire About 50 Project office, labor force, 5.5 the project-labor-use people 2016.9—2017.3 project contractor families affected 6 Building of the capabilities of the resettlement organization Chaohu Urban 6.1 Construction 5 people ADB 2015.3 Investment Co., Ltd. Training the leaders 6.2 of the village, town, 100 people Project office 2015.8—2016.3 and county 7 Monitoring and evaluation 7.1 Basal investigation 1 report monitoring organization 2015.8—10 Build internal testing Project office, 7.2 / March 30th, 2015 institutions Implementation organization

79 Serial Resettlement task Object Implementation organization Date Remarks number Start on Sign the external 7.3 1 Project office October 30th, testing institutions 2016 Quarterly report(accor Internal inspection Project office, Start on March 7.4 ding to the report Implementation organization 30th, 2015 requirement s) The first November , 2016 External monitoring Semiannual report 7.5 Monitoring organization report report The second April , 2018 report The first December, 2017 External evaluation Annual report 7.6 Monitoring organization report report The second December,2018 report Implementation organization, 7.7 Post-evaluation report 1 report 2018.12 Project office 8 Consultation paper Implementation organization Undergoing 9 Complaint files Implementation organization Undergoing 10 Compensation for land requisition and payment of the resettlement fund - Pay the Initial 10.1 implementation July, 2016 capital organization Most part of - Paid to the the 10.2 Implementation organization July, 2016 community compensatio The rest pay n fund the social Most part of security. - Paid to the the Implementation organization, 10.3 August , 2016 household compensatio village committee n fund 11 The civil construction starts Chaohu Urban Construction December, 11.1 Project Investment Co., Ltd. 2016

80 12 Monitoring and evaluation

12.1 Internal monitoring

12.1.1 Purposes and objectives of internal monitoring The internal monitoring is the continuous internal monitoring of the implementation of the Resettlement Action Plan conducted by the owner and the resettlement implementation organization depending on the top-down management system, with the aim of grasping the progress of resettlement, finding and solving the problems comprehensively and accurately in time, providing the decision basis for implementing the resettlement work smoothly. The purpose of internal monitoring is to regulate and guide the resettlement internal monitoring work conducted by the project loaned by Asian Development Bank owner, the resettlement implementation organization and other organizations relating to the resettlement activities, to ensure that the land requisition work can be implemented strictly according to the Resettlement Action Plan, and the monitoring and evaluation of resettlement activities can proceed orderly, normatively and efficiently, thus the relative parties can understand the situations of the implementation of resettlement in time, find and rectify the existing problems in the resettlement implementation. The principles for internal monitoring: update the Resettlement Action Plan dynamically, set up the resettlement database and update it in time, keep the accuracy of the monitoring results; evaluate the implementation situations of the Resettlement Action Plan scientifically, objectively and fairly; report to the project owner and Asian Development Bank to let them know the project progress and make scientific decisions in time. Role of internal monitoring: the internal monitoring is managed by the internal project, and its important roles are to grasp the situations of the resettlement implementation activities, collect, analyze and share the data and information of the progress, fund and

81 quality of the relative resettlement activities through setting up and using the resettlement information management system, find the existing or potential problems, analyze the reasons, and put forward the measures to solve the problems. It is recommended that the project owner and the resettlement implementation organization conduct the internal monitoring of the resettlement activities, and the owner submits the internal monitoring report to Asian Development Bank regularly. 12.1.2 Internal monitoring implementation program The internal monitoring work can be divided into two stages: the preparation stage and the implementation stage. The preparation stage starts from the project identification in the project loaned by Asian Development Bank cycle, and ends after the project preparation stage, project pre-evaluation stage, project evaluation stage and finally the project approval stage. The implementation phase starts from the implementation of resettlement until the realization of the objectives of the resettlement. (1) Preparation stage of internal monitoring The project owner and the local government shall establish the resettlement affair organization at the early stage of project preparation. The project owner shall set up an organization specializing in the resettlement affairs and arrange the capable working staff to deal with the settlement work. This can guarantee the providing of the complete and objective information and materials and will be helpful for the participation of organizations in other industries. Set about the arrangement of the resettlement internal monitoring and evaluation work in the project preparation period. The preparation work of the project owner includes: ——Organize the project owner and the working staff of the resettlement implementation organization to conduct the training on Asian Development Bank resettlement policies and experiences, national resettlement establishment, resettlement implementation, monitoring and evaluation of resettlement and so on; ——Employ the professional institutes and the resettlement action plan personnel to conduct the compiling of the Resettlement Action Plan; organize the social economic investigation; compile the Resettlement Action Plan with the assistance of the professional

82 organizations and personnel; ——Set up the resettlement management information system with the assistance of professional organizations and personnel; The preparation work for the resettlement implementation organization includes: ——establish or improve the resettlement implementation organizations at all levels, and equip them with necessary working staff; ——organize the training to the working staff of the resettlement implementation organizations at all levels; conduct the social economic investigation and the compilation of the Resettlement Action Plan together with the owner and the professional agencies it entrusts; ——establish the resettlement implementation management information system. (2) Implementation stage of internal monitoring At the implementing stage, the project office shall provide the sample households sampled by the monitoring organization, the implementation information of the sample unit, and the current active records to the resettlement department, in order to guarantee the tracking and monitoring of the settlement activities. The resettlement department will conduct regular inspection to the town (street) and village (community) levels to check the progress of reporting the materials. At the implementation stage of internal monitoring, the project owner shall: ——be responsible for the internal monitoring of the resettlement activities according to the Resettlement Action Plan; ——provide a copy of internal monitoring report in detail to Asian Development Bank semiannually; ——update the statistical data of resettlement implementation and improve the resettlement management information system. 12.1.3 Internal monitoring contents The internal monitoring will cover the following contents: (1) Organizational Structure: the establishment and division of work of the resettlement implementation organization and its related organizations, personnel

83 allocation in the resettlement organization, and the capability building of the resettlement organization; (2) Resettlement policy and the compensation standard: the formulation and implementation of the resettlement policies; and the actual implementation situations of the compensation standards for all kinds of impacts and losses (permanent requisitioned land, temporary land occupation). Whether implementing according to the standard in the Resettlement Action Plan or not shall be specially noted. If there’s any change, it is needed to explain the reasons; (3) Implementation progress of land requisition and resettlement activities: general schedule plan and annual plan, resettlement agencies and personnel equipment progress, implementation progress of land requisition of the project, construction progress of the public facilities, progress of restoration, movement and construction of the special facilities, and progress of the resettlement activities. See Table 12-1 for the form of the report of the progress of internal monitoring of land requisition and resettlement; Table 12-1 Progress of Land Requisition Unit: report date: / / (year/month/day)

Accumulative Settlement Amount of Completed Proportion of the Unit total completed activity plan amount total amount (%) amount Permanent mu requisitioned land Land 10000Yua compensation n

Preparer: responsible person: stamp: (4) Resettlement budget and implementation situations: amount and time of the in-place payment of the resettlement fun level by level, use and management of the resettlement fund of the resettlement implementation organizations at all levels, amount and time when the compensation fees are paid to the affected property owners, land

84 owners(village, group and so on), and the users, the use and management of the compensation fund for the village collective land, as well as the supervision and audit of the capital use. See Table 12-2 for the format of the internal monitoring report of the fund utilizing progress; Table12-2 Sample Table of Fund Use progress Town administrative village natural village report date: / / (Year/month/day)

Compensation Proportion of Accumulative amount the obtained compensation Brief Brief fund obtained fund among Affected unit Quantity(unit) amount description amount(Yuan) during the the total obtained reporting compensation (Yuan) period (Yuan) funds (%) Village Public facilities

Preparer: responsible person: stamp: (5) The main methods and population of the resettlement and people, production and employment; (6) Channel, procedures and responsible organizations for complaints, appeals, consultations, information disclosure, and external monitoring of complaints and appeals; main items and processing conditions of complaints and appeals, main activities of public participation and consultation, contents and forms, implementation effects of public participation and consultation, resettlement information handbook and information disclosure, external monitoring organization, activities and effects; (7) Treatment of the relative issues in the memorandum of the Asian Development Bank inspectorate; (8) Still existing problems and the solutions. 12.1.4 Internal monitoring methods As the monitoring activity of the resettlement implementation process from top to

85 down in the internal resettlement system, the internal monitoring requires to build the normative, unblocked and bottom-up resettlement implementation information management system between the project owners relating to the implementation work and the resettlement implementation organizations of all levels to track and reflect the progress of the resettlement implementation of each district. The requisition and resettlement departments of all levels adopt the information management system to give the bottom-up report of the progress of resettlement implementation, fund, effects and other information, and conduct treatment and analysis. This project will adopt the following several methods to implement internal monitoring based on the project implementation conditions: (1) Normalized statistical statement system The project owner shall formulate the unified statement according to the needs of the resettlement implementation. The statement shall reflect the progress of the appropriation of the resettlement fund and the performance of the physical quantity of requisition and resettlement. The statement is reported on a regular monthly basis, and is usually reported from the bottom up at the appropriation time at the end of a month. Grasp the work progress according to the appropriation situations. (2) Regular or irregular situation reflection Between the settlement organization and the external monitoring organization, adopt various forms to exchange the problems and related situations happen in the implementation work of resettlement and raise the handling suggestions. (3) Regular communication meetings At the beginning of each month, the leading group office of the project loaned by Asian Development Bank will convene the coordination meeting on requisition and resettlement attended by the project office personnel. The meeting is mainly about situation report where the project implementation progress and existing problems will be reflected, the working experience will be exchanged and the solutions to problems will be studied. (4) Inspection

86 The leading group office of the project will conduct routine inspection and non-routine special inspection, carry out the in-depth field research, deal with the problems of requisition and resettlement on site, and check the working progress and the implementation situation of the resettlement policies. (5) Conduct information exchange with the external monitoring organization The project owner, local implementation organization and the external monitoring organization shall keep frequent contact and information exchange to take the findings and evaluation opinions of the external monitoring and evaluation organization as the reference basis for the internal monitoring. (6) Resettlement information management system investigation The leading group office of the project will build the resettlement information management system based on the land requisition materials, keep updating and improving it according to the actual situations in the implementation process, and guarantee the dynamic monitoring of the process of resettlement implementation. The project owner adopts the method combining questionnaire survey and home visiting to carry out investigation and inspect the implementation of the resettlement work. Adopt the sampling method for the investigation of the family households. Sample a certain number of family households or collective units, investigate the resettlement situations in the report form, and reflect the implementation degree of the compensation fund to see whether the resettlement work is implemented strictly according to the resettlement action plan. The leading group office of the project will conduct the first investigation after the affected objects receive the first sum of compensation fund. After the performance of the first investigation, the leading group office of the project will take the improvement measures according to the investigation results and the problems reflected through the complaining channel, and continue to carry out tracking investigation on the performance of the improvement measures. The tracking investigation includes tracking the resettlement situations of the affected people and the solving results of the complaints and problems reflected, and collecting the opinions and suggestions on public consultation and other aspects.

87 12.1.5 Organization and personnel placement of internal monitoring See Table 12-3 for the staff involved in the monitoring implementation organization. Table 12—3 Staff of the internal monitoring implementation organization Resettlement organizations Regular staff Staff at the peak period The working group of the project loaned by Asian 2 3 Development Bank of the people’s government of Chaohu City The working group office of the project loaned by 2 3 Asian Development Bank of the people’s government of Chaohu City Chaohu Urban Construction Investment Co., Ltd. 3 4 Chaohu City Land and Resources Bureau 2 3 Project resettlement executive 5 10 organization(Housing Construction Bureau) Chaohu City Yafu Sub-district Office 2 3 Yicheng Community of Chaohu City Yafu 2 3 Sub-district Office 12.1.6 Responsibilities of the internal monitoring organization (1) Set up the project office, train the working personnel, and investigate the project-affected area. (2) Appoint the external monitoring organization. (3) First founded, guide the investigation together with the investigation organization. (4) Train the working person of the project office. (5) Supervise and inspect the consistency between the sub-project resettlement policies and the project resettlement action plan. (6) Supervise the information from the affected objects and prepare the settlement brochure. For the problems found through the internal monitoring inspection, the resettlement department will formulate the improvement measures in time. 12.1.7 Period and report of internal monitoring Internal monitoring is a successive process, and the comprehensive monitoring activity shall be carried out at least once every quarter. During the project preparation period, the internal monitoring organization will combine Asian Development Bank to check and compile the regular or irregular internal working

88 report. The formats vary with different projects and stages according to the requirements of Asian Development Bank. After the beginning of the implementation, the projects with relatively large impact need the brief weekly report and monthly report, as well as the detailed half annual report and annual report. Conduct subjective reports according to the needs of project management. After the end of the project implementation, give a summary report. The implementation organizations at all levels report the internal monitoring reports to the people's government at the same level, the higher resettlement implementation organization and the project owner. Submit a copy of internal monitoring report to Asian Development Bank semiannually.

12.2 External monitoring

12.2.1 Objectives of external monitoring The external monitoring and evaluation (M&E) are provided by the organization independent from the government department on the resettlement work. The purpose is to inspect the implementation activities of the resettlement action plan, monitor and evaluate the land requisition and whether the resettlement purposes can be realized, present evaluation opinions and suggestion, take remedial measure and take tracking actions timely to ensure the implementation effects of the resettlement work with a broad and long-term view. The external monitoring will track the land requisition and resettlement activities to monitor and evaluate whether the resettlement: (1) Follow the related national laws and regulations on the resettlement work; (2) follow the related policies of Asian Development Bank on the involuntary resettlement; (3) Make the living standard of the affected people higher than or at least the same as the standard before resettlement. 12.2.2 External monitoring organizations and monitoring personnel The working group office of the project of the people’s government of Chaohu City will choose an experienced resettlement monitoring organization to undertake the independent monitoring of the resettlement of this project. The working personnel of the external monitoring organization shall have the following qualities: (1) The personnel engaging in the external monitoring shall have participated in the

89 similar work with rich experience in the social economic investigation, understand Asian Development Bank’s policy requirements on involuntary resettlement, and grasp the relative national and local policies and laws in the aspect of resettlement. (2) Have the ability to work on the investigation and study of society independently and good communication quality. Be able to bear hardships and stand hard work. (3) A certain proportion of female external monitoring personnel shall participate. 12.2.3 Responsibilities of the external monitoring organization The external monitoring organization will undertake the following activities: (1) Before the resettlement activity starts, conduct the benchmark survey of living standard, and grasp the basic conditions of the production and lives of the affected people; (2) During the resettlement process, track and monitor the implementation of the resettlement activities. Collect the opinions and complaints of the affected people, reflect them to the resettlement department of the foreign investment office and the project office in time, and submit the monitoring report to the resettlement department of the foreign investment office and Asian Development Bank; (3) Track and survey the change of the production and living levels of the affected people, and evaluate the settlement activities and measures; (4) On the basis of the survey and investigation and the full consultation with the affected people, put forward the constructive suggestions to the resettlement department and the local resettlement office to guarantee that the resettlement work can go smoothly and the production and living standard of the affected people can recover as soon as possible. 12.2.4 Measures and procedures of external monitoring The external monitoring organization will take the following measures to monitor the resettlement: (1) On the basis of the resettlement survey, set up the database of the situations of the affected people and carry out frequent household-visiting interviews. The external monitoring organization will fully utilize the materials of the social economic investigation

90 and the information management system for the resettlement work set up by the project office to conduct dynamic management on the basic situations of the households affected by the land requisition and grasp the resettlement situations at any time. Make use of the situations reflected by the database and go deep into the affected resident households to have face-to-face interviews, learn the progress of the resettlement work, listen to their complaints, dissatisfaction and suggestions, and at the same time promote the relative national policies, Asian Development Bank’s relative requirements and the information of project construction. The external monitoring organization carry out the household interview independently without the company of the personnel of the local resettlement organization or the local administrative management personnel after obtaining the list of the affected people and the relative information from the basic-level units. When the external monitoring organization is conducting the household interviews, the interviewing personnel shall be fixed relatively, that is, the same person shall try to visit the same affected area repeatedly, in which way it is easy to build the mutual-trust relationship between the visiting personnel and the affected people, which is beneficial for the development of the work. (2) In the area where the affected people are more concentrated, organize the irregular symposiums of the affected people. At the area where the affected people are concentrated, the external monitoring organization will hold the symposium to hear the opinions of the affected people on the significant problem of project impact. The symposium can be official or unofficial; the personnel of the basic-level resettlement organization can be invited or not invited, depending on the specific situations then. (3) Field observation. (4) Case survey. Dissect the individual outstanding case that can happen during the resettlement process emphatically. Analyze the causes of the problem, find the solutions to it and present the suggestive opinions. (5) Questionnaire survey. Carry out sampling survey on the recovery of the affected persons’ production and life and their opinions about the resettlement work, conduct sampling survey, and analyze the results in time. Solve the existing problems for

91 reference of the resettlement work in the next year. 12.2.5 Main contents of external monitoring (1) Monitoring of land requisition Based on the characteristics of the land requisition of this project, the monitoring by the external monitoring organization on the resettlement issues brought by land requisition mainly focuses on the following aspects: Whether the various compensation standards for land requisition are enacted according to the relative national laws; Whether the procedure of the appropriation of the land compensation expenses can guarantee that the affected village group can receive their due fund; Whether the amount of requisitioned land, compensation standard and compensation amount are disclosed in the whole village, and what forms are adopted for disclosure; Whether the use of the land compensation fund has an explicit and feasible plan; Whether the affected villagers are consulted for the formulation of the plan of using the land compensation fund, and how the use plan is finally determined; How to distribute the benefits of using the land compensation fund, and how to guarantee the actual economic benefits of the affected labor force; (2) Monitoring of the operation of the resettlement organization The highly capable, professional and efficiently functioning resettlement organization is the reliable guaranty to ensure the smooth proceeding of the resettlement of the project. The monitoring of the operation situations of the resettlement organization is also an important content for the external monitoring organization to conduct the external monitoring. The monitoring of the resettlement organization is mainly conducted through the field investigation of the resettlement organizations, the inspection of their working materials and records and so on. The main contents are: Whether the staff composition of the resettlement organizations at all levels meet the requirements of the resettlement work; Whether the resettlement organizations at all levels have the necessary working conditions;

92 Whether the qualities of the personnel of the resettlement organization meet the requirements for the resettlement work; Training of the personnel of the resettlement organizations; Management of the internal materials of the work of the resettlement organizations. (3) Benchmark Survey of the living standards of the affected people Before the official implementation of the resettlement, the external monitoring organization will set up the benchmark data of the resettlement of the urban water environment comprehensive treatment project (medium-term adjustment) in Chaohu City, Anhui Province loaned by Asian Development Bank through sampling survey. The sampling investigation is mainly conducted in the form of questionnaire survey. Take all the affected households involved in the social economic investigation in the project preparation stage as the sample library and conduct classification sampling. The sampling proportion of the benchmark survey of living standards is about 20%. The main contents of the benchmark survey of the living standards of the affected families include: the population of the family, production and business conditions, building area, annual household income, employment structure, annual household expenditure, transportation conditions, water supply conditions, power supply conditions, living environment, the subjective evaluation of the production and living conditions. (4) Monitoring and evaluation of the effects of resettlement After the resettlement is officially implemented, the external monitoring organization will conduct tracking monitoring on the effects of resettlement implementation continuously. For the affected families, the external monitoring organization will conduct follow-up surveys half a year after their resettlement. Similar to the benchmark survey of living standards, the tracking investigation is also conducted adopting the method of sampling survey and the structured questionnaire survey, through which the impacts on the investigated objects brought by the resettlement are reflected to evaluate the effects of the resettlement. The selection of the samples of the tracking investigation is the same as that of the benchmark survey of living standards in principle, and the samples chosen shall be the same as far as possible. After completing the benchmark survey of living standards, set

93 up the database of all the investigation samples as the sample reference of the tracking survey. For the small amount of survey objects who are difficult to be tracked because of various reasons, take the data bank of the early-stage social economic investigation as the clue to select the similar affected households in the same community as the substitutions. The contents of the tracking investigation shall have good connectivity with the benchmark survey of living standards, for the convenience of comparing and analyzing the changes on family life and production before and after resettlement. Meanwhile the affected people will be consulted for their subjective comments on the resettlement work as the reference for evaluating the effects of the resettlement work. 12.2.6 The reporting system of external monitoring The external monitoring organization compiles the external monitoring report based on the materials obtained from observation and investigation with two main purposes: firstly, to reflect the progress of the resettlement work and the existing problems to Asian Development Bank and the project owner unit; secondly, to evaluate the social economic effects of the resettlement, raise suggestive opinions and suggestions, and improve the resettlement work. The period of the external monitoring organization’s reporting to Asian Development Bank and the project owner unit is: At the beginning of implementing the project, conduct the benchmark survey of living standards of the affected people and submit the benchmark survey report. Submit the external monitoring report semiannually. After all the resettlement work is completed, submit a copy of comprehensive after-resettlement evaluation report. The contents of the routine monitoring report shall at least include the following contents:(1) the monitored objects of this report;(2) the progress of the resettlement work;(3) the main monitoring findings of the monitoring organization;(4) main existing problems;(5) basic evaluation opinions and suggestions of the external monitoring. Submit the report of the external monitoring organization to the project office and the Asian Development Bank resettlement experts in both Chinese and English at the same

94 time. Before the official submitting, notify the relative personnel of the resettlement office, ask for their opinions and communicate on the contents and forms of the report.

12.3 Post appraisal for resettlement

After completing the project, on the basis of monitoring and evaluation, adopt the after-project evaluation theory and method to evaluate the resettlement activities of this project. The contents of the evaluation work mainly include the evaluation of the successful experiences and lessons learned in aspects of land requisition and so on, providing the referential experiences for the future resettlement work. The office of the leading group of the Asian Development Bank project of the People’s Government of chaohu City will choose an experienced resettlement monitoring body to undertake the evaluation work after the implementation of the resettlement. The project office compiles the evaluation outline, sets up the evaluation index system, carries out socioeconomic analysis and surveys write the after-project evaluation report and submit it the Asian Development Bank project office of Chaohu City and Asian Development Bank.

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Attachment I. Resettlement Due Diligence Report of Dongba Fourth

Station

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1 Overview

1.1 Background Dongba Fourth Station covers an area of about 4.2 mu. It is the land using

within the scope of the storage land of Chaohu City eastern second water plant, in

2012, the government requisited another 31.22 mu land of this area, he Dongba

Fourth Station project is located in the land, covers an area of 4.2 mu, takes a

percentage of 2.71% of the government-expropriated land.。

Chaohu Urban Construction Investment Co., Ltd. signed the land requisition

agreement with Jinmatou Community of Tianhe Street of Chaohu City (see the

attachment for details), contract number CTZZ (2012) No.24, the land requisition

area is 31.22 mu, the land requisition compensation fee is 3.4871 million Yuan,

compensation fee for the attachment on the ground is 2.756 million Yuan, 6.2431

million Yuan in total. Of which, the land requisition fee is 345,000 Yuan. According

to the document spirit of CZ(2007)No.47, the part of the old-age insurance fee paid

by village (group) for the land-requisitioned farmers shall be allocated from the

collective income of land compensation fees, the collection standard is 30% of the

collective income of land compensation fee, therefore, Chaohu Urban Construction

Investment Co., Ltd. remits 10.35 million to rural old insurance accounts of

Chaohu City Bureau of Finance, the surplus land compensation fee about 613.96

million Yuan has been remitted to Chaohu Urban Construction Headquarterss Office,

Chaohu Urban Construction Headquarterss Office remitted 6.1396 million Yuan to

Chaohu City Tianhe Street Cadres Service Construction Headquarterss on November

6, 2012. The compensation standard implements the Notice of the People's

Government of Anhui Province on Adjusting the Compensation Standard for Land

Requisition in Anhui Province (WZ (2012) No.67, agricultural land compensation

fee is 11095 Yuan/mu, resettlement compensation fee is 23775 Yuan/mu, green crops

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compensation fee is 1000 Yuan/mu. Chaohu Tianhe Street has already fully paid the land requisition fee to the affected households according to relevant regulations. No housing expropriation impact.

Land use of Dongba Fourth Station land has already get the nest pre letter of

No.2 land prequalification letter of Chaohu Land Resources Bureau and permission notes for project location and planning permission of project constructuion from

Chaohu City Planning Bureau.

According to regulations of Chaohu City, now the green crops compensation fee within land-using scope of Dongba Fourth Station is 1200 Yuan/mu, it will be compensated to eligible individuals according to regulations.

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Position paper for location of Dongba Fourth Station

No.341401201500005

According to Article 36 of the Urban and Rural Planning Law of China and state regulations, this construction project meets the requirements of urban and rural planning. We issue this paper after audition and consideration.

Issued by Chaohu City Planning Bureau

Date 2015.3.16

Name of the construction project Dongba Fourth Drainage Pumping Station

Name of the construction unit Chaohu flood control and drainage station

Basis of the construction project

Proposed location of the construction 370 meters from the left bank of Yuxi River

Area of the proposed land 2800 square meters

Scale of the proposed construction

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Attached drawing and name of the attachment

Topographic Map

Remarks: The usage of the land is for drainage (U21) and the total area of used land is 2800 square meters. The specific areas are showed in the attached topographic map. The accurate dimensions are verified by mapping department.

Adhere to the following

1. Basic information of the construction project is filled in according

to the related materials provided by the construction unit.

2. This position paper is the legal credential for location of

construction project examined by department of urban and rural

planning according to the law.

3. The content of this position paper shall not be altered at discretion

without the permission of issuing authority.

4. The attachment drawing and attachments are confirmed by issuing

authority, have the same legal effect as this paper.

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Project planning permission of Dongba Fourth Station

No.341401201500027

According to Article 36 and Article 38 of the Urban and Rural Planning Law of China, this construction project meets the requirements of urban and rural planning. We issue this paper after audition and consideration.

Issued by Chaohu City Planning Bureau

Date 2015.9.2

Name of the construction unit Chaohu flood control and drainage station

Name of the construction project Dongba Fourth Drainage Pumping Station

Location of the land 100 meters from the left bank of Yuxu River

Usage of the land Drainage (U21)

Area of proposed land 2800 square meters

Scale of proposed construction

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Attached drawing and name of the attachment

Topographic Map

Remarks: The usage of the land is for drainage (U21) and the total area of used land is 2800 square meters. The specific areas are showed in the attached topographic map. The accurate dimensions are verified by mapping department.

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Chaohu Land and Resources Bureau

Consent Letter of Dongba Forth Station Construction Project

Chaohu Housing and Urban Rural Construction Bureau: Reported from your unit about the Forth Station on the East Dam construction projects land application and attachment have been received, according to the "pre-construction projects, land management approach" (Ministry of Land Order No. 42) provides that the Bureau of the project site were pre-trial, opinions are the following: 1,According to Chaohu City Development and Reform Commission document "agreed Dongba Forth Station, Lishui Bay pumping station, pumping station project Yicheng transactions project approval" ( [2014] No. 92), the project is in line with national industrial policy and land supply policies. 2. Dongba Forth Station project situated at north of Yuxi River, east to Second City waterworks. Total size of the land is 2800 square meters. The oresent situation

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of the land is construction land. Land use plan to allow the construction area, Chaohu City in line with the overall land use plan (2006-2020). 3, Project unit should be strictly in accordance with reasonable land, intensive land use principles of project preliminary design and construction, and earnestly fulfill balance of arable land and approval of construction land compensation for land acquisition in good people, resettlement law. 4, To be agreed with the land for the project site 5. The pre-trial opinions can not be considered land use approval, the project unit should carry out land approval procedures according to law, to be implemented after the land available for construction. 6. This opinion is valid until 2017.4.14.

Land and Resources Bureau 2015.4.15 Contacts: Zhaoyong Tel: 13656505391

1.2 Resettlement Due Diligence Report

1.2.1 Purpose of due diligence report

The resettlement due diligence report conducts a comprehensive review of the land acquisition work of Dongba Fourth Station of Chaohu urban water environment comprehensive project (medium-term adjustment) and evaluate whether the land acquisition and resettlement involved in this project are meet the demands of Land

Administration Law of the People's Republic of China and related resettlement laws and regulations and compensation policy of Anhui Province and Chaohu City.

Through the inspection of the working process, implementation scheduling, funds management and resettlement results of land acquisition and resettlement, the implementation of progress, funding management, resettlement effect, to analyze the impact of land acquisition on the people’s life, to ensure that the legitimate rights and interests of immigrants are protected.

1.2.2 Methods of due diligence report

(1)The due diligence mainly adopts two research methods, one is the desk work; the

other is the fieldwork. Desk work mainly refers to collect and consult the

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relevant resettlement files and materials and to verify it.

 Documentation collected in this due diligence report include: project

approval documents, agreements and receipts of land approval and

resettlement;

 Public participation information that related to resettlement: compensation

agreements of Chaohu Urban Construction Investment Co., Ltd.;

 Distribution of compensation funds for project land requisition

(2) The fieldwork includes the following parts: symposium and field

interview.

 Including institution symposiums and villagers interviews, held symposium

with the project office of Chaohu City, project implementation

organization, Chaohu Urban Construction Headquarters Office, Hefei

Land Reserve Center Chaohu Branch Center, Tianhe Street, Land

Resources Bureau of Chaohu City and immigrant families separately, to

know the information of compensation for land requisition and the

resettlement implementation; to consult materials related to land

requisition at the same time and to verify it and do field interviews.

1.2.3 Contents of due diligence report

 Examination and approval process of construction land

 Land requisition policy and implementation

 Removal, compensation and reconstruction of infrastructure and ground

attachments

 Operation efficiency of resettlement implementation organization

 Public participation and consultation

 Complaints and appeals

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2 Resettlement implementation organization

2.1 Implementation organization In Chaohu urban water environment comprehensive treatment project

(medium-term adjustment), Chaohu Urban Contruction Investment Co., Ltd. is the decision-making and working body of project land requisition compensation and resettlement implementation, it is responsible for project coordination, management, supervision and services; report project implementation progress to People's

Government of Chohu Cityand the relevant competent departments. See picture 2-1 for resettlement organization:

Chaohu Urban Contruction Investment Co., Ltd.

Hefei Land Reserve Center Chaohu Branch Center

Chaohu Housing and Conutry Construction Bureau

Tianhe Street and the afftected

Picture 2-1 Land requisition organization chart of Chaohu City urban water environment Main responsibilitiescomprehensive of relevant treatment organizations: project (medium-term adjustment) （1）Chaohu Urban Construction Investment Co., Ltd.

 Implement the relevant national construction land policies and regulations;

 Sign up relevant compensation agreements with Tianhe Street;

 Be responsible for the physical land survey and registration;

 The implementation of land acquisition work;

 Solve various problems occurred in the process of land expropriation.

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（2）Hefei Land Reserve Center Chaohu Branch Center,

 Participate in the investigation of physical quantity.

 Organize public participation and spread the resettlement policy ;

 Implement, inspect, monitor and record all the resettlement activities within the scope of land acquisition of this project;

 Be responsible for the payment and management of land compensation funds;

 Report land acquisition and resettlement information to People's Government of Chaohu City;

 Coordinate the contradictions and problems in the work.

(3) Chaohu Housing and Country Construction Co., Ltd.

 Participate in the impact investigation of physical quantity;

 Organize public consultation, publicize land requisition policy;

 Organize and implement agricultural and non agricultural production resettlement activities;

 Be responsible for the funds management and appropriation;

 Reflect opinions and suggestions of immigrants to the relevant authorities;

 Report the schedule of resettlement implementation;

 Provide help for the needy.

(4) Tianhe Street of Chaohu City

 Participate in the impact investigation of physical quantity;

 Organize public consultation, publicize land requisition policy;

 Organize and implement agricultural and non agricultural production resettlement activities;

 Reflect opinions and suggestions of immigrants to the relevant authorities;

 Report the schedule of resettlement implementation;

2.2 Capability of implementation organization

Resettlement agencies of all levels are equipped with a dedicated staff, form a smooth information transmission channels from top to bottom. Resettlement

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agencies of all levels are mainly composed of administrative personnel and professional and technical personnel, with a staff of 4-7 people, all possess certain professional level and management skills, and have considerable experience in land requisition. See table 2-1 for the staffing of resettlement agencies.

3 Tbale 2-1 Staffing of resettlement agencies Project Organization Staffing staff composition Chaohu Urban Contruction Investment Co., Ltd. Chaohu urban 4 civil servant Hefei Land Reserve Center Chaohu Branch 5 civil servant water Chaohu city Housing and Conutry 7 civil servant environment

comprehensive village cadres, women Tianhe Street of Chaohu City 5 treatment project representative

2.3Evaluation During the resettlement due diligence report process of this project, land of

Dongba Fourth Station is the state-owned land, land compensation fund has been appropriated; people in relevant land reserve leading group of are of rich working experience; resettlement organizations are equipped with a full range staff, they are of high quality, familiar with the business of land requisition policy and laws and regulations, and have rich experience of land requisition and resettlement, they can carry out the policies of land requisition accurately and fulfill their responsibilities and tasks.

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3. Policies and compensation standards of land

requisition and resettlement

3.1 Policy frame

The implementation of this project is strictly in accordance with the relevant laws and regulations and requirements of the People's Republic of China and Anhui Province. See table 3-1 for the detailed resettlement policy framework. Table 3-1 Resettlement policy framework of project Level Policy documentation Effective time Land Administration Law of the People's Republic of China August 28, 2004 Enforcement Regulations of the Land Administration Law of the December 27, 1998 People's Republic of China（the State Council Order No.256） Decisions of the State Council on Deepening Reform and Strict October 21, 2004 Land Management (GF (2004) No.28) Instructions on Improving the System of Compensation and November 3, 2004 Resettlement of Land Requisition (GTZF (2004) No.238) The State Council’s Notice on Strengthening Land Regulation and August 31, 2006 Nation Control (GF (2006) No.31) and Notice of Ministry of Land and Resources formulates the standard central of unified annual production and comprehensive price of the July 23, 2005 ministr requisition land.(GTZF(2005)No.114) ies General Office of the State Council’s Notice of Forwarding The

Ministry of Labor and Social Security’s Instructions on the April 10, 2006 Employment Training and Social Security Work for the

Land-Requisitioned Farmers (GFB(2006) No.29)

Measures for the Announcement of Land Requisition (Ministry of January 1st, 2002 Land and Resources Order No. 10)

Anhui Province implements the method of the Land September 26, 2009 Administration Law of the People's Republic of China Anhui Notice of the People's Government of Anhui Province on Provin Adjusting the Compensation Standard for Land Requisition in ce March 7, 2015 Anhui Province (WZ (2015) No.24, the unified Annual Production and Compensation Standard of Anhui Province

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3.2Main clause of main policy

Relevant regulations of Land Administration Law of the People's Republic of China:

Article 47 of Land Administration Law of the People's Republic of China regulates that compensate for the requisitioned land according to its original use. The compensation fees for land requisition include the land compensation fee, resettlement fee, and the compensation fees for the ground attachments and green crops. The land compensation fee is 6-10 times the average annual production value of the land in the last 3 years before land requisition. the resettlement fee is calculated according to the agriculture population needing to be resettled which is calculated according to the quantity of the requisitioned cultivated land/the quantity of the cultivated land occupied per person in the requisitioned unit before land requisition. The standard of the resettlement fee for every agriculture person needing resettlement is 4-6 times the average annual production value in the past three years before the requisition of the cultivated land. But the resettlement fee for per hectare of the requisitioned cultivated land cannot exceed 15 times the average annual production value before the land requisition.

Relevant regulations of Notice of the People's Government of Anhui Province on Adjusting the Compensation Standard for Land Requisition in Anhui Province (WZ (2012) No.67

The land requisition standard of unified annual production is composed of unified annual production and the Land compensation multiple, regional annual production standard of counties (cities, regions) is the basis of calculating the land requisition compensation (see the attached table for land requisition standard of unified annual production of counties, cities and regions).

(Ⅰ) This standard is applicable to the collective agricultural land in the administrative area of Anhui Province, in addition to the basic farmland.

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Meet the relevant regulation of Land Administration Law of the People's Republic of China and Regulations on the Protection of Basic Farmland of if the address of key projects of energy, transportation, water, mine and military facilities cannot keep away from basic farmland, according to Decision, the land requisition compensation should be implemented according to the highest standard, the project construction land should be submitted to the State Council for approval. （Ⅱ）The estimated and announced unified annual output value of land acquisition standard is the comprehensive and abstract annual output value of agricultural land, not a specific standard of annual output value for a certain land category or plot. When non-agricultural construction project involves the requisition of agricultural land, unified annual output value and compensation multiple are determined according to the location of the county (city, region), and calculate the land requisition compensation and resettlement fees. (Ⅲ )This standard only includes the land requisition compensation and resettlement fees, compensation fees for green crops and ground attachments are not included. Compensation fee for green crops should be calculated by no more than the output value of one season; compensation fees for ground attachments will be implemented according to the physical truth and relevant regulations of nation and province. The requisition of forest land, land compensation and resettlement fees will be paid by the construction company according to the above regulations, compensation fee for the trees and forest cover recovery will be calculated according to the relevant national regulations. （Ⅳ）Land compensation, in addition to the agricultural land, will be paid according to the announced annual output value of the region that the project located, and will refer to Anhui Province implements the measures of The Land Administration Law of the People's Republic of China which regulates the upper limit of the compensation multiple to pay the compensation fees. Requisition compensation fee of the country homestead will be paid according to the compensation standard of the cultivated land nearby. 111

（Ⅴ）After the announcement and implementation of the standard of unified annual output value, land reclaiming fare and the social insurance fee for the land-requisitioned farmers are calculated according to this standard

3.3 Compensation standard

Compensation standard of Dongba Fourth Station land requisition (standard of 2012): Agricultural land: Land compensation fee is 11095 Yuan/mu, resettlement compensation fee is 23775 Yuan/mu, green crops compensation fee is 1000 Yuan/mu, 35870 Yuan/mu in tota

3.4 Evaluation All the work of land requisition compensation and resettlement are implemented according to the relevant laws and regulations of Notice of the People's Government of Anhui Province on Adjusting the Compensation Standard for Land Requisition in Anhui Province (WZ (2012) No.67, the overall planning of Urban Land Use of Chaohu City. The policies implemented in this project are in accordance with the principle of Asian Development Bank.

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4 Project land requisition and resettlement implementation

4.1 Affection and analysis of land requisition

Permanent land requisition of Dongba Fourth Station of this project is 4.2 mu, the original Chaohu Urban Construction Investment Co., Ltd. has already requisited, the property of the land is state-owned land, because this project belongs to urban basic facility construction, the land is used for free, the project construction unit—Chaohu Housing and Conutry Construction Bureau just need to apply for the land license.

4.2 Land requisition and resettlement measurements

On August 12, 2012, Chaohu Urban Construction Co., Ltd. signed the land requisition agreement with Jinmatou Community of Tianhe Street in Chaohu City, on August 17, 2012, Hefei Land Reserve Center Chaohu Branch Center showed the Letter of Appropriation of Land Requisition Fund of Dongba Fourth Station (see the attachment).

4.3 Appropriation of resettlement funds

4.3.1 Land requisition compensation fees

Location of the land of Dongba Fourth Station was purchased and storaged as the state-owned land in 2012, land acquisition total cost is 6.2413 million Yuan, the Dongba Fourth Station belongs to a part of the parcel, and the project will fulfill free

transfer formalities of the state-owned land for urban infrastructure construction. The proportion of the land parcel is 2.71%.

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4.3.2 Appropriation procedure

On August 17, 2012, Hefei Land Reserve Center Chaohu Branch Center gave the “Letter of Appropriation of Land Requisition Fund”, required that accodiring to the original prefecture-level Chaohu City CZ (2007) No.47, land requisition fee of the storage land of Chaohu second water pant (within the land scope of Dongba Fourth Station) is 6.2431 million Yuan in total, of which, 103500 Yuan lan requisition fee has been remitted to Chaohu Bureau of Finance, the remaining 6.1396 million Yuan has been remitted to Chaohu Urban Big Construction Headquarters Office. On November 8, 2012, Chaohu Urban Big Construction Headquarterss Office paid the 6.1396 million Yuan r\land requisition fee to Tianhe Street Construction Headquarters, seeing the receipt.

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Land Acquisition Agreement Party A: Chaohu Urban Construction Investment Co., LTD. (hereinafter refered to Party A) Party B: Jinmatou Community of Tianhe Street, Chaohu City (hereinafter refered to Party B) According to land management laws and regulations, the spirit of the Wanzheng No.[2012] 67 document and Chaozhengmi No.[2010] 147 document, through agreement by Party A and Party B, the following agreement is reached. 1. Construction project Land requisition fee of the storage land of Chaohu second waterworks 2. Scope of land requisition The lot range which Party A collects from Party B located at Gold Harbor Area. 3. Location of land requisition East to South Chaohe Road, south to Yuxi River, west to Chaohu second waterworks, north toYuxi Road, see more in plans. 4. Situation of land requisition between 2003-2005 The parcel of land is the storage land on the north bank of Yuxi river in 2003. The same year on December 12, a land levy [2003] No. 80, "Land Acquisition Agreement" is signed. The land area is 123.69 mu, land compensation fees is 6.1319 million Yuan of (see No. 03-16 " letter of land requisition on the allocation"). In 2003, the original JuChao area is raising funds for land storage, advanced twenty million Yuan from the prefecture level Chaohu City. July 9, 2005, the occupation of the land Yuxi is 13.18 mu (see [2005] No. 8 "Land Acquisition Compensation Agreement")

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5. Land category and area of land requisition According to the location of present land, Party A need to levy 31.22 mu supplementary land from Party B. The land includes 30.81 mu farmland and 0.41 mu construction land. 6.Compensation for land requisition 1) Farmland: Land compensation 11095 Yuan/mu, resettlement subsidy 23775 Yuan/mu, crop compensation 1000 Yuan/mu, subtotal 35870 Yuan/mu. Area is 30.81 mu, total compensation id 1105200 Yuan. 2) Construction land: Land compensation 7295 Yuan/mu, resettlement subsidy 9510 Yuan/mu, subtotal 17435 Yuan/mu. Area is 0.41 mu, total compensation id 7100 Yuan. 3) Compensation for deduction: 2374800 Yuan. 116

Subtotal 3487100 Yuan. 7. Compensation for land attachments When primary level Chaohu City paid for land requisition, the land compensation fee 2.3748 million Yuan was deduced from the prepaid twenty million Yuan. Additionally, the parcel land was not used, the community did nit move, current attachments have changed greatly, the neighborhood and community require to recount compensation. By consultation, agreed to recount attachments compensation. After inventory and accounting at the scene, the total compensation for land attachment is 2888900 Yuan. Deducting 132900 Yuan compensated in 2003, another 2756000 Yuan should be paid. 8. Land requisition and modes of payment 1) Land requisition: the total of land compensation, resettlement subsidy, crop compensation and compensation for land attachments is 6243100 Yuan. Land compensation is 345000 Yuan. 2) Modes of payment: According to the spirit of the Chaozheng No.[2007] 47 document, Party A will contribute 103500 Yuan to rural finance endowment insurance accounts. The total balance, which is 6139600 Yuan, will be paid to Chaohu City Construction Office. 3) Party A will pay in full at the time of requisition.

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9. Other matters 1) This agreement has 7 copies (two for party A, three for party B, one for Tianhe street, one to place on file) and goes into effect since the date after signing. 2) Attachment have the same legal effect as the original agreement 3) Attachment a. reconnaissance demarcation map b. list of compensation for land attachments c. inventory registration form of land attachments d. funding application form e. No.03-61 letter of appropriation for land requisition f. income form of 2003.12.30 118

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4.4 Evaluation

Land requisition and resettlement of this project are implemented according to Notice of the People's Government of Anhui Province on Adjusting the Compensation Standard for Land Requisition in Anhui Province (WZ (2012) No.67. Policies of (WZ (2012) No.67 are strictly implemented during the physical land requisition and resettlement progress. Strict project financial management and supervision system are built to guarantee all the land requisition compensation fees are paid in place safely. In conclusion, the implementation progress and resettlement policy of this project are in accordance with relevant land requisition laws, regulations and policies; 120

and are in accordance with the goal and requirements of the resettlement policy of Asian Development Bank.

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5 Information disclosure and complaints

5.1 Information disclosure, consultation

On December 29, 2015, People’s Government of Anhui Province approved the land using of

Yichengxu Bump Station with WZD (linked to the increase or decrease) (2015) No.253, see the above

file of Land X.

5.2 Complaints processing

During the implementation process of resettlement, transparent and efficient complaints and

appeals channel was built. Chaohu Land Resource Bureau and land requisition office of Chaohu Housig

and Construction Bureau have resettlement departments that are responsible for explaining relevant

issues involved in the resettlement to the affected people, and tell them they and put forward the appeals

to People’s Government of Tianhe Street and Heifei Land Reserve Center Chaohu Branch Center if they

have any questions or complaints, until put forward it to the Chaohu People’s Court for adjudication.

At the same time, Heifei Land Reserve Center Chaohu Branch Center publishes the land

requisition resettlement policy and compensation standards to the affected migrants in time. If there is

any misunderstanding of the policy of the affected people, the land requisition staff will arrange time,

and invite the affected people, land requisition office and assessment personnel to negotiate and solve it

together, and try their best to minimize the affection.

5.3 Evaluation

According to the investigation, complaints and dissatisfaction are solved by negotiation;

no judicial proceeding case of resettlement during the whole resettlement process.

The due diligence report group thinks the public participation and information disclosure are good,

and the complaints and appeals system is perfect.

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6 Conclusion

1）Examination and approval of Construction land and land requisition According to the Land Administration Law of the People's Republic of China and other relevant laws and regulations, any individual or unit needs to use land in construction activity must apply for the use of the state-owned land according to law. Seeing from the land requisition policy and the implementation procedure, this project is in accordance with the requirements of relevant laws and regulations of PRC, Anhui Province and Chaohu City.. 2）Project land requisition and resettlement affection

Permanent land requisition of Dongba Fourth Station of this project is 4.2 mu, the original Chaohu Urban Construction Investment Co., Ltd. has already requisited, the property of the land is state-owned land, because this project belongs to urban infrastructure construction, the land is used for free, the project construction unit—Chaohu Housing and Conutry Construction Bureau just need to apply for the land license.

3）Implementation organization Members in project office all have rich working experience, resettlement organizations are equipped with a full range staff, they are of high quality, and familiar with the business of land requisition policy and laws and regulations, and have rich experience of land requisition and resettlement, they can carry out the policies of land requisition accurately and fulfill their responsibilities and tasks. The implementation efficiency of land requisition and resettlement organization of this project is high. 4）Land requisition compensation and resettlement policy

Work of land requisition compensation and resettlement involved in this project are implemented according to the relevant key laws and regulations of Notice of the People's Government of Anhui Province on Adjusting the Compensation Standard for Land Requisition in Anhui Province (WZ (2012) No.67, these laws and regulations are set according to the Land Administration Law of the People's Republic of China and the physical local situation by People’s Government of Anhui Province. During the

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implementation process of land requisition and resettlement, this project is implemented in strict accordance with the laws and regulations that are relevant to the land requisition, policy has high transparency.

5）Situation of the resettlement compensation and implementation Project land requisition implementation organization carried out the policy of this project strictly, accurate measurement and record were made for the physical quantity that affected by the project land requisition and signed the resettlement compensation agreement with migrants. The implementation procedure is in accordance with the relevant land requisition laws and regulations of Anhui Province and Chaohu City. All the land requisition compensation fee of Dongba Fourth Station of project construction has already been appropriated to Tianhe Street. 6）Public participation and complaints and appeals During the project land requisition process, the resettlement implementation organization paid much attention to the participation and consultation of migrants. During the project land requisition implementation process, publicized the announcement and held the mobilization meeting to hear the opinions from the migrants widely. Complaints and appeals channel for migrants is smooth, transparent and efficient. 7）Evaluation towards the resettlement effect

Up to now, land requisition compensation fees for households that are directly affected by the project land requisition have been fully paid in place, all resettlement measurements have been implemented, income and living standard of migrants have been recovered and improved in general, degree of satisfaction of migrants is relatively high. The due diligence team has find that the results of resettlement has been satisfactory without complaint received from relocated people. Along the gradual urbanization, the people are accustomed to land acquisition. The residents take advantage of their location to work nearby or in other cities. The compensation for land acquisition will be paid to to all villagers equally after deduction of 3400Yuan/mu as endowment insurance premiums for farmers who have lost land based on the local practices of the community. There is no outstanding issue left by the project.

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