Municipal Waste to Energy Project (People’S Republic of China)

Social Due Diligence

January 2013 Project no. 43901-01

Municipal Waste to Energy Project (People’s Republic of China)

Pizhou Waste-to-Energy Subproject

Prepared by China Everbright International Limited for the Asian Development Bank (ADB)

This social due diligence report 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 on 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.

Asian Development Bank Financed Waste-to-Energy Project

Social Due Diligence Report for the Pizhou Waste-to-Energy Project

Everbright Environmental Energy (Pizhou) Limited January 2013

Contents

1 Basic Information of the Project ...... 1

1.1 Brief Description of the Project ...... 1 1.2 Overview of the Affected Areas ...... 2

2 Preparation Process of this Report ...... 2

2.1 Data Gathering Methods ...... 2 2.2 Information CollectionProcess ...... 3

3 Impacts of the Project ...... 4

3.1 Permanent Land Acquisition ...... 4 3.2 House Demolition in Qufang Village ...... 6 3.3 Affected Entities ...... 8 3.4 Affected Population ...... 8 3.5 Affected Ground Attachments ...... 9 3.6 Vulnerable Groups ...... 9 3.7 Ethnic Minorities ...... 9

4 Socioeconomic Survey ...... 9

4.1 Basic Information of Affected Villages ...... 9 4.2 Survey Results of Affected Households ...... 10

5 Policies, Compensation and Resettlement ...... 14

5.1 Main Laws and Policies Applicable to Resettlement ...... 14 5.2 Compensation for Acquisition of Rural Collective Land and Resettlement ...... 14

6 Resettlement Costs ...... 16

7 Public Participation, Consultation and Information Disclosure ...... 17

7.1 Public Participation Activities Organized by LA Agencies ...... 17 7.2 Public Participation Activities Organized by Everbright Environmental Energy (Pizhou) Limited ...... 18 7.3 Public Participation Activities Organized by Other Entities ...... 19

8 Appeal Procedure ...... 19

9 Agencies ...... 20

10 Monitoring and Evaluation ...... 21

10.1 Monitoring and Evaluation Agencies ...... 21 10.2 Procedure and Scope of Monitoring ...... 21

10.3 Monitoring Indicators ...... 22

11 Conclusion ...... 22

12 Next-step Action Plan ...... 23

Appendix 1: Land Approvals ...... 25

Appendix 2: Certificate of Payment ...... 27

List of Tables and Figures

Figure 1-Land for the WTE plant ...... 1 Figure 2-Field Interview ...... 4 Figure 3- Location of the Plant and the Safety Protection Zone ...... 5 Figure 4-Hongqi Community ...... 7 Figure 5-Temporary Housing to be Demolished ...... 8 Figure 6-Distribution of Sample Population by Age ...... 10 Figure 7-Distribution of Sample Population by Educational Level ...... 11 Figure 8-Income Composition ...... 12 Figure 9-Household Expenditure Structure ...... 13 Figure 10-FGD and Visits ...... 19

Table 1-List of Agencies and Persons Interviewed ...... 4 Table 2-Information on LA ...... 5 Table 3-Affected Population ...... 8 Table 4-Basic Information of Affected Villages ...... 9 Table 5-Possession of Properties of Sample Households...... 11 Table 6-Compensation for Trees ...... 15 Table 7-Resettlement Costs ...... 16 Table 8-Main Concerns and Solution Measures ...... 17

Abbreviations

ADB Asian Development Bank AHs Affected Households APs Affected Persons CEIL China Everbright International Limited DMS Detailed Measurement Survey FGD Focus Group Discussion HD House Demolition LA Land Acquisition M&E Monitoring and Evaluation NRCR National Research Center for Resettlement PRC People’s Republic of China WTE Waste-to-Energy BOT Build-Operate-Transfer PC Personal Computer

Units

CNY Chinese currency USD1 = CNY6.276 mu Chinese area measure for land 1 mu = 0.0667 ha m2 Square meter

1 Basic Information of the Project

1.1 Brief Description of the Project 1. Urban waste is a major issue facing countries all over the world, and is a prominent environmental concern in China today. With the development of the economy, the improvement of living standards and the acceleration of urbanization, the amount of urban waste produced is increasing, and the resulting environmental pollution is becoming increasingly serious.

2. In March 2012, the Pizhou Municipal Government selected China Everbright International Limited (CEIL) as its partner by invitation for bid to construct the Pizhou Waste-to-Energy (WTE) Project (hereinafter referred to as the “Project”) on a Build-Operate-Transfer (BOT) basis for a concession period of 30 years. CEIL has founded Everbright Environmental Energy (Pizhou) Limited as the owner of the Project.

3. The total investment in the Project is CNY330 million. The construction site is located in Daiwei Village, Daiwei Town, Pizhou (south of Baiguo Road, east of Hongqi Road, west of Taishan Road, north of Pingguo Road), with a planned floor area of 100 mu and a construction period of 18 months. The proposed Pizhou WTE Plant has a daily treatment capacity of 600 tons of urban waste, an annual treatment capacity of 220,000 tons of urban waste and an annual generating capacity of 68 million kWh.

Figure 1-Land for the WTE plant

4. The Project has been implemented as follows: ¢ Consultation with the AHs from March to September 2012; ¢ On August 15, 2012, the detailed measurement survey (DMS) of the Project, and land acquisition (LA) and house demolition (HD) began;

¢ On September 16, 2012, the affected village committee signed LA compensation agreements with the affected households (AHs); ¢ In September 2012, land compensation fees were paid to the AHs; ¢ In January 2013, the land within the boundary line was handed over to the project owner; ¢ On September 26, 2012, the preliminary examination of the land used for the Project was approved by the Land and Resources Department of Jiangsu Province with approval document JLRDP [2012] No.155; ¢ On October 11, 2012, the environmental impact assessment (EIA) of the Project was approved by the Environmental Protection Department of Jiangsu Province with approval number JEIA [2012] No.195; ¢ On November 8, 2012, the preliminary design of the Project was approved by the Jiangsu Provincial Development and Reform Commission with approval number JDRC [2012] No.1630.

5. Since the LA work of the Project has been completed, a social due diligence report was prepared as required by the Asian Development Bank (ADB) to determine whether there are any outstanding issues or gaps in resettlement implementation, and whether relevant activities have been conducted in compliance with state laws and policies and ADB’s Involuntary Resettlement Policy. This report is prepared by specialists from the National Research Center for Resettlement (NRCR), who are experienced in involuntary resettlement and knowledgeable in ADB’s policy requirements.

1.2 Overview of the Affected Areas 6. Pizhou City is located in northern Jiangsu, between Xuzhou and Lianyungang Cities, bordered by Xinyi City on the east, Tongshan and Jiawang Districts, Xuzhou City on the west, Suizhou County and Suyu County, Suqian City on the south, and Zaozhuang City, Tancheng County and Cangshan County, Shandong Province on the north. The city governs 24 towns and 489 community (village) committees, with a gross population of 1.63 million, including an agricultural population of 1.2644 million. In 2011, the city’s regional GDP was CNY44.886 billion, per capita disposable income of urban residents was CNY18,083 and per capita net income of farmers was CNY9,931.

7. Daiwei Town is located in northwestern Pizhou, has a land area of 31 km2, and governs 11 administrative villages and 96 village groups. At the end of 2012, the town’s resident population was 29,486. In 2011, the town’s gross rural economic income was CNY2.65 billion and the per capita net income of its farmers was CNY11, 427.

2 Preparation Process of this Report

2.1 Data Gathering Methods 8. Questionnaire survey. The questionnaire survey for the Project mainly targets

2 affected villages and households, and covers information on the compensation and resettlement for LA and HD, the production level and standard of living of AHs, their level of participation in the Project and their satisfaction with the Project.

9. Interview. Since the questionnaire survey is not in-depth enough, face-to-face interviews were also conducted with the AHs and resettlement implementing agencies to obtain more details. Interviewees included households affected by LA and HD as well as with chief leaders and village committees. Also, focus group discussion with affected women was held to get their opinions on LAR..

10. Field visit. The resettlement impact of affected persons (APs) and the preliminary restoration of production and livelihoods can be learned through field visits. The target of the field visit was areas of Daiwei Village affected by LA. Also, an elderly couple who is raising livestock in the temporary houses was interviewed.

2.2 Information CollectionProcess 11. In January 2013, NRCR was appointed by Everbright Environmental Energy (Pizhou) Limited to prepare the social due diligence report. With the support of Everbright Environmental Energy (Pizhou) Limited and agencies concerned, the survey team of NRCR surveyed the LA, HD and resettlement impacts of the Project, socioeconomic profile of the affected areas, and resettlement progress in January 2013.

12. All APs were involved in the survey of the Project. The survey team also collected comments on LA, HD and resettlement from the village committee, villagers, land administration authorities, HD authorities, labor authorities and social security authorities during the survey in addition to conducting extensive consultation.

13. The survey team visited Everbright Environmental Energy (Pizhou) Limited, and interviewed the project leader regarding project construction, LA and resettlement to collect relevant information.

14. The survey team visited leaders in charge of LA and resettlement from the Land and Resources Bureau, Construction Bureau, Environmental Protection Bureau, and Planning Bureau of Pizhou City for interviews to collect relevant information.

15. The survey team visited chief leaders in charge of LA and compensation from the Daiwei Town Government, and Daiwei and Qufang Village Committees for interviews to collect relevant information. It also issued the questionnaire survey to the 28 households from Daiwei Village affected by LA.

Figure 2-Field Interview

Table 1-List of Agencies and Persons Interviewed

No. Agency Person responsible General Manager Wu Yongxin Everbright Environmental Energy Deputy General Manager Sun Xiandong 1 (Pizhou) Limited Engineering Dept. Ye Zhihui Personnel Dept. Yang Shuailin 2 Investment Service Center, Pizhou Economic Development Zone Wei Dongsheng 3 Pizhou Municipal Land and Resources Bureau Director-general Dai 4 Pizhou Municipal Urban Construction Bureau Chen Huaiya 6 Environmental protection bureau Zhang Shoujun 8 Daiwei Town Government Director-general Wang 9 Daiwei Village Director Liu

3 Impacts of the Project

3.1 Permanent Land Acquisition 16. About 6.67 hectares (about 100 mu) of collective rural land in Daiwei Village, Daiwei Town has been acquired permanently for the Project, including 84.58 mu of cultivated land and 15.42 mu of other farmland (ponds, rural roads), affecting three village groups of Daiwei Village (Groups 5, 6 and 11). See Table 2 for details.

17. Of the 6.67 hectares land, within the boundary of the plant, the land is 5.62 hectares and construction of the access road acquired 1.05 hectares.

Figure 3- Location of the Plant and the Safety Protection Zone

18. Figure 3 is the map of the location of the WTE plant and the safety protection zone. The nearest Qufang village is out of the safety protection zone. Transmission lines were laid underground along the existing road's right of way. Temporary area for workers camps is within the plant.

19. The 6.67 hectares of land used for the Project is approved in two parts, in which the 4 hectares of land used for generator unit construction and production has been subject to separate application and approved preliminarily by the Land and Resources Department of Jiangsu Province, while the 2.67 hectares land used for the WTE plant solidification workshop and ash residue brick making has been obtained from the additional construction land quota of Pizhou City1. See Appendix 1 for the relevant approvals.

Table 2-Information on LA

Acquired land area (mu) Affected village / group Cultivated land Other farmland Irrigated Dryland Total ponds, rural roads Daiwei Daiwei Village - 10.02

1 Based on the additional construction land quota of Pizhou City in the current year identified in the Measures for the Administration of Annual Land Utilization Plans (Decree No.22 of the Ministry of Land and Resources of the PRC) 5

Acquired land area (mu) Affected village / group Cultivated land Other farmland Irrigated Dryland Total ponds, rural roads Daiwei Group 5 23.22 0 23.22 0.48 Daiwei Group 6 0.88 0 0.88 - Daiwei Group 11 60.48 0 60.48 4.92 Subtotal 84.58 0 84.58 15.42 Total 100

3.2 House Demolition in Qufang Village

20. No residential house is to be demolished within the boundary of the plant in the Project. There are 31 transitional houses within the safety protection distance (300 meters) identified in the EIA Report, with a total area of about 1,020 m2. These houses were built for 31 households in Qufang Village during the new countryside building project of Pizhou City in 2006. These houses are in simple structure and unoccupied.

21. The new countryside building project of Pizhou City, which included Qufang Village, began in 2006 and, covered the economic, political, cultural and social development of the countryside. The new settlement in Hongqi Community where the people were relocated is located approximately 1 km from the facilities that meet their needs in their daily lives such as schools, medical facilities, bus transport stations, markets as these facilities are in the community.

22. Hongqi Community was born in this context. At the beginning of 2008, Qufang Village was merged into the Hongqi Community under government direction, and its former houses were demolished after they received compensation cost based on replacement cost, transition subsidy and relocation subsidy according to the local policies. In order to solve the transition period for the AHs, local government built these temporary houses and own the transitional houses for use of the AHs. When the AHs’ new houses were completed, the 31 AHs moved into these houses at the end of 2008. The community has over 800 households, a floor area of 300 mu and is worth a gross investment of CNY80 million. The community includes an integrated service zone, and has a total building area of nearly 100,000 m2. The community is located in southern Daiwei Town, in close vicinity to Provincial Highway 250 and contracted land, is convenient to access, and does not interfere with villagers’ farming. Over 40% of the area in the community is landscaped and it has a beautiful environment. The community is provided with fitness facilities, an infirmary and a primary school. The AHs’ living conditions have improved greatly since their relocation, and they are satisfied with their current lives.

23. There are four housing sizes in the community, namely 30m2, 95 m2, 120 m2 and 160 m2, in which the size of 30 m2 is reserved for the elderly population. These houses were sold to community residents at the preferential prices of CNY20,000, CNY70,000, CNY100,000 and CNY130,000, which is lower than market value

6 respectively. Local residents have purchased houses based on their affordability, and there is no outstanding issue.

Figure 4-Hongqi Community

24. Since the 31 AHs moved into the new community in the end of 2008, there is no people living there. In fact, these houses should be demolished by the end of 2008 as they were built on the cultivated land which is not permitted. This is a special case approved by the government in order to solve the transition for people. According to the survey, only an elderly couple is raising livestock (only 10 chicken) here after the transition period. This household has another house and a courtyard in Hongqi Community for stockbreeding, which is 800 meters away. The elderly couple is aware of the demolition and will be informed ahead of time so that they can be assisted to move their livestock to the courtyard in Honggi Community.

25. The land of these temporary houses is included in the Pizhou Economic Development Zone. The local government has not demolished these houses because the economic development plan for these areas was only finalized just recently at the end of 2012. These houses will be demolished by the government at the end of 2013 for future projects.

26. Therefore, although 1,020 m2 in total area of houses will be demolished within the safety protection distance of the Project, no one will be affected.

Figure 5-Temporary Housing to be Demolished

3.3 Affected Entities

27. The Project does not involve the acquisition of any land or the demolition of any property of any entity.

3.4 Affected Population

28. There are 76 households with 309 persons in Daiwei Village affected by LA within the boundary line of the WTE plant and the access road, as detailed below. For the affected 76 households, they have a total of 328 mu contracted land and 84.58 mu was acquired for the project. There is no reserved land in the village for redistribution.

Table 3-Affected Population

Total Acquired Type of impact contracted land Affected village land LA (directly affected) Households Population Daiwei Village 76 309 84.58 328 Total 76 309

3.5 Affected Ground Attachments

29. The ground attachments affected by the Project are mainly 450 scattered trees in Daiwei Village, including 395 in Group 5, 24 in Group 6 and 31 in Group 11, which are owned by individual villagers.

3.6 Vulnerable Groups

30. The Project will not affect any vulnerable group. Vulnerable groups include disabled, elderly, poor, women headed households and five-guarantee (food, clothing, medical care, housing and burial expenses) households.

3.7 Ethnic Minorities

31. The Project affects no ethnic minority, and all APs are of Han descent.

4 Socioeconomic Survey 32. To learn the production level and standard of living of the APs before LA and HD, the survey team of NRCR conducted a socioeconomic sampling survey on the AHs in January 2013 by means of a questionnaire survey and interview. The survey was conducted on 28 rural households (36.8% of total affected households) affected directly by the Project. The socioeconomic data of the sampling survey will be the baseline data used for external resettlement monitoring and evaluation (M&E).

4.1 Basic Information of Affected Villages

Table 4-Basic Information of Affected Villages

No. Indicator Unit Daiwei Village 1 Number of households / 900 2 Registered population / 2946 2.1 Where: Labor force / 1555 2.2 Female labor force / 782 3 Farmland area mu 3780 3.1 Where: Cultivated land mu 3300 4 Rural economic income CNY0,000 8000 4.1 Output value of primary industries CNY0,000 860 4.2 Output value of secondary industries CNY0,000 6120 4.3 Output value of tertiary industries CNY0,000 1020 5 Farmers’ per capita net income CNY 8786 5.1 Where: Percentage of agricultural income % 15.32 5.2 Percentage of industrial income % 43.40 5.3 Percentage of income from tertiary industries % 37.28

4.2 Survey Results of Affected Households

33. All 117 people of the 28 surveyed households are of Han descent, all of whom are into agriculture and a there is no disabled person and women-headed household. The sample population includes 53 women (45.3%) and 64 men (54.7%)..

4.2.1 Distribution of Sample Population by Age

34. Among the 117 persons of the 28 sample households, 10 are under 8 years old (8.55%), 9 are 8-16 years old (7.69%), 55 are 17-50 years old (47.01%), 26 are 51-60 years old (22.22%) and 17 are above 60 years old (14.53%).Labor force accounts for 69.23%. The elderly population are supported by working family members, and also take some farming work as the young people don’t farm on the land.

Figure 6-Distribution of Sample Population by Age

4.2.2 Distribution of Sample Population by Educational Level

35. Among the 117 persons of the 28 surveyed households, 11 are illiterate (9.40%), 38 have received primary school education (32.48%), 43 have received junior high school education (36.75%), 18 have received senior high school education (15.38%) and 7 have received above senior high school education (5.98%).

Figure 7-Distribution of Sample Population by Educational Level

4.2.3 Housing and Living Conditions

36. The sample households have an average of 4.39 rooms, 0.75 mu of housing land area and a 138.86 m2 house size per household, which translates into per capita average of 1.05 rooms, 0.18 mu of housing land area, and a 33.23 m2 house size .

37. Domestic electricity supply is secured, domestic water is sourced from tap and well water, the main domestic fuels are gas and electricity, and the living environment is good.

4.2.4 Main Household Properties

38. Among the 28 sample households, the average possession of television sets, refrigerators, electric fans, washing machines, electric carts, bicycles and mobile phones is high, while that of cars, personal computers (PCs) and air-conditioners is low, which is consistent with the local production level.

Table 5-Possession of Properties of Sample Households

Average possession Item Unit Total number per household Bicycle, electric cart / 53 189% Electric fan / 76 271% Washing machine / 48 171% Television set / 69 246% PC / 18 64% Air-conditioner / 11 39% Refrigerator / 43 154% Tractor / 0 0% Motorcycle / 8 29% Car / 5 18%

Average possession Item Unit Total number per household DVD/VCD / 25 89% Fixed telephone / 16 57% Mobile phone / 108 386%

4.2.5 Type of Production 39. Among the surveyed households, the majority of the population work outside the community and working in local factories; the cultivated area in the village is small, and most land is used to grow food crops, such wheat and corn; the land area per capita is 1.06 mu. A few households grow greenhouse vegetables or deal with sheet processing. 4.2.6 Employment Status of Labor Force 40. Labor force of the respondents in this survey is 81 persons in total. Among them, 21 persons (26%) take farming as primary job and also take some temporary work at local firms. And other 60 persons (74%) rely on non-agricultural jobs.

4.2.7 Annual Household Income

41. According to the survey, the average annual gross income per household was CNY38,209.67 in 2012, in which agricultural income was CNY1,788.67, accounting for 4.34%, salary from working in local factories was CNY8,556.38, accounting for 20.76%, stockbreeding income was CNY2,842.34, accounting for 6.90%, income from migrant working was CNY18,433.91, accounting for 44.74%, individual business (service) income was CNY8,744.54, accounting for 21.22%, and other income was CNY834.83, accounting for 2.05%.

Figure 8-Income Composition

42. The per capita annual income of the 28 sample households was CNY9,862.14 in 2012. Since the affected village is close to the Pizhou Economic Development Zone, most local farmers work in the development zone and the proportion of those dealing with individual business operations is relatively low, so nonagricultural income is high.

The proportion of nonagricultural income (industrial income, income from migrant working, individual business income and other income) to gross income among local farmers is 89%, and this proportion tends to rise year by year, while agricultural income accounts for only 4% of gross income.

43. It can be seen from the above analysis that the AHs in Daiwei Village have very little reliance on land, as agriculture is no longer their main income source, and the LA has minimal impact on them. Therefore, making rational and effective use of land compensation fees, and assisting them in seeking feasible income alternatives will mitigate impact of land loss in the APs’ income . After LA, the AHs may have more time and may opt to do migrant work. Hence, LA will affect their work arrangements and living standard slightly.

4.2.8 Annual Household Expenditure

44. The survey shows that the average gross expenditure of the 28 households was CNY23,441.48 in 2012, in which agricultural expenses accounted for CNY625.52 (2.67%), water expenses accounted for CNY1,084.44 (4.63%), electricity expenses accounted for CNY1,343.58 (5.73%), communication expenses accounted for CNY2,747.5 (11.72%), educational expenses accounted for CNY1,222.49 (5.22%), medical expenses accounted for CNY672.32 (2.87%), non-staple food expenses accounted for CNY10,268.83 (43.81%), business operating expenses accounted for CNY2,755.19 (11.75%), traffic expenses accounted for CNY420.32 (1.79%), clothing expenses accounted for CNY2,044.51 (8.72%), tax expenses accounted for CNY604.55 (2.87%), and other expenses accounted for CNY256.78 (1.10%).

Figure 9-Household Expenditure Structure

45. The annual expenditure per capita of the sample households was CNY5,609.93 in 2012. The major expenses are for business operation, non-staple food, and communication expenses, while lesser expenditures were geared for agricultural, medical and traffic expenses, which is largely consistent with the local living conditions.

5 Policies, Compensation and Resettlement

5.1 Main Laws and Policies Applicable to Resettlement

46. The resettlement policies of the Project are mainly based on the ADB policies and requirements, and the applicable laws and regulations of the PRC, including: ADB policies ò ADB Policy on Involuntary Resettlement (1995) ò Resettlement Framework (http://www2.adb.org/Documents/Resettlement_Plans/PRC/43901/43901-01-PRC-RP.pdf ) State laws and regulations ò Land Administration Law of the PRC (effective from January 1, 1999, amended on August 28, 2004) ò Regulations on the Implementation of the Land Administration Law of the PRC (Decree No.256 of the State Council, effective from January 1, 1999) ò Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28) (effective from October 21, 2004) ò Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (MLR [2004] No.238) (effective from November 3, 2004) Policies of Jiangsu Province ò Notice of the Jiangsu Provincial Government on Adjusting Compensation Rates for Land Acquisition (JPG [2011] No.40) Policies of Xuzhou Municipality ò Notice of the Xuzhou Municipal Government on Adjusting Compensation Rates for Land Acquisition (XMG [2011] No.60)

5.2 Compensation for Acquisition of Rural Collective Land and Resettlement

5.2.1 Compensation for Land Acquisition 1. Land 47. Due to the low level of reliance on land, the AHs are willing to accept cash compensation based on their communications with the Pizhou Municipal Land and Resources Bureau and the Daiwei Town Government before LA. Based on Document XMG [2011] No.60 and the results of consultation with the AHs, the lump sum compensation rate for LA is fixed at CNY34,800/ mu, including land compensation fees, resettlement subsidies, and compensation fees for young crops.

48. Since the land in Daiwei Village, Daiwei Town is located in Tier-4 areas, the average annual output value for the past three years is CNY1,800 per mu for non-irrigated land or CNY2,000 per mu for irrigated land according to Document XMG [2011] No.60, averaging CNY1,900 per mu. This means that the land compensation rate of the Project is 18 times the average annual output value of land for the past

three years.

2. Ground attachments 49. The ground attachments affected by LA in the Project are mainly scattered non fruit bearing trees, which will be compensated for at the compensation rates for trees and forests specified in Document XMG [2011] No.60, as detailed in Table 6.

Table 6-Compensation for Trees

Item Description Spec. Unit Rate (CNY) Young trees 4 Based on diameter at breast height (at 1.2 Transplanted <3cm 10 meters) regardless of species for /

Ordinary trees trees Ordinary trees 3-5cm 20 transplantable immature trees 5-10cm 25 Based on diameter at breast height (at 1.2 10-15cm 50 meters) regardless of species for mature Felled trees 15-25cm / 100 trees; to be felled and owned by >=25cm 200 proprietors Compensating for not more than 300 30 Forests trees per mu for new forests, or more than / 120 120 trees per mu for mature forests

5.2.2 Income Restoration

50. The acquired land is low-lying land. If this land is used to grow paddy rice, there will be one harvest per annum only. The output value of this land is originally low, while the compensation for LA, which will be fully paid to the AHs, is much higher than former agricultural income, while former nonagricultural income will not be reduced.

(1) Depositing compensation fees to a bank 51. The average annual output value of the acquired land is CNY1,900/mu. According to the survey, the net profit per mu is only about CNY1,000, excluding pesticide, fertilizer and agricultural film expenses (labor input has not been counted yet). The compensation has been paid to the households, while in nearly all families, women control the deposit book. Some APs deposited compensation fees to a bank. Based on the compensation rate of CNY34,800 per mu and the interest rate for one-year time deposits of 2.85%, interest income will be CNY1,131, which is higher than the average agricultural net profit per mu. In addition, APs are released to pursue other opportunities to obtain nonagricultural income. After LA, former agricultural income has been fully compensated for and gross household income increased.

(2) Employment training 52. To strengthen employment and re-employment, improve the employment and business startup skills of land-expropriated farmers and rural laborers, and regulate the management of financial subsidy funds for training, the Pizhou Municipal Government has issued the Opinions on Doing a Better Job in Vocational Skills Training and Employment Services for Land-expropriated Farmers to further strengthen vocational skills training. After 2010, all land-expropriated farmers were provided professional skills training for the urban unemployed to ensure that the employment rate of trained land-expropriated farmers is above 80%.

53. Based on training and employment expectations of land-expropriated farmers, vocational skills training, business startup training and employment guidance will be provided, in which the responsibilities of government agencies concerned are as follows: ò The Pizhou Municipal Labor and Social Security Bureau is responsible for the professional skills training of land-expropriated farmers and employment services: 1) conducting an enterprise employment survey to offer pertinent training courses; 2) selecting large-scale, well-equipped and normatively managed training agencies to provide training; and 3) issuing a national certificate of professional qualification or certificate of completion of training to each trainee for free after he/she passes the examination following training. ò The Administration Commission of Pizhou Economic Development Zone and Daiwei Town Government are responsible for the detailed measurement survey within their respective jurisdictions. ò The Pizhou Municipal Land and Resources Bureau is responsible for providing basic information (list of the farmers whose land will be affected and compensation rate). ò The Pizhou Municipal Finance Bureau is responsible for providing training funds for land-expropriated farmers. ò In addition, the Daiwei Village Committee has set up its own website (http://www.cuncunle.com/VillageWeb/117206/), and releases employment information thereon periodically.

(3) Job opportunities generated by the Project 54. Wu Yongxin, General Manager of Everbright Environmental Energy (Pizhou) Limited, said that skilled workers would be recruited locally on an open, fair and just basis as long as they met the company’s technical requirements and local laborers affected by land acquisition would have priority in being employed as waste transfer vehicle drivers, cleaners and property management workers during operation. Also, during construction, local farmers have priorities to get the non-skilled jobs. It is expected that the monthly income of each type of job for the Everbright Environment Energy (Pizhou) Limited will be higher than the local average income for comparable work.

6 Resettlement Costs

55. The total resettlement cost of the Project is CNY3,594,330, including compensation for LA and resettlement subsidies of CNY3,480,000, compensation for young crops of CNY100,000, and compensation for ground attachments of CNY14,330, as indicated in the table below.

Table 7-Resettlement Costs

No. Item Cost (CNY million) Percentage

No. Item Cost (CNY million) Percentage Compensation for LA and resettlement 1 348 96.8% subsidies 2 Compensation for young crops 10 2.8% 3 Compensation for ground attachments 1.433 0.4% Total 359.433 100%

7 Public Participation, Consultation and Information

Disclosure

56. At the design and planning stage, Everbright Environmental Energy (Pizhou) Limited, and the relevant LA agencies organized public participation activities, such as the socioeconomic survey of the AHs, holding a village meeting on May 4, 2012_at the village office_to discuss issues of LA, incorporating consultation results in the LA plan, listening extensively to households affected by LA, discussing LA compensation rates and resettlement programs, and identifying vulnerable groups within the affected areas. At the stage of preparation for LA, the LA agencies issued the LA announcement in April 2012, and the announcement of the compensation and resettlement program for LA were disclosed to the APs in the village office. {When was Everbright involved in the Pizhou Project? Was there an RP prepared following the resettlement framework?

57. During LA, a task force was established, composed of staff members from the Land and Resources Bureau, Daiwei Town Government, Daiwei Village Committee and AHs to ensure effective LA and to receive the APs’ comments in a timely manner. The task force is composed of stakeholders, so it can communicate with the APs more easily. It solved some existing issues and minimized the impact on stakeholders during LA.

7.1 Public Participation Activities Organized by LA Agencies

58. From March to September 2012, the LA and HD agencies held four focus group discussions (FGDs) and five door-to-door interviews in Daiwei Town, involving 94 persons, in order to discuss local residents’ attitude to the Project, the range of LA impacts, the compensation rates and agreement for LA and HD, the resettlement modes, and environmental protection. The main concerns of the AHs and the solution measures are presented in table 8.

Table 8-Main Concerns and Solution Measures

No Concerns Solutions 1 APs prefer to get cash compensation Cash compensation were paid 2 Compensation rates for land should follow Strictly follow and the hard copy of the the national and provincial policies policies were disclosed in the village office 3 Job opportunities generated by the project Priorities will be provided to the APs

59. While soliciting comments from the APs, the LA agencies also invited some unaffected villagers to attend FGDs, and heeded their comments and suggestions on resettlement. Through the above mentioned public participation activities, affected residents were fully informed about the significance of the Project and the resettlement measures to be taken. The Project received unanimous support to promote local economic development and environmental improvement.

7.2 Public Participation Activities Organized by Everbright Environmental Energy (Pizhou) Limited

60. On May 4, 2012, Everbright Environmental Energy (Pizhou) Limited published the Announcement on the Public Hearing on the Environmental Impact Assessment of the Zhenjiang Waste-to-Energy Project in Pizhou Daily, and selected 16 deputies and 16 observers for the public hearing pursuant to the Interim Measures for Public Participation in Environmental Impact Assessment upon application, in consideration of such factors as location, occupation, expertise background, lingual expression and degree of impact. The deputies were from Daiwei Town and Pizhou Economic Development Zone within 3.5 kilometers around the project site. On May 24, Everbright Environmental Energy (Pizhou) Limited held the EIA public hearing with the focus on soliciting public comments on the Zhenjiang Waste-to-Energy Project. There were over 60 attendees at the public hearing, including public representatives, representatives of the Pizhou Municipal Urban Administration Bureau, Daiwei Town Government and agencies concerned, specially invited experts, representatives of the owner (Everbright Environmental Energy (Pizhou) Limited) and representatives from the EIA agency (Jiangsu Provincial Academy of Environmental Science, Ministry of Environmental Protection).

61. During December 11-13, 2012, Everbright Environmental Energy (Pizhou) Limited organized a team of about 30 people, including staff responsible for urban and rural environmental management of Pizhou City and township heads responsible for waste collection and transfer systems, to visit Jiangyin and Changzhou Cities to learn advanced practices from cities with more experience in waste collection and transfer system construction and improve the Pizhou urban administration staff awareness of the project.

62. On December 28, 2012, Everbright Environmental Energy (Pizhou) Limited organized representatives of villagers to visit Everbright Environmental Energy (Suqian) Limited to properly inform public opinion, learn the operation of the WTE plant that had been put into operation, to learn about practical living conditions of nearby residents, eliminate residents’ worries about waste-to-energy power generation, and be able to commence construction of the Project as soon as possible. , ,.

63. Moreover, through the public participation activities organized by Everbright Environmental Energy (Pizhou) Limited, local residents and officials gained a new understanding of waste-to-energy power generation, and their former worries have

18 subsided. They expect the company to implement the Project properly, satisfactorily and in an environmentally safe manner according to the applicable standards.

Figure 10-FGD and Visits

7.3 Public Participation Activities Organized by Other Entities

64. During the preparation of this report, the survey team of NRCR visited the Land and Resources Bureau, Construction Bureau, and Labor and Social Security Bureau of Pizhou City, Daiwei Town Government and Daiwei Village Committee, and visited affected areas for door-to-door interviews and a questionnaire survey. It was learned that during resettlement, all implementing agencies placed great importance in conducting consultation with the AHs and APs, listened extensively to their comments and reviewed the design repeatedly in order to minimize LA and resettlement impacts on the affected areas. The agencies concerned and village committees held a number of villagers’ congresses to discuss the compensation and resettlement program for LA and how to develop collective public services with compensation fees.

8 Appeal Procedure

65. When any dispute arises from LA and HD, an AP may file an appeal with competent authorities through the following routes: Stage 1: If an AP is dissatisfied with the Resettlement Action Plan, he/she may file an oral or written appeal with the Daiwei Village Committee, which should make a

19 disposition within two weeks. Stage 2: If the AP is dissatisfied with the disposition of Stage 1, he/she may file an appeal with Daiwei Town Government after receiving such disposition, which should make a disposition within two weeks. Stage 3: If the AP is still dissatisfied with the disposition of Stage 2, he/she may file an appeal with the Pizhou Municipal Land and Resources Bureau after receiving such disposition, which should make a disposition within 30 days. Stage 4: If the AP is still dissatisfied with the disposition of Stage 3, he/she may apply for administrative reconsideration with the Pizhou Municipal Government, or bring a suit in a people’s court in accordance with the Civil Procedure Law of the PRC within three months.

66. An AP may file an appeal about any aspect of resettlement, including compensation rates. APs have been notified of the above appeal at a meeting or otherwise, so that they fully understand their right of appeal. Mass media has been utilized for reportage, and the APs’ comments and suggestions have been compiled into messages and fed back to resettlement agencies at all levels. Grievances and appeals from the APs are accepted for free.

67. During the whole construction stage, the above channels will remain effective so that the APs can use them to solve relevant issues.

9 Agencies

68. During project implementation, the agencies responsible for the planning, management, implementation and monitoring of LA activities of the Project include: ‹ Pizhou Municipal Land and Resources Bureau ‹ Pizhou Municipal Labor and Social Security Bureau ‹ Pizhou New District Management Office ‹ Daiwei Town Government ‹ Daiwei Village Committee, Daiwei Town ‹ NRCR Pizhou Municipal Land and Resources Bureau: handling, examining and approving the LA formalities; coordinating, managing, supervising and arbitrating implementation; and conducting the DMS on LA and registration Pizhou Municipal Labor and Social Security Bureau: organizing skills training for the APs and providing employment information and job opportunities Pizhou New District Management Office: implementing HD within the environmental protection line and handling issues arising from HD Daiwei Town Government: assisting in conducting the DMS and confirming the DMS results, implementing LA, HD and resettlement, and solving arising issues Daiwei Village Committee: assisting in conducting the DMS and confirming the DMS results, implementing LA, HD and resettlement, and solving arising issues, and convening a villagers’ congress to disclose information on LA and HD NRCR: responsible for the external M&E of LA, HD and resettlement

10 Monitoring and Evaluation

69. To ensure that LA and HD is implemented in accordance with the applicable ADB policies and realize the objective of proper resettlement, LA, HD and resettlement activities will be subject to regular M&E by NRCR..

10.1 Monitoring and Evaluation Agencies

70. External M&E refers mainly to the regular independent M&E of LA, HD and resettlement activities by the independent monitoring agency. Independent monitoring is the responsibility of NRCR and includes the following: ‹ The progress of implementation and compensation for LA, HD and resettlement; and ‹ The survey and analysis of the APs’ standard of living and production level.

71. Independent monitoring is conducted by an agency independent of resettlement implementation, which reviews all resettlement activities from a comprehensive and long-term perspective. The independent monitoring agency will track resettlement activities to evaluate if resettlement complies with the state laws on LA, HD and resettlement, and the applicable ADB policies, and if the APs’ standard of living and production level have been improved or are at least equal to pre-project levels. The independent monitoring agency will propose suggestions to the implementing agencies according to its monitoring findings in order to solve issues arising from resettlement timely. 72. Monitoring reports will be prepared and submitted to ADB for disclosure on ADB website. Key findings and recommendations from the monitoring reports will be disclosed to affected households in a form and language they can understand.

10.2 Procedure and Scope of Monitoring

Preparing the terms of references of M&E Developing software for the M&E information system Preparing the survey outline, survey forms and record cards of affected residents and typical entities Designing the sampling survey plan: The sample size shall not be less than 15% of the number of households affected by LA and HD. Baseline survey: A baseline survey shall be conducted on households affected by LA and HD as required for independent M&E to obtain baseline data on the standard of living and production level of the monitored households and entities. Establishing the M&E information system: An M&E information system shall be established, where data on M&E is sorted out to establish a database, in order to realize computer-aided analysis and follow-up monitoring. M&E survey

‹ Capacity evaluation of resettlement implementing agencies: investigating the capacity and working efficiency of the resettlement implementing agencies ‹ Progress of resettlement, compensation rates and payment ‹ Impact analysis of LA and HD ‹ Follow-up survey and evaluation of income level of households affected by LA (with a sampling rate of not less than 15%) ‹ Income restoration of the AHs ‹ Public participation and consultation: monitoring public participation activities and their effectiveness during LA and HD ‹ Appeals: monitoring the registration and handling of appeals raised by the APs Compiling monitoring data and establishing a database Comparative analysis Preparing M&E reports according to the monitoring plan ‹ In August 2013, the M&E Report (No.1) will be submitted; ‹ In February 2014, the second round of M&E will be conducted and the M&E Report (No.2) submitted; ‹ In December 2014, the third round of M&E will be conducted and the M&E Report (No.3) submitted.

10.3 Monitoring Indicators

‹ Socioeconomic indicators: per capita net income of rural residents, GDP, employment rate ‹ Institutional indicators: staff composition, staff quality, rules and regulations, equipment, and completion rate of matters ‹ Persons affected by LA: availability of compensation fees, number of persons participating in different types of living security, proportion of non-agricultural income to gross income, training received (men-times, contents, training funds, effectiveness), rate of change of income, employment rate (change in industries of employment), satisfaction with resettlement ‹ Public participation: number of times of participation, contents and impact on project implementation

11 Conclusion

73. (1) LA and resettlement progress: In August 2012, the Pizhou Municipal Land and Resources Bureau completed the DMS; in September 2012, LA compensation agreements were signed with the AHs, and all compensation were paid to the affected households and LA was completed. The Daiwei Township Government provided official certificate letter, which is attached in Appendix 2.

74. (2) Impacts of the Project: 6.67 hectares (about 100 mu) of collective rural land of Daiwei Village, Daiwei Town has been acquired permanently for the Project, including 84.58 mu of cultivated land. No residential house is to be demolished within

22 the boundary of the plant in the Project. There are 31 transitional houses within the safety protection distance (300 meters) identified in the EIA Report. These houses are in simple structure and unoccupied. These houses are not intended mainly for residence, and will be demolished by the local government by the end of 2013.

75. (3) Compensation for LA and resettlement funds: The compensation rates comply strictly with the established policies, and the APs are satisfied. All compensation fees had been paid to the APs at a time before LA, and there is no outstanding issue.

76. (4) LA has no significant impact on the APs’ livelihoods; the income restoration measures being taken by the local government are adequate, and it is not necessary for the owner to prepare and implement another income restoration program.

77. (5) Organizational structure: The implementing agencies of the Project have defined duties and the staff is well trained and competent for resettlement tasks. Everbright Environmental Energy (Pizhou) Limited is the owner of the Project, the Pizhou Municipal Urban Administration Bureau is the executing agency, and the Pizhou Municipal Land and Resources Bureau is the approval authority of the land used for the Project. All agencies are able to perform their respective functions to promote the successful implementation of LA.

78. (6) Public participation: At the preparation and implementation stages, the owner organized a number of public participation activities to address concerns of the AHs, which include the DMS, compensation rates and disbursement of compensation fees. Additionally, the owner organized management staff of the Pizhou Municipal Government and villager representatives to visit other plants that had been put into operation. As a result, the APs have fully realized the necessity and importance of this public benefit project, laying a foundation for successful resettlement.

79. (7) Grievance redress: The appeal channels for the APs are unobstructed, and a full-time coordinator has been appointed, so that the APs know how to file appeals when their rights are infringed on. No appeal has been received to date.

12 Next-step Action Plan

80. The compensation and resettlement work for LA of the Project has been established as effective. The next-step action plan is as follows:

81. (1) The government agency concerned will demolish the 31 transitional houses within the safety protection distance by December 2013.

82. (2) The certificate for the right to use state-owned land for the land used for the Project will be obtained by the end of 2013, especially the 2.67 hectares of land from the additional construction land quota of Pizhou City.

83. (3) The external monitoring agency will conduct follow-up, especially in regards to the income restoration of the AHs and job opportunities offered by the Project.

Appendix 1: Land Approvals

Document A: Preliminary Examination Opinion of the Land and Resources Department of Jiangsu Province on the Land Used for the Pizhou WTE Plant (Phase 1) Department: the Land and Resources Department of Jiangsu Province Document No.: JLRDP [2012] No.155 Time: September 27, 2012 Subject: approval of 4 hectares of land used for the Project

Document B: Note on the Land Used for the Pizhou WTE Plant (Phase 1) Department: Pizhou Municipal Government Time: September 26, 2012 Topic: The 6.67 hectares of land used for the Project is approved in two parts, in which the 4 hectares of land used for generator unit construction and production has been subject to separate application and approved preliminarily by the Land and Resources Department of Jiangsu Province, while the 2.67 hectares of land used for the WTE plant access road, solidification workshop and ash residue brick making has been obtained from the additional construction land quota of Pizhou City.

Document C: LA agreement This is an LA agreement. Party A: Daiwei Village Committee, Daiwei Town, Pizhou City Party B: Dai Ziye Topic: one-time cash compensation of CNY41,760 for 1.2 mu of acquired land, September 16, 2012

Appendix 2: Certificate of Payment

Certificate This is to certificate that all land compensation for the 100 mu land acquired for the Everbright Pizhou Waste-to-Energy (WTE) Project have been paid to the affected farmers.

Dawei Township Government 2013-05-13