RP: PRC: Songshan Reservoir Subproject in Linqu County, Risk

Resettlement Planning Document

Document Stage: Final Project Number: 40683 August 2010

PRC: Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project

Final Resettlement Plan for Songshan Reservoir Subproject in Linqu County (English)

Prepared by the Shandong Provincial Government.

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.

Linqu County Songshan Reservoir Risk Mitigation Project

Under

Risk Mitigation of Endangered Reservoir Project in Shandong Province

The People’s Republic of China

Resettlement Plan

Water Resources Design and Research Institute of Shandong Province

December 2009

Letter of Endorsement

Linqu County Water Resources Department (LCWRD) received the approval of constructing the Risk Mitigation of Songshan Reservoir Project in Linqu City from the related departments. This Project is proposed to be started in January 2010, and completed by November 2010. Linqu County Government, through Ministry of Finance, has requested a loan from the Asian Development Bank (ADB) to finance part of the Project. Accordingly, the Project will be implemented in compliance with ADB social safeguard policies. This Resettlement Plan (RP) represents a key requirement of ADB and will constitute the basis for land acquisition and resettlement. The RP fully complies with requirements of the relevant laws, regulations and policies of the People’s Republic of China (PRC), Shandong Province and Laiyang City Government as well as complies with ADB’s policy on involuntary resettlement. Linqu County Government and LCWRD hereby affirm the contents of this Resettlement Plan prepared dated in December 2009 and ensures that the resettlement will be made available as stipulated in the budget. LCWRD has discussed the draft resettlement Plan with relevant local officials and has obtained their concurrence. Linqu County Songshan Reservoir Project Management Bureau under Linqu County Government was authorized as the responsible agency to manage the implementation of the Project and related resettlement activities.

Governor, Linqu County Government

______(signature)

______(date)

Abbreviation ADB Asian Development Bank AHs Affected Households APs Affected Persons EA Executing Agency EIA Environmental Impact Assessment FSR Feasibility Study Report IA Implementing Agency IMA Independent Monitoring Agency LLAB Linqu Land Administration Bureau LAR Land Acquisition and Resettlement LCG Linqu County Government LCWRD Linqu County Water Resources Department M&E Monitoring and Evaluation SRPMB Songshan Reservoir Project Management Bureau PMO Project Management Office PPTA Project Preparatory Technical Assistance PRC People’s Republic of China RP Resettlement Plan SPMO Shandong Project Management Office SES Socioeconomic Survey TA Technical assistance TOR Terms of reference

TABLE OF CONTENTS

EXECUTIVE SUMMARY ...... 1 1. BRIEF INTRODUCTION OF THE PROJECT ...... 3 1.1 BACKGROUND ...... 3 1.2 DESCRIPTION OF THE PROJECT ...... 3 1.2.1 Location ...... 3 1.2.2 Scale and contents of the project ...... 4 1.2.3 Investment budget and schedule of the project ...... 4 1.2.4 Social and economic benefits of the project ...... 5 2. PROJECT IMPACT ...... 6 2.1 SURVEY OF PROJECT IMPACT ...... 6 2.2 RESULTS OF PROJECT IMPACT SURVEY ...... 6 2.2.1 Land Affected by the Project ...... 6 2.2.2 Houses and affiliated facilities to be demolished ...... 7 2.2.3 Ground Attachments to be affected ...... 7 2.2.4 Ethnic Minorities and Vulnerable Groups Affected by the Project ...... 8 3. NATURAL, SOCIAL AND ECONOMIC SITUATIONS IN THE PROJECT AREA ...... 9 3.1 NATURAL CONDITIONS ...... 9 3.2 SOCIAL AND ECONOMIC SITUATIONS ...... 9 3.3 SOCIO-ECONOMIC SITUATIONS OF THE TOWNS (OFFICES) AND VILLAGES IN THE PROJECT AREA ...... 9 3.3.1 Socio-economic Situations of the Wujing Township ...... 9 3.3.2 Basic situation of the villages affected by the project...... 10 3.4 BASIC INFORMATION OF THE HOUSEHOLDS AFFECTED BY THE PROJECT ...... 10 3.4.1 Survey Results and Analysis...... 11 3.5 SOCIAL AND ECONOMIC IMPACT ON THE AFFECTED POPULATION ...... 13 4. COMPENSATION POLICY AND STANDARD ...... 14 4.1 DAPPLICABLE LAWS, REGULATIONS & POLICIES FOR RESETTLEMENT ...... 14 4.2 COBJECTIVES AND PRINCIPLES OF RESETTLEMENT ...... 15 4.3 ELIGIBILITY OF COMPENSATION ...... 15 4.4 COMPENSATION POLICY AND STANDARD ...... 15 4.4.1 Description of Farming in Drawdown Area ...... 11 4.4.2 Compensation and Resettlement Principles ...... 11 4.4.3 Basis and Standards of Compensation for Temporary Crops ...... 11 4.4.4 Compensation Standard for Scattered Trees ...... 11 4.4.5 Compensation Standard for Houses Demolotion and Attachments ...... 11 4.5 ENTITLEMENTS MATRIX ...... 16 5. RESETTLEMENT REHABILITATION ...... 18 5.1 RESETTLEMENT STRATEGY ...... 18 5.1.1 Resettlement Targets ...... 18 5.1.2 Resettlement Tasks ...... 18 5.2 PRODUCTION REHABILITATION PLAN ...... 18 5.3 HOUSE STRUCTURES RECONSTRUCTION ...... 199 5.4 JOB OPPORTUNITIES FROM THE PROJECT ...... 19 5.5 INCOME RESTORATION PLAN OF WOMEN ...... 19 5.6 TRAINING FOR THE AFFECTED PERSONS ...... 20 6. RESETTLEMENT COST ...... 21 7. POST-RESETTLEMENT PROGRAM FOR RESETTLERS IN RESERVOIR AREA ...... 23

7.1 INUNDATION RESETTLEMENT DURING CONSTRUCTION PERIOD ...... 23 7.2 BACKGROUND AND REMAINING ISSUES ...... 23 7.3 POST-RESETTLEMENT SUPPORT APPROACHES ...... 24 7.4 POST-RESETTLEMENT SUPPORT IN RESERVOIR AREA ...... 24 8. INSTITUTIONAL ARRANGEMENT AND SCHEDULE ...... 26 8.1 RESPONSIBLE INSTITUTIONS FOR RESETTLEMENT IMPLEMENTATION ...... 26 8.2 TRAINING PLAN FOR RESETTLEMENT MANAGEMENT STAFF ...... 26 9. PUBLIC PARTICIPATION ...... 27 9.1 PUBLIC PARTICIPATION ...... 27 9.2 GRIEVANCE PROCEDURE ...... 27 10. MONITORING AND EVALUATION ...... 29 APPENDIX 1 TERMS OF REFERENCE FOR EXTERNAL MONITORING ...... 30

Executive Summary

Songshan Reservoir is located about 25km south-west of Linqu County, the upstream of Shihe River, which is the tributary of Mihe River. The main project of the Reservoir was built in October 1966 and completed in January 1970 for water storage, which is a medium sized reservoir mainly constructed for flood control and irrigation, and can be also used for fish breeding and power generation. The reservoir flood control capacity is lower than the recent abnormal flood standard issued by the Ministry of Water Resources. There are also many quality problems in the project, resulting in the unsafe operation. To ensure the reservoir and people's lives and property in the downstream, bring the economic and social benefits of the reservoir into full play, it is necessary for the implementation of risk mitigation and reinforcement.

After the operation of Songshan Reservoir, the drawdown area came into being. Villagers around the reservoir grow some temporary crops on the drawdown area. According to geographical location, topographical conditions, flood control works and river situation of Songshan Reservoir, the main parts involved in Project impacts on land and resettlement is the inundation impacts of reservoir land from the elevation of 289.0 meters to 283.5 meters, which had been acquired during the construction of the reservoir in 1960. The construction of the Project will have no permanent land acquisition impacts or temporary land use impacts. However, since the reservoir operated at the water level 283.5m for a certain period, some villagers around the reservoir started farming on the un-used stated-owned land in drawdown zone. The proposed improvements of the reservoir will lead to some impacts on their farming in this designated area. This Resettlement Plan was prepared to address the impacts to their lives. Totally, 235.5 mu farmland, including 225 mu irrigated land, vegetable land 10.5 mu and orchard 18.5mu will be affected. 56 households or 160 persons of 6 villages (Nuanshuihe, Xijing, Dongjing, Gouhe, Ruitou and Shangzhuang) of Wujing Township will be affected, of which 2 households with 6 persons from Gouhe Village will be affected by the structure demolition of 331 m2.

Farmland in the drawdown area is the State-owned land. The affected people can grow on this land when it is not used for reservoir operation purposes. In order to ensure the APs living standard will not be severely affected by the improvement of the project, compensation will be paid for the loss of young crops and other ground attachments. The compensation for young crops shall be based on the output value in one season, i.e. half of the AAOV, 600 yuan/mu. The local government will arrange the farmland development to be allocated to the affected villagers before the inundation impacts. In addition, all of affected people are included in post-resettlement support program, they can enjoy the assistance from the central government every year.

The unit price of compensation for brick-concrete rural house is 658 Yuan/m2; the unit price of compensation for brick-wood rural house is 518 Yuan/m2; the unit price of compensation for soil-wood rural house is the same as that of brick-wood house; and the unit price of houses for other purpose adopts 200 Yuan / m2. In addition, the affected people will be paid infrastructure assistance at the rate of 1,500 yuan per person and relocation subsidy and transition subsidy are 200 yuan per person respectively. Based on consultation with affected households, all compensation on house and associated structures will be paid in cash directly to each affected household who will arrange the reconstruction of the houses and other facilities themselves.

The APs have participated in the planning process and their concerns have been integrated into the RP. The draft RP was distributed to the affected village in December 2009. In accordance with ADB’s public communications policy, the draft RP will be posted on the ADB website prior to loan appraisal. An effective and transparent channel for lodging complaints and grievances has been established, and relevant institutions shall accept the complaints and grievances lodged by the APs free of charge. The reasonable costs incurred shall be covered

by the contingency of the project.

In order to implement RP successfully and achieve the goals of resettlement, the implementation of RP will be subject to internal and external monitoring according to ADB resettlement policies. The external monitoring and evaluation will be done by an independent monitoring agency (IMA). The external monitoring and evaluation institution shall undertake regular monitoring and evaluation of the resettlement implementation activities and provide necessary consultative recommendations.

1. BRIEF INTRODUCTION OF THE PROJECT

1.1 Background

1. Songshan Reservoir is located about 25km south-west of Linqu County, the upstream of Shihe River, which is the tributary of Mihe River. The main project of the Reservoir was built in October 1966, completed in January 1970 for water storage, which is a medium sized reservoir mainly constructed for flood control and irrigation, and can be also used for fish breeding and power generation. The control drainage area is 151 km2. The flood will be once in three hundred years and the corresponding flood level is 290.03 m. The maximum flood level 290.98 m, and maximum vent capacity is 1532 m3 / s. The total capacity is 56.28 million m3; the live storage capacity is 40.53 million m3; dead storage capacity is 5.33 million m3. These are the following within downstream of the dam: 2 small type I reservoirs, 6 small type II reservoirs and 2 dams. The total drainage area is 36.4 km2; the total capacity is 2.22 million m3. There is no national basic rainfall station and hydrological station in the drainage area.

2. Reservoir flood protection will protect the urban area in Linqu, Qingzhou and Shouguang County (city) in the downstream and the life and property safety of a population of 320,000 along the river. The reservoir also protects the major traffic lines such as Jiaoji Railway and Jiqing Expressway at 40km in the downstream and hundreds of large and medium sized enterprises as well as the safety of more than 200,000 mu of farmland. Therefore, the reservoir location is very important.

3. In accordance with relevant provisions of Reservoir Dam Safety Appraisal Method issued by the Ministry of Water Resources, Department of Water Resources of Shandong Province organized relevant departments and experts to appraise the safety of Songshan Reservoir in April 2003. To sum up, the reservoir flood control capacity is lower than the recent abnormal flood standard for water conservancy project danger removal and reinforcement issued by the Ministry of Water Resources. There are also many quality problems in the project, resulting in the unsafe operation. The reservoir is assessed as dangerous reservoir, which belongs to 3rd class dam. In December 2003, Ministry of Water Resources Dam Safety Management Center approved "Appraisal Opinions of the Dam to be 3rd Class Dam”.

4. To ensure the reservoir and people's lives and property in the downstream, bring the economic and social benefits of the reservoir into full play, it is necessary for the implementation of danger removal and reinforcement. Linqu County Government presses for early implementation of Songshan Reservoir Danger Removal and Reinforcement Project.

1.2 Description of the project

1.2.1 Location

5. Linqu is located in central Shandong Province, adjoining with Changle County and Anqiu City in the east, adjacent to Zichuan District in the west, bordering Yishu and YiYuan County in the south and adjacent to Qingzhou City in the north. Linqu Songshan Reservoir is located in southwest Linqu County, in the upper reaches of Shihe River, tributary of Mihe River, east longitude 118 ° 18 ', north latitude 36 ° 22'.

6. The geographical location of Linqu County Songshan Reservoir Danger Removal and Reinforcement Project is shown in Figure 1-1.

Nuanshuihe Village

Songshan Reservoir

Gouhe Village

Ruitou Village

Dongjing village

Xijing Village

Shangzhuang Village

Figure 1-1 Sketch Map of Songshan Reservoir

1.2.2 Scale and contents of the project

7. Linqu County Songshan Reservoir Danger Removal and Reinforcement Project is the priority sub-project of Shandong hilly area Songshan Reservoir Danger Removal and Reinforcement Project sponsored by ADB. It is a flood control project, and the main contents of the rehabilitation project are: i) dam terrace section 0 +550-0 +810 anti-seepage wall; upstream slope sand-shell pressure, dam foot stone compression, revetment demolition and reconstruction; 0 +070-0 +500 section core wall filling and grouting; anti-wave wall demolition and reconstruction; ii) The outlet tunnel original reinforced concrete pipe lined with gravel, glass and steel pipe, outlet fork tube is removed and converted into steel fork tube, corridor and shaft are reinforced; gates, hoisting machines, and trash rack are replaced; iii) Spillway gate is removed and reconstructed; the curtain is grouted and a new slope is constructed; the outlet tunnel shall be appropriately lined.

8. Up to October 2009, the above-mentioned part one and two have been started and will be completed in December 2009. So only the third part will be under the Loan Project. The construction of the first 2 parts of works was implemented within reservoir engineering management scope and no impacts of land acquisition or temporary land use were identified. Therefore, the Project in this document refers only to the part 3 as the Loan Project.

1.2.3 Investment budget and schedule of the project

9. According to the Primary Design Report on the Reinforcement Project of Songshan Reservoir of Linqu, Weifang city, Shandong compiled by Water Resources Research Institute of Shandong Province, the total investment for this Project is RMB 21,400,000, of which CNY 3.79 million is for the resettlement investment. The project will be completed in 12 months from January 2010 to December 2010 and resettlement will be implemented from January 2010 to December 2012.

1.2.4 Social and economic benefits of the project

10. The implementation of this project can significantly improve the flood control capacity of Songshan Reservoir. The flood control standard will be improved from the current once in twenty years to once in a hundred years to provide a good environment to protect the life and property safety of the people to the maximum. Owing to the improvement of the flood control standard, the people's sense of security in the downstream is enhanced and the life and work are protected, which lays a solid foundation for industrial and agricultural production and brings significant social and economic benefits.

2. PROJECT IMPACT

2.1 Survey of Project Impact

11. The investigators conducted a comprehensive survey of the project impact according to the inundation area determined by the project design, mainly including farmland survey, survey of population affected by land acquisition, survey of demolition of houses and ancillary facilities, survey of sporadic tree and survey of agricultural and sideline facilities

2.2 Results of Project Impact Survey

12. According to the survey, the Project will have the inundation impacts of temporary crops and some houses and associated facilities in drawdown area of the reservoir.

2.2.1 Land Affected by the Project

Temporary Crops in Drawdown Area

13. The temporary crops loss is 235.5 mu, including 225 mu irrigated land, 10.5 mu vegetable land and 18.5mu orchard. The statistics of the survey of the temporary crops of the project by villages are shown in Table 2-1. Figure 2-1 and Figure 2-1 shows vegetable land in drawdown area. Since most of the affected households still have the remaining temporary crops in the drawdown area which has no definite statistical area, it is impossible to quantify the proportion of losses per households. However, based on the total area affected, the average income loss from the inundation of temporary crops is estimated to be CNY563 per capita annually, which is about 20% of the net rural incomes.

Table 2-1 Temporary Crops on Drawdown Area County Township Village Subtotal Irrigate land Vegetable Land Orchard AHs APs （district）（town） Nuanshuihe 73.5 72 1.5 15 43 Gouhe 43.3 41 2.3 6 10 30 Ruitou 16.8 15 1.8 1.5 4 12 Linqu County Wujing Town Xijing 81.9 78.5 3.4 7.2 16 49 Dongjing 11.5 10 1.5 3.8 3 9 Shangzhuang 8.5 8.5 2 5 Total 6 235.5 225 10.5 18.5 50 148

Figure 2-1 Temporary Crops in Drawdown Area Figure 2-2 Vegetable in Drawdown Area

2.2.2 Houses and affiliated facilities to be demolished

Residential houses and attached facilities affected by the project

14. The project involves the residential housing covering 6 people from 2 households from Gouhe village in Wujing Town. All of them have normal residences in the village. The area of residential houses is 189 m2, including 105 m2 in brick-concrete structure, 84 m2 simple houses. In addition, some associated facilities will be affected, including 115 m2 of enclosing wall, cable TV of 2 households. Figure 2-1 and Figure 2-2 show the affected houses.

Figure 2-1 Affected house in Earth-wood Structure Figure 2-2 Affected houses in Brick-concrete Structure

Non-residential houses affected by the project

15. 4 households from Nuanshuihe, Ruitou, Jijing and Dongjing villages built some temporary production houses to safeguard the orchard or vegetable or for breeding purpose. The area of main houses is 421 m2, including 47 m2 in brick-concrete structure, 97 m2 in brick-wood structure and 83 earth-wood structure. The area of simple houses is 279 m2, including 185 breeding pen and 94 m2 utility space. In addition, 78 m2 enclosing walls will be affected. Table 2-2 provides the details of non-residential houses to be affected.

Table 2-2 Non-residential Houses to be Affected Main House (m2) Simple Houses (m2) Village Total Others Enclosing （residents AHs APs and Breeding house Sub-total Brick-concrete Brick-wood Soil-wood Wall (m2) committee） orchard （brick-wood） house Total 4 12 610 421 47 97 82 42 153 78 Nuanshuihe 1 3 38 38 38 Ruitou 1 3 87 45 45 42 Xijing 1 3 181 52 52 44 85 62.5 Dongjing 1 3 115 47 47 42 26 16.5

2.2.3 Ground Attachments to be affected

16. According to the survey, there are 325 scattered trees in the affect area. The scattered trees affected by the project are shown in Table 2-3.

Table 2-3 Basic Information of the Scattered Trees Affected Township （office ） Village （residents committee） Fruit amount Wujing 325 Nuanshuihe 85 Gouhe 123 Ruitou 25 Xijing 48 Dongjing 44

2.2.4 Ethnic Minorities and Vulnerable Groups Affected by the Project

1) Ethnic Minorities affected: According to the survey, there is no cultural heritage to be particularly protected within the project area.

2) Vulnerable groups: According to the survey, the poverty line of rural per capita annual income is CNY1,500. No poor households are identified among the affected people farming land in drawdown area.

3. NATURAL, SOCIAL AND ECONOMIC SITUATIONS IN THE PROJECT AREA

3.1 Natural conditions

17. Songshan Reservoir dam belongs to the hilly topography; there are low hills at the right and hills at the left. The dam area can be divided into two geomorphologic units of tectonic denudation and erosion according to the causes.

3.2 Social and economic situations

18. Linqu is located in north-west Shandong Province, the land area is of 1833 km2. In 2000, the total population is 867,000 (including the male population of 447.8 thousand, the female population of 419.2 thousand), the population density is 473 persons / sq km, the natural population growth rate 4.5 ‰.

19. In 2007, the gross domestic product (GDP) of the country was 98.2 billion, an increase of 1.84 billion Yuan in the first industry, increased by 10.2%; an increase of 5.05 billion Yuan in the secondary industry, increased by 15.7%; an increase of 2.93 billion Yuan in the tertiary industry, increased by 17.5%. The first, secondary and tertiary industries respectively contributed to the GDP growth percentage of 2.8 and 5.2. The proportion of three industries was adjusted from 20.5:50.3:29.2 in the previous year into 18.8:51.4:29.8. GDP per capita exceeded 10000 Yuan for the first time, reaching 11527 Yuan.

3.3 Socio-economic Situations of the Towns (Offices) and Villages in the Project Area

3.3.1 Socio-economic Situations of the Wujing Township

20. According to the survey, the project affects only Wujing Town, and there s a total of 64 villages (residents) committees, with a total population of 72000 from 18800 households, of which the agricultural population is 51220 from 13941 households, accounting for 71.1% of the total population. The town has a total area of 55,000 mu of arable land (including irrigated land of 37,000 mu), per capita arable land area is of 1.07 mu. In 2007, the total agricultural revenue of Wujing Town was 235.61 million Yuan. Details are shown in Table 3-1.

Table 3-1 Socio-economic Situation of the Towns Affected Target Unit Wujing Town I. Basic information （i）Number of village (residents) committees villages 64 1. Villages with electricity villages 64 2. Villages with post villages 64 3. Villages with telephone villages 64 4. Villages with highway villages 64 （ii）Households 18800 1. Non-agricultural households 5440 2. Agricultural households 13941 （iii）Population 72000 1. Non-agricultural persons 20780 2. Agricultural persons 51220 （iv）Labor resource persons 12917 II. Agricultural production conditions （i）. Arable land area Mu 55000 1. Irrigated land 37000

Target Unit Wujing Town 2. Dry land 18000 （ii）Grain output Ton 15640 （iii）Agricultural population arable land per capita mu/person 1.07 III. Rural economy （i）Agricultural income 1. Agricultural gross income 10000 Yuan 23560 2. Agricultural net income 10000 Yuan 15020 （ii）Net income per capita Yuan 2990

3.3.2 Basic situation of the villages affected by the project

21. The impact of project involves six administrative villages with a total population of 3695; the existing arable land area is of 1465 mu, the agricultural population per capita arable land is of 0.4 mu.

22. According to the survey, the level of per capita income of the 6 administrative villages is between 2,396 and 3,016 Yuan / year. In 2008, the level of per capita income of all the affected villages is 2,677 Yuan / year, 10% lower than the per capita net income of farmers in the county. There is no minority population in the 6 administrative villages. The total poverty people is 25 persons in 6 villages (with poverty residence of only 0.7%).

23. The details of the basic situation of the villages affected are shown in Table 3-2.

Table 3-2 Socio-economic Situation of the Villages

Arable Arable Vulnerable groups Township Village land land per Remarks （office ） capita Proportion Population (mu) Income per Population Total （mu） capita(Yuan/Year) (%) Wujing 3695 1465 0.4 2677 25 0.7 Arable land area Nuanshuihe 835 295 0.35 2748 5 0.6 does not

Gouhe 502 260 0.5 3016 0 0.0 include Ruitou 311 120 0.38 2506 3 0.96 land in Xijing 1164 420 0.36 2690 8 0.69 drawdown area Dongjing 252 110 0.43 2396 6 2.38 Shangzhuang 631 260 0.41 2488 3 0.48

3.4 Basic Information of the Households Affected by the Project

24. Basic conditions of affected households were conducted by the investigators at the scene in random sample of land acquisition and resettlement, and the affected households fill out the survey form and sign for recognition. 25 households in the area impacted by the project are sampled, accounting for the project 50% of the total number of affected households. The samples are representative and typical, which can be used as the basis for the project impact analysis. The distribution of migrant households in sample survey is shown in Table 3-3.

Table 3-3 Survey Samples of the Affected Households by Drawdown Area Town （office） Villages affected Total households Sample households Sampling proportion Wujing 6 ff 50 d 25 50 Nuanshuihe 15 7 47 Gouhe 10 5 50

Town （office） Villages affected Total households Sample households Sampling proportion Ruitou ff 4 d 2 50 Xijing 16 8 50 Dongjing 3 2 66 Shangzhuang 2 1 50

3.4.1 Survey Results and Analysis

1）Survey of the Basic Situation of Affected Households

The survey and analysis of the basic situation of the migrant households through sampling shows： (i) The size of the affected households: among the households affected by the land acquisition, the average population is 3.72 per household, including 2.35 persons of 17-year-old to 60-year-old labor, 0.67 persons under the age of 17, 0.39 persons over the age of 60. (ii) Sex ratio: 1:1.04 of men and women in the project area. (iii) Age composition: 17-year-old to 60-year-old labor force account for 63.1% of the total population, those below 17 years old account for 26.1%, those over 60 years old account for 10.8%. (iv) Ethnic composition: the persons affected by the project are all of the Han nationality. (v) Level of education: within the area affected by the project, for every hundred people, 39 people with high school educational background, 36 people with secondary school educational background, 22 people with primary school educational background, and 3 are illiterate or semi-literate. (vi) Housing area per-capita: the housing area per migrant household in the project area is 105.5m2, the area per capita is 28.4 m2; the house structure is mainly brick-wood structure. (vii) Contract collective land: the contract collective land per agricultural household in the area affected by the project is 1.49 mu, the contract arable land per capita is 0.4 mu; the grain output per household is 972kg, the grain possession per capita is 261 kg; the livestock per household is 4.5, and the poultry is 9.8. (viii) Household properties: 72 TV sets (including 21 black and white TV sets, 51color televisions) are owned by per hundred households in the affected area, 27 washing machines，52 telephones, and 40 mobiles are owned by per hundred households. (ix) Income and expenditure: the annual gross income of affected households is 14,980 Yuan per household, the per capita annual income is 4,027Yuan; annual consumption expenditure is7446Yuan per household, per capita annual living expenditure is 975 Yuan; the annual net income per household is 11,947 Yuan, the per capita annual net income is 3,212 Yuan.

25. The Summary of the Basic Situation of the Households Affected by the Land Inundation of the project is shown in Table 3-4.

Table 3-4 Survey of Basic Information of Households Affected in Drawdown Area Total samples（25 households） Item Unit Total Target per household Ⅰ.Size of the affected households

1. Total household population persons 93 3.72 Among which: female persons 45 1.82

2. Labor force between and 60 years old persons 47 1.9

3. Population below 17 years old persons 24 0.96

4. Population above 60 years old persons 10 0.4 Ⅱ.Education 1. Above senior high school persons

2. Senior high school persons 36 1.43 3. Secondary high school persons 34 1.36 4. Primary school persons 20 0.82

5. Illiterate persons 3 0.11 Ⅲ.Nationality 1. Han persons 93 3.72

2. Minority persons Ⅳ.House area 1. House area per household m2 2638 105.5

2. House area per capita m2 2638 28.4 Ⅴ.Agricultural production 1. Contracted arable land per household mu 37.3 1.49

2. Arable land per capita mu/person 0.4 3. Grain output kg 28,575 1,143 4. Grain owned per capita kg/person 361

5. Livestock 112 4.5 6. Poultry 245 9.8 Ⅵ.Family property

1. TV set set 18 0.72 Among which: color TV set 13 0.51 2. Air conditioner set

3. Refrigerator set 4. Washing machine set 8 0.27 Ⅶ.Average annual gross income 374,500 14,980 1. Agriculture Yuan 122,025 4,881 2. Stock breeding Yuan 92,700 3,708 3. Non-agriculture Yuan 159,775 6,391 Ⅷ.Average annual expenditure Yuan 186,150 7,446 1. Living Yuan 90,700 3,628 2. Production Yuan 75,825 3,033 3. Others Yuan 19,625 785 Ⅸ.Annual net income per household Yuan 298,675 11,947 X. Annual savings per household Yuan 188,350 7,534

2）Opinion Survey of the Affected People

The survey of the basic situation of the migrant households shows: (i) Understanding of the situation: understanding: 97.8 % the APs, not understanding: 2.2%. (ii) Understanding channel: through the investigators: 91.4%; through the villagers in the neighboring village: 52.6%. (iii) Support attitude: all APs hold supportive attitudes toward the project. (iv) Extent of impact: 71.0% of the APs think that there are great impacts of the project;

17.2% think that the impact is little, 4.3% think that the impact is minor. (v) Resettlement: 100% of the APs express that they preferred monetary compensation for resettlement.

3.5 Social and Economic Impact on the Affected Population

26. The implementation of the project will affect the society and economy for the affect people to a certain extent.

(i) Within the scope of the project impact, Wujing Town is located at the edge of Linqu County with poor infrastructure, but with the economic development, local farmers are provided with employment, work, business and other opportunities for non-agricultural production, so they are less dependent on the land. According to the survey, in 2008, the rural labor in Wujing Town reaches 22,170 people, including 11,300 people engaged in industry, construction, transportation, wholesale and retail and other non-agricultural business, accounting for 51% of rural labor force. From the view of income structure, in 2008, the average annual gross income per affected household in the area is 14,980 Yuan, among which agricultural income is 4881Yuan, accounting for only 32.5% of total revenue. The total income from agricultural activities including farming and husbandry in drawdown area is 2,933 yuan, accounting for 19.6% of the total income. The survey shows that the project construction and loss of land resources will lead directly to the reduction in agricultural income of local farmers affected. However, their source of livelihood mainly rely on non-agricultural income. Crop income accounts for only a small part of the total income, the project will not bring great impact on their production and daily life.

(ii) Although the construction of the Project will have some impacts on their agricultural activities in drawdown area, they can still keeping farming on drawdown land that will not be inundated. According to the historical hydraulically statistics, the water level reached the benefit level only once since 1970s, the villager will be allowed to continue farming in the drawdown zone when it is not inundated. So loss probability of the drawdown farmland is very low. In addition, all of affected people are included in post-resettlement support program, they can enjoy the assistance from the central government every year.

(iii) The two households living below the flood level have to move before the reservoir is rehabilitated. The process of decoration and relocation will consume certain human and material resources. However, this project will compensate for the loss of all their properties according to relevant policies and will provide necessary living allowance and new housing sites supporting infrastructure fees, such as relocation and transportation fees. During the house construction process, the project implementation agencies and the village will also provide necessary assistance, so the impact of the project construction on the impact of the relocatees can be mitigated.

27. Although the project construction will have little impacts on villagers, but the local government will pay for the loss of young crops to ensure their lives will not get worse. In addition, the same amount of farmland will be developed to make up the loss of their farmland in drawdown zone of the Reservoir. All affected enjoy the post-resettlement support of central government.

4. COMPENSATION POLICY AND STANDARD

4.1 Applicable Laws, Regulations & Policies for Resettlement

28. The resettlement policy for this project is established mainly in accordance with the relevant laws of China and the relevant policies of ADB, including:

ADB Policies

¾ Safeguard Policy Statement, July 2009 (effective from 20 January 2010) ¾ Handbook on resettlement A Guide to Good Practice (effective from 1998) ¾ Gender and Resettlement Analysis, February 2003.

Laws and Regulations of the PRC

¾ Regulations on Land Requisition Compensation and Resettlement for Construction of Large and Medium-sized Water Conservancy and Hydropower Projects (effective 2006).

4.2 Objectives and Principles of Resettlement

29. The primary objective of the LAR program is to ensure that the affected persons (APs) will improve their standards of living, or at least will not be made worse off because of the Project. The principles of the compensation and entitlements established for the Project are as follows: (i) Compensation and entitlements provided must be adequate to allow APs to at least maintain their pre project standard of living, with the prospect of improvement; (ii) Compensation and entitlements provided are based on market value or replacement value and must be adequate; (iii) Compensation should not be paid to those people who occupy land or construct structures and auxiliaries in the project area after cut-off date determined by the local government; (iv) Adequate compensation should be provided to the APs timely; (vi) All the APs will be adequately informed about eligibility, compensation rates and standards, livelihood and income restoration plans and project timing; and (vii) Close monitoring and timely actions will be carried out to identify and resolve any problems.

4.3 Eligibility of Compensation

30. The Project APs who are entitled to receive compensation from the Project refer to the persons affected by the involuntary taking of land resulting in: (i) permanent or temporary loss of land or access to land; (ii) loss of income sources or means of livelihood, whether or not the affected persons must move to another location; and (iii) loss of ground attachments and standing crops.

31. All landowners and users in the Project areas affected by land acquisition and resettlement as a consequence of the Project will be eligible for fair compensation and rehabilitation according to the type of loss and quantities as well as the cut-off date determined by the government within the completion date of the construction map and investigation. The newly cultivated land and newly built houses shall not be compensated after the cut-off date. The cut-off date is Nov,30 2009.

4.4 Compensation Policy and Standard

4.4.1 Description of Farming in Drawdown Area

32. The affected people farming in drawdown area are from villages in Songshan Reservoir

Area. The per capita farmland is less than average level due to the land acquisition of construction of the Reservoir. The shortage of farmland is the main cause for them to farming in the drawdown zone. The local government has no definite management measures on the drawdown area, which results in the loose control or constraints in the farming activities. Since the reservoir operated at the lower storage water level under endangered condition, much land was never inundated and could be used for agricultural purposes. Farming activities in the drawdown land is extensive cultivation with low output. Farmers, especially young labors, concentrate on outside work regularly and only spend some spare time on farming in this area.

4.4.2 Compensation and Resettlement Principles

33. Farmland in the drawdown area is the State-owned land. The affected people can grow on this land when it is not used for reservoir operation purposes. According to Article 22 of the “Regulations on Land Acquisition Compensation and Resettlement for Construction of Large and Medium-sized Water Conservancy and Hydropower Projects”(effective since Sep.1, 2006), no compensation is required for use of un-used State-owned land which is not to be used by any unit or individual. In order to ensure the APs living standard will not be severely affected by the consolidation of the project, the compensation will be paid for the loss of young crops and other ground attachments. In addition, the local government will arrange the farmland development to be allocated to the affected villagers before the inundation impacts.

34. The compensation for housing or other property is the replacement price, without deduction for depreciation or other forms of discounts. Compensation in monetary form will be used. The relocation of residential units will be given resettlement subsidies. Affected people by house demolition will arrange the housing themselves.

4.4.3 Basis and Standards of Compensation for Temporary Crops

35. According to the “Notice on the Adjustment of Land occupying Annual production And Compensation Standard, which is forwarded by General Office of Shandong Provincial People’s Government, and issued by Shandong Province People's government Office” Luzhengbanfa [2004] No.51, project influenced area, Linqu, belongs to the firth-class areas. The Annual Average Output Value (AAOV) of the fourth-class area is 1,200 Yuan per mu. The compensation for young crops shall be based on the output value in one season, i.e. half of the AAOV, 600 yuan/mu.

4.4.4 Compensation Standard for Scattered Trees

36. According to the Weifang City Government Circular Concerning the Associated Auxiliaries Compensation Standard on Acquired Land, the compensation unit price is 200 Yuan / tree.

4.4.5 Compensation Standard for Houses Demolition and Attachments

Residential and non-residential houses

37. The houses in the project area are mostly of brick-concrete, brick-wood structure. In order to develop a reasonable standard of compensation to enable the relocatees to get the compensation equivalent to the replacement cost, the physical indicators and the replacement cost of the brick-wood houses in the affected area are investigated and analyzed on a detailed basis. According to the “Circular of Shandong Provincial Government Concerning the Adjustment of the Annual Output Value and Compensation Standard of Ground Attachments”, the unit price of compensation for brick-concrete rural house is 650.99 Yuan / m2, plus the land price of 6.54 Yuan / m2, the unit price adopts 658 Yuan/m2; the unit price of compensation for brick-wood rural house is 511.66 Yuan / m2, plus the land price of 6.54 Yuan / m2, the unit price adopts 518 Yuan/m2; the unit price of compensation for soil-wood rural house is the same as

that of brick-wood house; the replacement price of houses for other purpose adopts 40% of brick-wood houses, or 204.66 Yuan / m2 and the compensation price adopts 200 Yuan / m2. In addition, the affected people will be paid infrastructure assistance at the rate of 1,500 yuan per person and relocation subsidy and transition subsidy are 200 yuan per person respectively.

38. Whereas the existing decoration and materials of the residential houses in the project area are different, the change range of the compensation for residential houses are 10% up and down, which is shown in Table 4.5-1.

Table 4.5-1 Compensation Standards of Residential and Non-residential Houses Type Structure Unit Compensation standard Remarks

Brick-concrete Yuan /m2 658 Change range 592～724 Brick-wood and Rural house Yuan /m2 518 Change range 466～570 Earth-wood

Soil-wood Yuan /m2 200

Affiliated facilities

39. The compensation for the affiliated facilities shall be determined according to the current unit price of the construction materials of the similar projects in Shandong Province and Linqu County, see Table 4.5-2.

Table 4.5-2 Compensation Standards of the Affiliated Facilities No. Item Unit Compensation standard Notes 1 Wall Yuan/m2 58 2 Cable TV Yuan/Household 260

4.5 Entitlements Matrix

40. According to the field survey organized by the County Project Office and Resettlement Design unit, the main impacts of land acquisition are confirmed on the basis of natural loss. The table of rights and interests can be used as the basis for the payment of compensation, see Table 4.6-1.

Table 4.6-1 Entitlement Matrix Responsible Policies for resettlement caused by land Compensation standard (Yuan/unit) Type of impact Affected Items organ acquisition Compensation item Standard Compensation for residential Brick-concrete 658Yuan/m2（592～724） 1. All the houses will be compensated based on the Brick-wood 518Yuan/m2（466～570） replacement costs, no depreciation will be deducted. Miscellaneous 200Yuan/m2 The available materials of the old houses are owned Affiliated facilities by the migrants Residential houses County Project 2 2 Resettled households 2. Residential houses are principly compensated with Wall 58Yuan/m and affiliated facilities Office money to the affected people. Cable TV 260Yuan/Household 3. The affected households have permanent house in Compensation for infrastructure the village so no additional house plot will be allocated. Ground leveling, water and 1500Yuan/person lighting Transportation fee 100 Yuan/person Living subsidy 100 Yuan/person Orchard 1 Owner The compensation unit prices of houses of various structure Non-residential houses house County Project All non-residential houses shall be compensated with shall be based on that of the residential houses and and affiliated facilities Breeding Office money to affected people. 3 Owners miscellaneous houses. house County Project Sporadic trees Owners The sporadic trees shall be compensated to owners. Compensation standard 200Yuan/tree Office 1. The temporary crops will be paid for one season loss. The cost for land development will be borne by local government. Temporary Crops in 235.5 mu of land 2. Local government will develop new farmland and County Project Reservoir Drawdown farmed by allocate to the affected villagers before the inundation Young Crops: 600yuan/mu Office Area 56 housholds impacts (see Table 5.1). 3. APs will have priority for construction employment. 4. Skills training will be available for each affected household (see Table 5.3).

5 RESETTLEMENT REHABILITATION

5.1 Resettlement Strategy

5.1.1 Resettlement Targets

41. To reasonably compensate for and properly mitigate the project impacts to ensure the living standard of affected people remains the same or be higher than the original production level, income level and living standards.

5.1.2 Resettlement Tasks

42. According to the survey statistics, a total population of 56 households is actually affected by the loss of temporary crops or house in the reservoir drawdown area, among which a population of 6 from 2 households shall be resettled.

5.2 Production Rehabilitation Plan

43. According to the survey, the farmland in drawdown area to be affected by the Project is 235.5 mu, including irrigated land 225mu, vegetable land 10.5mu and orchard 18.5mu. For the agricultural population who has lost their land because of the project, the land development programs will be implemented to make up their farmland loss. The availability amount of land for development is shown in Table 5-1.

Table 5-1 Land Resources for Development Farmland to be Affected (mu) Land Resources for Village Location Subtotal Irrigated land Vegetable Land Orchard Cultivation (mu) Slope south of Nuanshuihe 73.5 72 1.5 90 the village Slope south of Gouhe 43.3 41 2.3 6 65 the village Slope west of the Ruitou 16.8 15 1.8 1.5 50 village Slope west of the Xijing 81.9 78.5 3.4 7.2 95 village Slope east of the Dongjing 11.5 10 1.5 3.8 40 village Slope south of Shangzhuang 8.5 8.5 60 the village Slope south of 6 235.5 225 10.5 18.5 400 the village

44. Through the analysis of the unit price of reclamation, the land cultivation cost is 8,914 Yuan/mu (see Table 5-2). The planned farmland development is 235.5 mu with the total cost of 2.10 million Yuan. The land development will be implemented according to the reservoir water impounding level. The villagers will be allowed to continue farming when the land in drawdown zone is not inundated. All land development will be finished in 3 months and then delivered to the villagers for cultivation. During the land development period, the villagers will be paid the loss of one season crops in advance.

Table 5-2 Unit Price Analysis for Land Cultivation Item Unit Unit price (Yuan) Quantity Investment (Yuan/mu) 1. Earth work 8,164 1.1 Ground leveling m3 8.5 333 2,830 1.2 Clay coverage m3 6.5 200 1,300 1.3 Backfill of arable layer m3 3 200 600 1.4 Leveling of Plough Layer m2 10 333 3,330 1.5 Construction of Filed Ridges m3 8 13 104 2. Soil Maturation 650 2.1 Farmyard Manure m3 50 13 650 3. Field Supporting Facilities mu 100 1 100 Total 8,914

5.3 House Structures Reconstruction

45. The project involves the residential housing covering 6 people from 2 households from Gouhe village in Wujing Town. All of them have normal residences in the village, so no additional house plot will be allocated to them. The project has little impact on their normal life. No living resettlement will be given after the monetary compensation of the demolished house. In addition, the affected people will be paid infrastructure assistance at the rate of 1,500 yuan per person and relocation subsidy and transition subsidy are 100 yuan per person respectively. After consultation with the affected households, they will arrange the construction of the houses and water and power facilities themselves. 4 households from Nuanshuihe, Ruitou, Jijing and Dongjing villages built some temporary production houses to safeguard the orchard or vegetable or for breeding purpose. All compensation on house and associated structures will be paid directly to affected households.

5.4 Job Opportunities from the Project

46. Totally, the risk mitigation of Songshan Reservoir need 250,000 person-days during the project construction stage, of which 10% are unskilled job opportunities, including manual laborers for foundry worker, excavation, material handling, greening etc. According to the survey, since the affected villages are located near the construction site, they have already been offered many temporary job opportunities for the started construction works. With regarding to the Loan Project, about 10,000 person-days unskilled job opportunities will be created. The affected people will be provided the priority in future employment. The salary levels is around 50 to 80 yuan per-days between. The average income increase is between CNY 3,378~CNY 4,054 per person.

5.5 Income Restoration Plan of Women

47. In the stage of RP preparation, the affected women were organized to actively participate in the survey of project impacts so as to understand their ideas on income restoration. As a result, women hold a positive attitude toward project construction by thinking that the project will help improve the environment and improve the flood control.

48. Women will fully participate in the compensation activities through the information disclosure and village meetings; they have equal entitlement with men in receiving compensation and employment. In addition, the following measures will be taken to improve women’s income: (1) During the project construction, SRPMB has ensured that a certain number of the affected women (at least 20% of the unskilled laborers) will be offered unskilled jobs. As per labor laws, women will get equal pay to men for the same work.

(2) Technical training program including fruit and forest planting skills and livestock techniques, etc. will be provided for the affected female laborers to ensure their income would not be reduced.

5.6 Training for the Affected Persons

49. To ensure the income of the APs will be restored in a sustainable way, SRPMB will cooperate with Linqu Forest Bureau, Husbandry Bureau and Agricultural Bureau to provide free skill training programs regularly. The skill training programs include fruit and forest planting skills, animal raising techniques and vegetable growing skills, etc. The training plan is shown in Table 5-3.

Table 5-3 Schedule of Training for APs No. Time Place Manner Recipients Contents Workshop, Lecture, Forestry and fruit planting and insect 1 Jan. 2010 Town APs Practical control demonstration Workshop, 2 March 2010 Town APs Vegetable growing and animal raising Lecture, 3 Other irregular technical trainings APs Not determined yet

6. RESETTLEMENT COST

50. The estimated cost of resettlement is CNY3.79 million in 2009 prices, including contingency. In terms of the categories of resettlement impacts, compensation is CNY1,241,860, accounting for 34.7%. Cost for production reestablishment measures, including land development, is CNY 2.1 million, accounting for 58.82% of the total budget. Table 6-1 provides the cost estimation of resettlement.

Table 6-1 Resettlement Cost Compensation Item Unit Quantity Investment (Yuan) Standard (CNY) 1. Temporary Crops 235.5 600 141,300 2. Compensation for houses and affiliated 239,310 facilities 2.1 Residential house ㎡ 85,890 Brick-concrete ㎡ 105 658 69,090 Simple Houses ㎡ 84 200 16,800 2.2 Non-residential ㎡ 132,048 house Brick-concrete ㎡ 47 658 30,926 Brick-wood ㎡ 97 518 50,246 Earth-wood ㎡ 82 518 42,476 Simple Houses ㎡ 42 200 8,400 2.3 Affiliated facilities 11,772 Enclosing Wall ㎡ 194 58 11,252 Cable TV Household 2 260 520 2.4 Relocation Subsidy Person 6 1500 9,000 2.5 Transportation Person 6 100 600 Subsidy 3. Ground Attachment 65,000 Fruit Trees No. 325 200 65,000 4. Special Facilities 796,250 4.1 Pumping Stations Location 5 140000 700,000 4.2 380v Power Line km 3.5 27500 96,250 5. Livelihood Support

Measures 5.1 Land Development mu 235.5 8,914 2,099,247 Subtotal (1-4) 3,341,107 5. Other Costs 267,289 Research and Design 3,341,107 3% 100,233 Cost Implementation 3,341,107 3% 100,233 Management Training 3,341,107 0.50% 16,705 M&E 3,341,107 1.50% 50,117 Subtotal (1-5) 3,608,396 6. Contingencies 3,608,395.56 5% 180,420 Total 3,788,815

51. According to the planned water storage level after implementation of the Project in November 2010, in the first year (i.e. in 2011) the water level will rise from 283.5m to 285.5m, which will result in 40% of the new affected land to be inundated. So 40% of the total budget, CNY59,0131.9, will be allocated in 2011 and the other 60% will be paid in 2012. The actual progress will depend on the water storage situation. The land and houses are not inundated will be allowed for continuous farming or living, but compensation will be paid in advance when impacts are identified.

7. POST-RESETTLEMENT PROGRAM FOR RESETTLERS IN RESERVOIR AREA

7.1 Inundation Resettlement during Construction Period

52. Songshan Reservoir was constructed in October 1966. In January 1971, the main engineering were finished and started to store water and produced benefit. The construction of the reservoir inundated 9 villages of Wujing Township of Linqu County. The house and farmland inundation impacts are 2,947 and 1,972 mu. Totally 2,346 persons were involved in resettlement. Based on the “Shandong Rural Resettlers Registration and Ratification Method of Large and Medium-sized Reservoirs”, in 2006 the total resettlers are 6,220 from 1,907 households in 3 townships due to population growth since 1970. The details of resettlement information is presented in Table 1-1.

Table 1-1 Resettlement Status Caused by Construction of Songshan Reservoir Resettlement Population Inundation Impacts Resettlement Affected in 2006 Townships Pattern Village Farmland Houses APs (mu) (No.) Households APs Nuanshuihe 799 480 1078 209 776 Xijing 499 433 685 Dongjing 177 134 166 Gouhe 384 450 465 Overall Wujing Ruitou 487 253 541 83 312 Resettlement Shangzhuang 138 9 Xiazhuang 35 Wangjiaquan 42 Zhongzhuang 7 3 Subtotal 2,346 1,972 2,947 292 1,088 Disperse Yeyuan 73 299 Resettlement Wujing 1426 4570 Chengguan 116 263 Subtotal 1615 5132 Total 1,907 6,220

7.2 Background and Remaining Issues

53. Since the founding of new China, a number of large and medium-sized reservoirs have been constructed and brought into huge benefits in flood control, power generation, irrigation and water supply and ecological aspects. A large number of resettlers of large and medium-sized reservoirs made major contributions to effectively promote the national economy and social development. In order to help them to improve production and living conditions, the country has established the reservoir area construction fund, the maintenance of post-resettlement support fund, and try to solve the remaining resettlement issues in reservoir area. However, due to the low support level and insufficient direct benefit to resettlers, at present their production and living conditions are still generally poorer. To help the resettlers in reservoir shaking off the poverty and promote the economic and social development in the new period, the central government of PRC issued the “Suggestions on Perfecting Post-resettlement Support Policies for Large and Medium-sized Reservoirs Resettlers” in 2006 (Guofa [2006]No.17).

54. The central government distributed special fund of CNY 2.09 million since the construction of the Reservoir to 1985 to help improve the living condition of resettlers in Songshan Reservoir Area. Due to the out-dated infrastructure and limited income sources, some villages still have some troubles in aspect of drinking water, transportation, medical service and education. In addition, the employment difficulties stayed with resettlement villagers.

7.3 Post-resettlement Support Approaches

55. Based on the “Suggestions of State Council on Perfecting the Post-resettlement Support Policies of Large and Medium-sized Reservoir Resettlement” and the corresponding Implementation Method issued by Shandong provincial government, Linqu County government led the preparation of the post-resettlement program for Songshan Reservoir.

56. Based on the “Management Method of Post-resettlement Support Fund of Large and Medium-sized Reservoirs in Shandong Province”, the support fund can be paid directly to resettlers or be used in actual development programs. In Linqu County, after full consultation with affected people, all support fund has been paid to resettlers directly at the annual rate of CNY 600/person. The total resettlers are 14,927 in 7 townships of Linqu County that were identified as the support target of Songshan Reservoir. The support will last for four and a half-year in the duration of 2006-2010. The total cash payment will be CNY 16.79 million for resettlers of Songshan reservoir area. The cash subsidy was paid quarterly. In addition to the cash payment, some other development programs have been planned and implemented since 2006. The details of such programs and implementation status of Songshan Reservoir Area is presented in Table 7-1. It is planned that five development programs have been or will be implemented in reservoir area villages from 2006 to 2010, including water resources facilities and farmland improvement, domestic water supply, transportation works, power supply and education facilities. It is expected through the improvement of infrastructures the living condition of people in Songshan Reservoir Area will be better off.

Table 7-1 Post-resettlement Support Program of Songshan Reservoir Beneficiaries of Investment (CNY Programs Contents Resettlers (No.) 104) Water Resources Facilities and Pipeline installation, irrigation 14.00 Farmland Improvement equipment Domestic Water Supply Tap water facilities 1,363 163.75 Transportation Village-village road 2,192 408.30 Power Supply 380v power line 312 13.00 Education Cultural Buildings 93 10.00 Total 609.05

7.4 Post-resettlement Support in Reservoir Area

57. In Linqu County, after full consultation with affected people, all support fund has been paid to resettlers quarterly at the annual rate of CNY 600/person. The support will last for four and a half-year in the duration of 2006-2010. The total cash payment will be CNY 16.79 million for resettlers of Songshan reservoir area. In addition to the cash payment, some other development programs has been planned and implemented since 2006.The total budget of the programs is CNY 6.09 million and the overall progress is 24.61% in term of the expenditure of the investment. The progress varies in different programs. All support funds will be allocated by central government. Table 7-2 presents the details of the budget of the programs.

Table 7-2 Investment and Implementation of Post-resettlement Support

Budget Beneficiaries - Implementation in Progress Programs Township (CNY104) No. of Resettlers Cost (CNY 104) （%）

Water Resources Facilities Chengguan 14.0 14 0.0 0.0 and Farmland Improvement Wujing 143.7 1,283 10.0 6.9 Domestic Water Supply Chengguan 10.0 26 0.0 0.0 Yeyuan 10.0 54 0.0 0.0 Wujing 338.8 2,030 59.8 17.6 Transportation （Road） Chengguan 69.5 162 0.0 0.0 Power Supply Wujing 13.0 312 0.0 0.0 Education Wujing 10.0 93 0.0 0.0 Total 609.0 3,974 69.8 11.5

8. INSTITUTIONAL ARRANGEMENT AND SCHEDULE

8.1 Responsible Institutions for Resettlement Implementation

58. The departments responsible for planning, implementation, management, and monitoring of the resettlement activities of the Linqu Songshan Reservoir ADB Loan project are: z Linqu Water Resources Department z Songshan Reservoir Project Management Bureau z Songshan Villagers committees/ affected communities z Design Institute.

59. Linqu Water Resources Department is in charge of resettlement investigation, development of the Resettlement Plan.

60. Songshan Reservoir Project Management Bureau is the specific implementing agency, which is responsible for the socio-economic investigation, coordinating with Linqu Land Resources Bureau, governments and the affected village committees, and implementing the work of compensation and resettlement.

61. Affected village committees/ communities are responsible for providing the land contract, assisting or participating in the various surveys and the work of land acquisition, community mobilization activities for publicity, and undertaking the verification of the measurement, valuation and finalization of demolition agreements after APs negotiations together with the relevant technical personnel.

62. Design institute is responsible for the design of the project and defining the scope of affected land and assets.

63. The staffing of institutional arrangement for LAR is presented in Table 8-1.

Table 8-1 Staffing of Institutional Arrangement for LAR Staff (No.) Name of Institution Personnel Composition Male Female Linqu Water Resources Department 2 Official Linqu County Songshan Reservoir Project Management Bureau 3 1 Officials Affected villages committee 3 1 Cadres and representatives of APs

TOTAL 8 2

8.2 Training Plan for Resettlement Management Staff

64. A system for staff training and human resource development will be established at all levels of resettlement management institutions. The training plan is organized by LWRD, and the form of training will include specialist lectures, technical training seminars, inspection of other similar projects and site training, etc. The training plan is shown in Table 8-2.

Table 8-2 Schedule for Resettlement Implementation Training Training Time Location Recipients Training content methods Centralized Resettlement work Feb. 2010 Jinan City Resettlement business training course staff Learn from Key personnel of The implementation site visit of the ADB Jun. 2010 Domestic demonstration the office project Resettlement work Discuss the resettlement experience and Oct. 2010 Jinan City Seminars staff the problems

9. PUBLIC PARTICIPATION AND GRIEVANCE REDRESS

9.1 Public Participation

65. This Resettlement Plan was prepared with full public participation and full information sharing with APs. The Songshan Reservoir Project Management Bureau (SRPMB) has informed the resettlement policies to all the APs via socio-economic survey, social impact survey and other communication and consultation channels. SRPMB also has consulted with various affected persons through consultation meetings. Through wide consultation, coordination and communication, related local government, affected villages and APs can fully understand the resettlement impacts, resettlement policies and formulate feasible income restoration measures.

66. SRPMB has contacted with the affected village committee in August 2009, and discussed the Project and compensation costs, compensation policies, entitlement, and impacts of the Project on the village and APs. SRPMB will sign the compensation agreement with APs and the affected village in January 2010. The Resettlement Plan approved by LCG was distributed to village committee in December 2009 to any one wishing to consult the document at the affected village. Copies of the Resettlement Plan will be kept in the Project office and affected VC. At the same time, this Resettlement Plan will be posted on the ADB’s website in January 2010. The public consultation activities and schedule is presented in Table 9-1.

Table 9-1 Public Consultation Activities and Schedule Organizations Objectives Task Date Participant Involved 1. Inform and discuss Release of location and August 2009 LCWRD, SRPMB Representatives of issues related with Land area of Land use, and VC each organization use; compensation standards, Obtain suggestion or and resettlement, etc. advices 2. Survey on affected Field survey of affected, August SRPMB, VC Representatives of physical index, and physical index, and 2009 each organization preparation of due socioeconomic status of diligence affected households 3. Compensation Agreement of January 2010 SRPMB, and Representatives of agreement signed with complementation Affected People each organization Affected People standards, and grievance appeal procedures 4. Due Diligence disclosure Release of draft December ADB to APs and on ADB website Resettlement Plan 2009 ~ January 2010 5. Implementation of RP Verification and January 2010 SRPMB and VC Representatives of implementation of Due each organization Diligence 6. Monitoring & Evaluation Survey on the rehabilitation January 2010 ~ SRPMB, Linqu LAB, Socioeconomic sample of APs after resettlement December 2012 VC, and IMA survey implementation

9.2 Grievance Procedure

67. During the preparation and implementation of the Resettlement Plan, public participation is encouraged, and thus there should not be any major issues or grievances. However, some unforeseen issues may occur during such process. In order to settle such issues effectively and make the construction and land acquisition implement successfully, an effective and transparent channel for lodging complaints and grievances has been established. The basic stages for grievance redress are:

68. Stage 1: The APs submit an oral or written petition/complaint to the village committee. For an oral complaint, the village committee must make written records properly and give a clear reply within 2 weeks.

69. Stage 2: If the complainant is not satisfied with the reply in Stage 1, he can appeal to the township government/sub-district office after receiving the reply in Stage 1 and the township government/sub-district office will deal with the complaint within 2 weeks.

70. Stage 3: If the affected person is still not satisfied with the reply of township government/sub-district office, he can appeal to Linqu Land Resources Bureau and Linqu Land Resources Bureau must give a reply within 30 days.

71. Stage 4: If the affected person is still not satisfied with the reply of Linqu Land Resources Bureau, he can appeal to SPMO after receiving the reply of Stage 3. They also have the right to appeal to the civil court within 3 months of receiving the reply.

72. Besides the established channel above, the external monitor can also receive grievances from APs and the APs can even submit directly to ADB1. The appeal process, institutions, sites, leaders, and telephone numbers for redress of grievances will be publicized to APs via meetings, notices and the information handbook. In this way, the APs will fully realize their rights of appeal. Meanwhile, the system of information dissemination will be strengthened through use of the media, and all APs feedback will be compiled and distributed to all involved organizations.

73. Relevant institutions shall accept the complaints and grievances lodged by the APs free of charge. The reasonable costs incurred shall be covered by the management fees or the contingency of the project. During the whole process of project construction, these grievance procedures remain valid so that the APs may deal with relevant issues.

1 ADB has an Accountability Mechanism to ensure policy compliance. APs are required to seek grievance resolution using the above procedures, but if they still believe that their concerns have not been resolved in accordance with this RP or ADB's Involuntary Resettlement Policy (1995), they may submit a complaint to ADB. The procedures are provided on ADB's website: http://www.adb.org/Accountability-Mechanism/default.asp

10. MONITORING AND EVALUATION

74. In order to ensure the successful implementation of the Resettlement Plan and accomplish the objectives to achieve appropriate resettlement, monitoring and evaluation should be carried out for the implementation of resettlement in accordance with the requirement of the ADB resettlement policies. The monitoring include both internal and external.

75. The independent monitoring and evaluation is done by an independent monitoring agency (IMA). The IMA will carry out regular monitoring and evaluation to the resettlement activities.

76. The IMA, approved by ADB and LCG, will undertake the independent monitoring of the Project in respects of: (i) extent of consultation undertaken with APs; (ii) compensation disbursement to the APs and affected village or group; (iii) participation and consultation during the project implementation; (vii) grievances, problem resolution and follow-up; (viii) staffing, training, schedule and work efficiency of the resettlement officers. The IMA, being independent of the project, will inspect the whole implementation from an overall and long-term point of view. The IMA will put forward proposals to SPMO, LCG and SRPMB in time so that the problems taking place in the implementation of the resettlement can be solved as soon as possible. The terms of reference for external monitoring and evaluation is presented in Appendix 1.

77. The major external monitoring and evaluation indicators are as follows:

(1) M&E on Progress of Land Acquisition Implementation: i) progress of land acquisition; ii) progress of temporary land occupation; and iii) progress of project impacts;

(2) M&E on Fund Disbursement and Usage: i) Fund disbursement; and ii) Fund usage (planning and actual fund usage).

(3) M&E on Rehabilitation of APs’ Production and Livelihood: i) Production and living conditions of the APs before land acquisition; ii) Production and living conditions of the APs after land acquisition; iii) Analysis and evaluation of employment and living condition before and after the resettlement; and iv) Grievance mechanism and problem resolution.

(4) M&E on capabilities of resettlement institution, public participation, grievance and appeal procedures

Appendix 1 Terms of Reference for External Monitoring

A Objectives of resettlement monitoring and evaluation

In accordance with the requirements of ADB’s resettlement policies, it is to undertake external monitoring and evaluation for resettlement of Risk Mitigation of Endangered Reservoir Project in Shandong Province. Through monitoring the progress, funds mobilization and management of land acquisition, demolition and resettlement, it is to analyze and compare the changes and restoration of the production and livelihoods of the affected people, and thus to provide with follow-up evaluation in this connection. In addition to the regular reports (twice a year in resettlement implementation period) respectively submitted to ADB, SPMO and relevant competent authorities. This process shall also provide information and suggestions to all departments for reference in policy making. Through external monitoring and evaluation, ADB and the project administrative agencies may have full understanding of the conditions and existing problems of land acquisition, demolition and resettlement, such as timely implementation of the resettlement plan, full achievement of the expected targets as well as the suggestions for improvement etc.

B Major contents of resettlement monitoring and evaluation

(1) Baseline Survey should include: (i) family information; (ii) household annual income and expenditure; (iii) affected land production and income loss; and (iv) affected informal land production and income loss. (2)Monitoring and evaluation of the progress of land acquisition include: (i) progress of land acquisition; (ii) progress of temporary land occupation; and (iii) progress of house demolition and reconstruction. (3) Monitoring and evaluation of funds mobilization and utilization include: (i) situation of in-place funds; and (ii) utilization of funds (planned and actual). (4) Monitoring and evaluation of living standards of relocated of people include: (i) production and living conditions before displacement; (ii) production and living conditions after displacement; and (iii) comparative analysis and evaluation of the employment and living conditions before and after displacement. (5) Evaluation of the capacity of resettlement institutions and the situation of public participation and complaints handling.

C External Monitoring Agency

The external monitoring agency in this project will be undertaken by an external institution entrusted by SPMO and accredited by ADB.

D Organization and work division for resettlement monitoring and evaluation z SPMO entrusts external institutions take charge of the investigation, date collection, computing and analysis about the monitoring and evaluation work, and review the research results; z The external monitoring institutes compose the Monitoring and Evaluation Group of the Risk Mitigation of Endangered Reservoir Project, the tasks of which conclude monitoring and evaluating the resettlement according to the Involuntary Resettlement Policy of ADB; designing an outline of the monitoring and evaluation work; setting the monitoring spot; monitoring field investigation and internal analysis; and preparing monitoring and evaluation reports; z SPMO provides convenience on personal and traffic to Independent Resettlement Monitoring and Evaluation Institution during on-the-spot monitoring and investigation.

E. Methods of resettlement monitoring and evaluation.

z Monitoring and evaluation shall adopt the combined methods of site survey, computational analysis and expert review; z The method of point-area method shall be adopted in the survey. The progress, funds, organizations and management of resettlement implementation shall be fully explored; the progress, funds, organizations and management of the resettlement implementation shall be fully explored. While sample survey shall be conducted for the APs. z The random sampling method shall be adopted in the sampling survey, while the typical samples shall be followed up for survey. (Samples are taken and categorized among all the affected households involved in the socio-economic surveys at the project preparatory stages. It is primarily decided that 20-30 households affected by informal farmland occupation are sampled. All of the vulnerable groups if any are surveyed as sample families). The methods of tabular format survey, interview discussion, archives consultation etc. shall be adopted in the full-coverage survey. z In addition to the written materials, other materials such as photos, recordings, videos and articles in-kind shall be also collected.

F M&E Report for resettlement external monitoring

According to the requirements of ADB and the project schedule, the external monitoring and evaluation agency would submit the monitoring report and the evaluation report to ADB and SPMO twice a year during resettlement implementation and will then submit annual evaluation reports for two years to ensure resettlement was completed successfully.