World Bank Document

RP1360 v2

World Bank-financed Ningbo Municipal Solid Waste Minimization and Recycling Project

Public Disclosure Authorized

Resettlement Action Plan of the Ningbo Municipal Solid Waste Minimization and Recycling Project

Public Disclosure Authorized

November 2012

Letter of Commitment

The Ningbo Municipal Government (NMG) has applied for a loan from the World Bank for the Project through the Ministry of Finance of the People’s Republic of China (the “PRC”). Therefore, the Project must be implemented in accordance with the Bank’s social safeguard policies. This resettlement action plan (RAP) represents a key requirement of the Bank and becomes a basis of the land acquisition, house demolition and resettlement work of the Project. This RAP complies with the applicable laws of the PRC and local regulations. In order to complete resettlement more effectively, this RAP includes some additional measures, and implementation and monitoring arrangements.

NMG hereby acknowledges the contents of this RAP, and warrants that the budgetary funds under this RAP will be included in the general budget of the Project and made available on time. NMG has discussed the first draft of this RAP with the administrative departments concerned and obtained their consensus. The local governments in the project area will implement the Project and the related resettlement work within their jurisdictions.

NMG: ______(Signature) ______(Date)

Executive Summary

1. Overview of the Project

The World Bank-financed Ningbo Municipal Solid Waste Minimization and Recycling Project (hereinafter, the “Project”) consists of four components: MSW Separation, Collection and Sorting, Kitchen Waste Treatment Facility Construction, Implementation Capacity Building, and Implementation Organization and Project Management.

The Project will break ground in June 2013 and be completed in October 2015. Land acquisition (LA), house demolition (HD), compensation and resettlement will begin in December 2012 and be completed in December 2013. The general resettlement budget of the Project is 140,774,800 yuan, accounting for 10.56% of the gross investment of the Project.

2. Resettlement impacts

The main resettlement impacts of the Project are permanent and temporary land occupation. 170.6 mu of land will be acquired permanently and 42 mu of land occupied temporarily for the Project. Five communities/villages in five towns, three districts of Ningbo Municipality will be affected by resettlement, in which LA and HD involve four communities/villages respectively. 121 households with 683 persons will be affected in total, in which 72 persons, 19 land contracting households with 54 persons and five enterprises with 370 persons will be affected by temporary land occupation, and 67 households with 187 persons affected directly by LA and HD.

3. Policy framework and entitlements

In order to avoid or reduce negative impacts of LA, adequate consultation was conducted on the potential site of the Project, the affected village groups and persons at the feasibility study stage. An optimum option was selected through comparison.

This RAP is based on the Land Administration Law of the PRC (2004), the Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28), the applicable policies of Zhejiang Province, and the Bank’s policy on involuntary resettlement (OP4.12) and relevant social safeguard policies. The resettlement objectives and framework of the Project have been developed in consultation with the local governments and affected persons (APs) based on the above policies. The objectives of resettlement include: a) Involuntary resettlement should be avoided where feasible, or minimized, exploring all viable alternative project designs; b) Where it is not feasible to avoid resettlement, resettlement activities should be conceived and executed as sustainable development programs; c) providing sufficient investment resources to enable the persons displaced by the project to share in project benefits. Displaced persons should be meaningfully consulted and should have opportunities to participate in planning and implementing resettlement programs. Displaced persons should be assisted in their efforts to improve their livelihoods and standards of living or at least to restore them, in real terms, to pre-displacement levels or to levels prevailing prior to the beginning of

3 project implementation, whichever is higher. The resettlement policy framework of the Project covers the following: a) The resettlement plan or resettlement policy framework includes measures to ensure that the displaced persons are: (i) informed about their options and rights pertaining to resettlement; (ii) consulted on, offered choices among, and provided with technically and economically feasible resettlement alternatives; and (iii) provided prompt and effective compensation at full replacement cost for losses of assets attributable directly to the project; b) If the impacts include physical relocation, the resettlement plan or resettlement policy framework includes measures to ensure that the displaced persons are: (iv) provided assistance (such as moving allowances) during relocation; and (v) provided with residential housing, or housing sites, or, as required, agricultural sites for which a combination of productive potential, locational advantages, and other factors is at least equivalent to the advantages of the old site; (c) Where necessary to achieve the objectives of the policy, the resettlement plan or resettlement policy framework also include measures to ensure that displaced persons are: (vi) offered support after displacement, for a transition period, based on a reasonable estimate of the time likely to be needed to restore their livelihood and standards of living; and (vii) provided with development assistance in addition to compensation measures described in paragraph 6(a) (iii), such as land preparation, credit facilities, training, or job opportunities.

4. Compensation and restoration

Compensation for permanent LA includes location-based composite land price for LA (land compensation fees, resettlement subsidies), and compensation fees for ground attachments and young crops. Since different districts of Ningbo Municipality vary greatly in socioeconomic profile, compensation rates for LA vary greatly from district to district. The location-based composite land price of Jiangdong District is 96,500 yuan/mu (land compensation fees 43,600 yuan/mu and resettlement subsidy 52,900 yuan/mu) and that of Jiangbei District 55,000 yuan/mu, the compensation rate in Yinzhou District is 65,000 yuan/mu, and the compensation rate for young crops is 1,000 yuan/mu. Temporary land occupation will be caused by the construction of the sewer line mainly, and about 42 of land will be occupied temporarily. The temporarily occupied land will be restored immediately after construction. Through consultation with the affected village, the temporarily occupied collective land will be compensated for at 1,200 yuan/mu. According to the construction design, the occupation period will be one month. The compensation rates for demolition of rural residential houses vary from district to district. The compensation rates of Jiangdong District are 6,000 yuan/m2 for masonry concrete structure, 5,500 yuan/m2 for masonry timber structure and 5,000 yuan/m2 for earth timber structure, moving subsidy 700 yuan/household, and transition subsidy 10 yuan/m2 of the building area of the demolished house. The compensation rates of Jiangbei District are 5,500 yuan/m2 for masonry concrete structure, 5,000 yuan/m2 for masonry timber structure and 4,000 yuan/m2 for earth timber structure, moving subsidy 700 yuan/household, and transition subsidy 10 yuan/m2 of the building area of the demolished house.

The Project also involves the demolition of unlicensed rural industrial buildings, which will be compensated for at 1,200 yuan/m2 through consultation with its proprietor Sangjia Community collective, Fuming Sub-district, Jiangdong District, which may rebuild industrial buildings lawfully on its reserved land for rent. All residents in Sangjia Community and Xishao Village affected by LA are of nonagricultural status in household registration. Although the villagers of Xishao, Xuanpei and Dingqiao Villages are of agricultural status in household registration, their per capita net income is over 16,000 yuan. Since agriculture is not the major income source for the villagers in the affected villages, LA will affect the APs’ income slightly. The per capita income loss of Sangjia Community is the highest at 738.06 yuan, with an average income loss rate of 3.32%, the average income loss rate of Xuanpei Village is 3.12%, and the average income loss rates of the other two affected villages are less than 3%. The income restoration measures for the APs include: (1) cash compensation; (2) endowment insurance for land-expropriated farmers (LEFs); (3) cultivating cash crops of higher economic value through crop restructuring; (4) skills training, where APs are trained to deal with tertiary industries, get employed or start up a business; and (5) resettlement on reserved collective land. Depending on the socioeconomic profile of each affected village, land compensation fees and resettlement subsidies may be used in different ways as determined at the village congress. Land compensation fees and resettlement subsidies will be paid directly to the village or community committee, which will determine how these funds will be used. Young crop compensation fees will be paid directly to land contractors. In addition, the Ningbo PMO will arrange special funds in coordination with the district labor and social security bureaus to provide skills training to laborers in the affected households (AHs) (in which about 50% trainees are women). The households affected by HD may choose cash compensation or property swap. In the former mode, the displacer provides cash compensation and a displaced household purchases resettlement housing itself; in the latter mode, the displacer provides residential housing to resettle a displaced household as replacement.

5. Public participation and information disclosure

All APs (with 30% being women) have been informed of the key points of this RAP by various means and involved in the Project, such as meeting, interview, FGD, public participation meeting and community consultation, and their opinions have been well incorporated into this RAP. This RAP will be published on the websites of the Bank and the Ningbo Municipal Government by the end of November 2012, and the Resettlement Information Booklet (RIB) will be distributed to the affected villages before this RAP is implemented. A grievance redress system has been established. All agencies will accept grievances and appeals from the APs for free, and costs so reasonably incurred will be disbursed from the contingencies.

6. Grievances and appeals

An appeal procedure has been established to settle disputes over compensation and resettlement. The aim is to respond to appeals of the APs timely and

5 transparently. Grievances about the Project may be from collective LA, temporary land occupation and HD. Correspondingly, the Ningbo Municipal Government, district governments, Ningbo PMO, and the affected township governments and village committees will coordinate and handle grievances and appeals arising from resettlement. The APs may file appeals about any aspect of resettlement, including compensation rates.

7. Organizational structure

The Ningbo PMO is the executing agency of the Project, and the Ningbo Municipal Environment Sanitation Office, and Ningbo Municipal Land and Resources Bureau are implementing agencies (IAs), and the district land and resources bureaus, and township governments concerned are responsible for the implementation of this RAP.

8. Monitoring and evaluation

In order to ensure the successful implementation of this RAP, resettlement implementation will be subject to internal and external monitoring. The internal monitoring agency is the NIngbo PMO, and an internal monitoring report will be submitted to ADB semiannually. The NIngbo PMO will appoint an independent agency to conduct external monitoring and evaluation (M&E) semiannually, and M&E costs will be included in the resettlement budget.

9. Resettlement budget

All costs incurred during LA and resettlement will be included in the general budget of the Project. Based on prices in December 2011, the total resettlement costs of the Project are 140 million yuan, including 85,390,800 yuan for the central transfer station (CTS) of Jiangdong District (60.66%), 7,616,900 yuan for the CTS of Jiangbei District (5.41%), 7,353,600 yuan for the CTS of Yinzhou District (5.22%), and 40,413,400 yuan for the Yinzhou Chuyu Waste Treatment Plant (WTP) (28.71%). The general resettlement budget includes compensation fees for permanent acquisition of collective land of 10,786,900 yuan (7.66% of general budget), compensation fees for temporary land occupation of 50,400 yuan (0.04% of general budget), compensation fees for demolition of residential houses and unlicensed properties of 99,583,400 yuan (70.74% of general budget), compensation fees for demolition of infrastructure and ground attachments of 494,500 yuan (0.35% of general budget), and taxes and management costs of 29,859,600 yuan (21.21% of general budget).

Foreword

I. Purpose of preparing this resettlement action plan 1 The resettlement action plan (RAP) is prepared in accordance with the applicable laws of the People’s Republic of China and local regulations and a series of provisions in the Bank Operational Policy OP4.12 on Involuntary Resettlement for the purpose of “developing an action plan for resettlement and restoration for the people affected by the project, so that they benefit from the project, their standard of living is improved or at least restored after the completion of the project”.

II. Definitions of terms Displaced persons 2 Based on the criteria for eligibility for compensation, “Displaced Persons” may be classified in one of the following three groups: a) those who have formal legal rights to land (including customary and traditional rights recognized under the laws of the country); b) those who do not have formal legal rights to land at the time the census begins but have a claim to such land or assets—provided that such claims are recognized under the laws of the country or become recognized through a process identified in the Resettlement Plan; and c) those who have no recognizable legal right or claim to the land they are occupying. 3 Persons covered under paragraphs 2(a) and (b) are provided compensation for the land they lose, and other assistance. Persons covered under paragraph 2(c) are provided resettlement assistance in lieu of compensation for the land they occupy, and other assistance, as necessary, to achieve the objective set out in this policy, if they occupy the project areas prior to a cut-off date① established by the borrower and acceptable to the World Bank. Persons who encroach on the area after the cut-off date are not entitled to compensation or any other form of resettlement assistance. All persons included in paragraph 2(a), (b), or (c) are provided compensation for loss of assets other than land.

Compensation and resettlement measures 4 To address the following impacts of the involuntary taking of land: (i) displacement or loss of shelter; (ii) lost of assets or access to assets; or (iii) loss of income sources or means of livelihood, whether or not the affected persons must move to another location, a Resettlement Plan or a resettlement policy framework shall be prepared to cover the following: (a) The Resettlement Plan or resettlement policy framework includes measures to ensure that the displaced persons are: (i) informed about their options and rights pertaining to resettlement;

① Normally, this cut-off date is the date the census begins. The cut-off date could also be the date the project areas was delineated, prior to the census, provided that there has been an effective public dissemination of information on the area delineated, and systematic and continuous dissemination subsequent to the delineation to prevent further population influx.

(ii) consulted on, offered choices among, and provided with technically and economically feasible resettlement alternatives; and (iii) provided prompt and effective compensation at full replacement cost①, for losses of assets attributable directly to the project. (b) If the impacts include physical displacement, the Resettlement Plan or resettlement policy framework includes measures to ensure that the displaced persons are: (i) provided assistance (such as moving allowances) during displacement; and (ii) provided with residential housing, or housing sites, or, as required, agricultural sites for which a combination of productive potential, locational advantages, and other factors is at least equivalent to the advantages of the old site. (c) Where necessary to achieve the objective of the policy, the Resettlement Plan or resettlement policy framework also includes measures to ensure that displaced persons are: (i) offered support after displacement, for a transition period, based on a reasonable estimate of the time likely to be needed to restore their livelihood and standards of living; (ii) provided with development assistance in addition to compensation measures described in paragraph 4(a)(iii), such as land preparation, credit facilities, training, or job opportunities. 5 Cut-off date: means the date of publication of the announcement of land acquisition and property demolition in this project. After this date, the displaced persons shall not build, rebuild or expand their properties; shall not change the uses of their properties and land; shall not lease their land, lease, sell or purchase their properties; and any person that moves in after this date shall not qualify as a displaced person.

① "Replacement cost" is the method of valuation of assets that helps determine the amount sufficient to replace lost assets and cover transaction costs. In applying this method of valuation, depreciation of structures and assets should not be taken into account.

Contents

1. Overview of the Project ...... 1

1.1 Background and Description of the Project ...... 1 1.1.1 Background of the Project ...... 1 1.1.2 Components of the Project and Identification of Resettlement Impacts ...... 1 1.1.3 Summary of Resettlement Impacts ...... 4 1.2 Socioeconomic Benefits ...... 4 1.3 Estimated Investment in Resettlement and Implementation Plan ...... 4

2 Impacts of the Project ...... Error! Bookmark not defined.

2.1 Measures to Reduce or Minimize Resettlement Impacts ...... 5 2.1.1 Principles for Project Design and Site Selection ...... 5 2.1.2 Comparison of Options ...... 5 2.2 Scope of Impact Survey of LA and HD ...... 5 2.3 Survey Methods and Process ...... 6 2.4 Permanent Acquisition of Collective Land and Impact Analysis ...... 7 2.4.1 Permanent Acquisition of Collective Land ...... 7 2.4.2 Impact Analysis ...... 7 2.5 Permanent Occupation of State-owned Land and Impact Analysis ...... 10 2.6 Temporary Land Occupation ...... 11 2.7 Demolition of Rural Houses ...... 11 2.7.1 Demolition of Rural Residential Houses ...... 11 2.7.2 Demolition of Rural Non-residential Properties ...... 12 2.7.3 Demolition of Rural Unlicensed Properties ...... 12 2.8 Affected Infrastructure and Ground Attachments ...... 13 2.9 Affected Ethnic Minorities ...... 13 2.10 Affected Population ...... 13 2.10.1 Summary ...... 13 2.10.2 Affected Vulnerable Groups ...... 14 2.10.3 Affected Women ...... 14

3. Socioeconomic Profile ...... 16

3.1 Socioeconomic Profile of the Project Area ...... 16 3.1.1 Socioeconomic Profile of Ningbo Municipality and Districts ...... 16 3.1.2 Socioeconomic Profile of the Affected Townships (Sub-districts) ...... 17 3.1.3 Socioeconomic Profile of the Affected Villages (Communities) ...... 18 3.2 Socioeconomic Profile of the Affected Population ...... 19 3.2.1 Ethnic and Gender Analysis ...... 19 3.2.2 Age Structure ...... 19 3.2.3 Educational Level ...... 19 3.2.4 Housing Size ...... 19 3.2.5 Land Resources ...... 20 3.2.6 Household Properties ...... 20 3.2.7 Household Income and Expenditure ...... 20 3.3 Summary ...... 20

4. Policy Framework ...... Error! Bookmark not defined.

4.1 Laws, Regulations and Policies Applicable to Resettlement ...... 22 4.2 Objectives and Framework of the Bank’s Policy on Resettlement ...... 23 4.3 Key Provisions of PRC Laws, Regulations and Policies ...... 23 4.4 Main Differences between Bank Policies and PRC Laws ...... 25 4.5 Principles and Applicable Policies for Compensation ...... 26 4.6 Cut-off Date of Compensation ...... 27 4.7 Entitlement Matrix ...... 27

5. Compensation Rates ...... 29

5.1 Compensation Rates for Acquisition of Collective Land ...... 29 5.2 Compensation Rates for the Demolition of Rural Houses ...... 30 5.2.1 Compensation Rates for the Demolition of Rural Residential Houses ...... 30 5.2.2 Compensation Rates for the Demolition of Rural Unlicensed Properties ...... 31 5.3 Compensation Rates for Infrastructure and Attachments ...... 31 5.4 Compensation Rates for Temporary Land Occupation ...... 31 5.5 Rates of Other Costs ...... 32 5.6 Supporting Measures for Women ...... 33

6. Resettlement and Income Restoration ...... 34

6.1 Resettlement Objectives ...... 34 6.2 Principles for Resettlement Restoration Programs...... 34 6.3 Income Restoration Programs for Villages/Communities Affected by LA ...... 34 6.3.1 Summary ...... 34 6.3.2 Cash Compensation ...... 36 6.3.3 Endowment Insurance for LEFs ...... 37 6.3.4 Employment Training Program ...... 37 6.3.5 Resettlement on Reserved Collective Land ...... 38 6.4 Restoration Programs for the Demolition of Rural Houses ...... 40 6.4.1 Restoration Programs for the Demolition of Rural Residential Houses ...... 40 6.4.2 Restoration Program for the Demolition of Rural Unlicensed Properties ...... 43 6.5 Restoration Program for Temporary Land Occupation ...... 43 6.6 Restoration Program for Infrastructure and Attachments ...... 44 6.7 Restoration Program for Protection of Women’s Rights and Interests ...... 44

7. Organizational Structure for Resettlement ...... 45

7.1 Organizational Setup ...... 45 7.1.1 Organizational Setup ...... 45 7.1.2 Composition and Responsibilities ...... 45 7.1.3 Staffing ...... 46 7.1.4 Organizational Chart ...... 46 7.2 Coordination among Agencies ...... 47

8. Public Participation and Grievance Redress ...... 48

8.1 Public Participation ...... 48 8.1.1 Public Participation at the Preparation Stage ...... 48 8.1.2 Public Participation at the Implementation Stage ...... 48

8.2 Grievances and Appeals ...... 49

9. Budget and Funding Sources ...... 51

9.1 Resettlement Budget ...... 51 9.2 Annual Investment Plan ...... 52 9.3 Disbursement and Management of Resettlement Funds ...... 52

10. Resettlement Implementation Plan ...... 54

10.1 Principles for Resettlement Implementation ...... 54 10.2 Resettlement Implementation Schedule ...... 54

11. Monitoring and Evaluation ...... 56

11.1 Internal Monitoring ...... 56 11.1.1 Implementation Procedure ...... 56 11.1.2 Scope of Monitoring ...... 56 11.1.3 Internal Monitoring Reporting ...... 56 11.2 Independent External Monitoring ...... 56 11.2.1 Purpose and Tasks ...... 56 11.2.2 Independent M&E Agency ...... 57 11.2.3 Procedure and Scope of Monitoring...... 57 11.2.4 Monitoring Indicators ...... 57 11.2.5 External Monitoring Reporting ...... 58 11.3 Post-evaluation ...... 58

Appendixes ...... Error! Bookmark not defined.

Appendix 1: Schematic Map of the Project ...... 59 Appendix 2: Distribution of Survey Samples ...... 59 Appendix 3: Policy on Resettlement Insurance for LEFs ...... 59 Appendix 4: Contribution Levels and Benefits of Resettlement Insurance for LEFs in Ningbo ...... 63 Appendix 5: Public Participation and Minutes ...... 64 Appendix 6: Gender Analysis Form ...... 66 Appendix 7: Summary of Sewer Lines...... 67 Appendix 8: Detailed Estimates of Resettlement Costs ...... 68 Appendix 9: Note to the Use of Land for the Haishu Xujiacao CTS ...... 75 Appendix 10: Note to the Use of Land for the Dongqianhu CTS ...... 76 Appendix 11: Resettlement Information Booklet ...... 1

III

List of Tables

Table 1-1 Identification of Components and Resettlement Impacts ...... 2 Table 2-1 Comparison of Options ...... 5 Table 2-2 Summary of the Project Area ...... 5 Table 2-3 Summary of Permanently Acquired Collective Land ...... 8 Table 2-4 Analysis of Impacts of Permanent Acquisition of Collective Land ...... 8 Table 2-5 Summary of Temporarily Occupied Land ...... 11 Table 2-6 Summary of Demolished Rural Residential Houses ...... 11 Table 2-7 Analysis of Impacts of Demolition of Residential Houses ...... 12 Table 2-8 Summary of Demolished Rural Unlicensed Properties ...... 12 Table 2-9 Summary of Enterprises Affected by Demolition of Rural Unlicensed Properties ...... 12 Table 2-10 Affected Ground Attachments ...... 13 Table 2-11 Summary of Affected Population ...... 14 Table 3-1 Socioeconomic Profile of Ningbo Municipality and Districts (2011) ...... 17 Table 3-2 Per Capita Net Income of Farmers in the Affected Townships (2011) ...... 18 Table 3-3 Socioeconomic Profile of Ningbo Villages (Communities) (2011) ...... 19 Table 3-4 Analysis of Household Income and Expenditure...... 20 Table 4-1 Abstract of Key Provisions of Measures for Acquisition of Collective Land of Ningbo Municipality and Districts ...... 24 Table 4-2 Principles for Resettlement ...... 26 Table 4-3 Entitlement Matrix ...... 27 Table 5-1 Compensation Rates for LA of Jiangdong District ...... 29 Table 5-2 Compensation Rates for LA of Jiangbei District...... 29 Table 5-3 Location-based Composite Land Prices for LA in Yinzhou District ...... 30 Table 5-4 Compensation Rates for Rural Residential Houses ...... 30 Table 5-5 Compensation Rates for Attachments of Residential Houses ...... 31 Table 5-6 Rates of Taxes on Resettlement ...... 32 Table 6-1 Summary of Income Losses of the Affected Villages/Communities ...... 35 Table 6-2 Expected Resettlement Modes of Households Affected by LA ...... 35 Table 6-3 Summary of Compensation for the Affected Villages/Communities ...... 36 Table 6-4 Agricultural Training Programs in the Project Area ...... 38 Table 6-5 Nonagricultural Training Programs in the Project Area ...... 38 Table 6-6 Income Levels of Sangjia Community before and after LA ...... 39 Table 6-7 Income Levels of Xishao Village before and after LA ...... 39 Table 6-8 Income Levels of Xuanpei Village before and after LA ...... 40 Table 6-9 Income Levels of Dingqiao Village before and after LA ...... 40 Table 7-1 Resettlement Agencies and Equipment ...... 46 Table 8-1 Information Disclosure and Public Participation at the Preparation Stage...... 48 Table 8-2 Public Participation Plan ...... 48 Table 8-3 Agencies and Staff Accepting Grievances and Appeals from the APs ...... 50 Table 9-1 Resettlement Budget Sheet ...... 51 Table 9-2 Resettlement Investment Plan ...... 52 Table 10-1 Resettlement Implementation Schedule ...... 54

List of Figures

Figure 2-1 Current Situation for Site Selected for the Jiangdong CTS ...... 9 Figure 2-2 Current Situation for Site Selected for the Jiangbei CTS ...... 10 Figure 2-3 Current Situation for Site Selected for the Yinzhou CTS ...... 10 Figure 2-4 Current Situation for Site Selected for the Yinzhou Chuyu WTP ...... 10 Figure 6-1 Resettlement Community at 1 Baoqing Road, Jiangbei District under Construction ...... 42 Figure 7-1 Resettlement Organizational Chart ...... 47

ABBREVIATIONS

AH - Affected Household AP - Affected Person CTS Central Transfer Station DMS - Detailed Measurement Survey FGD - Focus Group Discussion HD - House Demolition LA - Land Acquisition PMO - Laibin Project Management Office M&E - Monitoring and Evaluation MSW - Municipal Solid Waste Ningbo City Appearance and Environmental NESO - Sanitation Office NMG - Ningbo Municipal Government PRC - People’s Republic of China RAP - Resettlement Action Plan RIB - Resettlement Information Booklet WTP - Waste Treatment Plant

Units

Currency unit = Yuan (CNY) 1.00 yuan = $0.15 1 hectare = 15 mu

1. . Overview of the Project

1.1 Background and Description of the Project

1.1.1 Background of the Project The Project will be implemented by NMG in cooperation with the Bank in order to dispose of, reduce and recycle municipal solid waste (MSW) in Ningbo Municipality. In the Project, NMG will introduce advanced concepts and draw on international experience extensively to establish a MSW sorting, collection, transport and disposal system that will improve the municipality’s environmental quality, waste disposal rate, environmental sanitation level and investment environment, and maintain an ecological balance. This is also a prerequisite to sustainable economic and social development. The Project has been included in the National Plan of Alternative World Bank-financed Projects for Fiscal Years 2011-2013. The gross investment in the Project is CNY1.326 billion, including a Bank loan of US$80 million, equivalent to CNY492 million, while the remaining CNY834 million will be counterpart funds from NMG. The planning period is up to 2020, in which the implementation period of cooperation with the Bank is 2012-2017. The Project will be implemented in the built-up urban area of Ningbo.

1.1.2 Components of the Project and Identification of Resettlement Impacts The Project consists of four components – MSW Separation, Collection and Sorting, Kitchen Waste Treatment Facility Construction, Implementation Capacity Building, and Implementation Organization and Project Management, in which two components involve resettlement, which are MSW Separation, Collection and Sorting, and Kitchen Waste Treatment Facility Construction. In particular, MSW Separation, Collection and Sorting includes the construction of CTSs in Jiangdong, Jiangbei, Haishu and Yinzhou Districts, and Dongqianhu Town, and one sorting center, the reconstruction of three small transfer stations, and the functional transformation of 28 small transfer stations, and Kitchen Waste Treatment Facility Construction includes the construction of the Chuyu WTP. Based on preliminary identification, the resettlement impacts of the Project are LA and HD. See Table 1-1. See Appendix 1 for the schematic map of the Project. This RAP has been prepared in accordance with the Feasibility Study Report of the Project. If there is any change to the project design at the design or implementation stage, resulting a major change in resettlement impacts, this RAP will be updated timely.

Table 1-1 Identification of Components and Resettlement Impacts

Location (or No. Component Subcomponent Land shape Occupied land area Key resettlement impacts Remarks direction) Sangjia Acquiring 28.6 mu of land in Sangjia Quadrangular, Community, 28.6 mu, all being cultivated Community, demolishing houses totaling (1) Jiangdong CTS 112.1m long, Fuming land 55,300 m2, affecting 8 households with 31 105.3m wide Sub-district, persons Jiangdong District Acquiring 25.1 mu of land in Xishao Village, demolishing houses totaling 130 Quadrangular, 25.1 mu, 20.456 mu of Xishao Village, (2) Jiangbei CTS (including m2, affecting one household with 11 149.3m long, cultivated land, 4.644 mu of Zhuangqiao sorting) persons; demolishing houses totaling 520 112.1m wide housing land Sub-district m2 in Hongtang Sub-district, affecting 5 households with 11 persons Quadrangular, Acquiring 36.9 mu of land in Dingqiao Jiangshan Town, MSW (3) Yinzhou CTS 149.3m long, 36.9 mu of cultivated land Village, affecting 20 households with 66 Yinzhou District Separation, 112.1m wide persons 1 Collection Formerly occupying 12.5 (4) Reconstruction of Weihai 219 Weihai Road, Reconstructed on the former site, and Sorting Rectangular mu, involving no additional Road CTS, Zhenhai District Zhenhai District involving neither LA nor HD LA South of Xujiacao, Acquired as state-owned land in 2000, east of Miaohong (5) Haishu Xujiacao CTS Rectangular 7.5 mu involving no resettlement, as shown in Road, west of Appendix 10 Wangchun Street Acquired as state-owned land in 2009, Limin Village, (6) Dongqianhu CTS Rectangular 5.4 mu involving no resettlement, as shown in Dongqianhu Town Appendix 11 (6) Reconstruction of three Reconstructed on the former site, Rectangular Involving no additional LA existing small transfer stations involving neither LA nor HD (7) Functional transformation of Reconstructed on the former site, / Involving no LA existing small transfer stations involving neither LA nor HD Kitchen 80 mu, including 32 mu of Waste Near the Acquiring 80 mu of land in Pei’ao Village, cultivated land, 31 mu of 2 Treatment Yinzhou Chuyu WTP Rectangular Yemao’ao Landfill Xuanpei Village, affecting 19 households woodland, 14 mu of housing Facility in Yinzhou District with 38 persons land and 3 mu of ponds Construction

Location (or No. Component Subcomponent Land shape Occupied land area Key resettlement impacts Remarks direction)

Fenglin Village, Completed and put into operation in 2001; Fenglin Waste Incineration Xiaogang biogas produced by the Chuyu WTP is Related Rectangular 256 mu Waste Power Plant Sub-district, delivered to the Fenglin Waste project 3 treatment Beilun District Incineration Power Plant facilities Xuanpei Village, Completed and put into operation in 2004; Yemao’ao Landfill Oval 92 mu Dongqiao Town, waste produced by the Project is Yinzhou District delivered to the Yemao’ao Landfill Huang’ai and LA completed in 2009, and completed in Yinxi Wastewater Treatment Lianfeng Villages, October 2012; wastewater produced by Related Rectangular 362.9745 mu Plant Shiqi Sub-district, the Chuyu WTP is directed to this plant project Wastewater Yinzhou District via a pipeline after preliminary treatment 4 treatment Xuanpei, Sanli Occupying 42 mu of land temporarily, facilities and Zhangjiadian caused mainly by the laying of the sewer Sewer line Linear 42 mu Villages, line from the Yinzhou Chuyu WTP to the Dongqiao Town, Yinxi Wastewater Treatment Plant Yinzhou District

1.1.3 Summary of Resettlement Impacts The main resettlement impacts of the Project are permanent and temporary land occupation. 170.6 mu of land will be acquired permanently and 42 mu of land occupied temporarily for the Project. Five communities/villages in five towns, three districts of Ningbo Municipality will be affected by resettlement, in which LA and HD involve four communities/villages respectively. 121 households with 683 persons will be affected in total, in which 72 persons, 19 land contracting households with 54 persons and five enterprises with 370 persons will be affected by temporary land occupation, and 67 households with 187 persons affected directly by LA and HD. 170.6 mu of collective land will be acquired permanently for the Project, affecting 61 households with 165 persons, and temporary land occupation will affect 42 households with 72 persons, mainly due to the construction of the sewer line. Residential houses with a total area of 5,360 m2 will be demolished for the Project, affecting 25 households with 60 persons, and unlicensed properties with a total area of 55,300 m2 will be demolished, affecting five lessee enterprises, affecting 370 workers. The Project will also affect eight types of infrastructure and ground attachments.

1.2 Socioeconomic Benefits

The main socioeconomic benefits of the Project include: (1) After the MSW separation system is established, the living and working environment of residents will be improved greatly, and sustainable economic development promoted. (2) After source MSW separation is realized, MSW will be recycled or disposed of more effectively, thereby realizing MSW reduction and recycling. (3) Protect residents from pollution, reduce the incidence of diseases arising from pollution, reduce medical expenses, and protect people’s health. (4) The Project will further strengthen and improve Ningbo’s urban infrastructure, thereby attracting more investors and promoting rapid economic development.

1.3 Estimated Investment in Resettlement and Implementation Plan

The gross investment in the Project is CNY1.326 billion, including a Bank loan of US$80 million, equivalent to CNY492 million, while the remaining CNY834 million will be counterpart funds from NMG. The general resettlement budget of the Project is 140,774,800 yuan, accounting for 10.56% of the gross investment of the Project, all from domestic counterpart funds. The overall construction period of the Project is five years, and resettlement will be implemented during 2013-2015.

2 Impacts of the Project

2.1 Measures to Reduce or Minimize Resettlement Impacts

2.1.1 Principles for Project Design and Site Selection Resettlement impacts have been minimized at the design stage on the following principles:  Avoiding or minimizing occupation of existing and planned residential areas;  Avoiding or minimizing occupation of high-quality farmland;  Gaining access to the proposed construction sites through existing state and local roads;  Avoiding or minimizing occupation of environmentally sensitive areas.

2.1.2 Comparison of Options At the design stage, through the field survey of the project area and the optimization of the project design, negative impacts of the Project have been minimized without affecting the design outputs, especially the amount of resettlement, as shown in Table 2-1. In addition, at the detailed design stage, the project design will be further optimized to avoid or minimize LA and HD impacts.

Table 2-1 Comparison of Options

Subcom Component Option 1 Option 2 Conclusion ponent Parking vehicles on the ground, Parking vehicles under the Option 1 is MSW arranging main waste transfer ground, arranging main waste recommended, with little Separation, Jiangdo premises at the center of the transfer premises at the center of difference in Collection ng CTS site, with a floor area of 3,037 the site, with a floor area of 3,037 resettlement impacts and Sorting m2 and a building area of 5,021 m2 and a building area of 5,021 m2 m2 Proposed site 1 is located in Proposed site 2 is located in In Option 2, 8 mu less of Pei’ao Natural Village, Xuanpei Zhoumen Natural Village, Xuanpei cultivated land is Village, Dongqiao Town; 80 mu Village, Dongqiao Town; 80 mu of acquired, houses with a Kitchen of land will be acquired, land will be acquired, including 32 total area of 11,290 m2 Waste Yinzhou including 40 mu of cultivated mu of cultivated land, 31 mu of of 113 households will Treatment Chuyu land and 40 mu of housing land, woodland, 14 mu of housing land not be demolished, and Facility WTP and houses with a total area of and 3 mu of ponds, and houses no basic farmland will Construction 16,000 m2 will be demolished, with a total area of 4,710 m2 will be be acquired. Option 2 is affecting 132 households, and demolished, affecting 19 recommended. involving some basic farmland. households.

2.2 Scope of Impact Survey of LA and HD

In the recommended option, five townships/sub-districts in three districts of Ningbo Municipality will be affected by resettlement, including one community in one sub-district in Jiangdong District, two administrative villages of two sub-districts in Jiangbei District, and two administrative villages of two sub-districts in Yinzhou District. See Table 2-2.

Table 2-2 Summary of the Project Area

No. Subcomponent District and sub-district Village / community Fuming Sub-district, Jiangdong 1 Jiangdong CTS Sangjia Community District Zhuangqiao and Hongtang Xishao and Xiashen 2 Jiangbei CTS Sub-districts, Jiangbei District Villages 3 Yinzhou CTS Jiangshan Town, Yinzhou District Dingqiao Village 4 Yinzhou Chuyu WTP Dongqiao Town, Yinzhou District Xuanpei Village

2.3 Survey Methods and Process

During the survey of the Project, a number of methods, including questionnaire survey, interview, observation and literature review, were used together to acquire comprehensive resettlement information, and provide a strong basis for the preparation of this RAP and decision-making by resettlement experts. The survey began in early 2012. In 2012, Ningbo PMO appointed the Shanghai Environmental Sanitation Engineering Design Institute to prepare the Proposal of the Ningbo Municipal Solid Waste Minimization and Recycling Project, which has been approved by the Zhejiang Provincial Development and Reform Commission. In May 2012, in order to learn the resettlement impacts of the Project, engineering technicians from the Shanghai Environmental Sanitation Engineering Design Institute conducted a resettlement impact survey on the project area with the assistance of the affected villages and villagers. During July-September 2012, the survey team of Hohai University conducted a sampling socioeconomic survey on the project area according to the Feasibility Study Report (with a sampling rate of about 20%), covering household population, impacts of LA and HD, household economic conditions and expected resettlement modes. During the survey, the resettlement office also listened to comments of the affected village committees and APs on LA, HD and resettlement, and conducted extensive consultation. During October-November 2012, on the basis of the feasibility study and survey data, and public consultation, this RAP was completed. During the survey, the survey staff also listened extensively to expectations of the village committees and villagers on LA and resettlement, and conducted extensive consultation. The key findings are as follows: (1) Almost all APs know that the Project is about to break ground, and support it. (2) The Project involves the permanent acquisition of rural collective land, temporary land occupation, house demolition, and the demolition of infrastructure and ground attachments. (3) For almost all APs, income is mainly from industry, services or other sources other than agriculture (e.g., rental income). (4) Local residents are no longer engaged in farming, and their land is used in a unified manner by the collective to build unlicensed properties to earn rental income, which will be distributed among all local residents at the year end (e.g., Sangjia Community, Fuming Sub-district, Jiangdong District), or for rent to floating population (also including few local villagers) to earn land rent income, which will also be

6 distributed among all local residents at the year end (e.g., Xuanpei Village, Dongqiao Town and Dingqiao Village, Jiangshan Town, Yinzhou District). Since agriculture is not a major income source for local residents, LA will have little impact on them, and those working on leased land will be provided with other land for farming. (5) All APs prefer cash compensation. (6) Compensation fees should be paid timely and transparently with minimum intermediate steps. (7) The Project does not affect any ethnic minority.

2.4 Permanent Acquisition of Collective Land and Impact Analysis

2.4.1 Permanent Acquisition of Collective Land Five villages/communities in five townships/sub-districts of Jiangdong, Jiangbei and Yinzhou Districts will be affected by LA. 170.6 mu of collective land will be acquired permanently for the Project, affecting 61 households with 165 persons, including 28.6 mu in Sangjia Community, Fuming Sub-district, Jiangdong District, accounting for 16.76%; 25.1 mu in Xishao Village, Jiangbei District, accounting for 14.71%; 36.9 mu in Dingqiao Village, Jiangshan Town, Yinzhou District, accounting for 21.63%; and 80 mu in Xuanpei Village, Dongqiao Town, Yinzhou District, accounting for 46.89%. The acquired land includes 117.956 mu of cultivated land, accounting for 69.14%; 31 mu of woodland, accounting for 18.17; 18.644 mu of housing land, accounting for 10.93%; and 3 mu of ponds, 1.76%, affecting 67 households with 185 persons in four townships/sub-districts in three districts. See Table 2-3.

2.4.2 Impact Analysis According to statistics, the four villages/communities affected by LA have 4,545 mu of cultivated land before LA, 0.99 mu per capita. 117.956 mu will be acquired for the Project, with a land loss rate of 2.60%. After LA, per capita cultivated area will be 0.963 mu. Since the land used for the Project is small in size and scattered, most APs will lose part of their land only. According to the socioeconomic survey, a comparative analysis has been made on the cultivated areas of the affected villages before and after LA. Among the four villages/communities affected by LA, Sangjia Community and Xishao Village have a land loss rate of over 3%, being 3.18% and 3.67% respectively; and Dingqiao and Xishao Villages have a land loss rate of less than 3%, being 2.97% and 1.74% respectively. Therefore, the overall land loss rate of the affected villages is low.

Table 2-3 Summary of Permanently Acquired Collective Land

Construction land and unused ① Farmland Affected population Township / Village / land No. Subcomponent Total sub-district community Cultivated Housing Woodland Subtotal Ponds Subtotal Households Population land land Fuming Sangjia 1 Jiangdong CTS 28.6 0 28.6 0 0 0 28.6 8 31 Sub-district Community Zhuangqiao Xishao 2 Jiangbei CTS 20.456 0 20.456 4.644 0 4.644 25.1 14 30 Sub-district Village Jiangshan Dingqiao 3 Yinzhou CTS 36.9 0 36.9 0 0 0 36.9 20 66 Town Village Yinzhou Chuyu Dongqiao Xuanpei 4 32 31 63 14 3 17 80 19 38 WTP Town Village Total 117.956 31 148.956 18.644 3 21.644 170.6 61 165

Table 2-4 Analysis of Impacts of Permanent Acquisition of Collective Land

Before acquisition After acquisition Land loss rate Income loss (yuan) Percentage Percentage Land Percentage Township / Village / Average Average Subcomponent Popu- Cultivated ② Cultivated of of loss Annual to per sub-district community HHs AHs APs loss per loss per lation area (mu) area (mu) households population rate loss capita household capita (%) (%) (%) income (%) Fuming Sangjia Jiangdong CTS 780 1478 900 8 31 28.6 1.03% 2.10% 3.18% 22880 2860.00 738.06 3.32 Sub-district Community Zhuangqiao Xishao Jiangbei CTS 326 670 558 14 30 20.456 4.29% 4.48% 3.67% 12273.6 876.69 409.12 2.46 Sub-district Village Jiangshan Dingqiao Yinzhou CTS 499 1192 1243 20 66 36.9 4.01% 5.54% 2.97% 22140 1107.00 335.45 1.88 Town Village Yinzhou Chuyu Dongqiao Xuanpei 516 1257 1844 19 38 32 3.68% 3.02% 1.74% 19200 1010.53 505.26 3.12 WTP Town Village

① Estimated by community officials during the survey ② Since most local residents in the affected villages and communities are no longer engaged in farming, and collective land is used in a unified manner and mainly leased to others to receive rent, LA in the Project actually has no directly affected population. The affected populations and numbers of AHs in this table are estimated based on the acquired land area. 8

In Sangjia Community, Jiangdong District, no crop is grown on the land to be acquired. In 1996, industrial buildings were constructed on cultivated land in Sangjia Community, all in masonry concrete structure, for rent to local residents or floating population for business operations to earn rental income①. The rental rate is about 8 yuan/m2 per month and a total area of 55,300 m2 will be affected, reducing the community’s monthly income by about 442,400 yuan (see Section 2.7.3). No crop is grown the 20.456 mu of cultivated land to be acquired in Xishao Village, Jiangbei District, so the impact of LA on Xishao Village’s income will be zero. In the two affected villages in Yinzhou District (Xuanpei and Dingqiao Villages), land is rented to floating population (also including few local villagers at 600 yuan/mu per annum or lower, and income which will be distributed among all local residents at the year end. Corn and paddy rice are grown on the cultivated land to be acquired in Xuanpei Village, Dongqiao Town, Yinzhou District, sesame and soybean are also grown on some cultivated land, and per capita net income of lessees is about 800 yuan/mu per annum (net of rent); paddy rice and vegetables are grown on the cultivated land to be acquired in Dingqiao Village, Jiangshan Town, Yinzhou District mainly, and the per capita net income of lessees is 800-1,600 yuan/mu per annum (net of rent). See Figures 2-1~2-4. Generally, since agriculture is not a major income source for local residents, the local economy is developed and per capita net income is high, LA will have little impact on them. Non-local lessees will be provided with other land for farming, and their livelihoods will also be affected slightly by LA. Per capita income loss rates② are all less than 5%, ranging from 738.06 yuan or 3.32% of per capita net income (Sangjia Community, Fuming Sub-district) to 335.45 yuan or 1.88% of per capita net income (Dingqiao Village, Jiangshan Town). See Table 2-4.

Figure 2-1 Current Situation for Site Selected for the Jiangdong CTS

① See Section 2.7.3 for the demolition of unlicensed properties in Jiangdong District. ② In Table 2-4, income losses are calculated based on land cultivation, 800 yuan/mu per annum for Jiangdong District (based on the rent of unlicensed properties, as detailed in Section 2.7.3), and 600 yuan/mu per annum for Jiangbei and Yinzhou Districts (based on land rent available).

Figure 2-2 Current Situation for Site Selected for the Jiangbei CTS

Figure 2-3 Current Situation for Site Selected for the Yinzhou CTS

Figure 2-4 Current Situation for Site Selected for the Yinzhou Chuyu WTP

2.5 Permanent Occupation of State-owned Land and Impact Analysis

The Haishu Xujiacao CTS and Dongqianhu CTS in the Project involve the occupation of state-owned land. 26.9 mu of state-owned land will be occupied for the Haishu Xujiacao CTS. This plot was converted from farmland into state-owned construction land under the approval document ZLRD [2000] No.193 in 2000, and there is no building thereon. During LA, NMG organized compensation and resettlement in strict conformity with the approved LA program, and the members of the organization affected by LA have been properly resettled. See Appendix 9. 5.4 mu of land will be acquired for the Dongqianhu CTS. This plot was acquired in 2008 and converted from farmland into state-owned construction land under the approval document ZLA [2009] No.0331 in 2009. During LA, the Dongqianhu Town Government organized compensation and resettlement in strict conformity with the

approved LA program, and the members of the organization affected by LA have been properly resettled. See Appendix 10.

2.6 Temporary Land Occupation

In the Project, temporary land occupation results mainly from the construction of the sewer line, where 42 mu of land will be occupied temporarily. At the construction and operation stages of the Project, the Yinzhou Chuyu WTP will generate a certain amount of wastewater, which will be delivered to the completed Yinxi Wastewater Treatment Plant as planned. This sewer line has a full length of 3,500m and a pipe diameter of 315mm. Temporary land occupation will affect three villages in Dongqiao Town, Yinzhou District, namely Xuanpei, Sanli and Zhangjiadian. The sewer line will be connected to the Yinzhou Wastewater Treatment Plant at Provincial Highway S34. See Table 2-5 and Appendix 7.

Table 2-5 Summary of Temporarily Occupied Land

Location Occupied land area (mu) No. Non-irrigated Irrigated Town Village Subtotal land land 1 Xuanpei 9.8 4.6 14.4 2 Dongqiao Sanli 8.7 0.9 9.6 3 Zhangjiadian 16 2 18 Total 34.5 7.5 42

2.7 Demolition of Rural Houses

2.7.1 Demolition of Rural Residential Houses The demolition of rural residential houses in the Project involves Xishao Village, Zhuangqiao Sub-district, Jiangbei District; Xiashen Village, Hongtang Sub-district, Jiangbei District; and Xuanpei Village, Dongqiao Town, Yinzhou District, with a total demolition of 5,360 m2, affecting 25 households with 60 persons, including 130 m2 in Xiaoshao Village, Zhuangqiao Sub-district (2.43%), 520 m2 in Xiashen Village, Hongtang Sub-district (9.70%), and 4,710 m2 in Xuanpei Village, Dongqiao Town (87.87%). By structure, these houses are in masonry concrete structure and masonry timber structure mainly, and few in earth timber structure, including 4,080 m2 in masonry concrete structure (76.12%), 1,135 m2 in masonry timber structure (21.18%) and 145 m2 in earth timber structure (2.71%). See Table 2-6. Among the households affected by residential house demolition, one household has a housing size of less than 50 m2 (4%), three households 51-100 m2 (12%), two households 101-150 m2 (8%) and 19 households 151 m2 or more (76%). See Table 2-7.

Table 2-6 Summary of Demolished Rural Residential Houses

Affected Also affected by Demolition area (m2) Sub- Township / Village / population LA No. component sub-district community Masonry Masonry Earth Subtotal HHs Population HHs Population concrete timber timber Zhuangqiao Xishao 1 0 130 0 130 1 11 0 0 Jiangbei CTS Sub-district Village 2 Hongtang Xiashen 0 375 145 520 5 11 0 0

Sub-district Village Yinzhou Chuyu Dongqiao Xuanpei 3 4080 630 0 4710 19 38 19 38 WTP Town Village Total 4080 1135 145 5360 25 60 19 38

Table 2-7 Analysis of Impacts of Demolition of Residential Houses

Number of households Township / Village / No. Subcomponent 51-100 101-150 151 m2 sub-district community <50 m2 Subtotal m2 m2 or more Zhuangqiao Xishao 1 0 0 1 0 1 Sub-district Village Jiangbei CTS Hongtang Xiashen 2 1 3 1 0 5 Sub-district Village Yinzhou Chuyu Dongqiao Xuanpei 3 0 0 0 19 19 WTP Town Village Total 1 3 2 19 25

2.7.2 Demolition of Rural Non-residential Properties The Project does not involve the demolition of rural non-residential properties.

2.7.3 Demolition of Rural Unlicensed Properties Unlicensed properties with a total area of 55,300 m2 will be demolished for the Project. These unlicensed properties are in masonry concrete structure and constructed as industrial buildings, about 500 meters away from the Sangjia Community Committee. They are owned by the Sangjia Community collective, Fuming Sub-district, Jiangdong District. Due to its advantaged geographic location, the Sangjia Community collective constructed these properties on its cultivated land to earn rental income without the approval of the land and resources department. Since these properties were constructed without approval, they are unlicensed properties. They are rented to local residents or floating population at 5-10 yuan/m2 per month, and rental is paid on a monthly basis. See Table 2-8.

Table 2-8 Summary of Demolished Rural Unlicensed Properties

Demolition District Sub-district Community Proprietor Structure area (m2) Sangjia Masonry Jiangdong Fuming Sangjia 55300 Community concrete

The demolition of unlicensed properties will also affect the lessees, which have temporary lease contracts with the proprietor, mostly with a term of six months to one year. When a lease contract expires, the proprietor and lessee will agree on if the contract should be renewed. See Table 2-9.

Table 2-9 Summary of Enterprises Affected by Demolition of Rural Unlicensed Properties

Expiry Proprietor Leased Rent Workforce Sub- Legal date of Business No. Enterprise of area per component rep. lease status premises (m2) month Total Females contract Ningbo Aoli Jiangdong Sang Sangjia 1 Machinery 2300 2013.10.31 18400 Regular 80 31 CTS Guochun Community Factory

Cici Plastic & Sang 2 Hardware No.1 3000 2013.3.10 24000 Regular 20 9 Shiguang Factory Ningbo Baohong Xia 3 5000 2013.5.30 40000 Regular 32 10 Auto Repair Minghai Ningbo Meiying 4 Yu Limin 24000 2013.6.30 192000 Regular 120 40 Auto Parts Cici Plastic & Sang 5 Hardware No.2 21000 2013.12.30 168000 Regular 118 45 Shihao Factory Total 55300 / 442400 / 370 135

2.8 Affected Infrastructure and Ground Attachments

The Project will affect eight types of attachments, including power facilities, scattered trees, duck pens and vegetable greenhouses, as shown in Table 2-10.

Table 2-10 Affected Ground Attachments

Subcomponent Attachment type Proprietor Unit Qty. Scattered trees Sangjia Community collective / 6 Jiangdong CTS Telegraph poles Power supply company / 4 Wires Power supply company m 400 Scattered trees Xishao Village collective / 26 Duck pens Pan Baocai in Xishao Village m2 3000 Jiangbei CTS Telegraph poles Power supply company m 6 Wires Power supply company m 600 Greenhouses (cement) Villagers of Dingqiao Village mu 10 Greenhouses Villagers of Dingqiao Village mu 15 Yinzhou CTS (plastic-steel) Simple rooms Villagers of Dingqiao Village m2 60 Scattered trees Villagers of Xuanpei Village / 40 Villagers of Dingqiao Village Toilets m2 76 Yinzhou Chuyu (19 households) WTP Telegraph poles Power supply company / 8 Wires Power supply company m 1000

2.9 Affected Ethnic Minorities

The Project does not affect any ethnic minority.

2.10 Affected Population

2.10.1 Summary The main resettlement impacts of the Project are permanent and temporary land occupation. 170.6 mu of land will be acquired permanently and 42 mu of land occupied temporarily for the Project. Five communities/villages in five towns, three districts of Ningbo Municipality will be affected by resettlement, in which LA and HD involve four communities/villages respectively. 121 households with 683 persons will be affected in total, in which 72 persons, 19 land contracting households with 54 persons and five enterprises with 370 persons will be affected by temporary land occupation, and 67

13 households with 187 persons affected directly by LA and HD. 170.6 mu of collective land will be acquired permanently for the Project, affecting 61 households with 165 persons, and temporary land occupation will affect 42 households with 72 persons, mainly due to the construction of the sewer line. Residential houses with a total area of 5,360 m2 will be demolished for the Project, affecting 25 households with 60 persons, and unlicensed properties with a total area of 55,300 m2 will be demolished, affecting five lessee enterprises, affecting 370 workers. The Project will also affect eight types of infrastructure and ground attachments. See Table 2-11.

Table 2-11 Summary of Affected Population

Municipality Ningbo Total District Jiangdong Jiangbei Yinzhou Fuming Zhuangqiao Hongtang Dongqiao Jiangshan Township / sub-district 5 Sub-district Sub-district Sub-district Town Town Number of villages / 1 1 1 3 1 5 communities HHs 8 14 0 0 20 42 LA only Population 31 30 0 0 66 127 HHs 0 1 5 0 0 6

Permanent land acquisition land Permanent HD only Population 0 11 11 0 0 22 Both LA HHs 0 0 0 19 0 19 and HD Population 0 0 0 38 0 38 HHs 8 15 5 19 20 67 Total Population 31 41 11 38 66 187 Land HHs 0 0 0 8 11 19 lessees Population 0 0 0 23 31 54 Industrial HHs 5 0 0 0 0 5

building lessees Population 370 0 0 0 0 370 HHs 5 0 0 8 11 24 Total Population 370 0 0 23 31 424 Temporary land HHs 0 0 0 30 0 30 occupation Population 0 0 0 72 0 72

2.10.2 Affected Vulnerable Groups For the purpose of the Project, vulnerable groups include the disabled, five-guarantee households①, female-headed households, low-income people② and ethnic minorities. The Project will affect no vulnerable group.

2.10.3 Affected Women

① For elderly, weak, widowed and disabled members who are unable to work and have no means of living, or whose households lack labor, a rural production cooperative would provide production and living assistance, including daily supplies, education for the young and burial for the elderly. ② Per capita net income less than 2,300 yuan/year

In the population affected by the Project, there are 90 women, accounting for 48.13%. According to the survey, the affected women enjoy the same rights as men, including land contracting, education receiving, family planning and election. Most of the female labor respondents think that they have the same autonomy in production and management as men, and may elect to get employed or do small business independently. Women do more housework, child care and farm work, and often elect to work locally. Women are more advantaged in social services, apparel processing and like industries, but disadvantaged in the building and transport industries. In the project area, women work in factories or deal with other services like men do, and LA will almost not affect women’s productive income. Boys and girls have equal opportunities in education, and parents are always willing to support their children’s education. According to the survey, women have the same concerns as those of men: (a) Compensation rates should comply strictly with the state laws and policies; (b) Compensation fees should be disbursed directly to the AHs; and (c) Housing sites should be allocated in advance. Women have the following needs that are different from those of men: (a) Women expect cash compensation; (b) Women want skills training in handicrafts; and (c) Women also expect to participate in village-level management and have the right to sign the compensation agreement. See Appendix 6 (Part A) for a detailed gender analysis.

3. Socioeconomic Profile

3.1 Socioeconomic Profile of the Project Area

3.1.1 Socioeconomic Profile of Ningbo Municipality and Districts Ningbo Municipality governs six districts (Haishu, Jiangdong, Jiangbei, Zhenhai, Beilun and Yinzhou), and two counties (Ninghai and Xiangshan), and manages three county-level cities (Cixi, Yuyao and Fenghua). Ningbo has 78 towns, 11 Xiangs, 63 sub-districts, 617 communities and 2,576 villages in total. According to the Ningbo Statistical Yearbook 2011, at the end of 2010, Ningbo’s population was 5,740,800, including an urban population of 2,233,500, with a population density of 907 persons/km2 (population density has been rising since 2004), a nonagricultural population of 2,052,300 and an agricultural population of 3,688,500, with an urbanization rate of 66%. In 2011, Ningbo’s economy grew rapidly yet steadily, and was second only to Hangzhou Municipality in terms of GDP in Zhejiang Province. In 2011, Ningbo’s regional GDP was 601.048 billion yuan, a year-on-year growth of 10.0% based on comparable prices, in which the added value of primary industries was 25.576 billion yuan, up 4.0%; that of secondary industries 333.537 billion yuan, up 10.0%; and that of tertiary industries 241.935 billion yuan, up 10.7%, with a ratio of 4.2:55.5:40.3. Per capita GDP based on resident population was 77,983 yuan.

Jiangdong District is located in eastern Ningbo, and a key district of urban construction, bordering the Beilun Port on the east, the hi-tech industrial park on the north, and the higher education park on the south, with a land area of 37.66 km2. The district governs 8 sub-districts and 77 communities, with a registered population of 265,700. The Shanghai-Hangzhou-Ningbo Expressway, and the Coast thoroughfare intersect in this district, making it the future administrative service center of Ningbo. In 2011, the district’s regional GDP was 36.64 billion yuan, up 10%, and per capita disposable income of urban residents 34,058 yuan, up 12.9%.

Jiangbei District is the largest central district of Ningbo, located in the northwest of the Ningbo urban area, being the core of the round-the-city tourism circle of Ningbo, abounding with water resources. With a land area of 208 km2, Jiangbei is the largest central urban district of Ningbo, and governs seven sub-districts and one town. At the end of 2011, its registered population was 240,498, including a nonagricultural population of 155,843.

Yinzhou District is located in the east coast of Zhejiang Province, close to Shanghai and Hangzhou, bordering Yuyao City on the west, Fenghua City on the south and the Xiangshan Port on the east. The district has a land area of 1,346 km2, and governs 17 towns, one Xiang, 6 sub-districts, 441 villages and 66 communities. At the end of 2008, the district had a registered population of 796,000, and population density was 592 persons/km2. Machine building, textile, and electric instruments are the three pillar industries of this district.

Table 3-1 Socioeconomic Profile of Ningbo Municipality and Districts (2011)①

Ningbo Jiangdong Jiangbei Yinzhou Indicator Municipality District District District Total population (0,000) 576.40 27.85 24.05 82.21

Population Men (0,000) 287.15 13.1 11.85 40.5 Women (0,000) 286.93 13.5 12.2 41.7 Nonagricultural population (0,000) 205.23 27.85 15.58 28.2

Labor force (0,000) 368.85 0 8.47 54.3 GDP (00m yuan) 6010.48 366.4 225.0 945.4 Output value (00m yuan) 255.76 2.42 56.25 35.93

Output value Primary industries Percent (%) 4.2 0.5 2.5 3.8 Secondary Output value (00m yuan) 3335.37 67.78 87.53 590.88 industries Percent (%) 55.5 18.5 38.9 62.5

Tertiary Output value (00m yuan) 2419.35 297.88 131.85 318.60 industries Percent (%) 40.3 81.3 58.6 33.7 Per capita GDP (yuan) 104485 131562 93555 115696

Income Per capita disposable income of urban 34058 34058 34058 36734 residents (yuan/year) Per capita net income of farmers

16518 / 17224 18631 (yuan/year)

3.1.2 Socioeconomic Profile of the Affected Townships (Sub-districts) Fuming Sub-district, Jiangdong District is located in eastern Ningbo, with a resident population of 23,000 and a cultivated area of 18,000 mu. In 2007, the sub-district’s GDP was 1.212 billion yuan, up 12.28%, and the added value of tertiary industries was 707 million yuan, up 15.79%, accounting for 57.57% of the sub-district’s GDP. In 2007, the sub-district introduced 152 projects, in which 20 have a registered capital of 10 million yuan or more. The Ningbo Science Park and the Jiangdong Semiconductor Technology Park are located in the sub-district. Zhuangqiao Sub-district, Jiangbei District is located north of the Yaojiang River in Jiangbei District, with a land area of 35.15 km2, a resident population of 109,000, including a registered population of 39,000. The sub-district governs 24 administrative villages and 8 communities. The sub-district has over 1,600 industrial enterprises, in which 44 are above designated size. In 2011, the gross industrial output value of enterprises above designated size was 2.961 billion yuan, sales revenue 2.912 billion yuan, industrial profit 194 million yuan, total social fixed asset investment 3.408 billion yuan, gross retail sales of consumer goods 1.478 billion yuan, per capita net income of farmers 13,198 yuan, and general fiscal revenue 1.094 billion yuan. Jiangshan Town, Yinzhou District is located in the south of Yinzhou District, 8km away from the Ningbo urban area and 4km away from the new urban area of Yinzhou District. The town has a land area of 87.76 km2, a resident population 78,000 and a floating population of 62,000. The town governs 55 administrative villages and 5 communities. The town has a long history, and is a traditional major industrial and

① Source: Ningbo Municipal Statistics Bureau, and national economic and social development bulletins 2011 of different districts 17

agricultural town in Yinzhou District, a state-level pilot town for development reform, a provincial-level central town and a top 100 town of China in terms of fiscal revenue, ranking top in Yinzhou District in terms of overall strength. In 2011, Jiangshan Town’s regional GDP was 6.2 billion yuan, fiscal revenue 840 million yuan and per capita net income of farmers 17,501 yuan. The town has a cultivated area of 76,000 mu and is a key commodity grain producing town of China. The town has 1,419 industrial enterprises, specializing in machine parts, automobile parts, electromechanics, wires and cables, and new materials, and a balanced economic structure has been established with the supplementation of hotels, supermarkets and real estate projects. Dongqiao Town, Yinzhou District is located in the southwest of Yinzhou District, with a land area of 31 km2. The town governs 20 administrative villages and one community, and has a resident population 22,000 and a floating population over 10,000. Per capita net income of farmers is 16,942 yuan. This is a watery town boasting convenient traffic, beautiful scenery and abundant products, including watermelon, bamboo shoot and grape. In recent years, textile, automobile parts, machinery and electronics have become the four pillar industries of the town. In 2007, the town’s gross industrial and agricultural output value was 3.94 billion yuan, up 36.3%; and regional GDP 780 million yuan, up 28%. Table 3-2 Per Capita Net Income of Farmers in the Affected Townships (2011)① Average Per capita Per capita Where, Cultivated population net income Township / sub-district HHs Population Percent cultivated females area (mu) per of farmers area (mu) household (yuan) Fuming Sub-district, 12292 27000 13340 49.41% 18000 2.197 0.667 21886 Jiangdong District Zhuangqiao Sub-district, 14507 39000 19266 49.40% 20000 2.688 0.513 13198 Jiangbei District Jiangshan Town, 27886 78000 38780 49.72% 76000 2.797 0.974 17501 Yinzhou District Dongqiao Town, 9240 22000 10974 49.88% 26000 2.381 1.182 16942 Yinzhou District

3.1.3 Socioeconomic Profile of the Affected Villages (Communities) The five affected administrative villages or communities are generally small in size. Xiaoshao Village, Zhuangqiao Sub-district is the smallest and has 326 households with 750 persons, and Sangjia Community, Fuming Sub-district is the largest and has 780 households with 1,478 persons. Family size is generally small, ranging from Sangjia Community, Fuming Sub-district (1.895) to Xiashen Village, Hongtang Sub-district (2.936). The per capita cultivated areas of Sangjia Community, Xishao Village and Xiashen Village are less than 1 mu, and those of Dingqiao and Xuanpei Villages are close to 1.3 mu. The overall per capita net income of farmers is high (all above 16,000 yuan), in which that of Sangjia Community is the highest at 22,246 yuan.

① The numbers in the table are estimated by heads of township governments or sub-district offices. 18

Table 3-3 Socioeconomic Profile of Ningbo Villages (Communities) (2011)①

Average Per capita Per capita Township / Village / Where, Labor Cultivated population net income HHs Population cultivated sub-district community females force area (mu) per of farmers area (mu) household (yuan) Fuming Sangjia 780 1478 729 832 900 1.895 0.609 22246 Sub-district Community Zhuangqiao Xishao 326 750 388 415 400 2.301 0.533 16636 Sub-district Village Hongtang Xiashen 512 1503 736 840 1287 2.936 0.856 16272 Sub-district Village Jiangshan Dingqiao 700 1502 730 901 1890 2.146 1.258 17880 Town Village Dongqiao Xuanpei 672 1388 685 840 1800 2.065 1.297 16200 Town Village

3.2 Socioeconomic Profile of the Affected Population

In order to learn the basic information of the APs, the survey team conducted a sampling survey on the AHs. The Project will affect 67 households in five villages/communities in five townships/sub-districts in total, in which 29 households were sampled, with a sampling rate of 31.34%. See Appendix 2.

3.2.1 Ethnic and Gender Analysis The whole affected population is Han people, and no ethnic minority is involved. Among the 29 sample households have 87 persons and 50 laborers in total, including 17 agricultural laborers, accounting for 34% of labor force, with an average population of 3 per household. The sample population includes 41 women, accounting for 47.12%; women deal with commodity marketing, housekeeping services, crop cultivation and housework mainly.

3.2.2 Age Structure Among the 29 sample households, 6 persons are aged 0-6 years, accounting for 6.8%, 13 aged 7-17 years, accounting for 14.6%, 33 aged 18-40 years, accounting for 37.4%, 21 aged 41-60 years, accounting for 23.8%, and 15 aged 61 years or more, accounting for 17.4%.

3.2.3 Educational Level Among the 29 sample households, 6 are preschool children, accounting for 6.9%; 5 are illiterate, accounting for 5.75%; 27 have received primary school education, accounting for 31.03%; 29 have received junior high school education, accounting for 33.33%; 8 have received senior high school education, accounting for 9.2%; and 8 have received higher education, accounting for 9.2%.

3.2.4 Housing Size Among the 29 sample households, houses are in masonry concrete structure mainly, and total housing size is 2,814 m2, 145 m2 per household and 48.33 m2 per capita on average.

① The data in this stable is provided by village or community heads. 19

3.2.5 Land Resources Among the 29 sample households, average cultivated area is 3.1 mu per household and 1.03 mu per capita. The cultivated land is mostly irrigated land, and used to grow vegetables mainly. Annual net income per mu is 980 yuan.

3.2.6 Household Properties Among the 29 sample households, an average household has two color TV sets, one refrigerator, three fans, 1.5 washing machines, one air-conditioner, two fixed telephones/cell phones, 1.5 electric carts and 0.5 car, indicating an above-average living standard.

3.2.7 Household Income and Expenditure Among the 29 sample households, per capita annual income is 18,320 yuan, in which wage income is 9,000 yuan, accounting for 49.1%; income from household operations 4,220 yuan, accounting for 23.0% (in which income from primary industries is 1,300 yuan, accounting for 7.1%); property income 2,000 yuan, accounting for 10.9%; and transfer income 3,100 yuan, accounting for 16.9%. Their main income sources are employment and distribution from economic cooperatives, which coincides with local industry mix. Women usually both do housework and work at nearby enterprises. Men usually work locally or outside. Per capita gross expenditure is 9,710 yuan, in which productive expenditure is 2,100 yuan, accounting for 21.6%; expenditure in productive fixed assets 1,200 yuan, accounting for 12.4%; tax expenditure 700 yuan, accounting for 7.2%; nonproductive expenditure 4,000 yuan, accounting for 41.2%; property expenditure 1,100 yuan, accounting for 11.4%; and transfer expenditure 600 yuan, accounting for 6.2%.

Table 3-4 Analysis of Household Income and Expenditure

Item Per capita (yuan) Percent (%) Wage income 9000 49.1% Income from household operations 4220 23.0% Where: income from primary industries 1300 7.1% Annual Income from secondary industries 6210 33.9% household Income from tertiary industries 10992 60.0% income Property income 2000 10.9% Transfer income 2100 21.6% Total 18320 100.0% Productive Expenditure on household operations 837.5 28.0% expenditure Expenditure on productive fixed assets 1200 12.4 Net income 16282.5 / Tax expenditure 700 7.2% Annual Nonproductive expenditure 4000 41.2% household Property expenditure 1100 11.4% expenditure Transfer expenditure 600 6.2% Total 9710 100.0% Savings 8610 /

3.3 Summary

The survey team has found that: 1) The per capita income of the affected villages is slightly higher than the averages of the respective districts and townships/ sub-districts; 2) The land of the affected villages/communities are operated collectively in a unified manner, and residents no longer farm but will participate in income distribution at the year end; 3) Agricultural income accounts for a low proportion to per capita income in the affected villages, while employment income accounts for a high proportion, so agricultural income losses arising from land acquisition are relatively minor and will not affect regular income level; 4) The affected townships/sub-districts have low per capita cultivated areas, where secondary and tertiary industries are developed, thereby providing considerable nonagricultural job opportunities to land-expropriated farmers (LEFs); 5) The per capita cultivated areas of the affected villages/communities in Jiangdong and Jiangbei Districts are less than those in Yinzhou District; and 6) Most APs think the Project is good to the country and the people, and are willing to accept LA as long as compensation is reasonable and timely.

4. Policy Framework

4.1 Laws, Regulations and Policies Applicable to Resettlement The resettlement policies of the Project have been developed in accordance with the laws and regulations of the PRC, and the Bank’s applicable policy.

1) Bank policies  Operational Policy OP4.12 on Involuntary Resettlement and appendixes (effective from January 1, 2002)  Bank Procedure BP4.12 on Involuntary Resettlement and appendixes (effective from January 1, 2002)

2) Laws, regulations and policies of the PRC  Regulations on the Implementation of the Land Administration Law of the PRC (Decree No.256 of the State Council) (December 27, 1998)  Land Administration Law of the PRC (effective from January 1, 1999, amended on August 28, 2004)  Notice of the General Office of the State Council on Forwarding the Guidelines of the Ministry of Labor and Social Security on Doing a Good Job in the Employment Training and Social Security of Land-expropriated Farmers (SCO [2006] No.29) (April 10, 2006)  Notice of the Ministry of Land and Resources on Doing a Better Job in Land Acquisition Management (June 2010)  Notice on Further Improving the Fiscal Discounting Policy for Small-grant Secured Loans, and Promoting Women’s Business Startup and Employment (MOF [2009] No.72)

3) Provincial and local policies  Measures of Zhejiang Province for the Implementation of the Land Administration Law of the PRC (effective from July 5, 2000)  Notice of the Zhejiang Provincial Labor and Social Security Department on Issuing the Measures of Zhejiang Province for the Administration of Mass-run Occupational Training Schools (Interim) (ZPLSSB [2009] No.21)  Notice of the Zhejiang Provincial Government on Doing a Good Job in the Collection and Administration of Farmland Occupation Tax (ZPG [2008] No.38)  Notice of the Zhejiang Provincial Government on Adjusting Collection Rates of Farmland Reclamation Fees (ZPG [2008] No.39)  Regulations of Ningbo Municipality for the Demolition of Houses on Acquired Collective Land (Announcement No.41 of the Standing Committee of the Ningbo Municipal People’s Congress) (effective from October 1, 2006)  Rules for the Implementation of the Regulations of Ningbo Municipality for the Demolition of Houses on Acquired Collective Land (Decree No.141 of NMG) (effective from December 1, 2006)  Rules for the Implementation of Ningbo Municipality for the “Sunshine Demolition” of Houses on Acquired Collective Land (NLRB [2012] No.80)

(effective from June 11, 2012)  Interim Measures of Ningbo Municipality for Endowment Insurance for Land-expropriated Farmers (NMG [2002] No.125) (effective from January 1, 2003)  Notice of the Ningbo Municipal on Issuing the Measures for the Price Appraisal of Demolished Houses on Collective Land (NMG [2006] No.120) (effective from December 18, 2006)  Notice on the Determination and Disclosure of Compensation Rates for the Demolition of Houses on Acquired Collective Land (NPC [2007] No.117) (effective from October 1, 2007)

4.2 Objectives and Framework of the Bank’s Policy on Resettlement The objectives of resettlement include: a) Involuntary resettlement should be avoided where feasible, or minimized, exploring all viable alternative project designs; b) Where it is not feasible to avoid resettlement, resettlement activities should be conceived and executed as sustainable development programs; c) providing sufficient investment resources to enable the persons displaced by the project to share in project benefits. Displaced persons should be meaningfully consulted and should have opportunities to participate in planning and implementing resettlement programs. Displaced persons should be assisted in their efforts to improve their livelihoods and standards of living or at least to restore them, in real terms, to pre-displacement levels or to levels prevailing prior to the beginning of project implementation, whichever is higher. The resettlement policy framework of the Project covers the following: a) The resettlement plan or resettlement policy framework includes measures to ensure that the displaced persons are: (i) informed about their options and rights pertaining to resettlement; (ii) consulted on, offered choices among, and provided with technically and economically feasible resettlement alternatives; and (iii) provided prompt and effective compensation at full replacement cost for losses of assets attributable directly to the project; b) If the impacts include physical relocation, the resettlement plan or resettlement policy framework includes measures to ensure that the displaced persons are: (iv) provided assistance (such as moving allowances) during relocation; and (v) provided with residential housing, or housing sites, or, as required, agricultural sites for which a combination of productive potential, locational advantages, and other factors is at least equivalent to the advantages of the old site; (c) Where necessary to achieve the objectives of the policy, the resettlement plan or resettlement policy framework also include measures to ensure that displaced persons are: (vi) offered support after displacement, for a transition period, based on a reasonable estimate of the time likely to be needed to restore their livelihood and standards of living; and (vii) provided with development assistance in addition to compensation measures described in paragraph 6(a) (iii), such as land preparation, credit facilities, training, or job opportunities.

4.3 Key Provisions of PRC Laws, Regulations and Policies The Land Administration Law of the PRC is the main policy basis of the Project. The Ministry of Land and Resources and the Zhejiang Provincial Government have

promulgated policies and regulations on this basis. The Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28) promulgated in October 2004 defines the principles and rates of compensation and resettlement for land acquisition, and land acquisition procedures and monitoring system. These legal documents constitute the legal basis for resettlement in the Project together with the Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (MLR [2004] No.238). See Appendix 5 for key provisions. NMG and the district governments have also developed relevant measures and provisions in accordance with the Real Right Law of the PRC, the Land Administration Law of the PRC and the implementation regulations thereof, and the Measures of Zhejiang Province for the Implementation of the Land Administration Law of the PRC. See Table 4-1.

Table 4-1 Abstract of Key Provisions of Measures for Acquisition of Collective Land of Ningbo Municipality and Districts

Item Key provisions Index Compensation fees for LA include land compensation fees, resettlement Article 3 of the Interim Provisions subsidies, and compensation fees for ground attachments and young crops. of Ningbo Municipality for Compensation Compensation for Land fees for LA Acquisition in the Sanjiang Area (NMG [2003] No.97) Sanjiang area①: The location-based composite land price for cultivated land Article 2 of the Notice on and construction land is 96,500 yuan/mu, including land compensation fees of Adjusting Location-based 43,600 yuan/mu and a resettlement subsidy of 52,900 yuan/mu, and that for Composite Land Prices for Land unused land is 48,250 yuan/mu, including land compensation fees of 21,800 Acquisition in the Sanjiang Area yuan/mu and a resettlement subsidy of 26,450 yuan/mu. Location-based (NMG [2009] No.24) composite land prices for other farmland and garden land shall be calculated by reference to that for cultivated land, and that for woodland by reference to that for unused land. Jiangbei District: Tier-2 areas refer to other areas than Tier-1 areas. The Article 2 of the Notice of the Compensation location-based composite land price for cultivated land is 55,000 yuan/mu. Jiangbei District Government on rates for LA The rates for land compensation fees for farmland other than cultivated land Adjusting Location-based (except woodland) and construction land shall be calculated by reference to Composite Land Prices for Land that for cultivated land, that for woodland 90% of that for cultivated land, and Acquisition in Jiangbei District that for unused land 50% of that for cultivated land. (JDG [2009] No.9) The location-based composite land prices for cultivated land and garden land Article 2 of the Notice on the are 90,000 yuan/mu for Tier-1 areas, 75,000 yuan/mu for Tier-2 areas, 60,000 Republication of Location-based yuan/mu for Tier-3 areas and 55,000 yuan/mu for Tier-4 areas. In case of Composite Land Prices for Land acquisition of other farmland or unused land other than cultivated land and Acquisition (YDG [2012] No.36) garden land, the price shall usually be not more than half of that for cultivated land. That for construction land shall be based on that for cultivated land. A program for house demolition on collective land shall include the range of Article 9 of the Rules for the demolition, subjects of and eligibility for compensation and resettlement, Implementation of the LA programs cases not eligible for compensation and resettlement, modes and rates of Regulations of Ningbo for collective compensation and resettlement, budget and availability of compensation and Municipality for the Demolition of land resettlement funds, resettlement housing and site arrangements, period of Houses on Acquired Collective relocation, etc. Land (October 1, 2006) Resettlement In case of property swap and transitional housing is provided by the displaced Article 31 of the Regulations of modes and person itself, the displacer shall pay a transition subsidy from the month of Ningbo Municipality for the transition relocation to 4 months after the delivery of the resettlement housing. If the Demolition of Houses on

① Sanjiang area of Ningbo Municipality, namely 10 administrative villages in Haishu District, Jiangdong District and Yongjiang Sub-district, Jiangbei District. 24

Item Key provisions Index subsidy displacer fails to provide resettlement housing beyond the transition period Acquired Collective Land (NMG specified in the compensation and resettlement agreement, it shall pay a [2006] No.141) transition subsidy at twice the specified rate from the month of being overdue. In case of cash compensation or house reconstruction and transitional housing is provided by the displaced person itself, the displacer shall pay a transition subsidy for 6 months from the month in which the compensation and resettlement agreement for HD is entered into. Article 9 The size of resettlement housing for a demolished residential house Articles 9 and 12 of the shall be the building area specified in the lawful certificate of the right to use Regulations of Yinzhou District collective construction land or the certificate of title to such house provided by on the Demolition of Houses on the AH. Acquired Collective Land (YDG Article 12 In case of cash compensation or property swap, the size of [2007] No.54) Size of resettlement housing shall be determined pursuant to Article 23 of the Articles 9, 11 and 12 of the Some resettlement Regulations, and Articles 9 and 10 of these Provisions, but not more than 250 Provisions of Yinzhou District on housing m2 of building area per household; for any rural household that is eligible for the Demolition of Houses on housing site application but has not obtained a housing site or the building Acquired Collective Land (April area of its existing residential house is less than the building area available for 17, 2010) application, the size of resettlement housing shall be determined at 30 m2 of building area per capita. Men 60 years or above or women 55 years or above may receive benefits Paragraph 1 of Article 2 of the from the month following the month of participation and contribution on a Interim Measures of Ningbo monthly basis. There are three contribution and benefit levels, to be chosen by Municipality for Endowment Endowment the insured independently, but will not be changed after the insurance Insurance for Land-expropriated insurance formalities have been settled. The benefit level must correspond to the Farmers (NMG [2002] No.125) benefits contribution level. For example, in 2006, men below 60 years or women below 55 years may choose from Level 1 (49,510 yuan), Level 2 (35,570 yuan) and Level 3 (21,530 yuan), and the corresponding endowment insurance benefits are 380 yuan/month, 330 yuan/month and 280 yuan/month respectively.

4.4 Main Differences between Bank Policies and PRC Laws Compensation and resettlement of vulnerable groups  Difference: Bank policies require that special compensation is granted to all vulnerable groups, especially seriously affected households faced with impoverishment. Chinese provisions do not require social analysis, and compensation is based only on the  Solution: Special funds are available to assist the vulnerable groups, who will be identified during the DMS. Compensation and resettlement of vulnerable groups  Difference: the Bank policies require that special compensation is granted to all vulnerable groups, especially seriously affected households faced with impoverishment. Chinese provisions do not require social analysis, and compensation is based only on the amount of loss.  Solution: Special funds are available to assist the vulnerable groups, who will be identified during the DMS. All measures have been specified in the RAP. Consultation and disclosure  Difference: Bank policies require APs are fully informed and consulted as soon as possible. Although there are measures for announcement of land acquisition in China, the period of announcement is usually short, so that APs are often unable to participate effectively.  Solution: Consultation has begun at the early stage (before and during the technical assistance). The PMO agrees to disclose the RAP and provide the RIB to APs as required by the Bank. Legal title  Difference: Bank policies require all demolished houses, whether lawful or

not, should be compensated for. According to Chinese laws, no compensation should be provided for the acquisition of illegally owned land and houses.  Solution: For an Bank financed project, all APs, whether lawful or not (before the cut-off date), whether having legal title or not, will be provided with compensation or assistance. Resettlement monitoring, evaluation and reporting  Difference: Bank requires that internal and external resettlement monitoring be conducted. However, there is no such requirement in Chinese laws, expect for reservoir projects.  Solution: Internal and external resettlement monitoring mechanisms have been established for all Bank financed projects, and this has been included in the RAP.

4.5 Principles and Applicable Policies for Compensation The principles for compensation and entitlement of the Project have been developed in accordance with the regulations and policies of the PRC and the Bank, with the aim of ensuring that APs obtain sufficient compensation and assistance measures so that their production and livelihoods are at least restored to pre-project levels. See Table 4-2.

Table 4-2 Principles for Resettlement

Principles 1 Involuntary resettlement should be avoided where feasible. The APs are granted compensation and rights that can at least maintain or even improve their 2 livelihoods in the absence of the project. The APs are given compensation and assistance in resettlement whether legal title is 3 available or not. If the land available to everyone is insufficient to maintain his/her livelihood, replacement in 4 cash or in kind and other income-generating activities are provided for the lost land. The APs fully understand their entitlements, the method and standard of compensation, the 5 livelihood and income restoration plan, and the project schedule, and participate in the implementation of the Resettlement Plan. The executing agency and an independent agency / third party should monitor the 6 compensation, relocation and resettlement operations. Vulnerable groups are provided special assistance or treatment so that they lead a better life, 7 and all APs should have an opportunity to benefit from the project. At least two members of each AH receive skills training, including at least one woman. The RAP is consistent with the master plans of the affected city (district/county) and 8 township. 9 The resettlement expenses are sufficient to cover all affected aspects.

Policies applicable to the Project: (1) Compensation policy for acquisition of collective land: The collective land acquired for the Project will be compensated for at location-based composite land price for LA mainly. All Land compensation fees and resettlement subsidies will be

paid to village/community collectives for investment in tertiary industries, and the return thereon will be distributed among residents. Young crop compensation fees will be paid directly to land contractors. (2) Compensation policy for demolition of rural residential houses: The rural residential houses demolished for the Project will be compensated for at replacement cost and subject to property swap. The compensation rates for houses are much higher than the prevailing rates of Ningbo. Except house compensation, a moving subsidy and a transition subsidy will be paid to each AH. (3) Compensation policy for demolition of rural unlicensed properties: According to the prevailing compensation policies for HD of Ningbo, unlicensed properties shall not be compensated for. However, during project implementation, cash compensation will be granted at 1,200 yuan/m2 without property swap. Each lessee will be granted a moving subsidy, and compensation fees for production or business suspension, where the moving subsidy will be paid at a time at 5 yuan/m2, and compensation fees for production or business suspension will be paid for 6 months at 5 yuan/m2 per month. (4) Compensation policy for ground attachments and infrastructure: All ground attachments and infrastructure affected by the Project will be compensated for at replacement cost. (5) Public participation and grievance redress policy: In order to promote public participation and address grievances effectively to ensure successful construction and resettlement, a transparent and effective grievance redress mechanism has been established for the Project. All grievances and appeals will be accepted for free. 4.6 Cut-off Date of Compensation The cut-off date for the eligibility for compensation is March 30, 2013, which will be disclosed in the project area. Any newly claimed land, newly built house or settlement in the project area by the APs after this date will not be entitled to compensation or subsidization. Any building constructed or tree planted purely for extra compensation will not be counted in. Resettlement Information Booklet (RIB) should be distributed in all affected villages or communities.

4.7 Entitlement Matrix The entitlement matrix has been established in accordance with the applicable policies in this chapter, as shown in Table 4-3.

Table 4-3 Entitlement Matrix

Demolition 5360 m2 25 1) House compensation fees: at Each AH will choose a of rural households replacement cost for different structural resettlement mode itself, residential with 60 types and quality levels (see Table 5-4) and housing information houses persons 2) The APs will receive moving and will be provided by transition subsidies (see Table 5-4) township governments / 3) Property swap sub-district offices. Demolition 55,300 m2 Sangjia 1) The proprietor will receive cash The township of Community compensation at 1,200 yuan/m2. governments / unlicensed 2) The lessees will be notified 6 months in sub-district offices will properties advance and receive an equipment provide lease and on collective moving subsidy. employment information. land 3) The employees of the lessees will be notified of relocation 3 months in advance. 4) The lessees will receive lease information and enjoy priority. 5) The employees of the lessees will have priority in being employed by reopened enterprises. Vulnerable / 90 persons 1) They will have priority in being The women’s association groups employed for unskilled jobs, of which 30% will provide acceptable will be first made available to women. education to women; 2) They will have priority in receiving free women will receive equal skills training. 1,200 men-times will be pay for equal work like trained, including not less than 600 men do; no child labor men-times for women (50%). should be employed. 3) They will obtain relevant information and participate in consultation during resettlement. 4) The house compensation agreement will be singed by the couple. Ground 8 types, Proprietors Affected special facilities will be attachments including reconstructed by the owner according to telegraph the original size, standard and function poles, trees (see Table 5-5). Grievances / All APs Free; all costs so reasonably incurred will and appeals be disbursed from the contingencies

5. Compensation Rates

5.1 Compensation Rates for Acquisition of Collective Land

The district governments of Ningbo Municipality have fixed rational compensation rates in accordance with the Land Administration Law of the PRC, the Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition, and the Measures of Zhejiang Province for the Implementation of the Land Administration Law of the PRC. However, since Ningbo’s economy is developing rapidly and different districts vary greatly, compensation rates also very greatly from district to district. Compensation fees for LA include location-based composite land price for LA (land compensation fees and resettlement subsidies), and compensation fees for ground attachments and young crops. The land occupied for the Project is cultivated land mainly. According to the compensation policies of Ningbo, young crops shall be compensated for at different rates. The cultivated land acquired for the Project is used to grow paddy rice and soybean mainly, for which the compensation rate of Ningbo is 800-1,000 yuan/mu; in the Project, young crops will be compensated for at 1,000 yuan/mu. The Jiangdong CTS will occupy cultivated land, and its compensation rate is based mainly on Article 2 of the Notice on Adjusting Location-based Composite Land Prices for Land Acquisition in the Sanjiang Area (NMG [2009] No.24), as shown in Table 5-1.

Table 5-1 Compensation Rates for LA of Jiangdong District

Land Resettlement Location-based Young crop Land type compensation subsidy composite land compensation rate (yuan/mu) (yuan/mu) price (yuan/mu) rate (yuan/mu) Cultivated land, construction land, other 43600 52900 96500 1000 farmland, garden land

The Jiangbei CTS (including sorting center) will occupy cultivated land (including 0.3 mu of housing land), and its compensation rate is based mainly on Article 2 of the Notice of the Jiangbei District Government on Adjusting Location-based Composite Land Prices for Land Acquisition in Jiangbei District (JDG [2009] No.9), as shown in Table 5-2.

Table 5-2 Compensation Rates for LA of Jiangbei District

Location-based composite Young crop Range land price for acquisition of compensation cultivated land fees (yuan/mu) Other areas than Tier-1 areas 55,000 yuan/mu 1000

According to the Notice on the Republication of Location-based Composite Land Prices for Land Acquisition (YDG [2012] No.36), Xuanpei Village, Dongqiao Town and

Dingqiao Village, Jiangshan Town, Yinzhou District affected by LA belong to Tier-3 areas, and the compensation rate is 65,000 yuan/mu. See Table 5-3.

Table 5-3 Location-based Composite Land Prices for LA in Yinzhou District

Compensation rate for Young crop range cultivated land and compensation fees garden land (yuan/mu) Tier-3 areas 65000 1000

5.2 Compensation Rates for the Demolition of Rural Houses

NMG have developed the Regulations of Ningbo Municipality for the Demolition of Houses on Acquired Collective Land (Announcement No.41 of the Standing Committee of the Ningbo Municipal People’s Congress), the Rules for the Implementation of the Regulations of Ningbo Municipality for the Demolition of Houses on Acquired Collective Land (Decree No.141 of NMG), the Notice on the Determination and Disclosure of Compensation Rates for the Demolition of Houses on Acquired Collective Land (NPM [2007] No.117), etc., and the district governments have developed detailed implementation rules in accordance with the Land Administration Law of the PRC and the Regulations on the Implementation of the Land Administration Law of the PRC. For example, Some Provisions of Yinzhou District on the Demolition of Houses on Acquired Collective Land (April 17, 2010) have regulated and directed the acquisition of collective land and compensation therefor in Ningbo effectively.

5.2.1 Compensation Rates for the Demolition of Rural Residential Houses The compensation rates for residential house demolition of the Project are based on full replacement cost and the practical situation of the project area, as shown in Table 5-4. Except house compensation, a moving subsidy and a transition subsidy will be paid to each AH. An AH may choose either cash compensation or property swap; in case of cash compensation, the displacer provides cash compensation for the AH to purchase resettlement housing itself; in case of property swap, the displacer provides housing in exchange for the demolished house to resettle the AH. Residential house demolition involves Xishao Village, Zhuangqiao Sub-district and Xuanpei Village, Dongqiao Town, Jiangbei District, and Dingqiao Village, Jiangshan Town, Yinzhou District mainly. According to the compensation policies and resettlement practices of Ningbo, the AHs may select property swap or cash compensation at their own discretion①. In case of cash compensation, the compensation rates for houses of different structural types are much higher than the prevailing rates of Ningbo, as shown in Table 5-4. Based on this compensation rate, an AH may purchase a house of the same size and structure nearby.

Table 5-4 Compensation Rates for Rural Residential Houses

Type of Structural type Compensation rate Compensation rate in the Project

① In case of property swap, the specific compensation rates are set out in Section 6.4.1. 30

impact under prevailing Jiangbei District Yinzhou District policies of Ningbo (yuan/m2) (yuan/m2) (yuan/m2) Grade 1 950 Masonry Grade 2 880 5500 6000 House concrete Grade 3 720 compensation Masonry timber 550 5000 5500 Earth timber 450 4000 5000 700 yuan 700 yuan Moving subsidy 700 yuan /household /household /household Other Building area of Building area of Building area of compensation Transition subsidy demolished house demolished house demolished house *10 yuan/m2 *10 yuan/m2 *10 yuan/m2

5.2.2 Compensation Rates for the Demolition of Rural Unlicensed Properties According to the prevailing compensation policies for HD of Ningbo, unlicensed properties shall not be compensated for. However, in order to protect the APs’ interests, through repeated negotiations among the Ningbo PMO, land and resources bureau, construction bureau, and proprietor (Sangjia Community collective, Fuming Sub-district, Jiangdong District), unlicensed properties will be compensated for at 1,200 yuan/m2 without reconstruction. All unlicensed properties were constructed by the Sangjia Community collective to increase collective income, all being industrial buildings. Each lessee will be granted a moving subsidy, and compensation fees for production or business suspension, where the moving subsidy will be paid at a time at 5 yuan/m2, and compensation fees for production or business suspension will be paid for 6 months at 5 yuan/m2 per month.

5.3 Compensation Rates for Infrastructure and Attachments

According to the Notice on the Determination and Disclosure of Compensation Rates for the Demolition of Houses on Acquired Collective Land (NPM [2007] No.117), all ground attachments and infrastructure affected by the Project will be compensated for at replacement cost. See Table 5-5.

Table 5-5 Compensation Rates for Attachments of Residential Houses

Subcomponent Attachment type Proprietor Unit Qty. Scattered trees Sangjia Community collective / 6 Jiangdong CTS Telegraph poles Power supply company / 4 Wires Power supply company m 400 Scattered trees Xishao Village collective / 26 Duck pens Pan Baocai in Xishao Village m2 3000 Jiangbei CTS Telegraph poles Power supply company m 6 Wires Power supply company m 600 Greenhouses (cement) Villagers of Dingqiao Village mu 10 Yinzhou CTS Greenhouses (plastic-steel) Villagers of Dingqiao Village mu 15 Simple rooms Villagers of Dingqiao Village m2 60 Yinzhou Chuyu Scattered trees Villagers of Xuanpei Village / 40 WTP Toilets Villagers of Dingqiao Village m2 76

(19 households) Telegraph poles Power supply company / 8 Wires Power supply company m 1000

5.4 Compensation Rates for Temporary Land Occupation

In the Project, temporary land occupation results mainly from the construction of the sewer line, where 42 mu of land will be occupied temporarily. According to the state and provincial regulations on temporary land occupation, the temporarily occupied land will be compensated for based on the actual period of occupation and at average annual output value. The temporarily occupied land will be restored immediately after construction. Through consultation with the affected village, the temporarily occupied collective land will be compensated for at 1,200 yuan/mu. According to the construction design, the occupation period will be one month.

5.5 Rates of Other Costs

See Table 5-6.

Table 5-6 Rates of Taxes on Resettlement

No. Item Rate Basis Receiver 50 yuan/m2; 50% higher for basic Notice of the Zhejiang farmland Provincial Government on Ningbo Farmland Doing a Good Job in the Municipal 1 occupation tax Collection and Administration Finance of Farmland Occupation Tax Department (ZPG [2008] No.38) Haishu, Jiangdong, Jiangbei, Zhenhai, Notice of the Zhejiang Zhejiang Beilun and Yinzhou District, Ningbo Provincial Government on Provincial Farmland 2 Municipality: 36 yuan/m2 Adjusting Collection Rates of Land and reclamation costs Farmland Reclamation Fees Resources (ZPG [2008] No.39) Department Haishu, Jiangdong and Jiangbei Districts: Notice on Adjusting Zhejiang Fees for using 80 yuan/m2; Location-based Composite Provincial 3 additional Beilun and Zhenhai Districts: 48 yuan/m2; Land Prices for Land Finance construction land Yinzhou District 42 yuan/m2 Acquisition in the Sanjiang Department Area (NMG [2009] No.24) 1. In case of unified LA, 50 mu or more of ZPH [1996] No.431, NPH cultivated land: 3,600 yuan/mu, less than [1997] No.249, Notice on the 50 mu: 4800 yuan/mu; 100 mu or more Cancellation or Suspended non-cultivated land: 2,700 yuan/mu, less Collection of the Third Batch LA management than 100 mu: 3600 yuan/mu of Administrative Fees, and 4 / costs 2. In case of non-unified LA, 25 mu or the Reduction of Some Fee more of cultivated land: 1,200 yuan/mu, Rates (ZPG [2009] No.48) less than 25 mu: 2,400 yuan/mu; 40 mu or more non-cultivated land: 900 yuan/mu, less than 40 mu: 1,800 yuan/mu Survey and design 5 1% of total LA costs / / costs Implementation 6 2% of total LA costs / / management costs

No. Item Rate Basis Receiver 7 Training costs 1% of total LA costs / / 8 M&E costs 1.5% of total LA costs / / 9 Contingencies 10% of total LA costs / /

5.6 Supporting Measures for Women

In addition to the above compensation policies for LA and HD, women are also entitled to the following preferential policies: 1) Vulnerable groups will have priority in being employed for unskilled jobs, of which 30% will be first made available to women. 2) Vulnerable groups will have priority in receiving free skills training. 1,200 men-times will be trained, including not less than 600 men-times for women (50%). 3) Affected women will obtain relevant information and participate in consultation during resettlement. 4) A special FGD for women will be held to introduce resettlement policies and improve their awareness. 5) The house compensation agreement will be singed by the couple. See Appendix 6 for a detailed gender analysis.

6. Resettlement and Income Restoration

6.1 Resettlement Objectives

The objective of resettlement of the Project is to develop an action plan for restoration and restoration for those affected by the Project so that they benefit from the Project, and their living standard is improved or at least restored to the pre-project level.

6.2 Principles for Resettlement Restoration Programs

Some principles for resettlement and rehabilitation have been developed according to the above objectives: 1. Production and income restoration (1) The willingness of affected persons should be respected, and their existing production and living traditions maintained; (2) Resettlement rehabilitation programs should be tailored to impacts of LA and HD, and based on compensation rates for LA and HD; (3) Resettlement rehabilitation programs should be combined with group construction, resources development, economic development and environmental protection programs so as to ensure the sustainable development of the affected village groups and persons; and (4) The standard of living of vulnerable groups adversely affected by the Project should be improved. 2. House reconstruction (1) AHs may select the mode of cash compensation or properly swap at their discretion; (2) Compensation fees for house demolition must be paid to displaced households before relocation; (3) In case of property swap, resettlement sites should be selected in consultation with the APs, and a transition subsidy should be paid during the transition period; and (4) During house reconstruction and relocation, the village committees, township governments and PMO will provide assistance to households in difficulty.

6.3 Income Restoration Programs for Villages/Communities Affected by LA

6.3.1 Summary The main impacts of the Project are permanent LA, residential house demolition and the demolition of rural unlicensed properties. 117.956 mu of collective cultivated land will be acquired for the Project, affecting 61 households with 165 persons, including 28.6 mu in Sangjia Community, Fuming Sub-district, Jiangdong District, accounting for 24.25%; Xishao Village, Jiangbei District 20.456 mu, accounting for 17.34%; Dingqiao Village, Jiangshan Town, Yinzhou District 36.9 mu, accounting for 31.28%; Xuanpei Village, Dongqiao Town,

Yinzhou District 32 mu, accounting for 27.13%. The residential houses demolished for the Project include one house (130 m2) in Xiaoshao Village, Zhuangqiao Sub-district, Jiangbei District, 5 houses with a total area of 520 m2 in Xiashen Village, Hongtang Sub-district, 19 houses with a total area of 4,710 m2 in Xuanpei Village, Dongqiao Town, Yinzhou District, and unlicensed properties with a total area of 55,300 m2 in Sangjia Community, Fuming Sub-district, Jiangdong District. All residents of Sangjia Community and Xishao Village affected by the Project are of nonagricultural status in household registration. Although villagers of Xishao, Xuanpei and Dingqiao Villages are of agricultural status in household registration, and their per capita net income exceeds 16,000 yuan, the income loss rate of Sangjia Community is the highest at only 3.32%, followed by Xuanpei Village (3.12%), while the income loss rates of the other two affected villages are less than 3%. Therefore, LA will affect the APs’ income slightly in general. See Table 6-1.

Table 6-1 Summary of Income Losses of the Affected Villages/Communities

Land loss rate Income loss (yuan) Township / Village / Average Average Percent to Subcomponent Affected Affected Cultivated Annual sub-district community loss per loss per per capita HHs population land (mu) loss household capita income (%) Fuming Sangjia Jiangdong CTS 8 31 28.6 22880 2860.00 738.06 3.32 Sub-district Community Zhuangqiao Xishao Jiangbei CTS 14 30 20.456 12273.6 876.69 409.12 2.46 Sub-district Village Jiangshan Dingqiao Yinzhou CTS 20 66 36.9 22140 1107.00 335.45 1.88 Town Village Yinzhou Chuyu Dongqiao Xuanpei 19 38 32 19200 1010.53 505.26 3.12 WTP Town Village

During the survey, residents worried about negative impacts of the Project on the living environment and were once unwilling to accept it. Through information disclosure and public participation, residents have accepted the Project gradually. Since the affected villages vary in development level and degree of impact, resettlement and income restoration programs should be developed based on the degree of impact, practical characteristics and expectations of each village. According to the survey, the households affected by LA expect the following modes of resettlement: a) cash compensation, chosen by 61 households, accounting for 100%; b) participating in endowment insurance for LEFs, chosen by 49 households, accounting for 80.33%; c) turning food crops (paddy rice, rape, etc.) into cash crops (vegetables, etc.) of higher value through crop restructuring, chosen by 6 households, accounting for 9.84%; d) attending training courses organized by labor and social security authorities to get employed or deal with tertiary operations, chosen by 55 households, accounting for 90.16%; e) being resettled on reserved collective land, chosen by 61 households, accounting for 100%. See Table 6-2.

Table 6-2 Expected Resettlement Modes of Households Affected by LA

Village / AHs Expected resettlement mode (households)

community Endowment Resettlement Cash Crop Skills insurance ① on reserved compensation restructuring training for LEFs collective land Sangjia 8 8 6 0 6 8 Community Xishao Village 14 14 10 0 13 14 Dingqiao Village 20 20 17 14 17 20 Xuanpei Village 19 19 16 3 19 19 Total 61 61 49 17 55 61 Percent 100.00% 80.33% 27.87% 90.16% 100.00%

In sum, the income restoration measures for the APs include: (1) cash compensation; (2) endowment insurance for land-expropriated farmers (LEFs); (3) cultivating cash crops of higher economic value through crop restructuring; (4) skills training, where APs are trained to deal with tertiary industries, get employed or start up a business; and (5) resettlement on reserved collective land.

6.3.2 Cash Compensation The land to be acquired in the affected villages/communities is collectively owned. For the acquired land, all affected village/community committees require cash compensation, and will use compensation fees for collective investment, and the return thereon will be distributed among residents at the year end. Young crop compensation fees will be paid directly to land contractors. In terms of per capita net income, the affected villages/communities are medium in their townships/sub-districts. Compensation fees for LA will be used for investment to increase collective land. In Sangjia Community, Fuming Sub-district, Jiangdong District and Xishao Village, Zhuangqiao Sub-district, Jiangbei District, reserved collective land will be converted into construction land to construct office buildings or hotels to earn higher income; in Xuanpei Village, Dongqiao Town, Yinzhou District, compensation fees will be invested in catering, accommodation and office facilities in conjunction with the construction of the Venous Industrial Park; in Dingqiao Village, Jiangshan Town, Yinzhou District, compensation fees will be used to construct 50 plastic-steel greenhouses with a total area of 200 mu for rent to local residents or floating population at 1,100 yuan/mu to earn rental income that is higher by 500 yuan/mu than before. Cash compensation will ensure the production and income restoration of the affected villages/communities. See Table 6-3.

Table 6-3 Summary of Compensation for the Affected Villages/Communities

Amount (0,000 yuan) Jiangdong Jiangbei CTS Yinzhou Yinzhou No. Item CTS (including sorting) CTS Chuyu WTP Total Sangjia Xishao Xiashen Dingqiao Xuanpei Community Village Village Village Village Acquisition of rural 1 278.85 140.0956 3.50625 243.54 412.7 1078.6919 collective land

① The main purpose is to provide skills training to the APs, covering agricultural skills, agricultural services and farmers’ business startup. Trained APs may start up businesses, work in factories or take up administrative jobs in village-run enterprises.

Compensation fees 2 for demolition of rural 6829.55 55.73 248.97 0 2824.09 9958.34 residential houses Temporary land 3 0 0 0 0 5.04 5.04 occupation Infrastructure and 4 1.8 8.8 0 28.08 10.768 49.448 ground attachments Total 7110.2 204.6256 252.4763 271.62 3252.598 11091.52

6.3.3 Endowment Insurance for LEFs According to the Interim Measures of Ningbo Municipality for Endowment Insurance for Land-expropriated Farmers(NMG [2002] No.125) (see Appendix 3), the following two types of persons are entitled to endowment insurance: 1) former residents in villages converted into communities; and 2) persons all or most of whose land is acquired with the approval of the land and resources bureau at or above the county level. The list of participants of will be submitted by each village or community committee after preliminary review, and approved by the local labor and social security authority after review by the township government or sub-district office. The endowment insurance fund for LEFs shall be shared by the individual, collective and government. Individual and collective contributions will be used to contribute to endowment insurance premiums, and government contributions will be used to pay pensions when premiums contributed are insufficient. LEFs shall get insured and contribute endowment insurance premiums at three levels (Level 1, 2 and 3) voluntarily. The contribution level and the corresponding benefit level will be chosen by the insured at the beginning but will not be changed thereafter. The contribution levels are as follows: men below 60 years or women below 55 years may choose from Level 1 (49,510 yuan), Level 2 (35,570 yuan) and Level 3 (21,530 yuan). See Appendix 4 for the contribution levels available for men 60 years or above or women 55 years or above. In Sangjia Community, Fuming Sub-district, all residents participated in endowment insurance during the village-to-community conversion in 2004. It is estimated that 109 persons in the other three villages affected by LA are entitled to endowment insurance, including 31 in Xiaoshao Village, Zhuangqiao Sub-district, 36 in Xuanpei Village, Dongqiao Town and 42 in Dingqiao Village, Jiangshan Town. The list of participants will be provided by each village or community committee. Insured men when attaining 60 years or women when attaining 55 years will receive endowment insurance benefits on a monthly basis at Levels 1, 2 and 3, corresponding to 380 yuan, 230 yuan and 280 yuan respectively. See Appendix 4.

6.3.4 Employment Training Program Training for the APs include agricultural skills training, rural service training and farmer business startup training (including nonagricultural skills training), which will be implemented by the Ningbo Municipal Labor and Social Security Bureau under a training program, which will be adjusted timely based on employment demand. All persons affected by LA in the project area may participate in free skills and employment training offered by the Ningbo Municipal Labor and Social Security Bureau. It is planned to train 1,200 men-times in total. Nonagricultural skills training

will be provided to the APs in Jiangdong and Jiangbei Districts mainly, and both agricultural and nonagricultural skills training to those in Yinzhou District. See Tables 6-4 and 6-5.

Table 6-4 Agricultural Training Programs in the Project Area

Funding Township / Men-times Agencies City District Time Trainees Scope (0,000 Source sub-district per annum responsible yuan)

Plant protector, Ningbo Municipal Government Dongqiao

Ningbo AHs 200 rural economic Labor and Social 2 budget Town 2013.9 Yinzhou administrator Security Bureau, 2014.3 District Vegetable township / sub-district

Jiangshan 2014.9 AHs 200 cultivation, fruit labor and social 2 Town processing security offices

Table 6-5 Nonagricultural Training Programs in the Project Area

Funding Township / Men-times Agencies City District Time Trainees Scope (0,000 Source sub-district per annum responsible yuan) Electrician, driving, Jiangdong Fuming Ningbo

AHs 200 farmers’ cooperative 1 budget Government District Sub-district Municipal management, sewing Labor and Jiangbei Zhuangqiao Electric welding, Ningbo AHs 200 Social Security 1 District Sub-district 2013.9 baker, sewing Bureau, 2014.3 Farmers’ cooperative Dongqiao township /

2014.9 AHs 200 management, 1 Town sub-district Yinzhou breakfast, sewing labor and District Farmers’ cooperative Jiangshan social security AHs 200 management, 1 Town offices breakfast, sewing

6.3.5 Resettlement on Reserved Collective Land According to the Notice of the Zhejiang Provincial Government on Further Developing and Strengthening the Village-level Collective Economy (ZPG [2001] No.20), the Notice of the Zhejiang Provincial Government on Strengthening and improving Land Acquisition (ZPG [2002] No.27), the Guidelines of the Zhejiang Provincial Land and Resources Department on Further Regulating Land Reservation for Resettlement at the Village Level (ZLRD [2006] No.23), and the Opinions of the Ningbo Municipal Government on Improving the Management of Land Reserved for Village Development in the Urban Area (NMGO [2002] No.268), some APs in the affected villages/communities will be resettled on reserved land during resettlement. The area of village-level reserved land will be 5%-10% of the area of land acquired for the Project. Reserved land may be used to develop advantaged industries to create stable income sources, and provide production and livelihood security to members of village collective economic organizations. Reserved land may be operated collectively, contracted, leased or developed jointly. The affected villages will obtain reserved land at 10% of the acquired land area. The development plans for reserved land of the affected villages are as follows: 1. Sangjia Community, Fuming Sub-district, Jiangdong District According to the development plan of Jiangdong District, Sangjia Community has

38 been included in urban village transformation. The community has 900 mu of cultivated land and will obtain 90 mu of reserved land to develop the collective economy. The party branch secretary and head of the community will convert the reserved land into state-owned construction land to develop the collective economy, which means that the income restoration program of the community will be an integral part of its urban village transformation. The community committee plans to construct industrial buildings on 40 mu of reserved land and commercial residential or commercial buildings on the remaining 50 mu. Such buildings may be used as hotels or leased to enterprises and companies as offices. At a rental rate of 100 yuan/m2 per month, the community will earn 476,700 yuan per month and 5.72 million yuan per annum, an increase of 34,300 yuan and 411,600 yuan from the pre-LA levels respectively. In addition, these buildings will also generate many job opportunities for local residents.

Table 6-6 Income Levels of Sangjia Community before and after LA

Before LA After LA Difference Rental Rental Rental Rental Rental Rental income (0,000 income (0,000 income (0,000 income (0,000 income (0,000 income (0,000 yuan/ month) yuan/ year) yuan/ month) yuan/ year) yuan/ month) yuan/ year) 44.24 530.88 47.67 572.04 3.43 41.16

2. Xishao Village, Zhuangqiao Sub-district, Jiangbei District Similar to Sangjia Community, since Zhuangqiao Sub-district has an advantaged geographic location, the Xishao Village Committee plans to earn relatively stable, high income from the 2.51 mu of reserved land (10% of the acquired land area of 25.1 mu) by constructing commercial buildings, which will bring additional income of 2.4975 million yuan per annum based on a rental rate of 50 yuan/m2 per month.

Table 6-7 Income Levels of Xishao Village before and after LA

Before LA After LA Difference Rental Rental Rental Rental Income (0,000 Income (0,000 income (0,000 income (0,000 income (0,000 income (0,000 yuan/ month) yuan/ year) yuan/ month) yuan/ year) yuan/ month) yuan/ year) / 1.23 20.915 250.98 / 249.75

3. Xuanpei Village, Dongqiao Town, Yinzhou District Xuanpei Village’s income restoration program will be combined with the construction of the Venous Industrial Park. The venous industry in Yinzhou District utilizes advanced technology to convert solid waste arising from production and consumption into reusable resources and products in order to protect the environment, including the two processes of converting solid waste into renewable resources and processing renewable resources into products. After the completion of the Venous Industrial Park, at least 20 enterprises and 2,000 employees will enter, bringing business opportunities for Xuanpei Village. The village committee plans to invest in catering, accommodation and office facilities to generate additional collective income. 80 mu of land of this village will be acquired for the Project and 8 mu of reserved land will be obtained, on which a three-star restaurant and a fast food shop will be

39 constructed to generate net income of 60,000 yuan/month. These facilities may be operated by the village collective or leased. In case of full lease, monthly rental income will be 21,000 yuan.

Table 6-8 Income Levels of Xuanpei Village before and after LA

4. Dingqiao Village, Jiangshan Town, Yinzhou District Dingqiao Village, Jiangshan Town has 1,890 mu of cultivated land, 1.258 mu per capita. 36.9 mu of land will be acquired for the Project, with a land loss rate of 1.95%. All this land is leased to local residents or floating population for cultivation at 600 yuan/mu per annum. LA will result in a rental income loss of 22,140 yuan per annum. In Dingqiao Village, compensation fees will be used to construct 50 plastic-steel greenhouses with a total area of 200 mu for rent to local residents or floating population at 1,100 yuan/mu to earn rental income that is higher by 500 yuan/mu than before. This not only avoids the risk of excessively high one-time investment but also makes full use of compensation fees and increases collective rental income. It is estimated that additional income will be 138,400 yuan per annum.

Table 6-9 Income Levels of Dingqiao Village before and after LA

6.4 Restoration Programs for the Demolition of Rural Houses

6.4.1 Restoration Programs for the Demolition of Rural Residential Houses The demolition of rural residential houses for the Project involves Xishao Village, Zhuangqiao Sub-district, Jiangbei District; Xiashen Village, Hongtang Sub-district, Jiangbei District; and Xuanpei Village, Dongqiao Town, Yinzhou District, with a total demolition area of 5,360 m2, affecting 25 households with 60 persons. Generally, the AHs may choose either property swap or cash compensation freely. In case of cash compensation, the compensation rates higher than those specified in the prevailing policies of Ningbo will be available, and an AH may purchase a house of the same size and structure nearby. (see Section 5.2.1 for compensation rates). In case of property swap, the program is as follows: 1. Restoration Programs for the Demolition of Rural Houses in Jiangbei District In Jiangbei District, the demolition of rural residential houses for the Project involves one household in Xiaoshao Village, Zhuangqiao Sub-district, and five households in Hongtang Sub-district. For the five households in Hongtang Sub-district, though the demolished houses are their residential houses, each household has two

40 or more houses, and the demolished houses are their old houses and leased to floating population at 5 yuan/m2 per month. The following resettlement program has been developed through consultation among the owner, land and resources bureau, Jiangbei District Government, Zhuangqiao and Hongtang Sub-district Offices, and the AHs, and by reference to the Regulations of Ningbo Municipality for the Demolition of Houses on Acquired Collective Land, and the Rules for the Implementation of the Regulations of Ningbo Municipality for the Demolition of Houses on Acquired Collective Land (Decree No.141 of NMG). (1) Expected modes of resettlement According to Article 23 of the Regulations of Ningbo Municipality for the Demolition of Houses on Acquired Collective Land, compensation and resettlement for residential houses may be subject to either property swap or cash compensation. AHs that meet certain conditions may also be subject to house reconstruction. An AH has the right to choose a resettlement mode. Among the six AHs, three AHs have chosen cash compensation because they have three or more houses, and the other three AHs have chosen property swap. (2) Resettlement site and housing sizes The displaced households in the two sub-districts of Jiangbei District will be resettled by the Jiangbei District Government together with the sub-district offices. The resettlement community is locatedat 1 Baoqing Road, and enjoys convenient traffic, with a total building area of 130,000 m2 and 1,717 apartments in total, including 216 of 50 m2, 395 of 60 m2, 289 of 70 m2, 274 of 80 m2, 151 of 90 m2, 211 of 100 m2, 113 of 110 m2 and 160 of 120 m2. (3) Determination of resettlement housing size and settlement of price difference According to Article 23 of the Regulations of Ningbo Municipality for the Demolition of Houses on Acquired Collective Land, the size of resettlement housing for a demolished residential house shall be the building area specified in the lawful certificate of the right to use collective construction land or the certificate of title to such house provided by the AH. According to practices in Ningbo, the size of resettlement housing is usually not more than 250 m2 of building area per household; for any rural household that is eligible for housing site application but has not obtained a housing site or the building area of its existing residential house is less than the building area available for application, the size of resettlement housing shall be determined at 30 m2 of building area per capita (resettlement threshold for short). In case of property swap, the following provisions will apply: a) Any price difference will be settled at basic cost for resettlement housing or replacement cost for the demolished house. b) The building area of the demolished house in excess of the size of resettlement housing will be compensated for at replacement cost plus not more than 300%; for any AH to which the resettlement threshold applies, the building area of the demolished house will be calculated based on the resettlement threshold. c) The part of the building area of the resettlement housing less than the size of resettlement housing will be settled at the average price of commercial housing of the

41 same class in the same area less basic cost upon publication of the HD announcement. d) The part of the building area of the resettlement housing in excess of the size of resettlement housing will be settled at the average price of commercial housing of the same class in the same area upon handover. (4) Handover of resettlement housing The resettlement community at 1 Baoqing Road, Jiangbei District is under construction and will be available to the AHs in February 2014.

Figure 6-1 Resettlement Community at 1 Baoqing Road, Jiangbei District under Construction

(5) Other compensation In whichever resettlement mode, the proprietor of a house will receive a one-time moving subsidy of 700 yuan/household and a transition subsidy for six months at 10 yuan/m2 per month. If a household affected by residential house demolition chooses property swap or house reconstruction and transition is necessary, the transition period and mode should be specified in the compensation agreement for HD, and a transition house or subsidy will be provided by the displacer. The transition period specified in the agreement should not exceed two years. The AH has the right to choose the transition mode freely. 2. Restoration Programs for the Demolition of Rural Houses in Yinzhou District In Yinzhou District, the demolition of rural residential houses for the Project involves 19 households in Xuanpei Village, Dongqiao Town. Currently, the houses of the 19 households are occupied by elderly family members mainly, while young members have purchased housing in the urban area of Ningbo or Dongqiao Town. The following resettlement program has been developed through consultation among the owner, land and resources bureau, Yinzhou District Government, Dongqiao Town Government and the AHs, and by reference to the Regulations of Ningbo Municipality for the Demolition of Houses on Acquired Collective Land, and the Rules for the Implementation of the Regulations of Ningbo Municipality for the Demolition of Houses on Acquired Collective Land (Decree No.141 of NMG). (1) Expected modes of resettlement

Among the 19 households affected by HD, five have chosen cash compensation and 14 chosen property swap. (2) Resettlement site and housing sizes A resettlement community will be planned for Xuanpei Village in a unified manner by the Yinzhou District Government, and located 2km south of Dongqiao Town. In this community, 920 apartments will be constructed and available in four sizes70 m2, 80 m2, 100 m2 and 120 m2. The three supplies and one leveling will be provided by the Dongqiao Town Government. The resettlement site is very convenient. (3) Determination of resettlement housing size and settlement of price difference Article 8 of the Some Provisions of Yinzhou District on the Demolition of Houses on Acquired Collective Land states, the size of resettlement housing for a demolished residential house shall be the building area specified in the lawful certificate of the right to use collective construction land or the certificate of title to such house provided by the AH. Any excess size shall be settled in the same way as in Jiangbei District pursuant to the Regulations of Ningbo Municipality for the Demolition of Houses on Acquired Collective Land. (4) Handover of resettlement housing The resettlement community is being planned, and is expected to break ground in June 2013 and be available to the AHs in June 2014. (5) Other compensation The same rates as those of Jiangbei District will apply to other compensation.

6.4.2 Restoration Program for the Demolition of Rural Unlicensed Properties As described in Section 5.4.2, for the unlicensed properties to be demolished, cash compensation will be paid to the Sangjia Community collective, Fuming Sub-district, Jiangdong District at 1,200 yuan/m2. The Sangjia Community collective may construct new buildings on its reserved land for rent. The proprietor and affected lessees will be notified six months in advance and resettled as follows: (1) If the lease contract has expired before HD, the proprietor will not renew the contract, and the displacer will assist the lessee to find another property in Jiangdong District or other parts of Ningbo; if the lease contract has not expired before HD, the displacer will refund the rental for the remaining term of the contract, and the displacer will assist the lessee to find another property. (2) Equipment losses and transport costs arising from relocation will be compensated for by the displacer. (3) The employees of the lessees will have priority in being employed by reopened enterprises. (4) The displacer will provide employment information and training for free.

6.5 Restoration Program for Temporary Land Occupation

Strict measures will be taken to protect surface soil during construction to avoid irrecoverable impacts. During excavation, surface soil (recommended thickness 30-50cm) will be gathered and piled separately, and water loss and soil erosion

43 prevention measures taken. After construction, subsurface soil will be backfilled first, then surface soil laid evenly on the surface, and the site leveled to mitigate the impact on farmland quality. Land that hardens temporarily during construction will be plowed immediately after construction to restore its looseness. Since the compensation for temporary land occupation is greater than actual losses, the APs will be affected slightly by temporary land occupation.

6.6 Restoration Program for Infrastructure and Attachments

The affected infrastructure and ground attachments will be compensated for by the project owner, and then restored by their respective proprietors. Restoration measures for demolished facilities must be planned in advance, and suited to local conditions so as to be safe, efficient, timely and accurate, with minimum adverse impact on nearby residents. Affected special facilities will be demolished according to the construction drawings without affecting project construction and with minimum amount of relocation. Affected pipelines will be rebuilt before demolition (or relocated) without affecting regular lives of residents along such pipelines (including those not to be relocated).

6.7 Restoration Program for Protection of Women’s Rights and Interests

At the RAP preparation stage, women in the project area took an active part in the impact survey, and were consulted about ideas on income restoration programs. Women support the Project, and think the Project will promote MSW recycling, avoid the waste of resources, reduce the incidence of diseases, protect people’s health and reduce medical expenses. In addition, they expect cash compensation, job opportunities from the Project, and training crop and fruit tree cultivation, sewing skills, etc. During project implementation, at least 30% of women will obtain unskilled jobs. In addition, women will receive equal pay for equal work like men do. However, employment of child labor is prohibited. Priority will be given to female labor in terms of skills training so as to ensure that their economic status and income. 1,200 men-times will be trained, in which female laborers are not less than 600 men-times (50%). Women will receive relevant information during resettlement, and are able to participate in resettlement consultation. The compensation agreement must be signed by the couple. A special FGD for women will be held to introduce resettlement policies and improve their awareness.

7. Organizational Structure for Resettlement

7.1 Organizational Setup

7.1.1 Organizational Setup To ensure the successful implementation of the Project, NMG and the owner have established necessary agencies to in order to plan, coordinate and monitor resettlement activities. The agencies responsible for LA, HD and resettlement in the Project include: [1] Project Leading Group [2] Ningbo PMO [3] Project owner [4] Ningbo Municipal Land and Resources Bureau [5] District land and resources bureaus [6] Township/sub-district resettlement offices [7] Village/community committees [8] External M&E agency 7.1.2 Composition and Responsibilities A. Project Leading Group The Project Leading Group has been established at NMG, composed of leaders from NMG, the municipal development and reform commission, finance bureau, land and resources bureau, construction bureau and other departments concerned. It is responsible for the overall deployment of the Project and solving major issues. B. Ningbo PMO The Ningbo PMO is composed of officials from the municipal development and reform commission, finance bureau, and land and resources bureau. Its main responsibilities include: (1) Responsible for the overall organization, management, coordination, supervision and guidance of the Project; (2) Contact with the provincial and municipal departments concerned; (3) Reporting to the Project Leading Group regularly or irregularly. C. Project owner The main responsibilities of the project owner for LA, HD and resettlement include: (1) Entrusting the design agency to define the project area, conduct DMS and save such data; (2) Raising and disbursing resettlement costs; (3) Developing a resettlement schedule; (4) Directing, coordinating and supervising resettlement activities and their progress; (5) Assisting in internal monitoring and preparing reports; (6) Assisting in external monitoring D. Ningbo Municipal Land and Resources Bureau (1) Responsible generally for LA and HD coordination among districts; (2) Applying for the license for planning of land use and the license for land used for construction E. District land and resources bureaus (1) Developing resettlement policies in coordination with authorities concerned; (2) Responsible for all-around affairs of LA F. Township/sub-district resettlement offices The task office of a township/sub-district is headed by the leader responsible, and composed of key officials of the land and resources office, urban construction office and affected villages. Its main responsibilities include: (1) Participating in the survey of the project, and assisting in the preparation of the RAP; (2) Implementing, inspecting, monitoring and recording all resettlement activities within the township/sub-district; (3) Responsible for the disbursement and management of land compensation fees; (4) Coordinating and handling conflicts and issues arising from its work; (5) Reporting LA, HD and resettlement information to the municipal land and resources

45 bureau/PMO G. Village/community committees The resettlement working team of a village or community committee is composed of its key officials. Its main responsibilities are: (1) Participating in the socioeconomic survey and DMS of the Project; (2) Organizing public consultation, and communicating the policies on LA and HD; (3) Providing assistance to households with difficulties; (4) Selecting resettlement sites and allocating housing land to displaced households; (5) Organizing the implementation of agricultural and nonagricultural resettlement activities; (6) Responsible for fund disbursement and management; (7) Reporting the APs’ opinions and suggestions to the competent authorities; (8) Reporting the progress of resettlement H. External M&E agency The Ningbo PMO will employ a qualified M&E agency as the external resettlement M&E agency. Its main responsibilities are: (1) Observing all aspects of resettlement planning and implementation as an independent M&E agency, monitoring and evaluating the resettlement results and the social adaptability of the displaced persons, and submitting resettlement M&E reports to the Ningbo PMO and the Bank; and (2) Providing technical advice to the Ningbo PMO in data collection and processing. 7.1.3 Staffing In order to ensure the successful implementation of the resettlement work, all resettlement agencies of the Project have been provided with full-time staff, and a smooth channel of communication has been established. The Ningbo PMO has a workforce of 17, in which five persons are responsible resettlement. The resettlement staff has strong organizing and coordinating capabilities, and rich experience in resettlement, and is competent for the resettlement work. See Table 7-1. Table 7-1 Resettlement Agencies and Equipment PC Camera Vehicle Office No. Agency / / / (m2) 1 Project Leading Group 6 2 1 55 2 Ningbo PMO 5 1 1 100 Ningbo City Appearance and Environmental 3 3 2 2 125 Sanitation Office (NESO) Ningbo Municipal Land and Resources 4 4 1 1 60 Bureau 5 District land and resources bureaus 12 3 3 200 6 Township/sub-district resettlement offices 5 1 4 80

7.1.4 Organizational Chart

宁波市人民政府世行贷款项目领导小组

宁波市人民政府世行贷款项目工作移民安置外部监测小组办公室评估机构

宁波市城建局世行贷款项宁波市国土资源局目工作小组（环卫处）

宁波市各区国土资源局

乡镇或街道工作小组

村委会或社区居委会

受征地拆迁影响家庭户

Figure 7-1 Resettlement Organizational Chart

7.2 Coordination among Agencies

During LA, HD and resettlement, all resettlement agencies will enter into appointment agreements to define their scope of responsibilities: (1) The project owner enters into the LA, HD and resettlement agreement with the Ningbo PMO; (2) The Ningbo PMO enters into the independent resettlement M&E agreement with the external M&E agency; (3) The Ningbo PMO enters into LA, HD and resettlement agreements with the township/sub-district resettlement offices; and (4) The township/sub-district resettlement offices enters into compensation agreements for HD with the AHs.

8. Public Participation and Grievance Redress

8.1 Public Participation

According to the policies and regulations of ADB, the PRC, Zhejiang Province and Ningbo Municipality on resettlement, it is very necessary to conduct public participation at the preparation and implementation stages in order to protect the lawful rights and interests of the APs, reduce grievances and disputes, and realize the resettlement objectives properly by developing sound policies and implementation rules on resettlement, preparing an effective RP, and organizing implementation properly.

8.1.1 Public Participation at the Preparation Stage

Since May 2012, NMG, the district governments and Ningbo PMO have conducted a series of socioeconomic survey and public consultation activities under the direction of technical assistance experts. Extensive consultation was also conducted during the DMS. See Table 8-1 and Appendix 5.

Table 8-1 Public Participation Activities at the Preparation Stage

Organized Time Location Participants Key points Key findings by NESO, Affected Affected township Identification of DMS results 2012.7- survey townships governments, project sites 2012.10 team and villages villages and Aps DMS NESO, Affected Affected township Survey on Learning expectations 2012.7- survey townships governments, expected modes of Aps 2012.10 team and villages villages and Aps of resettlement Development of Increasing rates of NESO, Affected Affected township 2012.7- compensation & compensation for Aps survey townships governments, 2012.10 resettlement on the basis of team and villages villages and Aps policies existing policies Consultation on Developing village/ NESO, Affected Affected township 2012.7- resettlement community survey townships governments, 2012.10 programs resettlement team and villages villages and Aps programs preliminarily Affected Government Disclosure of the NESO 2012.11 townships website RAP and villages

8.1.2 Public Participation at the Implementation Stage With the progress of project preparation and implementation, the design agency, Ningbo PMO and township resettlement offices will conduct further public participation. See Table 8-2.

Table 8-2Public Participation Plan

Purpose Mode Time Agencies Participants Topics After Ningbo PMO, Distribution to RAP or RIB Bank township All Aps RAP or RIB Aps review resettlement offices

Purpose Mode Time Agencies Participants Topics Disclosure of LA area, Village bulletin Ningbo PMO, LA Jun. compensation rates board, village township All Aps announcement 2013 and resettlement meeting resettlement offices modes, etc. Announcement of Village bulletin Ningbo PMO, compensation Jun. Compensation fees board, village township All Aps and resettlement 2013 and mode of payment meeting resettlement offices programs for LA Discussing the final Determination of Village Jul. – Ningbo PMO, income restoration income meeting Oct. township All Aps program and the restoration (many times) 2013 resettlement offices program for use of programs compensation fees

8.2 Grievances and Appeals

Since public participation is encouraged during the preparation and implementation of the RP, no substantial dispute will arise. However, unforeseeable circumstances may arise during this process. In order to address issues effectively, and ensure the successful implementation of project construction and land acquisition, a transparent and effective grievance redress mechanism has been established. The basic grievance redress system is as follows: Stage 1: If any right of an AP is infringed on in respect of LA or resettlement, he/she may report to the village or community committee, and either the AP or the committee may solve the appeal in consultation with the township government within two weeks. Stage 2: If the grievant is dissatisfied with the reply of Stage 1, he/she may file an appeal with district land and resources bureau within one month of receipt of the above reply, which shall make a disposition within two weeks. Stage 3: If the grievant is still dissatisfied with the disposition of Stage 2, he/she may file an appeal with the Ningbo Municipal Land and Resources Bureau within one month of receipt of the above disposition, which shall give a reply within four weeks. Stage 4: If the grievant is still dissatisfied with the disposition of Stage 3, he/she may file an action in a civil court in accordance with the Civil Procedure Law of the PRC. All agencies will accept grievances and appeals from the Aps for free, and costs so reasonably incurred will be disbursed from the contingencies. At the whole construction stage, the above procedure will remain effective so that the Aps can use it to solve relevant issues. The above appeal channel will be disclosed to the Aps via the RIB and mass media. The Aps may file an appeal about any aspect of resettlement, including compensation rates, etc. The above appeal channel will be notified to the Aps at a meeting or otherwise, so that the Aps are fully aware of their right of appeal. Mass media will be utilized for publicity, and opinions and advice about resettlement will be compiled into messages for study and disposition by the resettlement agencies. All agencies will accept grievances and appeals from the Aps for free, and costs so reasonably incurred will be disbursed from contingency costs.

Table 8-3 Agencies and Staff Accepting Grievances and Appeals from the Aps

Accepting agency Contact Tel 12336 Office of the Ningbo Municipal Land and Han Qi 0574-83881152 Resources Bureau Land Acquisition Administration Office of the Jiangbei Mao Hongjie 0574-87388188 District Land and Resources Bureau Land Acquisition Administration Office of the Tan Guohong 0574-87297444 Jiangdong District Land and Resources Bureau Land Acquisition Administration Office of the Yinzhou Director Sun 0574-28855158 District Land and Resources Bureau

9. Budget and Funding Sources

9.1 Resettlement Budget

In the general budget, direct resettlement costs include compensation fees for permanent LA, compensation fees for the demolition of urban and rural residential houses, compensation fees for affected ground attachments, management costs, training costs, taxes, contingencies, etc. All costs incurred during LA and resettlement will be included in the general budget of the Project. Based on prices in December 2011, the total resettlement costs of the Project are 140 million yuan, including 85,390,800 yuan for the Jiangdong CTS (60.66%), 7,616,900 yuan for the Jiangbei CTS (5.41%), 7,353,600 yuan for the Yinzhou CTS (5.22%), and 40,413,400 yuan for the Yinzhou Chuyu WTP (28.71%). The general resettlement budget includes compensation fees for permanent acquisition of collective land of 10,786,900 yuan (7.66% of general budget), compensation fees for temporary land occupation of 50,400 yuan (0.04% of general budget), compensation fees for demolition of residential houses and unlicensed properties of 99,583,400 yuan (70.74% of general budget), compensation fees for demolition of infrastructure and ground attachments of 494,500 yuan (0.35% of general budget), and taxes and management costs of 29,859,600 yuan (21.21% of general budget). See Table 9-1 for the general resettlement budget, Chapter 5 for the basis of the budget, and Appendix 8 for the detailed budget.

Table 9-1Resettlement Budget Sheet

Amount (0,000 yuan) No. Item Total Percent (%) 1 Acquisition of rural collective land 1078.692 7.66% Cultivated land (including irrigated and non-irrigated 1.1 848.1436 6.02% land)) 1.1.1 Land compensation fees and resettlement subsidies 836.348 5.94% 1.1.2 Young crop compensation fees 11.7956 0.08% 1.2 Woodland 100.75 0.72% 1.3 Housing land 120.04825 0.85% 1.4 Ponds 9.75 0.07% Compensation fees for demolition of rural 2 9958.34 70.74% residential houses Compensation fees for demolition of rural residential 2.1 3128.79 22.23% houses 2.1.1 Masonry concrete 2448 17.39% 2.1.2 Masonry timber 589 4.18% 2.1.3 Earth timber 58 0.41% 2.1.4 Moving subsidy 1.75 0.01% 2.1.5 Transition subsidy 32.04 0.23% Compensation fees for demolition of rural unlicensed 2.2 6829.55 48.51% properties Compensation fees for demolition of rural unlicensed 2.2.1 6636 47.14% properties Moving subsidy for enterprises affected by demolition 2.2.2 27.65 0.20% of rural unlicensed properties Compensation fees for production or business 2.2.2 165.9 1.18% suspension of enterprises affected by demolition of

rural unlicensed properties 3 Temporary land occupation 5.04 0.04% 4 Infrastructure and ground attachments 49.448 0.35% Subtotal of Items 1-4 11091.5199 78.79% 5 Survey and design costs 110.9152 0.79% 6 External M&E costs 166.3728 1.18% 7 Implementation management costs 221.8304 1.58% 8 Training costs 110.9152 0.79% 9 Contingencies 1109.1520 7.88% 10 Taxes on LA 1266.7772 9.00% 10.1 Farmland occupation tax 393.1867 2.79% 10.2 Fees for using additional construction land 548.0320 3.89% 10.3 Farmland reclamation costs 283.0944 2.01% 10.4 LA management costs 42.4642 0.30% Subtotal of Items 5-10 2985.9628 21.21% Total 14077.4827 100.00% Percent (%) 100.00% /

9.2 Annual Investment Plan

Before or during project construction, the investment plan will be implemented in stages in order not to affect the production and livelihoods of the AHs, as shown in Table 9-2.

Table 9-2Resettlement Investment Plan

Year 2013 2014 2015 Subtotal Investment (0,000 yuan) 7038.74 5630.992 1407.748 14077.48 Percent (%) 50 40 10 100

9.3 Disbursement and Management of Resettlement Funds According to the project implementation plan, resettlement funds are from domestic bank loans, and fiscal appropriation by NMG. All resettlement costs of the Project will be included in the general budget of the Project, and disbursed in strict accordance with the applicable state regulations and the policies in this RAP. During project implementation, compensation fees will be paid by the project owner to the district land and resources bureaus or the Ningbo Municipal Land Reserve Center according to the compensation policies and rates specified herein, which will pay compensation fees to the affected entities or individuals according to agreements. The IA will report construction progress to NESO monthly, and review disbursement reports for submission to NESO to apply for disbursement. Land compensation fees, house compensation fees, compensation fees for attachments, moving subsidies, transition subsidies and rewards for early moving will be approved by the IA. NESO will appoint a specialized consulting agency to perform regular internal audits on the use of resettlement funds by the resettlement offices.

The finance and audit departments of NMG have the power to monitor and audit the use of resettlement funds. The external M&E agency will perform follow-up monitoring on the availability of compensation fees for the AHs and the affected entities during external monitoring.

10. Resettlement Implementation Plan

10.1 Principles for Resettlement Implementation

According to the project implementation schedule, the Project will be constructed from the end of 2013 to 2016. In order that the resettlement schedule links up the construction schedule of the Project, land acquisition will begin in June 2013 and end in June 2015. The basic principles for resettlement implementation are as follows:

 LA, HD and resettlement should be completed at least one month prior to the commencement of construction, and the starting time will be determined as necessary.

 During resettlement, the APs shall have opportunities to participate in the Project. Before the commencement of construction, the range of LA will be disclosed, the RIB distributed and public participation activities conducted properly.

 All compensation fees will be paid to the affected proprietors directly and fully within 3 months of approval of the resettlement and compensation program. No organization or individual should use compensation fees on their behalf, nor should compensation fees be discounted for any reason.

10.2 Resettlement Implementation Schedule

The general resettlement schedule of the Project has been drafted based on the progress of project construction, LA and HD, and resettlement preparation and implementation. The exact implementation schedule may be adjusted due to deviations in overall project progress. See Table 10-1.

Table 10-1 Resettlement Implementation Schedule

Agencies No. Task Target Time Remarks responsible 1 Information disclosure 5 villages/ 1.1 RIB PMO and NESO Jun. 2013 communities 2 DMS DMS on the 5 affected 5 villages/ 2.1 NESO Jun. 2013 villages/communities communities 3 Compensation agreement Village-level land 5 villages/ Land & resources 3.1 Jun. 2013 compensation agreement communities bureau Household land compensation 61 3.2 Village committees Jun. 30, 2013 agreement households Compensation agreement for 25 Land & resources Jun. – Jul. 3.3 house demolition households bureau 2013 4 Implementation of livelihood restoration measures 4.1 Distribution of land 5 villages/ Townships & May – Jul.

Agencies No. Task Target Time Remarks responsible compensation fees to AHs communities villages 2013 Implementation of village-level 5 villages/ Jun. – Dec. 4.2 Village collectives income restoration programs communities 2013 Implementation of training Labor and social Apr. 2013 – 4.3 61 AHs program security bureau Aug. 2014 5 Capacity building Training of staff of NESO, and Feb. – Apr. 5.1 15 persons Bank the land and resources bureau 2013 Training of county, township PMO, land and May – Jun. 5.2 400 persons and village officials resources bureau 2013 6 M&E As per the External M&E 6.1 Baseline survey May 30, 2013 RP agency Establishment of internal M&E As per the 6.2 PMO and IA May 30, 2013 mechanism RP Appointing an external M&E 6.3 One PMO May 30, 2013 agency Quarterly From Oct. 31, 6.4 Internal monitoring reporting PMO and IA report 2013 st Semiannual External M&E Dec. 2013 1 report 6.5 External monitoring reporting report agency Aug. 2014 2nd report st Annual External M&E Dec. 2014 1 report 6.6 External evaluation reporting report agency Aug. 2015 2nd report

6.7 Post-evaluation report One report PMO Dec. 2015

7 Public consultation IA Ongoing 8 Grievance redress IA Ongoing 9 Disbursement of compensation fees 9.1 Disbursement to IA Initial funds Jul. 2013 Jul. – Aug. 9.2 Disbursement to villages Most funds IA 2013 IA and village Sep. – Oct. 9.3 Disbursement to households Most funds committees 2013 10 Commencement of civil construction 10.1 RAP NESO Nov. 2013

11. Monitoring and Evaluation

In order to ensure the successful implementation of the RP and realize the objectives of resettlement properly, LA, HD and resettlement activities of the Project will be subject to periodic M&E according to the Bank’s resettlement policies, including internal and external monitoring. According to the construction and resettlement schedules of the Project, a progress report will be submitted to the Bank semiannually and an external monitoring report submitted annually.

11.1 Internal Monitoring

The Ningbo PMO will establish an internal monitoring agency to supervise resettlement activities. The resettlement implementing agencies will establish a database of LA, HD and resettlement, and use it to prepare the RAP, monitor all displaced households and entities, and conduct internal supervision and inspection of the whole process of resettlement.

11.1.1 Implementation Procedure

During implementation, the PMO will collect and record information on resettlement implementation from the monitoring samples, and report real-time activity records to maintain continuous monitoring.

11.1.2 Scope of Monitoring (1) Compensation fees and disbursement (2) Availability of resettlement housing (3) Construction and allocation of resettlement housing for property swap (4) Staffing, training, working schedule and efficiency of the resettlement agencies (5) Registration and handling of grievances and appeals of the APs

11.1.3 Internal Monitoring Reporting

The IA will prepare an internal monitoring report semiannually, and submit it to the Ningbo PMO, which will in turn submit it to the Bank. 11.2 Independent External Monitoring

11.2.1 Purpose and Tasks

External M&E means the regular M&E of LA, HD and resettlement activities from out of the resettlement organization to see if the objectives of resettlement are met. Through external M&E, opinions and suggestions are proposed on the whole resettlement process, and the restoration of the production level and standard of living of the APs, an early warning system is established for the management agencies, and a feedback channel provided for the APs.

The external M&E agency will serve as the consultant to the management and implementing agencies of the Project, conduct follow-up monitoring on the implementation of the RAP, and give opinions for decision-making.

11.2.2 Independent M&E Agency

As required by the Bank, a qualified agency will be appointed as the external M&E agency, which will provide technical assistance to the component owners, and implement basic monitoring through resettlement survey and standard of living survey.

11.2.3 Procedure and Scope of Monitoring (1) Preparing the Terms of Reference of M&E (2) Preparing a survey outline, survey form and record card of affected residents and typical affected entities (3) Design of sampling survey plan and sample size: 20 households sampled from 61 households affected by LA (34%) and 15 from households affected by HD (60%) (4) Baseline survey A baseline survey required for the independent M&E of the households affected by LA in the WE Project, and the entities and households affected by the Hongshui River Project will be conducted to acquire baseline data on the standard of living (livelihood, production and income levels) of the monitored AHs. (5) Establishing an M&E information system An M&E information system will be established, where a database will be established for different types of M&E data, in order to provide computer aid for analysis and follow-up monitoring. (6) M&E survey ① Capacity evaluation of resettlement implementing agencies: to investigate the working capacity and efficiency of the resettlement implementing agencies ② Monitoring of resettlement progress, compensation rates and payment to typical displaced households: to monitor the disbursement of compensation fees, income restoration and resettlement quality of residents; restoration measures for vulnerable groups ③ Public participation and consultation: to monitor public participation activities during the preparation and implementation of the RAP, and the effectiveness of participation ④ Appeals: to monitor the registration and disposition of appeals of the APs (7) Compiling monitoring data, and establishing a database (8) Comparative analysis (9) Preparing M&E reports according to the monitoring plan

11.2.4 Monitoring Indicators Key M&E indicators: (1) Progress: preparation and implementation of LA, HD and resettlement (2) Quality: effectiveness of resettlement measures and satisfaction of the APs (3) Investment: disbursement and use of funds M&E will be conducted on the basis of the survey data provided by the design agency, and resettlement implementing agencies. After a full understanding has been obtained, M&E will be conducted in the form of key informant interview and rapid rural appraisal. Usually, the external M&E agency will perform the following tasks: (1) Public consultation The external M&E agency will attend public consultation meetings at villages and

57 towns. In this way, it will be able to evaluate the effectiveness of public participation and the willingness of the APs to cooperate in the RAP. These activities will be conducted during and after resettlement. (2) Collecting opinions from the APs The external M&E agency will meet township resettlement offices and villagers from time to time to learn opinions collected by them from affected persons. The external M&E agency will report such opinions to the resettlement offices so as to make resettlement more effective and smooth. (3) Other duties The external M&E agency will give advice on the improvement and implementation of the RAP to the resettlement offices.

11.2.5 External Monitoring Reporting The external M&E agency will prepare external monitoring reports based on its observations and survey findings, and report independently to the Ningbo PMO and the Bank. (1) Interval M&E will begin in June2011 and end in December 2016. As required by the Bank, external monitoring will be conducted twice a year. A mid-year monitoring report will be submitted to the Bank and the resettlement agencies in the middle of each year, and an annual monitoring report will be submitted to the Bank and the project owner at each year end. (2) Scope a. Resettlement baseline survey; b. Progress of LA, HD and resettlement; c. Production resettlement and restoration; d. House demolition and reconstruction; e. Restoration progress of special facilities; f. Standard of living of the APs; g. Availability and utilization of resettlement funds; h. Evaluation of the efficiency of the resettlement implementing agencies; i. Support for vulnerable groups; j. Functions of the resettlement implementing agencies; and k. Existing issues and suggestions

11.3 Post-evaluation

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

Appendixes

Appendix 1: Schematic Map of the Project

Appendix 2: Distribution of Survey Samples

Township / Village / Affected Samples Sampling Subcomponent No. sub-district community HHs HHs Population rate (%) Fuming Sangjia Jiangdong CTS 1 8 4 12 50.00 Sub-district Community Zhuangqiao 2 Xishao Village 15 5 23 33.33 Sub-district Jiangbei CTS Hongtang Xiashen 3 5 3 9 60.00 Sub-district Village Dingqiao Yinzhou CTS 4 Jiangshan Town 20 8 25 40.00 Village Yinzhou Chuyu Xuanpei 5 Dongqiao Town 19 9 18 47.37 WTP Village Total 67 29 87 43.28

Appendix 3: Policy on Resettlement Insurance for LEFs

Interim Measures of Ningbo Municipality for Endowment Insurance for Land-expropriated Farmers (NMG [2002] No.125) In order to establish a sound endowment insurance system for LEFs, promote our city’s sustainable economic development and maintain social stability, these Measures have been developed in accordance with the state requirements for improving social security systems and based on our city’s practical conditions. I. Scope of application 1. These Measures shall apply to Haishu, Jiangdong, Jiangbei, Zhenhai, Beilun and

Yinzhou Districts. 2. The subjects to which these Measures apply shall be: a) former residents in villages converted into communities; and b) persons all or most of whose land is acquired with the approval of the land and resources bureau at or above the county level. The above persons shall be known collectively as “LEFs”. 3. These Measures do not apply LEFs who have participated in basic endowment insurance for urban employees. 4. The list of participants of will be submitted by each village or community committee after preliminary review, and approved by the local labor and social security authority after review by the township government or sub-district office. II. Eligibility and benefit rates 1. Insured men when attaining 60 years or women when attaining 55 years will receive endowment insurance benefits on a monthly basis. 2. Monthly endowment insurance benefits are divided into Levels 1, 2 and 3s. The benefit rates fixed in 2003 are 300 yuan for Level 1, 250 yuan for Level 2 and 200 yuan for Level 3. The benefit level must correspond to the contribution level. 3. Endowment insurance benefit levels will be adjusted with our city’s economic development and the living standard of urban residents with the approval of the municipal government. 4. If the insured dies, his/her dependents should notify the endowment insurance handling agency and settle relevant formalities within 30 days. III. Contribution levels 1. LEFs shall get insured and contribute endowment insurance premiums at three levels (Level 1, 2 and 3) voluntarily. The contribution level and the corresponding benefit level will be chosen by the insured at the beginning but will not be changed thereafter. In 2003, the contribution levels for men below 60 years or women below 55 years are Level 1 (146,000 yuan), Level 2 (233,000 yuan) and Level 3 (320,000 yuan). See the attachment for the contribution levels available for men 60 years or above or women 55 years or above. 2. Contribution levels of endowment insurance premiums will be adjusted with our city’s economic development, benefit adjustment and bank interest rate variation with the approval of the municipal government. 3. LEFs usually settle the endowment insurance formalities and pay premiums in the unit of village or community committee. Endowment insurance premiums shall be paid up at a time in principle, or contributed by installments in case of financial difficulty with approval. In the latter case, the first amount of contribution shall not be less than 50% of the total amount, and the amount to be contributed in each subsequent year shall not be less than 10% of the total amount plus the accrued interest. IV. Fund raising and management 1. An endowment insurance fund for LEFs shall be established at the municipal and district levels. 2. The endowment insurance fund for LEFs shall be shared by the individual, collective and government. Individual and collective contributions will be used to contribute to endowment insurance premiums, and government contributions will

be used to pay pensions when premiums contributed are insufficient. A collective economic organization shall contribute endowment insurance premiums partly for its members based on its affordability from land compensation fees and collective funds. 3. After these Measures come into effect, the municipal and district governments shall establish social security risk funds from fees for the compensated transfer of land use rights and administrative fees on the allocation of additional construction land. 4. Endowment insurance premiums shall be collected by each district endowment insurance handling agency. Endowment insurance premiums collected and interest accruing thereon shall be managed under a special fiscal account. The endowment insurance fund shall be used for the designated purpose under public supervision. V. Coordination with other types of endowment insurance 1. A collective economic organization may cover basic endowment insurance for urban employees for its members, and premiums shall be contributed by the collective and individual jointly. 2. For LEFs employed by enterprises, enterprises must cover basic endowment insurance for urban employees for them. If LEFs having participated in basic endowment insurance for urban employees individual account terminate employment with enterprises, they may participate in basic endowment insurance for urban employees as self-employers. 3. LEFs having participated in both basic endowment insurance for urban employees and endowment insurance for LEFs may choose either to receive benefits when attaining the specified age. 4. LEFs having participated in rural endowment insurance may withdraw from rural endowment insurance after getting insured hereunder. 5. A collective economic organization may cover supplementary endowment insurance or commercial insurance for its members getting employed hereunder to further improve their benefit levels. VI. Individual account management 1. Each handling agency shall establish a computer management for endowment insurance for LEFs, and establish sound management systems and normative operating processes. After each handling agency has accepted the application for participation from an LEF, confirmed his/her eligibility and settled the contribution formalities, it shall issue a manual of insured endowment insurance for LEFs to record the basic and contribution information of the insured. Endowment insurance premiums contributed by the insured shall be managed under an individual account, and interests shall accrue at the prevailing bank interest rate. 2. Endowment insurance premiums borne by a collective economic organization shall be regarded as individual contribution and entered into the individual account. Benefits shall be first paid from the individual account, and if the balance of the individual account is insufficient, from the risk fund. 3. If the insured settles abroad or his/her registered residence moves out of Ningbo, and wishes to terminate endowment insurance, the principal of the individual account will be returned with interest.

4. If the insured dies before receiving benefits, the principal of the individual account will be returned with interest to his/her designated beneficiary or legal heir. 5. If the insured is already receiving basic pensions for urban employees on a monthly basis, the principal of the individual account will be returned with interest. 6. If the insured dies while receiving benefits, the balance of the individual account will be returned to his/her designated beneficiary or legal heir. VII. Organizational leadership and division of responsibilities 1. These Measures is an integral part of our city’s endowment insurance system. A leading group of endowment insurance for LEFs headed by a municipal leader, and composed of leaders from the municipal departments concerned and district governments shall be established to study and coordinate major issues arising from endowment insurance for LEFs. An office shall be established under the leading group at the municipal labor and social security bureau. Relevant organizations shall also be established at the district level. 2. Governments at all levels and departments concerned shall work closely to ensure the steady implementation hereof. The labor and social security department shall be responsible for the overall management of endowment insurance for LEFs, and the publicity and explanation of relevant policies. A special agency shall be established thereunder to handle insurance formalities, collect endowment insurance premiums, manage individual accounts, and pay benefits. The finance department shall manage and supervise the endowment insurance fund, and raise funds to be contributed by the government. The land and resources department shall perform prepare statistics of land acquisition and compensation, and provide feedback. The civil affairs department shall perform coordination rural endowment insurance. The public security department shall assist in the confirmation of household registration. All township governments, sub-district offices and village or community committees shall perform policy publicity and provide assistance. VIII. Other 1. County (city) governments may develop implementation measures based on local conditions by reference hereto. The Zhenhai, Beilun and Yinzhou District Governments may develop implementation measures, and submit them to the municipal labor and social security bureau for reference before implementation. 2. These Measures shall come into effect from January 1, 2003. 3. These Measures shall be interpreted by the municipal labor and social security bureau.

Appendix 4: Contribution Levels and Benefits of Resettlement Insurance for LEFs in Ningbo

Contribution level Contribution rate Level 1 Level 2 Level 3 Age (yuan) (yuan) (yuan) Males Females <60 years <55 years 49510 35570 21530 >=60 years, <61 years 55 years, <56 years 46310 33380 20460 >=61 years, <62 years 56 years, <57 years 43070 31230 19380 >=62 years, <63 years 57 years, <58 years 39840 29080 18310 >=63 years, <64 years 58 years, <59 years 36610 26930 17230 >=64 years, <65 years 59 years, <60 years 33380 24760 16150 >=65 years, <66 years 60 years, <61 years 30160 22610 15080 >=66 years, <67 years 61 years, <62 years 26930 20460 14000 >=67 years, <68 years 62 years, <63 years 23690 18310 12930 >=68 years, <69 years 63 years, <64 years 20460 16150 11850 >=69 years, <70 years >=64 years, <65 years 17230 14000 10770 >=70 years >=65 years 14000 11850 9700 Endowment insurance benefit 380 330 280

Appendix 5: Public Participation and Minutes

Time July 26, 2012 Location Sangjia Community, Fuming Sub-district, Jiangdong District Organized by Ningbo PMO, NRCR survey team Participants NRCR Topics Compensation rates for LA and HD, income restoration program Key points 1) Compensation fees for LA and HD should be paid directly to the collective for unified investment, and the return thereon will be distributed among residents; 2) The compensation rate of 450 yuan/m2 is too low and a higher rate is expected; 3) The persons affected by LA and HD agree to support the Project as long as compensation is adequate; 4) The indirectly affected enterprises expect to know the date of relocation in advance to prepare for relocation and future operations. Time July 27, 2012 Location Xujiacao Village, Haishu District Organized by Ningbo PMO, NRCR survey team, EIA agency Participants NRCR Topics Nature of land used for the Project Key points 1) The land used for the Project is state-owned land and was converted from farmland in 2000; 2) The Project should be close to highways, and HD should be avoided. Time July 28, 2012 Location Xishao Village, Zhuangqiao Sub-district, Jiangbei District Organized by Ningbo PMO, NRCR survey team Participants NRCR Topics Compensation rates for LA and HD, income restoration program Key points 1) Compensation fees for LA and HD should be paid directly to the collective for unified investment, and the return thereon will be distributed among residents; 2) The land to be acquired for the Project includes construction land and a small amount of cultivated land; 3) The land to be acquired is actually unused and generates no income, so LA will not affect villagers’ income; 4) The persons affected by LA and HD agree to support the Project as long as compensation is adequate; 5) The 6 displaced households in Jiangbei District may be resettled by the Jiangbei District Government together with the Zhuangqiao and Hongtang Sub-district Offices in the resettlement community at 1 Baoqing Road. Time October 16, 2012

Location Xuanpei Village, Dongqiao Town, Yinzhou District Organized by Ningbo PMO, NRCR survey team Participants NRCR Topics Compensation rates for LA and HD, income restoration program Key points 1) Compensation fees for LA and HD should be paid directly to the collective for unified investment, and the return thereon will be distributed among residents; 2) The 80 mu of land to be acquired for the Project includes 32 mu of cultivated land, 31 mu of woodland, 14 mu of housing land and 3 mu of pond, and is leased to floating population mainly; villagers rely mainly on nonagricultural income, and LA will affect villagers’ income slightly; 3) The persons affected by LA and HD agree to support the Project as long as compensation is adequate; 4) Among the 19 displaced households in Jiangbei District, some expect cash compensation and more expect property swap; a resettlement community will be constructed in conjunction with the construction of the Venous Industrial Park. Time October 17, 2012 Location Xuanpei Village, Dongqiao Town, Yinzhou District Organized by Ningbo PMO, NRCR survey team Participants NRCR Topics Compensation rates for LA and HD, income restoration program Key points 1) Compensation fees for LA and HD should be paid directly to the collective for unified investment, and the return thereon will be distributed among residents; 2) Villagers rely mainly on nonagricultural income, and LA will affect villagers’ income slightly; the land to be acquired for the Project is leased to floating population mainly; 3) The village committee plans to build greenhouses on 200 mu of land for rent to floating population to earn more rental income; 4) The affect land lessees may lease other in the village during the construction of the Project; 5) The persons affected by LA and HD agree to support the Project as long as compensation is adequate; 6) This subcomponent does not involve HD.

Appendix 6: Gender Analysis Form

Part A—Gender analysis of rural women in the project area 1. Legal rights of women According to laws of the PRC, women have equal legal rights with men, though some women are not fully aware of this. 2. Social status of women Women of the project area have relatively good social status. All key matters of a family are determined by the couple through discussion. Men are the backbone of families, and attend the important meetings of the village. 3. Title to land and Women have the same title as men. Since a second round of land contracting has been carried out in the affected villages (around properties 1996), women have received land compensation fees and resettlement subsidies like men have. If land acquisition, house demolition or resettlement is involved, women will have equal rights to compensation. 4. Right to collective Women have equal rights. properties 5. Living and gender role There is no restriction on gender role. However, women do housework and appropriate farm work mainly in Chinese rural areas, while men mostly do farm work or work outside. Generally, the working hours of women are 1.2 times those of men. In addition, many young women also work outside. 6. Contribution to Women’s income is from farming and household sideline operations mainly, accounting for about 39% of household income. household income 7. Family status Women have an equal voice in decision-making; when men are away for work, women make decisions themselves in many aspects. 8. Educational level Boys and girls enjoy equal opportunities in receiving education, and as long as children study hard, their parents would do their best to support their school education. 9. Health Women’s health condition is quite good and there is no significant difference in nutrition level compared to men; however, medical expenses are rising and have become a significant burden for some households, and women may suffer more. 10. Village and Women are represented in all village committees. In addition, women have a good informal network in the village and the village government agencies group. Women may participate in the election of the village committee, and have the right to elect and be elected; local governments attach great importance to women’s development, especially in poverty reduction. Overall evaluation and Women enjoy a good status in the project area, and there is no restriction on gender role; though women seldom participate in the key risks decision-making of public affairs of the village collective, they can express their views in many ways (e.g., through male members of their families). B—Gender analysis of women during resettlement Gender issue Concern/risk Impact of the Project Mitigation measures Women have no right to Women have title to houses, and house reconstruction is The compensation agreement for 1. House demolition and make decisions or use determined jointly by all family members, so women can HD must be signed by the couple. reconstruction compensation fees. participate in housing site selection, house construction and transitional housing arrangement, etc. 2. Increase of gender Women are not adapted to Due to HD, some elderly women will move from scattered Strengthen community work and inequalities the new living environment rural houses into resettlement buildings constructed in a enrich community cultural life.

Part A—Gender analysis of rural women in the project area due to resettlement. unified manner, and may show some extent of inadaptation. Serious health or social The Project will not affect the villages seriously, but some Providing assistance together 3. Impact on health / increase problems due to the stress of seriously affected households and vulnerable groups will be with the civil affairs department of social problems resettlement (violence, AIDS faced with difficulties. propagation, etc.)

Appendix 7: Summary of Sewer Lines

Pipe Temporarily Nature/ type Length Construction No. Work Location Starting point Ending point diameter occupied land of land (km) method (mm) area (mu) Cultivated 1 Chuyu WTP East of Xuanpei Village 315 1.2 14.4 Slotting Dongqiao land Chuyu Town, East of Cultivated 2 WTP East of Sanli Village 315 0.8 9.6 Slotting Yinzhou Xuanpei Village land sewer line District East of Sanli Yinxi Wastewater Treatment Cultivated 3 315 1.5 18 Slotting Village Plant in Zhangjiadian Village land Total 3.5 42 /

Appendix 8: Detailed Estimates of Resettlement Costs

Attached Table 8-1 General Resettlement Budget

Amount (0,000 yuan) Jiangdong Yinzhou Jiangbei CTS (including sorting) Yinzhou CTS Item CTS Chuyu WTP Percent Total Sangjia Xishao Xiashen Dingqiao Xuanpei (%) Subtotal Community Village Village Village Village Acquisition of rural collective land 278.85 140.0956 3.50625 143.60185 243.54 412.7 1078.69185 7.66% Cultivated land (including irrigated 278.85 114.5536 0 114.5536 243.54 211.2 848.1436 6.02% and non-irrigated land)) Land compensation fees and 275.99 112.508 0 112.508 239.85 208 836.348 5.94% resettlement subsidies Young crop compensation fees 2.86 2.0456 0 2.0456 3.69 3.2 11.7956 0.08% Woodland 0 0 0 0 0 100.75 100.75 0.72% Housing land 0 25.542 3.50625 29.04825 0 91 120.04825 0.85% Ponds 0 0 0 0 0 9.75 9.75 0.07% Compensation fees for demolition 6829.55 55.73 248.97 304.7 0 2824.09 9958.34 70.74% of rural residential houses Compensation fees for demolition of 0 55.73 248.97 304.7 0 2824.09 3128.79 22.23% rural residential houses Masonry concrete 0 0 0 0 0 2448 2448 17.39% Masonry timber 0 55 187.5 242.5 0 346.5 589 4.18% Earth timber 0 0 58 58 0 0 58 0.41% Moving subsidy 0 0.07 0.35 0.42 0 1.33 1.75 0.01% Transition subsidy 0 0.66 3.12 3.78 0 28.26 32.04 0.23% Compensation fees for demolition of 6829.55 0 0 0 0 0 6829.55 48.51% rural unlicensed properties Compensation fees for demolition of 6636 0 0 0 0 0 6636 47.14% rural unlicensed properties Moving subsidy for enterprises affected by demolition of rural 27.65 0 0 0 0 0 27.65 0.20% unlicensed properties Compensation fees for production or 165.9 0 0 0 0 0 165.9 1.18% business suspension of enterprises

68 affected by demolition of rural unlicensed properties Temporary land occupation 0 0 0 0 0 5.04 5.04 0.04% Infrastructure and ground 1.8 8.8 0 8.8 28.08 10.768 49.448 0.35% attachments Scattered trees 1.2 5.2 0 5.2 0 8 14.4 0.10% Telegraph poles 0.2 0.3 0 0.3 0 0.4 0.9 0.01% Electric wires 0.4 0.6 0 0.6 0 1 2 0.01% Duck pens 0 2.7 0 2.7 0 0 2.7 0.02% Greenhouses (cement) 0 0 0 0 4.5 0 4.5 0.03% Greenhouses (plastic-steel) 0 0 0 0 22.5 0 22.5 0.16% Simple rooms 0 0 0 0 1.08 0 1.08 0.01% Toilets 0 0 0 0 0 1.368 1.368 0.01% Subtotal of Items 1-4 7110.2 204.6256 252.4763 457.10185 271.62 3252.598 11091.5199 78.79% Survey and design costs 71.1020 2.0463 2.5248 4.5710 2.7162 32.5260 110.9152 0.79% External M&E costs 106.6530 3.0694 3.7871 6.8565 4.0743 48.7890 166.3728 1.18% Implementation management costs 142.2040 4.0925 5.0495 9.1420 5.4324 65.0520 221.8304 1.58% Training costs 71.1020 2.0463 2.5248 4.5710 2.7162 32.5260 110.9152 0.79% Contingencies 711.0200 20.4626 25.2476 45.7102 27.1620 325.2598 1109.1520 7.88% Taxes on LA 326.8027 233.7439 0.0000 233.7439 421.6440 284.5867 1266.7772 9.00% Farmland occupation tax 95.3333 68.1867 0.0000 68.1867 123.0000 106.6667 393.1867 2.79% Fees for using additional construction 152.5333 109.0987 0.0000 109.0987 196.8000 89.6000 548.0320 3.89% land Farmland reclamation costs 68.6400 49.0944 0.0000 49.0944 88.5600 76.8000 283.0944 2.01% LA management costs 10.2960 7.3642 0.0000 7.3642 13.2840 11.5200 42.4642 0.30% Subtotal of Items 5-10 1428.8837 265.4609 39.1338 304.5947 463.7451 788.7394 2985.9628 21.21% Total 8539.0837 470.0865 291.6101 761.6965 735.3651 4041.3374 14077.4827 100.00% Percent (%) 60.66% 3.34% 2.07% 5.41% 5.22% 28.71% 100.00% /

Attached Table 8-2 Resettlement Budget for the Subcomponent of Jiangdong District

Administrative division Fuming Sub-district, Jiangdong District No. Item Qty. Compensation Rate Amount 1 Acquisition of rural collective land 278.85

1.1 Cultivated land (including irrigated and non-irrigated land)) 28.6 97600 278.85 Land compensation fees and resettlement subsidies 28.6 96500 275.99 Young crop compensation fees 28.6 1000 2.86 1.2 Woodland 0 0 0 1.3 Housing land 0 0 0 1.4 Ponds 0 0 0 2 Compensation fees for demolition of rural residential houses 6829.55 2.1 Compensation fees for demolition of rural residential houses 0 0 0 2.1.1 Masonry concrete 0 0 0 2.1.2 Masonry timber 0 0 0 2.1.3 Earth timber 0 0 0 2.1.4 Moving subsidy 0 0 0 2.1.5 Transition subsidy 0 0 0 2.2 Compensation fees for demolition of rural unlicensed properties 6829.55 2.2.1 Compensation fees for demolition of rural unlicensed properties 55300 1200 6636 Moving subsidy for enterprises affected by demolition of rural 2.2.2 55300 5 27.65 unlicensed properties Compensation fees for production or business suspension of 2.2.2 55300 30 165.9 enterprises affected by demolition of rural unlicensed properties 3 Temporary land occupation 0 1200 0 4 Infrastructure and ground attachments 1.8 4 Scattered trees 6 2000 1.2 4.1 Telegraph poles 4 500 0.2 4.2 Electric wires 400 10 0.4 4.3 Duck pens 0 0 4.4 Greenhouses (cement) 0 0 4.5 Greenhouses (bamboo-timber) 0 0 4.6 Simple rooms 0 0 4.8 Toilets 0 0 Subtotal of Items 1-4 7110.2 5 Survey and design costs 1.0% 71.102 6 Internal & external M&E costs 1.5% 106.653 7 Implementation management costs 2.0% 142.204

8 Training costs 1.0% 71.102 9 Contingencies 10.0% 711.02 10 Taxes on LA 326.8026667 10.1 Farmland occupation tax 28.6 33333.33333 95.33333333 10.2 Fees for using additional construction land 28.6 53333.33333 152.5333333 10.3 Farmland reclamation costs 28.6 24000 68.64 10.4 LA management costs 28.6 3600 10.296 Subtotal of Items 5-10 1428.883667 Total 8539.083667

Attached Table 8-3 Resettlement Budget for the Subcomponent of Jiangbei District

Zhuangqiao Sub-district, Jiangbei Administrative division Hongtang Sub-district, Jiangbei District District Total Compensation Compensation No. Item Qty. Amount Qty. Amount Rate Rate 1 Acquisition of rural collective land 140.0956 3.50625 143.6019 Cultivated land (including irrigated and 1.1 20.456 56000 114.5536 0 56000 0 114.5536 non-irrigated land)) Land compensation fees and resettlement 20.456 55000 112.508 0 55000 0 112.508 subsidies Young crop compensation fees 20.456 1000 2.0456 0 1000 0 2.0456 1.2 Woodland 0 0 0 0 0 0 0 1.3 Housing land 4.644 55000 25.542 0.6375 55000 3.50625 29.04825 1.4 Ponds 0 0 0 0 0 0 0 Compensation fees for demolition of 2 55.73 248.97 304.7 rural residential houses Compensation fees for demolition of rural 2.1 55.73 248.97 304.7 residential houses 2.1.1 Masonry concrete 0 5500 0 0 5500 0 0 2.1.2 Masonry timber 110 5000 55 375 5000 187.5 242.5 2.1.3 Earth timber 0 4000 0 145 4000 58 58 2.1.4 Moving subsidy 1 700 0.07 5 700 0.35 0.42 2.1.5 Transition subsidy 110 60 0.66 520 60 3.12 3.78 2.2 Compensation fees for demolition of rural 0 0 0

unlicensed properties Compensation fees for demolition of rural 2.2.1 0 1200 0 0 1200 0 0 unlicensed properties Moving subsidy for enterprises affected by 2.2.2 0 5 0 0 5 0 0 demolition of rural unlicensed properties Compensation fees for production or business suspension of enterprises 2.2.2 0 30 0 0 30 0 0 affected by demolition of rural unlicensed properties 3 Temporary land occupation 0 1200 0 0 1200 0 0 4 Infrastructure and ground attachments 8.8 0 8.8 4.1 Scattered trees 26 2000 5.2 0 2000 0 5.2 4.2 Telegraph poles 6 500 0.3 0 500 0 0.3 4.3 Electric wires 600 10 0.6 0 10 0 0.6 4.4 Duck pens 3000 9 2.7 0 9 0 2.7 4.5 Greenhouses (cement) 0 4500 0 0 4500 0 0 4.6 Greenhouses (bamboo-timber) 0 15000 0 0 15000 0 0 4.7 Simple rooms 0 180 0 0 180 0 0 4.8 Toilets 0 180 0 0 180 0 0 Subtotal of Items 1-4 204.6256 252.47625 457.1019 5 Survey and design costs 1% 2.046256 1% 2.5247625 4.5710185 6 Internal & external M&E costs 1.5% 3.069384 1.5% 3.78714375 6.8565278 7 Implementation management costs 2% 4.092512 2% 5.049525 9.142037 8 Training costs 1% 2.046256 1% 2.5247625 4.5710185 9 Contingencies 10% 20.46256 10% 25.247625 45.710185 10 Taxes on LA 233.7438933 0 233.74389 10.1 Farmland occupation tax 20.456 33333.333 68.18666667 0 33333.333 0 68.186667 10.2 Fees for using additional construction land 20.456 53333.333 109.0986667 0 53333.333 0 109.09867 10.3 Farmland reclamation costs 20.456 24000 49.0944 0 24000 0 49.0944 10.4 LA management costs 20.456 3600 7.36416 0 3600 0 7.36416 Subtotal of Items 5-10 265.4608613 39.13381875 304.5947 Total 470.0864613 291.6100688 761.6965

Attached Table 8-4 Resettlement Budget for the Subcomponent of Yinzhou District

Administrative division Dongqiao Town, Yinzhou District Jiangshan Town, Yinzhou District Compensation Compensation Total No. Item Qty. Amount Qty. Amount Rate Rate 1 Acquisition of rural collective land 412.7 243.54 656.24 Cultivated land (including irrigated and 1.1 32 66000 211.2 36.9 66000 243.54 454.74 non-irrigated land)) Land compensation fees and resettlement 32 65000 208 36.9 65000 239.85 447.85 subsidies Young crop compensation fees 32 1000 3.2 36.9 1000 3.69 6.89 1.2 Woodland 31 32500 100.75 0 32500 0 100.75 1.3 Housing land 14 65000 91 0 65000 0 91 1.4 Ponds 3 32500 9.75 0 32500 0 9.75 Compensation fees for demolition of rural 2 2824.09 0 2824.09 residential houses Compensation fees for demolition of rural 2.1 2824.09 0 2824.09 residential houses 2.1.1 Masonry concrete 4080 6000 2448 0 5500 0 2448 2.1.2 Masonry timber 630 5500 346.5 0 5000 0 346.5 2.1.3 Earth timber 0 5000 0 0 5000 0 0 2.1.4 Moving subsidy 19 700 1.33 0 700 0 1.33 2.1.5 Transition subsidy 4710 60 28.26 0 60 0 28.26 Compensation fees for demolition of rural 2.2 0 0 0 unlicensed properties Compensation fees for demolition of rural 2.2.1 0 1200 0 0 1200 0 0 unlicensed properties Moving subsidy for enterprises affected by 2.2.2 0 5 0 0 5 0 0 demolition of rural unlicensed properties Compensation fees for production or 2.2.2 business suspension of enterprises affected 0 30 0 0 30 0 0 by demolition of rural unlicensed properties 3 Temporary land occupation 42 1200 5.04 0 1200 0 5.04 4 Infrastructure and ground attachments 10.768 28.08 38.848 4.1 Scattered trees 40 2000 8 0 2000 0 8 4.2 Telegraph poles 8 500 0.4 0 500 0 0.4 4.3 Electric wires 1000 10 1 0 10 0 1

4.4 Duck pens 0 9 0 0 9 0 0 4.5 Greenhouses (cement) 0 4500 0 10 4500 4.5 4.5 4.6 Greenhouses (plastic-steel) 0 15000 0 15 15000 22.5 22.5 4.7 Simple rooms 0 180 0 60 180 1.08 1.08 4.8 Toilets 76 180 1.368 0 180 0 1.368 Subtotal of Items 1-4 3252.598 271.62 3524.218 5 Survey and design costs 1.0% 32.52598 1.0% 2.7162 35.24218 6 Internal & external M&E costs 1.5% 48.78897 1.5% 4.0743 52.86327 7 Implementation management costs 2.0% 65.05196 2.0% 5.4324 70.48436 8 Training costs 1.0% 32.52598 1.0% 2.7162 35.24218 9 Contingencies 10.0% 325.2598 10.0% 27.162 352.4218 10 Taxes on LA 284.5866667 421.644 706.23067 10.1 Farmland occupation tax 32 33333.333 106.6666667 36.9 33333.333 123 229.66667 10.2 Fees for using additional construction land 32 28000 89.6 36.9 53333.333 196.8 286.4 10.3 Farmland reclamation costs 32 24000 76.8 36.9 24000 88.56 165.36 10.4 LA management costs 32 3600 11.52 36.9 3600 13.284 24.804 Subtotal of Items 5-10 788.7393567 463.7451 1252.484 Total 4041.337357 735.3651 4776.702

Appendix 9: Note to the Use of Land for the Haishu Xujiacao CTS

26.9 mu of state-owned land will be occupied for the Haishu Xujiacao CTS. This plot was converted from farmland into state-owned construction land under the approval document ZLRD [2000] No.193 in 2000, and there is no building thereon. During LA, NMG organized compensation and resettlement in strict conformity with the approved LA program, and the members of the organization affected by LA have been properly resettled. The Reply on Farmland Conversion and Land Acquisition for Urban Construction is as follows:

Appendix 10: Note to the Use of Land for the Dongqianhu CTS

5.4 mu of land will be acquired for the Dongqianhu CTS. This plot was acquired in 2008 and converted from farmland into state-owned construction land under the approval document ZLA [2009] No.0331 in 2009. During LA, the Dongqianhu Town Government organized compensation and resettlement in strict conformity with the approved LA program, and the members of the organization affected by LA have been properly resettled.

Appendix 11: Resettlement Information Booklet

World Bank-financed Ningbo Municipal Solid Waste Minimization and Recycling Project

Resettlement Information Booklet of the Ningbo Municipal Solid Waste Minimization and Recycling Project

Ningbo, China October 2012

A. Brief description of the Project The World Bank-financed Ningbo Municipal Solid Waste Minimization and Recycling Project (hereinafter, the “Project”) consists of four components – MSW Separation, Collection and Sorting, Kitchen Waste Treatment Facility Construction, Implementation Capacity Building, and Implementation Organization and Project Management.

The Project will break ground in June 2013 and be completed in October 2015. LA, HD, compensation and resettlement will begin in December 2012 and be completed in December 2013. The general resettlement budget of the Project is 140,774,800 yuan, accounting for 10.56% of the gross investment of the Project.

B. Resettlement impacts The main resettlement impacts of the Project are permanent LA, occupation of state-owned land, demolition of rural residential houses and temporary land occupation. 67 households with 185 persons in 5 villages/communities in five townships/sub-districts of Jiangdong, Jiangbei and Yinzhou Districts will be affected by the Project. 170.6 mu of collective land will be acquired permanently for the Project, affecting 61 households with 165 persons; 42 mu of land will be occupied temporarily, affecting 30 households with 72 persons temporarily; residential houses with a total area of 5,360 m2 will be demolished, affecting 25 households with 60 persons (in which 19 households with 38 persons will also be affected by LA); unlicensed properties with a total area of 55,300 m2 will be demolished, affecting five lessee enterprises, affecting 370 workers. See Table 1.

Table 1 Summary of Affected Population

building lessees Population 370 0 0 0 0 370 HHs 5 0 0 8 11 24 Total Population 370 0 0 23 31 424 Temporary land HHs 0 0 0 30 0 30 occupation Population 0 0 0 72 0 72

C. Legal framework and policies C.1 Laws, Regulations and Policies Applicable to Resettlement The resettlement policies of the Project have been developed in accordance with the laws and regulations of the PRC, and the Bank’s applicable policy.

C.2 Compensation rates  Collective land acquisition The district governments of Ningbo Municipality have fixed rational compensation rates in accordance with the Land Administration Law of the PRC, the Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition, and the Measures of Zhejiang Province for the Implementation of the Land Administration Law of the PRC. However, since Ningbo’s economy is developing rapidly and different districts vary greatly, compensation rates also very greatly from district to district. Compensation fees for LA include location-based composite land price for LA (land compensation fees and resettlement subsidies), and compensation fees for ground attachments and young crops. The land occupied for the Project is cultivated land mainly. According to the compensation policies of Ningbo, young crops shall be compensated for at different rates. The cultivated land acquired for the Project is used to grow paddy rice and soybean mainly, for which the compensation rate of Ningbo is 800-1,000 yuan/mu; in the Project, young crops will be compensated for at 1,000 yuan/mu. The Jiangdong CTS will occupy cultivated land, and its compensation rate is based mainly on Article 2 of the Notice on Adjusting Location-based Composite Land Prices for Land Acquisition in the Sanjiang Area (NMG [2009] No.24), as shown in Table 2.

Table 2 Compensation Rates for LA of Jiangdong District

Table 3 Compensation Rates for LA of Jiangbei District

Location-based composite Young crop Range land price for acquisition of compensation cultivated land fees (yuan/mu) Other areas than Tier-1 areas 55,000 yuan/mu 1000

According to the Notice on the Republication of Location-based Composite Land Prices for Land Acquisition (YDG [2012] No.36), Xuanpei Village, Dongqiao Town and Dingqiao Village, Jiangshan Town, Yinzhou District affected by LA belong to Tier-3 areas, and the compensation rate is 65,000 yuan/mu. See Table 4.

Table 4 Location-based Composite Land Prices for LA in Yinzhou District

Compensation rate for Young crop range cultivated land and compensation fees garden land (yuan/mu) Tier-3 areas 65000 1000

 Compensation for temporary land occupation In the Project, temporary land occupation results mainly from the construction of the sewer line, where 42 mu of land will be occupied temporarily. According to the state and provincial regulations on temporary land occupation, the temporarily occupied land will be compensated for based on the actual period of occupation and at average annual output value. The temporarily occupied land will be restored immediately after construction. Through consultation with the affected village, the temporarily occupied collective land will be compensated for at 1,200 yuan/mu. According to the construction design, the occupation period will be one month.  Compensation rates for rural residential houses NMG have developed the Regulations of Ningbo Municipality for the Demolition of Houses on Acquired Collective Land (Announcement No.41 of the Standing Committee of the Ningbo Municipal People’s Congress), the Rules for the Implementation of the Regulations of Ningbo Municipality for the Demolition of Houses on Acquired Collective Land (Decree No.141 of NMG), the Notice on the Determination and Disclosure of Compensation Rates for the Demolition of Houses on Acquired Collective Land (NPM [2007] No.117), etc., and the district governments have developed detailed implementation rules in accordance with the Land Administration Law of the PRC and the Regulations on the Implementation of the Land Administration Law of the PRC. For example, Some Provisions of Yinzhou District on the Demolition of Houses on Acquired Collective Land (April 17, 2010) have regulated and directed the acquisition of collective land and compensation therefor in Ningbo effectively.

Table 5 Compensation Rates for Rural Residential Houses

Compensation rate Compensation rate in the Project Type of under prevailing Structural type Jiangbei District Yinzhou District impact policies of Ningbo 2 2 2 (yuan/m ) (yuan/m ) (yuan/m ) House Masonry Grade 1 950 5500 6000 compensation concrete Grade 2 880

Grade 3 720 Masonry timber 550 5000 5500 Earth timber 450 4000 5000 700 yuan 700 yuan Moving subsidy 700 yuan /household /household /household Other Building area of Building area of Building area of compensation Transition subsidy demolished house demolished house demolished house *10 yuan/m2 *10 yuan/m2 *10 yuan/m2

C.3 Entitlement Matrix The entitlement matrix has been established in accordance with the applicable policies in this chapter, as shown in Table 6.

Table 6 Entitlement Matrix

Type of Degree of APs Compensation and resettlement policy Measures impact impact Permanent 170.6 mu 61 1) All land compensation fees and Measures for land acquisition (28.6 mu in households compensation fees for collective properties compensation allocation, of collective Jiangdong with 165 will be paid to village or community land reallocation and land District, 25.1 persons in 5 collectives (see Tables 5-1~5-3). production investment mu in Jiangbei villages/ 2) Resettlement subsidies will be paid to will be determined by the District, 116.9 communities the AHs (see Tables 5-1~5-3). village meeting. mu in Yinzhou in 5 3) Compensation fees for ground Training will be approved District) townships/ attachments and young crops will be paid and supervised by the sub-districts to their proprietors. town government. Demolition 5360 m2 25 1) House compensation fees: at Each AH will choose a of rural households replacement cost for different structural resettlement mode itself, residential with 60 types and quality levels (see Table 5-4) and housing information houses persons 2) The APs will receive moving and will be provided by transition subsidies (see Table 5-4) township governments / 3) Property swap sub-district offices. Demolition 55,300 m2 Sangjia 1) The proprietor will receive cash The township of Community compensation at 1,200 yuan/m2. governments / unlicensed 2) The lessees will be notified 6 months in sub-district offices will properties advance and receive an equipment provide lease and on collective moving subsidy. employment information. land 3) The employees of the lessees will be notified of relocation 3 months in advance. 4) The lessees will receive lease information and enjoy priority. 5) The employees of the lessees will have priority in being employed by reopened enterprises. Vulnerable / 90 persons 1) They will have priority in being The women’s association groups employed for unskilled jobs, of which 30% will provide acceptable will be first made available to women. education to women; 2) They will have priority in receiving free women will receive equal skills training. 1,200 men-times will be pay for equal work like trained, including not less than 600 men do; no child labor men-times for women (50%). should be employed. 3) They will obtain relevant information and participate in consultation during resettlement. 4) The house compensation agreement will be singed by the couple. Ground 8 types, Proprietors Affected special facilities will be attachments including reconstructed by the owner according to

telegraph the original size, standard and function poles, trees (see Table 5-5). Grievances / All APs Free; all costs so reasonably incurred will and appeals be disbursed from the contingencies

D. Organizational structure for resettlement To ensure successful resettlement as desired, a systematic organizational structure must be established during project implementation in order to plan, coordinate and monitor resettlement activities. Since resettlement is a very comprehensive task that requires the assistance and cooperation of different departments, NMG and the owner have established necessary agencies to in order to plan, coordinate and monitor resettlement activities. The agencies responsible for LA, HD and resettlement in the Project include: [1] Project Leading Group [2] Ningbo PMO [3] Project owner [4] Ningbo Municipal Land and Resources Bureau [5] District land and resources bureaus [6] Township/sub-district resettlement offices [7] Village/community committees [8] External M&E agency

E. Grievances and appeals Since public participation is encouraged during the preparation and implementation of the RP, no substantial dispute will arise. However, unforeseeable circumstances may arise during this process. In order to address issues effectively, and ensure the successful implementation of project construction and land acquisition, a transparent and effective grievance redress mechanism has been established. The basic grievance redress system is as follows: Stage 1: If any right of an AP is infringed on in respect of LA or resettlement, he/she may report to the village or community committee, and either the AP or the committee may solve the appeal in consultation with the township government within two weeks. Stage 2: If the grievant is dissatisfied with the reply of Stage 1, he/she may file an appeal with district land and resources bureau within one month of receipt of the above reply, which shall make a disposition within two weeks. Stage 3: If the grievant is still dissatisfied with the disposition of Stage 2, he/she may file an appeal with the Ningbo Municipal Land and Resources Bureau within one month of receipt of the above disposition, which shall give a reply within four weeks. Stage 4: If the grievant is still dissatisfied with the disposition of Stage 3, he/she may file an action in a civil court in accordance with the Civil Procedure Law of the PRC. All agencies will accept grievances and appeals from the APs for free, and costs so reasonably incurred will be disbursed from the contingencies. At the whole construction stage, the above procedure will remain effective so that the APs can use it to solve relevant issues. The above appeal channel will be disclosed to the APs via

the RIB and mass media. The APs may file an appeal about any aspect of resettlement, including compensation rates, etc. The above appeal channel will be notified to the APs at a meeting or otherwise, so that the APs are fully aware of their right of appeal. Mass media will be utilized for publicity, and opinions and advice about resettlement will be compiled into messages for study and disposition by the resettlement agencies. All agencies will accept grievances and appeals from the APs for free, and costs so reasonably incurred will be disbursed from contingency costs.

Table 7 Agencies and Staff Accepting Grievances and Appeals from the APs

F Resettlement Implementation Schedule In order that the resettlement schedule links up the construction schedule of the Project, land acquisition will begin in June 2013 and end in June 2015. The basic principles for resettlement implementation are as follows: (1) LA, HD and resettlement should be completed at least one month prior to the commencement of construction, and the starting time will be determined as necessary; (2) During resettlement, the APs shall have opportunities to participate in the Project. Before the commencement of construction, the range of LA will be disclosed, the RIB distributed and public participation activities conducted properly; and (3) All compensation fees will be paid to the affected proprietors directly and fully within 3 months of approval of the resettlement and compensation program. No organization or individual should use compensation fees on their behalf, nor should compensation fees be discounted for any reason. The general resettlement schedule of the Project has been drafted based on the progress of project construction, LA and HD, and resettlement preparation and implementation. The exact implementation schedule may be adjusted due to deviations in overall project progress. See Table 8.

Table 8 Resettlement Implementation Schedule

Agencies No. Task Target Time Remarks responsible Village-level land 5 villages/ Land & resources 3.1 Jun. 2013 compensation agreement communities bureau Household land compensation 61 3.2 Village committees Jun. 30, 2013 agreement households Compensation agreement for 25 Land & resources Jun. – Jul. 3.3 house demolition households bureau 2013 4 Implementation of livelihood restoration measures Distribution of land 5 villages/ Townships & May – Jul. 4.1 compensation fees to AHs communities villages 2013 Implementation of village-level 5 villages/ Jun. – Dec. 4.2 Village collectives income restoration programs communities 2013 Implementation of training Labor and social Apr. 2013 – 4.3 61 AHs program security bureau Aug. 2014 5 Capacity building Training of staff of NESO, and Feb. – Apr. 5.1 15 persons Bank the land and resources bureau 2013 Training of county, township PMO, land and May – Jun. 5.2 400 persons and village officials resources bureau 2013 6 M&E As per the External M&E 6.1 Baseline survey May 30, 2013 RP agency Establishment of internal M&E As per the 6.2 PMO and IA May 30, 2013 mechanism RP Appointing an external M&E 6.3 One PMO May 30, 2013 agency Quarterly From Oct. 31, 6.4 Internal monitoring reporting PMO and IA report 2013 st Semiannual External M&E Dec. 2013 1 report 6.5 External monitoring reporting report agency Aug. 2014 2nd report st Annual External M&E Dec. 2014 1 report 6.6 External evaluation reporting report agency Aug. 2015 2nd report

6.7 Post-evaluation report One report PMO Dec. 2015