Updated Resettlement Plan People's Republic of China: Henan

Updated Resettlement Plan

December 2017

People’s Republic of China: Henan Hebi Qihe River Environmental Improvement and Ecological Conservation Project

Prepared by Qi County Government (QCG), Xun County Government (XCG) and Qi County Project Management Office (PMO) and Xun County PMO for the Asian Development Bank.

CURRENCY EQUIVALENTS (as of 15 December 2017)

Currency unit – Chinese Yuan (CNY) CNY1.00 = $6.6031 $1.00 = CNY0.1514

ABBREVIATIONS AAOV – Average Annual Output Value ADB – Asian Development Bank AH – Affected Households AP – Affected Person DMS – Detailed Measurement Survey FGD – Focus Group Discussion GRM – Grievance Redress Mechanism HD – House Demolition HCG – Hebi City Government HPRSAD – Hebi Project Resettlement and Social Affairs Department IOL – Inventory of Loss LA – Land Acquisition LEF – Land Expropriated Farmer M & E – Monitoring and Evaluation MLS – Minimum Living Security MSW – City Solid Waste PMO – Project Management Office QCG – Qi County Government QCAO – Qi County Administration Office QCLRMB – Qi County Land Resource Management Bureau QCNCO – Qi County New Community Office RRC – People’s Republic of China RIB – Resettlement Information Booklet ROW – Right-of-way RP – Resettlement Plan SES – Socio-economic Survey TA – Technical Assistance XCG – Xun County Government XCAO – Xun County Administration Office XCLRMB – Xun County Land Resource Management Bureau

WEIGHTS AND MEASURES 1 hectare – 15 mu hectare – Ha kilometer – Km meter – m kilogram – Kg

NOTES (i) The fiscal year of the Government of the People’s Republic of China and its agencies ends on 31 December.

(ii) In this report, "$" refers to US dollars.

This resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section of this website.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Updated Resettlement Plan ______

Loan 3401-PRC: Henan Hebi Qihe River Environmental Improvement and Ecological Conservation Project

——Qihe River Mainstream Watercourse Improvement Subproject in Qi County

Prepared by Qi County Government (QCG), Xun County Government (XCG)

and Qi County Project Management Office (PMO) and Xun County PMO for the Asian Development Bank (ADB) Financed Project

December 2017

Introduction of RP Updating

1. Background The Henan Hebi Qihe River Environmental Improvement and Ecological Conservation Project consists of 8 components in 4 categories, which are (i) Qi River Upstream Ecological Protection, (ii) Qi River Wetland Reservation and Restoration, (iii) Qi River main stream Watercourse Improvement in Qi County, (iv) Four tributary watercourse improvement in Qi County, (v) Five Canal watercourse improvement in Qibin District, (vi) Qibin District wastewater management, (vii) Qi County wastewater and solid waste management, (viii) institutional capacity building. The Project has an implementation period of 5 years, from 2017 to 2021. Through preliminary identification, the Project belongs to Category A in involuntary resettlement. Therefore, HCG has prepared resettlement plan (RP) for each subproject that complies with ADB’s Safeguard Policy Statement (2009), and the applicable laws, regulations and policies of the PRC, Henan Province and Hebi City with the assistance of the ADB technical assistance experts. This RP is for the 3rd subproject, namely the Qihe River Mainstream Watercourse Improvement Subproject in Qi County. PMOs of Qi County and Xun County organized the detailed measurement survey (DMS) based on preliminary design report (PDR) and updated this RP with the assistance of consultants. 2. Resettlement Impacts changes Because of adjustments on construction contents of the subproject, i.e. the protection length of dangerous section increases 1209 m compared with that in FSR, the embankment top flood-control road is designed with optimization after widening the embankments on both sides, where the embankment protection area is 3m wide outside slope toe of upriver face and 5 m wide outside slope toe of downriver face, so the LAR impacts changes to some extent during DMS. Besides, physical quantity is measured more meticulously during DMS. In the preliminary design phase, for the project scope and scale are adjusted, the impacts of land acquisition have been updated correspondingly. In September and October 2017, the PIUs, local government departments and LDI established a DMS group, reexamined and disclosed the end results of DMS, and corrected minor errors of DMS. Xun County Water Resources Bureau and Qi County Water Resources Bureau both confirmed the results of DMS based on PDR. See details in table 1. Table 1: Table of Impacts of LAR and Affected persons in FSR and PDR

Item FSR PDR D-ValuePDR - FSR

Total 712.8 426.84 -285.96 Permanent land occupation Collective Land 166.7 230.64 63.94 mu State-owned Land 546.1 196.2 -349.9 1. Permanently Permanently affected AHs 25 246 221 affected population APs 123 1136 1013

Significantly affected AHs 1 16 15

population APs 5 74 69

2. Temporary Temporary land usemu Collective Land 90.36 385 294.64

impacts Temporarily affected AHs 64 109 45

population APs 278 521 243

land occupationmu Total 803.16 811.84 8.68 3. Total AHs 89 355 266 Affected affected population APs 401 1657 1256

Note: AH=affected household, AP=affected person

3. Compensation rates adjustments In 2016, Henan Provincial Government issued the Notification of The People`s Government of Henan Province on Adjustment of Comprehensive Land Price Standard of Land Acquisition Areas in Henan Province (Henan Government (2016) No.48), then the compensation rates of land acquisition in project area have been increased to a higher level. It will bring more benefits to the livelihood rehabilitation of households and persons affected by the land acquisition of the Project. Table 2 shows the difference between original and latest compensation rates of LA in project area. Table 2: Compensation rates comparison of land acquisition in Original RP and Updated RP

Original RP Updated RP

Location-based Location-based Town Village land price County Town Village land price County (yuan/mu) (yuan/mu)

Nanzhifang, Peiying, Nanzhifang, Weilizhuang, 31500 Jun 38000 Weixian Weilizhuang Weixian Qiangongtang, County Xun County Hougongtang

Weixian 33000 Weixian 39000

Xinzhen Qianfangcheng 30000 / / / /

Woluan, Dalizhuang, Doujie, Huangwangmiao, Songjie, Fangzhai, Mawan, Huojie, Yan Kangzhuang, Qinjie, village, 31000 37500 Woluan, Xigang, Nandalizhuang,

Huangwangmiao, Qi Shinainaimiao, Xigang Xigang Qi County Hekou, Huojie County Kangzhuang, Zangkou

Yancun, Zangkou Fangzhai, Hekou, and Shinainaimiao 30000 37500 Doujie, Qinjie Villages

Sanjiaotun 33000 Xigang, Sanjiaotun 39500 4. Improvement of resettlement measures and updating of resettlement budget In the updated RP, the number of job and skill training opportunities for APs have been increased, the life care and subsidies for urban and rural vulnerable groups have been strengthened, and the Minimum Living Standards and basic pension standards for urban and rural residents have been renewed. In the resettlement budget section, the compensation standards of land acquisition has been updated，the temporary land occupation compensation and reclamation costs have been refined, and the forest vegetation recovery fee has been incorporated in, etc.. However, no entitlement

standard has been lowered in updated RP. All these compensation and resettlement measures have been disclosed and consulted with affected villages and households, who stated their satisfactions with these changes during the DMS and updating of this RP.

CURRENCY EQUIVALENTS Currency unit = Yuan (CNY) CNY 1 = $ 0.1613 $ 1 = CNY 6.2 1 hectare = 15 mu WEIGHTS AND MEASURES Km = kilometer Kg = kilogram Ha = hectare m = meter Abbreviations AAOV - Average Annual Output Value ADB - Asian Development Bank AH - Affected Households AP - Affected Person DMS - Detailed Measurement Survey FGD - Focus Group Discussion GRM - Grievance Redress Mechanism HD - House Demolition HCG - Hebi City Government HPRSAD - Hebi Project Resettlement and Social Affairs Department IOL - Inventory of Loss LA - Land Acquisition LEF - Land Expropriated Farmer M & E - Monitoring and Evaluation MLS - Minimum Living Security MSW - City Solid Waste PMO - Project Management Office QCG - Qi County Government QCAO - Qi County Administration Office QCLRMB - Qi County Land Resource Management Bureau QCNCO - Qi County New Community Office RRC - People’s Republic of China RIB - Resettlement Information Booklet ROW - Right-of-way RP - Resettlement Plan SES - Socio-economic Survey TA - Technical Assistance XCG - Xun County Government XCAO - Xun County Administration Office XCLRMB - Xun County Land Resource Management Bureau

DEFINITION OF TERMS

Affected persons -Those who are physically displaced (relocation, loss of residential land, Households or loss of shelter) and/or economically displaced (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas.

Cut-off date -It refers to the date when the results of the census and inventory of losses were for eligibility presented to the affected households. Any households who built after the Project’s cut-off date will not be eligible for assistance.

Entitlement -Refers to a range of measures comprising compensation, income restoration support, transfer assistance, income substitution, relocation support, etc. which are due to the AHs, depending on the type and severity of their losses, to restore their economic and social base.

Grievance redress mechanism- A mechanism to receive and facilitate the resolution of affected persons’ concerns redress and grievances about physical and economic displacement and other project mechanism impacts, paying particular attention to the impacts on vulnerable groups.

Income restoration- This is the re-establishment of sources of income and livelihood of the program affected households. It is a program designed with various activities that aim to support affected persons to recover their income / livelihood to pre-project levels. The program is designed to address the specific needs of the affected persons based on the socio-economic survey and training need assessment.

Meaningful consultation- A process that (i) begins early in the project preparation stage and is carried out on consultation an ongoing basis throughout the project cycle; (ii) provides timely disclosure of relevant and adequate information that is understandable and readily accessible to affected people; (iii) is undertaken in an atmosphere free of intimidation or coercion; (iv) is gender inclusive and responsive, and tailored to the needs of disadvantaged and vulnerable groups; and (v) enables the incorporation of all relevant views of affected people and other stakeholders into decision making, such as project design, mitigation measures, the sharing of development benefits and opportunities, and implementation issues.

Vulnerable groups- Individuals and groups who may be differentially or disproportionately affected by the project because of their disadvantaged or vulnerable status. Vulnerable groups are those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples, and those without legal title to land.

Executive Summary 1. Introduction to the Subproject 1) The Henan Hebi Qihe River Environmental Improvement and Ecological Conservation Project consists of 8 components in 4 categories, which are (i) Qi River Upstream Ecological Protection, (ii) Qi River Wetland Reservation and Restoration, (iii) Qi River main stream Watercourse Improvement in Qi County, (iv) Four tributary watercourse improvement in Qi County, (v) Five Canal watercourse improvement in Qibin District, (vi) Qibin District wastewater management, (vii) Qi County wastewater and solid waste management, (viii) institutional capacity building.. The Project has an implementation period of 5 years, from 2017 to 2021.The Qi River main stream Watercourse Improvement Subproject is the 3rd subproject of the Project. 2) The river length governed by the project is 21 km, the flood control standard of the river is determined to be an occurrence per 20 years, according to the cultivated area inside protective zone on both sides of Qi County section of Qihe River and the number of residents. And the embankment engineering grade is IV grade, the grade of main construction is four and the grade of subordinate construction is five. The overall length of embankment top flood-control road is 40.218 km, the roadbed adopts the 200 mm-thick cement-stabilized macadam base and 70 mm-thick bituminous concrete is laid on road surface. The Subproject will be constructed from September 2018 to September 2021. 3) The land acquisition (LA), house demolition (HD), compensation and resettlement work of the Subproject will begin in February 2018 and be completed in August 2018. The estimated resettlement budget is 23.8344 million yuan (prices in November 2017). 4) This RP has been updated based on the detailed design of the Subproject and the results of the detailed measurement survey (DMS), and it will be submitted to ADB for review and approval before the commencement of resettlement and prior to civil works contract awards. 2. Impacts of the Subproject 5) The Subproject will affect 22 villages in 3 towns in two counties, including 6 villages in Weixian Town and one village in Xinzhen Town, Xun County; and 15 villages in Xigang Town, Qi County, and the affected population is distributed in 19 villages in 3 towns. 426.84 mu of land will be occupied permanently for the Subproject, including 230.64 mu of collective land and 196.2 mu of state-owned land. 385 mu of land will be occupied temporarily. The Subproject will affect 246 households with 1,136 persons permanently and 109 households with 521 persons temporarily, totaling 355 households with 1,657 persons. The Subproject does not involve any HD. See Table 1.

Table 1 Summary of Resettlement Impacts Item Total

Total 426.84 Permanently occupied land (mu) Collective land 230.64 State-owned land 196.2 1.Permanent HHs 246 impact Permanently affected population Population 1136 HHs 16 In which significantly affected Population 74 Temporarily occupied land (mu) Collective land 385 2.Temporary HHs 109 impact Temporarily affected population Population 521 Land Use(mu) total 811.84 3.Total Impact HHs 355 Affected population Population 1657

3. Policy framework and entitlements 6) This updated RP is based on the Land Administration Law of the PRC (2004), Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28), Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (MLR [2004] No.238), the applicable policies of Henan Province and Hebi City, and ADB’s Safeguard Policy Statement (2009). According to the above policies, and in consultation with local governments and affected persons (APs), the resettlement principles of the Subproject are: (1) Involuntary resettlement should be avoided where feasible; (2) The APs are granted compensation and rights that can at least maintain or even improve their livelihoods in the absence of the Subproject; (3) The APs are given compensation and assistance in resettlement whether legal title is available or not; (4) If the land available to everyone is insufficient to maintain his/her livelihood, replacement in cash or in kind and other income-generating activities shall be provided for the lost land; (5) The APs fully understand their entitlements, the method and standard of compensation, the livelihood and income restoration program, and the schedule, and participate in the implementation of the RP; (6) The executing agency and an independent agency / third party shall monitor the compensation, relocation and resettlement operations; (7) The vulnerable groups shall be provided special assistance or treatment so that they lead a better life, and all APs shall have an opportunity to benefit from the Subproject; two members of each displaced household (DH) will receive skills training, including at least one woman; (8) The RP is consistent with the master plans of the affected city (district, county); and (9) The resettlement costs are sufficient to cover all affected aspects. 7) No entitlement standard has been lowered in updated RP.

4. Resettlement strategy 8) The compensation for the land permanently acquired for the Subproject is based on location-based composite land price (excluding young crop compensation). In the subproject area, the LA compensation rate for collective land in Weixian Village, Weixian Town is 39,000 yuan/mu; and 38,000 yuan/mu in Nanzhifang, Peiying, Weilizhuang, Qiangongtang, Hougongtang Villages; 39,500 yuan/mu in Xigang, Sanjiaotun,Xigang Town; 37,500 yuan/mu in Woluan, Huangwangmiao, Mawan, Huojie, Yan village, Nandalizhuang, Shinainaimiao, Kangzhuang, Zangkou, Fangzhai, Hekou, Doujie, Qinjie Villages, respectively. Compensation will be paid directly to the AHs. In addition to cash compensation, the households affected by LA will be provided with diversified livelihood restoration measures, including agricultural development, employment, skills training and endowment insurance. 9) According to the arrangement of construction progress, the time limit of temporary land occupation is one year, and another half a year is taken into account as the reclamation period. Therefore, the compensation of temporary occupation of farmland depends on the production value per mu per year and a half. The production value per mu of dry land is 2,000 yuan per mu per year calculated by the crop compensation fee regulated in the Notification of The People`s Government of Hebi on Adjustment of Compensation Standard of Ground Attachment and Crop on National Construction and Acquiring Land of Hebi City (He Government (2012) No.11), and the production value per mu of unused land is half of that of the dry land, namely, 1,000 yuan per mu per year. The subsidy on cultivated land`s crop reduction loss for temporary land occupation is calculated by the production value per mu per half a year. According to the Notification of The People`s Government of Henan Province on Announcement of Canceling Stop Acquisition and Adjusting Relative Charging Items (Henan Government (2008) No.52), the reclamation fee of temporary land

occupation in the project is 3,000 yuan per mu.

10) The affected special facilities will be reconstructed by the owner to the original size, standard and function, or by their proprietors after compensation. Other ground attachments will be compensated for at specified rates.

5. Organizational setup 11) The Qi and Xun governments/County Water Resources Bureaus are the implementing agencies, on behalf of QCG and XCG. The Qi and Xun PMOs are responsible for the management and coordination of the Subproject. The Qi and Xun County Land and Resources Bureau are responsible for RP implementation together with the affected town governments and village/community committees.

6. Public participation and information disclosure 12) All APs (with 50% being women) have been informed of the key points of this RP by various means and involved in the Subproject, such as meeting, interview, FGD, public participation meeting and community consultation, and their opinions have been well incorporated into this RP. The Resettlement Information Booklet (RIB) will be distributed to the APs or groups in January 2018, and the updated RP will be published on ADB’s website in January 2018.

7. Grievance redress 13) 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 transparently. Grievances about the Subproject may be from LA and HD. Correspondingly, the Hebi PMO, Hebi Project Resettlement and Social Affairs Department (HPRSAD), Qi and Xun PMOs, and the affected town governments and village/community committees will coordinate and handle grievances and appeals arising from resettlement. The APs may file appeals about any aspect of resettlement, including compensation rates. All agencies will accept grievances and appeals from the APs for free, and costs so reasonably incurred will be disbursed from contingencies.

8. Resettlement budget 14) All costs incurred during LA and resettlement will be included in the general budget of the Subproject. Based on prices in November 2017, the resettlement budget of the Subproject is 23.8344 million yuan, accounting for 17.42% of the gross investment in the Subproject, including basic resettlement costs of 12.8366 million yuan or 53.86% of the resettlement budget; other costs (including planning and design costs, training costs, LA taxes, supporting fund for vulnerable groups, etc.) of 9.0723 million yuan or 38.06% of the resettlement budget; and contingencies of 1.9255 million yuan or 8.08% of the resettlement budget.

9. Monitoring and evaluation (M&E) 15) In order to ensure the successful implementation of this RP, resettlement implementation will be subject to internal and external monitoring. Internal monitoring will be conducted by the Hebi PMO, HPRSAD, Qi and Xun PMOs, and other district authorities (e.g., land and resources bureau, QCNCO, labor and social security bureau), and an internal monitoring report will be submitted to ADB semiannually. The Hebi PMO will appoint an independent agency to conduct external M&E and submit M&E reports semiannually, and M&E costs will be included in the resettlement budget.

TABLE OF CONTENTS

1 OVERVIEW OF THE SUBPROJECT ...... 1

1.1 BACKGROUND ...... 1 1.2 COMPONENTS AND RESETTLEMENT IMPACTS ...... 1 1.3 MEASURES TO REDUCE RESETTLEMENT ...... 6 1.3.1 Design Stage ...... 6 1.3.2 Resettlement Implementation Stage ...... 7 1.3.3 Construction Stage ...... 7 1.4 ESTIMATED RESETTLEMENT BUDGET AND IMPLEMENTATION PLAN ...... 7

2 IMPACTS OF THE SUBPROJECT ...... 8

2.1 RANGE OF LA IMPACT SURVEY ...... 8 2.2 PERMANENT ACQUISITION OF COLLECTIVE LAND ...... 9 2.2.1 Amount and Affected Population ...... 9 2.2.2 Cultivated Land Losses ...... 10 2.2.3 Income Losses ...... 15 2.3 PERMANENT OCCUPATION OF STATE-OWNED LAND ...... 16 2.4 TEMPORARY LAND OCCUPATION ...... 17 2.5 AFFECTED GROUND ATTACHMENTS ...... 17 2.6 AFFECTED POPULATION ...... 19 2.6.1 Summary ...... 19 2.6.2 Affected Vulnerable Groups...... 20 2.6.3 Affected Minority Population ...... 20 2.6.4 Gender Impacts ...... 20

3 SOCIOECONOMIC PROFILE ...... 21

3.1 SOCIOECONOMIC PROFILE OF THE SUBPROJECT AREA ...... 21 3.1.1 Hebi City ...... 21 3.1.2 Affected Counties ...... 21 3.1.3 Affected Towns ...... 22 3.1.4 Affected Villages ...... 22 3.2 SOCIOECONOMIC PROFILE OF THE AFFECTED POPULATION ...... 22 3.2.1 Economic Conditions of the AHs ...... 22 3.2.2 Expected Resettlement Modes ...... 25 3.3 GENDER ANALYSIS ...... 25

4 LEGAL FRAMEWORK AND POLICIES ...... 27

4.1 LAWS, REGULATIONS AND POLICIES APPLICABLE TO RESETTLEMENT ...... 27 4.2 ABSTRACT OF THE ADB POLICY ...... 28 4.3 KEY PROVISIONS OF PRC LAWS, REGULATIONS AND POLICIES ...... 30

4.3.1 Abstract of applicable state laws and regulations ...... 30 4.3.2 Abstract of applicable provincial regulations and policies ...... 32 4.4 MAIN DIFFERENCES BETWEEN THE ADB POLICY AND PRC LAWS ...... 33 4.5 CUT-OFF DATE ...... 34 4.6 COMPENSATION RATES ...... 34 4.6.1 Permanent LA ...... 34 4.6.2 Temporary Land Occupation ...... 35 4.6.3 Young Crops and Attachments ...... 35 4.6.4 Tax and Fee Rates ...... 36 4.7 ENTITLEMENT MATRIX ...... 37

5 RESETTLEMENT AND INCOME RESTORATION ...... 40

5.1 OBJECTIVES AND PRINCIPLES OF RESETTLEMENT ...... 40 5.1.1 Objectives ...... 40 5.1.2 Principles ...... 40 5.2 INCOME RESTORATION PROGRAM FOR HOUSEHOLDS AFFECTED BY LA...... 40 5.2.1 Cash Compensation and Distribution ...... 40 5.2.2 Agricultural Development ...... 40 5.2.3 Employment ...... 41 5.2.4 Social Security ...... 42 5.2.5 Skills Training ...... 43 5.3 WOMEN’S DEVELOPMENT MEASURES ...... 44 5.4 SUPPORTING MEASURES FOR VULNERABLE GROUPS ...... 44 5.5 RESTORATION PROGRAM FOR GROUND ATTACHMENTS ...... 45

6 ORGANIZATIONAL STRUCTURE ...... 46

6.1 RESETTLEMENT IMPLEMENTATION AND MANAGEMENT AGENCIES ...... 46 6.1.1 Organizational Setup ...... 46 6.1.2 Organizational Responsibilities ...... 46 6.1.3 Organizational Chart ...... 48 6.2 STAFFING, EQUIPMENT AND TRAINING ...... 48 6.2.1 Staffing ...... 48 6.2.2 Equipment ...... 49 6.2.3 Organizational Training Program ...... 49

7 PUBLIC PARTICIPATION AND GRIEVANCE REDRESS ...... 51

7.1 PUBLIC PARTICIPATION ...... 51 7.1.1 Preparation Stage ...... 51 7.1.2 Implementation Stage ...... 52 7.2 GRIEVANCE REDRESS ...... 52 7.2.1 Modes of Collection of Grievances and Appeals ...... 52

7.2.2 Grievance Redress Procedure ...... 53 7.2.3 Principles for Grievance Redress...... 53 7.2.4 Scope and Modes of Reply ...... 53 7.2.5 Recording and Feedback of Grievances and Appeals ...... 53 7.2.6 Contact Information for Grievance Redress ...... 53

8 RESETTLEMENT BUDGET ...... 56

8.1 RESETTLEMENT BUDGET ...... 56 8.2 RESETTLEMENT INVESTMENT SCHEDULE AND FUNDING SOURCES ...... 57 8.3 DISBURSEMENT AND MANAGEMENT OF RESETTLEMENT FUNDS ...... 57 8.3.1 Disbursement of Resettlement Funds ...... 57 8.3.2 Management of Resettlement Funds ...... 58

9 RESETTLEMENT IMPLEMENTATION SCHEDULE ...... 59

9.1 PRINCIPLES FOR RESETTLEMENT IMPLEMENTATION ...... 59 9.2 RESETTLEMENT IMPLEMENTATION SCHEDULE ...... 59

10 MONITORING & EVALUATION...... 61

10.1 INTERNAL MONITORING...... 61 10.2 EXTERNAL MONITORING ...... 61 10.2.1 Scope and Methods ...... 61 10.2.2 Reporting ...... 62 10.3 POST-EVALUATION...... 62

APPENDIX 1: RESETTLEMENT INFORMATION BOOKLET ...... 63

APPENDIX 2: STATEMENT ON LAND ACQUISITION AND RESETTLEMENT IMPACTS OF QIHE RIVER MAINSTREAM WATERCOURSE IMPROVEMENT SUBPROJECT IN QI COUNTY FINANCED BY ADB ...... 70

APPENDIX 3: FIELDWORK PHOTOS ...... 72

List of Tables Table 1-1 Summary of Resettlement Impacts by Components under the overall Project ...... 3 Table 1-2 Summary of Resettlement Impacts of the Subproject ...... 5 Table 1-3 Measures to Reduce Resettlement at the Preparation Stage ...... 6 Table 2-1 Comparison of the scope of the Subproject's permanent LAR ...... 8 Table 2-2 Summary of Acquired Collective Land ...... 9 Table 2-3 Summary of Acquired Collective Land and Income Losses at village level ...... 12 Table 2-4 Land Loss Rates at HH Level ...... 15 Table 2-5 Income Loss Rates at HH Level ...... 16 Table 2-6 Summary of Permanently Occupied State-owned Land ...... 16 Table 2-7 Summary of Temporarily Occupied Land ...... 17 Table 2-8 Summary of Affected Ground Attachments ...... 18 Table 2-9 Summary of Affected Population ...... 19 Table 3-1 Socioeconomic Profile of Hebi City (2016) ...... 21 Table 3-2 Socioeconomic Profile of Qi County (2016) ...... 21 Table 3-3 Socioeconomic Profile of Xun County (2016) ...... 22 Table 3-4 Socioeconomic Profile of the Affected Towns ...... 22 Table 3-6 Demographics of the Population ...... 23 Table 3-5 Socioeconomic Profile of the Affected Villages ...... 24 Table 3-7 Household Income and Expenditure ...... 25 Table 3-10 Expected Resettlement Modes of the Households Affected by LA ...... 25 Table 3-11 Gender Analysis ...... 26 Table 4-1 Principles for Resettlement ...... 29 Table 4-2 List of Location-based Composite Land Prices ...... 34 Table 4-3 Compensation Rates for Temporary Land Occupation ...... 35 Table 4-4 Compensation Rates for Young Crops ...... 35 Table 4-5 Compensation Rates for Ground Attachments ...... 36 Table 4-6 Tax and Fee Rates on LA ...... 36 Table 4-7 Entitlement Matrix ...... 38 Table 5-1 Employment Program of the Subproject ...... 41 Table 5-2 Contribution and Pension Levels of Endowment Insurance for Urban and Rural Residents (yuan) ...... 42 Table 5-3 Summary of Local Training Programs ...... 43 Table 6-1 Staffing of Resettlement Agencies ...... 49 Table 6-2 Persons Chiefly Responsible of Resettlement Agencies ...... 49 Table 6-3 Operational Training Program of Resettlement Agencies ...... 49 Table 7-1 Public Participation Activities at the Preparation Stage ...... 51 Table 7-2 Public Participation Plan ...... 52 Table 7-3 Contact Information for Grievance Redress ...... 53 Table 8-1 Resettlement Budget ...... 56 Table 8-2 Resettlement Investment Plan ...... 57 Table 9-1 Resettlement Implementation Schedule ...... 59 Table 10-1 M&E Schedule ...... 62

1 Overview of the Subproject 1.1 Background 1. In order to fully rehabilitate the ecological environment and water quality of the Qihe River watershed, improve urban wastewater collection and treatment significantly, control water pollutants effectively, create a new economic development pattern with environmental protection in mind, and build a national wetland park and ecological demonstration base, HCG has applied for a loan of USD150 million with ADB for the Project. 2. The Project consists of 8 components in 4 categories, which are I) Qihe River watershed ecological conservation and rehabilitation:1) upper Qihe River ecological conservation; 2) Qihe River Wetland Conservation and Rehabilitation ; II) integrated management of the main and branch streams of the Qihe River: 3) Qihe River Mainstream Watercourse Improvement in Qi County ; 4) Four Tributary Watercourse Improvement in Qi County ; 5) Five Canal Watercourse Improvement in Qibin District ; III) Qihe River watershed environmental improvement: 6) Qibin District Wastewater Management Subproject ; 7) Qi County Wastewater and Solid Waste Management; IV) Institutional capacity building: 8) institutional capacity building, investigation and training. Components 11 and 8 do not involve resettlement, and 6 RPs have been prepared for the other components pursuant to ADB’s Safeguard Policy Statement (2009). See Figure 1-1 and Table 1-1. 3. The gross investment in the Project is 2.025 billion yuan (326.57 million USD), including a construction investment of 1.706 billion yuan (275.13 million USD), financing Charges During Implementation of 52.266 million yuan (8.43 million USD) and contingencies of 266.672 million yuan (43.01 million USD), including an ADB loan of USD150 million, equivalent to 930 million yuan, while the balance of 1.095 billion yuan is to be raised by HCG. 4. Through preliminary identification, the Project belongs to Category A in involuntary resettlement. Therefore, HCG has prepared an RP that complies with ADB’s Safeguard Policy Statement (2009), and the applicable laws, regulations and policies of the PRC, Henan Province and Hebi City with the assistance of the ADB technical assistance experts. 5. The Subproject is the 3rd subproject of the Project. The Qi and Xun governments/County Water Resources Bureaus are the implementing agencies, on behalf of QCG and XCG. The Qi and Xun PMOs are responsible for the management and coordination of the Subproject. The Qi and Xun County Land and Resources Bureau are responsible for RP implementation.

1.2 Components and Resettlement Impacts 6. The river length governed by the project is 21 km, the flood control standard of the river is determined to be an occurrence per 20 years, according to the cultivated area inside protective zone on both sides of Qi County section of Qihe River and the number of residents. And the embankment engineering grade is IV grade, the grade of main construction is four and the grade of subordinate construction is five. The overall length of embankment top flood-control road is 40.218 km, the roadbed adopts the 200 mm-thick cement-stabilized macadam base and 70 mm-thick bituminous concrete is laid on road surface. See Table 1-2, and Figures 1-2 and 1-3. 7. The subproject involves 22 villages in 3 towns of 2 counties, wherein there are 6 villages of Weixian Town and 1 village of Xin Town in Xun County, and 15 villages of Xigang Town in Qi County; there are a total of 19 villages of 3 towns where residents are affected. The permanent land occupation area is 426.84 mu, wherein there is 230.64 mu collectively-owned land and 196.2 mu state-owned land. The subproject will occupy 385 mu land temporarily. 246 households with 1,136 persons will be permanently affected and 109 households with 521 persons will be temporarily affected. In sum, 355 households and 1,657 will be affected by the subproject. No residential housing demolition will be involved in this subproject. There are some adjustments on construction contents of the subproject, such as the protection length of dangerous section increases by 1,209 m comparing with that in feasibility study stage, and the embankment top flood-control road is designed with optimization through widening the embankments on both sides, then the embankment protection that is 3m wide outside slope toe of upriver face and 5 m wide outside slope toe of downriver face is considered to be set; in addition, DMS quantity is improved to make it more meticulous during design stage, so the LAR impacts have been changed to some extent. See Table

1 The involved land for greening of barren hills are collective owned and partly contracted to households. Very low or even no income can be generated from these barren land. No land will be acquired and no natural resource will be additionally restricted to be used by households in project area.

1 1-3.

Figure 1-1 Location Map of the Subproject

2 Table 1-1 Summary of Resettlement Impacts by Components under the overall Project

2.1 Qihe River 1.2 Qihe River Mainstream 2.2 Four 3.2 Qi County 2.3 Five Canal 3.1 Qibin Wetland Watercourse Tributary Wastewater Watercourse District Item Conservation Improvement in Watercourse and Solid Total Improvement in Wastewater and Qi County (the Improvement in Waste Qibin District Management Rehabilitation RP for this Qi County Management subproject)

Collectively-owned land 285.75 230.64 220.53 442.9 0 58.35 1238.17 acquisition

Permanent land Rural land transfer 1959.28 0 0 0 0 0 1959.28 use (mu) State-owned land 455.72 196.2 0 292.39 0 5.4 949.28 occupation Total 2700.73 426.84 220.53 735.29 0 63.75 4147.14 by ADB financed project 0 0 0 5295.12 0 0 5295.12 House demolition by a previous and 0 0 0 0 0 13233.05 13233.05 (m2) domestic project3 Total 0 0 0 18528.17 0 0 18528.17 1.Permanent Collective-owne impacts AHs 44 246 148 126 0 23 587 d land acquisition APs 225 1136 594 579 0 98 2632

Rural land AHs 364 0 0 0 0 0 364 transfer Permanently APs 1812 0 0 0 0 0 1812 affected population State-owned AHs 113 0 0 0 0 0 113 land occupation APs 500 0 0 0 0 0 500 House AHs 0 0 0 104 0 0 10 demolition by ADB financed APs 0 0 0 55 0 0 55 Project

2 The land has been acquired by a previous and domestic project in 2011 with 113 HHs and 500 persons affected. 3 Urban Village Reconstruction Project financed by domestic fund and stated in March 2013 prior to ADB financed project. 4 Residential houses for 8 HHs and 2 small enterprises will be demolished, in which one household will be affected by LA and HD at the same time.

3 House AHs 0 0 0 94 0 0 94 demolition by a previous and APs 0 0 0 427 0 0 427 domestic project

Both LA and house AHs 0 0 0 1 0 0 1 demolition APs 0 0 0 5 0 0 5 AHs 521 246 148 229 0 23 1167 Sub-total APs 2537 1136 594 1056 0 98 5421

AHs 13 16 18 107 0 20 174 Significantly affected5 APs 66 74 76 482 0 81 779 Collectively-owned land 0 385 17.5 316 216.78 87.19 1022.47 Temporary land State-owned land 0 0 0 0 605.28 224.57 829.85 use (mu) 2. Total 0 385 17.5 316 822.06 311.76 1852.32 Temporary impacts Temporarily Temporary land AHs 0 109 32 40 163 216 560 affected occupation population APs 0 521 130 175 650 1020 2496 AHs 521 355 180 269 163 239 1727 3.Total Affected6 APs 2537 1657 724 1231 650 1118 7917 Note: 1.Note: Only the impacts of subproject 2.1 has been updated 2. Component (i) Qi River Upstream Ecological Protection and (viii) institutional capacity building will not involve in LAR.

5 Affected by HD or LA with income loss rate more than >10% (significance of impact is determined based on income loss instead of land loss because most Affected Households live in or around urban area and do not rely on land resources and agricultural incomes). 6 No ethnic minorities will be affected by LAR.

Figure 1-2 Location Map of Embankment Protection Works

Table 1-2 Summary of Resettlement Impacts of the Subproject Scope of Scope of construction(PDR) No. Component Resettlement impacts construction(FSR) There are 14 dangerous sections, 5 on 14 works, including 5 on left bank and 9 on right bank. The Embankment the left side and 9 on the 1 overall length of these sections is 5,289 LA protection right side, total length m (1,338 m on left bank and 3,951 m on 4.08km. right bank). The overall length is 40.218 km (21.4 State-owned land and km on left bank and 18.818 on right temporary land occupation. bank). The road width of left bank and Preliminary design stage right bank is 4.5 m and 5m, thickens and builds Flood Reconstruction of the respectively. embankment protection, 2 protection bank-top roads, 5m wide, constructs new flood-control roads total length 42km road on places with no embankment and connects the involved occupying land between top and bottom embankment.

5 Rubbish is collected from 20 villages such as Ma Village, Fang Stockaded 1,487 trash bins, 37 waste Village, Jiang Village, etc. There are transfer boxes, 37 waste Reserved vacant state-owned Solid waste 1487 240-liter trash cans, 37 rubbish 3 tricycles and 4 waste land will be used without collection transfer boxes, 37 3-grid transfer vehicles for 20 resettlement impact self-discharging tricycles and 4 10-grid villages in Qi County carriage-stevedoring rubbish transport vehicles.

Table 1-3 Impacts of LAR in FSR and PDR

Item FSR PDR D-ValuePDR - FSR

Total 712.8 426.84 -285.96 Permanent land use Collective Land 166.7 230.64 63.94 mu State-owned Land 546.1 196.2 -349.9 1. Permanently Permanently AHs 25 246 221 affected affected population APs 123 1136 1013

Significantly affected AHs 1 16 15

population APs 5 74 69

Temporary land use Collective Land 90.36 385 294.64 2. Temporary mu

impacts Temporarily affected AHs 64 109 45

population APs 278 521 243

land usemu Total 803.16 811.84 8.68 3. Total AHs 89 355 266 Affected affected population APs 401 1657 1256

1.3 Measures to Reduce Resettlement 8. Whether during planning or implementation, resettlement impacts have been minimized based on a comprehensive consideration of construction costs, social impacts and environmental impacts. Xun County Water Resources Bureau and Qi County Water Resources Bureau both confirmed this. 1.3.1 Design Stage 9. At the planning stage, local economic and social impacts were taken as a key factor for option optimization and comparison; the design was optimized to minimize resettlement impacts. The specific measures are as follows:

Table 1-3 Measures to Reduce Resettlement at the Preparation Stage Option 1 Option 2 Preferred Impacts avoided Including landscaping works for a total length of 21km Cancelling Avoiding the need to acquire along the Qihe River, 50m wide on each side, total area landscaping Option 2 3,150 mu of collective land 210hm2 works

10. At the feasibility study stage, the roadbed width of embankment top flood-control roads in Xun County on Qihe River`s left bank is 6.0 m and the road width is 5.0 m. In the preliminary design phase, after communicating with the owner, the embankment top flood-control road is narrowed down to be with a 5.5 m roadbed and a 4.5m road, in order to decrease land acquisition, which meets the demand of flood-control traffic and is based on the status quo of embankment. 11. Despite best efforts and following avoidance principles, the number of affected

6 collectives/persons are increased from FSR to PDR stage to accommodate the more sustainable project design

1.3.2 Resettlement Implementation Stage 12. If when LA or HD is unavoidable, the following measures will be taken to reduce the local impacts of the Subproject: 1) Notify the APs in advance, arrange a resettlement site, and compensate for losses. 2) Conduct public participation and consultation actively to collect comments and suggestions from the APs. 3) Strengthen internal and external monitoring, establish an efficient and unobstructed feedback mechanism and channel, and shorten the information processing cycle to ensure that issues arising from implementation are solved timely. 4) Local competent authorities will assist the APs in resettlement to reduce their burden and losses. 1.3.3 Construction Stage 13. During construction, the following measures will be taken to minimize impacts on the APs: 1) Construction will be completed as quickly as possible. The destruction of farmland, roads and houses will be avoided where possible. Warning signs will be set up as necessary to facilitate pedestrian and vehicular traffic. 2) Spoil excavated during construction will be removed timely. 3) The construction agency will coordinate with the local environmental sanitation authority to remove domestic waste from the construction site timely.

1.4 Estimated Resettlement Budget and Implementation Plan 14. Based on prices in November 2017, the resettlement budget of the Subproject is 23.8344 million yuan, accounting for 14.95% of the gross investment in the Subproject, including basic resettlement costs of 12.8366 million yuan or 53.86% of the resettlement budget; other costs (including planning and design costs, training costs, LA taxes, supporting fund for vulnerable groups, etc.) of 9.0723 million yuan or 38.06% of the resettlement budget; and contingencies of 1.9255 million yuan or 8.08% of the resettlement budget. All resettlement funds will be from domestic counterpart funds. The Subproject will be constructed from September 2018 to September 2021. Correspondingly, resettlement will begin in February 2018 and be completed in August 2018. 15. This updated RP was prepared based on the latest preliminary design report and DMS. This updated RP is now submitted to ADB for review and approval before the commencement of resettlement and prior to award of civil works contracts.

2 Impacts of the Subproject 2.1 Range of LA Impact Survey 16. Hohai University was appointed by the Hebi PMO to conducted a socioeconomic survey in the subproject area in January 2015, using the methods of literature study, key information interview, focus group discussion (FGD) and questionnaire survey, covering population, land resources, residential conditions, income and expenditure, expected resettlement modes, etc. 17. Due to the engineering layout adjustments during the preliminary design, the scope and scale of land acquisition impacts change correspondingly. In April 2017, the implementing unit, local government and design institute established a joint investigation group to conduct detailed measurement survey (DMS) in project area. Xun County Water Resources Bureau and Qi County Water Resources Bureau both confirmed the DMS results and the LAR impacted indicated in the preliminary design report. See Annex 2 for details. 18. According to the DMS and preliminary design report, the Subproject will permanently affect 21 villages in 2 towns in Qi and Xun Counties. See Table 2-1. 19. This subproject will only involve permanent collective land acquisition, permanent state-owned land occupation and temporary land use, no house demolition will be occurred during implementation stage.

Table 2-1 Comparison of the scope of the Subproject's permanent LAR FSR PDR D-Value(PDR – FSR) Permanentl Qi Jun Jun Tota Jun Tota Tota y affected Qi County Qi County Count Count County l County l l y y 2(Weixian, Town 1(Xigang) 3 1(Xigang) 1(Weixian) 2 0 -1 -1 Xinzhen) 15(Xigang Town: 6(Weixian Dalizhuang, 15(Xigang Town: 4(Weixian Town: Doujie, Fangzhai, Hekou, Sanjiaotun, Town: Qiangongt Hekou, Huangwangmiao, Weilizhuang ang, Huangwangmiao, Fangzhai, Woluan, , Weixian, Hougongta Huojie, Mawan, Huojie, Yan Village Nanzhifang, 19 ng, 21 0 2 2 Kangzhuang, village, Xinzhen Peiying, Qinjie, Sanjiaotun, Shinainaimiao,Xigang, Town: Weilizhuan Shinainaimiao, Doujie, Dalizhuang, Qianfangch g, Weixian, Songjie, Woluan, Zangkou, Kangzhuang, eng) Nanzhifan Xigang, Yan Qinjie) g) village, Zangkou) 48(Xigang Town: Groups 1, 2, 3, 6 of 17(Xigang Town: Hekou, Groups 2, 3, 4 Group 7 of of Sanjiaotun, Dalizhuang, Group Sanjiaotun village 4 of Doujie, collective, Group 3 of 13(Weixian Groups 1, 6, 7 of Huangwangmiao, Town: Fangzhai, Hekou Fangzhai village Groups 1, village collective, 6(Weixian collective, Groups 1, 2, 3, 11 of Huangwangmiao Town: 3, 4 of Woluan, Woluan Qiangongt village collective, Group 2 of village collective, ang, Huojie village Weilizhuang Groups 1, 8, 9 of Groups 2, collective, , Group 2 of Mawan, Huojie village 3, 4 of Kangzhuang Weixian, collective, Groups 1, 2, Hougongta village collective, Group 1 of 5, 8 of Yan village, Yan ng, Groups Group Qinjie village 23 61 31 7 38 Nanzhifang, village collective, 1, 2, 4 of collective, Xinzhen Group 3 of Peiying, Sanjiaotun village Town: Shinainaimiao, Xigang Group 4 of collective, Groups 3, 8, village collective, Weilizhuan Shinainaimiao 10 of Groups 1, 3, 4, 5, 7, 8, g, Group 2 village collective, Qianfangch 9, 10 of Doujie, Doujie of Weixian, Songjie village eng) village collective, Groups 1,2 collective, Woluan Group 4 of Dalizhuang, of village collective, Groups 1, 2, 7 of Nanzhifan Xigang village Zangkou, Zangkou g) collective, Yan village collective, village collective, Groups 1, 2, 3, 4 of Zangkou village Kangzhuang, Groups collective) 3, 4, 5 of Qinjie, Qinjie village collective) Note: Some collective land is not contracted to villager groups, thereby, the collectives who hold these un-contracted land are counted like villager groups.

2.2 Permanent Acquisition of Collective Land 2.2.1 Amount and Affected Population 20. In the Subproject, the construction activities involve the acquisition of collective land, affecting 21 villages in 2 towns in Qi and Xun Counties, including 6 villages in Weixian Town, Xun County, and 15 villages in Xigang Town, Qi County. 230.64 mu of collective land will be acquired for the Subproject, including 72.01 mu in Xun County and 158.63 mu in Qi County, affecting 246 households with 1,136 persons in total, including 31 households with 153 persons in Xun County and 215 households with 983 persons in Qi County. See Table 2-2.

Table 2-2 Summary of Acquired Collective Land Affected Affected unit Permanently acquired collective land (mu) people Irrigated Wood County Town Village Group Total Dry land AHs APs land land 1 3.1 3.1 18 73

2 0.5 0.5 1 3

Hekou 3 11.2 11.2 26 98

6 1.1 1.1 4 19

Subtotal 15.9 15.9 49 193

2 0.4 0.4 19 77

collective 2 2 for No.2 3 0.65 0.65 28 132

collective Sanjiaotun 3 3 for No.3 4 3.93 3.93 41 204

collective 5.99 5.99

Subtotal 15.97 15.97 88 413

Huangwangmiao 3 4.6 4.6 1 6

Fangzhai collective 12 12

1 3 3 1 4

2 0.66 0.66 1 4

3 2.1 2.1 1 5 Woluan 4 0.49 0.49 3 10

collective 1.75 1.75

Subtotal 8 8 6 23

Qi Xigang 1 1.5 1.5 1 10

9 1.8 1.8 1 6 Mawan 8 1.7 1.7 1 7

Subtotal 5 5 3 23

Huojie collective 8 8

1 2.4 2.4 5 25

2 0.7 0.7 1 6

5 0.4 0.4 1 4 Yan 8 1.4 1.4 4 17

collective 3.9 3.9

Subtotal 8.8 8.8 11 52

Shinaimiao 3 2 2 1 6

Xigang collective 12 12

1 2.33 1.3 1.03 1 6

3 0.48 0.48 1 4

4 1.08 0.43 0.65 1 6

5 0.07 0.07 1 6

Doujie 7 0.86 0.4 0.46 1 4

8 0.83 0.5 0.33 1 7

9 0.81 0.81 1 4

10 0.65 0.65 1 4

collective 8.92 8.92

Subtotal 16.03 12.1 3.93 8 41

Dalizhuang 4 2 2 1 8

1 2.16 2.16 6 26

2 8.41 8.41 10 44

Zangkou 7 5.96 5.96 11 51

collective 23.8 23.8

Subtotal 40.33 40.33 27 121

1 1.2 1.2 4 21

2 1.9 1.9 4 17

Kangzhuang 3 0.9 0.9 3 15

4 2 2 6 31

Subtotal 6 6 17 84

3 0.27 0.27 1 4

4 0.13 0.13 1 4

Qinjie 5 0.3 0.3 1 5

collective 1.3 1.3

Subtotal 2 1.73 0.27 3 13

Total 158.63 154.43 4.2 215 983

1 1.6 1.6 1 5

3 29.2 29.2 1 4 Qiangongtang 11 4.4 4.4 1 4

Subtotal 35.2 35.2 1 5

2 3.7 3.7 2 10

3 2.39 2.39 3 12 Hougongtang 4 2.41 2.41 1 4

Subtotal 8.5 8.5 6 26

1 2 2 1 3 Xun Weixian 2 1.5 1.5 1 3 Peiying 4 1.7 1.7 1 6

Subtotal 5.2 3.7 1.5 3 12

Weilizhuang 4 7.8 7.8 4 23

Weixian 2 8.66 8.66 9 41

1 3.7 0.68 3.02 4 22

Nanzhifang 2 2.95 2.35 0.6 4 24

Subtotal 6.65 3.03 3.62 8 46

Total 72.01 43.7 14.53 13.78 31 153 Total 230.64 43.7 168.96 17.98 246 1136 Percent (%) 100.00 18.95 73.26 7.80

Note: Acquisition of non-contracted land neither cause any income impact nor involves any affected person.

2.2.2 Cultivated Land Losses 21. Among the impacts of collective land acquisition, 5 villages and 11 villager groups in Weixian Town of Xun County and 12 villages and 36 village groups in Xigang Town of Qi County will be affected by the project`s permanent cultivated land (dry land and irrigable land) acquisition. The acquired cultivated land sums to 130 mu (other cultivated lands are regarded as collectively-owned lands that are not contracted to households), and a total of 232 households and 1072 people are affected. 1) Village level 22. The loss rates of cultivated land of all 47 affected groups in 17 villages are below 9%. Group 3 of Qiangongtang Village has the highest land loss rate of 8.98%, while the land loss rates of the other groups are below 4%. See Table 2-3.

Figure 2-1 Current Situation of Land to be Acquired

Table 2-3 Summary of Acquired Collective Land and Income Losses at village level County Land loss rate at village Before LA LA impact Income loss (yuan) Per level

Town capita Percen Per Lan Villag cultivate Percen Percen t to per Group Cultivate capita Cultivate d Average Per e Populatio AH d area t of t of Annual capita HHs d area cultivate APs d area loss loss per capita n s after LA HHs APs loss net (mu) d area (mu) rate HH loss (mu) (%) (%) income (mu) (%) (%) 1 79 320 340 1.06 18 73 3.1 1.05 22.78 22.81 0.91 3720 206.67 50.96 0.36

Hekou 2 49 192 200 1.04 1 3 0.5 1.04 2.04 1.56 0.25 600 600.00 200.00 1.43 3 73 292 306 1.05 26 98 11.2 1.01 35.62 33.56 3.66 13440 516.92 137.14 0.98 6 53 210 220 1.05 4 19 1.1 1.04 7.55 9.05 0.50 1320 330.00 69.47 0.50 Subtota 254 1014 1066 1.05 49 193 15.9 1.04 19.29 19.03 1.49 19080 389.39 98.86 0.71 l

Sanjiaotu 2 76 310 310 1.00 19 77 0.4 1.00 25.00 24.84 0.13 480 25.26 6.23 0.04 3 80 350 345 0.99 28 132 0.65 0.98 35.00 37.71 0.19 780 27.86 5.91 0.04 n n 4 93 440 420 0.95 41 204 3.93 0.95 44.09 46.36 0.94 4716 115.02 23.12 0.16 Subtota 249 1100 1075 0.98 88 413 4.98 0.97 35.34 37.55 0.46 5976 67.91 14.47 0.10 l

3 52 208 220 1.06 1 6 4.6 1.04 1.92 2.88 2.09 5520 5520.00 920.00 6.56 Huangw angmiao Xigang Xigang i Qi 1 40 161 170 1.06 1 4 3 1.04 2.50 2.48 1.76 3600 3600.00 900.00 6.42

Woluan 2 43 172 180 1.05 1 4 0.66 1.04 2.33 2.33 0.37 792 792.00 198.00 1.41 3 48 186 195 1.05 1 5 2.1 1.04 2.08 2.69 1.08 2520 2520.00 504.00 3.59 4 49 194 210 1.08 3 10 0.49 1.08 6.12 5.15 0.23 588 196.00 58.80 0.42 Subtota 180 713 755 1.06 6 23 6.25 1.05 3.33 3.23 0.83 7500 1250.00 326.09 2.33 l 1 51 206 230 1.12 1 10 1.5 1.11 1.96 4.85 0.65 1800 1800.00 180.00 1.28 Mawan Mawan 9 52 205 240 1.17 1 6 1.8 1.16 1.92 2.93 0.75 2160 2160.00 360.00 2.57 8 57 224 250 1.12 1 7 1.7 1.11 1.75 3.13 0.68 2040 2040.00 291.43 2.08 Subtota 160 635 720 1.13 3 23 5 1.13 1.88 3.62 0.69 6000 2000.00 260.87 1.86 l 1 65 261 270 1.03 5 25 2.4 1.03 7.69 9.58 0.89 2880 576.00 115.20 0.82 2 55 223 240 1.08 1 6 0.7 1.07 1.82 2.69 0.29 840 840.00 140.00 1.00 Yan 5 57 228 250 1.10 1 4 0.4 1.09 1.75 1.75 0.16 480 480.00 120.00 0.86 8 53 212 236 1.11 4 17 1.4 1.11 7.55 8.02 0.59 1680 420.00 98.82 0.70 Subtota 230 924 996 1.08 11 52 4.9 1.07 4.78 5.63 0.49 5880 534.55 113.08 0.81 l

Shinaimiao

3 41 165 180 1.09 1 6 2 1.08 2.44 3.64 1.11 2400 2400.00 400.00 2.85

1 45 180 198 1.10 1 6 1.3 1.09 2.22 3.33 0.66 1560 1560.00 260.00 1.85 3 43 172 188 1.09 1 4 0.48 1.09 2.33 2.33 0.26 576 576.00 144.00 1.03

Doujie 4 47 176 205 1.16 1 6 0.43 1.16 2.13 3.41 0.21 516 516.00 86.00 0.61 5 42 168 182 1.08 1 6 0.07 1.08 2.38 3.57 0.04 84 84.00 14.00 0.10 7 39 156 175 1.12 1 4 0.4 1.12 2.56 2.56 0.23 480 480.00 120.00 0.86 8 47 188 209 1.11 1 7 0.5 1.11 2.13 3.72 0.24 600 600.00 85.71 0.61 Subtota 263 1040 1157 1.11 6 33 3.18 1.11 2.28 3.17 0.27 3816 636.00 115.64 0.82 l huan Daliz g

4 69 344 422 1.23 1 8 2 1.22 1.45 2.33 0.47 2400 2400.00 300.00 2.14

Zangkou Zangkou 1 54 216 250 1.16 6 26 2.16 1.15 11.11 12.04 0.86 2592 432.00 99.69 0.71 2 53 224 250 1.12 10 44 8.41 1.08 18.87 19.64 3.36 10092 1009.20 229.36 1.64 7 48 220 245 1.11 11 51 5.96 1.09 22.92 23.18 2.43 7152 650.18 140.24 1.00 Subtota 155 660 745 1.13 27 121 16.53 1.10 17.42 18.33 2.22 19836 734.67 163.93 1.17 l

Kangzhuang 1 46 189 200 1.06 4 21 1.2 1.05 8.70 11.11 0.60 1440 360.00 68.57 0.49 2 48 194 204 1.05 4 17 1.9 1.04 8.33 8.76 0.93 2280 570.00 134.12 0.96 3 49 198 210 1.06 3 15 0.9 1.06 6.12 7.58 0.43 1080 360.00 72.00 0.51 4 52 240 240 1.00 6 31 2 0.99 11.54 12.92 0.83 2400 400.00 77.42 0.55 Subtota 195 821 854 1.04 17 84 6 1.03 8.72 10.23 0.70 7200 423.53 85.71 0.61 l

Qinjie 4 56 225 220 0.98 1 4 0.13 0.98 1.79 1.78 0.06 156 156.00 39.00 0.28 5 48 192 185 0.96 1 5 0.3 0.96 2.08 2.60 0.16 360 360.00 72.00 0.51 Subtota 104 417 405 0.97 2 9 0.43 0.97 1.92 2.16 0.11 516 258.00 57.33 0.41 l 195 Total 8041 8595 1.07 212 971 71.77 1.06 10.86 12.08 0.84 86124 406.25 88.70 0.63 2

Qiangongtang 1 71 303 303 1.00 1 5 1.6 0.99 1.41 1.65 0.53 1920 1920.00 384.00 2.74 35040.0 8760.0 3 77 325 325 1.00 1 4 29.2 0.91 1.30 1.23 8.98 35040 62.47 0 0

Weixian 1320.0

Xun 11 70 283 283 1.00 1 4 4.4 0.98 1.43 1.41 1.55 5280 5280.00 9.41 0 Subtota 14080.0 3249.2 218 911 911 1.00 3 13 35.2 0.96 1.38 1.43 3.86 42240 23.17 l 0 3 gong tang Hou 2 93 379 379 1.00 2 10 3.7 0.99 2.15 2.64 0.98 4440 2220.00 444.00 3.17 3 86 353 353 1.00 3 12 2.39 0.99 3.49 3.40 0.68 2868 956.00 239.00 1.70 4 98 372 372 1.00 1 4 2.41 0.99 1.02 1.08 0.65 2892 2892.00 723.00 5.16

Subtota 277 1104 1104 1.00 6 26 8.5 0.99 2.17 2.36 0.77 10200 1700.00 392.31 2.80 l

Peiying 1 77 323 452 1.40 1 3 2 1.39 1.30 0.93 0.44 2400 2400.00 800.00 5.71 4 83 349 489 1.40 1 6 1.7 1.40 1.20 1.72 0.35 2040 2040.00 340.00 2.42 Subtota 160 672 941 1.40 2 9 3.7 1.39 1.25 1.34 0.39 4440 2220.00 493.33 3.52 l

h z i l 4 65 247 345 1.40 4 23 7.8 1.37 6.15 9.31 2.26 9360 2340.00 406.96 2.90

Nanzhif 1 85 357 357 1.00 2 10 0.68 1.00 2.35 2.80 0.19 816 408.00 81.60 0.58 ang ang 2 88 371 371 1.00 3 20 2.35 0.99 3.41 5.39 0.63 2820 940.00 141.00 1.01 Subtota 173 728 728 1.00 5 30 3.03 1.00 2.89 4.12 0.42 3636 727.20 121.20 0.86 l Total 893 3662 4029 1.10 20 101 58.23 1.08 2.24 2.76 1.45 69876 3493.80 691.84 4.93 284 107 15600 Total 11703 12624 1.08 232 130 1.07 8.15 9.16 1.03 672.41 145.52 1.04 5 2 0 Note: As per the FDGs in field, the average net income of farmland is 1,200 yuan per mu annually, and the per capita disposable income of rural residents is 14,022 yuan in 2016.

2) Household level 23. Among the 232 households affected by LA, 153 have farmland loss rates of below 10%, accounting for 65.95%; 42 have farmland loss rates of 10%-20%, accounting for 18.1%; 20 have farmland loss rates of 20%-30%, accounting for 8.62%; and 1 has farmland loss rates of 30%-40%, accounting for 0.43%; other 16 households have a farmland loss rate higher than 40%. See details in Table 2-4. Table 2-4 Land Loss Rates at HH Level Land loss rate 10%~20 20%~30 30%~40 40%~50 50%~70 70%~90 90%~10 Total <10% ％ % % % % % 0%

To Population Population Population Population Population Population Population Population Population Village

wn HHs HHs HHs HHs HHs HHs HHs HHs HHs

14 4 19 Hekou 33 12 41 4 10 2 9 3 32 8 41 Sanjiaotun 66 16 63 5 24 1 5 1 8 3 Huangwan 1 6 1 6 gmiao Woluan 3 10 1 4 2 9 6 23

Mawan 1 10 2 13 3 23

1 Yan 11 52 52 1 Xigang Xigang Shinaimia 1 6 1 6 o Doujie 4 23 2 10 6 33

Dalizhuan 1 8 1 8 g 2 12 Zangkou 16 71 7 32 2 8 1 5 1 5 7 1 Kangzhua 1 17 84 84 ng 7 Qinjie 2 9 2 9

2 15 70 16 97 Total 39 12 53 5 22 1 5 2 11 3 17 1 0 3 0 1 2 Qiangongt 1 5 1 4 1 4 3 13 ang Hougongt 2 8 2 10 2 8 6 26 ang Weixian Weixian Peiying 1 6 1 3 2 9

Weilizhua 4 23 4 23 ng Nanzhifan 3 22 1 4 1 4 5 30 g 2 10 Total 3 22 3 12 8 43 1 5 1 3 2 8 1 4 1 4 0 1 2 15 72 17 10 Total 42 20 96 1 5 6 25 3 13 3 15 4 21 3 3 5 2 72 2 1 65. 67. 18. 16. 8. 8. 0. 0. 2. 2. 1. 1. 1. 1. 1. 1. 10 Percent% 0 95 63 10 04 62 96 43 47 59 33 29 21 29 40 72 96 0 0

2.2.3 Income Losses 24. The income loss rates of all AHs are below 30%, in which 84.05% of the AHs have income loss rates of below 5%, 9.05% have income loss rates of 5%-10%, 3.88% have income loss rates of 10%-20%, and 3.03% have income loss rate of 20%-30%. See Table 2-5.

Table 2-5 Income Loss Rates at HH Level Income loss rate Total Coun Tow Village <5% 5%~10% 10%~20% 20%~30% ty n Populati HH Populati HH Populati HH Populati HH Populati HHs on s on s on s on s on Hekou 45 183 4 10 0 0 0 0 49 193 Sanjiaotun 82 384 5 24 1 5 0 0 88 413 Huangwangm 0 0 0 0 0 0 1 6 1 6 iao Woluan 4 14 0 0 2 9 0 0 6 23 Mawan 1 10 2 13 0 0 0 0 3 23 Xigang Xigang Yan 11 52 0 0 0 0 0 0 11 52 Qi Shinaimiao 0 0 1 6 0 0 0 0 1 6 Doujie 6 33 0 0 0 0 0 0 6 33 Dalizhuang 0 0 0 0 0 0 1 8 1 8 Zangkou 23 103 0 0 3 13 1 5 27 121 Kangzhuang 17 84 0 0 0 0 0 0 17 84 Qinjie 0 0 0 0 0 0 2 9 2 9 21 Total 189 863 12 53 6 27 5 28 971 2 Qiangongtan 0 0 1 5 0 0 2 8 3 13 g Weixian Weixian Hougongtang 2 8 2 10 2 8 0 0 6 26 Xun Peiying 0 0 1 6 1 3 0 0 2 9 Weilizhuang 0 0 4 23 0 0 0 0 4 23 Nanzhifang 4 26 1 4 0 0 0 0 5 30 Total 6 34 9 48 3 11 2 8 20 101 23 Total 195 897 21 101 9 38 7 36 1072 2 84.0 9.0 3.8 3.0 10 Percent% 83.68 9.42 3.54 3.36 100 5 5 8 2 0 Note: income loss rate = land loss rate × income generated from land / total household incomes.

2.3 Permanent Occupation of State-owned Land 25. The embankment protection and flood protection road components will occupy 196.2 mu of state-owned land in total, affecting no one. See Table 2-6 and Figure 2-2.

Table 2-6 Summary of Permanently Occupied State-owned Land Ownership Type County Town Land for hydraulic structure tidal flat Water Surface Subtotal Xun Weixian 34.2 11.2 41.4 86.8 Qi Xigang 47.8 61.6 109.4 Total 82 11.2 103 196.2 Source: Preliminary Design Report.

Figure 2-2 Current Situation of State-owned Waterway (Left) and Bank-top Road (Right)

2.4 Temporary Land Occupation 26. Temporary land occupation will be caused by the roads reconstruction, worker campus, stockyards and temporary sheds mainly. 385 mu will be occupied temporarily, including 327.7 mu of dry land and 57.3 mu of unused land, affecting 109 households with 521 persons. See Table 2-7.

Table 2-7 Summary of Temporarily Occupied Land Affected Collective land People County Town Village Remarks Dry Unused Woodland Subtotal HHs APs land Land Qiangongtang 20 20 3 13

Hougongtang 15 15 6 26

Peiying 5 5 3 12 Weixian Xun Weilizhuang 5 5 4 23 Construction Weixian 5 5 9 41 roads, Nanzhifang 30 30 8 46 stockyards,

Xinzheng Qianfangcheng 51 51 3 12 temporary

Subtotal 131 0 0 131 36 173 sheds, etc. Qi Xigang 196.7 57.3 254 73 348

Total 327.7 0 57.3 385 109 521 Source: Preliminary Design Report.

2.5 Affected Ground Attachments 27. The ground attachments affected by the Subproject mainly include Water tanks, wells, water canals, telegraph poles, scattered deciduous trees and scattered fruit trees. See Table 2-8.

Table 2-8 Summary of Affected Ground Attachments Type canals (m) canals (m) canals County Telegraph Telegraph

Water Water Scattered deciduous trees (diameter at breast height: 1=<5cm; Scattered fruit trees (ground diameter: Earth Earth poles Town Village Water 2=6-10cm; 3=11-15cm; 4=16-20cm; 5=21-25cm; 6=26-30cm; 1=<4cm; 2=4.1-6cm; 3=6.1-8cm; tanks Wells

7=31cm or more) 4=8.1-10cm; 5=>=10.1cm) (m2) 1 2 3 4 5 6 7 Total 1 2 3 4 5 Total

Weilizhuang 4 1 5

Weixian Weixian 500 70 570

Xun Nanzhifang 200 70 270 55 55

Xinzheng Qianfangcheng 55 100 565 645 620 620 215 2820

Total 255 600 635 645 694 620 216 3665 55 55

Doujie 1 120 141 1460 182 160 140 121 2324 50 120 180 120 50 520

Fangzhai 10.5 3 1 214 148 1372 296 272 248 42 2592 1603 317 1920

Hekou 180 188 1412 516 312 98 73 2779

Huangwangmiao 15 232 345 142 157 34 35 960

Houjie 12 10 1 19 138 1257 711 58 140 22 2345 65 130 195 130 70 590

Kangzhuang 12 2 30 222 1383 284 295 232 34 2480

Qinjie 10 136 458 1178 154 138 121 2195 4 8 5 4 21

Sanjiaotun 12 145 1558 280 258 110 15 2378 150 185 190 50 575

Qi Xigang Shinaimiao 13 109 384 147 234 15 902

Songjie 12 134 523 245 385 267 112 1678

Woluan 15 145 1234 235 270 218 52 2169

Liujie 23 156 578 234 11 15 1017

Xigang 15 580 295 128 278 55 1351

Mawan 56 90 523 1265 267 215 113 2529

Yan 45 89 654 275 206 180 1449

Zangkou 327 143 5 1450 59 1125 2634

Total 34.5 1 330 153 9 2229 2132 14846 6285 3167 2328 795 31782 1718 721 568 445 174 3626 Total 34.5 1 330 153 9 2484 2732 15481 6930 3861 2948 1011 35447 1773 721 568 445 174 3681 Source: Preliminary Design Report.

2.6 Affected Population 2.6.1 Summary 28. The Subproject will affect 355 households with 1,657 persons in total, including 827 females, in which 246 households with 1,136 persons will be affected permanently and 109 households with 521 persons affected temporarily. See Table 2-9.

Table 2-9 Summary of Affected Population County Permanently Temporarily Total Town Village Group affected affected

AHs APs AHs APs AHs APs Females 1 18 73 18 73 35

2 1 3 1 3 1

Hekou 3 26 98 26 98 45

6 4 19 4 19 10

Subtotal 49 193 49 193 91

2 19 77 19 77 34

collective for No.2 3 28 132 28 132 65

Sanjiaotun collective for No.3 4 41 204 41 204 104

collective

Subtotal 88 413 88 413 203

Huangwangmiao 3 1 6 1 6 3

Fangzhai collective

1 1 4 1 4 2

2 1 4 1 4 2

3 1 5 1 5 2 Woluan 4 3 10 3 10 4

collective

Subtotal 6 23 6 23 10

1 1 10 1 10 5

9 1 6 1 6 2 Mawan 8 1 7 1 7 3 Qi Xigang Subtotal 3 23 3 23 10

Huojie collective

1 5 25 5 25 14

2 1 6 1 6 3

5 1 4 1 4 2 Yan 8 4 17 4 17 7

collective

Subtotal 11 52 11 52 26

Shinaimiao 3 1 6 1 6 3

Xigang collective

1 1 6 1 6 2

3 1 4 1 4 2

4 1 6 1 6 3

5 1 6 1 6 3

7 1 4 1 4 2 Doujie 8 1 7 1 7 3

9 1 4 1 4 2

10 1 4 1 4 2

collective

Subtotal 8 41 8 41 19

Dalizhuang 4 1 8 1 8 4

1 6 26 6 26 12

Zangkou 2 10 44 10 44 23

7 11 51 11 51 26

collective

Subtotal 27 121 27 121 61

1 4 21 4 21 11

2 4 17 4 17 9

Kangzhuang 3 3 15 3 15 8

4 6 31 6 31 13

Subtotal 17 84 17 84 41

3 1 4 1 4 2

4 1 4 1 4 2

Qinjie 5 1 5 1 5 2

collective

Subtotal 3 13 3 13 6

Total 215 983 73 348 288 1331 651 1 1 5 1 5

3 1 4 1 4 Qiangongtang 11 1 4 1 4

Subtotal 1 5 3 13 4 18 8 2 2 10 2 10

3 3 12 3 12 Hougongtang 4 1 4 1 4

Subtotal 6 26 6 26 12 52 30 1 1 3 1 3 Weixian Xun 2 1 3 1 3 Peiying 4 1 6 1 6

Subtotal 3 12 3 12 6 24 13 Weilizhuang 4 4 23 4 23 8 46 26 Weixian 2 9 41 9 41 18 82 45 1 4 22 4 22

Nanzhifang 2 4 24 4 24

Subtotal 8 46 8 46 16 92 47 Total 31 153 33 161 64 314 169 Xinzheng Qianfangcheng 3 12 3 12 7

Total 246 1136 109 521 355 1657 827

2.6.2 Affected Vulnerable Groups 29. According to the DMS, no vulnerable group has been identified. Affected vulnerable population will be further identified during the project implementation. 2.6.3 Affected Minority Population 30. According to the DMS, the Subproject will affect no minority population. 2.6.4 Gender Impacts 31. In the affected population, there are 827 females, accounting for 49.91%. See Section 3.3 for a detailed gender analysis. At the preparation stage, women have been treated equally, and the relevant measures are set out in Section 5.3. A gender action plan has been developed.

3 Socioeconomic Profile 3.1 Socioeconomic Profile of the Subproject Area 3.1.1 Hebi City 32. Hebi is located in northern Henan Province, in the transitional zone between the east piedmont of the Taihang Mountains and the North China Plains, between east longitude 113’59”-114’45” and north latitude 35’26”-36’02”, with a land area of 2,182 km2, including an urban area of 513 km2. Its landforms include mountain, hill, plain and lowland. The city features a warm climate, distinct seasons, ample sunshine and a long frost-free period. The city governs two counties, 3 districts and a development zone, 24 sub-districts, 6 Xiangs and 14 towns. The city abounds with natural resources and over 30 proven minerals, including goal, limestone, dolomite, quartz sandstone and refractory clay. 33. At the end of 2016, the city had a population of 1.6399 million and a resident population of 1.6138 million. In 2016, the city’s GDP was 76.941 billion yuan, a year-on-year growth of 7.9%, in which the added value of primary industries was 6.199 billion yuan, up 4.0%; that of secondary industries 50.333 billion yuan, up 8.6%; and that of tertiary industries 20.409 billion yuan, up 7.4%. The ratio of primary, secondary and tertiary industries was 8.1:65.4:26.5. In 2016, the per capita disposable income of urban residents was 26,184 yuan, a year-on-year growth of 6.7%, and the per capita net income of rural residents 14,022 yuan, a year-on-year growth of 7.9%. See Table 3-1. Table 3-1 Socioeconomic Profile of Hebi City (2016) No. Item Unit Hebi City 1 Gross Population 10,000 163.99 2 Resident population 10,000 161.38 3 Urban Resident population 10,000 92.33 4 Rural Resident population 10,000 69.05 5 GDP 100 million yuan 769.41 6 Primary industries 100 million yuan 61.99 7 Secondary industries 100 million yuan 503.33 8 Tertiary industries 100 million yuan 204.09 9 Per capita GDP yuan 47677 10 Per capita disposable income of urban residents yuan 26184 11 Per capita net income of rural residents yuan 14022 12 Cultivated area for food 10,000 mu 256.41 13 grain output 10,000 tun 119.57 Source: National Economic and Social Development Statistical Bulletin 2016 of Hebi City

3.1.2 Affected Counties Qi County 34. Qi County is located in northern Hebi City, with a land area of 567.43 km2, run through by the Qihe and Weihe Rivers, bordered by the Taihang Mountains on the west, Xun County on the east, downtown Hebi on the north and Weihui City on the south. The county governs 5 townships (Gaocun, Beiyang, Xigang and Miaokou Towns, and Huangdong Xiang) and 4 sub-districts (Chaoge, Qiaomeng, Weudu and Lingshan). 35. In 2016, the county’s GDP was 22.38 billion yuan, in which the added value of primary industries was 1.95 billion yuan; that of secondary industries 17.1 billion yuan; and that of tertiary industries 3.33 billion yuan. See Table 3-2. Table 3-2 Socioeconomic Profile of Qi County (2016) No. Item Unit Qi County 1 GDP 100 million yuan 223.8 2 Primary industries 100 million yuan 19.5 3 Secondary industries 100 million yuan 171.0 4 Tertiary industries 100 million yuan 33.3 Source: Work Report of Qi County in 2017.

Xun County 36. Xun County is affiliated to Hebi City and located in northern Henan Province, governing one Xiang, 6 towns, 4 sub-districts, 452 villages and 12 communities, with a population of 665,000, a land area of 966 km2 and a cultivated area of 1.076 million mu. The county boasts fertile land and

a moderate climate, and is a major county of food crops and animal products. In 2016, the county’s GDP was 18.23 billion yuan, in which the added value of primary industries was 3.1 billion yuan, that of secondary industries 9.84 billion yuan and that of tertiary industries 5.29 billion yuan. Residents’ per capita disposable income was 16,521 yuan. See Table 3-3. Table 3-3 Socioeconomic Profile of Xun County (2016) No. Item Unit Xun County 1 GDP 100 million yuan 182.3 2 Primary industries 100 million yuan 31.0 3 Secondary industries 100 million yuan 98.4 4 Tertiary industries 100 million yuan 52.9 5 Per capita GDP yuan 16521 Source: Work Report of Xun County in 2017.

3.1.3 Affected Towns 37. The Subproject will affect 2 towns in two counties, which are Weixian Town, Xun County; and Xigang Town, Qi County. 38. Weixian Town, Xun County has a land area of 81.1 km2 and a population of 59,000, and governs 48 villages, being a major agricultural town that boasts fertile land, rich water resources and a moderate climate. In recent years, commercial crop cultivation has developed rapidly in the town. 39. Xigang Town, Qi County has a land area of 65 km2 and a population of 47,000, being a major agricultural, cultural and technological town in Qi County.

Table 3-4 Socioeconomic Profile of the Affected Towns Rura Labor Where Per l Net output cap econ Farming, forestry, sideline and Inc Inc ita County omic fishery om Fruit cultivation Fruit Stock breeding Stock Transport om net Service Tow inco Aquaculture e La cultivation Sidelines

Subtotal Com e inc n me Indu Constr Ot (10, bor Crop

merc (10, om (10,0 stry uction her 000 for

e 000 e

00 yua ce yua (yu

yuan n)

n) an)

) X 14 11 1 Wei 4120 10 11 12 147 10 15 22 265 97 146 808 u 63 05 0 6517 2391 xian 1 68 14 98 99 54 76 7 64 58 37 9 n 7 2 5 30 14 36 1 10 10 Q Xig 1938 35 40 500 40 1500 40 300 104 85 00 00 0 30000 00 00 i ang 68 0 0 00 00 0 00 18 00 0 0 0 0 0 6 Source: provided by town governments.

3.1.4 Affected Villages 40. The Subproject will affect 21 villages in 2 towns in two counties, including 6 villages in Weixian Town, Xun County; and 15 villages in Xigang Town, Qi County, and the affected population is distributed in 17 villages in 2 towns. See Table 3-5 in page 24.

3.2 Socioeconomic Profile of the Affected Population 3.2.1 Economic Conditions of the AHs 41. The task force conducted a questionnaire survey on 75 households and 346 persons affected by LA in September 2017, including 9 households with 42 persons in Xun County and 66 households with 304 persons in Qi County. 1) Ethnic and gender composition 42. The 75 households have 346 persons in total, including 267 laborers and 166 females, with an average population of 4.61 per household. All are Han people. 2) Age structure 43. Among the 346, 79 are aged 16 years or below, accounting for 22.83%; 151 aged 17-39 years, accounting for 43.64%; 66 aged 40-59 years, accounting for 19.08%; and 50 aged 60 years or above, accounting for 14.45%. 3) Educational level 22

44. Among the 267 adults, 45 have received primary school or below education, accounting for 16.85%; 113 have received junior high school education, accounting for 42.32%; 75 have received senior high or secondary technical school education, accounting for 28.09%; and 34 have received junior college education, accounting for 12.73%. See Table 3-6. Table 3-5 Demographics of the Population Male Female Total Item N Percent N Percent N Percent Age ≤16 years 43 23.89 36 21.69 79 22.83 17-39 years 79 43.89 72 43.37 151 43.64 40-59 years 34 18.89 32 19.28 66 19.08 ≥60 years 24 13.33 26 15.66 50 14.45 Subtotal 180 100 166 100 346 100 Educational level (adults) Primary school or below 22 16.06 23 17.69 45 16.85 Junior high school 59 43.07 54 41.54 113 42.32 Senior high school / secondary technical 38 27.74 37 28.46 75 28.09 school Junior college or above 18 13.14 16 12.31 34 12.73 Subtotal 137 100 130 100 267 100

4) House size 45. The houses of the 75 households are in masonry concrete and masonry timber structures mainly, including 57 houses in masonry concrete structure (76%) and 18 houses in masonry timber structure (24%). The 75 households have a total house size of 16,680.26 m2, and an average house size of 222.4 m2 per household or 48.21 m2 per capita. 5) Land resources 46. The 75 households have a total contracted cultivated area of 460.6 mu, 6.14 mu per household or 1.13 mu per capita. Their cultivated land is irrigated land mainly, and the main crops are wheat and corn, with annual net income of about 1,200 yuan/mu.

Table 3-6 Socioeconomic Profile of the Affected Villages (0,000yuan)

economic Where Labor output income County Constructi Commerc Transport (7)Other Town Rural Rural Industr (1) Farming, forestry, sideline and fishery Service Net income Per capita Subtot (2) (3) (4) (5) (6) Aquac cultiva cultiva

breedi Income on Stock ulture Sideli

e Crop 10,000 Village Fruit Labor net income tion tion nes ng al

(0,000

yuan force (yuan)

yuan)

Qiangongtang 610 430 390 40 60 80 30 10 1608 503 1608 6566

Hougongtang 373 308 288 20 30 20 10 5 540 183 540 6054

Peiying 650 460 410 50 65 80 30 15 1750 550 1750 6453

Xun Weixian Weilizhuang 210 145 125 20 30 20 10 5 510 169 510 8117

Weixian 1189 811 721 80 10 70 28 150 100 30 1500 860 1800 9653

10 Nanzhifang 834.2 494.2 439.2 50 5 40 200 500 350 750 8541 0 20 Hekou 1306.2 608.2 178.2 30 400 150 116 348 10500 0 Sanjiaotun 784.2 420.2 360.2 60 70 98 294 9300

Huangwangmiao 925.8 500.8 360.8 100 30 10 10 50 5 120 360 9000

Fangzhai 2006.2 756.2 456.2 300 500 60 230 690 9900

Woluan 855.6 353.6 303.6 50 30 60 50 20 114 342 9100

Mawan 888.8 493.8 273.8 220 20 30 115 345 8800

Huojie 841.2 413.2 213.2 200 40 10 126 378 8900

Yan 1043.8 363.8 263.8 100 300 50 110 330 9800 Qi Xigang Shinaimiao 1343 833 533 300 60 150 450 9300

100 200 100 Xigang 7476.4 1676.4 1026.4 20 600 30 300 500 1500 11000 0 0 0 Doujie 1092.8 412.8 362.8 50 300 50 110 330 9600

Dalizhuang 1349.8 869.8 469.8 400 50 40 130 390 9500

Zangkou 2629 2279 278 1 2000 50 100 300 9600

Kangzhuang 940.8 700.8 200.8 500 80 240 9000

100 500 Qinjie 2302.6 442.6 242.6 200 20 100 80 240 13000 0

6) Household properties 47. An average household has 4.68 fixed telephones/mobile phones, 1.5 color TVs, 0.87 PC, 2.04 fans, 0.96 refrigerator, 0.84 air-conditioners, 0.96 washing machine, 1.28 bicycle, 1.48 electric bicycles/motorcycles, and 0.69 car, indicating an above-average overall living standard. 7) Household income and expenditure 48. The per capita annual income of the 75 households is 10,754.34 yuan, per capita annual expenditure 7,228.32 yuan, and per capita net income 10,124.86 yuan. See Table 3-7.

Table 3-7 Household Income and Expenditure Average per Item Per capita (yuan) Percent (%) household (yuan) Cultivation income 10120.00 2193.64 20.40 Labor output income 35666.67 7731.21 71.89 Household Property income 1773.33 384.39 3.57 income Other income 2053.33 445.09 4.14 Subtotal (A) 49613.33 10754.34 100 Agricultural productive expenditure (B) 2904.00 629.48 8.71 Nonagricultural productive expenditure (C) 25810.67 5594.80 77.40 Daily expenses 13156.00 2851.73 39.45 Household Item Educational expenses 9633.33 2088.15 28.89 expenditure Medical expenses 3021.33 654.91 9.06 Social security expenses (D) 1048.00 227.17 3.14 Other expenses (E) 3584.00 776.88 10.75 Subtotal (B+C+D+E) 33346.67 7228.32 100 Per capita net income (A-B) 10124.86

3.2.2 Expected Resettlement Modes 49. According to the resettlement willingness survey, all the 75 households expect cash compensation and social security. Although the local coverage of social endowment insurance for urban and rural residents is over 95%, the AHs may still increase pension level by increasing contribution level. Other resettlement modes include: a) conducting crop restructuring to increase income, chosen by 45 households, accounting for 60%; and b) attending training courses organized by the labor and social security authority, chosen by 61 households, accounting for 81%. See Table 3-10.

Table 3-8 Expected Resettlement Modes of the Households Affected by LA Expected resettlement mode (HHs) County HHs Cash compensation Social security Crop restructuring Skills training Xun 10 10 10 6 6 Qi 65 65 65 39 55 Total 75 75 75 45 61 Percent 100% 100% 40% 88%

3.3 Gender Analysis 50. The Gender Action Plan will ensure gender mainstreaming at the implementation stage. ADB’s gender and development policy is a key strategy for promoting gender equality and mainstreaming. The Chinese government also attaches great importance to gender equality and women’s development, and takes gender equality as a basic state policy. The task force has conducted a detailed gender analysis on local women as a reference for resettlement implementation. See Table 3-11. 51. At the design stage, particular attention will be paid to women’s needs so that they can benefit more from the Subproject, such as public facilities and services, livelihood selection and restoration, skills training, resettlement site selection and resettlement housing design.

Table 3-9 Gender Analysis Part A—Gender analysis of rural women in the subproject area 1. Legal rights of According to laws of the PRC, women have equal legal rights with men, though some women are not fully aware women of this. 2. Social status of Local women have relatively good social status. All key matters of a family are determined by the couple through women discussion. Men are the backbone of families, and attend the important village meetings. However, women can influence men when they make decisions at meetings. 3. Title to land and Women have the same title as men. Like other parts of China, in the subproject area, when a daughter is married, properties her land will remain in her mother’s family and she can only share the land owned by her husband’s family since the household contract responsibility system was implemented in 1982. If LA, HD or resettlement is involved, women will have equal rights to compensation. 4. Right to collective Women have equal rights. properties 5. Living and gender There is no restriction on gender role. However, women do housework and appropriate farm work mainly in role Chinese rural areas, while men mostly do farm work or work outside. 6. Contribution to Women’s income is from farming and household sideline operations mainly, accounting for about 50% 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 government agencies and the village group. Women may participate in the election of the village committee, and have the right to elect and be elected. Overall evaluation and Women enjoy a good status in the subproject area, and there is no restriction on gender role. key risks B—Gender analysis of women during resettlement Gender issue Concern/risk Impact of the Subproject Mitigation measures 1. Land, properties Women are deprived of Men and women have equal rights to compensation for land (1) Cash compensation and right to land or properties or acquisition, house demolition and resettlement; the compensation have no right to Subproject will not have any significantly adverse impact on compensation. women. 2. Production and Women are affected All AHs will lose part of land only, so the AHs will lose part of (1) Women will receive income restoration even more seriously, income only. Compensation fees will be used at the AHs’ compensation fees for land after land and receive less discretion. Only seriously affected households have to acquisition; (2) At least 30% of acquisition assistance. change their income sources. In addition to cash trainees of skills training will compensation, the AHs will be assisted in restoring income be women; (3) During through auxiliary measures (e.g., priority in employment construction, women will during construction, skills training and subsequent support). obtain at least 30% of unskilled jobs. 3. Increase of Women have a heavier The Subproject will not lead to gender inequalities. For most Monitoring gender burden or fewer households, resettlement impacts are not serious. inequalities opportunities. 4. Social network The social network is The Subproject will not affect the social network seriously. No impact system damaged. 5. Impact on Serious health or social The Subproject will not affect the villages seriously, but Providing assistance together health / increase problems due to some seriously affected households and vulnerable groups with the civil affairs of social problems resettlement (violence, will be faced with difficulties. department AIDS propagation, etc.)

4 Legal Framework and Policies

4.1 Laws, Regulations and Policies Applicable to Resettlement 52. The resettlement policies of the Subproject have been developed in accordance with the laws and regulations of the PRC, and ADB’s policies, including: (1) ADB policies ‹ Safeguard Policy Statement, June 2009 ‹ Safeguard Requirement 2: Involuntary Resettlement (2) Laws, regulations and policies of the PRC ‹ Land Administration Law of the PRC (amended on August 28, 2004) ‹ Rural Land Contracting Law of the PRC, effective from March 1, 2003 ‹ Regulations on the Implementation of the Land Administration Law of the PRC (Decree No.256 of the State Council), December 27, 1998 ‹ Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28) ‹ Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (MLR [2004] No.238) ‹ Notice of the General Office of the State Council on Doing a Good Job in the Employment Training and Social Security of Land-expropriated Farmers (SCO [2006] No.29) ‹ Notification of Ministry of Finance of PRC, Ministry of Land and Resources of PRC and The People`s Bank of China on Adjustment of Paid Using Policy of Additional Construction Land (Financial comprehension (2006) No.48) ‹ Notice of the Ministry of Labor and Social Security, and the Ministry of Land and Resources on Doing Well in the Social Security of Land-expropriated Farmers Practically (MLSS [2007] No.14) ‹ Real Right Law of the PRC, effective from October 1, 2007 ‹ Interim Regulations on Farmland Occupation Tax of the PRC, effective from January 1, 2008 ‹ Regulations of the PRC on the Disclosure of Government Information, effective from May 1, 2008 ‹ Urgent Notice of the General Office of the State Council on Further Regulating the Management of Land Acquisition and House Demolition, and Protecting People’s Lawful Rights and Interests Practically (SCO [2010] No.15) ‹ Notice of the Ministry of Land and Resources on Further Improving the Management of Land Acquisition, June 26, 2010 ‹ Urgent Notice of the General Office of the Ministry of Land and Resources on Conducting Strict Management to Prevent Illegal Land Acquisition (MLR [2013] No.28) ‹ Notice of the General Office of the Ministry of Land and Resources on Doing a Better Job in Disclosing City- and County-level Land Acquisition Information (MLRO [2014] No.29) ‹ Notification of Ministry of Finance of PRC, The state forestry administration of PRC on Adjustment of Acquisition Standard of Recovery Fee of Forest Vegetation to Guide to Save Intensive Forest Utilization (Finance and taxation (2015) No.122) (3) Regulations and policies of Henan Province ‹ Notice of the General Office of the Henan Provincial Government on Strengthening Land Control and Rigidly Enforcing Land Administration (HCGO [2007] No.33) ‹ Notification of Henan Development and Planning Committee and Ministry of Finance on Implementation of the Notification of National Development and Reform Commission and Ministry of Finance of PRC on Overall Rectification of Housing Construction Charge and Cancellation of Sectional Charging Items (Henan charge (2001) No.1019) ‹ Opinions of the Henan Provincial Labor and Social Security Department, Land and Resources Department, and Finance Department on Doing Well in the Employment Training and Social Security of Land-expropriated Farmers (HPLSS [2008] No.19) ‹ Opinions of the Henan Provincial Government on Trials on Social Endowment Insurance for Urban and Rural Residents (HPG [2011] No.58) ‹ Notice of the Henan Provincial Labor and Social Security Department, and Finance Department on Further Strengthening the Management of Special Employment Funds (YCS [2011] No.293)

‹ Notification of Department of Human Resources and Social Security of Henan Province on Announcement of Expense Standard of Social Security of Comprehensive Land Price to Land Acquisition Areas of Every District (Henan Human Resources and Social Security Office (2008) No.72) ‹ Notice of the Henan Provincial Labor and Social Security Department, and Finance Department on Issuing the Administrative Measures for Employment and Business Startup of Henan Province (YRSJY [2012] No.25) ‹ Notification of The People`s Government of Henan Province on Adjustment of Comprehensive Land Price Standard of Land Acquisition Areas in Henan Province (Henan Government (2016) No.48) ‹ Notice of the General Office of the Henan Provincial Government on Issuing the Special Corrective Plan for Land Acquisition and House Demolition (HCGO [2014] No.110) ‹ Notification of The People`s Government of Henan Province on Announcement of Canceling Stop Acquisition and Adjusting Relative Charging Items (Henan Government (2008) No.52) ‹ Measures for the Implementation of Henan Province on Provisional Regulations of Farmland Occupation Tax (No.124 of The People`s Government of Henan Province) ‹ Notification of Increase of Minimum Standard of Basic Pension of Basic Endowment Insurance of Urban and Rural Residents jointly issued by Department of Human Resources and Social Security and Ministry of Finance of Henan Province in March 2017 ‹ Notification of Department of Finance and Department of Forestry of Henan Province on Retransmission of the Notification of Ministry of Finance of PRC and The state forestry administration of PRC on Adjustment of Acquisition Standard of Recovery Fee of Forest Vegetation to Guide to Save Intensive Forest Utilization (Henan financial comprehension (2016) No.10) (4) Regulations and policies of Hebi City, and Qi and Xun Counties ‹ Notice of the Hebi City Government on Adjusting Compensation Rates for Ground Attachments and Young Crops on Land Acquired for State Construction (HCG [2012] No.11) ‹ Notice of the Hebi City Government on Issuing the Measures for the Implementation of Basic Endowment Insurance for Urban and Rural Residents of Hebi City (HCG [2014] No.34) ‹ Notice of the Qi County Government on Coordinating New and Old Compensation Rates for Ground Attachments and Young Crops in Land Acquisition (QCG [2012] No.30) ‹ Opinions of the Qi County Government on Securing Production Conditions and Livelihoods of Land-expropriated Farmers (QCG [2011] No.34)

4.2 Abstract of the ADB Policy © Involuntary resettlement 53. ADB’s policy on involuntary resettlement has three key elements: (1) compensation for lost properties, livelihoods and income; (2) assistance in resettlement, including the provision of a resettlement site, and appropriate facilities and services; and (3) assistance for restoration, as a minimum, to the standard of living in the absence of the project, taking into account the following basic principles: 1. Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning through a survey and/or census of displaced persons, including a gender analysis, specifically related to resettlement impacts and risks. 2. Carry out meaningful consultations with affected persons, host communities, and concerned nongovernmental organizations. Inform all displaced persons of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs. Pay particular attention to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensure their participation in consultations. Establish a grievance redress mechanism to receive and facilitate resolution of the affected persons’ concerns. Support the social and cultural institutions of displaced persons and their host population. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement

decisions should be preceded by a social preparation phase. 3. Improve or at least restore, the livelihoods of all displaced persons through (i) land-based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible. 4. Provide physically and economically displaced persons with needed assistance, including the following: (i) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required. 5. Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards. In rural areas provide them with legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing. 6. Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status. 7. Ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of nonland assets. 8. Prepare a resettlement plan elaborating on displaced persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. 9. Disclose a draft resettlement plan, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders. 10. Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of project’s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation. 11. Pay compensation and provide other resettlement entitlements before physical or economic relocation. Implement the resettlement plan under close supervision throughout project implementation. 12. Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and whether the objectives of the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports. 54. See Table 4-1.

Table 4-1 Principles for Resettlement Principles 1 Involuntary resettlement should be avoided where feasible. 2 The APs are granted compensation and rights that can at least maintain or even improve their livelihoods in the absence of the project. 3 The APs are given compensation and assistance in resettlement whether legal title is available or not.

4 If the land available to everyone is insufficient to maintain his/her livelihood, replacement in cash or in kind and other income-generating activities are provided for the lost land. 5 The APs fully understand their entitlements, the method and standard of compensation, the livelihood and income restoration plan, and the project schedule, and participate in the implementation of the RP. No forced relocation or economic transformation occurs, until: 1) Compensation at full replacement cost has been 6 paid to each AP; 2) The APs have received the other rights specified in the RP; and 3) Integrated income and livelihood restoration programs have been developed, and appropriate financial support is available to increase or at least restore their income and living standard.

Vulnerable groups are provided special assistance or treatment so that they lead a better life, and all APs should 7 have an opportunity to benefit from the project. At least two members of each AH receive skills training, including at least one woman. 8 The resettlement expenses are sufficient to cover all affected aspects.

9 The executing agency and an independent agency / third party should monitor the compensation, relocation and resettlement operations.

© Gender and development 55. ADB’s gender and development policy is a critical mainstreaming strategy in promoting gender equality, and includes the following key points: 1) Gender sensitivity: Particular attention should be paid to women’s needs and expectations in consideration of impacts of the ADB-financed project on men and women; 2) Gender analysis: A systematic analysis of the project’s impacts on men and women should be made to learn their economic and social connections; 3) Gender planning: A special strategy that offers equal opportunities to men and women should be developed; 4) Mainstreaming: ADB considers the gender issue in all aspects of the project, and encourages women to participate in decision-making in the development process actively.

4.3 Key Provisions of PRC Laws, Regulations and Policies 4.3.1 Abstract of applicable state laws and regulations 1. Provisions on land ownership and use right 56. The People's Republic of China resorts to a socialist public ownership i.e. an ownership by the whole people and ownerships by collectives, of land. Land in urban districts shall be owned by the State. Land in the rural areas and suburban areas, except otherwise provided for by the State, shall be collectively owned by farmers including land for building houses, land and hills allowed to be retained by farmers. (Articles 2 and 8 of the Land Administration Law of the PRC) 57. To meet the needs of public interests, collectively-owned lands, premises owned by entities and individuals or other real properties may be expropriated in accordance with the power scope and procedures provided by laws. As for the expropriation of collectively-owned land, it is necessary to, according to law and in full amount, pay such fees as land compensation fees, placement subsidies, compensations for the above-ground fixtures of the lands and seedlings, arrange for social security fees for the farmers whose land is expropriated, secure their livelihood and safeguard their legitimate rights and interests. As for the expropriation of the premises owned by entities and individuals or other real properties, it is necessary to make compensation for demolishment and relocation according to law and safeguard the legitimate rights and interests of the owners of the real properties expropriated; as for the expropriation of the individuals' residential houses, it is necessary to safeguard the housing conditions of the owners of the houses expropriated. (Article 42 of the Real Right Law of the PRC) 58. Men and women shall have the equal rights to contract the rural land. The women’s lawful rights to land contract shall be protected. No organizations or individuals shall exploit or infringe upon the right to operate contracted land that women shall enjoy. Within the duration of the contract, the party that lets the contract shall not withdraw or readjust the contracted land. (Articles 6, 26 and 27 of the Rural Land Contracting Law of the PRC) 2. Provisions on LA compensation rates 59. In acquiring land, compensation should be made according to the original purposes of the land acquired. Compensation fees for land acquired include land compensation fees, resettlement fees and compensation for attachments to or green crops on the land. The land compensation fees shall be 6-10 times the average output value of the three years preceding the acquisition of the cultivated land. The resettlement fee shall be calculated according to the number of agricultural population to be resettled. The number of agricultural population to be resettled shall be calculated by dividing the amount of cultivated land acquired by the per capital land occupied of the unit whose land is acquired. The resettlement fees for each agricultural person to be resettled shall be 4-6 times the average annual output value of the three years preceding the acquisition of the cultivated land. But the maximum resettlement fee per hectare of land acquired shall not exceed 15 times of the average annual output value of the three years prior to the acquisition. (Article 47 of the Land Administration Law of the PRC)

60. County-level and above local governments shall take practical measures so that the standard of living of farmers affected by land acquisition is not reduced by land acquisition. Land compensation, resettlement subsidy and compensation for ground annexes and crops shall be paid in full and timely pursuant to law. If the land compensation and resettlement subsidy pursuant to the prevailing laws and regulations are insufficient to maintain the former standard of living of the farmers affected by land acquisition or to pay the social security expenses of farmers who lose all land due to land acquisition, the governments of provinces, autonomous regions and cities directly under the Central Government shall approve an increased resettlement subsidy. If the sum of the land compensation and the resettlement subsidy attains the statutory upper limit and is still insufficient to maintain the former standard of living of the farmers affected by land acquisition, local governments may pay a subsidy from the income from compensated use of state land. The governments of provinces, autonomous regions and cities directly under the Central Government shall fix and publish the uniform annual output value standards or integrated land prices for land acquisition of all cities and counties, so that the same price applies to the same kind of land. For key construction projects of the state, land acquisition expenses must be listed in the budgetary estimate in full. (Article 12 of the Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration) 3. Provisions on the resettlement of LEFs 61. County-level and above local governments shall take specific measures to guarantee long-term livelihoods of farmers affected by land acquisition. For projects with a stable income, farmers may become a shareholder using the right to use of land used for construction approved pursuant to law. Within the urban planning area, local governments shall bring farmers who lose all land due to land acquisition into the urban employment system, and establish a social security system; out of the urban planning area, in acquiring land collectively owned by farmers, local governments shall reserve necessary arable land or arrange appropriate jobs for farmers affected by land acquisition within the same administrative area; farmers without land who do not have the basic living and production conditions shall be subject to non-local resettlement. (Article 13 of the Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration) 62. LEFs may choose the following modes of resettlement: 1) Agricultural resettlement: When rural collective land out of urban planning areas is acquired, land-expropriated farmers shall be first provided with necessary arable land using mobile collective land, contracted land turned over by contractors and arable land arising from land development so that they continue to pursue agricultural production; 2) Reemployment: Conditions shall be created actively to provide free labor skills training to land-expropriated farmers and place them to corresponding jobs. Under equal conditions, land users shall first employ land-expropriated farmers. When rural collective land within urban planning areas is acquired, land-expropriated farmers shall be included in the urban employment system and a social security system established for them; 3) Dividend distribution: When any land with long-term stable income is to be used for a project, the affected rural collective economic organization may become a project shareholder with compensation fees for land acquisition or rights to use construction land in consultation with the land user. The rural collective economic organization and rural households will receive dividends as agreed; and 4) Non-local resettlement: If basic production and living conditions are not available locally to land-expropriated farmers, non-local resettlement may be practiced under the leadership of the government in consultation with the rural collective economic organization and rural households. (Article 2 of the Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition) 63. LEFs’ production and livelihoods shall be secured in multiple resettlement modes, mainly including 1) Agricultural resettlement: In rural areas with increased farmland through land consolidation or much reserved collective land, such land shall be allocated to LEFs upon land acquisition in order to maintain their basic production conditions and income resources; 2) Resettlement with reserved land: This mode may be applied to urban construction land acquired within the master land utilization plan; reserved land shall be developed in compliance with the urban construction plan and utilized scientifically under strict government regulation; and 3) Social security funds for LEFs shall be made available under the unified leadership of local governments. (Notice of the Ministry of Land and Resources on Further Improving the Management of Land Acquisition, June 26, 2010) 4. Provisions on LA management 64. Uniform AAOV rates and location-based composite land prices shall be implemented

strictly in all aspects, and be adjusted every two or three years based on local economic development and per capita income level. 65. Compensation fees for land acquisition shall be made available timely and fully. All localities shall explore and improve depositing systems for compensation fees for land acquisition. (Notice of the Ministry of Land and Resources on Further Improving the Management of Land Acquisition, June 26, 2010) 5. Provisions on LA information disclosure 66. During land acquisition, the ownership of collective land of farmers and the right to contracted management of farmers’ land shall be maintained. Before land acquisition is submitted for approval pursuant to law, the use, location, compensation standard and resettlement mode of the land to be acquired shall be notified to farmers affected by land acquisition; the survey results of the present situation of the land to be acquired shall be confirmed by rural collective economic organizations and farmers to be affected by land acquisition; if necessary, the land and resources authorities shall organize a hearing in accordance with the applicable provisions. The materials for notification to and confirmation by the farmers affected by land acquisition shall be taken as requisite materials for approval for land acquisition. Accelerate the establishment and improvement of the coordination and judgment mechanism for disputes over compensation and resettlement for land acquisition to protect the lawful rights and interests of farmers affected by land acquisition and land users. Approved matters of land acquisition shall be disclosed unless in special cases. (Article 14 of the Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration) 67. An administrative organ shall disclose government information in a timely and accurate manner. Where any administrative organ finds out any false or incomplete information that has affected or may affect social stability or has disturbed or may disturb social management order, it shall disclose the corresponding accurate government information within its scope of duties to clarify. (Article 6 of the Regulations of the PRC on the Disclosure of Government Information) 68. An administrative organ shall disclose the government information that shall be voluntarily disclosed through government bulletins, government websites, news releases, newspapers and periodicals, broadcasting, television or any other means easy for the general public to access. (Article 15 of the Regulations of the PRC on the Disclosure of Government Information) 69. The people’s governments at various levels shall set up a place for consulting government information at national archives and public libraries and equip with corresponding facilities and equipments to provide convenience for citizens, legal persons or other organizations to access government information. An administrative organ may, in light of the actual needs, set up such places as public consulting room, place for demanding materials, information board and electronic information screen for government information disclosure. An administrative organ shall provide the government information voluntarily disclosed by it to national archives and public libraries in a timely manner. (Article 16 of the Regulations of the PRC on the Disclosure of Government Information) 70. City and county governments shall strengthen the active disclosure of land acquisition information by means of official website, newspaper, broadcast, television, micro-blogging, etc. Citizens, legal persons and other organizations may apply for information disclosure with valid certificates for their special purposes. Land acquisition information to be disclosed actively shall be disclosed to the public within 10 working days after approval by superior authorities, including the land acquisition announcement, and compensation and resettlement program for land acquisition. (Notice of the General Office of the Ministry of Land and Resources on Doing a Better Job in Disclosing City- and County-level Land Acquisition Information (MLRO [2014] No.29)) 4.3.2 Abstract of applicable provincial regulations and policies 71. Land and resources authorities shall examine construction projects strictly in accordance with the laws and regulations on land administration, industry policies, and construction land quotas, and shall not approve farmland conversion or land use if any compensation and resettlement program for land acquisition cannot resettle LEFs properly. 72. The provincial labor and social security department shall develop local minimum AAOV rates and location-based composite land prices based on land grade, input, type and quality, and farm product prices together with the development and reform, agriculture, statistics, and other departments concerned, and submit them to the provincial government for approval. Local governments shall increase compensation rates if they are insufficient for LEFs to maintain the former living standard or insufficient to cover social security costs. The agriculture and civil affairs

departments shall study measures for the distribution of land compensation fees within rural collective economic organizations and supervise the use thereof. 73. After collective land within the urban planning area is acquired as state-owned land, the local government shall set aside a certain amount of land to resettle LEFs, or include LEFs in the urban employment and social security systems. 74. City and county governments shall offer free labor skills training to LEFs to help them get employed, and land users shall recruit LEFs with priority. (Opinions of the Henan Provincial Government on Implementing the Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (HPG [2004] No.80)) 75. LEFs with a per capita cultivated area of less than 0.3 mu shall be included in employment training and social security. 76. Local governments shall develop uniform urban-rural human resources markets to improve the employment and business startup environment for LEFs, and guide enterprises, communities and public institutions to employ LEFs. 77. Public employment service agencies shall be open to LEFs for free to provide them with employment consulting, guidance, training and referral services to promote their employment. Unemployed LEFs shall be registered to receive employment services for unemployed urban residents. 78. For land acquisition within the urban planning area, the government shall appropriate funds from land transfer fees to promote the employment of LEFs, and develop public welfare jobs to place LEFs with difficulty in employment. 79. Local governments shall strengthen occupational training for LEFs of labor age using educational resources to improve their employment and business startup capacity. LEFs getting trained will receive training subsidies for unemployed urban residents from local public finance. (Opinions of the Henan Provincial Labor and Social Security Department, Land and Resources Department, and Finance Department on Doing Well in the Employment Training and Social Security of Land-expropriated Farmers (HPLSS [2008] No.19)) 80. Land acquisition and house demolition rates and procedures shall be implemented strictly to prevent and mitigate conflicts and disputes from the very beginning. First, the compensation rates for land acquisition specified in the Notice of the Henan Provincial Government on Adjusting Location-based Composite Land Prices for Land Acquisition of Henan Province (HPG [2013] No.11) shall be complied with strictly. Second, land acquisition shall be notified and adequate consultation conducted in advance. Third, LEFs shall be included in social security to ensure that their livelihoods are secured practically. 81. A social stability risk evaluation mechanism, and a dispute arbitration and mediation mechanism for land acquisition and house demolition shall be established to handle conflicts timely, effectively and lawfully. (Notice of the General Office of the Henan Provincial Government on Issuing the Special Corrective Plan for Land Acquisition and House Demolition (HCGO [2014] No.110))

4.4 Main Differences between the ADB Policy and PRC Laws © Compensation and resettlement for houses 82. Difference: ADB policies require that compensation is based on replacement cost. Chinese laws think that depreciation is reasonable, and the compensation rate for the same structure should be lower than that for new housing. Solution: Compensation rates in all ADB-financed projects are based on replacement cost. © Compensation for land 83. Difference: ADB policies require that compensation should be sufficient to offset any income loss, and restore long-term income-generating potential. Chinese standards are based on AAOV. 84. Solution: An early-stage solution is to provide replacement land, which is hardly practical. Cash compensation is the preference of most people, though they cannot ensure the rational use of such compensation. Therefore, further technical support is needed to monitor the income of seriously affected households, especially those in vulnerable groups, and local governments should provide assistance to those in need. © Compensation and resettlement of vulnerable groups 85. Difference: ADB 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. 86. Solution: Special funds are available to assist the vulnerable groups, who will be identified during the DMS. All measures have been specified in the RP. © Consultation and disclosure 87. Difference: ADB policies require APs are fully informed and consulted as soon as possible. Chinese provisions have improved the transparency of disclosure and compensation. However, APs still play a weak role in project decision-making, and the disclosure period is usually too short. 88. Solution: Consultation has begun at the early stage (before and during the technical assistance). The Hebi PMO agrees to disclose the RP to APs as required by ADB. © Lack of legal title 89. Difference: ADB policies require all demolished houses, whether lawful or not, should be compensated for at the same rates. According to Chinese laws, people without local registered residence are entitled to the same compensation as local people. In addition, prevailing Chinese laws stipulate that no compensation should be provided for the acquisition of illegally owned land and houses. 90. Solution: For an ADB financed project, all APs, whether lawful or not, whether having ownership or right of use, will be protected, and provided with compensation or assistance. © Resettlement monitoring, evaluation and reporting 91. Difference: ADB requires that internal and external resettlement monitoring be conducted. However, there is no such requirement in Chinese laws, expect for reservoir projects. 92. Solution: Internal and external resettlement monitoring systems have been established for all ADB financed projects, and this has been included in the RP. The requirements for internal and external monitoring reporting are specified in the RP.

4.5 Cut-off Date 93. The cut-off date for the eligibility for compensation is fixed preliminarily and disclosed to AHs at 30th September 2017 during the DMS and socioeconomic survey, and will be disclosed again upon release of the LA announcement expected in February 20187. Local governments will not issue any new permits for construction in the area affected by LA of the Project after the preliminary cut-off date. 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.

4.6 Compensation Rates 94. The following compensation rates apply until November 2017. If the local government issues any higher rate at the resettlement implementation stage, such new rate will apply to all AHs. 4.6.1 Permanent LA 95. The location-based composite land price for LA for the Subproject is based on the Notice of the Henan Provincial Government on Adjusting Location-based Composite Land Prices for Land Acquisition of Henan Province (HPG [2016] No.48), as shown in Table 4-2.

Table 4-2 List of Location-based Composite Land Prices Location-based land price County Town Village (yuan/mu) Weixian 39000 Xun Weixian Nanzhifang, Peiying, Weilizhuang, Qiangongtang, 38000 Hougongtang Xigang, Sanjiaotun 39500 Woluan, Huangwangmiao, Mawan, Huojie, Yan, Dalizhuang, Qi Xigang 37500 Shinaimiao, Kangzhuang, Zangkou Fangzhai, Hekou, Doujie, Qinjie 37500 Note: Above compensation rates are based on Location-based Land Price issued by Henan Province Government, but not on the Annual Average Output Value. These rates are equivalent to around 30 times annual net income of cultivation in Hebi city.

7 During the DMS, the cut-off date was preliminarily set and disclosed to affected villages and AHs; once the local government gets the LA approval file from Henan Province Government and issues the announcement of LA in project area, the finalized cut-off date will be set and disclosed again. 34

4.6.2 Temporary Land Occupation 96. For the land occupied temporary for the Subproject, compensation will be paid directly to proprietors based on the actual period of occupation. 97. According to the arrangement of construction progress, the time limit of temporary land occupation is one year, and another half a year is taken into account as the reclamation period. Therefore, the compensation of temporary occupation of farmland depends on the production value per mu per year and a half. The production value per mu of dry land is 2,000 yuan per mu per year calculated by the crop compensation fee regulated in the Notification of The People`s Government of Hebi on Adjustment of Compensation Standard of Ground Attachment and Crop on National Construction and Acquiring Land of Hebi City (He Government (2012) No.11), and the production value per mu of unused land is half of that of the dry land, namely, 1,000 yuan per mu per year. 98. The subsidy on cultivated land`s crop reduction loss for temporary land occupation is calculated by the production value per mu per half a year. 99. According to the Notification of The People`s Government of Henan Province on Announcement of Canceling Stop Acquisition and Adjusting Relative Charging Items (Henan Government (2008) No.52), the reclamation fee of temporary land occupation in the project is 3,000 yuan per mu. 100. See Table 4-3.

Table 4-3 Compensation Rates for Temporary Land Occupation Output value Compensation Compensation Item Type yuan per mu per Rates times year yuan/mu Compensation for temporary Farmland 2000 1.5 3000 occupation Unused land 1000 1.5 1500 Subsidy on cultivated land`s Farmland 2000 0.5 1000 crop reduction loss reclamation fee of temporary Farmland \ \ 3000 land occupation

4.6.3 Young Crops and Attachments 101. The compensation rates for young crops and attachments are based on the Notice of the Hebi City Government on Adjusting Compensation Rates for Ground Attachments and Young Crops on Land Acquired for State Construction (HCG [2012] No.11). Local governments can opt for lump sum compensation at the rate of 7,000 yuan/mu for all the crops and ground attachment, or chose compensation on the basis of calculation for each item, which depends on the complexity of affected attachments and willingness of affected households. After receiving the compensation, the owner can hold the disposal right of affected ground attachments. Especially for trees (timber and fruit), they can transplant them to other land or sale to other households or entities at market prices. See Tables 4-4 and 4-5. 102. The similar implemented projects are referred, the compensation price per unit of forest and woods is 4000 yuan per mu of forest land.

Table 4-4 Compensation Rates for Young Crops Output value Compensation Rates No. Type yuan per mu per year yuan/mu 1 Irrigated land 2400 1200 2 Dry land 2000 1000 Note: Due to the LA will only affect the crops of one season, while there are two seasons of crops on farmland in Hebi, the local government will only pay for half of the output value of farmland for young crops.

Table 4-5 Compensation Rates for Ground Attachments Rate No. Item Rate Unit Remarks (yuan) Diameter at breast height 5 (BHD): =<5cm BHD: 6-10cm 10 Scattered Poplars, willows, BHD: 11-15cm 25 After receiving the 1 deciduous / locusts, elms, etc. BHD: 16-20cm 38 compensation, the trees BHD: 21-25cm 45 owner can transplant BHD: 26-30cm 55 them to other land or BHD: 31cm or more 75 sale to other households Ground diameter: =<4cm 15 or entities at market Apples, peaches, Ground diameter: 4.1-6cm 70 prices. Scattered plums, apricots, 2 Ground diameter: 6.1-8cm / 120 fruit trees pears, cherries, Ground diameter: 8.1-10cm 200 dates, etc. Ground diameter: >=10.1cm 280 3 Nurseries Arbor nurseries Over 3,000 trees/mu mu 10000 4 Water tanks Masonry m2 200 Compensation rate increased by 150 yuan / 6 Wells 10m deep, masonry (inner diameter 1-1.5m) 1800 for each 1m of additional depth Water Earth m 10 7 canals Masonry Cross section: 1m2 or more 50 Telegraph 8 11-15m high / 260 poles Note: above compensation rates are implemented smoothly in other projects in project area and are accepted by affected HHs and entities.

4.6.4 Tax and Fee Rates

Table 4-6 Tax and Fee Rates on LA

No. Items Rates Policies Documents Irrigated land: 8671 Notice of the General Office of the Henan Provincial Government Land reclamation 1 yuan/mu; dry land: on Strengthening Land Control and Rigidly Enforcing Land costs 7337 yuan/mu Administration (HCGO2007] No.33) Measures of Henan Province for the Implementation of the Interim Farmland 2 14667 yuan/mu Regulations on Farmland Occupation Tax of the PRC (Decree occupation tax [2009] No.124 of the Henan Provincial Government) Notification of Henan Development and Planning Committee and Ministry of Finance on Implementation of the Notification of LA management National Development and Reform Commission and Ministry of 3 2.8% of LA costs costs Finance of PRC on Overall Rectification of Housing Construction Charge and Cancellation of Sectional Charging Items (Henan charge (2001) No.1019) Compensation Qi Measures of Henan Province for the Implementation of the Interim fees for using County :10672yuan/ Regulations on Farmland Occupation Tax of the PRC (Decree 4 additional mu; Xun County 9338 [2009] No.124 of the Henan Provincial Government) construction land yuan/mu Notification of Department of Finance and Department of Forestry of Henan Province on Retransmission of the Notification of Forest vegetation Ministry of Finance of PRC and The state forestry administration 5 6670 yuan/mu recovery fee of PRC on Adjustment of Acquisition Standard of Recovery Fee of Forest Vegetation to Guide to Save Intensive Forest Utilization (Henan financial comprehension (2016) No.10) Notice of the Henan Provincial Labor and Social Security Social security 6 4,290 yuan/mu Department on Disclosing Location-based Composite Land Prices fee for LEFs for Land Acquisition (HPLSS [2008] No.72)

4.7 Entitlement Matrix 103. The entitlement matrix has been established in accordance with the applicable policies in this chapter, as shown in Table 4-7.

Table 4-7 Entitlement Matrix Type of Degree of impact APs Compensation and resettlement policy Compensation rates impact LA 230.64 mu of 246 households with 1) Cash compensation: as per location-based composite 1) Compensation rates: collective land, 1,136 persons in 21 land price Weixian Village, Weixian Town 39,000 yuan/mu; Nanzhifang, including 43.7 mu of villages in 2 towns in 2) Agricultural development: land transfer, crop Peiying, Weilizhuang, Qiangongtang, Hougongtang villages: irrigated land two counties restructuring, etc.; 38,000yuan/mu; Xiang, Sanjiaotun villages, Xigang Town: 39,500 (18.95%), 168.96 mu 3) Employment: Social and project jobs, and yuan/mu; Woluan, Huangwangmiao, Mawan, Huojie, Yan, of dry land (73.26%) small-amount business startup loans will be offered. Dalizhuang, Shinaimiao, Kangzhuang, Zangkou, Fangzhai, Hekou and 17.98 mu of 4) Endowment insurance: LEFs may cover higher Villages, Xigang Town: 37,500 yuan/mu. See details in table 4-2. woodland (7.8%) contribution levels of endowment insurance for urban 2) Distribution mode: For contracted land, LA and young crop and rural residents to receive higher pensions. compensation is paid directly and fully to AHs without land 5) Skills training: Free skills training will be offered to the reallocation nor any retention by village collective; for AHs. non-contracted land, LA and young crop compensation is paid directly to the village collective and will be used for public welfare of all the villagers. 3) All compensation will be paid prior to the LA. Temporary 385 mu of collective 109 households with 1) Compensation will be paid directly to proprietors See details in table 4-3. land land, including 327.7 521 persons in 3 towns based on the actual period of occupation. occupation mu of dry land and in two counties 2) Temporary land occupation will be notified in advance. 57.3 mu of unused 3) The occupied land will be restored by the contractor. land Women 827 females Affected women 1) Making at least 30% of unskilled jobs first available to women (72 out of 240 permanent jobs); 2) Making free skills training first available to women, in which at least 50% of trainees are women (425 out of 850 person-times); 3) Women will receive relevant information during resettlement, and are able to participate in resettlement consultation. A special women’s FGD will be held to introduce resettlement policies. Vulnerable \ None (Applied if any 1)Granting an extra living subsidy See details in section 5.4. groups one identified during 2)Giving priority to them during resettlement, such as (including LAR implementation) receiving skills training, taking public welfare jobs and ethnic jobs generated by the Subproject, and applying for minorities small-amount secured loans population) 3)Including eligible vulnerable groups in the MLS system 4)Offering urban and rural medical assistance to eligible vulnerable groups

Significantly 16 HHs with 74 HH and APs with Giving priority to them during resettlement, such as affected persons significant impacts receiving skills training, taking public welfare jobs and persons jobs generated by the Subproject, and applying for small-amount secured loans. Making jobs available to at least one person from each significantly affected HH. Ground Scattered fruit and Proprietors Ground attachments will be compensated for as See Table 4-5 and Section 5.5. attachments deciduous trees, stipulated. trees, water tanks, wells, telegraph poles, canals, etc. Grievance \ All APs Free; all costs so reasonably incurred will be disbursed redress from the contingencies

5 Resettlement and Income Restoration 5.1 Objectives and Principles of Resettlement 5.1.1 Objectives 104. The objective of resettlement of the Subproject is to ensure that the APs benefit from the Subproject, and their living standard is improved or at least restored to the pre-project level. The objectives of resettlement of the Subproject are: 1) All affected ground attachments are compensated for at replacement cost; 2) The farmers affected by LA are resettled properly, and their income is restored or improved. All affected farmers will receive assistance after LA until full livelihood restoration. 5.1.2 Principles 105. The main principles include: 1) The APs should participate in the whole process of resettlement. It is necessary to consult with representatives of the APs on compensation rates, restoration and compensation payment, etc. 2) Compensation should be paid to proprietors fully and directly. Special accounts for compensation payment should be established so that no individual or organization (including township government/village committee) would withhold compensation. 3) Compensation for ground attachments and other properties at full replacement cost Full replacement cost should be calculated based on fair market value, transaction cost, accrued interest, transition and restoration costs, and other appropriate costs. Compensation should not be discounted or taxed, and must be paid to proprietors based on open rates. 4) Assistance for vulnerable groups Vulnerable households should have priority in resettlement housing selection, employment, service provision, and livelihood restoration, etc.

5.2 Income Restoration Program for Households Affected by LA 106. According to the survey, almost all AHs support the Subproject and LA. All of them request cash compensation for LA, and expect to solve their future livelihood problems through various measures. Through consultation with the affected village committees and AHs during the socioeconomic survey, restoration programs have been developed based on degree of impact, land availability and their expectations. 107. The slightly affected village groups will be subject to cash compensation in strict conformity with the applicable state and local policies. Compensation will be paid directly to the affected village groups and households timely; the AHs may continue farming on their remaining land, and use LA compensation to carry out income-generating activities, such as commerce and transport. For the seriously affected village groups, such measures as skills training, nonagricultural employment and social security will be taken in addition to cash compensation. 108. The livelihood and income restoration programs under the Subproject are as follows: 5.2.1 Cash Compensation and Distribution 109. Distribution programs of LA compensation fees will be developed through adequate consultation, and submitted to town governments for approval. For contracted land, LA and young crop compensation is paid directly to AHs without land reallocation; for non-contracted land, LA and young crop compensation is paid directly to the village collective. 110. The AHs may take nonagricultural livelihood restoration measures with the assistance of the government after receiving cash compensation. 5.2.2 Agricultural Development 111. Since most of the AHs will affected slightly by LA and will have much remaining land, agricultural development will be an important means to promote their livelihood restoration. The following measures will be taken: 1) Land transfer: Since many local villagers work or do business outside, they have contracted their land to other villagers. Local governments also encourage land transfer actively to prevent land from being laid idle and increase land utilization rate. It is learned that the average price of land transfer is 600-800 yuan/mu per annum (market price). 2) Soil improvement: The AHs may improve soil quality by such means as formulated fertilization with the assistance of local township agrotechnical stations to increase agricultural output and income, and make up LA losses. 3) Crop restructuring: Currently, the affected village groups grow basic crops with stable 40

income but low income, such as wheat and corn. After LA, the AHs may switch to commercial crops to increase agricultural income, since more labor force can be input into litter land. 4) Enhanced field management: QCG would organize 4 winter wheat management teams with 15 technicians each to conduct investigation, offer training and technical guidance on winter wheat management and pest control, and distribute relevant technical information in townships. This will improve agricultural efficiency and land utilization rate, thereby increasing agricultural income.

5.2.3 Employment 112. 798 laborers (406 males and 392 females) will be affected by LA for the Subproject, averaging 3.24 per household. Their livelihood restoration will be promoted by offering more job opportunities. 1. Employment services 113. According to the Opinions of the Henan Provincial Labor and Social Security Department, Land and Resources Department, and Finance Department on Doing Well in the Employment Training and Social Security of Land-expropriated Farmers (HPLSS [2008] No.19), local public employment service agencies should be open to LEFs for free to provide them with employment consulting, guidance, training and referral services to promote their employment. Unemployed LEFs will be registered to receive employment services for unemployed urban residents. 2. Social jobs 114. The Qi and Xun County Labor and Social Security Bureaus have been organizing initiatives for unemployed residents, including large job fairs. In addition, the Xun County Employment and Social Security Service Center will further improve the employment service platform for LEFs, and offer one-stop services to them, including job referral, employment guidance, policy consultation, social insurance, and file management. It is estimated that about 260 permanent jobs will be offered to affected persons totally. 3. Employment under the Subproject 115. The county labor and social security bureaus will take a series of measures to promote employment and recommend at least 260 permanent jobs for affected persons though socialized employment. The Subproject will generate about 150 temporary unskilled jobs at the construction stage. In the stage of operation and maintenance of the project, 30 permanent jobs will be generated to the affected persons.

Table 5-1 Employment Program of the Subproject Type Description Jobs offered Income level Affected population The county labor and social 260 permanent 3,000 security bureaus will take a Social employment jobs( at least 78 yuan/month on (1) 246 households with series of measures to for females) average 1,136 persons, incl. 798 promote employment. laborers (406 males and 392 150 part-time females). unskilled jobs 180 yuan/day, (2) For one significantly Employment at the ( at least 45 for increasing per Temporary unskilled jobs affected households, at least construction stage females), 30 capita income by one permanent job will be days on 5,400 yuan provided to ensure that their average livelihood are restored in a Safety inspectors, 30 permanent 2,000 Jobs generated at sustainable manner. landscaping administrators, jobs (at least 9 yuan/month on the operation stage workers, cleaners, etc. for females) average

116. The township labor and social security offices will collect employment information and distribute it in the affected villages, so that APs may choose suitable jobs themselves. During employment, employers will enter into labor contracts with employees, offer necessary safety and pre-job training, and grant pays that are not less the prevailing minimum wage standard of Hebi City (1,570 yuan/month or 14.5 yuan/hour in Qi County and 1,420 yuan/month or 13 yuan/hour in Xun County for full-time laborers after October 1, 2017). During employment, the principle of equal pay for equal work will be applied, but the use of child labor is prohibited. 4. Small-amount business startup loans 117. In order to promote the business startup of laborers, registered unemployed urban 41

residents and residents having difficulty in employment (including APs by LA) may be entitled to small-amount secured business startup loans with interests discounted by public finance at an interest rate of not more than 3% higher than the prevailing benchmark loan rate published by the People’s Bank of China, for a term of not more than two years, and with a credit line of 50,000 yuan. The APs will have priority in receiving such loans during independent business startup. 118. The application and disbursement procedure is as follows: a) Voluntary application: A borrower files a written application with the township labor and social security office, and submits relevant materials and certificates. b) Review and recommendation: The township labor and social security office investigates the applicant’s eligibility, credit standing, business place, market prospect, personal capacity, etc., and gives a preliminary opinion to the guarantee agency. c) Guarantee: The guarantee agency qualifies the applicant and examines its project, and offers guarantee if the applicant is eligible. d) Disbursement: The borrower enters into a loan contract with and receives the loan from the agent bank. 5.2.4 Social Security 119. All the affected persons are not eligible for the endowment insurance of LEFs, however the latest Basic Endowment Insurance for Urban and Rural Residents can help to improve the pension and living condition for each AP in the future, especially for the aged members and who are nearing to get aged in the AHs. In Qi County, new-type rural social endowment insurance has been implemented since 2009, with 80% of rural residents covered in that year alone. In 2012, new-type rural social endowment insurance merged with social endowment insurance for urban residents into social endowment insurance for urban and rural residents. In 2014, HCG issued the Notice of the Hebi City Government on Issuing the Measures for the Implementation of Basic Endowment Insurance for Urban and Rural Residents of Hebi City (HCG [2014] No.34), stipulating that: 1) Coverage: Urban and rural residents having attained 16 years (excluding active students), other than workers of state organs and public institutions, and not covered by basic endowment insurance for employees may cover basic endowment insurance for urban and rural residents. 2) Fundraising: 1) Individual contribution: The insured will pay premiums at one of the 16 levels (100, 200, 300, 400, 500, 600, 700, 800, 900, 1,000, 1,500, 2,000, 2,500, 3,000, 4,000 and 5,000 yuan per annum) voluntarily. 2) Government subsidy: Those choosing levels 100-400 yuan will receive a subsidy of 30 yuan per capita per annum, including 20 yuan from provincial finance and 10 yuan from City finance; those choosing levels 500 yuan and above will receive a subsidy of 60 yuan per capita per annum, including 40 yuan from provincial finance and 20 yuan from City finance. 3) Pension: 1) Basic pension: basic pension fixed by the central government, plus a subsidy of 3 yuan per capita per month from provincial and City finance, and a subsidy of not less than 5 yuan from county/district finance; and 2) Monthly individual account pension: balance of the individual account divided by 139. 4) Eligibility for receiving pension: Individuals having covered basic endowment insurance for urban and rural residents having attained 60 years, having paid premiums for 15 years and not receiving basic pension may receive a pension monthly. 120. The contribution and pension levels of endowment insurance for urban and rural residents can be calculated from the above policy provisions. See Table 5-2.

Table 5-2 Contribution and Pension Levels of Endowment Insurance for Urban and Rural Residents (yuan) Contribution Annual Borne by Total of Borne by Monthly Annual Annual pension Total level contribution individual 15 years individual pension subsidy 100 130 100 1950 1500 94 1128 96 1224 200 230 200 3450 3000 105 1258 96 1353 300 330 300 4950 4500 116 1387 96 1483 400 430 400 6450 6000 126 1517 96 1612 500 560 500 8400 7500 140 1685 96 1781 600 660 600 9900 9000 151 1815 96 1910 700 760 700 11400 10500 162 1944 96 2040 800 860 800 12900 12000 173 2074 96 2169 900 960 900 14400 13500 184 2203 96 2299

1000 1060 1000 15900 15000 194 2333 96 2428 1500 1560 1500 23400 22500 248 2980 96 3076 2000 2060 2000 30900 30000 302 3628 96 3723 2500 2560 2500 38400 37500 356 4275 96 4371 3000 3060 3000 45900 45000 410 4923 96 5018 4000 4060 4000 60900 60000 518 6218 96 6313 5000 5060 5000 75900 75000 626 7513 96 7608 Note: 1. The minimum basic pension approved by the State Council is 70 yuan per capita per month. The Department of Human Resources and Social Security and Department of Finance of Henan Province jointly issued the Notification of Increase of Minimum Standard of Basic Pension of Basic Endowment Insurance of Urban and Rural Residents. The notification stipulated that from January 1st, 2017, the minimum standard of basic pension of basic endowment insurance of urban and rural residents increased to 80 yuan per person per month from primary 78 yuan per person per month, the object was the personnel who enjoyed the treatment of basic endowment insurance of urban and rural residents. 2. The total amount of county/district, City and provincial subsidies is 8 yuan per capita per month.

121. All persons affected by LA have covered basic endowment insurance for urban and rural residents. Since pensions are low (mostly 100-500 yuan per annum), the APs may increase their contribution levels voluntarily after receiving LA compensation to receive higher pensions when attaining statutory age. In addition, APs employed in town may cover endowment insurance for urban employees to receive higher pensions. If the laborers get employed permanently in the public sectors or private companies and pay premiums for 15 years, they will be covered by the urban employee’s basic endowment insurance and receive same pension (average 2100 yuan/mouth in 2014 in Henan Province) as urban retired employees.

5.2.5 Skills Training 122. An important measure for employment is to improve labor skills through training, which is organized by the Qi and Xun County Labor and Social Security Bureaus mainly. 123. The Qi and Xun County Labor and Social Security Bureaus offer skills and business startup training every year, especially for rural households with difficulties and LEFs, covering computer, electric sewing, textile, tailoring, welding, electrics, driving, beauty care, hairdressing, restaurant service, etc., offered for free to migrant workers, laid-off workers and LEFs. Training costs are disbursed from county-level public finance. It is expected that 84 person-times training will be provided to persons affected by LA under the Subproject from 2018 to 2019 on the basis of their demands. See Table 5-3.

Table 5-3 Summary of Local Training Programs Scope of Training Person-times Total Agency Funding Affected Duration training phases per session person-times responsible source population 246 Computer Jun., Jul. 4 30 120 households Electric with 1,136 Oct., Dec. 4 20 80 sewing persons, incl. 798 Textile Oct., Dec. 4 20 80 laborers Tailoring Oct., Dec. 4 20 80 Qi and Xun (406 males Special Welding May, Aug. 4 30 120 County Labor and 392 local Electrics May, Aug. 4 20 80 and Social females) fiscal Driving Jul., Sep. 4 20 80 Security funds Beauty care Bureaus and May 2 25 50 hairdressing Restaurant Mar., May 4 40 160 service 85050% for Total \ 34 225 females 124. Regarding 16 severely affected household with more than 10% income loss, priorities during receiving skills training, taking public welfare jobs and jobs generated by the Subproject, and applying for small-amount secured loans will be provided to them. The provision of this paragraph regarding the priority support to the severely households applies to all relevant measures under sub-section 5.2. 43

5.3 Women’s Development Measures 125. In the Subproject, women will be encouraged to participate in the implementation of this RP and play an important role in income restoration. In addition, the PMO has female staff members in order to communicate with women more effectively and ensure women’s participation. Job opportunities will be made available to women at the construction and operation stages. The gender and social development action plans will detail the opportunities for women to benefit from the Subproject. 1) Small-amount business startup loans for women 126. Small-amount secured business startup loans of up to 80,000 yuan per capita are available to women doing business individually or 100,000 yuan per capita for women doing business together. 2) Equal rights of women in the development of resettlement programs 127. During public consultation, women enjoy equal rights of participation and decision-making. Not less than 30% of participants of village meetings or congresses discussing resettlement programs will be women. All resettlement agencies will have female staff members. 3) Priority of women in livelihood restoration 128. Affected women will have priority in enjoying the above livelihood restoration measures, especially employment and skills training. 129. Special measures have been developed to protect the equal rights of females and to promote their income restoration and social development. See details in Table 3-11 and Table 4-7.

5.4 Supporting Measures for Vulnerable Groups 130. During resettlement, the PMO, IA and local government will pay particular attention to vulnerable groups. A supporting fund for vulnerable groups (1% of basic resettlement costs) will be established to support vulnerable groups affected by the Subproject. 131. According to the DMS, no vulnerable group has been identified. Affected vulnerable population will be further identified during the implementation of RP. During resettlement, additional supporting measures will be taken for them, including: 1) Granting an extra living subsidy 132. The government and PMO will grant a one-time living subsidy of 2,000-4,000 yuan per household as the case may be. 2) Giving priority to them during resettlement 133. Laborers in vulnerable households will have priority in receiving skills training, taking public welfare jobs and jobs generated by the Subproject, and applying for small-amount secured loans. 3) Including eligible vulnerable groups in the MLS system 134. Eligible vulnerable persons affected by the Subproject will be included in the MLS system of Hebi City, and receive an average MLS benefit of 320 yuan per capita per month. In 2017, the minimum standard of living of urban resident in Hebi City is 450 yuan per person per month and 430 yuan per person per month for residents in urban area and both counties, respectively, and the minimum standard of living of rural residents is 3,210 yuan per person per month. The monthly basic cost of living allowances of urban and rural residents per capita is 250 yuan and 142 yuan, respectively. The basic standard of living of urban destitute population increases to 585 yuan per person per month and the basic standard of living of rural destitute population increases to 4,176 yuan per person per year. At the same time, Hebi divides the subsidy standard of care and nursing for urban and rural destitute population into three classes, full-nursing population, semi-nursing population and full-self care population for the first time, the subsidy of full-nursing and semi-nursing population is 180 yuan and 80 yuan per person per month, respectively, the full-self care population have no subsidy. 4) Offering urban and rural medical assistance to eligible vulnerable groups 135. Urban and rural medical assistance will be offered to eligible vulnerable groups pursuant to the Notice of the Hebi City Government on Issuing the Measures for the Implementation of Medical Assistance for Urban and Rural Residents with Difficulty of Hebi City (HCG [2011] No.43). Subjects: ‹ Registered local residents entitled to urban or rural MLS Reimbursable fees abide by the following standard when salvage objects fall ill and are hospitalized:

‹ Rural objects with basic cost of living allowances. Fees will be reimbursed by the regulation in new rural cooperative medical care system firstly, the rest of the fees will be supported by the ratio of 50%, the maximum accumulated individual salvage money is 5,000 yuan per year. ‹ Personal cumulative limit 5,000 yuan for urban MLS subjects; ‹ 3. Rural objects with five guarantees. Fees will be reimbursed by the regulation in new rural cooperative medical care system firstly, the rest of the fees will be supported in full amount, the maximum accumulated individual salvage money is 20,000 yuan per year. ‹ Personal cumulative limit 10,000 yuan for members of urban and rural households with special difficulties

5.5 Restoration Program for Ground Attachments 136. For affected ground attachments, cash compensation will be granted to proprietors at replacement cost for replacement or reconstruction. Infrastructure affected during construction will be compensated for by the contractor and restored by proprietors or the contractor. 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. 137. The affected ground attachments, including trees, greenhouses and tombs, will be compensated for in cash at replacement cost.

6 Organizational Structure 6.1 Resettlement Implementation and Management Agencies 6.1.1 Organizational Setup 138. 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, the water resources, land and resources, etc. will participate in and support resettlement implementation. Each affected township or village has one or two chief leaders responsible for resettlement. The agencies responsible for LA and HD in the Subproject are: ‹ Hebi Project Leading Group ‹ Hebi PMO ‹ HPRSAD ‹ Qi Subproject Leading Group ‹ Qi PMO ‹ Xun Subproject Leading Group ‹ Xun PMO ‹ Qi County Water Resources Bureau ‹ Xun County Water Resources Bureau ‹ Xigang, Weixian and Xinzhen Town Governments ‹ Affected village/community committees ‹ Design agency ‹ External M&E agency ‹ Other agencies concerned: women’s federation, labor and social security bureau 6.1.2 Organizational Responsibilities ‹ Hebi Project Leading Group 139. Making overall arrangements and decisions, leading the implementation of the Subproject, and coordinating major issues ‹ Hebi PMO 1) Appointing a resettlement consulting agency to conduct resettlement preparation 2) Coordinating the consulting agency with other agencies concerned 3) Coordinating the progress of construction and resettlement 4) Supervising the disbursement of resettlement funds 5) Coordinating the work of agencies concerned 6) Coordinating the work of the ADB resettlement experts at the preparation and implementation stages ‹ HPRSAD 1) Conducting resettlement preparation together with the resettlement consulting agency 2) Developing resettlement policies 3) Reporting resettlement progress to the Hebi Project Leading Group and PMO 4) Submitting the resettlement investment plan to the Hebi Project Leading Group and PMO 5) Managing resettlement files 6) Conducting internal resettlement monitoring 7) Handling grievances and appeals arising from resettlement 8) Communicating and coordinating with the external M&E agency during resettlement 9) Supervising the construction of the resettlement site 10) Implementing employment measures 11) Training the resettlement staff ‹ Qi and Xun Subproject Leading Groups 140. Making arrangements and decisions on the Subproject, leading the implementation of the Subproject, and coordinating major issues under the leadership of the Hebi Project Leading Group ‹ Qi and Xun PMOs 1) Coordinating the work of agencies concerned 2) Coordinating the work of the ADB resettlement experts at the preparation and implementation stages ‹ Qi and Xun County Water Resources Bureaus 1) Applying for planning and land use permits with competent authorities; 2) Communicating resettlement policies to the public;

3) Appointing a dedicated agency to implement the RP; 4) Raising, supervising and managing resettlement funds ‹ Qi and Xun Land and Resources Bureaus 1) Determining the subproject area and conducting a socioeconomic survey; 2) Participating in the preparation of the RP and assisting in its implementation; 3) Communicating resettlement policies to the public; 4) Conducting the DMS; 5) Handling LA and HD formalities; 6) Conducting LA compensation and resettlement; 7) Keeping LA and HD compensation and resettlement records; 8) Assisting the external M&E agency in fieldwork; 9) Preparing LA progress reports and submitting them to the PMO ‹ Xigang, Weixian and Xinzhen Town Governments 1) Participating in the socioeconomic survey and assisting in preparation of the RP; 2) Organizing public participation and communicating the resettlement policies; 3) Implementing, inspecting, supervising and recording all resettlement activities; 4) Supervising the disbursement and management of LA compensation fees; 5) Supervising LA; 6) Reporting LA, HD and resettlement information to the PMO; 7) Handling grievances and appeals arising from resettlement; 8) Handling resettlement issues ‹ Affected village/community committees 1) Participating in the socioeconomic survey and DMS; 2) Organizing public participation and communicating the resettlement policies; 3) Organizing resettlement activities; 4) Handling grievances and appeals of the APs, and reporting their comments and suggestions to the PMO ‹ Qi and Xun County Labor and Social Security Bureaus Offering skills training ‹ Design agency 141. At the planning and design stage, it will survey the physical indicators of LA and HD, environmental capacity, usable resources, etc. accurately, and assist the governments in the subproject area in developing resettlement programs, preparing budgetary investment estimates for compensation for LA and HD, and preparing the relevant drawings. 142. At the implementation stage, it will submit the design documents, technical specifications, drawings and notices to the owner timely, make design disclosure to the PMOs of all levels. ‹ External M&E agency 143. The owner 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 effectiveness of resettlement and the social adaptability of the APs, and submitting resettlement M&E reports to ADB; 2) Providing technical advice to the Resettlement Office in data collection and processing.

6.1.3 Organizational Chart

Hebi Project Leading Group

Hebi PMO

Qi CountySubproject Xun County Subproject HPRSAD Leading Group Leading Group

Qi and Xun County PMOs, Qi and Xun Internal County Water Resources Bureaus Design agency monitoring agency

Xigang, Weixian and Xinzhen External Town Governments M&E

Affected village

/community

APs

Figure 6-1 Organizational Chart

6.2 Staffing, Equipment and Training 144. HCG and relevant local government agencies have set up organizations and appointed workforce to prepare and implement the resettlement affairs of this subproject. Most of the staffs are familiar to the law and regulations of LAR of PRC and have good experiences to implement the LAR work in project area. Since this is the first time for most of the staff to participate the ADB financed project, they lack the experience of implementing the resettlement plan of ADB financed project. Hence training of the staffs are proposed to strengthen their capacity of implementation of this RP.

6.2.1 Staffing 145. See staffs in Table 6-1 and 6-2.

Table 6-1 Staffing of Resettlement Agencies Workforce Agency Composition Male Female Hebi Project Leading Group 3 2 Civil servants Hebi PMO 2 2 Civil servants, technicians HPRSAD 2 1 Civil servants, technicians Qi Subproject Leading Group 2 2 Civil servants Qi PMO 2 2 Civil servants, technicians Xun Subproject Leading Group 2 2 Civil servants Xun PMO 2 2 Civil servants, technicians Weixian Town Government 2 1 Civil servants Xinzhen Town Government 2 1 Civil servants Xigang Town Government 2 1 Civil servants Affected village/community committees 3 3 Officials, representatives of APs Design agency 2 1 Engineers External M&E agency Some Some Resettlement and social experts

Table 6-2 Persons Chiefly Responsible of Resettlement Agencies No. Agency Name Tel 1 Wang Lisha 03923261381 HPRSAD 2 Niu Aizhi 13783036995 3 Su Ruihai 13839207518 Qi PMO 4 Ma Chao 15517896888 5 Song Guoping 13939248018 Xun PMO 6 Yang Xinwei 13939212997 7 Weixian Town Government Qiu Hong 0392-5677303 8 Xinzhen Town Government Zhang Feng’an 13849221266 9 Xigang Town Government Sun Haibing 0392-7555258

6.2.2 Equipment 146. All resettlement agencies of the Subproject have been provided basic office, transport and communication equipment, including desks and chairs, PCs, printers, telephones, facsimile machines and vehicles. 6.2.3 Organizational Training Program 147. In order to ensure the successful implementation of the resettlement work, the resettlement staff must be trained under the leadership of the Hebi PMO and HPRSAD. 148. A staff training and human resources development system for the City-, county-, township- and village-level resettlement agencies will be established. Training will be conducted in such forms as expert workshop, skills training course, visiting tour and on-site training. —ADB’s resettlement policy and principles —Differences between ADB and PRC policies —Resettlement implementation planning and management —Points requiring attention during resettlement implementation —Resettlement M&E

Table 6-3 Operational Training Program of Resettlement Agencies Agency Scope Trainees Time No. responsible Funding A B C D Learning resettlement experience from 1 Hebi PMO Resettlement office staff 2018-2019 ADB-financed projects in other provinces Training 2 Hebi PMO ADB’s resettlement policy Resettlement office staff 2018-2019 budget of 3 Hebi PMO Updates of state policies on LA and HD Resettlement office staff 2018-2019 the Experience and lessons in resettlement from 4 Hebi PMO Resettlement office staff 2018-2019 Subproje other places ct, 92,500 5 Hebi PMO Computer operation and data processing Resettlement office staff 2018-2019 yuan Consultants during Resettlement procedures and policies for County PMOs, community 6 2018-2019 Implementation ADB-financed projects resettlement teams

Agency Scope Trainees Time No. responsible Funding A B C D stage Consultants during County PMOs, community 7 Implementation Resettlement policies and practice 2018-2019 resettlement teams stage

7 Public Participation and Grievance Redress

7.1 Public Participation 149. According to the policies and regulations of ADB, the PRC and Henan Province 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. 7.1.1 Preparation Stage 150. Since January 2015, the task force has conducted a series of socioeconomic survey and public consultation activities (with 50% of participants being women). At the preparation stage, the PMO, IA and design agency conducted extensive consultation on LA and resettlement. See Table 7-1.

Table 7-1 Public Participation Activities at the Preparation Stage # Date Organizer Participants Purpose Key points Measures Male Female Introducing the Optimizing the design background and of the Subproject Feasibility study, APs, village purpose of the 2014.6-2014. PMO, FS field officials, 30 21 Subproject, and 12 agency investigation, technicians minimizing DMS resettlement impacts Reps. of APs Assisting in the Drafting preliminary RP preparation, and DMS, and fixing resettlement programs 2015.1-2015.2 PMO, NRCR 15 8 socioeconomic government compensation based on the survey survey agencies rates Disbursement Fixing rates strictly and distribution based on of compensation location-based land Reps. of fees prices under public government Public supervision; 2015.1-2015.2 PMO, NRCR 25 15 agencies consultation establishing grievance and APs redress and M&E mechanisms to supervise fund disbursement Officials and Livelihood and Further defining APs in the income income restoration Public 2015.3 PMO, NRCR affected 15 9 restoration after programs and consultation village LA measures groups Officials and Supporting Defining extra APs in the measures for supporting measures PMO, NRCR, Public 2015.3 affected 20 12 vulnerable for vulnerable groups TA experts consultation village groups groups Adjusting project Owner of Conducting content, optimizing project, land Leaders in Detailed detailed project design, department villages and investigation on investigation on minimize LAR impacts, Jun. 2017-Oct. and groups, 80 90 physical physical quantity publicizing the 2017 governments households quantity, public based on measurement survey in villages and impacted consultation preliminary results of land towns design acquisition and resettlement. Nov. 2017 Owner of Leaders in 30 25 Public Conducting Strengthening internal

# Date Organizer Participants Purpose Key points Measures Male Female project, land villages and consultation negotiation on and external department groups, restoration monitoring and and households measures on evaluation governments impacted compensation mechanisms, in villages and and livelihood information disclosure towns mechanism, complaint handling mechanism and others to ensure the whole-course monitoring and evaluation of the compensation and resettlement

7.1.2 Implementation Stage 151. With the progress of project preparation and implementation, the IA will conduct further public participation. See Table 7-2.

Table 7-2 Public Participation Plan Purpose Mode Time Agencies Involved Topic Village bulletin Distributing the RIB Hebi PMO, HPRSAD, RIB distribution board, village Jan. 2018 All APs community committees meeting Finding out anything Hebi PMO, HPRSAD, town DMS results Field omitted to determine the Jan. 2018 governments, community All APs verification investigation final impacts; preparing committees sample agreements Village bulletin Hebi PMO, HPRSAD, town Disclosure of LA area, LA announcement board, village Feb. 2018 governments, community All APs compensation rates and meeting committees resettlement modes, etc. Determination / Discussing final income Before Hebi PMO, HPRSAD, town implementation of Village meeting restoration programs and implement governments, community All APs income restoration (many times) the use of compensation -ation committees programs fees Hebi PMO, HPRSAD, town Discussing training needs Mar. 2018 – Training program Village meeting governments, community All APs Dec. 2018 committees

7.2 Grievance Redress 152. 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: 7.2.1 Modes of Collection of Grievances and Appeals 153. Modes of Collection of Grievances and Appeals include: 1) Grievances, resettlement progress and issues from reports submitted by the township resettlement offices; 2) Construction impacts from construction logs submitted by construction agencies; 3) Coordination issues in LA and HD found by the construction agency through field patrol; 4) Information from the external M&E agency; 5) Letters and visits from APs; 6) Special issues reported during auditing and disciplinary inspection; 7) LA and HD expenses collected from fund disbursement sheets; and 8) Internal monitoring information.

7.2.2 Grievance Redress Procedure 154. The Grievance Redress Procedure includes Stage 1: If any right of any AP is infringed on in any aspect of LA, HD and resettlement, he/she may report this to village/community committee, which shall record such appeal and solve it together with the village committee or the AP within two weeks. Stage 2: If the appellant is dissatisfied with the disposition of Stage 1, he/she may file an appeal to the town government after receiving such disposition, which shall make a disposition within two weeks. Stage 3: If the appellant is still dissatisfied with the disposition of Stage 2, he/she may file an appeal to the Xun or Qi PMO after receiving such disposition, which shall make a disposition within two weeks. Stage 4: If the appellant person is still dissatisfied with the disposition of Stage 3, he/she may file an appeal to HPRSAD within one month after receiving such disposition, which shall make a disposition within 4 weeks. 155. At any stage, an AP may bring a suit in a civil court directly in accordance with the Administrative Procedure Law of the PRC. 156. Affected persons can also submit complaints to ADB which will first be handled by the project team. If an affected person is still not satisfied and believes he/she has been harmed due to non-compliance with ADB policy, s/he may submit a complaint to ADB’s Accountability Mechanism.8 157. All agencies will accept grievances and appeals from the APs for free, and costs so reasonably incurred will be disbursed from contingencies. During the whole construction period of the Subproject, these appeal procedures will remain effective to ensure that the APs can use them to address relevant issues. The above grievance redress system will be communicated to the APs at a meeting or through the RIB, so that the APs know their right of appeal. In addition, the appeal process will be published to affected population on mass media. 7.2.3 Principles for Grievance Redress 158. All resettlement agencies must conduct field investigation on grievances raised by APs, and address them through adequate consultation objectively and fairly in accordance with the principles herein. 159. During resettlement, women may have their special grievances, so each resettlement agency will have at least one female member to handle women’s grievances. 7.2.4 Scope and Modes of Reply 1. Scope of reply 1) Brief description of grievance; 2) Investigation results; 3) Applicable state provisions, and the principles and rates specified in this RP; 4) Disposition and basis 2. Modes of reply 1) For any individual grievance, the reply will be delivered directly to the grievant in writing. 2) For any common grievance, a village meeting will be held or a notice given to the village committee. 160. In whichever mode of reply, the reply materials must be sent to the grievant and submitted to the competent resettlement agency. 7.2.5 Recording and Feedback of Grievances and Appeals 161. During the implementation of the RP, the resettlement agencies should register and manage appeal and handling information, and submit such information to the Qi and Xun County Water Resources Bureaus in writing on a monthly basis. The Hebi PMO will inspect the registration of appeal and handling information regularly. 7.2.6 Contact Information for Grievance Redress 162. The sub-district resettlement offices and village resettlement teams have assigned staff members to collect and accept grievances and appeals from the APs. Their contact information is shown in Table 7-3. The APs may also file appeals with the Hebi PMO directly.

Table 7-3 Contact Information for Grievance Redress Agency Name Address Tel

8 For further information, see: http://www.adb.org/Accountability-Mechanism/default.asp 53

Hebi PMO Li Zhenjie No.235 Xinghe Street, Hebi City 03923314196 HPRSAD Wang Lisha No.235 Xinghe Street, Hebi City 03923261381 Qi PMO Su Ruihai Qi County Government 13839207518 Xun PMO Song Guoping Xun County Government 13939248018 Weixian Town Government Cui Haimin Weixian Town 13939208268 Xinzhen Town Government Wei Jiachang Xinzhen Town (0392) 5877303 Xigang Town Government Sun Haibing Xigang Town 0392-7555258

APs

Village/community committees

Contractor Town governments Resettlement issues issues Resettlement Environmental issues issues Environmental

External IA / municipal Qi and Xun County Water M&E environmental Resources Bureaus agency

Qi and Xun PMOs Qi and Xun County Water Resources Bureaus

Hebi PMO Hebi PMO

ADB

Figure 7-1 Community-based Grievance Redress Mechanism for Safeguard Issues

8 Resettlement Budget 8.1 Resettlement Budget 163. All costs incurred during LA and resettlement will be included in the general budget of the Subproject. Based on prices in November 2017, the resettlement budget of the Subproject is 23.8344 million yuan. See Table 8-1. The local government has committed to implement the RP by allocating adequate counterpart budget. All compensation will be paid prior to LA. Table 8-1 Resettlement Budget

Rate Amount Percent No. Item Unit Qty. (yuan) (10,000 yuan) (%)

1 Basic resettlement costs 10,000 yuan \ \ 1283.66 53.86 1.1 Permanent LA 10,000 yuan \ \ 904.29 37.94 38000 58.23 221.27 9.28 39500 27.97 110.48 4.64 1.1.1 Irrigated land and dry land mu 37500 84.73 317.74 13.33 37500 41.73 156.49 6.57 39000 8.66 33.77 1.42 1.1.2 Woodland mu 38000 5.12 19.46 0.82 37500 4.2 15.75 0.66 1.1.3 Young crop compensation for irrigated land mu 1200 43.7 5.24 0.22 1.1.4 Young crop compensation for dry land mu 1000 168.96 16.90 0.71 1.1.5 Compensation for wood mu 4000 17.98 7.19 0.30 1.2 Temporary land occupation 10,000 yuan \ \ 237.99 9.98 Compensation for temporary occupation of mu 1.2.1 3000 327.7 98.31 4.12 dry land Compensation for temporary occupation of mu 1.2.2 1500 57.3 8.60 0.36 unused land Subsidy on cultivated land`s crop reduction mu 1.2.3 1000 327.7 32.77 1.37 loss 1.2.4 reclamation fee of temporary land occupation mu 3000 327.7 98.31 4.12

1.3 Ground attachments 10,000 yuan \ \ 141.38 5.93

1.3.1 Water tanks ㎡ 200 34.5 0.69 0.03 1.3.2 Wells / 1800 1 0.18 0.01 1.3.3 Masonry canals m 50 330 1.65 0.07 1.3.4 Earth canals m 10 153 0.15 0.01 1.3.5 Telegraph poles / 260 9 0.23 0.01 1.3.6 Scattered deciduous trees 10,000 yuan \ \ 110.18 4.62 1.3.6.1 BHD: =<5cm 5 2484 1.24 0.05 1.3.6.2 BHD: 6-10cm 10 2732 2.73 0.11 1.3.6.3 BHD: 11-15cm 25 15481 38.70 1.62 1.3.6.4 BHD: 16-20cm / 38 6930 26.33 1.10 1.3.6.5 BHD: 21-25cm 45 3861 17.37 0.73 1.3.6.6 BHD: 26-30cm 55 2948 16.21 0.68 1.3.6.7 BHD: >=31cm 75 1011 7.58 0.32 1.3.7 Scattered fruit trees 10,000 yuan \ \ 28.29 1.19 1.3.7.1 Ground diameter: =<4cm 15 1773 2.66 0.11 1.3.7.2 Ground diameter: 4.1-6cm 70 721 5.05 0.21 1.3.7.3 Ground diameter: 6.1-8cm / 120 568 6.82 0.29 1.3.7.4 Ground diameter: 8.1-10cm 200 445 8.90 0.37 1.3.7.5 Ground diameter: >=10.1cm 280 174 4.87 0.20 Planning and design costs (2% of basic 2 10,000 yuan \ \ 25.67 1.08 costs) 3 Training costs (1.5% of basic costs) 10,000 yuan \ \ 19.25 0.81 4 Taxes on LA 10,000 yuan \ \ 849.47 35.64 4.1 LA management costs (2.8% of basic costs) 10,000 yuan \ \ 35.94 1.51 4.2 Farmland occupation tax mu 14667 212.66 311.91 13.09 4.3 Land reclamation costs mu 8671 43.7 37.89 1.59

mu 7337 168.96 123.97 5.20 mu Compensation fees for using additional 4.4 10672 158.63 169.29 7.10 construction land(Qi County)

mu Compensation fees for using additional 4.5 9338 72.01 67.24 2.82 construction land (Xun County)

4.6 Forest vegetation recovery fee mu 6670 17.98 11.99 0.50

4.7 Social security costs for LEFs mu 4290 212.66 91.23 3.83

Supporting fund for vulnerable groups (1% 5 10,000 yuan \ \ 12.84 0.54 of basic costs)

6 Contingencies (15% of basic costs) 10,000 yuan \ \ 192.55 8.08

7 Total 10,000 yuan \ \ 2383.44 100 Note: External M&E costs have been included in the budget of the institutional capacity building component of the project management consultancy services.

8.2 Resettlement Investment Schedule and Funding Sources 164. All resettlement funds of the Subproject are from local counterpart funds. 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. See Table 8-2.

Table 8-2 Resettlement Investment Plan Year 2018 2019 Total Investment (10,000 yuan) 1668.41 715.03 2383.44 Percent 70% 30% 100%

8.3 Disbursement and Management of Resettlement Funds 8.3.1 Disbursement of Resettlement Funds 165. Resettlement funds will be disbursed as follows: All costs related to LA will be included in the general budget of the Subproject. QCG and JCG will disburse compensation fees based on the compensation rates directly to the affected town governments, village/community committees and AHs via a special account. LA compensation fees and young crop compensation fees will be paid before LA. See Figure 8-1.

QCG Management Executing Entrust Qi and Xun County and XCG , supervision agency ment Land and Resources Bureaus

Implementation

Application for approval Approval Entering into compensation agreements

AHs Disbursement

Villages and Households affected AHs affected by temporary land by LA occupation

Figure 8-1 Disbursement Process of Resettlement Funds

8.3.2 Management of Resettlement Funds 166. Land compensation fees and resettlement subsidies should be used in full consultation with the APs; young crop fees will be paid directly to the affected persons; compensation fees for infrastructure and attachments will be paid to the affected entities or individuals. 167. To ensure that the resettlement funds are available timely and fully, and the APs’ production, livelihoods and income are restored, the following measures will be taken: 168. All costs related to resettlement will be included in the general budget of the Subproject; 169. Land compensation fees and resettlement subsidies will be paid up before LA so that all APs can be resettled properly; 170. In order to ensure the successful implementation of LA and resettlement, financial and supervisory agencies will be established at all levels to ensure that all funds are disbursed timely and fully. 171. The resettlement budget may be increased due to the change of the subproject area, the modification of the compensation rates and inflation during implementation, but the IA will ensure that compensation fees are fully paid.

9 Resettlement Implementation Schedule

9.1 Principles for Resettlement Implementation 172. According to the implementation schedule, the Subproject has a construction period of 3 years, from September 2018 to September 2021. The basic principles for resettlement implementation are as follows: ‹ LA should be completed at least 1 months prior to the commencement of construction, and the starting time will be determined as necessary for LA and resettlement. ‹ During resettlement, the APs shall have opportunities to participate in the Subproject. 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 1 months of approval of the compensation and resettlement program for LA. No entity or individual should use such compensation fees on their behalf, nor should such compensation fees be discounted for any reason.

9.2 Resettlement Implementation Schedule 173. The general resettlement schedule of the Subproject has been drafted based on the progress of project construction, LA and implementation. The exact implementation schedule may be adjusted due to deviations in overall project progress. See Table 9-1.

Table 9-1 Resettlement Implementation Schedule No. Task Target Agencies in charge Time Remarks 1 Information disclosure RIB 21 villages in 2 1.1 PMO, HPRSAD Jan. 2018 towns Disclosure of the updated RP 1.2 ADB, PMO, HPRSAD Jan. 2018 on ADB’s website 2 RP update and resettlement budget approval 2.1 DMS 21 villages in 2 HPRSAD Oct. 2017 Completed towns 2.2 Updating the RP based on the 21 villages in 2 IA, PMO Nov. 2017 Completed DMS towns 2.3 RP and budget approval QCG, JCG, Qi and Xun 23.8344 million yuan Jan. 2018 (compensation rates) PMOs 3 LA announcement Disclosing the updated RP 21 villages in 2 QCG, JCG, Qi and Xun 3.1 Jan. 2018 towns PMOs Releasing the LA 21 villages in 2 3.2 QCG, JCG Jan. 2018 announcement towns 4 Compensation agreement Entering into LA compensation County water resources 21 villages in 2 Feb. 2018 – 4.1 agreements and paying bureaus, village towns Jun. 2018 compensation committees 5 Livelihood restoration measures Payment of compensation for County water resources 5.1 young crops and attachments AHs bureaus, town May. 2018 governments Implementation of restoration 21 villages in 2 Mar. 2018 – 5.2 Town governments programs towns Dec. 2020 Implementation of training 21 villages in 2 County labor and social Mar. 2018 – 5.3 program towns security bureaus Dec. 2020 Implementing supporting Mar. 2018 – To be added timely 5.4 None for the moment Civil affairs bureau, PMO measures for vulnerable groups Dec. 2020 if any Hiring APs under the Subproject PMO, labor and social 21 villages in 2 Mar. 2018 – 5.5 security bureau, towns Dec. 2020 contractor 6 Capacity building of resettlement agencies

No. Task Target Agencies in charge Time Remarks 6.1 Training of PMO staff 15 men-times PMO 2018-2019 Training of officials of 6.2 60 men-times PMO, HPRSAD Jan. 2018 sub-district offices 7 M&E Establishing an internal 7.1 As per the RP PMO, HPRSAD Nov. 2017 Completed monitoring mechanism 7.2 Internal monitoring reporting Semiannual PMO From Jan. 2018 Appointing an external M&E 7.3 One PMO Dec. 2017 In progress agency 7.4 Baseline survey Affected area External M&E agency Jan. 2018 External monitoring reporting March. 2018 1st report Jul. 2018 2nd report 7.5 Semiannual External M&E agency 3rd report Jan. 2019

External monitoring reporting Jan. 2020 4th report 7.6 Annual External M&E agency 5th report Jan. 2021 (Completion report) Post-evaluation PMO, county water 7.7 Jul. 2021 resources bureaus 8 Public consultation HPRSAD Ongoing 9 Grievance redress HPRSAD Ongoing 10 Disbursement of compensation fees - Disbursement to county water 10.1 Initial funds QCG, JCG Feb. 2018 resources bureaus - Disbursement to town County water resources 10.2 Initial funds Mar. 2018 governments bureaus - Disbursement to AHs End of May. 10.3 Initial funds Town governments 2018 11 Commencement of civil construction Qihe River Mainstream Watercourse Improvement County water resources 11.1 Sep. 2018 Subproject in Qi County bureaus

10 Monitoring & Evaluation 174. In order to ensure the successful implementation of the RP and realize the objectives of resettlement properly, LA, HD and resettlement activities of the Subproject will be subject to periodic M&E according to ADB’s resettlement policy, including internal and external monitoring. 10.1 Internal Monitoring 175. Internal monitoring will be conducted by the Hebi PMO, HPRSAD, Qi and Xun PMO, and other county authorities concerned. The PMO will develop a detailed internal monitoring plan for LA and resettlement, including: 1) Investigation, coordination of and suggestion on key issues of the resettlement and implementing agencies during implementation; 2) Restoration of the household income of the APs after LA; 3) Resettlement and income restoration of the APs after HD; 4) Resettlement and income restoration of vulnerable groups; 5) Payment, use and availability of compensation fees for resettlement; 6) Disbursement, use and availability of LA compensation fees; 7) Resettlement training and its effectiveness; and 8) Establishment, staff training and working efficiency of resettlement management agencies. 176. The Hebi PMO will submit an internal monitoring report to ADB quarterly. Such report should indicate the statistics of the past 6 months in tables, and reflect the progress of LA, resettlement and use of compensation fees through comparison.

10.2 External Monitoring 177. According to ADB’s policies, the PMO will employ a qualified, independent and experienced resettlement agency as the independent resettlement monitoring agency. 178. The external M&E agency will conduct follow-up M&E of resettlement activities periodically, monitor resettlement progress, quality and funding, and give advice. It shall also conduct follow-up monitoring of the displaced persons’ production level and standard of living, and submit M&E reports to the PMO and ADB. 10.2.1 Scope and Methods 1) Baseline survey 179. The external M&E agency will conduct a baseline survey on the villages affected by LA to obtain baseline data on the sample AHs’ production level and living standard. The production level and living standard survey will be conducted semiannually to track variations of the APs’ production level and living standard. This survey will be conducted using such methods as panel survey (sample size: 100% of households affected significantly and 15% of households affected by LA, to be sampled randomly), random interview and field observation to acquire necessary information. A statistical analysis and an evaluation will be made on this basis. 2) Periodic M&E 180. During the implementation of the RP, the external M&E agency will conduct periodic follow-up resettlement monitoring semiannually of the following activities by means of field observation, panel survey and random interview: ‹ Payment and amount of compensation fees; ‹ Training; ‹ Support for vulnerable groups; ‹ Restoration and rebuilding of infrastructure and special facilities; ‹ Production resettlement and restoration; ‹ Construction and allocation of resettlement housing; ‹ Compensation for lost properties; ‹ Timetables of the above activities (applicable at any time); ‹ Resettlement organization; ‹ Income growth of labor through employment; and ‹ If APs have benefited from the Subproject 3) Public consultation 181. The external M&E agency will attend public consultation meetings held during resettlement implementation to evaluate the effectiveness of public participation. 4) Grievance redress 182. The external M&E agency will visit the affected villages and groups periodically, and inquire

61 the township resettlement offices and implementing agencies that accept grievances about how grievances have been handled. It will also meet complainants and propose corrective measures and advice for existing issues so as to make the resettlement process more effectively. 10.2.2 Reporting 183. The external M&E agency will submit a monitoring or evaluation report to ADB and the PMO semiannually. See Table 10-1.

Table 10-1 M&E Schedule No. Report Date Remarks 1 Baseline socioeconomic survey report Jan. 2018 2 Monitoring report (No.1) Mar. 2018 incl. baseline survey 3 Monitoring report (No.2) Jul. 2018 4 Monitoring report (No.3) Jan. 2019 5 Evaluation report (No.4) Jan. 2020 Resettlement Completion 6 Evaluation report (No.5) Jan. 2021 Report

10.3 Post-evaluation 184. 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, HD and resettlement will be evaluated to provide experience that can be drawn on for future resettlement. 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 Hebi PMO and ADB. The post-evaluation report is expected to be completed in July 2021.

Appendix 1: Resettlement Information Booklet 1. Basic information HCG has applied for a loan of USD150 million with ADB for the Project. The Project consists of 8 components in 4 categories. The Subproject is the 3rd subproject of the Project. The Subproject has a length of 21km, and involves river dredging, broadening and reinforcement to resist floods that occur every 20 years. And the embankment engineering grade is IV grade, the grade of main construction is four and the grade of subordinate construction is five. The overall length of embankment top flood-control road is 40.218 km, the roadbed adopts the 200 mm-thick cement-stabilized macadam base and 70 mm-thick bituminous concrete is laid on road surface. The Subproject will be constructed from September 2018 to September 2021. 2. Resettlement agencies The agencies responsible for LA in the Subproject are: ‹ Hebi Project Leading Group ‹ Hebi PMO ‹ HPRSAD ‹ Qi Subproject Leading Group ‹ Qi PMO ‹ Xun Subproject Leading Group ‹ Xun PMO ‹ Qi County Water Resources Bureau ‹ Xun County Water Resources Bureau ‹ Xigang, Weixian and Xinzhen Town Governments ‹ Affected village/community committees ‹ Design agency ‹ External M&E agency ‹ Other agencies concerned: women’s federation, labor and social security bureau 3. Policy framework and compensation rates Applicable laws and regulations: (1) ADB policies ‹ Safeguard Policy Statement, June 2009 ‹ Safeguard Requirement 2: Involuntary Resettlement (2) Laws, regulations and policies of the PRC ‹ Land Administration Law of the PRC (amended on August 28, 2004) ‹ Rural Land Contracting Law of the PRC, effective from March 1, 2003 ‹ Regulations on the Implementation of the Land Administration Law of the PRC (Decree No.256 of the State Council), December 27, 1998 ‹ Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28) ‹ Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (MLR [2004] No.238) ‹ Notice of the General Office of the State Council on Doing a Good Job in the Employment Training and Social Security of Land-expropriated Farmers (SCO [2006] No.29) ‹ Notification of Ministry of Finance of PRC, Ministry of Land and Resources of PRC and The People`s Bank of China on Adjustment of Paid Using Policy of Additional Construction Land (Financial comprehension (2006) No.48) ‹ Notice of the Ministry of Labor and Social Security, and the Ministry of Land and Resources on Doing Well in the Social Security of Land-expropriated Farmers Practically (MLSS [2007] No.14) ‹ Real Right Law of the PRC, effective from October 1, 2007 ‹ Interim Regulations on Farmland Occupation Tax of the PRC, effective from January 1, 2008 ‹ Regulations of the PRC on the Disclosure of Government Information, effective from May 1, 2008 ‹ Urgent Notice of the General Office of the State Council on Further Regulating the Management of Land Acquisition and House Demolition, and Protecting People’s Lawful Rights and Interests Practically (SCO [2010] No.15) ‹ Notice of the Ministry of Land and Resources on Further Improving the Management of

Land Acquisition, June 26, 2010 ‹ Urgent Notice of the General Office of the Ministry of Land and Resources on Conducting Strict Management to Prevent Illegal Land Acquisition (MLR [2013] No.28) ‹ Notice of the General Office of the Ministry of Land and Resources on Doing a Better Job in Disclosing City- and County-level Land Acquisition Information (MLRO [2014] No.29) ‹ Notification of Ministry of Finance of PRC, The state forestry administration of PRC on Adjustment of Acquisition Standard of Recovery Fee of Forest Vegetation to Guide to Save Intensive Forest Utilization (Finance and taxation (2015) No.122) (3) Regulations and policies of Henan Province ‹ Notice of the General Office of the Henan Provincial Government on Strengthening Land Control and Rigidly Enforcing Land Administration (HCGO [2007] No.33) ‹ Notification of Henan Development and Planning Committee and Ministry of Finance on Implementation of the Notification of National Development and Reform Commission and Ministry of Finance of PRC on Overall Rectification of Housing Construction Charge and Cancellation of Sectional Charging Items (Henan charge (2001) No.1019) ‹ Opinions of the Henan Provincial Labor and Social Security Department, Land and Resources Department, and Finance Department on Doing Well in the Employment Training and Social Security of Land-expropriated Farmers (HPLSS [2008] No.19) ‹ Opinions of the Henan Provincial Government on Trials on Social Endowment Insurance for Urban and Rural Residents (HPG [2011] No.58) ‹ Notice of the Henan Provincial Labor and Social Security Department, and Finance Department on Further Strengthening the Management of Special Employment Funds (YCS [2011] No.293) ‹ Notification of Department of Human Resources and Social Security of Henan Province on Announcement of Expense Standard of Social Security of Comprehensive Land Price to Land Acquisition Areas of Every District (Henan Human Resources and Social Security Office (2008) No.72) ‹ Notice of the Henan Provincial Labor and Social Security Department, and Finance Department on Issuing the Administrative Measures for Employment and Business Startup of Henan Province (YRSJY [2012] No.25) ‹ Notification of The People`s Government of Henan Province on Adjustment of Comprehensive Land Price Standard of Land Acquisition Areas in Henan Province (Henan Government (2016) No.48) ‹ Notice of the General Office of the Henan Provincial Government on Issuing the Special Corrective Plan for Land Acquisition and House Demolition (HCGO [2014] No.110) ‹ Notification of The People`s Government of Henan Province on Announcement of Canceling Stop Acquisition and Adjusting Relative Charging Items (Henan Government (2008) No.52) ‹ Measures for the Implementation of Henan Province on Provisional Regulations of Farmland Occupation Tax (No.124 of The People`s Government of Henan Province) ‹ Notification of Increase of Minimum Standard of Basic Pension of Basic Endowment Insurance of Urban and Rural Residents jointly issued by Department of Human Resources and Social Security and Ministry of Finance of Henan Province in March 2017 ‹ Notification of Department of Finance and Department of Forestry of Henan Province on Retransmission of the Notification of Ministry of Finance of PRC and The state forestry administration of PRC on Adjustment of Acquisition Standard of Recovery Fee of Forest Vegetation to Guide to Save Intensive Forest Utilization (Henan financial comprehension (2016) No.10) (4) Regulations and policies of Hebi City, and Qi and Xun Counties ‹ Notice of the Hebi City Government on Adjusting Compensation Rates for Ground Attachments and Young Crops on Land Acquired for State Construction (HCG [2012] No.11) ‹ Notice of the Hebi City Government on Issuing the Measures for the Implementation of Basic Endowment Insurance for Urban and Rural Residents of Hebi City (HCG [2014] No.34) ‹ Notice of the Qi County Government on Coordinating New and Old Compensation Rates for Ground Attachments and Young Crops in Land Acquisition (QCG [2012] No.30)

‹ Opinions of the Qi County Government on Securing Production Conditions and Livelihoods of Land-expropriated Farmers (QCG [2011] No.34) Entitlement matrix: The entitlement matrix has been established in accordance with the applicable policies in this chapter, as shown in Table 1.

Table 1 Entitlement Matrix Type of Degree of impact APs Compensation and resettlement policy Compensation rates impact LA 230.64 mu of 246 households 1) Cash compensation: as per location-based composite 1) Compensation rates: collective land, with 1,136 land price Weixian Village, Weixian Town 39,000 yuan/mu; Nanzhifang, including 43.7 mu of persons in 21 2) Agricultural development: land transfer, crop Peiying, Weilizhuang, Qiangongtang, Hougongtang villages: irrigated land villages in 2 towns restructuring, etc.; 38,000yuan/mu; Xiang, Sanjiaotun villages, Xigang Town: 39,500 (18.95%), 168.96 mu in two counties 3) Employment: Social and project jobs, and small-amount yuan/mu; Woluan, Huangwangmiao, Mawan, Huojie, Yan, of dry land (73.26%) business startup loans will be offered. Dalizhuang, Shinaimiao, Kangzhuang, Zangkou, Fangzhai, Hekou and 17.98 mu of 4) Endowment insurance: LEFs may cover higher Villages, Xigang Town: 37,500 yuan/mu. See details in table 4-2. woodland (7.8%) contribution levels of endowment insurance for urban and 2) Distribution mode: For contracted land, LA and young crop rural residents to receive higher pensions. compensation is paid directly and fully to AHs without land 5) Skills training: Free skills training will be offered to the reallocation nor any retention by village collective; for non-contracted AHs. land, LA and young crop compensation is paid directly to the village collective and will be used for public welfare of all the villagers. 3) All compensation will be paid prior to the LA. Temporary 385 mu of collective 109 households 1) Compensation will be paid directly to proprietors based See details in table 4-3. land land, including 327.7 with 521 persons on the actual period of occupation. occupation mu of dry land and in 3 towns in two 2) Temporary land occupation will be notified in advance. 57.3 mu of unused counties 3) The occupied land will be restored by the contractor. land Women 827 females Affected women 1) Making at least 30% of unskilled jobs first available to women (72 out of 240 permanent jobs); 2) Making free skills training first available to women, in which at least 50% of trainees are women (425 out of 850 person-times); 3) Women will receive relevant information during resettlement, and are able to participate in resettlement consultation. A special women’s FGD will be held to introduce resettlement policies. Vulnerable \ None (Applied if 1)Granting an extra living subsidy See details in section 5.4. groups any one identified 2)Giving priority to them during resettlement, such as (including during LAR receiving skills training, taking public welfare jobs and jobs ethnic implementation) generated by the Subproject, and applying for minorities small-amount secured loans population) 3)Including eligible vulnerable groups in the MLS system 4)Offering urban and rural medical assistance to eligible vulnerable groups Significantly 16 HHs with 74 HH and APs with Giving priority to them during resettlement, , such as

affected persons significant impacts receiving skills training, taking public welfare jobs and jobs persons generated by the Subproject, and applying for small-amount secured loans Making jobs available to at least one person from each significantly affected HH. Ground Scattered fruit and Proprietors Ground attachments will be compensated for as stipulated. See Table 4-5 and Section 5.5. attachments deciduous trees, trees, water tanks, wells, telegraph poles, canals, etc. Grievance \ All APs Free; all costs so reasonably incurred will be disbursed redress from the contingencies

4. Grievance redress mechanism Stage 1: If any right of any AP is infringed on in any aspect of LA, HD and resettlement, he/she may report this to village/community committee, which shall record such appeal and solve it together with the village committee or the AP within two weeks. Stage 2: If the appellant is dissatisfied with the disposition of Stage 1, he/she may file an appeal to the town government after receiving such disposition, which shall make a disposition within two weeks. Stage 3: If the appellant is still dissatisfied with the disposition of Stage 2, he/she may file an appeal to the Xun or Qi PMO after receiving such disposition, which shall make a disposition within two weeks. Stage 4: If the appellant person is still dissatisfied with the disposition of Stage 3, he/she may file an appeal to HPRSAD within one month after receiving such disposition, which shall make a disposition within 4 weeks. At any stage, an AP may bring a suit in a civil court directly in accordance with the Administrative Procedure Law of the PRC. Affected persons can also submit complaints to ADB which will first be handled by the project team. If an affected person is still not satisfied and believes he/she has been harmed due to non-compliance with ADB policy, s/he may submit a complaint to ADB’s Accountability Mechanism.9

Table 2 Contact Information for Grievance Redress Agency Name Address Tel Hebi PMO Li Zhenjie No.235 Xinghe Street, Hebi City 03923314196 HPRSAD Wang Lisha No.235 Xinghe Street, Hebi City 03923261381 Qi PMO Su Ruihai Qi County Government 13839207518 Xun PMO Song Guoping Xun County Government 13939248018 Weixian Town Government Cui Haimin Weixian Town 13939208268 Xinzhen Town Government Wei Jiachang Xinzhen Town (0392) 5877303 Xigang Town Government Sun Haibing Xigang Town 0392-7555258

5. Resettlement implementation schedule The general resettlement schedule of the Subproject has been drafted based on the progress of project construction, LA and implementation. The exact implementation schedule may be adjusted due to deviations in overall project progress.

Table 3 Resettlement Implementation Schedule No. Task Target Agencies in charge Time Remarks 1 Information disclosure RIB 21 villages in 2 1.1 PMO, HPRSAD Jan. 2018 towns Disclosure of the updated RP 1.2 ADB, PMO, HPRSAD Jan. 2018 on ADB’s website 2 RP update and resettlement budget approval 2.1 DMS 21 villages in 2 HPRSAD Oct. 2017 Completed towns 2.2 Updating the RP based on the 21 villages in 2 IA, PMO Nov. 2017 Completed DMS towns 2.3 RP and budget approval QCG, JCG, Qi and Xun 23.8344 million yuan Jan. 2018 (compensation rates) PMOs 3 LA announcement Disclosing the updated RP 21 villages in 2 QCG, JCG, Qi and Xun 3.1 Jan. 2018 towns PMOs Releasing the LA 21 villages in 2 3.2 QCG, JCG Jan. 2018 announcement towns 4 Compensation agreement

9 For further information, see: http://www.adb.org/Accountability-Mechanism/default.asp

No. Task Target Agencies in charge Time Remarks Entering into LA compensation County water resources 21 villages in 2 Feb. 2018 – 4.1 agreements and paying bureaus, village towns Jun. 2018 compensation committees 5 Livelihood restoration measures Payment of compensation for County water resources 5.1 young crops and attachments AHs bureaus, town May. 2018 governments Implementation of restoration 21 villages in 2 Mar. 2018 – 5.2 Town governments programs towns Dec. 2020 Implementation of training 21 villages in 2 County labor and social Mar. 2018 – 5.3 program towns security bureaus Dec. 2020 Implementing supporting Mar. 2018 – To be added timely 5.4 None for the moment Civil affairs bureau, PMO measures for vulnerable groups Dec. 2020 if any Hiring APs under the Subproject PMO, labor and social 21 villages in 2 Mar. 2018 – 5.5 security bureau, towns Dec. 2020 contractor 6 Capacity building of resettlement agencies 6.1 Training of PMO staff 15 men-times PMO 2018-2019 Training of officials of 6.2 60 men-times PMO, HPRSAD Jan. 2018 sub-district offices 7 M&E Establishing an internal 7.1 As per the RP PMO, HPRSAD Nov. 2017 Completed monitoring mechanism 7.2 Internal monitoring reporting Semiannual PMO From Jan. 2018 Appointing an external M&E 7.3 One PMO Dec. 2017 In progress agency 7.4 Baseline survey Affected area External M&E agency Jan. 2018 External monitoring reporting March. 2018 1st report Jul. 2018 2nd report 7.5 Semiannual External M&E agency 3rd report Jan. 2019

Qi PMO Xun PMO February 2018

Appendix 2: Statement on Land Acquisition and Resettlement Impacts of Qihe River Mainstream Watercourse Improvement Subproject in Qi County Financed by ADB With careful verification and confirmation, the project implementing unit (PIU) hereby acknowledges the survey results of land occupation and population impacts in the authorized manuscript of preliminary design report of the subproject, namely Qihe River Mainstream Watercourse Improvement Subproject in Qi County. The subproject only involves the impacts of permanent land acquisition and temporary land occupation without any house demolition. In the detail design phase, PIU will elaborate on the aforementioned survey results, and promises that the production drawing design and engineering construction will strictly comply with the principles and relevant requirements of ADB on avoidance and minimize the LAR impacts of project, and the organization shall coordinate with relevant departments of local government to implement the compensation for land acquisition and resettlement according to the Resettlement Plan (including updated version) approved by ADB. Qi County Water Resources Bureau (Official Seal) Project Manager (Signature) November 10, 2017

With careful verification and confirmation, the project implementing unit (PIU) hereby acknowledges the survey results of land occupation and population impacts in the authorized manuscript of preliminary design report of the subproject, namely Qihe River Mainstream Watercourse Improvement Subproject in Qi County. The subproject only involves the impacts of permanent land acquisition and temporary land occupation without any house demolition. In the detail design phase, PIU will elaborate on the aforementioned survey results, and promises that the production drawing design and engineering construction will strictly comply with the principles and relevant requirements of ADB on avoidance and minimize the LAR impacts of project, and the organization shall coordinate with relevant departments of local government to implement the compensation for land acquisition and resettlement according to the Resettlement Plan (including updated version) approved by ADB.. Xun County Water Resources Bureau (Official Seal) Project Manager (Signature) November 10, 2017

Appendix 3: Fieldwork Photos

FGDs

Socioeconomic survey

Field visit