REVISED RESETTLEMENT PLAN

Nanle County Seat Wastewater Treatment Sub-project

Under

Henan Wastewater Management and Water Supply Sector Project

IN THE

PEOPLE’S REPUBLIC OF CHINA

Nanle County Seat Wastewater Treatment Company August 2006

The 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.

1

Endorsement Letter of the Resettlement Plan

Nanle County Seat Wastewater Treatment Company has prepared the resettlement plan for Asian Development Bank (ADB) financed wastewater treatment project in our county. This resettlement plan fully complies with requirements of the relevant laws, regulations and policies of People’s Republic of China and Henan Province as well as complies with ADB’s policy on involuntary resettlement.

Nanle County People’s Government hereby confirms the content of this resettlement plan and will guarantee the land acquisition, compensation and relocation budget being provided according to the provisions of this resettlement plan. This resettlement plan is based on the detailed design and the detailed measurement surveys.

Signature of Head of the County: Wu Xinpu

Nanle County People’s Government

August 25th, 2006

2

ABBREVIATIONS

RP Resettlement Plan PRC People’s Republic of China APs Affected Persons ADB Asian Development Bank FSR Feasibility study report EIA Environment Impact Assessment AAOV Annual Average Output Value WWTP Wastewater Treatment Plant (Project) LARO Land Acquisition Resettlement Office VCRLT Village Committee Resettlement Leading Team DI Design Institute LG Project Leading Group CGRO Chengguan Resettlement Office PMO Project Management Office WWTC Wastewater Treatment Company MEA Monitoring and Evaluation Agency TA Technical Assistance EA Executing Agency IA Implementing Agency RIB Resettlement Information Brochures NGO Non-government Organization TOR Terms of reference HWMWSP Henan Wastewater Management and Water Supply Project LAR Land Acquisition and Resettlement SA Social Assessment DMS Detailed Measurement Survey

3 Table of Contents Table of Contents ...... 4 Executive Summary ...... 7 1. Introduction and Project Description ...... 9 1.1 Introduction...... 9 1.2 Project Background...... 9 1.3 Project Description...... 10 1.3.1 Project Location ...... 10 1.3.2 Main Construction...... 10 1.3.3 Investment Estimation and Implementation Schedule ...... 10 1.3.4 Socioeconomic Benefits of the Project ...... 11 2. Socioeconomic Background of the Affected Areas...... 11 2.1 Background of the City Affected by the Project ...... 11 2.1.1 Features of the city ...... 11 2.2 Basic Situations of Affected Areas ...... 11 2.2.1 Nanle County ...... 11 2.2.2 Socio-economic Situations of the Affected Village...... 11 2.3 Socioeconomic Survey for Resettlement ...... 12 2.4 Sampling Survey on the APs...... 12 2.4.1 Statistic characteristics of APs ...... 12 2.4.2 Time of Living in the village...... 13 2.4.3 Average annual family income and expenditure per household ...... 13 2.4.4 Minority Families and Vulnerable Groups ...... 13 2.4.5 Willingness of Compensation for Land Acquisition ...... 13 2.4.6 Willingness to obtain training ...... 14 2.4.7 Information about the Project and Land Acquisition...... 14 3. Project Impacts...... 15 3.1 Types of loss Caused by Land Acquisition...... 15 3.2 Measures to Avoid or Reduce Land Acquisition to the Uttermost...... 15 3.2.1 Measures to reduce land acquisition during project design...... 15 3.2.2 Measures in Construction Stage to Avoid Augmenting Land Acquisition and Resettlement. 16 3.3 Project Impacts...... 16 3.3.1 Survey Methods ...... 16 3.3.2 Summary of Project Impacts ...... 17 3.3.3 Cultural Relics and Vulnerable Groups...... 18 3.4 Public Concerns ...... 18 3.5 Project Impact Analysis...... 19 4. Legal and Policy Framework ...... 20 4.1 Legal framework - State/ Local Law and Regulation ...... 20 4.1.1 Legal framework ...... 20 4.1.2 Extracts of Relevant Laws and Regulations...... 21 4.2 ADB Policy on Involuntary resettlement ...... 26 4.2.1 Overall Objective of ADB Involuntary Resettlement Policy ...... 26 4.2.2 Resettlement Plan Preparation...... 27 4.3 Resettlement Objectives and Planning Principles ...... 27 4.3.1 Resettlement target...... 27 4.3.2 Resettlement planning principles ...... 27 4.4 Compensation Rate ...... 28 4.4.1 Compensation Principle ...... 28 4.4.2 Compensation Rates for Land Acquisition and Resettlement ...... 29 4.4.3 Cut-off Date...... 30 4.4.4 Payment of Compensation ...... 30 4.4.5 Procedures for Compensation Payment ...... 30 4.4.6 Eligibility and Entitlement for Compensation...... 31 5. Compensation and Rehabilitation Measures ...... 33

4 5.1 Resettlement Strategy...... 33 5.1.1 Resettlement Objective ...... 33 5.1.2 Rehabilitation Planning Principles ...... 33 5.2 Rehabilitation for Permanent Land Acquisition...... 33 5.3 Rehabilitation Plan for Temporary land use...... 35 5.4 Women and Vulnerable Groups Rights Protection ...... 35 6. Institutional and Organizational Structure...... 36 6.1 Institutional Framework ...... 36 6.2 Institutional Framework and Responsibilities...... 36 6.3 Supervision Institution ...... 38 6.4 Resettlement Management Mechanism...... 38 6.5 Staffing...... 38 6.6 Measures to Strengthen Institutional Capacity Building...... 39 7. Public Participation and Consultation...... 40 7.1 Public Participation Strategy...... 40 7.2 Approaches for Public Participation and Measures...... 41 7.3 Public Participation During the Preparation of the RP...... 42 7.4 Publication of Resettlement Information ...... 42 7.4.1 Resettlement Information Brochures (RIB) ...... 43 7.4.2 Implementation Plan of RP ...... 43 7.5 Public Participation Plan During Implementation of RP ...... 44 7.6 Grievance Redress Procedures...... 45 7.6.1 Targets for Grievance Redress Procedure ...... 45 7.6.2 Grievance Redress Approaches...... 45 7.6.3 Grievance Redress Scope...... 46 8. Monitoring & Evaluation ...... 48 8.1 Internal M&E ...... 48 8.1.1 Main Monitoring Contents...... 48 8.1.2 Internal Monitoring Objectives ...... 48 8.2 External M&E ...... 48 8.2.1 External Monitoring Objectives ...... 48 8.3 Means and Methods ...... 49 8.4 Reporting...... 49 8.5 Resettlement M&E Outline...... 50 9. Resettlement Budget ...... 52 9.1 Contents of Resettlement Costs...... 52 9.1.1 Land Acquisition & Resettlement ...... 52 9.1.2 Facilities ...... 52 9.1.3 Other Costs...... 52 9.1.4 Contingencies...... 53 9.2 Budget Table on Resettlement Costs...... 53 9.3 Resettlement Investment Plan ...... 53 10 mplementation Arrangements and Schedule ...... 54 10.1 Principles to Formulate the Resettlement Schedule ...... 54 10.2 Overall Schedule of Land Acquisition and Resettlement Activities...... 54 11. Due Diligence and Retrofit Measures ...... 56 11.1 Due Diligence...... 56 11.1.1 Status of Land Approvals and Transfer of Ownership...... 56 11.1.2 Compensation Rates and Payment ...... 56 11.1.3 Allocation of Compensation...... 57 11.1.4 Land Readjustment using Reserve Land ...... 57 11.1.5 Fund Utilization for Income Rehabilitation...... 57 11.1.6 Livelihood Restoration ...... 58 11.1.7 Internal Monitoring and Supervision...... 58 11.1.8 Implementation issues/problems/grievances ...... 58 11.2 Retrofit Measures ...... 59 Appendix 1 Questionnaire of Households whose Land is Expropriated...... 60 5

Tables

TABLE 2.1 SOCIO-ECONOMIC SITUATIONS OF AFFECTED VILLAGE IN LAND ACQUISITION ...... 12 TABLE 2-2 EDUCATIONAL BACKGROUND OF THE APS IN SURVEY ...... 12 TABLE 2-3 LIVING DURATION IN THE VILLAGE ...... 13 TABLE 2-4 ANNUAL INCOME AND EXPENDITURE STRUCTURE OF THE FAMILIES INTERVIEWED ...... 13 TABLE 2-5 WILLINGNESS OF COMPENSATION FOR LAND ACQUISITION ...... 14 TABLE 2-6 WILLINGNESS TO OBTAIN REEMPLOYMENT TRAINING ...... 14 TABLE 2-7 INFORMATION SOURCES AND TIME CONCERNING THE PROJECT AND LAND ACQUISITION ...... 14 TABLE 3-1 THE TYPES AND QUANTITIES OF THE LAND PERMANENTLY EXPROPRIATED...... 17 TABLE 3-2 TYPES AND QUANTITIES OF GROUND ATTACHMENT IN THE SCOPE OF LAND ACQUISITION ...... 17 TABLE 3.3 ENGINEERING OF WASTEWATER PIPELINE SYSTEM ...... 18 TABLE 3-4 ANALYSIS ON PERMANENT LAND ACQUISITION ...... 19 TABLE 4-1 COMPENSATION STANDARD OF AAOV...... 25 TABLE 4-2 ABSTRACT OF RESETTLEMENT PRINCIPLES ...... 28 TABLE 4-4 COMPENSATION RATES FOR PERMANENT LAND ACQUISITION ...... 29 TABLE 4-5 COMPENSATION RATE FOR GROUND ATTACHMENT AND FACILITIES...... 30 FIGURE 4.1 COMPENSATION PAYMENT PROCEDURES ...... 31 TABLE 4-6 ENTITLEMENT MATRIX...... 32 TABLE 6-1 RESETTLEMENT ORGANIZATION STAFFING REFERRED IN THE PROJECT...... 38 TABLE 7.1 PUBLIC PARTICIPATION STRATEGY...... 40 TABLE 7-2 SUMMARY OF SURVEY RESULT OF PUBLIC AND AFFECTED HOUSEHOLDS FOR PERMANENT LAND ACQUISITION AND RELOCATION ...... 41 FIGURE 7.1 GRIEVANCE REDRESS PROCEDURES ...... 47 TABLE 8-1 RESETTLEMENT M&E OUTLINE ...... 50 TABLE 9-1 COST ESTIMATION FOR LAND ACQUISITION AND RESETTLEMENT OF NANLE WWTP PROJECT...... 53 TABLE 9-2 RESETTLEMENT INVESTMENT PLAN BY STAGES ...... 54 TABLE 10-1 SCHEDULE OF LAND ACQUISITION AND RESETTLEMENT...... 55 FIGURE 1-1: MAP OF NANLE COUNTY SHOWING THE PROJECT SITE...... 62

6 Executive Summary

A. Background and Impacts Assessment

1. The Project includes a wastewater treatment plant with capacity of 300,000 m3 per day, and 46.26km of drainage pipeline network located in the urban area. After experts’ verification and check, the Nanle County Development and Reform Committee determined that this Project involves 42.6 mu of first grade cultivated land for permanent land acquisition.

2. The affected area is Villager’s Team 1 of Dongjie Village in Chengguan Town, with 48 households (196 persons) affected. After the land acquisition, the land will be readjusted within Team 1.

B. Policy Framework and Entitlements

3. The resettlement principle of the Project indicates legal and law requisitions of PRC and ADB. And that for compensation, resettlement and income rehabilitation is so flexible to permit difference between villages and communities of cities, which exists in kind and cash compensation and selection of income rehabilitation between community-based and private organizations. The key point is to ensure that all the APs get sufficient compensation and assistance of income rehabilitation after land acquisition. The main purpose of RP is to rehabilitate APs’ income and living standard minimizing the damage on their economic and social environment. Due to the principle and qualification of compensation entitlement, an entitlement matrix has been formed to instruct payment of compensation and implementation of RP, and the matrix covers all varieties of loss.

C. Rehabilitation and Income Restoration

4. All affected persons will be compensated as set out in the project entitlement matrix in this RP. During Project implementation, efforts will be made to further minimize the land acquisition and resettlement impacts.

5. The income restoration and rehabilitation measures have been formulated in this RP according to the local economic situation and the purpose is to guarantee the living standards and livelihood of the affected persons equal or better than the ones before the project. These income restoration and rehabilitation measures have been developed in consultation with all affected persons and they have reflected the most practical ways for the easy implementation during the project.

D. Institutional Arrangements

6. Nanle County Seat Wastewater Treatment Company, as the implementing agency (IA) of the project, is responsible for compilation of RP, project implementation and coordination of the land acquisition and resettlement, registration of the project, baseline survey and specific implementation of RP within its prefecture.

7. Specially for this, the Land Acquisition and Resettlement Office of Nanle Wastewater Treatment Company and Chengguan Town Resettlement Office is to set up for specific activities and conduct the economic restoration plan with village committee and villagers’ team.

E. Public Consultation and Disclosure

8. Public participation is a significant component in the Project. In the resettlement policy formulation, RP compilation and implementation phases, the project should pay enough attention to public participation and consultation, accept the opinions of every social 7 organizations, government departments, village committee and resettlers broadly and encourage all parts to take part in the resettlement and rehabilitation activities.

F. Complaints and Grievances

9. Appeal procedure was set up to solve the disputes in compensation and the resettlement interest on the purpose of responding to the affected persons’ grievances timely and transparently. The affected persons are entitled to file the grievances against any dissatisfaction in land acquisition and rehabilitation, including the amount of compensation paid to them. Detailed procedures for acceptance and processing of grievance have been issued, and these procedures have been explained to the affected persons at the public meeting held by the IA and the district land acquisition and resettlement offices prior to the land acquisition and resettlement.

G. Monitoring and Reporting

10. Implementation of the resettlement plan will be monitored internally and externally. The implementation agency is expected to assume responsibilities for the internal monitoring. County PMO will be staffed with the independent supervisors. Nanle County Seat Wastewater Treatment Company will compile the quarterly report to submit to ADB, with contents cover the implementing progress of resettlement plan, emphasizing whether it conforms to the principle set forth in the Resettlement Plan and requirements in the compensation entitlements matrix. The IA will engage independent monitoring organizations to make external monitoring together, prepare evaluation report on the resettlement progress after commencement of construction, specifying the distribution of the compensation, and other measures to maintain or improve the affected persons’ social and economic living conditions against the conditions before the project.

H. Cost Estimate of Resettlement

11. According to the approval of project detailed design and resettlement survey, the resettlement costs are estimated to be CNY 3.17 million, including 15% contingency cost. The budget will be adjusted based on the actual measurement of physical losses during the project implementation. The EA will ensure adequate funding for resettlement implementation and will provide budgets as necessary to meet eventual shortfall that emerges in achieving the resettlement objectives.

8 1. Introduction and Project Description

1.1 Introduction In accordance with ADB policies on involuntary resettlement and other principle regarding social securities along with related social aspects, this resettlement plan is developed in reference to PRC’s laws/regulations and local governments’ policies on land acquisition and resettlement. This plan describes a policy framework to mitigate the adverse impacts caused by the proposed project of Nanle wastewater treatment plant through a series of remediation measures, including how and when to take these measures.

As Chinese governments and ADB are concerned, the primary purpose of resettlement plan is to ensure the people who unavoidably lose lands or properties in the development project have the same or better livelihood and living standards compared with that under “no-project” situation. All the policies and compensation measures in this resettlement plan are oriented to this purpose. The implementation agency (IA) has organized the Nanle wastewater treatment plant PMO to construct and manage this Project. The PMO will directly assume the responsibility for the preparation, implementation, internal monitoring and financing of this resettlement plan.

This resettlement plan is formulated the following basis: z “Land Administrative Law of PRC” z “Interim ordinance of PRC on Farmland Occupation” z “Decision of the State Council on the Strengthening of Land Management through Deepening the Reform”, October 21st, 2004” z “Implementation Rules for Land Administration Laws of Henan Province” z Puyang Municipal Government’s Announcement of AAOV Readjustment of the Land for National Construction z Puyang Municipal Government’s Announcement of Ground Attachment on the Land for National Construction z ADB’s “Involuntary Resettlement Policy” z Relevant project reports.

This resettlement plan covers all aspects of resettlement and income rehabilitation caused by the construction of the proposed wastewater treatment plant and wastewater collecting system.

On the basis of the feasibility study report and the preliminary design report, this plan is made after survey on land acquisition and demolition impact and socioeconomic survey. The plan has been updated based on detailed design and this revised RP was approved by Nanle County People’s Government in August 2006.

1.2 Project Background Nanle County is located in the northeast of Henan Province, at the crossing of Hebei, Shangdong and Henan provinces, with the north latitude between 35°58'55''—36°22' 6'',and the east longitude between 115°0' 42'' —115°28' 40''. It is neighbouring Wei City, Hebei Province to the west, borders Qingfeng County to the south, Daming County to the north, Shenxian County of Shangdong Province to the east. Nanle County covers an area of 624 square kilometers and has a total population of 480 thousand. It has jurisdiction over 3 towns, 9 townships and 322 administrative villages. The present urban district, the highest and lowest latitude of which is 50 meters and 42 meters respectively, 46 meters on the average, covers an area of 10 square kilometers and has a population of 60 thousand. The county is an alluvial plain of the Yellow River and Haihe River.

9 At present, there’s one water supply plant in the urban district, the daily supply capacity being 24,000m3/d; the daily water supply amount for self-provision is 16000m3/d (56 wells in total).

Now all the drainage systems of Nanle County are used for both of rain and wastewater. Urban sewage is drained through the underground water conveyance pipes to Yongshun ditch encircling the city proper, and finally to Majia River. Currently, no wastewater treatment facility is available in the downtown area.

Crossing the downtown from the south to the north, and the east to the west, Majia River mainly functions to release floodwater, irrigate, divert water to supplement the underground water, and so on. Majia River，belonging to the Sea and River Series, originates from Qu village of Puyang County, which runs through Nanle County from south to north, into Bohai through Hebei and Shangdong provinces from east to north. Drainage area of Majia River within Nanle County is 171km2. As sewage is directly piped into Majia River without any treatment, it is seriously polluted and water function deteriorates. As a result, its water quality is under V Class, which not only has affected the economic development of the local area, but also the environment and economic development of areas along the lower reaches. Therefore, it is very necessary and imperative to set up a wastewater treatment plant.

1.3 Project Description

1.3.1 Project Location The Wastewater Treatment Project (WWTP) is situated in the east of the planned area of Nanle County, to the south of Anji Road, at the crossing of Yongshun Gully and Sanli Gully, to the south of Yongshun Gully and north of the latter. The project site is 175 meters long from east to west, 230 meters from south to north, with the average altitude of 46.5 meters.

1.3.2 Main Construction Main Construction Components of the Nanle Wastewater Treatment Plant (WWTP) includes: （1）one Wastewater Treatment Plant with the capacity of 30,000 m3/d （2）complementary Drainage Pipeline Network of 46.26 km in length（DN300—DN1000）in the urban area.

1.3.3 Investment Estimation and Implementation Schedule Investment on this project is estimated to be CNY 80.50 million, among which CNY 77.84 million is for the capital cost including that for WWTP, complementary wastewater collection pipeline network and pumping station, CNY 1.88million is for the interest during construction.

According to the overall schedule and arrangement of the Project, in May 2005 the FSR had been approved, and in December 2004 EIA has been approved. In April 2006 the detailed design and approval was completed. It is planned to complete bidding procurement for civil works and equipment in August 2006 and approve it in September 2006. Resettlement Schedule: the land acquisition and resettlement for the plant commenced in December 2005 and ended in February 2006. There is no resettlement impact for the pipeline network since it is constructed along the roads. WWTP Schedule: Civil work commenced in March 2006 and in November 2006 the pipeline network and WWTP will be finished. In December 2006 the facility equipment and debugging will be commenced and end in February 2007, the project will be checked in March 2007 and in April 2007 the WWTP will begin its formal operation. 10

1.3.4 Socioeconomic Benefits of the Project

The implementation of the project is able to improve the urban surroundings, to lift the environment quality, to improve the water quality of the inland river and surrounding areas, to avoid and to reduce the economic losses of industry, agriculture and ecological environment caused by wastewater piping, to recycle wastewater more efficiently, to save underground water resources, and to play an important role in the improvement of the urban infrastructure and beautification of the county , to make better the living conditions of the citizens, to do good to the well-being of county citizens, to perfect the investment environment, to develop the tourist industry and to promote the economic development of the county.

2. Socioeconomic Background of the Affected Areas

2.1 Background of the City Affected by the Project

2.1.1 Features of the city Nanle County has a total population of 480 thousand and the total area is 624km2. It has jurisdiction over 3 towns, 9 townships and 322 administrative villages. Situated in the center of the county, the downtown, including both the old and new one, has a population of 80 thousand, and covers an area of 10km2, and is with the altitude of 42—50m. The county traffic of is pretty good, 107 national highway and Anji Road meeting at the crossing of the county, and along Banner-Shenzhen Highway which runs along the west of the county, is almost open to traffic, and Anyang-Nanle Highway is to under construction. Infrastructure of the county is being gradually improved and urbanization accelerated.

2.2 Basic Situations of Affected Areas 2.2.1 Nanle County

GDP of the year 2002 is 2.08 billion Yuan, with contribution made by the primary, second and tertiary industry being 0.968 billion, 0.644 billion and 0.469 billion respectively. The total farmland of Nanle County is 580 thousand mu, and the staple agricultural products are corn, wheat, peanut, soybean, cotton and different kinds of melons and vegetables. In the recent years, the industrialization of agriculture has achieved new development, for example, farmland of high-quality apples have amounted to 100,000mu. Village and township enterprises in the county are very prosperous. In the year 2002, the total number of industrial enterprises throughout the county has reached 328, with a total production value of CNY 2.8 billion. The village and township enterprises have absorbed as many as 20,000 rural labors. During the year 2002, net income of the rural people per capita is CNY 2,0387, which increased by 0.6% from last year. Savings of the urban residents hits CNY 84.17 million; the average disposable income of rural and urban residents is CNY 3,674.

2.2.2 Socio-economic Situations of the Affected Village

Dongjie Village of Chengguan Town is involved in the land acquisition caused by Nanle WWTP. Total households of Dongjie Village are 398 with a total population of 1627, of which the female are 820, agriculture population 1627. The total labor force is 850 people, of which the industry laborers are 100, agriculture laborers are 450, and the tertiary laborers are 300. Farmland of the county is 1627.83 mu, including 1527.83 mu of irrigable land,100 mu pond. The average production of wheat and corn are roughly the same; that is 450kg per mu.

11 Revenue of Dongjie Village is CNY 2.425 million, of which the primary industry produces CNY 1.925 million, accounting for 92.3%, the second industry is CNY 200 thousand, accounting for 4.1%, and the tertiary sector is CNY 300 thousand, accounting for 3.6%. The project directly affects Villager Team 1, which involves 42.6 mu land in Group 1 and affecting 46 households with 196 persons.

2.3 Socioeconomic Survey for Resettlement The plant site of Nanle County Seat Wastewater Treatment Project will involve Villagers’ Team 1 of Dongjie Village in Chengguan Town in permanent land acquisition. The team has 48 households with 196 persons and all of them will be affected to some degree. Cooperated with Township and village leaders, the baseline survey on the 48 households indicated the economic income and expenditure of every family. The lowest net income in the 48 households is CNY 2,450, the top net income amounts to CNY18,500, average family income goes up to CNY 3,675 and average income per capita is CNY 967; lowest annual family expenditure is CNY 2,055 and the top expenditure is CNY 10,380, the average expenditure is CNY 2,655 and average expenditure per capita is CNY 699. The specifics can be seen in Table 2.1. Table 2.1 Socio-economic Situations of Affected Village in Land Acquisition

Average No. of Farmland Populatio Agricultural farmland per Villager’ House- expropriated Village n Population capita after s Team holds （mu） （ ） （ ） land （ ） person person hh acquisition( Dongjie 1 48 196 196 42.6 0.7 Village

2.4 Sampling Survey on the APs To acquire the basic information on the income and expenditure of the APs, Nanle County Seat Wastewater Treatment Plant conducted a random sampling survey on 120 households with 365 persons involved in the impact in November 2004, which covers all 48 households of Villager’s Team 1 of Dongjie village. The integrated analysis is shown as follows.

2.4.1 Statistic characteristics of APs

Among the respondents 99 are male and 91 are female, whose ages range from 15 to 92 with the average age of 39. As for their marital status, 141 (74%) of them have been married and 1 (0.5%) are single, the divorced amounts to 1 (0.5%), those who lost spouses amounts to 10 (5%) and for others it is 38 (20%). The detailed educational background of the interviewed 120 households with 365 APs in the survey is presented in Table 2.2. Table 2-2 Educational Background of the APs in Survey

12 Educational background No. of cases(person) Percentage of cases (％) No schooling 1 0.53 Primary school 33 17.37 Junior school 113 60 Senior school 40 21.05 Post secondary school 2 1.05 College and above 1 0.53 Total 190 100

2.4.2 Time of Living in the village

The survey indicates that all the people have been living in the village for a long time, and the details are shown in Table 2.3. Table 2-3 Living Duration in the village

No. of households Residence time Percentage of cases (%) （household） Five years and below 0 0 5～10 years 0 0 10～20 years 0 0 20～30 years 0 0 30～50 years 0 0 For generations 48 100 Total 48 100

2.4.3 Average annual family income and expenditure per household

The specifics can be seen in Table 2.4. Table 2-4 Annual Income and Expenditure Structure of the Families Interviewed Income（yuan/year） Expenditure（yuan/year） Net family income Average net Annual family Annual income per capita expenditure expenditure per capita Average 3675 967 2655 699 Min 2450 2055 Max 18500 13080

2.4.4 Minority Families and Vulnerable Groups As for the survey on 48 households, all are of Han nationality without minor nationality families. Among the families in survey, neither single woman-headed household nor sole or orphan family is identified.

2.4.5 Willingness of Compensation for Land Acquisition This project does not involve in displacement and house demolition and the interviewed farming households’ reply to the compensation method for permanent land acquisition in survey is summarized in Table 2.5 as follows. 13

Table 2-5 Willingness of Compensation for Land Acquisition

Cases Project title Options Percentage(%) （household） Cash compensation 48 100

Farmland with same size and quality 0 0

Farmland compensation Employment arrangement for family members 48 100

Not available 0 0

Do not know 0 0

2.4.6 Willingness to obtain training

Table 2-6 Willingness to Obtain Reemployment Training

Reply Respondent （household） Responding rate(％)

Yes 48 100 No 0 0 Unsettled 0 0 No reply 0 0 Total 48 100

2.4.7 Information about the Project and Land Acquisition Table 2-7 Information Sources and Time Concerning the Project and Land Acquisition

First knowledge

Responding rate 48 households 20% Information sources Newspaper Meeting Neighbors Social investigators 47 Responding rate 0 0 1 household households

14 3. Project Impacts

3.1 Types of loss Caused by Land Acquisition

According to the FSR and field survey for the project, the types of losses caused by land acquisition and resettlement are shown as follows:

• Permanent arable land acquisition; • Temporary land use; • Infrastructure and facilities demolition such as grove, pumped well and electric pole; and • Loss of other productive assets such as trees and standing crops.

3.2 Measures to Avoid or Reduce Land Acquisition to the Uttermost

3.2.1 Measures to reduce land acquisition during project design

To avoid or minimize land acquisition and demolition, the plant site of WWTP has experienced many times of comparative selection with detailed survey on the surrounding environment and ground attachment to utilize land properly and to minimize or avoid cost increase caused by the project by the land acquisition and clearance. There were two schemes for Nanle WWTP. Scheme 1: Pingyi Village of Gujinlou Town. The village is quite far from the county seat, 3km far from Anji Highway and it needs to construct an access road to the plant from the Highway. The access road amounts to 3km totally occupying 12m in width and 6m of road surface, totally 54mu land and it will cross through the orchards with quite long pipeline network, which is not good to collect wastewater and far from the garbage treatment plant as planned. The plant will cause the land acquisition cost to increase CNY 3.75 million and the investment for road construction will increase about CNY 0.65 million, with the cost for ground attachment and operation increase to some extent. As far as the reason for the site, only the long-term development instead of the short-term needs WWTP was taken into account. Scheme 2: Dongjie Village of Chengguan Town. This village is also within the urban planning area, which is quite near to the county seat. Situated along with the south side of Anji Highway with convenient traffic and thus no need of access road which, compared with Scheme 1, decreases 54 mu land expropriated, CNY 3.75 million of land acquisition cost, CNY 0.65 around of investment on road construction. The pavement of wastewater collection pipeline network is quite short, near to the planned Chengdong Industrial Zone, which is convenient for the collection of existing wastewater in urban areas and later industrial wastewater, and the silt can be delivered into the near garbage treatment plant. The site will sharply decrease land acquisition, compensation, investment, compensation for ground attachment and operational cost. Finally the plant site is determined to be located in Dongjie Village. The site does not need to build new road and the farmland was owned by one villager team. In the surrounding area of

15 the site, there is no village, construction, telecommunication cables, and etc. The wastewater collection pipeline can be laid along the roads in the county seat and constructed according to the overall planning of the county seat. It is planned, constructed and managed by the same construction supervision department. Taking the foregoing measures, the land acquisition is minimized and demolition is avoided as well. 3.2.2 Measures in Construction Stage to Avoid Augmenting Land Acquisition and Resettlement

ⅰ) Enhancing public participation mechanism

Before the commencement of project construction, such information related to project starting time and project construction schedule was provided to the public in form of bulletin and measures of land acquisition and resettlement was announced for purpose of accepting the residences’ supervision. During construction, preferential consideration will be given to utilize the local materials, transportation and labor force, such that the affected people could benefit from the project construction.

ⅱ) Strengthening construction and management, reasonably arranging the construction site, minimizing influences on crops and plants, strictly controlling noises, dusts and influences on surrounding environment.

ⅲ) Accelerating implementation progress, reducing construction influences, adopting advanced methods especially by using the mechanized construction in sewage network to shorten the construction time and to minimize the adverse impacts.

3.3 Project Impacts

3.3.1 Survey Methods

To make clear the losses caused by land acquisition, and to provide references for RP and compensation estimation, objects were surveyed as follows: permanent and temporary land acquisition, the population affected by the project, the scattered trees, special facilities, etc. Its concrete methods of investigation are as follows: A: Census. The census of the households affected by the land requisition was done separately according to the following types: The land of the households has to be permanently acquired, and the land of households that has to be temporarily acquired. B: Land investigation. Identify the present use of the land, to measure the land piece by piece on the spot , and to investigate and add up the area according to the different uses and owners. C: The investigation of scattered trees and cemeteries. To verify item by item and one by one for the scattered trees and cemeteries in the scope of land requisition, and to register them according to their different species. D. Investigation of the special facilities. To carry out investigations into the hydraulic, electric power, telecommunication facilities and other facilities. And with reference to the information provided by different departments, related technical personnel will check and make confirmation on the spot.

16

3.3.2 Summary of Project Impacts

ⅰ）Permanent land acquisition

The wastewater treatment plant for this project needs to expropriate 42.6 mu land of Grade 1 farmland in Dongjie Village and all the land is of collective ownership. The project affects 48 rural households with 196 persons directly. The access road to plant only requires a bridge and it does not need to expropriate any land. The specifics can be seen in Table 3-1.

Table 3-1 The Types and Quantities of the Land Permanently Expropriated

Farmland to be permanently acquired Affected No. Items Village Affected person (mu) household Arable land Non-arable land Total

1 WWTP Dongjie 48 196 42.6 0 42.6

ⅱ）Temporary land use

Temporarily acquisitioned land is the land temporarily used during the project construction period, including land for storing sand and stones, for mixing building materials, and land within the construction and living areas, and land used as temporary road during the project construction phase. Land for temporary use for the project is also chosen within the permanently acquisitioned land, and there’s no need to take over other land. The construction of pipeline network will utilize the ditches beside roads and after pavement it will be filled in again. Because of sufficient space, the soil dug out will not need to occupy any farmland. iii）House Demolition and Attachments No houses or their attachments had to be demolished as a result of the WWTP or the laying of the pipes. iv) Ground Attachments There are 86 candlenut trees to be destroyed, 26 graves to be moved, 3 cement electric poles and 1 pumped well to be destroyed.

Table 3-2 Types and Quantities of Ground Attachment in the Scope of Land Acquisition Sub-project Pumped Mature Trees Graves Electric wires component well WWTP 86 26 1 3

v) Infrastructure and facilities 17 No major infrastructure within the project area is affected. Special facilities affected are mainly electrical wires and wells. 3 electric wires and poles will have to be protected or removed in the process of project construction, and only one well will be destroyed. There are no communication lines in the plant site. vi) Wastewater Pumping Station and Pipeline Construction The project needs to construct a wastewater mid-way uprising pumping station and wastewater collection pipeline of 46.26km in length. The wastewater pipeline network utilizes the empty ditches beside roads. During construction the soil will be laid in the ditches temporarily, which will need no occupation of farmland beside and roads. Details can be seen in Table 3-3.

Table 3.3 Engineering of Wastewater Pipeline System Pipeline Item Total System d300 17680m d400 21560m Diameter of pipeline d500 1750m (reinforced pipe) d600 4270m d800 1000m Total 46.26km The construction of wastewater pumping station and the installation of wastewater collection pipeline network are all along paved roads within the reserved room (rights-of way) according to the urban planning of the county seat. It has no any demolition of enterprises, shops, electric poles, flower nursery gardens and possibly only a little disturbance on the enterprises and shops along the roads temporarily; as a result, necessary measures to minimize the duration and impact of construction disturbances will be taken by contractors and supervised closely. The project is of public affairs with the coordination of local government, urban construction administrative supervision departments, and thus the people can understand comprehensively and support this without any need of compensation. The recovery cost for pavement of pipeline network is listed in the engineering cost but not the RP.

3.3.3 Cultural Relics and Vulnerable Groups There are no buildings within or surrounding the project site, and no cultural relics under it. In the Team 1 of Dongjie Village where land acquisition occurs, there’re no disabled people, old people without children, minorities and house renters.

3.4 Public Concerns

Survey on project demand and feedback of the affected people has been made, satisfying the affected people’s demands. Problems concerned are environmental protection, employment and enterprising opportunities. Their concerns included: i) fair compensation; ii) regulating

18 adequate land; iii) assistance to livelihood; and iv) timely and adequate compensation.

3.5 Project Impact Analysis Of the whole project construction, only the establishment of wastewater treatment works involves land acquisition. The original production system of Dongjie Village, Chengguan Town, has been destroyed, which has significantly affected the agricultural production of the local villagers. As a consequence of the land acquisition, the average per capita landholding of the No 1 Villager Group of Dongjie Village 1 has been reduced from 0.92 mu to 0.7 mu, a 24% reduction. Studies of land acquisition in the past have shown to us that in the project affected Dongjie Village, readjustment of land is made among the same villager group, that is, all villagers who have farmland have a share in the land compensation, while per capita land is reduced by 0.217 mu for each person. Assuming the highest price of rice, the average per capita income loss is CNY 260 annually. This means the average income loss is 22%. See specifics in Table 3.4. In addition, since Dongjie is close to the urban area, it is convenient for the local farmers to engage in the second industry or to do business in the city proper, which is expected to greatly increase their income, to change their outdated ideas, to explore more ways to make money, to facilitate their participation in the second and tertiary industry. Through the resettlement implementation, this project will provide policy, technical and physical assistance to the resettlers to make sure that the resettlers’ living standard is as high as, or ever higher than before the resettlement with the details in Chapter 5. Specifics can be seen in Table 3-4.

Table 3-4 Analysis on Permanent Land Acquisition

Per capita Per capita Per farmland Name Name Land farmland Average Average Household population Farmland household before of of acquisition after land Land Income (per) (mu) farmland land Project village (mu) acquisition loss loss (mu/h) acquisition (mu／p) (mu／p)

Team 1 Nanle of 48 196 180.3 3.76 42.6 0.92 0.7 24% 22% WWTP Dongjie

19 4. Legal and Policy Framework

Legal and law framework for this project has two sets of sources: PRC’s laws and regulations and policy requirements of ADB. This chapter is aimed to describe demolition and resettlement policies and strategy concerning land acquisition and compensation.

4.1 Legal framework - State/ Local Law and Regulation 4.1.1 Legal framework Compensation to the affected people and land and resettlement adheres to the Land Administrative Law initiated in 1999, involving land access and ownership, land use and protection and compensation, resettlement subsidy and proper resettlement measures to the affected people. According to the Land Administrative Law (Article 8), rural land belongs to the state land, rural and suburb land is owned collectively by village (residential land, arable land and mountain regions). Such collective and its members (majority of two thirds) have the right to determine whether reallocate or rearrange the arable land (Article 31). Furthermore (Article 47) it elaborates when land acquisition is necessary, compensation shall be made as per the original land purpose containing land compensation, resettlement subsidy, compensation for land attachment and standing crops.

Arable land compensation shall be multiple of average annual output of 3 years preceding such acquisition (based on local standard as prescribed by law). The resettlement subsidy for each agricultural population to be settled shall be calculated based on multiple of the average annual output of 3 years preceding the land acquisition. Compensation for standing crops shall be calculated as per one season output. Compensation method and standard for the attachments will be carried out pursuant to regulations of Henan Provincial People’s Government. Augmenting attachments after the date of announcement release for land acquisition will not be compensated. Articles 48 and 49 require consultation on the compensation standard and the compensation to be paid to the collective owner. All the compensations will be paid to the land owners including agency or collective organization.

Arable land occupancy tax will be calculated according to actual land area tax payers occupied which will be collected at once based on the specified amounts.

As regards to the specific implementation principle, compensation eligibility, deadline, procedures of information publicity, resettlement plans and monitoring have been specified. During urban building demolition, specialized state policy and local regulations will be in charge of the management, demolition, compensation and resettlement. The laws and regulations used for the project are shown as follows: z Land Administrative Law of PRC z State Council Notice of the Decision to Deepen the Reform for Restrict Land Administration. z Land Acquisition Announcement of State Land Resources Ministry z Urban House Demolition Management Regulations, China z Land Administrative Law Act of PRC z Provisional regulations for Arable Land Occupancy of PRC z Basic Farmland Protection regulations, Henan Province z Land Administrative Law Act, Henan Province z Puyang Municipal Government’s Announcement of AAOV Readjustment of the Land for National Construction 20 z Puyang Municipal Government’s Announcement of Ground Attachment on the Land for National Construction.

4.1.2 Extracts of Relevant Laws and Regulations 1）Relevant regulations of Land Administrative Law of PRC: Article 10 land collectively owned by peasants will be organized legally by the collective economic committee; peasant collective-owned land respectively owned by more than two villages will be managed by the rural collective institutes of village or farmer teams; collective land subordinated to village (town) farmers will be managed and administrated by village(town )collective economic forms.

Article 14 Land owned by farmer collectives shall be operated under a contract by members of the economic organizations of the farmer collectives for crop cultivation, forestry, animal husbandry or fishery. Within the duration of the contract for operation of land, any appropriate readjustment of the land between individual contractors shall be made with the agreement of at least two-thirds of the members of the villagers assembly or of the representatives of villagers and submitted to the township (town) people's government and the agriculture administration department of the people's government of the county for approval.

Article 24 National protective arable land is forbidden to be changed into non-arable land. Land occupancy compensation policy is implemented by nation. In case land is approved for non-agricultural construction, the principle of “ cultivating according to occupation” must be observed; non-observance cultivation or cultivated land not conforming to the requirements, land cultivation fees shall be paid as per the regulations as specified by province, autonomous or municipal level.

Article 31 Land damage caused by digging, sinking and occupying shall be restored in charged by relevant regulations of the nation; non-restoration or non-observance shall be subjected to land recovery expenses.

Article 42 Land acquired shall be compensated for on the basis of its original purpose of use.

Compensation for acquired cultivated land shall include compensation for land, resettlement subsidies and attachments and standing crop crops on the acquired land. Compensation for acquisition of cultivated land shall be six to ten times the AAOV of the acquired land for three years preceding such acquisition. Resettlement subsidies for acquisition of cultivated land shall be calculated according to the agricultural population to be resettled. The agricultural population to be resettled shall be calculated by dividing the amount of acquired cultivated land by the average amount of the original cultivated land per person of the unit the land of which is acquired. The standard resettlement subsidies to be divided among members of the agricultural population needing resettlement shall be four to six times the AAOV of the acquired cultivated land for three years preceding such acquisition. However, the highest resettlement subsidies for each hectare of the acquired cultivated land shall not exceed fifteen times its AAOV for the three years preceding such acquisition.

Standards of land compensation and resettlement subsidies for acquisition of other types of land shall be prescribed by provinces, autonomous regions and municipalities directly under the Central Government with reference to the standards of compensation and resettlement subsidies for acquisition of cultivated land.

21 Standards for compensation for attachments and standing crop crops on the acquired land shall be prescribed by provinces, autonomous regions and municipalities directly under the Central Government.

For acquisition of vegetable plots in city suburbs, the land users shall pay towards a development and construction fund for new vegetable plots in accordance with the relevant regulations of the State.

If land compensation and resettlement subsidies paid in accordance with the provisions of the second paragraph of this Article are still insufficient to help the farmers needing resettlement to maintain their original living standards, the resettlement subsidies may be increased upon approval by people's governments of provinces, autonomous regions and municipalities directly under the Central Government. However, the total land compensation and resettlement subsidies shall not exceed 30 times the AAOV of the acquired land for the three years preceding such acquisition.

Article 47 After deciding on the policy of land acquisition compensation, announcement shall be issued by relevant local government and opinions of the collective farmers and local organizations shall be listened.

Article 48 The rural collective economic organization, the land of which is acquired, shall accept supervision by making known to its members the income and expenses of the compensation received for land acquisition.

The compensation and other charges paid to the unit for its land acquired is forbidden to be embezzled or misappropriated.

Article 49 Local people's governments at all levels shall support the rural collective economic organizations, the land of which is acquired, and the farmers in their efforts to engage in development or business operation or to start enterprises.

Article 50 State-owned land used by the construction unit shall be obtained by such compensable attitude as selling; however, the following types of construction land as approved by the people’s government above county level can be obtained by appropriation”: (I) National governmental organization land use (II) Urban infrastructure land and public welfare land (III) Infrastructure construction land primarily supported by the nation related to energy, transportation and water conservancy works, and (IV) Land of other purposes as specified by law or administrative regulations

Article 54 Where land owned by the State or by farmer collectives needs to be used temporarily for construction of projects or for geologic prospecting, the matter should be subject to approval by the land administration departments of people's governments at or above the county level. However, if the land to be temporarily used is located in the area covered by urban planning, the matter shall be subject to agreement by the urban planning administration department concerned before it is submitted for approval. The land user shall, depending on who owns the land and who has the land-use right, enter into a contract for the temporary use of the land with the land administration department concerned, or the rural collective economic organization, or the villagers committee and pay compensation for it in accordance with the provisions of the contract.

Article 57 In case that the following conditions are met, and subject to approval of the people’s government or government with approval right, national land use right may be retrieved: (I) land

22 use for public interest; (II)when land needs to be regulated arising from old city reconstruction for implementation of urban planning.

Article 58 Rural peasants can only own one residence for each household, with the area not exceeding the standard for province, autonomous region and municipalities. Rural residences shall meet the overall planning of town land utilization and maintain the original residing base and village spare area. Rural residing land shall be inspected by town people’s government and approved by country-level government; in which, where farmer-used land is occupied, procedures shall be addressed according to Article XXXXIV of this law.

2）Relevant Stipulates of Provisional Regulations of Farmland Land Occupancy Tax in PRC, 1987

Article 2 The farmland referred in the regulations means the land for planting. And that for planting 3 years preceding the acquisition is regarded as the farmland as well.

Article 3 Both unit and individual who need to occupy farmland for building construction or other nonagricultural construction should be responsible to pay farmland occupancy tax (thereafter called taxpayer). They should pay farmland occupancy tax in accordance with the regulation.

Article 4 Farmland occupancy tax should be calculated based on the actual area of farmland occupation. The amount of tax should be collected payment once.

Article 5 The tax amount of farmland occupancy should be stipulated as follows: (1) Take a county as a unit (same thereafter), for the area that the average farmland area is less than one mu per capita(included), the tax should be CNY 2 to CNY 10 per square meter; (2) For the area that the average farmland ranges from one (1included) to two (2 included) mu per capita, the tax should be CNY 1.6 to CNY 8 per square meter; (3) For the area that the average farmland ranges from 2 to 3 mu per capita, the tax should be CNY 1.3 to CNY 6.5 per square meter; and (4) For the area that the average farmland is more than 3 mu per capita, the tax should be CNY 1 to CNY 5 per square meter.

Article 9 The farmland occupancy tax should be collected by finance department. The land administrative bureau should inform all finance departments timely after approval of land occupation for unit and individual. The unit and individual should declare and pay tax to finance department with the document approved by land administration bureau above county level. The land administrative bureau will transfer the land to unit and individual based on the receipt of tax payment or approval document for land acquisition.

3）Relevant Regulations on the State Council Decision to Deepen Reform and Restrict Land Administration

Implications of new regulations for land use and land compensation “Document (28) 2004” - a State Council Circular on the “Decision to Deepen Reform and Strictly Enforce Land Administration” was issued on 21st October 2004 and contains several very important provisions in respect of LAR activity. The document points out that “the relationship between ensuring socio-economic development and protecting land resources must be correctly addressed” with the stated objectives “to bring the growth of land for construction use under strict control, take efforts to activate land reserves, strengthen (the awareness of) land saving, deepen reform, improve the legal system, take overall arrangements into consideration and 23 further improve the strictest land system that is in tally with the national conditions of the country”.

The document urges local governments to take action to, inter alia:

▪ Strengthen land use planning and utilise approved land use plans as the basis for approving proposed construction projects.

▪ Involve local land use departments in the approval process for construction projects ▪ Publicise minimum values for sale and transfer land to avoid land acquisition taking place at below market rates ▪ Strengthen the application of “no detriment” for affected persons ▪ Ensure compensation payments are targeted to those most affected by LAR activity ▪ Strengthen audit and monitoring arrangements

The issue of document 28 was followed up by:

(i) The issue (on 1st November 2004) of Decree 27 by the Ministry of Land Resources. Decree 27 contains administrative procedures for use by local Land Use departments in reviewing proposed construction projects. These procedures attempt to strengthen land use planning and control.

(ii) Ministry of Land Resources “Guidelines on Improving the System of Land Acquisition Compensation and Resettlement” which was issued on 3rd November 2004, makes specific reference to Document 28 and gives specific guidance on its implementation.

4）Guidelines for the Implementation of the Land Administrative Law of PRC in Henan Province

Article 25 Where non-agricultural construction project is approved for land occupancy, cultivation plans shall be made by land users, forwarding to land administrative department for approval responsible for cultivation the land quantity and quality as appropriate. Where there’s not proper condition for land cultivation, corresponding cultivation fees shall be paid and the cultivation fees collection, utilization and management method shall be otherwise specified by provincial people’s government. Where land is supplied in unified manner within urban construction land occupancy under overall land planning, arable cultivation shall be shouldered by land use unit; where arable land is occupied by village and towns, land cultivation shall be taken charge by rural collective organizations or village committee.

Article 24 For acquiring farmer’s collective land, compensation should be made as follows: (1) Land compensation: compensation for acquired cultivated land in the outskirt of primary city shall be eight (8) to ten (10) times the AAOV of the acquired land for three years preceding such acquisition; in the outskirt of secondary city and mining area seven (7) to nine (9) times the AAOV; in other areas six (6) to eight (8) times the AAOV. Of the farmland acquisition, various sideline products (excluding vegetable) shall be counted as 15% to 20% of the annual production based on major products.(AAOV: arable land averaged output value)

(2) Resettlement subsidies: for acquisition of cultivated land, compensation shall be paid based on each 667 m2: For the average farmland per capita is over 667 m2, compensation shall be four (4) to five (5) times the AAOV of the acquired cultivated land for three years preceding such acquisition; for the average farmland per capita is over 334 m2 and under 667 m2, compensation shall be six (6) to nine (9) times the AAOV of last three years; for the average farmland per capita is less than 334 m2, compensation 24 shall be ten (10) to twelve (12) times the AAOV of last three years. Under special circumstance, compensation shall not be over 15 times the AAOV of the acquired cultivated land for last three years preceding such acquisition of 667 m2.

(3) Standing crops: one times the AAOV.

(4) Compensation standards for attachments shall be executed according to the regulation of Provincial People’s Government. No compensation shall be paid to the newly added attachments from the date of public notification.

Article 35 in case the land occupied belong to rural collective owners or village committee, land compensation shall be paid to rural collective owners or village committee; where it belongs to villagers team; compensation shall be paid to the team and where it belongs to town collective organizers, it shall be paid to the organizers. Compensation for land attachment and green crops subsidy shall be performed as per Article 26 of Promulgation Rules for Land Administrative Law.

Article 38 The annual production value for land compensation and resettlement subsidies shall be based on the average annual production and current average nation-regulated product price of last three years. If no nation-regulated price, the local market price shall be used.

Article 39 Within the area of land acquisition, if there is water source, culvert, culvert gate, pipeline, road, electric cable and production and living related facilities, the local People’s Government shall organize relevant departments as well as the land use unit and construction unit to resettle properly, without obstruction and damage on purpose; if obstruction and damage can not be avoided, the items shall be rehabilitated or constructed relevant facilities according to regulations.

Article 40 Temporary land use shall be implemented according to Article 57 of Land Administrative Law. Expiration of temporary land shall subject it to original status and land returned.

5) Relevant Regulations of Puyang Municipal Government’s Announcement of AAOV Readjustment of the Land for National Construction (1) Compensation standard of AAOV for Grain Land

Table 4-1 Compensation Standard of AAOV

Ground rank Compartmentalize standard AAOV（yuan/mu）

Excellent soil quality, entirely irrigation and Grade 1 1300 drainage, smooth and regular plot, fertile ground Excellent soil quality, better condition on irrigation Grade 2 and drainage, smooth and regular plot, fertile 1105 ground Good soil quality, possess of irrigation and Grade 3 940 drainage, smooth plot, good fertilizer usage

(2) Standing crops in land acquisition are compensated by one times the AAOV, and followed by the confirmed schedule of expropriation. The standard constitutes of 60% of AAOV in 25 summertime and 40% of AAOV in autumn time. In addition, the autumn time is from 10th June to 30th September each year when the rest is summertime. During the actual implementation, the compensation fund for standing crops was determined CNY1,300 of the whole year AAOV strongly demanded by villagers and agreed by the local government.

(3) Compensation standard for economic standing crops shall be executed according to the one of temporary land use.

(4) During the stage from expropriation starting to approved, it won’t accord with the span season compensation standard when consulting to expropriation and calculating the attachments instead of start working and temporary land use. But it shall be compensated when carrying out the expropriation and the standing crops demolition for the reason of measuring, fixing stake and reconnaissance, especially keep a principle combined by the reality and the circumstances. In terms to avoid unnecessary loss by the miss farming, the land administration should concerns the starting and constructs cycle of the expropriation and gives a notice to farmer when the cycle is long and spans the season.

4.2 ADB Policy on Involuntary resettlement 4.2.1 Overall Objective of ADB Involuntary Resettlement Policy In 1995 ADB has set up its policy on involuntary resettlement with the following overall objectives. (i) Involuntary resettlement should be avoided where feasible. (ii) When population displacement is unavoidable, it should be minimized by exploring all viable project options. (iii) If individuals or a community must lose their land, means of livelihood, social support systems, or way of life in order that a project might proceed, they should be compensated and assisted so that their economic and social future will generally be at least as favorable with the project as without it. Appropriate land, housing, infrastructure, and other compensation, comparable to the without project situation, should be provided to the adversely affected population, including indigenous groups, ethnic minorities, and pastoralists who may have usufruct or customary rights to the land or other resources taken for the project. (iv) Any involuntary resettlement should, as far as possible, be conceived and executed as a part of a development project or program and resettlement plans should be prepared with appropriate time bound actions and budgets. Resettlers should be provided sufficient resources and opportunities to re-establish their homes and livelihoods as soon as possible. (v) The affected people should be fully informed and closely consulted on resettlement and compensation options. Where adversely affected people are particularly vulnerable, resettlement and compensation decisions should be preceded by a social preparation phase to build up the capacity of the vulnerable people to deal with the issues. (vi) Appropriate patterns of social organization should be promoted, and existing social and cultural institutions of resettlers and their hosts should be supported and used to the greatest extent possible. Resettlers should be integrated economically and socially into host communities so that adverse impacts on host communities are minimized. One of the effective ways of achieving this integration may be by extending development benefits to host communities. (vii) The absence of formal legal title to land by some affected groups should not be a bar to compensation. Affected persons entitled to compensation and rehabilitation should be identified and recorded as early as possible, preferably at the project identification stage, in order to prevent an influx of illegal encroachers, squatters, and other non-residents who wish to take advantage of such benefits. Particular attention should be paid to the needs of the poorest households and other vulnerable groups, such as indigenous peoples, and 26 appropriate assistance provided to help them improve their status. (viii) The full costs of resettlement and compensation, including the costs of social preparation and livelihood program as well as the incremental benefits over the “without project” situation, should be included in the presentation of project costs and benefits.

4.2.2 Resettlement Plan Preparation According to the Bank policy, the contents and level of detail of a resettlement plan, which may vary with circumstances, especially the magnitude of resettlement, should normally include a statement of objectives, policies and strategy, and should cover the following essential elements: i) Corresponding measures shall be taken for resettlement within the policy framework making sure that the affected people have their optional right and other rights concerning the resettlement; familiar with the feasible schemes technologically and economically, participating in negotiation and enjoying opportunity of selection; obtaining compensation rapidly and duly based on the resettlement costs to mitigate the direct financial loss caused by project. ii) In case resettlement is involved, corresponding measures shall be taken in line with resettlement planning or resettlement schedule, guaranteeing the affected people could get subsidy (such as resettlement subsidy); obtaining house or housing base, or farming site according to their requests. The production potential, positioning advantages and other comprehensive factors shall at least correspond with the advantageous conditions of the original site. And iii) To achieve the objectives of this policy, necessary measures shall be taken regarding the policy frame for resettlement plans resettlement to ensure during the transitional period as expected reasonably the affected people could get proper assistance and subsidy in accordance with the livelihood and living standard restoration.

4.3 Resettlement Objectives and Planning Principles 4.3.1 Resettlement target

Compensation and resettlement policy for the affected people are formed based on China State laws and regulations as well as requirements from Asian Development Bank. The purpose of the resettlement and rehabilitation plan is to ensure that the affected people will regain or surpass their livelihood after the resettlement. Priority shall be given to poverty-stricken people and vulnerable groups.

4.3.2 Resettlement planning principles Requirements both from China State laws and Asian Development Bank are reflected in the Resettlement principles provided in Table 4-2 are principles involving compensation,

27 dismantling and income rehabilitation; which are adequately flexible: allowing differences between villages, and urban communities; the differences are embodied on the one hand between land redistribution and cash payment; and on the other hand, the income rehabilitation of individual income based on community. The key lies in guaranteeing all affected people could get assistance and compensation for income rehabilitation after resettlement.

Table 4-2 Abstract of Resettlement Principles

Principles

Compensation and entitlement provided to the affected people should maintain their living 1 standard at least no worse than ever “without project”, or better.

All the affected people, legally entitled or non-entitled, should be compensated and assisted 2 for resettlement.

Compensation by cash should ensure the standard of living of the affected people can be 3 maintained at least no worse than ever after resettlement.

In case livelihood fails to be maintained after land acquisition, cash compensation or kind 4 compensation for land loss should be made thereto. Other income generation activities should all be carried out. The affected people should have full understanding of such items as eligibility, 5 compensation modes and rate, livelihood and income rehabilitation as well as the project implementation schedule, and participate in the implementation of the resettlement plan. Land acquisition should not be carried out until the affected people are satisfied with 6 compensation and resettlement and their schemes. Compensation and resettlement would be monitored by the executive agency or the third 7 party.

Special assistance or treatment should be given to the vulnerable groups to ensure they 8 have a better life.

9 The affected people should have opportunities to get profits from the project.

4.4 Compensation Rate

4.4.1 Compensation Principle The compensation principle for the land acquisition of Nanle Wastewater Treatment Project is mainly in accordance with State laws of PRC and meanwhile ADB’s compensation principle is carefully referred and carried out to entitle compensation impartial and 28 reasonable for every AP’s satisfaction. I. Compensation principle of PRC: A. Land compensation, resettlement subsidy and compensation for standing crops should be calculated and determined in accordance with the relevant regulations of Implementation Methods of Land Administration Law in Henan Province and Puyang Municipality. B. The compensation fund for scattered trees should be determined due to its actual restoration situations based on the principle of three originals including original scale, original standard and original function. II. ADB’s compensation Principle: The compensation and resettlement policies for the APs are formulated based on the combination of laws and regulations of PRC and ADB’s policies. The major target of RP is to restore APs’ income and living standard after land acquisition to minimize the impact on their socio-economic environment. The need of the poor population and vulnerable groups should be paid special attention, which is a principle determined in RP.

4.4.2 Compensation Rates for Land Acquisition and Resettlement 1. Compensation Rate for Permanent Land Acquisition According to the survey and measurement, the AAOV of the affected farmland in last three years was evaluated as 1300 yuan per mu. See Table 4-3 and Table 4-4.

Table 4-3 Compensation Rates Calculation for Permanent Land Acquisition

AAOV in Compensation Multiplier Standard of compensation (yuan/mu) last 3 years Item Land Resettle Land Resettle (CNY/mu/ Standing Standing Compe ment Compe ment Total year) crops crops nsation Subsidy nsation Subsidy

Farm 1300 9 15 1 11700 19500 1300 32500 land

Table 4-4 Compensation Rates for Permanent Land Acquisition Unit: Yuan/mu land user fee for

Type of Compensation land Tax on Land Standing Land land and occupation for Farmland Management Total crops Cultivation acquired Resettlement new Acquisition Fee Subsidy construction 31200 1300 5200 18000 2867 1500 60067 Farmland

Village Land Receiver Contractor Land bureau nation Land bureau commission bureau

29

2. Compensation Rate for Ground Attachment and Facilities Table 4-5 Compensation Rate for Ground Attachment and Facilities Mature Graves Electric Pumped Item Trees pole well

Unit Yuan/tree Yuan/grave Yuan/pole Yuan/well

rate 40 100 120 5000

4.4.3 Cut-off Date The qualifying deadline for compensation was decided on the date of completion of DMS (November 2005). Any newly built structures or planted trees after this date purely for getting extra compensation will not be taken into account.

4.4.4 Payment of Compensation The compensation for the land acquisition and other attachment has been directly paid to the legal owners of the property in December 2005.

Compensation for land acquisition and resettlement paid by the IAs has been distributed to the owner or user of the land directly before land acquisition in December 2005. According to the Land Administrative Law of People’s Republic of China, the compensation for land loss must be handed to the former owners and users of the land before the land acquisition, while the resettlement subsidies were paid to the villagers of Team 1 after land acquisition on average. Therefore, the collective land compensations have been handed to the collective economic entity who owns the lands; the resettlement subsidies have been handed to village committee for the resettlement of farmers.

4.4.5 Procedures for Compensation Payment Figure 4.1 below shows the process and supervision of the compensation fund payment. The compensation for land acquisition, demolition and resettlement has been paid to Nanle Land Administrative Bureau by the IAs using a special bank account. Nanle Land Administrative Bureau then distributed the compensation to affected village committee and land owners (i.e. Team 1). For the compensation fund for standing crops, it has been disbursed to the land users directly by the Nanle Wastewater Treatment Company. Village Committee disbursed the land compensation fund to the affected households based on their contract use rights. County Government monitored and audited the disbursement and use of the fund, assessed and evaluated the effect of the fund use and give necessary instruction to scan for fraud.

30 Figure 4.1 Compensation Payment Procedures

Nanle Wastewater Treatment Company

Nanle County Land Administrative Bureau

Affected Village Committee or villagers’ Team 1

Affected Farmers

4.4.6 Eligibility and Entitlement for Compensation

All the APs have got compensation for loss of their property due to its reconstruction value.

According to the compensation rules, entitlement and eligibility, a resettlement entitlement matrix (Table 4-6) was formulated to guide resettlement implementation, which includes losses of various types and covering measures, regulations and standard as provided in this chapter and other chapters.

31

Table 4-6 Entitlement Matrix

Types of Causes for unit or Quantity of unit or Compensation policy Compensation detail Implementation procedure Losses occupation or individual individual who has loss who has entitlement entitlement Villager representative meeting studies and · Obtain CNY31,200/mu as determines the relevant issues on fund allocation compensation for land loss and · adequate compensation to Current arable land Donjie Village Team 1 owns and allocating methods of compensation fund, resettlement subsidy; collective economic organizations timely and adequate compensation allocation to is expropriated Village land property, which and farmers and the shared parts are the farmers who have lost productive materials because of WWTP committee includes 48 rural · determined by villager representative since land acquisition; the solution program to the construction and Team 1 households utilize land compensation and resettlement subsidy to restore all meeting grievance and feedback about compensation fund APs’ income from villagers and then take it into practice.

Permanent land ·obtain training and employment acquisition opportunities and take measures to ·WAG, district government, village committee maintain their business income organize skills training to strengthen laborers’ knowledge Loss of productive 48 households ·compensate for loss of land ·After village committee placards compensation materials because Land tenant with 196 members acquisition in one season of land acquisition rate policy, it allocates the compensation fund directly to the farmers who are to be compensated · obtain CNY1300/mu as ·formulate favorable measures for laborers’to compensation for standing crops start their own business

Ground Loss because of Property All owners who lose ·obtain adequate compensation at ·adequately compensate the owners RO pays the compensation fund to the property attachment ground attachment owners the ground replacement cost. of ground attachments, among which owners of ground attachment due to compensation destroyed attachments CNY5000/pumped well, that for the pumped wells is given to rate and procedure. CNY40/mature tree, village committee; that of mature CNY120/electric pole, and trees and the like is given to the CNY100/grave. property owners

32 5. Compensation and Rehabilitation Measures

5.1 Resettlement Strategy 5.1.1 Resettlement Objective The general objective of this RP is to ensure that: the affected person (AP) will be compensated for their land loss and will improve their living standards or at least not be worse than the current level. Based on the features of economic development and employment of the affected village, with integrated analysis the resettlement objectives are determined as follows: i) to readjust land within Team 1 of the village to balance the maintaining farmland resources and modify the agricultural structure, strengthen irrigation water supply system, improve soil, and increase the planting area for high-quality species to fully develop the potential of land, to increase land output and to generate agricultural income for resettlers. ii) by means of organizing transformation of labor force to develop the second and tertiary Industry and increase APs’ income. iii) actively take economic rehabilitation measures to ensure APs’ net income per capita regain or surpass their living standards after the resettlement.

5.1.2 Rehabilitation Planning Principles Based on the relevant state regulations & rules and the ADB involuntary resettlement policies, this RP should observe the following basic rehabilitation planning principles:

z Make the resettlement soundly, fix relevant compensation into action, so as to boost or at least restore the affected residents’ living standards. z The resettlement should consider the relations of nation, community and individual. z RP should be compiled in accordance with physical index and compensation rates for land acquisition and demolition. Resettlement projects scale & standards shall be subject to the principle of original scale and standards restoring. Meanwhile, the investment gap should not be left on the basis of planned amount limitation. z RP should involve comprehensive negotiation with APs z When making the resettlement plan, we also should take local city’s plan, resource plan, economic development and environment into consideration. We should take effective measures based on real and local conditions, so as to create the opportunity for resettlers’ own development.

5.2 Rehabilitation for Permanent Land Acquisition On June 20th, August 10th and September 2nd 2004, the resettlement group held group discussions with village leaders, part of villagers’ representatives of resettlers and some unaffected villagers to specially discuss the specific plans on production rehabilitation and surplus labor force resettlement for Team 1. Although the impact on the village production 33 activities is relatively little, the impact on Team 1 and those whose land will be expropriated is very significant. Therefore, to minimize the impact on these resettlers’ living, production and income, the resettlement planning group has communicated and fully negotiated on the use of compensation fund and production rehabilitation with village committee in many aspects. Finally, after two group discussion of the two committees and based on the full collection of resettlers and villager representatives’ opinion, the village committee determined the following means to restore resettlers’ living: i) Land readjustment using reserve land. Before the commencement of the project construction, the village committee and village group (Team 1) took charge of the farmland readjustment within the whole team utilizing the available reserve land to ensure that every household has the same amount of farmland resources; in addition, if the resettlers would like, they can supplement their original farmland area by reaching agreement with other households that no longer require as much farmland; ii) Cash compensation. After the IA disbursed the compensation fund to the village, the village committee disbursed all the compensation fund to Team 1 of Dongjie, and then allocated to every household the same amount of compensation for productive development. iii) Develop tertiary industry. Making full advantage of neighboring county seat, to encourage and help farmers to develop transport, processing, service and the like in county seat to increase income, until now, within Team 1, 36 persons have engaged themselves in the tertiary industry, and have increased the average income per capita by CNY290 in half a year; iv) Agricultural structure modification. Since the farmland of Team 1 decreased by 24%, the farmers were assisted to modify agricultural structure to develop multi-planting to increase the output rate of unit land to increase their income; v) Skills training implementation for resettlers. County Government entrusted the Nanle Wastewater Treatment Company to cooperate with township government to provide the livelihood training for APs. Some skills training classes were conducted at county and town levels from February 18th to 24th 2006. Its contents included existing soil improvement, plantation and management of high-quality species, planting technique for economically profit crops, operation and maintenance for advanced machinery and facilities, animal breeding technique, poultry breeding technique, family vocation project, sewing technique for clothing and living articles for use, and small scale business, service registration and operation. All the affected households (persons) can take part in these classes. Proper and reasonable training subsidy can be given to the participants based on the local income standard. The training budget expenditure should be allocated to every training agent such as agricultural technique training center, aquatics technique training

34 center, agricultural machinery expansion center, and skills training center for women reemployment in women’s federation. The project involves 48 households in permanent land acquisition and each surplus labor force can take part in the training -- totally 48 participants including 30 men and 18 women. The entire training budget amounts to CNY38,400.

5.3 Rehabilitation Plan for Temporary land use Temporarily acquisitioned land is the land temporarily used during the project construction period, including land for storing sand and stones, for mixing building materials, and land within the construction and living areas, and land used as temporary road during the project construction phase. Land for temporary use for the project is also chosen within the permanently acquisitioned land, and there’s no need to take over other land. The construction of pipeline network will utilize the ditches beside roads and after pavement it will be filled in again. Because of sufficient space, the soil dug out will do not need to occupy the farmland beside or roads specially.

5.4 Women and Vulnerable Groups Rights Protection No single woman-headed households due to the divorce, losing spouse and being abandoned have been found. In the affected area, the female has the same right as that of male. It includes cultivating, education, family planning, and village election, and etc. Most woman labor interviewed thought they had the same production and business right as that of men, such as doing the part-time job or doing tiny business or doing the farm work. Of course, there is a different division between male and female in the housework and production. The women will tend to choose the housework, farm work, handwork and native & specialty business, while more young people choose to make a living at coastal areas.

The construction and land acquisition of the Project will not have obvious influence on the women whose land is expropriated.

During the project construction stage, the project owner will organize a group meeting concerning women representatives annually taking a village as unit. Meanwhile, we also conduct regular visit to some families so as to collect women’s suggestions, appeals and to accept their consultation. The village will report the owner the grievance concerning the women resettlement compensation and rehabilitation. The owner shall deliver the representatives to answer or settle the question within a week. In the Project area there are some poor households. By providing reserve land to these households, the potential income losses were minimized. Additional farmland was made available by households that no longer wish to do farmland. In this manner, the incomes of the poor will at least be stable and over time will improve with the intensification and restructuring

35 of farm production. During the whole process of resettlement, the vulnerable groups will be given more care and special attention, that is to say, to given favorable care in various subsidies. This means that they should be given more care to supply comprehensive service and convenience, their opinions and rights should be respected to keep their rights from encroaching to keep their living standard the same as the other people. The monitoring and evaluation of affected households will pay particular attention to vulnerable households to ensure they can benefit.

6. Institutional and Organizational Structure

6.1 Institutional Framework In order to ensure the successful operation of the resettlement, the organizations responsible for planning, controlling, execution and supervision of the RP are listed as follows: z Resettlement Leading Group (LG) z Nanle County Seat Wastewater Treatment Company (WWTC) z Land Acquisition and Resettlement Office (LARO) z Chengguan Resettlement Office (CGRO) z Village Committee Resettlement Leading Team (VCRLT) z Project Design Institute (DI) z External Independent M&E Agency (MEA).

6.2 Institutional Framework and Responsibilities 1) LG To ensure that the resettlement activities can be smoothly carried out, the responsible leaders of Nanle County Government, Nanle Urban Construction and Environment Protection Bureau, and Nanle State Land Resources Administrative Bureau has formed a project resettlement leading group with major responsibilities to strengthen leadership of the project, formulate resettlement policy for the Project and organize and coordinate the relations of resettlement institutions at all levels. The LG sets up an office below it to deal with the daily affairs in Nanle Urban Construction and Environment Protection Bureau.

2) WWTC It is responsible for RP’s compilation, implementation and coordination of RP, registration of land acquisition, baseline survey and specific implementation of land acquisition and resettlement.

3) WWTC, LARO As the management organization of land acquisition and resettlement for the project, LARO’s main responsibilities cover:

36 z resettlement policy concerning the land acquisition and resettlement z entrusting DI to determine the scope of project impact, kind data of land acquisition impact and data conservation z application for land using & land construction licenses z holding operation training for the major resettlement leaders in LARO z organization and coordination of resettlement plan z be responsible for the management and supervision of resettlement compensation fund z guidance, coordination and supervision of resettlement execution and progress z preside and check internal M&E activities, compile report on LAR schedule z dealing with the disputation and problems occurred during the execution.

4) CGRO Headed by the responsible township leaders, comprised by land administrative station, planning station, forestry station and major village leaders, the CGRO’s main duties cover: z conducting project survey & offering assistance for the preparation of RP z organizing public participation and propagating the resettlement plan among the public z execution, inspection, supervision and recording of resettlement activities in the local town z disbursement and management of land compensation fund z supervision of land acquisition z report on the land acquisition to county land bureau and LARO z dealing with the grievances and problems that occur during resettlement.

5) VRLG VRLG is made up of village committee, villager team made of APs, affected families and villager representatives. Its duties mainly cover: z participating in the socioeconomic project impact survey z organizing public consultation and participating in the compilation of RP z readjusting land, organizing resettlement activities such as production development z management and disbursement of compensation fund z expressing resettlers’ opinions and suggestions to the superior departments z reporting on resettlement progress.

6) DI z designing the project as per contract z determining the scope of land acquisition impact.

37 7) External Independent MEA z offering the technical assistance for land acquisition and resettlement z as the independent supervision institute, it monitors RP and its implementation and submits M&E reports to Municipal Project Office and ADB.

6.3 Supervision Institution The supervision institution of LARO in the Project is LG and government auditing department with responsibilities to ensure that the RP will be carried out smoothly so the project can be smoothly implemented and the affected villagers can get proper and adequate compensation.

6.4 Resettlement Management Mechanism The mechanism is made up with Nanle County People’s Government, Nanle Urban Construction and Environment Protection Bureau, Nanle LG, LARO in WWTC, CGLARO, and two committees of Dongjie village, which poses as a management and information communication mechanisms between up and below. It is set up to solve any problems during resettlement at any time to ensure resettlement is smoothly implemented.

6.5 Staffing In order that the resettlement will operate successfully, the preparation office with each relevant organization involved in the resettlement implementation at various levels will assign competent and devoted staff to form a channel for the free flow of information from bottom-up. The staff of resettlement organizations will be made up of professional technicians and managements who possess the special managements and resettlement & relocation experiences (see Table 6-1).

Table 0-1 Resettlement Organization Staffing Referred in the Project

No. Of Full-Time Total No. of Working Resettlement organization Resettlement Resettlement Personnel schedule Staff Staff during peak

Relative Start from LG 5 13 government leaders June 2004

Engineering Start from WWTC 2 6 technicians June 2004

Engineering technicians , Start from LARO OF WWTC 2 6 socio-economic August,2005 surveyors

Start from Chengguan Government 4 8 personnel Aug.,2005

38 No. Of Full-Time Total No. of Working Resettlement organization Resettlement Resettlement Personnel schedule Staff Staff during peak

North China Municipal Senior engineer, Engineering Design and Start from 3 8 engineer Research Institute of PRC August,2005

（project design institute）

External Monitoring and Start from 2 4 professor, engineer Evaluation Agency February 2006

Total 18 47

6.6 Measures to Strengthen Institutional Capacity Building (1) Staffing Enhancement All organizations are made up of professional technicians and administration personnel who possessed the professional knowledge and management quality. (2) Training Enhancement z Major staff training and understanding of China state resettlement policies and the requirements of ADB. z To organize Chengguan resettlement staff training so as to improve the operation quality and policy handling ability. In accordance with local resettlement methods, the resettlement staff should possess corresponding qualifications to take over resettlement. To ensure their work smoothly done, staff training and circular research activities should be organized before land acquisition and commencement of relevant staff’s work. The staff training plan was held from September 15th to 20th, 2004 with the main content of compensation methods in PRC, ADB’s resettlement policy and other relevant laws, regulations and operational knowledge. In this way, the RP was prepared and smoothly implemented by steps to realize the objectives of RP. (3) Ensuring sufficient capital and equipments so as to develop the working efficiency. (4) Establishment of perfect bonus-penalty measures concerning the demolition and resettlement so as to boost the performance of the staff. (5) Data base establishment and information feedback enhancement so as to guarantee the successful delivery of information. Meanwhile, the major issues shall be handled by resettlement leading team. (6) Enhancement of report system and internal supervision so that the problems can be settled quickly. (7) Engagement of external independent M&E institute and set up the pre-warning system.

39 7. Public Participation and Consultation

7.1 Public Participation Strategy In the process of setting up Resettlement Policy, formulating Resettlement Action Plan and conducting frank dialogue, great emphasis was placed on public participation and consultation; the opinions and suggestions from various social organizations/groups, government departments, affected village and households were gathered. All the relevant parties were encouraged to participate in the Resettlement and Rehabilitation work. During the preparatory period when the feasibility study was carried out for the project, the Implementing Agency and the design institute had extensive consultations with relevant local government departments, People’s Congress, political consultative conference, social organizations/groups and representatives from the affected villages to solicit their opinions and suggestions on issues such as site selection, construction scheme, access road, method/way of resettlement, etc. During the preparatory work for resettlement, Resettlement Office of the IA solicited extensively the opinions on resettlement and compensation policy from local governments and representatives of the affected village/township and completed the formulation of RP, with the assistance from local governments. During the implementation stage, all the relevant resettlement agencies will further promote and encourage public participation in Resettlement， Restoration and Reconstruction. Details can be seen in Table 7.1.

Table 7.1 Public Participation Strategy

Aims of Activities Implementing Date Participants Remarks activities mode agencies 1. Publication executing of draft RP RIB August 2005 All APs Handed to all APs agencies, LARO

executing 2. Publication Hand out RP Hand out the final AP September 2005 agencies, township All APs of final RP in Chinese to affected village government

executing ·Inventory of all agencies, offices, property and land Face to face IA, village ·collecting other 3. Conducting consultation October to committee, LARO socio-economic data All APs DMS with relevant November 2005 staff and officials of ·list name of all APs persons township ·prepare for the government compensation contract November 2005, Within the villager other meetings team, compensation County, township 4. Implement Villager held on the issues fund was determined LARO staff and All APs the RP committee of compensation how to invest and village leaders policy, and use of use if it was not compensation fund disbursed to APs Explain grievance 5. Formulating executing procedure for APs’ suggestions agencies, county dissatisfaction; and Placard, and town LARO September 2005 All APs Supply grievance information leaflet staff, local redress channel delivery government Publicize in the procedure officials affected village

40 7.2 Approaches for Public Participation and Measures During feasibility study of the project, Implementing Agency is actively engaged in the promotion of public participation. (1) During project design, relevant technicians from the construction company and the design institute carried out on-site investigation on several optional sites and consulted extensively with various local government departments to get their opinions and suggestions of the project. The design institute paid due respect to local government’s opinions and suggestions on the formulation and choice of all comparative schemes, and endeavoured to reduce acquisition of farmland as well as avoid the demolition of houses. (2) In order to further publicize the project and collect opinions on project construction and resettlement plan from all the relevant people from all walks of life, since project planning, relevant personnel from the Implementing Agency had been to the affected townships/villages for several times. They held meetings with relevant township/village cadres and representatives from affected household to solicit their opinions on the specific resettlement measures, and further publicized the necessity, urgency of the project and resettlement policy and etc. The villagers’ preferences and opinions on resettlement measures will be collected and considered in planning and implementation. Before compiling the RP, LARO and DI has conducted a survey on the public opinions by means of questionnaire and totally the affected 48 households is to be interviewed. The result of the survey is shown in Table 7.2.

Table 7-2 Summary of Survey Result of Public and Affected Households for Permanent Land Acquisition and Relocation Ref Question Answer Result (%) 1 2 3 4 5

1 Do you know clearly this 1. Yes 2. Not very 3. No 92 8 project? 2 Do you support this project? 1. Yes 2. No 3. Don’t care 96 4 3 Do you think this project is in A. State 1. Yes 2. No 100 whose favour? B.. the collective 1. Yes 2 No 80 20

C. Individuals 1. Yes 2. No 88 12 4 What do you think of the 1. Very severe extent of impact of potable 2. Not very severe 40 21 68 92 water on life and health? 3. Severely 4 not severe 5 To what extent of impact of 1. No impact urban living environment on your 2. Not very severe 10 10 60 20 work and your life? 3. Severely 4 very severe 6 What benefit do you think this 1.Improve living environment project has brought to you? 2..Improve work environment 96 22 28 3.Increase employment opportunities 4. Good for health 7 What negative impact this 1.No negative impact project has brought to you? 2. Engineering mode has an impact on traffic conditions 13 62 5 3. Acquisition of land will reduce income 4.Other negative impact 8 Do you understand relevant 1.Yes resettlement policy? 2.Some 30 38 32 3.No 9 In the course of resettlement, if 1. Yes your legitimate right is infringed, 2. No 92 8 do you know that you can complain? 10 Your choice of resettlement 1. Resettle nearby insimilar conditions method 2. Resettle with currency 12 84 4 3. Property right exchange

41

7.3 Public Participation During the Preparation of the RP During the preparation of the RP, the governments at all levels and villagers participated in the following activities successively: (1) In June 2004, the WWTC carried out a second survey on the socio-economy in the affected area. The representatives from affected households also took their part in the survey. Their suggestions on the project scheme, compensation for land acquisition and resettlement plan have been incorporated into project design and formulation of resettlement plan for due consideration.

(2) The WWTC and Township Resettlement Office held a series of meetings, in which local cadres of all levels and all the affected people participated, to extensively publicize the national, provincial and municipal resettlement policies in China as well as respective policy requirement from ADB. Through these meetings, public opinions on how to reduce the project impact, how to resettle the people whose land would be acquired and how to set the compensation standard for the affected households of different categories were sought/gathered, and extensive consultations were carried out, too.

(3) From August to September, 2004, the Land Acquisition Office of Implementing Agency organized an investigation team of over 10 people to carry out the investigation-- the impact of land acquisition and resettlement on assets. Relevant representatives of affected household were involved in the investigation. At the same time, the Land Acquisition Office solicited from the representative villagers their opinion on optional sites, construction scale, construction scheme, land acquisition, resettlement and compensation standard. Extensive consultations were held by the Land Acquisition Office with affected households to pay due respect to their reasonable requests and opinions. In addition, the Land Acquisition Office also carried out socio-economic survey as well as survey of public opinion & psychology. In carrying out the socio-economic survey, door-to-door investigations were conducted on the households to be resettled to investigate their willingness to resettle and their attitudes toward the Project. Comprehensive investigations as mentioned above laid the foundation for the formulation of the resettlement plan. Furthermore, in the process of resettlement planning, the Land Acquisition Office went into the villages and other grass-root villager groups to hold meetings and discussions with village cadres and representatives of affected households for permanent land acquisition and relocation/or to conduct randomized interviews with affected households for permanent land acquisition and relocation to further solicit their opinions and suggestions on resettlement, including their preference for the resettlement location and their demand/suggestions on employment & compensation policy.

(4) In the process of conducting social- economic survey of project impact, local government, affected villages and affected households for permanent land acquisition and relocation gave great support and their cooperation. It was evident that in the preparation of RP for Resettlement Plan they were involved into this work.

(5) In order to further publicize the project and get a better understanding of the public opinion on project construction and resettlement, it is necessary to solicit the opinions of affected people, relevant villages and other grass-root villager groups on project construction and resettlement before the formulation of the Resettlement Plan.

7.4 Publication of Resettlement Information In order to make sure that the affected households for relocation and local governments would have a thorough understanding of the detailed resettlement plan and the compensation method of the project, Resettlement Office plans to publicize the relevant resettlement information, which are reviewed by ADB and packed up by RO, through putting up public bulletin or 42 broadcasting in the affected area, and make it into resettlement information brochure(RIB), which has been distributed to every household for permanent land acquisition and relocation in November 2004. 3 months before the implementation of land acquisition and relocation to let the resettlers know relevant information in advance. The main content of resettlement information will include: project survey, areas covered by the planned land acquisition, property damage caused by land acquisition, compensation standard, compensation amount and resettlement policy, the rights of affected households for permanent land acquisition and relocation, opinion feedback, grievance channels, monitoring & evaluation, and etc. z Meetings i) The land acquisition leading group held 3 meetings, respectively on June 20th, August 20th and September 2nd 2004, participated by village party committee, women representatives and the vulnerable groups to introduce collectively relevant information to them and further solicited their opinions and suggestions. ii) Three months before the implementation of land acquisition and relocation, further meetings would be held to give the affected people information on relevant policies, regulations and compensation standard in order that they may get prior notice early enough and make enough preparation thereof. z Publicizing construction planning, construction schedule and resettlement policy via TV, radio and newspaper. i) Participation in livelihood and production measures after relocation The reallocation and adjustment in farm land as well as the initiation of other agricultural development programs included the participation of all villagers within the village. ii) Participation in the management and use of land compensation fund Compensation fund from farm land belongs to the village collectively. No department or individual may withhold or misuse that compensation fund. After the fund is distributed to the village as a collective, it was handed out to the affected households to keep the special fund for special use. iii) Public Participation in the Construction The project construction will have certain impact on the local communities, to a greater or lesser from village to village. In order to make sure that the affected people get benefit from project construction, their participation into construction is encouraged. Preference will be given to the locals in terms of labor and the supply of materials.

7.4.1 Resettlement Information Brochures (RIB) To ensure that every household is familiar to the resettlement, LARO and IA compiled a brochure (Chinese) which covered the main contents including brief introduction of the project, site of land acquisition, land type, quantity, affected households, APs, compensation rates, disbursement procedure of compensation fund, resettlement methods and measures, resettlers’ rights and interest, suggestion feedback, grievance channel, M&E and specific activities of RP. The RIB has been handed out to the affected households and the relevant village committee in November 2004.

7.4.2 Implementation Plan of RP I) Land acquisition and compensation Land acquisition and compensation is completed by relevant organizations’ cooperation and the specific procedure shows as follows: (1) The DI should supply detailed map of land acquisition scope to determine the scope and its acreage

43 (2) Nanle WWTC should apply for planning license and redline map to planning department and apply for land use to land administrative department (3) Approval of application (4) WWTC and County State Land Resources Administrative Bureau sign agreement on land acquisition in package (5) County State Land Resources Administrative Bureau should negotiate with relevant town and village on land compensation, agreement signature and transact land use procedure (6) Disbursement of compensation fund (7) Transaction of legitimate procedure (8) Land acquisition of the Project.

II) Livelihood Resettlement and Restoration The livelihood resettlement and restoration should be carried out by the affected village committee with the following working procedure: (1) Within the villager team on task of resettlement, to organize villager meeting or villager meeting with participation of resettlers to study overall scheme for land readjustment, allocation and livelihood restoration (2) Publicize overall scheme for land reclamation, readjustment, allocation and livelihood restoration to further collect the opinions of all the villagers in the villager team and resettlers; (3) Land readjustment and allocation (4) Negotiate the resettlement scheme for labor force with relevant enterprises and sign agreement on labor force resettlement or formulate specific schemes for livelihood and labor force resettlement (5) Publicize scheme for labor force resettlement and the name list of the resettled, accepting supervision of villagers (6) Employment of labor force.

7.5 Public Participation Plan During Implementation of RP I) On August 10th 2004 WWTC organized staff to carry out the implementation of RP to hold consultation meeting on resettlement and rehabilitation program and to formulate resettlement and rehabilitation plan. The staff conducted detailed survey on the existing situations and socio-economy within the scope of land acquisition. The representatives of village committee and villager team whose land has been expropriated participated into the survey to have a full understanding and consideration of land compensation and resettlement activities. II) WWTC and CGRO organized resettlement meeting and propaganda meeting for relevant laws and regulations and ADB’s resettlement policy participated in by the cadres of villager team, representatives and APs. Through these meetings the village and household should

44 have full understanding of the national, provincial, municipal resettlement policies and ADB’s resettlement policies. Meanwhile their opinion has been accepted earnestly. On the basis of their opinions and suggestions that how to minimize impact, how to expropriate land and resettle was more proper and the compensation rate which takes both the parties’ interest, the public consultation has been conducted for later consensus. III) During the kind survey of the land acquisition impact, LARO of WWTC took out some staff to set up a survey group with the participation of all the resettlers’ representatives. LARO also accepted villager representatives’ opinion about plant site selection, construction scale, construction scheme, land acquisition and resettlement and compensation rates and the office respected resettlers’ legal demand and opinion comprehensively to maintain the legitimate rights and interests of the resettlers. During the implementation of RP, LARO went deep into the villager team to hold recession with participation of cadres of villager team and representatives or visit resettlers again at random to further and specifically accept their opinions and suggestions on land acquisition and resettlement such as how to readjust land, employment training and resettlement for surplus labor force and the implementation of land acquisition and resettlement policies to ensure that the resettlement is carried out openly, impartial and proper. Otherwise, the resettled households can sue in legitimate approaches to maintain their own legitimate rights and interests.

7.6 Grievance Redress Procedures 7.6.1 Targets for Grievance Redress Procedure In order to safeguard the relevant personnel have proper resolutions to the issues on land acquisition and resettlement, the detailed grievance redress procedures have been established on purpose that it can guarantee the relevant persons’ opinions about the project can be solved fairly, properly and rapidly. The procedure is simple, feasible, open, and fair. In the long view, it aims to prevent APs from forcedly resorting to complicated formal channel to express grievance and opinions, namely, to redress relevant persons’ grievance or opinions inner the project management organizations, which minimizes impact on project progress and makes the redress process more efficient as well.

7.6.2 Grievance Redress Approaches In the process of formulating and implementing Resettlement Plan for the project, the participation of affected households for resettlement and relocation is always encouraged. However, more or less problems will arise. In order to solve these problems in a timely and effective way and guarantee that project construction and land acquisition could be carried out smoothly, a transparent and effective grievance channel has been established for the affected person of the project in addition to existing appeal and grievance channels of local governments at all levels. The detailed procedures run as follows:

45 Stage 1: If the affected persons/enterprises are not satisfied with the planning or implementation of resettlement and relocation, they may make oral or written appeals to the CGRO(IA), village office or the IA of the Project. Relevant agencies should resolve the issue within 2 weeks.

Stage 2: If the affected persons/enterprises are not satisfied with results of stage 1, after receiving the results, they may appeal to the LARO of WWTC, who in turn should resolve the issue within 2 weeks.

Stage 3: If the affected persons/enterprises are still not satisfied with results of stage 2, after receiving the decision from the LARO, they may appeal to the Leading/Decision-Making Team for Resettlement at the municipal level and ask for administrative arbitration. The arbitral authority should make its decisions within 10 days.

Stage 4: If the affected persons/enterprises are still not satisfied with the arbitral decision from the arbitral authority, after receiving the decision, they may file a civil suit based on law of civil procedure. The affected person may sue for any aspect of the resettlement and relocation, including compensation standard, etc.

7.6.3 Grievance Redress Scope In the actual implementation process of resettlement, the APs can dispute any aspect of resettlement and payment of compensation including the compensation amount. They were informed of the procedure through the resettlement information brochure. Also this information was delivered to the APs via public meetings preceding land acquisition; the resettlers would get satisfactory redress to keep their legal rights. The organization for accepting the APs grievance does not charge any cost; instead, the cost caused by the appeal would be listed in the contingency paid by the PMO. Since the activities were done comprehensively and resettlers were satisfied in the whole resettlement process, there has not been any formal appeal made regarding the land acquisition, resettlement and project construction.

46

Figure 7.1 Grievance Redress Procedures

Municipal, County People’s State Land Resources Court Administrative Bureau

Monitoring and Evaluation Municipal, district LG Institute discipline inspection

Municipal, district LARO of WWTC Grievance Redress

CGRO

APs

47

8. Monitoring & Evaluation

In order to implement land acquisition and RP strictly due to demands, regular M&E should be carried out in the implementation stage. The M&E on RP can be divided into two parts: internal and external M&E.

8.1 Internal M&E The Leading Team, relevant functions and project preparation sect are responsible for the internal M&E with internal follow-up monitoring office to step into the affected village and group to conduct field survey to master the actuality to safeguard timely resettlement due to project plan and to protect APs’ benefits.

8.1.1 Main Monitoring Contents z Compensation fund Payment z Grievance acceptance z Fund utilization z income restoration/ training plan z assistance to vulnerable groups.

8.1.2 Internal Monitoring Objectives z Inspecting the completing progress of land acquisition z Safeguarding the establishment and being straightway communication and coordination channels between the project management personnel and the APs. z Safeguarding compensation payment for the APs full and punctual. z Ensuring the APs’ grievance being handled in the given time. z Strictly ensuring compensation payment for land loss to the APs and provision of resettlement subsidy due to rules and regulations to stop detaining or embezzlement. z Compile the M&E result into report to submit to ADB, and show it in public.

8.2 External M&E The external M&E on RP should be carried out by an organization or institution which is extremely independent of project executing agencies and local government. The project is proposed to retain an independent institution to take charge of external M&E by means of bidding invitation.

8.2.1 External Monitoring Objectives z Confirming whether APs’ welfare is restored or maintained after completion of land

48 acquisition z Identifying the restraints in policy and implementation if no restoration or maintenance z Evaluating the general efficiency, result, impact (APs’ behavior reaction included) and the sustainability of land acquisition and demolition policy and practice.

8.3 Means and Methods The general method is monitoring the activities, evaluating project impact and safeguarding public participation of all the APs, especially of women and vulnerable groups. The monitoring tools include both qualitative and quantitative ones: z The baseline survey on the affected households is a representative sampling survey, which categorize due to gender and vulnerable groups to get relevant information of main indicators such as compensation distribution, efficiency, validity, impact, sustainability and etc. 20% of the APs were taken as random samples. z Group discussion allows consultation from every related party of M&E (local government, host site personnel, NGO, community leaders and affected groups). z The talks with key persons, visiting the significant persons with relevant experience in land acquisition, resettlement and implementation such as local leaders, village leaders. z Community public meetings: Holding the public meetings in the resettlement site, and explicating the information on the demolition resettlement. z Direct Structural/objective observation: Carrying out filed study on the implementation of demolition and resettlement and cross-visiting the individuals and groups for the messages. z Informal survey or dialogues: Adopting non-sampling way to carry out informal survey on APs, main villages, workers, resettlement staff and those of executing agencies.

8.4 Reporting The progress of implementation should be reported to the IA quarterly.

During the process of RP implementation, the external M&E institution should compile and submit M&E reports to ADB once half a year and then it should compile socioeconomic survey and evaluation reports every year until the APs’ livelihood was fully restored.

The M&E reports on project half-completion and total-completion should comprise evaluation reports on project key points, detailed interpretation of compensation payment and other measures to maintain or increase a little APs’ socioeconomic situations in “no project” state. And moreover, the experience and lessons from the land acquisition and resettlement should be included in the report for policy and method formulation in the future.

49 8.5 Resettlement M&E Outline

Please see Table 8-1 for resettlement M&E outline.

Table 8-1 Resettlement M&E Outline

M&E Types of M&E Indicators Institution M&E ·Has the capacity building and training activities been carried out as planned? ·Has resettlement implementation being completed due to the Budget and negotiated implementation schedule? time frame ·Has the compensation fund be paid to the resettlement office on time? ·Has all the land for project construction been acquired or occupied? ·Have all the APs got their entitlements as stipulated in Entitlement Delivery of Matrix? AP ·Have the APs received compensation fee on time? Entitlements Internal ·Has the income and livelihood rehabilitation been carried out as

M&E planned? ·Has the consultation been carried out as planned? Is the RIB ready to be distributed to APs? Consultation, ·How many APs know about their rights? How many APs know Grievance whether they are entitled to the rights? and special ·Has any AP used grievance redress procedure? What is the Issues result? ·Has the problem been solved？ ·Has the APs’ income and expenditure pattern changed compared to that before the subproject was carried out? Effect M&E ·Has the living expense of the APs changed? Does their income match to the changes? ·location, householder, nationality, housing types Basic ·family member, structure, ages, education background and External Information technical skills M&E on Affected ·land and other resources owned and the usage pattern of those Households resources ·income source and level, occupation and employment type

50 Restoration ·Whether do the APs obtain main substitutes in culture and of living society? standard ·Has the compensation fee been discounted due to depreciation and discounts? ·Is the compensation fee enough for the APs to recover their lost assets? Restoration ·Have the affected enterprises received enough compensation to of livelihoods reconstruct the enterprise? ·Have the farmers been provided with opportunity to profit getting? Are the measures effective and sustainable? ·Have the APs regain their living standards after the resettlement by using the proposed rehabilitation measures? ·How much do APs know about the resettlement process and their entitlements? Levels of AP ·How do APs assess their living standards and livelihood after the Satisfaction rehabilitation? ·Do the APs know about the grievance redress procedure and conflict solving approaches? ·Have the APs and their possessions been correctly recorded? Effectiveness ·Have the time frame and budget been carried out sufficiently? of the RP ·How does the IA deal with contingencies？

51 9. Resettlement Budget

The costs incurred by land acquisition and resettlement are included in the overall budget of the project. The total cost of land acquisition and resettlement for Nanle WWTP is estimated to be CNY 3.17 million.

9.1 Contents of Resettlement Costs 9.1.1 Land Acquisition & Resettlement 1）Permanent land acquisition According to the project plan and the contract signed between WWTC and Nanle Land Administrative Bureau as well as the agreement signed with Dongjie village committee, the permanent land acquisition of this project is 42.6 mu of collective land, along with compensation fee is CNY2.44 million, including land compensation, resettlement subsidies, compensations for standing crops, farmland reclamation, land use cost for augmenting construction and administrative cost.

2）Temporary land use There is no temporarily land occupation for this project. 3）Farmland Occupancy Tax The occupancy tax for permanent farmland acquisition amounts to CNY 0.12 million. 4）Compensation for ground attachments Affected ground attachments include 2 kinds, for mature trees it is CNY 40/tree, and for graves it is CNY100/grave. Total compensation is CNY 6,000.

9.1.2 Facilities The compensation for facilities includes 2 items of 2 kinds, of which electric poles with CNY 120 per pole as compensation rate, a pumped well with CNY 5000 and totally CNY 5,400 of compensation.

9.1.3 Other Costs The designing & reconnaissance costs are 2 percent of the land acquisition, resettlement, infrastructures and facilities. The M&E costs are 2 percent of the land acquisition, resettlement, infrastructures and facilities. The management costs are 3 percent of the land acquisition, resettlement, infrastructures and facilities. The training fee is CNY 38,400 for several training classes.

52 9.1.4 Contingencies Contingencies budgeted for is 15% of the total cost of land acquisition and rehabilitation, of which 10% is physical contingency owing to the changes of qualities in the course of resettlement; 5% is price contingencies for currency inflation and any prices changes during the resettlement.

9.2 Budget Table on Resettlement Costs The land acquisition and resettlement cost budget of Nanle County Seat Wastewater Treatment Project is shown in Table 9-1.

9.3 Resettlement Investment Plan Table 9-1 Cost Estimation for Land Acquisition and Resettlement of Nanle WWTP project

Compensation Cost Type Unit Quantity Rate（Yuan/unit） （10,000）

A. Land Acquisition and Resettlement 256.49 i) Permanent Land Acquisition 243.67 Compensation and Resettlement Subsidy mu 42.6 31200 132.91 Compensation for Standing crops mu 42.6 1300 5.54 Arable land Reclamation mu 42.6 5200 22.15 Land use cost for augmenting construction land mu acquisition 42.6 18000 76.68 Management cost for land acquisition mu 42.6 1500 6.39 ii) Arable land occupancy tax mu 42.6 2867 12.21 iii) Compensation fund for ground attachment(2types

with 2items) 0.6 Tree tree 86 40 0.34 Grave grave 26 100 0.26 B. Infrastructure and facility 0.54

i) Facility(2 types with 2 items) 0.54

Electric pole pole 3 120 0.04 Pumped well well 1 5000 0.5 Subtotal of A&B 257.03 C. Other costs 21.83 Design and reconnaissance 2% 5.14 M&E 2% 5.14 Administrative cost 3% 7.71 Training cost 3.84 D. Contingencies 38.55 Physical contingency 10% 25.70 Price contingency 5% 12.85 E. Total 317.41

53

Table 9-2 Resettlement Investment Plan by Stages

Investment Investment by Stages(CNY10,000) Item (CNY10,000) 2005.5 2005.6～2005.12 2006.1～2006.5 2007 A. compensation 243.67 4.68 100.62 138.37 67.08 for land acquisition B. Compensation 0.6 0.6 for ground attachment C. Compensation for facilities 0.54 0.16 0.27 0.11 D. other cost 21.83 8.73 10.58 5.82 E. contingencies 38.55 16.25 11.47 10.83 F. relevant tax 12.21 3.21 6.78 3.44 Total Costs 317.41 4.68 128.97 168.07 87.28 - proportion 100.00% 1.47% 40.63% 52.95% 19.64%

10. 10 mplementation Arrangements and Schedule

As per the schedule, the wastewater treatment project commenced in March 2006. Land acquisition and resettlement activities commenced in December 2005 and were completed by March 2006 to be in conjunction with the project construction schedule.

10.1 Principles to Formulate the Resettlement Schedule z The scope of land acquisition and demolition should be eventually determined due to engineering plan, and the determination should be completed prior to the kind measurements and calculation in land acquisition and demolition. z The land acquisition should be prior to the constructions of each area. z The labor resettlement should be finished prior to the land acquisition. z The calculation and distribution of the compensation should be done before land acquisition or demolition and after agreement signed.

10.2 Overall Schedule of Land Acquisition and Resettlement Activities The overall schedule of land acquisition and resettlement activities is studied out according to the schedule of land acquisition and resettlement preparation and implementation. See Table 10-1 for the overall schedule.

54 Table 10-1 Schedule of Land Acquisition and Resettlement 2004 2005 2006 2007 LAR act i vi t i es 5678910 11 12 12345678910 11 12 12345678910 11 12 12345678910 11 12 Pl anni ng of LAR Conduct detailed survey of Aps Apply the permission of land acquisition and house demolishment Finalize the choice of resettlement areas of Aps Identify and confirm poor and vulnerable APs Finalize compensation/resettlement strategies Negotiate and sign contracts LAR activities Provide compensation payment Allocate replacement land Demolish structures Income Rest or at i on Employ Aps during construction agricultural service and training new skills training other income restoration program special asistance to vulnerable groups Civil works Complete Detailed design construct WWTP Construct pipeline network M&E Establish internal m&e system, procedures and formats Engage M&E agency Approve TOR by ADB Training of resettlement staff Monitor land acquisition and resettlement activities 55 Monitor income restoration programs Conduct external evaluation 11. Due Diligence and Retrofit Measures

11.1 Due Diligence To speed up the project, Nanle Wastewater Treatment Company selected its preferred site in 2004 and began the process of land acquisition in late 2005. However, this was done in advance of (i) ADB approval of the RP and (ii) local land acquisition approvals. For these reasons, ADB requested the IAs to conduct due diligence and revise their RP to reflect the actual status of implementation. Accordingly, the RP revisions were carried out and are reflected.

11.1.1 Status of Land Approvals and Transfer of Ownership Due to the FSR approved by Henan Development and Reform Committee in May 2005 and the detailed design approved in April 2006, the amount of land to be acquisitioned was reduced from 60 mu to 42.6 mu, which involved the first grade farmland of Team 1 in Dongjie Village. On November 26th 2005 the Nanle County Government, Nanle Land Administration Bureau, Nanle Development and Reform Committee, Nanle Urban Construction Bureau, Chengguan People’s Government, Dongjie village committee and Party’s Branch, Group head and villager representatives carried out the field measurement and satellite localization to determine the boundaries and area of land acquisition. Then on November 28th 2006 the contract on permanent land acquisition was signed with the Dongjie Village committee. The Nanle County Land Administration Bureau, with the municipal bureau, conducted the pre-check for land acquisition certificate, and the result of the pre-check and other data of land acquisition were submitted to the Henan Province Land & Resources Department. The land use license was approved by the Provincial Land Resource Department on 16 August 2006, and the land ownership was transferred to the wastewater treatment company from Dongjie Village.

11.1.2 Compensation Rates and Payment The compensation rates are carried out in compliance with the relevant state, provincial and municipal regulations (the specific articles can be seen in the RP). The Project expropriated 42.6mu land of first grade. Calculated by CNY1,300/mu as AAOV, the compensation for land acquisition was determined 9 times of AAOV, and resettlement subsidy was 15 times and totally 24 times *CNY1,300/mu. That for standing crops was paid CNY1,300/mu of a whole annual output. For the ground attachment, the compensation rate was determined CNY100/grave, CNY500/pumped well, CNY120/cement electric pole and CNY40/tree. The compensation for land acquisition, resettlement subsidy, compensation for standing crops was handed out to the affected households (48 households) on December 26th 2005. The procedure agreed on and followed was for the project IA to pass the compensation

56 funds to county land administration bureau, who passed the funds to Chengguan township government, and in turn to the village committee. The village committee passed the fund directly to the affected persons. In this process, neither the village committee nor village groups retained anything, and the full amount of CNY1.43 million was passed to the affected persons.

11.1.3 Allocation of Compensation The wastewater treatment company allocated the total compensation fund to the Dongjie Village Committee via the County Land Resource Bureau. It was then passed to Chengguan Township, who transferred it to the village committee who provided the full amount to the APs.

11.1.4 Land Readjustment using Reserve Land After the compensation fund totaling CNY 1.43 million was handed out to the village committee, the village committee and group organized and agreed with villagers to conduct fair land readjustment. This followed the loss of 42.6 mu land due to the project. Then cash compensation was paid to all 48 affected households on the basis of the net land lost by each household. On this basis, the total compensation fund of CNY 1.43 million was handed out to the affected households with no funds being retained by other authorities. Both the land readjustment using reserve land and the allocation of the compensation fund were on the basis of averaging the land per capita. This process represented the villagers’ desire for equality and rationality. The affected households are satisfied with this arrangement. Follow-up will help to ensure the project be implemented smoothly.

11.1.5 Fund Utilization for Income Rehabilitation During the entire land acquisition and compensation process, the villagers’ opinions were taken fully into consideration. After the compensation funds were distributed, the IA arranged for the APs to recover their preferred production and income means as quickly as possible. This process was facilitated by the following activities:

i) Provision of skills training on setting up small businesses, especially for trade and transportation services. This enabled the APs to increase their capacity to consider their options for investment and to benefit from new opportunities;

ii) In case of effective use of the compensation fund, the IA encourages and helps farmers in developing their new business activities, whether for enhanced primary production such as for the most profitable crop production and to develop, greenhouses for out-of-season vegetables, as well as for enhanced animal or poultry breeding, for

57 investment in existing or new secondary industries such as for crop processing into food products and establishing cottage industry activities for the fabrication of saleable items, and tertiary industry activities such as for catering, transportation services, and maintenance and repair workshops..

The villagers have expressed their full satisfaction with the conduct and assistance provided for making these adjustments to their lifestyles and livelihoods.

11.1.6 Livelihood Restoration To encourage and help the affected households to keep their income of that year from decreasing and to increase a little, they were instructed to engage in production and business of low investment, low risk and high efficiency, including some animal breeding, and some small-sized business to make full use of investment. Until now the result seems quite good. There are 5 households working in breeding, 3 in chicken breeding, 4 sideline agricultural product processing (2 in flour processing, 1 in oil milling, 1 in fine dried noodles processing), 1 in waste and old timber processing, 2 in coal trade, 2 in vehicle goods transportation, 2 in passenger transportation, 4 in small-sized commercial and service industry, 3 contracting others’ land, 2 in agricultural service (plough, irrigating, and reaping) and 8 working outside. In half a year the employment of the affected households amounted to 36 persons (75%) and the rest (25%) are searching suitable employment. In addition, some of the affected households in Team 1 of Dongjie Village have been employed in project construction to increase their income. These funds help to ease the transition to new production measures and shows that the ADB policy is practical and feasible.

11.1.7 Internal Monitoring and Supervision The Leading Group, relevant agencies and project preparation section jointly set up an internal follow-up monitoring office of 3 staff to step into the affected village and group to conduct field survey to understand the actual situation and to safeguard timely resettlement and to protect APs’ benefits. In addition, the external field monitoring and supervision has been conducted twice, mainly to monitor the disbursement of compensation fund, grievance redress, income restoration, training implementation, fund utilization and assistance to the vulnerable groups.

11.1.8 Implementation issues/problems/grievances During the whole process of the land acquisition and resettlement, only one problem regarding the compensation fund for standing crops occurred. In the original plan the compensation rate was determined CNY780/mu of one season. However in the actual implementation, due to the strong demand of village committee, group and villagers many times, the project owner accepted the request of APs to increase the compensation rate by CNY520/mu of one whole year. After the Leading Group and government studied and agreed on this solution, Nale Water Treatment Company paid an additional CNY22,152

58 which avoided conflicts and kept the project implementing smoothly. This made the affected villagers quite satisfied. The ground attachment was cleaned up and the land was measured on time for land requisition. To sum up, from the survey on land acquisition and village, group, land measurement, localization, cleaning up ground attachment, fund allocation to project implementation, the project has got strong support and cooperation from the village committee, group and villagers to keep the project implementing smoothly.

11.2 Retrofit Measures To improve production rehabilitation and increase employment and income, the following measures were put into action one-by-one. The affected households have expressed their full satisfaction with the present outcome of these measures in terms of income restoration: i) strengthening of the internal and external M&E on resettlement; ii) providing more training to the affected households (especially women) to ensure the employment of the households reaches 100%; iii) helping the affected households to develop production and business, strengthen the management to increase profit and to double the average income per capita in 1 to 2 years; iv) strengthening the communication and understanding with the affected households to help them to solve problems; v) providing employment opportunities to the affected households at every opportunity during project construction for temporary workers and project operation for supporting staff; vi) following up the resettlement progress and support the affected households, avoiding and solving grievances based on needs of the society and villager’s satisfaction; vii) listing all costs induced by the implementation of these measures in the contingency budget to ensure the availability of funds; and In the premise of conducting resettlement well, the project construction would be conducted to keep the normal production and business to do benefit to the society after the completion of the Project. The external monitor will continue to conduct annual evaluation of household income and livelihood restoration for another two years.

59 Appendix 1 Questionnaire of Households whose Land is Expropriated

Questionnaire of The Households whose Land is Expropriated No. Name of the Family Laborer Area of Area of Average Average household member (person) acquire contracte land per land per whose land (person) d land d land household household is (mu) (mu) before after land expropriated land acquisitio acquisition n (mu) (mu) 1 Li Chaowen 4 2 0．8692 3．68 3．68 2．8108 2 Hao Yushan 4 1 0．8692 3．68 3．68 2．8108 3 Wu 4 1 0．8692 3．68 3．68 2．8108 Shanbao 4 Wu Anmin 4 2 0．8692 3．68 3．68 2．8108 5 Huo 4 1 0．8692 3．68 3．68 2．8108 Junqiang 6 Wang 4 1 0．8692 3．68 3．68 2．8108 Liukun 7 Feng 4 3 0．8692 3．68 3．68 2．8108 Zhipeng 8 Li Xianglin 4 1 0．8692 3．68 3．68 2．8108 9 Tian Yanmin 4 2 0．8692 3．68 3．68 2．8108 10 Li Juzhong 4 2 0．8692 3．68 3．68 2．8108 11 Li Zhongwei 4 2 0．8692 3．68 3．68 2．8108 12 Li 4 3 0．8692 3．68 3．68 2．8108 Baochuan 13 Li Shenwei 4 1 0．8692 3．68 3．68 2．8108 14 Li Hanwei 4 1 0．8692 3．68 3．68 2．8108 15 Ren Zhiyi 5 2 1．0865 4．6 4．6 3．5135 16 Ren Xueqin 5 2 1．0865 4．6 4．6 3．5135 17 Huo juxing 5 2 1．0865 4．6 4．6 3．5135 18 Huo Junwei 5 2 1．0865 4．6 4．6 3．5135 19 Huo Junmin 5 2 1．0865 4．6 4．6 3．5135 20 Li Guolin 5 2 1．0865 4．6 4．6 3．5135 21 Li Xuzi 5 1 1．0865 4．6 4．6 3．5135 22 Li Wenle 5 1 1．0865 4．6 4．6 3．5135 23 Tian Tongxi 5 2 1．0865 4．6 4．6 3．5135 24 Tian 5 2 1．0865 4．6 4．6 3．5135 Tongxing 25 Li Jianxiu 5 2 1．0865 4．6 4．6 3．5135 26 Li Dianchen 5 3 1．0865 4．6 4．6 3．5135

60 27 Li Dianqing 5 2 1．0865 4．6 4．6 3．5135 28 Li Dianfang 5 2 1．0865 4．6 4．6 3．5135 29 Li 6 3 1．3038 5．52 5．52 4．2162 Chaochen 30 Li Cuifen 6 3 1．3038 5．52 5．52 4．2162 31 Li Xuchao 6 2 1．3038 5．52 5．52 4．2162 32 Li Mingyuan 6 2 1．3038 5．52 5．52 4．2162 33 Li Baokun 6 3 1．3038 5．52 5．52 4．2162 34 Li Shanhu 7 3 1．5211 6．44 6．44 4．9189 35 Li Baomin 3 2 0．6519 2．76 2．76 2．1081 36 Wu 3 1 0．6519 2．76 2．76 2．1081 Junsheng 37 Huo Junling 3 2 0．6519 2．76 2．76 2．1081 38 Li 3 1 0．6519 2．76 2．76 2．1081 Guangming 39 Li Guanglei 3 1 0．6519 2．76 2．76 2．1081 40 Zhang 3 1 0．6519 2．76 2．76 2．1081 Juwei 41 Li Baotian 3 1 0．6611 2．76 2．76 2．0989 42 Li Guodong 2 1 0．4346 1．84 1．84 1．4054 43 Yang Ling 2 1 0．4346 1．84 1．84 1．4054 44 Xu Xianwen 2 1 0．4346 1．84 1．84 1．4054 45 Yang 2 1 0．4346 1．84 1．84 1．4054 Junhong 46 Tian 2 2 0．4346 1．84 1．84 1．4054 Jiansheng 47 Ren 1 1 0．2173 0．92 0．92 0．7027 Zhizhong 48 Ren 1 1 0．2173 0．92 0．92 0．7027 Guanqun Totally 48 households Total 196 87 42．6 180．32 180．32 137．72

61 Chengguan Town Nanle WWTP

Nanle County

Figure 1-1: Map of Nanle County showing the Project Site.

62