Resettlement Plan People's Republic of China: Chongqing Urban–Rural

Resettlement Plan

October 2015

People's Republic of China: Chongqing Urban–Rural Infrastructure Development Demonstration II Project

Prepared by Chongqing Chengkou County Traffic Development Corporation (CCTDC) for the Asian Development Bank. This is an updated version of the draft originally posted in March 2013 available on http://www.adb.org/projects/documents/chongqing-urban-rural-infrastructure- development-demonstration-chengkou-rp

CURRENCY EQUIVALENTS (as of 15 October 2015)

Currency unit – yuan (CNY) CNY1.00 = $0.1575 $1.00 = CNY6.3471

ABBREVIATIONS ADB – Asian Development Bank AH – affected household AP – affected person CCLRB – Chengkou County Land and Resources Bureau CCTDC – Chengkou County Traffic Development Corporation DMS – detailed measurement survey FGD – focus group discussion M&E – monitoring and evaluation PMO – project management office PRC – People's Republic of China RIB – resettlement information brochure RP – resettlement plan

WEIGHTS AND MEASURES mu – 666.7 square meters hectare – 15 mus

NOTE

In this report, "$" refers to US dollars.

This updated 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.

ADB-financed Chongqing Urban and Rural Infrastructure Development II Project

Chengkou County Urban-Rural Highway

Network Improvement Subproject

Updated Resettlement Plan

Chengkou County Traffic Development Corporation (CCTDC)

Chongqing, China October 2015

Contents Executive Summary ...... 1 A. Background of the Subproject ...... 1 B. Scope of Land Use ...... 1 C. Information Disclosure, Participation and Grievance Redress ...... 1 D. Legal Framework and Compensation Rates ...... 1 E. Resettlement and Income Restoration ...... 2 F. Estimated Resettlement Costs and Management ...... 2 G. Organizational Structure and Implementation Schedule ...... 2 H. Monitoring and Evaluation ...... 3 1. Introduction to the Subproject ...... 4 1.1 Foreword ...... 4 1.2 Basis for RP Preparation ...... 4 1.3 Subproject Description ...... 4 1.4 Measures to Reduce Impacts ...... 6 2. Impacts of the Subproject ...... 6 2.1 Overview ...... 6 2.2 Impacts of the Subproject ...... 6 2.2.1 Permanent LA ...... 6 2.2.2 Temporary Land Occupation ...... 7 2.2.3 HD and Impact Analysis ...... 8 2.2.4 Affected Vulnerable Groups ...... 8 2.2.5 Affected Ethnic Minorities ...... 8 2.2.6 Affected Ground Attachments ...... 8 3. Socioeconomic Profile ...... 9 3.1 Socioeconomic Profile of Chengkou County ...... 9 3.2 Socioeconomic Profile of the Affected Townships ...... 9 3.3 Socioeconomic Profile of the Affected Villages and Groups ...... 10 3.4 Socioeconomic Survey ...... 10 3.4.1 Demographics of the Affected Population ...... 10 3.4.2 Possession of Cultivated Land ...... 11 3.4.3 Financial Analysis ...... 11 3.4.4 Main Economic Activities ...... 13 4.1 Public Participation Plan ...... 13 4.1.1 Status of Public Participation Activities ...... 13 4.2 Grievance Redress Mechanism ...... 15 5.1 Principles for Resettlement ...... 17 5.2 Resettlement Policies of the Subproject ...... 17 5.3 ADB’s Policy on Involuntary Resettlement ...... 17 5.4 Policy Gaps ...... 18 5.5 Compensation Rates ...... 18 5.5.1 Compensation Rates for Permanent LA...... 18 5.5.2 Compensation Rates for Temporary Land Occupation ...... 19 5.5.3 Compensation Rates for HD ...... 19 5.5.4 Compensation Rates for Ground Attachments ...... 19 5.6 Eligibility for Compensation and Entitlement Matrix ...... 20 1

6. Resettlement and Income Restoration Plan ...... 1 6.1 Objectives and Principles of Compensation and Resettlement ...... 1 6.2 Income Restoration Plan and assistance measures ...... 1 6.2.1 Land Replacement ...... 1 6.2.2 Utilization of Land Compensation ...... 1 6.2.3 Skill Training for the APs ...... 2 6.2.4 Employment Driven by the Subproject ...... 2 6.3 House Demolition and Resettlement Plan For Rural Residences ...... 2 6.4 Livelihood Restoration For Vulnerable Groups ...... 3 6.5 Restoration of Temporarily Occupied Land ...... 3 6.6 Recovery Plan of Ground Attachments and Special Facilities ...... 3 7. Updated Resettlement Costs and Management ...... 3 7.1 Updated Resettlement Budget...... 3 7.2 Funding Sources ...... 4 7.3 Management And Disbursement Of Resettlement Funds ...... 4 7.3.1 Fund Flow ...... 4 7.3.2 Disbursement Plan ...... 5 8. Institutional Arrangements ...... 5 8.1 Executing Agency ...... 5 8.2 Subproject Owner and IA ...... 6 8.3 Organizational Responsibility ...... 6 8.4 Staffing and Equipment ...... 8 8.4.1 Equipment ...... 8 8.4.2 Training...... 8 9. Implementation Plan of Relocation and Resettlement ...... 9 10. M&E and Reporting Arrangements ...... 10 10.1 M&E ...... 10 10.2 Internal Monitoring ...... 10 10.2.1 Procedure ...... 10 10.2.2 Scope ...... 10 10.2.3 Reporting ...... 10 10.3 External Independent Monitoring ...... 10 10.3.1 Purpose and Tasks ...... 10 10.3.2 External M&E Agency ...... 10 10.3.3 Procedure and Scope ...... 11 10.3.4 Monitoring Indicators ...... 11 10.3.5 Reporting ...... 12 Appendix 2: Resettlement Information Booklet (RIB) (Updated) ...... 15 A. Background of the Subproject ...... 15 B. Impacts ...... 15 C. Resettlement policies ...... 15 D. Rights and obligations of APs ...... 15 E. Compensation Rates ...... 16 F. Grievance redress mechanism ...... 17

Abbreviations

ADB - Asian Development Bank AP - Affected Person AH - Affected Household DMS - Detailed Measurement Survey FGD - Focus Group Discussion M&E - Monitoring and Evaluation PMO - Project Management Office RIB - Resettlement Information Brochure PRC - People’s Republic of China RP - Resettlement Plan CCLRB - Chengkou County Land and Resources Bureau CCTDC - Chengkou County Traffic Development Corporation

Units

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

Executive Summary A. Background of the Subproject The Chengkou County Urban-Rural Highway Network Improvement Subproject (hereinafter, the “Subproject”) is a subproject of the ADB-financed Chongqing Urban and Rural Infrastructure Development II Project, starting from Yinghong Village, Yanhe Xiang (formerly Zhongxi Xiang) and ending in Shuiba Village, Shuanghe Xiang, designed as a Class-4 4-lane highway with asphalt gravel pavement, 3 bridges totaling 91m, 19 culverts and a tunnel of 1,760 m, with a roadbed width of 6.5m, a driveway width of 2×3.0 m, a design driving speed of 20km/h and a full length of 7,395m. The gross investment in the Subproject is 99,356,464 yuan, B. Scope of Land Use 359.18 mu of rural collective land will be acquired permanently for the Subproject, including 74.79 mu of cultivated land, 2.0 mu of housing plot, 232.99 mu of woodland and 49.4 mu of wasteland, affecting 43 households with 152 persons in 4 groups of two villages in two townships in Chengkou County. 68 mu of land will be occupied temporarily, including 11 mu of cultivated land, affecting 28 households with 114 persons in two villages in two townships. Rural houses of 400 m 2 will be demolished, including 100 m 2 in reinforced concrete structure, 100 m 2 in masonry concrete structure, 100 m 2 in masonry timber structure and 100 m 2 in earth timber structure, affecting two households with 7 persons in one village in one township. C. Information Disclosure, Participation and Grievance Redress All the affected households, villages and communities, village officials and township governments were involved in the socioeconomic survey and the DMS in Jan. 2016. During meetings, interviews, FGDs and public consultation sessions, local representatives and APs participated in the preparation of this RP and their concerns have been integrated into this RP. 13 FGDs with 210 APs were held at the village level from November 2011 to March 2015. Before implementation, the PMO, IA and village officials will further consult with the APs to ensure their interests are protected and to provide job opportunities to them. This RP has been made available at the affected community and village committees. This RP will be disclosed on ADB’s website and the Resettlement Information Booklet (RIB) distributed to the affected households in March 2013. And the updated RIB distributed in Jan. 2016. The RIB contains the resettlement scope, project schedule, compensation rates for land and other assets, relocation and restoration measures, and grievance redress mechanism. Since this updated RP passed review, the affected community and village committees have been visited irregularly, and appeals collected and acted on to ensure the successful implementation of this RP. When a grievance arises, the AP may first file an oral or written appeal with the village committee. If such appeal is not handled, the AP may file a further appeal with the township government, and then the district land and resources; in this case, such appeal should be handled within two weeks. In addition, regardless of how the grievance redress mechanism operates, the AP may file a suit in a civil court in accordance with the Civil Procedure Law at any time. D. Legal Framework and Compensation Rates The resettlement policies of the Subproject have been developed in accordance with the Land Administration Law of the People’s Republic of China (PRC) (2004), the Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28), the Notice of the Chongqing Municipal Government on Adjusting Matters concerning Compensation and Resettlement Policies for Land Acquisition (CMG [2008] No.45), the Interim

Measures for Compensation and Resettlement for Land Acquisition of Chengkou County (CCG [2008] No.33), the Notice of the Chongqing Municipal Government on Further Adjusting Compensation Rates for Land Acquisition (CMG [2013] No.58), and the Notice of the Chengkou County Government on Adjusting Compensation Rates for Land Acquisition (CCG [2013] No.53). This RP complies with laws and regulations of the RPC, and ADB’s Safeguard Policy Statement (2009) Safeguards Requirements 2 on Involuntary Resettlement. The principles for resettlement are as follows: (i) Involuntary resettlement should be avoided where feasible, or negative impacts are minimized through the comparison of options; (ii) The APs are granted compensation and rights that can at least maintain or even improve their livelihoods in the absence of the Subproject; (iii) Temporary occupation should be minimized; (iv) The APs are given compensation and assistance in resettlement whether legal title is available or not; (v) The per capita cultivated area after land loss must be sufficient to maintain the former living standard; (vi) 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 ; (vii) Preferential policies in resettlement and compensation for LA, special funds disbursement, minimum living security and employment should be provided to vulnerable groups; (viii) The APs fully understand their entitlements, the method and standard of compensation, the livelihood and income restoration plan, and the project schedule; (ix) HD and resettlement should begin after all compensation has been paid and other rights offered; (x) The resettlement costs are sufficient to cover all affected aspects ; and (xi) Any arising problem should be identified and solved through monitoring. E. Resettlement and Income Restoration The compensation rates for resettlement will comply with the Regulations on Land Administration of Chongqing Municipality, the Notice of the Chongqing Municipal Government on Further Adjusting Compensation Rates for Land Acquisition (CMG [2013] No.58), the Notice of the Chengkou County Government on Adjusting Compensation Rates for Land Acquisition (CCG [2013] No.53), and ADB’s policy on involuntary resettlement. The sum of land compensation and resettlement subsidy is 26.66 times the AAOV, which will be paid to the affected village collectives for developing the collective economy, and making production and livelihood arrangements for members of the collective economic organizations. Each village will decide how to use compensation fees by holding a village meeting. It is learned that in some villages, compensation will be used to improve infrastructure, such as village roads, small irrigation facilities and schoolhouses; in some villages, compensation will be used to develop agriculture and stockbreeding to promote the employment of villagers and increase their income. Income restoration measures also include offering job opportunities at the construction and operation stages, developing high-value commercial crop cultivation, promoting the development of secondary and tertiary industries, offering skills training of the APs, etc. The households affected by HD will be resettled on allocated housing land. F. Estimated Resettlement Costs and Management The resettlement budget of the Subproject is 14.1839 million yuan. G. Organizational Structure and Implementation Schedule Under the leadership of the Subproject Leading Group, the Chengkou PMO is responsible for overall project management. The owner of the Subproject is Chengkou County Traffic Development Corporation （CCTDC ）, which is responsible for the implementation of the Subproject, including preparation and coordination for the development of this RP, coordination with the CCLRB’s LA and resettlement workThe Chengkou County Land and Resources Bureau

(CCLRB), is responsible specifically for resettlement implementation, including preparation and coordination at the preparation stage, resettlement at the implementation stage, and subsequent monitoring and evaluation (M&E). All affected township governments and village committees will have specially assigned persons to coordinate resettlement. H. Monitoring and Evaluation M&E includes internal and external monitoring, where internal monitoring is intended to ensure that all agencies responsible act in strict conformity with the principles and schedule in this RP, and external monitoring is performed periodically by an external M&E agency independently, which reports to the Chongqing PMO periodically, and proposes suggestions on issues arising from resettlement to facilitate resettlement activities. I. Contact This Updated RP was prepared by and will be updated by CCTDC, whose contact person is Section Chief Chen (Tel: +86 23 59223371). J. Note on Update This RP has been updated based on the reviewed construction drawings and the fieldwork to confirm the inventory of losses and census of affected persons. Compared to the feasibility study stage, the affected townships & villages has remained unchanged and the proposed route largely unchanged, while some bridges and culverts have been added. After this update, there are 3 bridges totaling 91m and 19 culverts, and the full length of the highway has reduced from 10.188km to 7,395km. Through optimization, LA area has reduced from 490.80 mu to 359.18 mu, and affected population reduced from 168 households with 630 persons to 43 households with 152 persons; HD area has reduced dramatically from 7,360 m2 to 4,00 m 2, and affected population reduced from 38 households with 155 to two households with 7 persons.

1. Introduction to the Subproject 1.1 Foreword 1 This Updated RP has been prepared in accordance with ADB’s Safeguard Policy Statement (2009) Safeguards Requirements 2 on Involuntary Resettlement, laws and regulations of the PRC, and the policies on land use of the Chongqing Municipal and Chengkou County Governments, provides an overview of this policy framework, and proposes effective measures to mitigate the Subproject’s negative impacts on the basis of adequate public participation and consultation. 2 For the Chinese government and ADB, the primary purpose of an RP is to ensure that the living standard of those losing land or properties inevitably in a development project is equal to or even better than the "without project" scenario. All policies, suggestions and measures included in this RP are committed to this purpose.

1.2 Basis for RP Preparation 3 The basis for the preparation of this RP is as follows: ⑴ ADB’s Safeguard Policy Statement (2009) Safeguards Requirements 2 on Involuntary Resettlement; Ѧ Laws and regulations of the PRC; ѧ Local regulations and policies of Chongqing Municipality and Chengkou County; Ѩ Reports on project design and evaluation: Feasibility Study Report, Environmental Impact Assessment Report, Detailed Design; ѩ Fieldwork of the project site and DMS in Jan. 2016); Ѫ In-depth interviews with staff of the Chengkou County Government, and the affected township, village and village groups ѫ Sampling socioeconomic survey in November 2011 and additional survey in Augest 2015; ⑻ Documentary evidence on land use of the affected village committees and groups; ѭ FGDs with representatives of the APs, and town, village and group officials on compensation policies and rates, expected resettlement modes, and income restoration programs; Ѯ Discussions with government officials; (11) Interviews with the poor and other vulnerable groups; (12) Sampling survey on the subproject area in 2015 4 The above items provide a policy framework for the proposal of measures to reduce the Subproject’s negative impacts, and allows for the income restoration of the APs. The engineering data in this RP is from the construction drawings and the fieldwork. This RP will be disclosed on ADB’s website before loan evaluation. In addition, this RP is updated on the basis of the detailed measurement survey (DMS in Januuary 2016). The updated RP was submitted to ADB for approval and disclosure, and distributed to the APs in the form of the RIB in Januuary 2016 .

1.3 Subproject Description 5 The Subproject is a subproject of the ADB-financed Chongqing Urban and Rural Infrastructure Development II Project, starting from Yinghong Village, Yanhe Xiang (formerly Zhongxi Xiang) and ending in Shuiba Village, Shuanghe Xiang. See Figure 1-1. The Class-4 rural highway with a full length of 7,395m in these townships is consistent with the local traffic network plan, which will promote the county’s economic growth. The length of this

4 highway has been reduced from 10.188km to 7,395km by nearly 28% through optimization without changing the starting and ending points. Refer to the drawing at below. The red line is the route of the road section K3+275~K6+335 in the preliminary design (PD), the disadvantage in the red line would be that the length of the road is longer and the construction would be difficult; however, the average of road slope would meet the requirements of the design code. The blue line is the updated route of road, for which the length of road as well as the difficult level of the construction have been reduced; however, the average slope of the road will be increased. Eventually the blue line is the proposed route for the detail design.

‹ Updated road section of K8+010 ～end (the section after tunnel) in original design (preliminary design) Refer to the drawing below. The red line is the route of the road section from K8+010 to the end of road in the preliminary design (PD), the disadvantage in the red line would be that the connection route of road between the exit of Jianganliang tunnel and the rural highway is not good enough and there will be a potential risk because the sharp turn would be occurred after the exit of the tunnel. The blue line is the updated route of road, in which the section of rural highway is shorten and smooth to connect the highway after exit of the tunnel. Eventually the blue line is the proposed route for the detail design.

1.4 Measures to Reduce Impacts 6 At the design stage, the owner and the design agency optimized the subproject design by adding bridges and culverts to minimize land occupation, HD, and impacts on the economy and people’s lives. See Chapter 2 for details.

2. Impacts of the Subproject 2.1 Overview 7 From August 2015 to January 2016 , the RP preparation agency conducted a DMS on the Subproject in coordination with the owner. According to the survey, the area of rural collective land acquired permanently for the Subproject has reduced from 490.80 mu to 359.18 mu, including 74.79 mu of cultivated land, 2.0 mu of house, 232.99 mu of woodland and 49.4 mu of wasteland, affecting 43 households with 152 persons in 4 groups of two villages in two townships in Chengkou County. 68 mu of land will be occupied temporarily, including 11 mu of cultivated land, affecting 28 households with 114 persons in two villages in two townships. The area of rural houses demolished has reduced from 7,360 m2 to 400 m2, including 100 m2 in reinforced concrete structure, 100 m2 in masonry concrete structure, 100 m2 in masonry timber structure and 100 m 2 in earth timber structure, or main houses of 350 m2 and auxiliary houses of 50 m 2, affecting two households with 7 persons (formerly 38 households with 155 persons) in one village in one township. In addition, 10 types of ground attachments will be affected, including enclosing walls, wells, tombs and telegraph poles.

2.2 Impacts of the Subproject 2.2.1 Permanent LA 8 359.18 mu of rural collective land will be acquired permanently for the Subproject, including 74.79 mu of cultivated land, 2.0 mu of housing plots, 232.99 mu of woodland and 49.4 mu of wasteland, affecting 43 households with 152 persons in 4 groups of two villages in two townships in Chengkou County, as shown in Table 2-1. The route at the feasibility study stage ran through Groups 4 and 6 of Yinghong Village. After comparison, the route has been adjusted to run through Group 2 of Yinghong Village, thereby reducing the number of AHs from 71 to 25, but increasing LA area from 251.7 mu to 305.23 mu. However, an advantageous point is that acquired housing land area has been reduced from 6.2 mu to 0.

Table 2 Summary of Permanently Acquired Land LA area Project Xiang Village Group AHs APs Cultivated Housing Wood Waste Subtotal land land land land 2 12 42 141.20 32.00 0.0 180.22 10.25 Yinghong Yanhe 4 13 46 164.03 35.49 0.0 37.27 10.00 The Subtotal 25 88 305.23 67.49 0.0 217.49 20.25 Subproject 1 13 46 22.15 5.00 2.0 7.00 8.15 Xiaoshuiba Shuanghe 4 5 18 31.80 2.30 0.0 8.50 21.00 Subtotal 18 64 53.95 7.30 2.0 15.50 29.15 Total 43 152 359.18 74.79 2.0 232.99 49.40 Source: fieldwork by CCTDC in 2015

9 Woodland acquisition will not affect farmers’ income because it is collectively owned and farmers cannot sell timber. Woodland will be reallocated by replacement after woodland acquisition. 10 43 AHs will lose cultivated land due to the Subproject, in which 29 AHs (67.44%) will have land loss rates of less than 10%, 11 AHs (25.58%) will have land loss rates of 10%-20%, and 3 AHs (6.98%) will have land loss rates of 21%-30%. Calculated wtih 4500 of Farmers’ per capita net income and 1800 yuan/mu of AAOV, All farmers income loss rates less 4.5%.

Table 3 Summary of Land and income Losses

Land loss rate (H Hs) Project <10% 10%~20% 20%~30% 30%~50% >50% Xiang Village Group AHs Income loss rate (HHs) <1.5% 1.5-3.0% 3.0-4.5% 4.5-7.5% >7.5% Yinghong 2 12 6 3 1 0 Yanhe 4 13 8 6 1 0 The 小计 25 14 9 2 0 0 Subproject 1 13 10 1 2 Xiaoshuiba Shuanghe 4 5 4 1 0 小计 18 15 2 1 0 0 Total 43 29 11 3 0 0 Percent 67.44% 25.58% 6.98% 0.00% 0.00%

2.2.2 Temporary Land Occupation 11 68 mu of land will be occupied temporarily for waste dumps, temporary construction roads, stockyards, etc., including 11 mu of cultivated land, affecting 28 households with 114 persons in two villages in two townships. See Table 4.

Table 4 Summary of Temporarily Acquired Land Temporarily acquired rural collective land (mu) Affected Other Project Xiang Village Group Cultivated Wood Waste Subtotal collective HHs Population land land land land 4 13 1 5 5 3 4 17 Yinghong Yanhe 6 15 2 4 7 3 5 22 The Subtotal 28 3 9 12 6 9 39 Subproject 1 18 3 7 6 2 8 33 Xiaoshuiba Shuanghe 4 22 5 8 8 1 11 42 Subtotal 40 8 15 14 3 19 75

Total 68 11 24 26 9 28 114 Source: fieldwork in 2015

2.2.3 HD and Impact Analysis 12 Rural houses of 400 m 2 will be demolished for the Project, including 100 m 2 in reinforced concrete structure, 100 m 2 in masonry concrete structure, 100 m 2 in masonry timber structure and 100 m 2 in earth timber structure, affecting two households with 7 persons in one village in one township. See Table 5.

Table 5 Summary of HD Impacts House structure and size (m2) House use and size (m2) Xiang Village Group AHs APs Reinforced Masonry Masonry Earth Main Auxiliary Total Store Plant concrete concrete timber timber house house 1 2 7 400 100 100 100 100 350 50 Xiaoshuiba Shuanghe 4 0 0 0 0 0 0 0 0 0 Subtotal 2 7 400 100 100 100 100 350 50 Total 2 7 400 100 100 100 100 350 50

13 Two households are affected by HD and will be resettled. 2.2.4 Affected Vulnerable Groups 14 The vulnerable population affected by the Subproject include two households composed of old people mainly with 3 persons, 3 households composed of female laborers mainly with 10 persons, and 3 poor households with 15 persons, totaling 9 households with 28 persons, with a total LA area of 3 mu and a total HD area of 100 m 2 (masonry timber structure). See Table 6.

Table 6 Summary of Affected Vulnerable Groups Households Households composed of old composed of female Poor households LA area HD area Xiang Village Group people mainly laborers mainly (mu) (m2) HHs Population HHs Population HHs Population 4 1 3 2 9 0 0 Yanhe Yinghong 2 0 0 1 4 0 0 0 0 1 1 1 1 3 1 100 Shuanghe Xiaoshuiba 4 1 2 1 6 2 0 Total 2 3 3 10 3 15 3 100 Note: Affected Vulnerable Groups include Temporary Land Occupation in this survey. Source: fieldwork in 2015,

2.2.5 Affected Ethnic Minorities 15 The Subproject affects no minority population. 2.2.6 Affected Ground Attachments 16 Ground attachments affected by the Subproject refer mainly to enclosing walls, fences, telegraph poles, wires, cables, trees, tombs, etc. on both sides of the proposed highway. See Table 7.

Table 7 Summary of Affected Ground Attachments and Trees Quantity Item Unit Remarks Total Yanhe Shuanghe Building Enclosing walls m3 120 40 80 attachments Fences Earth m2 110 40 70

Slab m2 130 50 80 Septic tanks / 8 3 5 Ashlar Tombs / 7 3 4 Telegraph poles / 5 2 3 Wires m 800 300 500 Water canals m3 200 50 150 Masonry Wells / 2 1 1 Pumped Dia. 2-4cm / 100 40 60 Orange Fruit Dia. 4-7cm / 120 50 70 Orange trees Dia. 7-10cm / 110 50 60 Orange Dia. 3-5cm / 900 400 500 Trees Dia. 5-10cm / 500 200 300 Other Timber Dia. 10-15cm / 350 180 170 trees trees Dia. 15-20cm / 400 172 228 Dia. >25cm / 152 72 80

17 10 tombs will be affected by the Subproject, mostly completed over 20 years ago. According to local customs, such tombs will be relocated on specially selected dates.

3. Socioeconomic Profile 3.1 Socioeconomic Profile of Chengkou County 18 Wulong County is located in the northernmost part of Chongqing Municipality and in the hinterland of the Daba Mountains, bordered by Zhenping and Pingli Counties in Shaanxi Province on the east, Wuxi and Kaixian Counties in Chongqing Municipality on the south, Xuanhan County and Wanyuan City in Sichuan Province on the west, and Ziyang and Langao Counties in Shaanxi Province on the north. 19 In 2014, the county’s GDP was 4.6 billion yuan, up 6.1% year-on-year; fixed asset investment 6.797 billion yuan, down 6.3%; local fiscal revenue 481 million yuan, up 12.4%; and social retail sales of consumer goods 1.161 billion yuan, up 13.9%. Urban residents’ per capita disposable income and rural residents’ per capita net income was 19,355 yuan and 6,491 yuan respectively, up 10.3% and 13.1% respectively.

3.2 Socioeconomic Profile of the Affected Townships 20 Yanhe Xiang is located in western Chengkou County and south of the Renhe River, 40km away from the county town, with a land area of 51 km 2 and a population of 8,100, governing 10 villages. 21 Shuanghe Xiang is located in southwestern Chengkou County, 55km away from the county town, governing 9 villages and 70 village groups, with 2,942 households with 10,800 persons. In 2014 the Xiang’s GDP was 67 million yuan and per capita net income 4,274 yuan. The main income sources are outside employment, crop cultivation and stockbreeding. See Table 8.

Table 8 Basic Information of the Affected Xiangs Rural economic Farmers’ per Population Cultivated Food crop Xiang income (0,000 capita net (0,000) area (mu) output (ton) yuan) income (yuan) Yanhe 0.85 18174 2926 1553 4440 Shuanghe 1.08 26338 3428 1946 4530

3.3 Socioeconomic Profile of the Affected Villages and Groups 22 The Subproject runs through Yinghong Village, Yanhe Xiang and Xiaoshuiba Village, Shuanghe Xiang. See Table 9.

Table 9 Basic Information of the Affected Villages Farmers’ per Agricultural Poor Poor Xiang Village HHs Population capita net population households population income (yuan) Yanhe Yinghong 405 1633 1633 38 178 4486 Shuanghe Xiaoshuiba 287 1170 1179 74 334 4502 Source: socioeconomic survey in 2015

23 It can be seen that the farmers’ per capita net income of the two affected villages is about 4,500 yuan, lower than the county average of 4,871 yuan.

3.4 Socioeconomic Survey 24 In November 2011, the RP preparation agency conducted a socioeconomic survey on the AHs with the assistance of CCTDC for the purpose of: (i) obtaining the socioeconomic information of the APs; and (ii) learning their expectations in terms of LA, HD and income restoration. 25 The survey covered 55 AHs, accounting for 32.74% of all AHs, and was conducted in the forms of questionnaire survey and interview. In additional survey in August 2015, only survey for impacted HHs, exclude socioeconomic data for HHs.

Table 10 Sample Village Groups and Households Sample Sampling Project Xiang Village Group Ahs Remarks households rate (%) 4 39 12 30.77% Yanhe Yinghong The 6 32 12 37.50% Subproject 1 63 16 25.40% Shuanghe Xiaoshuiba 4 34 15 44.12% Total 168 55 32.74% 0

3.4.1 Demographics of the Affected Population 26 55 households with 215 persons were surveyed, covering gender, age, educational level, occupation, etc. See Table 11.

Table 11 Demographics of the Sample Households Xiang Yanhe Shuanghe Total Village Yinghong Xiaoshuiba Gender Male Female Male Female Male Female Subtotal % HHs 24 31 55 Population 95 120 215 Average family size 4 3.9 3.91 1. Age distribution <16 years 10 11 13 12 23 23 46 21.40% 16-60 years 26 27 35 34 61 61 122 56.74% >60 years 12 9 13 13 25 22 47 21.86% Total 48 47 61 59 109 106 215 2. Educational level Illiterate 4 5 5 4 9 9 18 8.37% Primary school 9 7 8 7 17 14 31 14.42%

Junior high school 25 27 42 41 67 68 135 62.79% Senior high school or above 10 8 6 7 16 15 31 14.42% Total 48 47 61 59 109 106 215 3. Labor force Children 6 7 7 5 13 12 25 11.63% Students 9 9 10 10 19 19 38 17.67% Laborers 20 22 31 31 51 53 104 48.37% Old people 12 9 13 13 25 22 47 21.86% The sick 1 1 0 1 0.47% Total 48 47 61 59 109 106 215 3. Occupation composition of labor force Farming at home 10 10 8 10 18 20 38 36.54% Working outside 10 12 23 21 33 33 66 63.46% Doing business 0 0 0 0.00% Total 20 22 31 31 51 53 104

27 ⑴Gender—55 households with 215 persons were surveyed, all being agricultural population, including 106 females, accounting for 49.3%; and 109 males, accounting for 50.7%. 28 ⑴Age distribution—In the sample population, 46 persons are aged 0-16 years, accounting for 21.40%; 122 aged 16-60 years, accounting for 56.74%; and 47 aged above 60 years, accounting for 21.865%. 29 ⑴Educational level—In the sample population, 18 persons are illiterate, accounting for 8.37%; 31 have received primary school education, accounting for 14.42%; 135 have received junior school education, accounting for 62.79%; and 31 have received senior high school or above education, accounting for 14.42%. Those being illiterate or having received primary school education are mostly aged above 60 years, and there is little gender difference in education. 30 ⑴Labor composition—In the sample population, there are 25 children, accounting for 11.63%; 38 students, accounting for 17.67%; 104 laborers, accounting for 48.73%; 47 old people, accounting for 21.86%, and one sick person, accounting for 0.47%. 31 ⑴Occupation—Among the 104 laborers, 38 do farm work mainly, accounting for 36.54%; 66 are employed mainly (in which 10 do casual jobs in the slack season, 30 work locally around the year and 26 work outside around the year), accounting for 63.46%. 3.4.2 Possession of Cultivated Land 32 In Yanhe and Shuanghe Xiangs, Group 1 of Xiaoshuiba Village has the largest per capita cultivated area of 1.85 mu, and Group 6 of Yinghong Village has the smallest per capita cultivated area of 1.53 mu. `See Table 12.

Table 12 Per Capita Cultivated Areas of the Affected Village Groups Per capita Project Xiang Village Group Remarks cultivated area (mu) 4 1.77 Yanhe Yinghong The 6 1.53 Subproject 1 1.59 Shuanghe Xiaoshuiba 4 1.85 Source: socioeconomic survey in 2011

3.4.3 Financial Analysis 3.4.3.1 Household income 33 Among the sample households, two have per capita annual net income of 5,000-8,000 yuan; 46 have per capita annual net income of 3,001-5,000 yuan, 7 have per capita annual net income

11 of 3,000 yuan or less (vulnerable groups mainly, including one household suffering from chronic sickness and 6 poor households). See Table 13.

Table 13 Distribution of Household Income Per capita annual 1500 Over 1501-3000 3001-5000 5000-8000 Total net income (yuan) or less 8000 HHs 1 6 46 2 0 55 Percent (%) 1.00% 10.91% 83.64% 3.64% 0.00% 100.00% Source: socioeconomic survey in 2011

3.4.3.2 Women’s income 34 Women’s income is an integral part of household income. Among the 55 sample households, women’s income accounts for over 50% of household income in 4 households, for over 40-50% of household income in 8 households, for 30-40% of household income in 33 households, and less than 30% of household income in 10 households. See Table 14. 35 Women’s income contribution to household income is relatively lower than that of men, which is closely associated with women’s types and times of work. Among the APs, women working outside do non-physical and unskilled jobs mainly, such as waiter, babysitter, cleaner, shoemaker, etc., and their wages are relatively low. Some women have to take care of children and old people, and cannot work outside for prolonged periods.

Table 14 Proportions of Women’s Income to Household Income Proportion of women’s <30% 30%-40% 40%-50% >50% Remarks income (%) HHs 10 33 8 4 Percent (%) 18.18% 60.00% 7.27% 7.27%

3.4.3.3 Income and expenditure 36 In the subproject area, household income consists mainly of nonagricultural income, including employment, sideline, business and social security income, etc.

Table 15 Household Income and Expenditure Item Average per household (yuan) Percent Agricultural income 2500 8% Annual Stockbreeding income 11000 37% household Nonagricultural income 16500 55% income 1. Employment income 15000 50% 2. Other income 1500 5% Gross income 30000 100% Agricultural expenditure 1500 8% Stockbreeding expenditure 5000 27% Nonproductive expenditure 12200 65% Annual 1. Food expenses 7200 39% household 2. Traffic expenses 1500 8% expenditure 3. Educational expenses 800 4% 4. Medical expenses 700 4% 5. Other expenses 2000 11% Gross expenditure 18700 100% Source: socioeconomic survey in 2011

3.4.4 Main Economic Activities 37 In the subproject area, household income consists of agricultural and nonagricultural income. In agricultural income, crop cultivation income accounts for 8% of household income, and stockbreeding income for 37%. ‹ Crop cultivation: The main crops are corn, potato and vegetables, mostly used for self-consumption, with the remainder used as animal feeds. ‹ Stockbreeding: including pigs, cattle, sheep, poultry and fish, used to make preserved meat mainly ‹ Nonagricultural income: Due to poor traffic conditions, crop cultivation income is low in the subproject area, and outside employment is prevalent. Income from outside employment accounts for about 55% of household income. Those working outside mostly deal with unskilled service and construction jobs in Shanghai Municipality, Guangdong Province and Chongqing Municipality mainly. Many laborers do casual jobs locally, including bricklayer, carpenter and porter, usually working for about 20 days a month and paid 150 yuan per day on average.

4. Public Participation and Grievance Redress Mechanism 4.1 Public Participation Plan 38 According to the policies and regulations of ADB, the PRC and Chongqing Municipality on land acquisition and 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 and compensation, preparing an effective RP, and organizing implementation properly. 39 In the Subproject, public participation is implemented in three stages. 40 Stage 1: At the feasibility study and RP preparation stage, all stakeholders were consulted about their understanding of resettlement in order to provide a basis for subsequent design and implementation. The APs were briefed on the Subproject to learn their requirements and expectations, discuss possible impacts of the Subproject, and solicit suggestions on the optimization of the project design, compensation policies and rates, and possible resettlement measures. The work of this stage had been completed before the completion of this RP. 41 Stage 2: Before the commencement of resettlement, a meeting involving all APs was held to solicit its opinions on compensation and resettlement, and the RIB was distributed to the AHs to introduce the basic information, impacts, compensation policies, resettlement programs and appeal channels of the Subproject. 42 Stage 3: During the construction and operation of the Subproject, surveys and interviews will be held regularly to learn how the affected enterprise is compensated and resettled. 4.1.1 Status of Public Participation Activities 43 These public participation activities were conducted in a variety of forms, including community meeting, FGD with the owner and door-to-door survey. ‹ Community meeting: Before the survey, the leader of the survey team communicated the background information of the Subproject to the residents present at the meeting, including the scope, necessity, possible impacts, and possible compensation and resettlement measures of the Subproject. The attendees included representatives of villagers and women, subproject owner, township government and village officials.

‹ FGD with the owner: to learn the background, size and impacts of the Subproject ‹ Door-to-door questionnaire survey: to learn the socioeconomic profile of the subproject area, and the APs’ comments and opinions, which was not covered by the socioeconomic survey The survey team conducted a door-to-door questionnaire survey on 55 AHs in November 2011, accounting for 32.74% of all AHs. During the survey, the information, impacts and resettlement policies of the Subproject were explained, and the sample AHs consulted about ideas for compensation and resettlement, livelihood restoration, comments and suggestions as a basis for RP preparation. ‹ FGD with village officials: A FGD was held with the village head, village CPC branch secretary and accountant to learn the village’s overall socioeconomic profile, their expectations for the Subproject, comments and suggestions on the resettlement and compensation policies for LA, and share experience. ‹ Government interview: The survey team also visited the county development and reform commission, land and resources bureau, employment bureau, labor and social security bureau, statistics bureau, and resettlement bureau. It obtained data, information and policies related to the Subproject, and learned these departments’ comments and suggestions on the Subproject. 44 The status of public participation activities in the Subproject are as follows:

Table 16 Public Participation Activities

Venue Time Participants # Key topics APs, PMO, Introducing the background and purpose of the Subproject; Affected village 2011.11- feasibility study Discussing resettlement modes with minimum impacts 20 committees 2012.3 agency, RP preparation agency Affected village Socioeconomic survey 2012.4 APs 30 committees FGD with APs Discussing compensation mode for LA and land reallocation program Affected village Calculation of replacement cost 2012.4-5 APs 220 committees Giving advice on LA, relocation and production restoration, where land compensation should be used for village infrastructure improvement Location of the resettlement site; PMO 2012.6 APs 15 Training needs; Income restoration modes Discussing and drafting the RP; Affected village APs, PMO, Discussing the grievance redress mechanism; 2012.10 25 committees CCLRB Discussing the future consultation plan Discussing the future information disclosure plan Key points of the RIB: brief introduction, range of LA, Affected village CCLRB, village 2013.03 100 resettlement policies, compensation rates, IA, grievance committees officials, all AHs redress mechanism, M&E schedule, etc. Affected village CCLRB, village Disclosing the RP 2013.03 100 committees officials, all AHs Publishing the LA announcement Key points of announcement: brief introduction, range of Affected village CCLRB, village 2013.10 100 LA, resettlement policies and compensation rates, LA committees officials, all AHs schedule, rights and obligations of APs, grievance redress mechanism, M&E plan, etc. Before land use, the IA will conduct a DMS to determine the CCLRB, owner, all affected physical quantities, including acquired land area, Affected villages 2014.2 200 APs and affected ground attachments and infrastructure as a basis for compensation, and disclose the DMS results. The

procedure is as follows: Hold a meeting to introduce brief information, compensation and resettlement policies and programs, and purpose and method of the DMS; conduct the DMS with the confirmation of proprietors; disclose the DMS results for supplement or correction, and then disclose the final compensation and resettlement programs. Affected villages 2014.3-12 APs 200 Collecting opinions and solving issues conduct the DMS with the confirmation of proprietors; CCLRB, village Affected villages 2016 1 200 disclose the DMS results for supplement or correction officials, all AHs Disclosing the updated RIB Total 1210

45 Through extensive public participation activities, the AHs’ opinions and requirements have been learned, and the PMO and the agencies concerned have developed solutions accordingly, which have been incorporated into this RP. See Table 17.

Table 17 Requirements from Public Participation and Solutions No. Main requirement Solution Agricultural Land compensation and resettlement subsidy will be fully paid to the resettlement without collective economic organization to develop the economic economy, and 1 conversion into make production and living arrangements for members. Those losing land will urban status be reallocated land by the village collective. Housing land for Housing land will be offered by each village, because the households affected 2 self-construction by LA in each village are few and scattered. Agricultural and The labor and social security bureau, and the women’s federation will offer 3 nonagricultural skills cultivation, stockbreeding and nonagricultural training to the APs. training 4 Land reallocation Reserved collective land will be reallocated to the AHs based on land losses.

4.1.2 Subsequent Public Participation Plan 46 With the progress of preparation and implementation of the Subproject, the IA will conduct further public participation and consultation activities. See Table 18.

Table 18 Subsequent Public Participation Plan Time Location Purpose Participants Key points Owner, CCLRB, The RP will be made available to the APs at the village Affected Disclosing the 2015/11 village officials, committees. The PMO will publish this RP and disclose its villages updated RP all APs access point on a local newspaper. Disclosing the Labor and The labor and social security bureau will hold a meeting Affected new income social security with the village committee to discuss training needs, and 2015/12 villages restoration bureau, owner, disclose employment information timely by means of program all APs broadcast, newspaper, etc.

47 The public participation plan has been implemented well, playing an effective role in promoting the implementation of the Subproject.

4.2 Grievance Redress Mechanism 48 In order that grievances about LA, compensation and resettlement from the APs are handled publicly and quickly, the owner has established an appeal procedure as follows: Stage 1: If an AP has any objection to this RP, it may file an appeal with the township government, which shall make a disposition within one week. In case of an oral appeal, the township government shall keep written records.

Stage 2: If the AP is dissatisfied with the disposition of Stage 1, it may file an appeal with CCLRB after receiving such disposition, which shall make a disposition within one week. Stage 3: If the AP is dissatisfied with the disposition of Stage 2, it may file an appeal with the Chengkou PMO after receiving such disposition, which shall make a disposition within one week. 49 Stage 4: If the AP is still dissatisfied with the disposition of Stage 3, it may file an appeal with competent administrative authorities, such as the district legal, disciplinary inspection, and letters and visits departments. An AP may file an appeal with these departments directly without going through the first 3 stages. 50 The APs may file an appeal about any aspect of resettlement, including compensation rates. The above appeal channels will be communicated to the APs at a meeting or otherwise, so that the APs know their right of appeal. In addition, publicity on appeal will be strengthened through mass media, and comments and suggestions on resettlement will be compiled into messages to be studied and handled by the resettlement agencies timely. All agencies will accept grievances and appeals from the APs for free, and costs so reasonably incurred will be disbursed from the contingencies. See Figure 2 for the grievance redress mechanism, and Table 19 for the contact information of different appeal channels.

County judicial authority Chengkou PMO

County disciplinary External M&E agency inspection authority CCLRB

County authority for letters and calls Township government

Affected households / village committees

Figure 2 Grievance Redress Mechanism

Table 19 Contact Information of Appeal Handling Agencies at Different Stages Appeal handling agency Person responsible Title Tel Yanhe Xiang Government Yang Denxian Xiang head 59501500 Stage 1 Shuanghe Xiang Government Yuan Hongfu Xiang head 59295500 Stage 2 CCLRB Zhang Yiqin Deputy Director 59222935 Stage 3 Chengkou PMO Guo Xiaolian Deputy Director 59223581 County judicial authority Chen Yangchao Director 59226099 County disciplinary inspection authority Zhang Guoyi Director 59223334 County authority for letters and calls Xiao Tiyong Director 59221221

51 Any victim may also file an appeal with the external M&E agency, which will report such appeal to CCLRB and the PMO. In addition, the victim may file an appeal directly with the ADB project team. If all efforts fail and such appeal arises from a violation of ADB’s social safeguard policies, the victim may resort directly to ADB in accordance with ADB’s accountability mechanism (2012).1

1 http://www.adb.org/site/accountability-mechanism/main

5. Legal Framework and Resettlement Policies 5.1 Principles for Resettlement 52 The primary objective of this RP is to ensure that the income of the APs is restored, their living standard improved, and social and environmental impacts are reduced. The principles for resettlement are summed up below in order that full compensation is paid to the APs so that their production level and living standard are restored or improved. ‹ The compensation and entitlements received by the APs should ensure that their living standard is equal to or even better than the "without project" scenario; ‹ Measures should be taken to minimize negative impacts of LA; ‹ The APs are consulted meaningfully about compensation and resettlement for LA so that they have an opportunity to participate fully in resettlement planning and implementation; ‹ All affected properties will be compensated for at replacement cost; ‹ The APs will receive full compensation, and the affected land and properties will be fully compensated for before land acquisition or occupation for construction; ‹ Attention should be paid to vulnerable groups and special measures developed to ensure that their living standard is not reduced by LA.

5.2 Resettlement Policies of the Subproject 53 The resettlement policies of the Subproject have been developed in consultation with the county land and resources bureau, labor and social security bureau, and representatives of the APs on the following basis: ‹ Land Administration Law of the PRC (amended on August 28, 2004), and related laws and regulations; ‹ Regulations on Land Administration of Chongqing Municipality (Decree No.53 of the Chongqing Municipal Government), January 1999; ‹ Measures of Chongqing Municipality for Compensation and Resettlement for Land Acquisition (Decree No.55 of the Chongqing Municipal Government), January 1999; ‹ Notice of the Chongqing Municipal Government on Adjusting Matters concerning Compensation and Resettlement Policies for Land Acquisition (CMG [2008] No.45); ‹ Notice of the Chongqing Municipal Government on Further Adjusting Compensation Rates for Land Acquisition (CMG [2013] No.58) ‹ Notice of the Chengkou County Government on Adjusting Compensation Rates for Land Acquisition (CCG [2013] No.53) ‹ ADB’s Safeguard Policy Statement (2009) Safeguards Requirements 2 on Involuntary Resettlement

5.3 ADB’s Policy on Involuntary Resettlement 54 According to ADB’s Safeguard Policy Statement (June 2009), the principles for involuntary resettlement are as follows: ‹ Involuntary resettlement should be avoided where feasible. ‹ The APs are granted compensation and rights that can at least maintain or even improve their livelihoods in the absence of the project. ‹ The APs are given compensation and assistance in resettlement whether legal title is available or not.

‹ 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. ‹ 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 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 have an opportunity to benefit from the project. At least two members of each AH receive skills training, including at least one woman. ‹ The resettlement expenses are sufficient to cover all affected aspects. ‹ The executing agency and an independent agency / third party should monitor the compensation, relocation and resettlement operations.

5.4 Policy Gaps 55 The Chongqing Municipal Government promulgated the Measures of Chongqing Municipality for Compensation and Resettlement for Land Acquisition (Decree No.55 of the Chongqing Municipal Government) in January 1999 pursuant to the Land Administration Law of the PRC, specifying a series of compensation and resettlement measures, including means of payment of land compensation, and organizational arrangements for LA and resettlement implementation and management. 56 However, Decree No.55 has been abolished since the promulgation of the Notice of the Chongqing Municipal Government on Adjusting Matters concerning Compensation and Resettlement Policies for Land Acquisition (CMG [2008] No.45), which lays more stress on the resettlement of APs after land loss by means of conversion into urban status, but does not make detailed provisions on compensation and resettlement for those converted into urban status. The rights obtained by APs depend on if they are converted into urban status or not. According to this policy: (1) Land compensation is based on acquired land area, regardless of land type; and (2) Resettlement subsidy is based on agricultural population converted into urban status, which is calculated by dividing half of the sum of acquired cultivated area and half of acquired non-cultivated area by the per capita cultivated area of the affected collective economic organization. 57 Since both policies are incomplete, where the compensation rates of Decree No.55 no longer apply, and Document No.45 does not make detailed provisions on compensation for those converted into urban status, adequate consultation has been conducted with the affected villages and CCLRB. Through consultation, it has been decided that the APs will not be converted into urban status, and all APs will receive the same rights after LA. See Appendix 4.

5.5 Compensation Rates 5.5.1 Compensation Rates for Permanent LA 58 According to the applicable policy, LA compensation under the Subproject includes land compensation, resettlement subsidy and young crop compensation. Land compensation is based on acquired land area and local compensation rate, regardless of land type. Resettlement subsidy

18 is based on the agricultural population subject to production resettlement; though the Subproject does not involve conversion into urban status, the population to be converted into urban status and the total amount of resettlement subsidy will still be calculated based on this policy. Land compensation and resettlement subsidy will be paid by the land user to each affected village collective, while young crop compensation will be paid by the land user directly to the APs, all pursuant to the compensation rates specified in the Notice of the Chongqing Municipal Government on Further Adjusting Compensation Rates for Land Acquisition (CMG [2013] No.58), the Notice of the Chengkou County Government on Adjusting Compensation Rates for Land Acquisition (CCG [2013] No.53), and other applicable policies. See Table 20.

Table 20 Compensation Rates for Permanent LA Land Resettlement Young crop compensation (yuan/mu) compensation subsidy (yuan Vegetables (including Food crops (yuan/mu) per capita) commercial crops) 13000 35000 2400 1400

59 The AAOV of the subproject area in the past 3 years was 1800 yuan/mu. Land compensation is 7.22 times the AAOV (13,000 yuan), and resettlement subsidy is 19.44 times the AAOV (35,000 yuan, based on a per capita cultivated area of 1 mu), totaling 26.66 times the AAOV. 5.5.2 Compensation Rates for Temporary Land Occupation 60 Young crops on cultivated land affected by temporary land occupation will be compensated for at the uniform rate of 2,400 yuan/mu per annum for vegetables (including commercial crops) or 1,400 yuan/mu per annum for food crops specified in Document CCG [2013] No.53. The period of temporary land occupation will not exceed two years. After the completion of construction, the temporarily occupied land will be restored to the original function by the owner. 5.5.3 Compensation Rates for HD 61 The compensation rates for the rural houses demolished for the Subproject are based on Document CCG [2013] No.53 and by reference to local house construction costs. All AHs have chosen the resettlement mode of self-construction on allocated housing land. See Table 21.

Table 21 HD Compensation Rates House compensation (yuan/m2) Other compensation (yuan) Resettlement Reinforced Masonry Masonry Earth Transition Moving mode Moving subsidy concrete concrete timber timber subsidy reward 200 yuan 800 yuan for households 1,500 per capita with 3 or less members, or yuan , paid Self- 650 600 400 300 per 1,500 yuan for households at a time construction month* with 4 or more members, 6mnth paid at a time

5.5.4 Compensation Rates for Ground Attachments 62 The compensation rates for ground attachments are based on replacement cost, as specified in Document CCG [2013] No.53. See Table 22. The affected tombs will be compensated for based on the Notice of the General Office of the Chengkou County Government on Integrated Tomb Management in the Planning Area of the County Town (CCGO [2012] No.364).

Table 22 Compensation Rates for Ground Attachments

No. Type Unit Rate Remarks 1 Enclosing walls m3 88 Ashlar Earth m2 10 2 Fences Slab m2 20 3 Septic tanks m3 50 Ashlar 4 Tombs / 8500 5 Telegraph poles / 150 6 Wires m 5 7 Water canals m3 88 Masonry 8 Wells / 800 Pumped Dia. 2-4cm / 25 9 Fruit trees Dia. 4-7cm / 33 Dia. 7-10cm / 55 Dia. 3-5cm / 8 Dia. 5-10cm / 10 10 Other trees Dia. 10-15cm / 20 Dia. 15-20cm / 33 Dia. >25cm / 55

5.6 Eligibility for Compensation and Entitlement Matrix 63 The cut-off date for identification of entitlement to compensation is the date on which the announcement of land occupation is released. After this date, the APs should not build, rebuild or expand their properties, should not change the uses of its land and should not lease its land, and any person that moves in after this date will not be entitled to compensation.

Table 5-4 Entitlement Matrix Number of Type of Entitled entity or Detailed rules of Impact persons Implementation measure impact person compensation entitled Permanent 359.18 mu, including 1) Land-owning 43 households 1) Land compensation: 13,000 1) Land compensation and resettlement subsidy will be paid to LA 74.79 mu of collective economic with 152 persons yuan/mu the affected rural collective economic organizations; 2) Young cultivated land and organizations; in 4 groups of 2) Resettlement subsidy: 35,000 crop compensation will be paid directly to the AHs; 3) The APs 284.39 mu of 2) Land-contracting two villages in yuan per rural resident subject will receive free skills training; 4) The affected village non-cultivated land households two townships to production resettlement collectives will use compensation develop the economic 3) Young crop compensation: economy, and make production and living arrangements for 2,400 yuan/mu for vegetables members; 5) Jobs generated at the construction and operation and 1,400 yuan/mu for food stages will be first made available to the APs; and 6) Land of crops the same quality and quantity will be offered.(7) During the 1 year period of improving the land quality, the AHs will receive additional cash compensation of 1,500 yuan/mu. Temporary 68 mu, including 11 1) Land-owning 28 households 2,400 yuan/mu/year for Field measurement will be conducted, and young crop land mu of cultivated land collective economic with 114 persons vegetables and 1,400 compensation will be paid by the land user to the affected occupation organizations; in two villages in yuan/mu/peryear for food crops, collectives or individuals directly. 2) Land-contracting two townships for two years households HD 400 m 2 in total, incl. Proprietors Two households Reinforced concrete: 650 1) HD and attachment compensation is based on structure and 100 m 2 in reinforced with 7 persons in yuan/m 2, masonry concrete: 600 size; 2) Other compensation and subsidies will be granted, concrete structure, one village in yuan/m 2, masonry timber: 400 including moving subsidy and moving reward; 3) The above 100 m 2 in masonry one township yuan/m2, earth timber: 300 m² compensation and subsidies will be paid directly to the AHs; concrete structure, and 4) Housing land for new house construction will be 100 m 2 in masonry allocated at 30 m 2 per capita, and not less than 90 m 2 but not timber structure and more than 120 m 2 per household. 100 m 2 in earth timber structure Ground Enclosing walls, Proprietors Proprietors Compensation (see Table 22) Former structures compensated for will be disposed of by the attachments wells, etc. will be paid to proprietors LA. directly. Vulnerable HD area 100 m2 9 households 1) Necessary assistance will be offered during resettlement; groups with 28 persons 2) They will have priority in housing land allocation; 3) They will have priority in receiving job opportunities.

6. Resettlement and Income Restoration Plan 6.1 Objectives and Principles of Compensation and Resettlement 64 According to the present evaluation of project impacts, and existing survey results of the APs, the resettlement objectives of the Subproject are: ‹ The living standard of the APs is equal to or even better than the "without project" scenario; ‹ The production conditions and livelihoods of the AHs are improved; ‹ The public infrastructure, social welfare level and natural environment will be equivalent to or better than those before resettlement.

6.2 Income Restoration Plan and assistance measures 6.2.1 Land Replacement 65 In the Subproject, 43 households will lose land, with per capita land loss of 0.1 mu. Consultation shows that most farmers doing farm work are old people and women. Reserved collective land that is not worse than former land in location and condition will be allocated to them, so that their production level and living standard will not be reduced. 66 In the two affected villages, there is not sufficient high-grade land to be allocated to all the AHs, so the village committees will use compensation to improve low-grade land at a cost of 2,300 yuan/mu, which will be used for irrigation facility construction, land consolidation, etc. with the assistance of the agriculture bureau. It will take one year to improve land quality to a level not less than that of the acquired land. During this period, the AHs will receive additional cash compensation of 1,500 yuan/mu.

Table 24 Basic Information on Land Reservation and Improvement (mu) Area of reserved land Area of low-grade reserved Village LA area of equal quality land to be improved Yinghong 67.49 21.2 46.29 Xiaoshuiba 7.3 3.1 4.2

Acquired Acquired Per capita Population to be cultivated non-cultivated cultivated converted into urban Project Xiang Village Group land (mu) land (mu) area (mu) status (1) ⑵ ⑶ (4)=[(1)+(2)*0.5]/(3) 2 32 109.2 0.76 114 Yanhe Yinghong The 4 35.49 128.54 0.77 130 Subproject 1 5 17.15 0.11 123 Shuanghe Xiaoshuiba 4 2.3 29.5 0.13 132 Total 74.79 284.39 499

6.2.2 Utilization of Land Compensation 67 Land compensation and resettlement subsidy will be paid to the affected village collectives, and used through consultation at a meeting. It is learned that in some villages, compensation will be used to improve infrastructure, such as village roads, small irrigation facilities and schoolhouses; in some villages, compensation will be used to develop agriculture and stockbreeding to promote the employment of villagers and increase their income. 68 Chengkou County is a well-known preserved meat producing area, where stockbreeding income accounts for 37% of household income. Compensation will be used to buy piglets, and

1 offer skills training, epidemic prevention service and marketing assistance. The existing pig breeding cooperatives will provide assistance in this respect, such as feed purchase. 6.2.3 Skill Training for the APs 69 The questionnaire survey shows that among the 104 respondents of labor age, more than half have expressed the wish to attend labor skills training, and most of them are males aged below 45 years. In order to improve the APs’ production level and living standard, the government will offer special skills training to them to help them find more job opportunities except agricultural production. ‹ Agricultural training: offered for free by the county agriculture bureau together with agricultural schools to the APs and other farmers, including crop cultivation, stockbreeding, farm product processing, pest control, preserved meat production ‹ Nonagricultural training: organized by the county employment bureau together with vocational training schools, mainly including cooking, computer operation, etc., focused on jobs with great local demand

Table 25 Training Offered by the Local Government Type Scope of training Men-times trained Pig breeding © 150 (70) Agricultural Pest control © 100 (60) Cooking © 60(20) Nonagricultural Security guard © 30 (5)

6.2.4 Employment Driven by the Subproject 70 Jobs generated at the construction and operation stages will be first made available to the APs to increase their income. It is estimated that about 200 casual laborers will be needed at the construction. Priority will be given to female laborers, especially less physically demanding jobs at the operation stage, such as landscaping.

6.3 House Demolition and Resettlement Plan For Rural Residences

71 The two households affected in Group 1 of Xiaoshuiba Village in Shuanghe Xiang by HD for the Subproject have chosen the resettlement mode of self-construction. 72 The housing land allocated will have a better geographic location and better infrastructure. After housing land allocation, the demolished houses will be compensated for at a time. 73 In this resettlement mode, the village will offer housing land, and be responsible for land leveling, access road construction, and water, power and gas connection. The new houses of the two AHs are larger than their former houses, measuring about 200 m2 each, with separate kitchen, bathroom and stairway. 74 For example, a 4-member family with a former house of 150 m 2 in masonry concrete structure will receive house compensation of 150*600 = 90,000 yuan, and other compensation, including a transition subsidy of 96,000 yuan (based on CCG [2008] No.33, for 24 months, 200 yuan per capita per month), a moving subsidy of 1,500 yuan, a moving reward of 6,000 yuan, and compensation for attachments and decoration, totaling nearly 200,000 yuan. Building materials demolished from old houses can be used for new house construction. Both AHs think that this is a good opportunity to improve their living conditions.

6.4 Livelihood Restoration For Vulnerable Groups

75 Vulnerable groups will receive the following assistance: 1) They will have priority in being converted into urban status and applying for urban minimum living security; 2) They will have priority housing land allocation; and 3) They will have priority in receiving unskilled jobs at the construction and operation stages.

6.5 Restoration of Temporarily Occupied Land 76 The land occupied temporarily by the Subproject will be compensated for at 1,400 yuan/mu per annum for grain and 2400 yuan/mu per annum for vegetables. Before the commencement of construction, the subproject owner will agree on a compensation program and enter into a temporary land occupation agreement with each affected village committee. The agreement will be signed by representatives of the AHs, affixed with the seal of the village committee, and submitted to CCLRB for approval and reference. The owner will use the land only after temporary land occupation is approved. The period of temporary land occupation will not exceed two years. After the completion of construction, the temporarily occupied land will be restored to the original function by the owner.

6.6 Recovery Plan of Ground Attachments and Special Facilities 77 The ground attachments affected by the Subproject mainly include young crops, ground structures and special facilities. 78 For the affected tombs, a notice of relocation will be issued before relocation, and compensated for at 8500 yuan each. The village collectives will offer land for new tombs, and the compensation rate is sufficient for new tomb construction. Such tombs will be relocated on specially selected dates.

7. Updated Resettlement Costs and Management 7.1 Updated Resettlement Budget 79 The resettlement budget of the Subproject is 14.1839 million yuan, including: ⑴basic costs of 9.1082 million yuan, including compensation fees for permanent LA of 8.4651 million yuan, compensation fees for temporary land occupation of 36,000 yuan, HD compensation fees of 455,700 yuan, and compensation fees for ground attachments of 90,600 yuan; and ⑵related taxation of 3.9828 million yuan (including land acquisition fee, farmland reclaiming costs, farmland occupying taxation), (3) management and monitoring costs of 1.0929 million yuan. See Table 26.

Table 26 Resettlement Budget No. Item Rate Unit Qty. Total A Basic costs 9108156 I Permanent LA 8465076 1 Land compensation 13000 yuan/mu 359.18 4669340 3 Resettlement subsidy 35000 yuan per capita 104 3640000 4 Young crop compensation 2400 yuan/mu 64.89 155736 II Temporary land occupation 36000

yuan/mu per 1 Young crop compensation 2400 11 36000 annum III HD 455700 Reinforced concrete 650 yuan/m 2 100 65000 House Masonry concrete 600 yuan/m 2 100 60000 1 compensation Masonry timber 400 yuan/m 2 100 40000 Erath timber 300 yuan/m 2 100 30000 Transition 200 yuan per capita per yuan/month per 2 200 152 30400 subsidy month within 24 months capita 3 persons or less 800 yuan/HH 1 800 Moving subsidy 3 4 persons or more 1500 yuan/HH 1 1500 Moving reward Paid at a time 1500 yuan per capita 152 228000 IV Ground attachments 151380 1 Enclosing walls 88 m3 120 10560 Earth 10 m2 110 1100 2 Fences Slab 20 m2 130 2600 3 Septic tanks 50 m3 8 400 4 Tombs 8500 / 7 59500 5 Telegraph poles 150 / 5 750 6 Wires 5 M 800 4000 7 Water canals 88 m3 200 17600 8 Wells 800 / 2 1600 Dia. 2-4cm 25 / 100 2500 9 Fruit trees Dia. 4-7cm 33 / 120 3960 Dia. 7-10cm 55 / 110 6050 Dia. 3-5cm 8 / 900 7200 Dia. 5-10cm 10 / 500 5000 10 Other trees Dia. 10-15cm 20 / 350 7000 Dia. 15-20cm 33 / 400 13200 Dia. >25cm 55 / 152 8360 B Related Taxation 3982800 1 Farmland reclaiming costs 25 m² 49860.0 1246500 2 farmland occupying taxation 25 m² 49860.0 1246500 3 overall land acquisition costs 20000 mu 74.49 1489800 C Management and monitoring costs 1092978 1 Implementation management costs 6% of A 546489 2 Monitoring costs 6% of A 546489 D Total (A+B+C) 14183934

7.2 Funding Sources 80 According to the construction schedule of the Subproject, all resettlement funds will be county counterpart funds.

7.3 Management And Disbursement Of Resettlement Funds 7.3.1 Fund Flow 81 Compensation fees for LA will be paid directly to the AHs according to the policies and rates identified in this RP after review by the IA. The Subproject Leading Group will perform supervision and direction on the use of funds as necessary. See Figure 3 for the disbursement flowchart.

County finance bureau

Compensation for Basic endowment insurance premiums young crops and for urban enterprise attachments, and employees payable resettlement subsidies by APs Compensation for collective properties and land

County labor and social Affected village AHs and APs security bureau (endowment insurance premiums)

Figure 3 Fund Disbursement Flowchart

7.3.2 Disbursement Plan 82 Compensation fees will be disbursed by the PMO under the supervision of the internal monitoring agency and the inspection of the external M&E agency as follows: ‹ All costs related to resettlement will be included in the general budget of the Subproject, and paid by the subproject owner to the APs. ‹ LA: Compensation fees for LA will be paid by the land user to WCLRB. After WCLRB has enter into a compensation agreement for LA and ground attachments with the township government and the village committee, such fees will be paid to the village committee based on the compensation items, quantities, times and amounts specified in the agreement; compensation fees for ground attachments will be paid to their proprietors. ‹ HD: The land user will enter into agreements on compensation rates, resettlement modes, relocation deadline, etc. with the AHs, and pay compensation directly to the AHs. ‹ Other costs: The executing agency has the right to use other costs. When the contingencies are insufficient due to price rise, the competent authority should be reported immediately.

8. Institutional Arrangements

8.1 Executing Agency 83 In order to lead the preparation and construction work of the Subproject, the Subproject Leading Group has been established as the decision-making agency of the Subproject with leaders from the development and reform commission, land and resources bureau, and transport bureau under the coordination of the Chengkou County Government, responsible for reporting the progress of project implementation to ADB, coordinating the departments concerned, organizing bid invitation and procurement, preparing annual financial plans, project quality control, providing technical assistance to, and coordinating research and training activities.

8.2 Subproject Owner and IA 84 Under the leadership of the Subproject Leading Group, the Chengkou PMO is responsible for overall project management. The owner of the Subproject is CCTDC, which is responsible for the implementation of the Subproject, including preparation and coordination for the development of this RP, coordination with the CCLRB’s LA and resettlement work, and subsequent M&E. The affected township government and village committee will appoint persons to coordinate resettlement. See Figure 8-1 for its organizational relations.

Subproject Leading Group

CCTDC Internal External monitori M&E

ng CCLRB (IA) agency

Township government

APs affected APs affected APs by LA by HD by attachments of Proprietors

Figure 8-1 Organizational Chart for Resettlement

8.3 Organizational Responsibility ⑴Subproject Leading Group 85 Responsible mainly for organizing the resettlement of the Subproject, and coordinating relations among the resettlement agencies at all levels ‹ Coordinating the work of all government departments concerned at the preparation and implementation stages; and ‹ Making decisions on major issues in project construction and resettlement ⑵Chengkou PMO 86 Responsible mainly for handling day-to-day affairs in resettlement planning and implementation, and exercising the management, planning, implementation, coordination, supervision and monitoring functions of resettlement as the project management agency ‹ Coordination, management, supervision and service during project implementation ‹ Reporting the progress of project implementation to the Chongqing Municipal Government and ADB; ‹ Preparing annual financial plans; ‹ Organizing and coordinating the preparation of the RP; ‹ Project quality control; ‹ Providing technical assistance, and coordinating research and training activities;

‹ Taking charge of and inspecting internal monitoring, and preparing resettlement progress reports; ‹ Assisting in external monitoring activities ⑶Owner 87 The owner of the Subproject is CCTDC, which has a specially assigned person responsible for the supervision and management resettlement activities. Its main responsibilities are: ‹ Organizing bid invitation and procurement; ‹ Appointing a consulting agency to prepare the RP; ‹ Participating in and coordinating the resettlement survey; ‹ Assisting WDRB in its compensation and resettlement activities; ‹ Supervising and managing resettlement activities; ‹ Reporting resettlement progress to the Chengkou PMO regularly, and submitting internal monitoring reports ⑷LAR IA 88 The LAR IA of the Subproject is CCLRB. ‹ Participating in the preparation of the RP; ‹ Implementing resettlement activities according to the RP approved by ADB; ‹ Handling LA formalities; ‹ Communicating the resettlement policies and organizing public participation; ‹ Entering into LA agreements with the APs, and submitting to the owner and the PMO for reference; ‹ Implementing the resettlement program, and submitting to the owner and the PMO for reference; ‹ Disbursing compensation fees, and submitting copies of payment vouchers to the owner and the PMO for reference; ‹ Handling grievances and appeals arising from resettlement ⑸Village committees and groups 89 The resettlement task forces of the affected village committee and village groups are composed of their key officials. Their responsibilities are: ‹ Participating in the socioeconomic survey and the DMS; ‹ Organizing public consultation and communicating the LA policies; ‹ Selecting the resettlement site and allocating housing land to the AHs; ‹ Developing a land reallocation program and conducting land reallocation; ‹ Organizing agricultural and nonagricultural resettlement activities; ‹ Managing and disbursing funds; ‹ Reporting the APs’ comments and suggestions to the competent authorities; ‹ Report the progress of resettlement implementation; ‹ Providing assistance to households in difficulty ⑹Design agency 90 Its main responsibilities are: ‹ At the planning and design stage, it will survey the physical indicators of land acquisition and occupation, the environmental capacity, the usable resources, etc. accurately, and assist the county government in formulating resettlement programs, preparing budgetary investment estimates for compensation for land acquisition and occupation, and drawing the relevant drawings. ‹ At the implementation stage, it will submit the design documents, technical specifications,

drawings and notices to the owner timely, make design disclosure to the PMO, assist in the implementation of the relocation and resettlement for production of the APs, and improve the resettlement programs based on the practical situation. ⑺External M&E agency 91 The Chongqing PMO has appointed a qualified M&E agency （Halcrow(Chongqing) Engineering Consulting Co.LTd） as the external M&E agency. Its main responsibilities are: ‹ Observing all aspects of resettlement planning and implementation as an independent M&E agency, monitoring and evaluating the resettlement results and the social adaptability of the APs, and submitting resettlement M&E reports to the Chongqing PMO and ADB; and ‹ Providing technical advice to the Chongqing PMO in data collection and processing.

8.4 Staffing and Equipment 92 To ensure the successful implementation of the resettlement work, all resettlement agencies of the Subproject have been provided with full-time staff, and a smooth channel of communication has been established. Each resettlement agency is composed mainly of administrative staff and specialized technicians, all of whom have certain professional and management skills, and considerable experience in resettlement. See Table 27.

Table 27 Staffing of Resettlement Agencies No. Township Agency Duty Person responsible Title Tel Chengkou Development Subproject Leading 1 Guo Xiaolian Deputy Director 13896963898 and reform bureau Group 023-5922068 2 CCLRB LAR implementor Shi Yuhua Deputy Secretary 6 Xiang coordinator Wu Xuefei Deputy Secretary 13896953468 Township government Yanhe Xiang coordinator Yang Dengxian Xiang Head 13983443501 Yinghong Village Village coordinator Hu Daoping Village head 13594469062 3 Xiang coordinator Li Song Secretary 13609449821 Township government Shuanghe Xiang coordinator Li Zhibin Deputy Xiang Head 1359479932 Xiaoshuiba Village Village coordinator Gao Zhengzhou Village Secretary 13635306458 Halcrow(Chongqing ) Engineering External monitor Consulting Co.LTd

8.4.1 Equipment 93 The county and township resettlement agencies of the Subproject have been provided with basic office, traffic and communication equipment, including office tables and chairs, computers, printers, telephones, fax machines and means of transport. 8.4.2 Training 94 Purpose of training: to train the management staff and technicians related to resettlement in the Subproject, so that they understand and master information on resettlement, and ensure that the RP is fully implemented. 95 Trainees: There are two types of training: ‹ For resettlement management staff—The purpose is to train the management staff of the Subproject on resettlement and emergency measures, so that they learn experience in resettlement and management from advanced countries, and communicate it to all resettlement staff of the Subproject. ‹ Resettlement staff—The purpose is to make them understand the scope of construction,

resettlement policies and restoration measures of the Subproject, and ensure the successful implementation of the RP. ‹ Mode of training: Training is divided into two levels: The senior management staff training will be given by the Chongqing PMO, and Bank officials, government officials and experts will be invited to give lectures; the resettlement staff training will be given by the district resettlement office under the direction of the Chengkou PMO. ‹ Scope of training: Overview and background of the Subproject, applicable laws and regulations, details of the RP, management and reporting procedures, cost management, M&E, reporting, and grievance redress, etc.

9. Implementation Plan of Relocation and Resettlement 96 Resettlement activities are expected to begin in February 2016 and end in August. See Table 28.

Table 28 General Schedule for Resettlement Agency No. Task Subjects Deadline responsible Stage 1: Preparation and review of the RP Affected villages 1 Distribution of the RIB CCTDC; CCLRB 2013.03 and individuals Distribution of the final RP to the 2 CCTDC; CCLRB 4 affected villages 2013.03 PMO/affected villages Disclosure of the RP on ADB’s 3 ADB 2013.03 website Stage 2: DMS and RP updating 4 DMS based on the final design CCLRB 2016.01 Updating the RP based on the 5 CCTDC; CCLRB 2016.01 DMS Distributing the updated RIB CCTDC; CCLRB 2016.01 Stage 3: Execution of LA agreement, compensation and resettlement Execution of compensation Affected villages 6 CCLRB 2016.01-03 agreements for LA and individuals Disbursement of compensation Affected villages 7 CCLRB 2016.01-03 fees and individuals 8 Construction of new houses AHs AHs 2015.06-2016.06 9 Relocation 10 Demolition of old houses CCLRB AHs 2015.06 11 Handover of land to the owner CCLRB 2016.04 12 Offering of replacement land 2016.08 Stage 4: Capacity building Training of compensation and CCTDC;CCLRB; 13 Resettlement staff 2015.10 resettlement staff professionals 14 Establishing the appeal committee CCTDC 2015.12 Stage 5: M&E Completed at the 15 Baseline survey M&E agency RP preparation 2016.05 stage Establishment of the internal 16 CCTDC 2016.05 supervision system Execution of external monitoring Chongqing PMO; 17 2015.10 contract M&E agency 18 Internal monitoring CCTDC 2016.07 19 External monitoring M&E agency 2016.07

20 Final resettlement report CCLRB 2016.12

10. M&E and Reporting Arrangements 10.1 M&E 97 In order to ensure the successful implementation of the RP and resettle the APs properly, periodic M&E on resettlement activities will be conducted. Monitoring is divided into internal monitoring of resettlement agencies and independent external monitoring. M&E will begin in December 2015, and end half a year after the completion of resettlement, and the restoration of the APs’ production and livelihoods. Depending on the construction and resettlement progress of the Subproject, internal and external M&E reports will be submitted to ADB semiannually.

10.2 Internal Monitoring 98 The Chengkou PMO will run an internal monitoring mechanism to inspect resettlement activities, establish a basic resettlement database, and use it to prepare the RP, monitor the APs, and conduct internal supervision and inspection of the whole process of resettlement preparation and implementation. 10.2.1 Procedure 99 During implementation, the owner will collect and record resettlement information from the monitoring samples, and report real-time activity records to the PMO timely to maintain continuous monitoring. The PMO will inspect implementation regularly. 10.2.2 Scope 100 The scope of monitoring is as follows: ‹ Payment of compensation fees for LA and HD; ‹ Restoration of the APs, including additional employment; ‹ House reconstruction and housing land allocation; ‹ Staffing, training, work schedule and working efficiency of resettlement agencies; ‹ Registration and handling of grievances and appeals 10.2.3 Reporting 101 Supported with CCLRB(IA), Chengkou PMOwill prepare an internal monitoring report semiannually, and submit it to the to the Chongqing PMO and ADB at each year end.

10.3 External Independent Monitoring 10.3.1 Purpose and Tasks 102 External M&E means the regular M&E of LA and resettlement activities from out of the resettlement organization to see if the objectives of resettlement are met. Through external M&E, opinions and suggestions are proposed on the whole resettlement process, and the restoration of the production level and standard of living of the APs, an early warning system is established for the management agencies, and a feedback channel provided for the APs. 103 The external M&E agency will serve as the consultant to the management and implementing agency of the Subproject, conduct follow-up monitoring on the implementation of the RP, and give opinions for decision-making. 10.3.2 External M&E Agency 104 In the Subproject, Halcrow(Chongqing) Engineering Consulting Co.LTd will be appointed as the independent external resettlement M&E agency as required by ADB. The external M&E

10 agency will provide technical assistance to the implementing agency, and implement basic monitoring through resettlement survey and survey on the affected enterprise. 10.3.3 Procedure and Scope 105 The monitoring procedure and scope are as follows: 1. Preparing the terms of reference of M&E 2. Preparing a survey outline, a questionnaire and a record card 3. Design of the sampling survey plan and sample size: not less than 20% of the households affected by LA, and not less than 50% of the households affected by HD 4. Baseline survey A baseline survey required for the independent M&E of the APs will be conducted to acquire baseline data on the living standard (livelihood, production and income levels) of the monitored AHs. 5. Establishing an M&E information system An M&E information system will be established, where a database will be established for different types of M&E data, in order to provide computer aid for analysis and follow-up monitoring. 6. M&E survey ⑴Capacity evaluation of IA: to investigate the working capacity and efficiency of the IA ⑵Monitoring of compensation rates and disbursement: to see if the enterprise receives full compensation ⑶Public participation and consultation: to monitor public participation activities during the preparation and implementation of the RP, and the effectiveness of participation ⑷Appeals: to monitor the registration and disposition of appeals of the APs 7. Compiling monitoring data, and establishing a database 8. Comparative analysis 9. Preparing M&E reports according to the monitoring plan 10.3.4 Monitoring Indicators 106 Key M&E indicators: 1. Progress: preparation and implementation of LA, HD and resettlement 2. Quality: effectiveness of resettlement measures and satisfaction of the APs 3. Investment: disbursement and use of funds 107 M&E will be conducted on the basis of the survey data provided by the design agency and the IA. After a full understanding is obtained, M&E will be conducted in the form of key informant interview and rapid rural appraisal. Usually, the external M&E agency will perform the following tasks: 1. Public consultation 108 The external M&E agency will attend public consultation meetings. In this way, it will be able to evaluate the effectiveness of public participation and the willingness of the APs to cooperate in the RP. These activities will be conducted during and after resettlement. 2. Collecting opinions from the APs 109 The external M&E agency will meet the IA and APs from time to time to learn opinions collected by them from the APs. The external M&E agency will report such opinions to the IA so as to make resettlement more effective and smooth. 3. Other duties 110 The external M&E agency will give advice on the improvement and implementation of the RP to the resettlement agencies.

10.3.5 Reporting 111 The external M&E agency will prepare external monitoring reports based on its observations and survey findings, and report independently to the Chongqing PMO, which will submit reports to ADB. 1. Interval 112 M&E will begin in July 2016 and end half a year after the completion of resettlement and the restoration of production and livelihoods of the APs. As required by ADB, external monitoring will be conducted twice a year, namely in mid year and at year end; after the completion of resettlement, external monitoring will be conducted at each year end.

Table 29 Resettlement M&E Schedule Resettlement M&E report Date 1 Socioeconomic Baseline Survey Report 2016.07 2 M&E Report (No.1) 2016.07 3 M&E Report (No.2) 2017.01 4 M&E Report (No.3) 2017.07 5 Resettlement Completion Report 2017.12

2. Scope (1) Resettlement baseline survey; (2) Progress of LA, HD and resettlement; (3) Resettlement for LA and production restoration; (4) Resettlement for HD; (5) Restoration of special facilities; (6) Standard of living of the APs; (7) Availability and utilization of resettlement funds; (8) Evaluation of the efficiency of the IA; (9) Support for vulnerable groups; (10) Functions of the IA; (11) Existing issues and suggestions

Appendix 1: Applicable Laws and Regulations

Document of the Chengkou County Government

CCG [2013] No.53

Notice of the Chengkou County Government on Adjusting Compensation Rates for Land Acquisition

Township governments, departments of the county government, agencies concerned: The LA compensation rates of our county have been adjusted pursuant to the applicable state laws and regulations, and the Notice of the Chongqing Municipal Government on Further Adjusting Compensation Rates for Land Acquisition (CMG [2013] No.58) in order to conduct LA compensation and resettlement properly, and are hereby notified as follows: I. Adjusted LA compensation rates (I) land compensation All rural collective land in our county has been divided into three tiers in consideration of land location, and economic and social development level: Tier-1 areas: 15,000 yuan/mu Tier-2 areas: 14,000 yuan/mu Tier-3 areas: 13,000 yuan/mu (See Annex 1) (II) Resettlement subsidy 35,000 yuan per rural resident subject to be converted into urban status (III) Compensation for rural houses, young crops and ground attachments 1. Compensation for rural houses 1) House compensation: as per Annex 2, and the Notice of the General Office of the Chengkou County Government on Issuing the Supplementary Regulations on Demolished Houses on Acquired Collective Land within the Planning Area of the County Town (CCGO [2012] No.88) 2) Moving subsidy and reward: ①Moving subsidy: 800 yuan for households with 3 or less members, or 1,500 yuan for households with 4 or more members, paid at a time; transition subsidy: 200 yuan per capita per month ②Moving reward: 1,500 yuan per capita, paid at a time 2. Young crop compensation Based on actual cultivation area upon LA (see Annex 3) 3. Compensation for ground attachments Ground attachments shall be compensated for at the following integrated fixed rates: Tier-1 areas: 15, yuan/mu Tier-2 areas: 14,000 yuan/mu Tier-3 areas: 13,000 yuan/mu Tomb relocation: as per the Notice of the General Office of the Chengkou County Government on Integrated Tomb Management in the Planning Area of the County Town (CCGO [2012] No.364) II. This notice shall come into effect from January 1, 2013, and if there is any inconsistency between the former document and this notice, this notice shall prevail. LA compensation and resettlement that had been implemented according to law before January 1, 2013 shall be based on the former document. III. Issues arising from the implementation of this notice shall be interpreted by CCLRB.

Annexes: 1. Classification of Areas for LA Compensation in Chengkou County 2. Compensation Rates for Demolished Houses on Acquired Collective Land in Chengkou County 3. Compensation Rates for Young Crops on Acquired Collective Land in Chengkou County

Chengkou County Government

December 31, 2013

Annex 1

Classification of Areas for LA Compensation in Chengkou County Item Range Rate (yuan/mu) Gecheng and Fuxing Sub-districts within the Tier-1 areas 15000 planning area of the county town Gecheng and Fuxing Sub-districts out of the Tier-2 areas planning area of the county town; and within town 14000 planning areas of other townships Tier-3 areas Out of town planning areas of other townships 13000

Annex 2

Compensation Rates for Demolished Houses on Acquired Collective Land in Chengkou County Unit: yuan/m2 Compensation Salvage value (lawful Structure Description rate size) Reinforced Full frame, cast-in-place floor 600-650 25 concrete slabs Brick wall, prefabricated roof 540-600 20 Masonry concrete Brick wall, tile roof 500-540 20 Brick wall, (board) tile roof 420-480 15 Masonry timber Brick wall, (stone) tile roof 390-420 15 Brick wall, asbestos tile roof 330-390 15 Earth wall, tile roof 330-360 10 Earth timber Asbestos tile roof 300-330 10 Earth wall, felt roof 100-120 10 Simple Simple shed 100 5 Elevated shed 75 5 Notes: 1) The above compensation rates are reduced by 30% if floor height is less than 2.4m but exceeds 1.5m; 2) The above compensation rates are reduced by 50% if floor height is less than 1.5m but exceeds 1m; 3) The above compensation rates are reduced by 80% if floor height is less than 1m; 4) Exterior balconies are compensated for at 50%; 5) House sizes are measured from outer walls.

Annex 3

Compensation Rates for Young Crops on Acquired Collective Land in Chengkou County Unit: yuan/mu Type Rate Vegetables (including Class 1 Class 2 commercial crops) 2600 2400 Food crops 1400

Issued by the General Office of the Chengkou County Government on December 31, 2013

Appendix 2: Resettlement Information Booklet (RIB) (Updated) A. Background of the Subproject The Subproject is a subproject of the ADB-financed Chongqing Urban and Rural Infrastructure Development II Project, starting from Yinghong Village, Yanhe Xiang (formerly Zhongxi Xiang) and ending in Shuiba Village, Shuanghe Xiang, designed as a Class-4 4-lane highway with asphalt gravel pavement, 3 bridges totaling 91m, 19 culverts and a tunnel of 1,760 m, with a roadbed width of 6.5m, a driveway width of 2×3.0 m, a design driving speed of 20km/h and a full length of 7,395km. The gross investment in the Subproject is 99,356,464 yuan. B. Impacts 359.18 mu of rural collective land will be acquired permanently for the Subproject, including 74.79 mu of cultivated land, 2.0 mu of house, 232.99 mu of woodland and 49.4 mu of wasteland, affecting 43 households with 152 persons in 4 groups of two villages in two townships in Chengkou County. 68 mu of land will be occupied temporarily, including 11 mu of cultivated land, affecting 28 households with 114 persons in two villages in two townships. Rural houses of 400 m2 will be demolished, including 100 m2 in reinforced concrete structure, 100 m 2 in masonry concrete structure, 100 m 2 in masonry timber structure and 100 m 2 in earth timber structure, affecting two households with 7 persons in one village in one township. C. Resettlement policies The resettlement policies of the Subproject have been developed in accordance with the Land Administration Law of the PRC (2004), the Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28), the Notice of the Chongqing Municipal Government on Adjusting Matters concerning Compensation and Resettlement Policies for Land Acquisition (CMG [2008] No.45), the Interim Measures for Compensation and Resettlement for Land Acquisition of Chengkou County (CCG [2008] No.33), the Notice of the Chongqing Municipal Government on Further Adjusting Compensation Rates for Land Acquisition (CMG [2013] No.58), and the Notice of the Chengkou County Government on Adjusting Compensation Rates for Land Acquisition (CCG [2013] No.53). D. Rights and obligations of APs All affected land, crops and income resources should be compensated or restored based on type and quantity, whether affected permanently or temporarily, owned or not. The cut-off date for identification of entitlement to compensation is the date on which the announcement of land occupation is released. After this date, the APs should not build, rebuild or expand their properties, should not change the uses of its land and should not lease its land, and any person that moves in after this date will not be entitled to compensation. The APs will receive compensation at replacement cost without regard to depreciation, and the salvage value of the demolished houses will belong to the APs. For vulnerable groups, compensation for their lost land and properties should be paid fully and timely. At the income restoration stage, the local government and village committees should pay particular attention to them, such as offering development opportunities to those able to work, and including those unable to work in the local social security system. Entitlement Matrix Number of Detailed rules Type of Entitled entity Impact persons of Implementation measure impact or person entitled compensation

Permanent 359.18 mu, 1) Land-owning 43 1) Land 1) Land compensation and LA including collective households compensation: resettlement subsidy will be paid to 74.79 mu of economic with 152 13,000 yuan/mu the affected rural collective cultivated organizations; persons in 2) Resettlement economic organizations; 2) Young land and 2) 4 groups of subsidy: 35,000 crop compensation will be paid 284.39 mu of Land-contracting two yuan per rural directly to the AHs; 3) The APs will non-cultivated households villages in resident subject receive free skills training; 4) The land two to production affected village collectives will use townships resettlement compensation develop the 3) Young crop economic economy, and make compensation: production and living arrangements 2,400 yuan/mu for members; 5) Jobs generated at for vegetables the construction and operation and 1,400 stages will be first made available to yuan/mu for food the APs; and 6) Land of the same crops quality and quantity will be offered.(7) During the 1 year period of improving the land quality, the AHs will receive additional cash compensation of 1,500 yuan/mu. Temporary 68 mu, 1) Land-owning 28 2,400 Field measurement will be land including 11 collective households yuan/mu/year for conducted, and young crop occupation mu of economic with 114 vegetables and compensation will be paid by the cultivated organizations; persons in 1,400 land user to the affected collectives land 2) two yuan/mu/peryear or individuals directly. Land-contracting villages in for food crops, households two for two years townships HD 400 m 2 in Proprietors Two Reinforced 1) HD and attachment total, incl. 100 households concrete: 650 compensation is based on structure m2 in with 7 yuan/m2, and size; 2) Other compensation reinforced persons in masonry and subsidies will be granted, concrete one village concrete: 600 including moving subsidy and structure, 100 in one yuan/m 2, moving reward; 3) The above m2 in township masonry timber: compensation and subsidies will be masonry 400 yuan/m2, paid directly to the AHs; and 4) concrete earth timber: 300 Housing land for new house structure, 100 m² construction will be allocated at 30 m2 in m2 per capita, and not less than 90 masonry m2 but not more than 120 m 2 per timber household. structure and 100 m 2 in earth timber structure Ground Enclosing Proprietors Proprietors Compensation Former structures compensated for attachments walls, wells, (see Table 22) will be disposed of by the LA. etc. will be paid to proprietors directly. Vulnerable HD area 100 9 1) Necessary assistance will be groups m2 households offered during resettlement; with 28 2) They will have priority in housing persons land allocation; 3) They will have priority in receiving job opportunities.

E. Compensation Rates

Item Rate Unit Basic costs Permanent LA Land compensation 13000 yuan/mu Resettlement subsidy 35000 yuan per capita Young crop compensation 2400 yuan/mu Temporary land occupation yuan/mu per Young crop compensation 2400 annum HD Reinforced concrete 650 yuan/m 2 House Masonry concrete 600 yuan/m 2 compensation Masonry timber 400 yuan/m 2 Erath timber 300 yuan/m 2 Transition 200 yuan per capita per yuan/month per 200 subsidy month within 24 months capita 3 persons or less 800 yuan/HH Moving subsidy 4 persons or more 1500 yuan/HH Moving reward Paid at a time 1500 yuan per capita Ground attachments Enclosing walls 88 m3 Earth 10 m2 Fences Slab 20 m2 Septic tanks 50 m3 Tombs 8500 / Telegraph poles 150 / Wires 5 M Water canals 88 m3 Wells 800 / Dia. 2-4cm 25 / Fruit trees Dia. 4-7cm 33 / Dia. 7-10cm 55 / Dia. 3-5cm 8 / Dia. 5-10cm 10 / Other trees Dia. 10-15cm 20 / Dia. 15-20cm 33 / Dia. >25cm 55 /

F. Grievance redress mechanism In order that grievances about LA, compensation and resettlement from the APs are handled publicly and quickly, the owner has established an appeal procedure as follows: Stage 1: If an AP has any objection to this RP, it may file an appeal with the township government, which shall make a disposition within one week. In case of an oral appeal, the township government shall keep written records. Stage 2: If the AP is dissatisfied with the disposition of Stage 1, it may file an appeal with CCLRB after receiving such disposition, which shall make a disposition within one week. Stage 3: If the AP is dissatisfied with the disposition of Stage 2, it may file an appeal with the Chengkou PMO after receiving such disposition, which shall make a disposition within one week. Stage 4: If the AP is still dissatisfied with the disposition of Stage 3, it may file an appeal with competent administrative authorities, such as the district legal, disciplinary inspection, and letters and visits departments. An AP may file an appeal with these departments directly without going through the first 3 stages.

County judicial authority Chengkou PMO

County disciplinary External M&E agency inspection authority CCLRB

County authority for

letters and calls Township government

Affected households / village committees Figure 2 Grievance Redress Mechanism

All agencies will accept grievances and appeals from the APs for free, and costs so reasonably incurred will be disbursed from the contingencies. See Figure 2 and Table 19.

Contact Information of Appeal Handling Agencies at Different Stages Appeal handling agency Person responsible Title Tel Yanhe Xiang Government Yang Denxian Xiang head 59501500 Stage 1 Shuanghe Xiang Government Yuan Hongfu Xiang head 59295500 Stage 2 CCLRB Zhang Yiqin Deputy Director 59222935 Stage 3 Chengkou PMO Guo Xiaolian Deputy Director 59223581 County judicial authority Chen Yangchao Director 59226099 County disciplinary inspection authority Zhang Guoyi Director 59223334 County authority for letters and calls Xiao Tiyong Director 59221221 Halcrow(Chongqing) Engineering

Consulting Co.LTd

Any victim may also file an appeal with the external M&E agency, which will report such appeal to CCLRB and the PMO. In addition, the victim may file an appeal directly with the ADB project team. If all efforts fail and such appeal arises from a violation of ADB’s social safeguard policies, the victim may resort directly to ADB in accordance with ADB’s accountability mechanism (2012).

Appendix 3: Terms of Reference for External Resettlement Monitoring

Terms of Reference for External Resettlement Monitoring A. Purpose of resettlement M&E According to ADB’s policy on resettlement, the resettlement work of the Subproject will be subject to external M&E by examining the progress, funding and management of land acquisition, property demolition and resettlement, and analyzing and comparing the production level and standard of living of displaced persons. While submitting reports to ADB, Chongqing PMO and competent authorities regularly (twice a year during the resettlement period), the external M&E agency will provide information and advice as a reference for decision-making. External M&E will enable ADB and competent authorities to well understand whether land acquisition and resettlement work is conducted on schedule and as expected, point out issues and provide advice for improvement. B. Scope of resettlement M&E (1) M&E of land acquisition progress, including: ①land acquisition progress; ②restoration of temporarily occupied land (2) M&E of fund availability and use, including: ①fund availability; ②fund use (planned vs. actual) (3) M&E of standard of living of affected persons, including: ①production level and standard of living before relocation; ②comparative analysis and evaluation of production levels and standards of living before and after relocation (4) Capacity evaluation of the implementing agency, public participation and grievance redress C. Technical route See Figure 1.

Project setup

Preparing M&E terms of reference

Preparing survey outline, questionnaire and typical household record card

Design of sampling plan

Baseline survey

Esta blishing M&E management information system Monitoring & survey

Regional Monitoring Monitoring Spoil ground socioecon by of affected restoration omic implement villages monitoring survey ing

Compiling monitoring data and establishing a database

Comparative analysis

Preparing M&E report

No Is resettlement monitoring completed?

End Figure 1 Technical Route of External Monitoring

D. External M&E agency The external resettlement M&E work of the Subproject will be undertaken by an external M&E agency appointed by the Chongqing PMO and accepted by ADB. E. Organization and division of labor of resettlement M&E ‹ The Chongqing PMO will appoint an external agency to conduct M&E survey, data collection, computational analysis and result examination. ‹ The external M&E agency will organize a “resettlement M&E team”, whose takes include conducting resettlement M&E, preparing M&E terms of reference, setting up monitoring sites, conducting field survey and in-house analysis, and preparing resettlement M&E

reports according to ADB’s policy on involuntary resettlement. ‹ The Chongqing PMO will assist the resettlement M&E team in the field survey in terms of staff and traffic. F. Mode of resettlement M&E ‹ M&E will be conducted through a combination of field survey, computational analysis and overall expert evaluation. ‹ The progress, funding, organization and management of resettlement will be surveyed comprehensively. ‹ The displaced households will be subject to a sampling survey using the classified random sampling method. Typical sample displaced households will be followed up. The sampling rate is 20% of the households affected by LA and HD, and 50% of the affected villages, to be sampled randomly. ‹ The comprehensive survey will be conducted by means of questionnaire survey, FGD and literature review, etc. ‹ In addition to written materials, photos, audio and video records, and real objects will also be collected. G. External resettlement M&E reporting The external M&E agency will submit a resettlement monitoring to the Chongqing PMO and ADB semiannually.

Table 1 Resettlement M&E Schedule Resettlement M&E report Date 1 Socioeconomic Baseline Survey Report 2016.07 2 M&E Report (No.1) 2016.07 3 M&E Report (No.2) 2017.01 4 M&E Report (No.3) 2017.07 5 Resettlement Completion Report 2017.12

Appendix 4 Relevant Letters 2

Cover Letter of CCLRB on the Land Used for the Subproject

Chonging PMO, The Subproject will improve the transportation condition for the people living nearby. It is a people's well-being project and a key county road. The project will occupy some existing country road and also will occupy some new farmland. A meeting was held on May 28 to discuss the land using for this project. Officials from the Chengkou County Land and Resources Bureau, Development and Reform Bureau, Transport Bureau, Yanhe and Shuanghe Xiang Governments, and village officials of all affected villages attended the meeting. According to the discussion, the per capita land area in the affected villages is over 1 mu, and the Subproject will only occupy part

2 A letter of confirmation has been prepared for every affected village, and this is just an example.

22 of the land and the impacts are scattered. Land occupation will not severely affect local farmers’ livelihood. So all affected villages think land using of this project need to follow the policies and practice for township/countryside road implemented in the past, which are (i) the project road is township/countryside road, and the farmland to be used for the project is due to agricultural internal structural adjustment; (ii) the compensation standard for the villages should be the same as permanent land acquisition, and the village will use the compensation for development to mitigate the loss of land; (iii) the project owner (CCTDC ) will have the right to construct and management, and the collective economic organization can’t interfere.

Chengkou County Land and Resources Bureau June 8, 2012

Certification Letter on the Land Used for the Subproject in Group 1 of Xiaoshuiba Village, Shaunghe Xiang

CCLRB: We hereby make the following promises on the land used for the Subproject: 1. We support the construction of the Subproject, because it is good to local traffic improvement and production development. 2. The Project will utilize some land of former village roads and occupy a small amount of new land. Our group has a per capita cultivated area of over 1.2 mu, and land occupation for the Subproject will have little impact on our group. It is advised to grant compensation according to the prevailing LA compensation policy and resettle the APs agriculturally.

3. The Subproject is a rural highway that serves nearby rural residents. It is advised that the land used for the Subproject be obtained by internal reallocation without going through the land use approval formalities.

Head of Group 1 of Xiaoshuiba Village, Shaunghe Xiang June 6, 2012

Association of HJI Group Corporation and Chongqing Municipal Engineering Management Co. Ltd. 哈莫尼集团公司和重庆市工程管理有限公司联营体

Room 610, No. 3 Caifu Ave, Yubei District, Chongqing, China 401121

Chongqing Urban-Rural Infrastructure Development Demonstration II Project (Loan No. 3022-PRC) Chengkou Urban-Rural Road Network Improvement Due Diligence on Review of Changes

1. Technical Review

The subcomponent originally included three contract packages for construction of 9.495 km rural highway including 2 bridges and 1.6 km tunnel with design standard of Grade IV Rural Highway. The detailed engineering design had been reviewed and commented by the Consultant. The road alignment has been improved and optimized, the length of the highway has been reduced to approximately 7.4Km, in which the 3 bridges and 1.8Km tunnel are included with design standard of Grade IV rural highway. After discussion with ADB’s March 2015 mission and approval of the design drawings by Chengkou County Transportation Committee on May 10, 2015, the highway between Yanhe and Shuanghe with length of 7.4Km along has been divided into two contracts, i.e. CH-C01 contract is for the section K0+000~K4+600 with the estimated investments of CNY35.7million, and CH-C02 contract is for the section K04+600~K7+395.372 with the estimated investments of CNY86.0million including the tunnel. Refer to the Appendix 1 - updated procurement plan for Chengkou Urban-Rural Road Network Improvement.

1.1 Adjusted Route of Road after Optimized Design

‹ Updated road section of K3+275 ～K6+335 in original design (preliminary design) Refer to the drawing at below. The red line is the route of the road section K3+275~K6+335 in the preliminary design (PD), the disadvantage in the red line would be that the length of the road is longer and the construction would be difficult; however, the average of road slope would meet the requirements of the design code.

1 The blue line is the updated route of road, for which the length of road as well as the difficult level of the construction have been reduced; however, the average slope of the road will be increased, but it still meets the requirement of Chinese design code. Eventually the blue line is the proposed route for the detail design.

1.2 Estimated Cost and Procurement Plan

‹ Comparison between PD and Detail Drawing for the route, cost and procurement plan Please refer to table at below for information between Preliminary Design and Detail Design.

Total Total Width Estimated Estimated Length Design of contract Investment Contract Contract Length of Highway Stage of Speed Road Cost (contract No Description Highway (Km) Grade Highway (Km/h) Base (CNY cost) (Km) (m) 10,000) (CNY 10,000)

Preliminary Design Yanhe to K0+000 ～ CH-C01 Shuanghe Road K3+100 IV 20 6.5 3270 Section 1 (blue-line) Yanhe to K3+100~K6+335 15,171 CH-C02 Shuanghe Road 9.495 IV 20 6.5 2775 (Blue-line) (12,075) Section 2 Shuanghe K6+355 ～ CH-C03 Tunnel and K9+495 IV 20 6.5 6030 Road (pink-line)

3 Total Total Width Estimated Estimated Length Design of contract Investment Contract Contract Length of Highway Stage of Speed Road Cost (contract No Description Highway (Km) Grade Highway (Km/h) Base (CNY cost) (Km) (m) 10,000) (CNY 10,000)

Detail design

Yanhe to K0+000 ～ CH-C01 Shuanghe Road K4+600 IV 20 6.5 2,903.05 Section 1 (blue-line) 12,170.94 7.395 Yanhe to K4+600 ～ (9,746.92) CH-C02 Shuanghe Road K7+395.372 IV 20 6.5 6,843.87 Section 2 (red-line) Note: There are two figures in the last column, total estimated investments including the cost of physical works, land acquisition, overhead, etc. and the contract costs in the brackets are only cost of physical works. ‹ Comparison between FSR and Detail Drawing for quantities and investment After the completion of the detail design for the updated road route, the comparisons of technical data and cost between the updated design and previous FSR are shown in the Table 1-1 and Table 1-2 at below. Table 1-1 Comparison of Technical Data

Updated Preliminary No Description Unit Difference Route Route

1 2 3 4 5 6=4-5 Length of road 1 Km 7.395 9.495 -2.10 route 2 Excavation m3 264,786 208,895 55,891 3 Backfill m3 83,261 73,517 9,744

4 Updated Preliminary No Description Unit Difference Route Route

1 2 3 4 5 6=4-5 Mortared stone 4 m3 2,678 3,635 -957 drainage-ditch 5 Retaining wall m3 45,780.4 70,699.6 -24,919 18cm thick 5% 6 comment crushed m3 35,297.1 54,539.7 -19,243 stable road base Concrete road 7 m3 35,297.1 54,539.7 -19,243 surface 8 Steel bar t 27.109 36.925 -9.816 9 Culverts m/ea 193/19 272/30 -79/11 10 Small bridges m/ea 26.04/1 26.01/1 0 11 Middle bridges m/ea 65.08/2 65.08/2 0 12 Intersections ea 3 2 1 13 Tunnel m/ea 1760/1 1675/1 85/0 Planted trees and 14 ea 2,812 3,045 -233 brushes

Table 1-2 Estimated Cost Comparison

Preliminary Design No. Description Unit Updated Route Route

Length of Km 9.495 7.395 road route

1 Civil works 10,000 Y 12,075 9,746.92

Other related cost including 2 10,000Y 3,096 2,424.02 LAR costs, etc. Total 3 estimated cost 10,000Y 15,171.0 12,170.94 of works

Refer to the Map of the updated route and FSR route as shown Appendix 2.

2. Social Review Chengkou Road sub-project is one of ADB-loaned Chongqing Urban-Rural Infrastructure Construction Phase II Projects, which starting point is Yinghong village, Yanhe township (Zhongxi township before), and final point lies in Shuiba village, Shuanghe township, with design standard of class 4 and two lanes, concrete

5 pavement with 6.5m-width of roadbed, 2*3.0m width of carriageway, design speed of 20km/h. According to feasibility report, the total length is 10.188km, and adjusted to 9.495km after preliminary design. Through the further checking, the two sections of K3+275 and K8+010 (the exit of tunnel) to final point were optimized, the whole route is shortened to 7.395km that is 2.793km shorter than before. As the aspect of land acquisition and demolition, there are sufficient change reasons and evidences. As for the aspect of ADB’s guarantee policy, involuntary resettlement should be avoided and the number should be reduced through reducing land acquisition and demolition. After data analysis comparison with existing reports, it will greatly reduce the number of affected people though reducing land acquisition and demolition activities after design optimization. Refer Table 2-1.

Table 2-1 Comparison of design change influences for Chengkou Rural Road Total budget of Affected Total Area of land Affected Area of house resettlement of Item household by length acquisition household demolition affected demolition residents

Ten thousand （Unit ） Km mu household m2 household yuan Preliminary 10.188 490.8 168 7360 38 1233.63 Plan

Detail design 7.395 359.18 43 400 2 1013.31 Increased or -2.793 -131.62 -125 -6960 -36 -220.32 decreased Percentage of -27.4% -26.8% -74.4% -94.6% -94.7% -17.9% increased（%）

Based on the analysis of above data, the number of demolition and affected people was greatly reduced after changing route and there is no other negative effect, so that the Consultant believes that the route changing is reasonable.

3. EIA Review There are no changes in the EIA, because the route of updated rural highway under the Chengkou subcomponent is around the same area. The Consultant has updated the EMP after the completion of detail engineering design. Refer to the Appendix 4 for the updated EMP. Based on the analysis above and the field survey, the Consultant believes the shorten route of Yanhe to Shuanghe rural highway is justified; therefore the Consultant has no objection to present the changes to ADB for approval.

Consortium of HJI Group Corporation and Chongqing Municipal Engineering

6 Management Co. Ltd.

November 22, 2015