Internal Resettlement Monitoring Report People's Republic of China

Internal Resettlement Monitoring Report

Report No. 1 March 2017

People’s Republic of China: Shandong Groundwater Protection Project

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Internal resettlement motoring report (No.1)

Project Number: 47047-002 Loan Number: 3400 March 2017

People's Republic of China: Shandong Groundwater Protection Project

Prepared by the Shandong Project Management Office 1. Background and overview

This report is prepared based on resettlement progress as of Feb 2017. Shandong Province Project Management Office (Shandong PPMO), on behalf of SPG (Shandong Province Government), submits this report.

The resettlement implementation, from commencement to 28th Feb of 2017, is briefly presented.

1.1. Project Profile

The loan for the Shandong Groundwater Protection Project will contribute to ensuring sustained groundwater supply for the agricultural sector in the Weifang-Zibo area. The project will serve as a demonstration of an integrated approach for environmental restoration of overexploited groundwater aquifers through improving allocation of water resources, retention of storm water, and rehabilitating the water environment. The project will protect groundwater quantity and quality in the area, safeguard a sustainable groundwater source for the agricultural sector, and contribute to improving food security in the PRC.

The project has three outputs: (i) groundwater recharged and conserved, (ii) surface water allocation improved and monitored, and (iii) capacity development for water resources management enhanced. Demonstration activities will be implemented in Changle and Huantai counties, and Gaomi, Qingzhou, and Shouguang cities in Weifang and Zibo, which are representative for critical water-scarce conditions in intensive agricultural production bases in the Weifang–Zibo area.

This project includes 6 subprojects, and 5 subprojects involve resettlement work, including:1) Changle Nanzhai Reservoir Expansion Project; 2) Shouguang Wetland and River Ecology Improvement Project; 3) Gaomi Reservoir Updating and Connection Project; 4) Qingzhou Surface Water Allocation and Improvement Project; 5) Huantai Wetland Improvement and Surface Water Allocation and Improvement Project. The total estimated investment amount is about 2.102 billion RMB, while the ADB loan is 150 million USD.

1.2. Resettlement Plans and Updating

Totally 4 RPs of subprojects involved in LAR, expect Changle Nanzhai Reservoir Expansion Project without change, have been updated by IAs and approved by ADB on 15 December 2016. The summarized LAR impacts in Original and Updated RPs are presented in the table1 below.

During the PPTA Stage, 5 RPs were prepared and approved by ADB for 5 counties involved in land acquisition and resettlement. During the project design stage, resettlement impacts of four counties were varied, including Qingzhou, Shouguang, Huantai and Gaomi. Therefore, the RPs for these counties have been updated and submitted to ADB and were approved by ADB on 15 Dec, 2016.

The four approved updated RPs have been disclosed to APs and uploaded on ADB’s website.

1 TABLE1: PROJECT COMPONENTS & BASIC SITUATION OF RESETTLEMENT Subproject Name Reports Affected Permanent Temporary Residential Affected Affected Estimated Budget Remarks village number land acquisition land use (mu) House Household People （ten thousand 2 from （mu） Demolition(m ) Yuan） permanent land acquisition Changle Nanzhai Original RP 9 1026.71 674.87 44923.7 446 1697 17393.03 No change Reservoir Updated RP 9 1026.71 674.87 44923.7 446 1697 17393.03 and not Expansion Project Difference 0 0 0 0 0 0 0 need to be updated Shouguang Original RP 1 379.73 2754 0 598 2093 4680.62 Wetland and Updated RP 1 379.731 2480.94 0 0 0 4757.648 River Ecology Difference 0 0 -273.06 0 -598 -2093 77.028 Improvement Project Gaomi Reservoir Original RP 0 0 2730.18 0 741 2593 2137.15 The update Updating and 2 Updated RP 0 0 2846.19 0 1265 No data 2400.26 RP has Connection Difference 0 0 116.01 0 524 N/A 263.11 been Project submitted to Qingzhou Surface Original RP 0 0 1258.8 0 1200 4080 854.68 ADB and Water Allocation 3 Updated RP 0 0 1161.27 0 1759 No data 999.53 approved by and Improvement ADB on 15 Project Difference 0 0 -97.53 0 559 N/A 144.85 Dec, 2016 Huantai Wetland Original RP 0 0 2004 0 4551 15246 4210.64 Improvement and Surface Water Updated RP 0 0 1527.93 0 3473 No data4 3417.79 Allocation and Difference 0 0 -476.07 0 -1078 N/A -792.85 Improvement Project Original RP 10 1406.44 9421.85 44923.7 7536 25709 29276.12 Total Updated RP 10 1406.44 8691.2 44923.7 6943 No data 28968.26 Difference 0 0 -730.65 0 -593 N/A -307.862

1 collectively managed, not contracted to HHs 2 not provided in updated RP 3 not provided in updated RP 4 not provided in updated RP

2 1.3. External Monitoring

Shandong PMO has finished TOR of resettlement external monitoring in 2015 and obtained no-objection comment from ADB. Shandong PMO completed the bidding procedure and 5 County PMOs signed their contracts with the external monitoring agency, Shandong Construction Development Research Institute, in Sep., 2015.

The external monitoring agency has carried out the baseline survey of affected communities and households in Nov 2015 and the resettlement implementation monitoring in April 2016; the No.1 M&E report was submitted to ADB on 15 Nov., 2016.

The external monitoring agency will submit No.2 M&E report to ADB in June 2017.

1.4. Capacity Building of Resettlement Organization

Shandong PPMO and 5 IAs involved in land acquisition and resettlement assigned the full staff to take charge with the resettlement activities, and established the internal monitoring mechanism. The resettlement institutions involved in the project are well staffed. In order to strengthen the capacity of IAs and their staffs, the Resettlement Specialist have conducted the resettlement training in March, 2017. The training contents are involuntary resettlement policies of ADB, the requirements of resettlement monitoring and evaluation of ADB and the potential issues during the resettlement implementation as well.

Meanwhile, each IA has established their GRMs and PMOs at province and county levels also publicized their hot line for APs’ appeal and complains.

As of Jan, 2017, county PMOs and external monitoring institute have received no grievances and complaints of APs.

Table 2: Staff Responsible for Resettlement & Hotlines of Each Sub-project

Name of Counties Name of principal Telephone Hot line for complaining

Sandong PPMO Chi Zhixue 18253166111 18253166111 Qingzhou Li Cunjian 18663635477 13563635366 Shouguang Hu Zhimin 13791660798 15165361666 Changle Ding Bingxue 13721956059 13906468001 Huantai Wang Haiquan 13053315116 13953360988 Gaomi Song Lihua 13864633878 13963676209 External monitoring Liu Yuanbin 15666967789 15666967789 agency

2. Resettlement Progress and Monitoring

2.1. Land Use Approval

Within the 5 counties involving in land acquisition, 3 counties are only related to temporary land use, including Gaomi, Qingzhou and Huantai. The land use approval of Changle and Shouguang County is still under reporting and reviewing. Please see details of DMS, starting dates of LAR, expected completing date, and civil works commencement dates in table 3 follows.

3 Table3: Project Land Use and Resettlement

No. subproject Resettlement Land Resettlement Expected Civil works remark DMS approval/ starting date Completing commencement licence date 1 Qingzhou Nov, 2016 Only Nov. 2016 Dec., 2018 Aug, 2016 ongoing temporary land 2 Shouguang Nov, 2016 under Apr. 2017 Dec. 2017 March, 2017 ongoing reporting and reviewing 3 Changle Aug, 2014 under Aug. 2015 Dec. 2017 Dec, 2015 ongoing reporting and reviewing 4 Huantai Oct, 2016 Only Nov. 2016 May, 2019 Dec, 2015 ongoing temporary land 5 Gaomi Nov, 2016 Only Dec. 2016 Oct. 2017 Feb, 2016 ongoing temporary land

2.2. Resettlement Implementation

As of the end of March 2017, the land acquisition and resettlement for 4 counties, including Qingzhou, Changle, Huantai and Gaomi is being implemented. The resettlement work of Shouguang will start in April, 2017. See details in Table 3.

As of the end of March 2017, permanent Land acquired is totalling to 688.91mu, accounting to 48.98% of desired area of 1406.44mu. Temporary land occupation is reaching to 2845.64 mu, standing at 32.74% of 8691.2 mu desired area. Gound attachment compensation have been paid CNY53.21 million, accounting to 88% of total amount of CNY 60.35 million. The resettlement compensation has been made with CNY95.09 million, accounting to 33% of total amount of CNY288.18million. Please see details in table 4 as follows.

All actual compensation for permanent land acquisition, temporary land occupation and ground attachment of each sub-project implementation are same with the compensation standard in updated RPs.

The counterpart funds are well prepared for LAR compensation and the compensation have been paid to affected villages and HHs in a timely manner.

By the end of March, 2017, no complaint has been received and APs are satisfied with the compensation and resettlement policy.

4 Table 4: Land Requisition, Resettlement & Compensation Funds (as of March, 2017)

Temporary House Ground Resettlement Permanent Land No. subproject Items Land Demolition Attachment cost Acquisition(Mu) Occupation (㎡) (10KCNY) (10KCNY) Updated 0 1161.27 0 285.43 999.53 RP actually 1 Qingzhou 0 142.44 0 331.8908 357.53 completed percentage N/A 12.3% N/A 116.3%5 35.8% Updated 379.73 2480.94 0 399.71 4,607.23 RP actually 2 Shouguang 0 0 0 0 0.00 completed percentage 0.0% 0.0% N/A 0.0% 0.0% Updated 1026.71 674.87 44923.7 3377.83 17393.03 RP actually 3 Changle 688.91 308.28 1665.56 5339.54 completed percentage 67.1% 45.7% 0.0% 49.3% 30.7% Updated 0 1527.93 0 1527.32 3417.79 RP actually 4 Huantai 0 939.95 0 2793.022 3018.61 completed percentage N/A 61.5% N/A 182.9% 88.3% Updated 0 2,846.19 0 445.57 2400.26 RP actually 5 Gaomi 0 1454.97 0 530.9454 792.84 completed percentage N/A 51.1% N/A 119.2% 33.0% Updated 1406.44 8691.2 44923.7 6035.86 28817.84 RP actually 6 total 688.91 2845.64 0 5321.418 9508.52 completed percentage 49.0% 32.7% 0.0% 88.2% 33.0%

5 The amount of affected attachments are larger than these in updated RP in fact.

5 3. Actions to be Taken in Next Steps The Shandong PPMO and the relevant implementing agencies will do the following:

(1) Obtain the approval of LA from provincial government for the subprojects in Shouguang and Changle Counties as soon as possible;

(2) Submit the No.2 resettlement external M&E report to ADB by the end of June 2017;

(3) Establishing and update a resettlement monitoring database with the assistance of the consultants and external monitoring agency;

(4) Urge the resettlement implementing agencies/local governments to provide skills training and other livelihood rehabilitation measures to the affected people pursuant to the RP so as to restore their income as soon as possible;

(5) Implement other committed measures in GAP and SDAP to ensure the targets on social dimensions can be achieved fully and timely.