Social Monitoring Report PRC: Wuhan Wastewater and Stormwater

Social Monitoring Report

Project Number: 37597 July 2010

PRC: Wuhan Wastewater and Stormwater Management Project

Prepared by Tongji University Shanghai, PRC

For Wuhan Project Management Office

This report has been submitted to ADB by the Wuhan Project Management Office and is made publicly available in accordance with ADB’s public communications policy (2005). It does not necessarily reflect the views of ADB.

People’s Republic of China

WUHAN WASTEWATER AND STORM WATER MANAGEMENT PROJECT

Asian Development Bank Loan No. 2240-PRC

Resettlement Monitoring and Evaluation Report （No.7）

School of Economics and Management Tongji University July, 2010

External Independent Monitoring Agency:

School of Economics and Management

Tongji University

Address: Siping Road 1239, Shanghai

Postcode: 200092

Team Leader: Wu Zongfa

Team Member: Wu Zongfa Tao Tao Liu Zhen Tang Li-Zhi

Report Compilers: Wu Zongfa and Tao Tao Liu Zhen Tang Li-Zhi

Consultant Specialist: Yang Minggang

CONTENTS 1 PREFACE...... 1 2 RESETTLEMENT...... 1 3 RESETTLEMENT IMPLEMENTATION ...... 5 3.1 WASTEWATER SUB-PROJECT ...... 5 3.2 STORM WATER SUB-PROJECT ...... 5 4 RESETTLEMENT PROCESS ...... 10 4.1 WASTEWATER PROJECT...... 10 4.2 STORM WATER PROJECT...... 11 5 IMMIGRANT REVENUE RECOVERY ...... 11 6 LAND ACQUISITION AND RESETTLEMENT POLICIES ADOPTED...... 18 6.1 COMPENSATION STANDARD...... 18 6.2 COMPENSATION STANDARD COMPARISON...... 21 6.3 RESETTLEMENT IMPLEMENTED BY WUHAN ...... 23 6.3.1 Nantaizi Lake sub-project...... 23 6.3.2 Nantaizi Lake Sewage Treatment Plant pipeline gathering systems...... 23 6.3.3 HuangPu Sewage Treatment Sub-project...... 24 6.4 RESETTLEMENT IMPLEMENTATION OF WUHAN CITY INFRASTRUCTURE CONSTRUCTION ENGINEERING CO., LTD...... 24 6. 4.1 Three-gate connected Sub-project...... 24 6.4.1.1 Adopted Policy and Sample Survey of Line A ...... 24 6.4.1.2 Adopted Policy and Sample Survey of Line B ...... 27 6.4.2 Changqing Pump Station Sub-project ...... 27 6.4.3 Yangsigang Pump Station Sub-project...... 28 6.5 RESETTLEMENT IMPLEMENTATION BY DDSCWMDC...... 28 6.6 RESETTLEMENT IMPLEMENTATION BY CDSCWMDR...... 28 6.7 RESETTLEMENT IMPLEMENTATION BY HONGSHAN DISTRICT KEY PROJECT REBUILD MANAGEMENT OFFICE...... 29 7 HOUSE RELOCATED...... 30 7.1 URBAN HOUSE RELOCATION ...... 30 7.2 COLLECTIVELY-OWNED LAND ACQUISITION AND HOUSE RELOCATION ...... 31 7.3 RESETTLEMENT METHODS FIT FOR THIS COMPONENT...... 32 7.3.1 house relocation on collectively-owned land ...... 32 7.3.2 compensation for small businesses to be relocated...... 32 7.3.3 compensation for unregistered houses ...... 32 8 THE INFRASTRUCTURE REHABILITATION...... 33 9 RESETTLEMENT COMPENSATION FUNDS...... 33 10 PARTICIPATION AND INFORMATION DISCLOSURE...... 37 11 ORGANIZATION AND MANAGEMENT...... 37 12 PROJECT PERFORMANCE MONITORING...... 37 13 CONCLUSION AND SUGGESTION...... 37 13.1 CONCLUSION ...... 37 13.2 SUGGESTION...... 38 14 APPENDIX: INTERVIEW RECORD BEFORE THIS M&E...... 38

1 Preface

Wuhan, located in the central part of China, at the confluence of the Yangtze River and HanJiang River, is the provincial capital of Hubei, as well as its industrial, commercial and transportation base. With the rapid development of cities, a large amount of untreated or primary treated sewage is discharged into nearby rivers and lakes, arising serious water quality deterioration in areas, including Wuhan section of Yangtze River. As part of the overall planning of Wuhan City infrastructure, Wuhan municipal government (WMG) has obtained the Asian Development Bank (ADB) loans to carry out wastewater and storm water management projects (WWSMP) of Wuhan City. Its aim is to achieve sustainable wastewater management and water resource protection. The total cost of this project is up to26, 6.42 million U.S. dollars, including the Asian Development Bank’s 100 million U.S dollars loan and domestic matching funds 166.42 million U.S. dollars.

Projects include:

(1) Expansion of three sewage treatment plants and associated sewage collection systems and pumping stations in the main city area of Wuhan; (2) Construction of a sewage treatment plant and associated sewage collection systems and pumping stations Wuhan city urban area; (3) Construction and Maintenance of the storm water drainage facilities in the main city area; (4) Institutional development.

For Project loans, please see table 1.

Table 1 Project Loans

ADB Loan No. 2240 Wu Han wastewater and storm water management Project projects (WWSMP) Borrower People’s Republic Of China Project Executing Wu Han Municipal Government Agency Wuhan Urban Construction Utilization of Foreign Project Management Investment Project Management Office Office

Project Wuhan Municipal Drainage Company; implementation Wu Han Urban Construction Fund Management Office Agency Loan Approval Date 26th June 2006 Loan Agreement October 2006 Signing Date Loan 5th March 2007 Commencement Date Loan Period 1st July 2006~31st March 2011 (57 Months) Loan Closing Date 30th June 2011

2 Resettlement

By December 2008, Nantaizi Lake has completed factory land acquisition and resettlement. A total amount of 133.5 acres land was acquired, along with 4650.39

square meters of house were demolished, affecting 20 units population. Part of Nantaizi Lake pipe network and pumping stations proposals have been approved, occupying the land of Wuhan New District and Wuhan Economic Development Zone, as to June 30, 2010, it is still under negotiation.

Huangpu Road project is still being processed and the construction has not started so far. Due to the fact that this project is to rebuild on the original place, no new land acquisition and resettlement are required.

Pipe jacking is applied in the most part of the construction of Pipe network of Dongxi Lake project, requiring relative a few temporary land occupation and 2000 trees transplanting. As the pumping station project backed out ADB loan projects, there is no acquisition of land.

Caidian has completed its planted land acquisition of 20 acres, which affected a total number of 84 households. Compensation is made to the affected people and the final sum of land compensation has been paid to the village, the affected people's living is stable and their income has increased. Pipe network has temporary occupied an area of 34 acres, and all compensation has been completed.

SanDianLianTong sub-project has completed a total of 167.29 acres of land acquisition, and a temporary land occupation of 311.13 acres, house demolition of 11,310.6 square meters, the land acquisition and resettlement of SanDianLianTong sub-project have ended. Income of affected persons has been restored.

Changqing Pumping Station sub-project has completed a total amount of 30.91 acres of land acquisition, and a temporary land occupation of 4.42 acres, with the required demolition housing still under negotiation.

Yang Si Station has been allotted 7.45 acres of national-owned land, affecting 10 residents with a demolition housing area of 491.46 square meters, as well as two units with a demolition housing area of 2296 square meters. The demolition permits are settled. The resettlement has been completed.

Luojiagang sub-project has completed 218.753 acres of land acquisition, the housing demolition is ongoing.

Table 2 the progress of land acquisition procedures for Sewage Project (as of June 30, 2010)

Activities Nantaizi Lake Huangpu Dongxi Lake Caidian Feasibility Study Achieve Achieve Achieve Achieve The land department of the pre-feasibility study Achieve Not required Achieve Feasibility Study of Development and Reform Achieve Achieve Achieve Commission approved The beginning of the tender set Achieve Achieve Achieve Achieve Preliminary Design Achieve Achieve Achieve Achieve Land acquisition survey Achieve No required Achieve Achieve Plant has been completed pipe Preliminary design approval Preparing Achieve Achieve network approval Land approval procedures (a book a certificate) Achieve No required Not required Achieve Requisition approval Achieve No required No Ongoing Detailed design of the tendering Preparing Achieve Achieve Achieve Project started Factory has been started Start Has started

Resettlement negotiation Some site have been completed Achieve Completed

Table 3 Progress of the storm water project land acquisition procedures (as of June 30, 2010)

Three-gate Changqing Pump Matters Luojiagang Yangsigang Station connected Station Feasibility Study Achieve Achieve Achieve Achieve The land department of the pre-feasibility Preparing Achieve Ongoing Achieve study Feasibility Study of Development and Reform Achieve Achieve Achieve Achieve Commission approved The beginning of the tender set Achieve Achieve Achieve Achieve Preliminary Design Achieve Achieve Achieve Land survey Achieve Achieve Achieve Achieve Preliminary design approval Achieve Achieve Achieve Luojiagang part of the A book has to do Land approval procedures (a book a Sand Lake, "a book a Achieve Achieve Bedding; 2 card is certificate) certificate" in this being processed matter. Are currently being Requisition approval No required Preparing Preparing processed Detailed design of the tendering No required Achieve Project started Has started Resettlement negotiation Ongoing Achieve Achieve Achieve

3 Resettlement implementation

3.1 Wastewater Sub-project Nantaizi Lake sub-project planned to levy 146 acres of land, while 133.5 acres of land was actually acquired, accounting for 91.4% of the planed. Change is due to the fact that a small part of land planned be levied was turned into temporary sites instead. Nantaizi Lake project demolished a nearby factory with 4650.39 square meters and accommodated for 20 employees instead of demolishing any residents’ houses. This change is towing to the reason that ownership of land and house was not thoroughly investigated when preparing resettlement plan, along with some changes took place between planning and implementation. The temporary land occupation of Nantaizi Lake project pipe network construction is still under negotiation.

There is still no land acquisition and resettlement in Huangpu Road sub-project.

For East West Lake sub-project, there is no land acquisition. The reason for that is pipe jacking technique is applied for construction process; the original design of the pumping station backed out of ADB loan projects, therefore there is no expropriation of land. Only 2000 trees were transplanted.

For Caidian sewage treatment plant, there is 120 acres of land acquisition, which is 143.5% as originally planned. The land acquired consists no resident housing. Temporarily occupied an area of 34.5 acres, which is 115% as originally planned. Land acquisition affected 84 households, which is 155.6% as originally planned (54 households). This is due to the change of location for sewage treatment plant, reducing the house demolition and occupying more wasteland. 3.2 Storm Water Sub-Project Three-gate connected sub-project: It planned 422.6 acres land acquisition; the actual land acquisition is 167.29 acres, which is 39.6% as planned. Temporary land occupation was 10 acres according to the original plan, while the actual temporary occupying area is 11.13 acres. Demolition of housing area was 1395 square meters according to the original plane, while the actual demolition of houses area is 11,310.6 acres.

The land acquisition planed to have an affect only on 17 households, whereas the actual figure is 88. Reason for the change is that during the pipe culvert process in Three-gate connected sub-project, a part of planned land acquisition was turned into temporary Occupancy. The amount of house need to be demolished and trees need to be transplanted has been changed due to because the fact that the original survey and investigation did not meet the requirements.

Changqing pumping station: Planned to levy 18.9 acres of nursery land, whereas the actual number of acquisition is 30.91 acres, which is 163.55% as the planned. A total area of 1500 square meters of houses were planned to be demolished, while the actual figure is 4827.54 square meters, 321% as planned figure. Changes occurred due to insufficient precision of the planning survey.

Yangsigang pumping station: Planned to demolish 6090 square meters of residential homes while the actual figure is 491.46 square meters, 8.07% as the planned. Changes occurred due to the insufficient precision of prior investigation. Originally plan was to demolish two units’ factories with an area of 2230 square meters, while the actual figure is 2296 square meters, 102.6% as the planned one.

Luojiagang sub-project: planned to levy 208.1 acres of land, while the actual figure is 218.753 acres, which is 105.1% as the planned. As of June 30, 2010, the actual number of residential houses is 146, amounting to 18441.2 square meters. Final demolition scale is yet to be determined and the housing demolition is undergoing.

Sewage Project Resettlement Progress is in Table 4. The progress of the storm water project resettlement is in table 5. Resettlement of the overall progress is in table 6.

Table 4 Resettlement Progress of Wastewater Component (By June 30, 2010)

Nantaizi Lake Huangpu Road Dongxi Lake Caidian Categories Units Actual/ Actual / Actual / Actual/ Plan Actual Plan Actual Plan Actual Plan Actual planned planned planned planned 1 Permanent Land mu 146 133.5 91.4 0 0 0 24.3 0 0 83.6 120 143.5 Occupation 2 Temporary Land mu 188 0 0.0 0 0 0 119.8 0 0 30 34.5 115.0 Occupation 3 Number of Residential Households 11 0 0.0 0 0 0 0 0 3 0 0.0 Houses square meter 4 Residential Houses 1550 0 0.0 0 0 0 400 100 25 65 0 0.0

5 Sporadic Trees Trees 145 0 0.0 0 0 0 6300 2000 31.75 50 0 0.0 6 Number of Enterprises piece 0 1 0 0 0 0 0 1 0 0.0 and Institutional 7 Enterprises and square meter 0 4650.39 0 0 0 0 0 320 0 0.0 Institutional Buildings 8 Number of Shops piece 0 0 0 0 0 0 0 0.0 square meter 9 Shops Building 0 0 0 0 0 0 0 0.0 10 Affected Households Households of House Demolition 11 0 0.0 0 0 0 0 0 3 0 0.0 Compensated 11 Affected Households Households of Land Acquisition 9 0 0.0 0 0 0 5 0 0 54 84 155.6 Compensated 12 Employee of Units People 0 20 100 0 0 0 0 0 0 0 0 Allocated 13 Shop workers People 0 0 0 0 0 0 0 0 0 0 0

Table 5 Resettlement Progress of Wastewater Component (By June 30, 2010) Categories Three gate connected Changqing Pump Station Yangsigang Station Luojiagang

Units Actual Actual / Actual / Actual / Plan Actual Plan Actual Plan Actual Plan Actual /Plan planned planned planned 1 Permanent Land mu 422.6 167.29 39.6 18.9 30.91 163.5 34.8 0 0 208.1 218.753 105.1 Occupation 2 Temporary Land mu 10 311.13 3111 0 4.42 18.9 0 0 24 0 0 Occupation 3 Number of Residential Household 12 16 133.3 24 22 91.7 43 12 27.9 236 146 61.9 Houses square 4 Residential Houses 1395 11310.6 810.8 1500 4827.54 321.8 6090 2806.47 46.1 28288 18441.2 65.2 meter 5 Sporadic Trees Trees 6200 53243 858.8 32 1830 5718.8 33 0.0 6566 0 0 6 Number of Enterprises and piece 2 8 400 2 0 2 2 100.0 36 0 Institutional 7 Enterprises and square 724.85 0 0 0 0 2230 2296 103.0 15607 0 0 Institutional Buildings meter 8 Number of Shops piece 0 0 0 0 1 0 0.0 18 0 0 square 9 Shops Building 0 0 0 167 0 0.0 10745 0 meter 10 Affected Households of House Demolition Households 12 16 133.3 24 22 91.7 43 12 27.9 236 146 61.9 Compensated 11 Affected Households of Land Acquisition Households 17 88 517.6 21 21 100 0 7 11 157.1429 Compensated 12 Employee of Units People 8 0 0 15 0 0 10 0 0.0 208 0 0 Allocated 13 Shop workers People 0 0 0 8 0 0.0 73 0 0 Note: The actual size of the total area of housing, including home, unit, and attachments.

Table 6 Summary of Resettlement Progress (By June 30, 2010)

Wastewater Component Storm Water Component Total Categories Unit Real/ Real/ Real/ Plan Real Plan Real Plan Real Plan (%) Plan(%) Plan (%) 1 Permanent Land mu 253.9 253.5 99.8 684.4 417.0 60.9 938.3 670.453 71.5 Occupation 2 Temporary Land mu 337.8 34.5 10.2 52.9 315.6 596.5 390.7 350.05 89.6 Occupation 3 Number of Residential Househ 14 0 0.0 315 196.0 62.2 329 196 59.6 Houses old 4 Residential Houses m2 2015 100 5.0 37273 37385.8 100.3 39288 37485.81 95.4 5 Sporadic Trees Number 6495 2000 30.8 12831 55073.0 429.2 19326 57073 295.3 6 Number of Enterprises and Numbe 1 1 100.0 42 10.0 23.8 43 11 25.6 Institutional r 7 Enterprises and m2 320 4650.39 1453.2 18561.85 2296.0 12.4 18882 6946.39 36.8 Institutional Buildings 8 Number of Shops Number 0 0 0.0 19 0.0 0.0 19 0 0 9 Shops Building m2 0 0 0.0 10912 0.0 0.0 10912 0 0 10 Affected Households of Househ House Demolition 14 0 0.0 315 196 62.2 329 196 59.6 old Compensated 11 Affected Households of Househ Land Acquisition 68 84 123.5 45 120 266.7 113 204 180.5 old Compensated 12 Employee of Units Number 0 20 0.0 241 0.0 0.0 241 20 8.3 Allocated 13 Shop workers Number 0 0 0.0 81 0.0 0.0 81 0 0

4 Resettlement Process

4.1 Wastewater Project Table 7 Wastewater project resettlement process

Nantaizi Lake Huangpu Road Dongxi Lake Caidian Use of foreign Use of foreign investment Wuhan Use of foreign investment investment Wuhan Use of foreign investment Owners Urban Construction Wuhan Urban Construction Urban Construction Wuhan Urban Construction Project Management Project Management Office Project Management Project Management Office Office Office East Lake Wuhan Caidian District, Wuhan City Wuhan City Drainage Management units Drainage Company a Drainage Company a Development Co., Ltd. subsidiary of subsidiary of Wuhan City Drainage Wuhan Kaidi Water Caidian District of Wuhan City Implementation unit Development Co., Ltd. Services Investment Company Jijian Ban Migration Start Time September 2007 February 2008 August 2007 Immigration End Time December 2009 December 2009 Project Start Time December 2007 March 2008 208 in March Project End Time

4.2 Storm water Project Table 8 water project resettlement process

Three gate connected Changqing Pump Station Yangsigang Station Luojiagang Use of foreign investment Use of foreign investment Use of foreign investment Use of foreign investment Wuhan Urban Wuhan Urban Wuhan Urban Wuhan Urban Owners Construction Project Construction Project Construction Project Construction Project Management Office Management Office Management Office Management Office Hongshan District, Wuhan City Construction Wuhan City Jianxin Wuhan City Jianxin Wuhan City, construction Management units Co., Ltd. Lite-On IT Infrastructure Construction Infrastructure Construction of key projects were also Infrastructure Co., Ltd. Co., Ltd. built office relocation Taiwanese Investment Taiwanese Investment Cheong Building Zone, Wuhan Wujiashan Zone, Wuhan Wujiashan Wuhan vintex Demolition Demolition Co., Ltd. and Implementation unit Jinyin Ecological Park Jinyin Ecological Park Co., Ltd. Xinnuo Building Demolition Management Committee Management Committee Co., Ltd. of Wuhan city Migration Start Time September 2007 March 2008 June 2009 November 2009 Immigration End Time December 2009 Project Start Time October 2007 October 2009 Project End Time

5 Immigrant Revenue Recovery

(1) Sample proportion of baseline survey Proportion of sample households was shown in table 9. Number of baseline survey was shown in table 10. Result of baseline survey was shown in table 11, table 12 and table 13.

Table 9 Proportion of sample households

Household Shops, enterprises Vulnerable Sample type Affected by Affected by Affected by land and groups land acquisition house acquisition and only demolished only house demolished institutions Sample 20% 20% 20% 50% 100% proportion

Table 10 Sample number of baseline survey Project affected Sample household Enterprises Enterprises Sub-project Vulnerable Rural Vulnerable Rural area City and Shops City and Shops groups area groups institutions institutions Household Hh Number Number Hh Hh Hh Number Number Hh Nantaizi 0 0 1 0 0 0 0 1 0 0 Lake Dongxi Lake 5 0 0 0 0 1 0 0 0 0 Caidian 76 0 0 0 0 15 0 0 Three gates 80 10 2 0 0 16 2 1 0 0 connected Luojiagang 7 0 36 18 0 2 0 15 9 0 Yangsigang 43 23 2 1 0 9 5 1 0 0 Changqing 21 24 2 0 0 5 5 1 0 0 Pump station Total 232 57 43 19 0 48 12 19 9 0 Note: (1) There will be some change of what project affected along with the result of practical baseline survey. (2) This survey work has covered the rural area sample households. (3) The shops, enterprises and institutions baseline survey will be taken as long as the monitoring.

Table 11 Basic circumstances of rural area sample households

Item Dec 2007 Dec 2008 Dec 2009 Dec 2010 Survey households (households) 48 48 48 Family resident population (people) 185 184 186 Half the resident population in the entire 139 139 140 labor force (people) # On the business of the labor force 40 44 50 (people) 1.Agricultural labor (people) 79 77 75 2.Non-agricultural labor force (people) 61 62 66 Household average operating area of 2.00 2.00 2 arable land (mu) Household average production of the 7186.1 7541 8295.1 original value of fixed assets (yuan) Housing space per capita (sq m) 43.28 44.7 46 # Steel mixed area proportion (%) 80.59 85.3 86

Table 12 Per capita income constitution of rural sample households Unit: yuan

Item Dec 2007 Dec 2008 Dec 2009 Total revenue 6680.64 7607.15 8814 Ⅰ.Wage income 1666.97 2044.13 2548 1. Income received in non-business 280 organizations 146.16 200.9 2. Labor income received in the 677 local area 518.03 587.12 3. Income received from the 1599 out-of-town work 1002.8 1256.1 Ⅱ.Operating income of families 4705.23 5202.06 5855 1) Primary industry revenue 3734.83 4037.37 4445 1. Agricultural income 2591.72 2774.47 3026 2. Forestry income 22.82 25.67 29 3. Livestock income 510.22 587.77 689 4. Fisheries income 610.07 649.47 704 2) Second industry revenue 266.16 325.21 404 1. Industrial revenue 211.25 263.81 335 2. The construction industry 70 revenue 54.91 61.4 3) Third industry revenue 704.24 839.48 1017 1. Transport, transport and postal and telecommunications industry 580 revenue 348.27 446.12 2. Wholesale and retail trade, 301 catering revenue 267.95 281.45 3. Social services income 50.92 33.34 22 4. Cultural and educational health 48 industry revenue 7.73 19.09 5. Other operating income of 121 families 29.38 59.43 Ⅲ. Other non-productive revenue 308.44 360.95 430 1. Sent back from overseas 27.89 20.48 15 2. Gift income form rural outside 14 relatives and friends 3.44 6.79 3. Property income 122.51 145.68 176 4. Other income 154.6 188 232

Table 13 Consumer durables possession of samples households

Dec Dec Dec Dec Item Unit 2007 2008 2009 2010 Large furniture (Number) 185 185 185 Washing machines (Number) 48 48 48 Fans (Number) 134 134 134 Fridge (Number) 29 33 37 Air conditioners (Number) 47 47 47 Range hoods (Number) 48 48 48 Vacuum Cleaner (Number) 3 3 3 Microwave ovens (Number) 8 9 11 Water Heater (Number) 48 48 48 Bicycle (Number) 65 59 59 Motorcycle (Number) 40 40 40 Phone (Number) 37 39 41 Mobile Phone (Number) 55 64 74 Color TV (Number) 52 53 54 Black and white TV (Number) 7 7 7 Vidicon (Number) 1 1 1 Player (Number) 28 28 28 Video cassette (Number) 5 5 5 recorder Camera (Number) 2 3 5 Home computer (Number) 2 3 5 High-grade instruments (Number) 1 1 1

As is shown in the sample household survey, since the sample households are from suburb of Wuhan, the affected people's living standards are relatively higher. Land acquisition has little effect on them, and they can continue their original jobs.

The land acquisition has no impact on the Nantaizi Lake Industrial Co., Ltd Company’s operations, thus the affected workers are still working in the original unit, and their wage levels are not reduced. Meanwhile, the enterprise has put the land compensation into industrial development. Survey of the sample affected workers in Table 14.

Table 14 Affected employees' salary before and after land acquisition Unit: Yuan / month

Name professional 2007 2008 2009 2010 Li Wei Manager 2300 3900 4368 Chang Caixia Clerk 2300 4000 4480 Zhou Shunnian Assistant Manager 1500 2800 3136 xiao xi ping Deputy secretary of the 1500 2800 3136 Wang Sheng Clerk 500 8800 896 Wan Yuansheng Clerk 500 800 896 Zhang Yongxiang Assistant Manager 500 800 896 zhou Shunli 2500 4000 4480

Caidian wastewater project has acquired 120 acres of land from ShiYang Village, occupying a total area of 69.4 acres of contracted land, involving 84 farmers and including 50.6 acres of fish ponds, which are under direct management of village committee. The number of households affected by land acquisition is 84, consisting of 304 people, of which 238 are workers. 40 of the affected people are males aged 60 or females aged above 55, whereas 26 people are under the age of 17

30% of land compensation fee, amounting to 1.9987 million Yuan, is reserved for developing village's secondary and tertiary industries, addressing the issue of the production and living problem of the farmers whose land is requisitioned, and setting up public welfare. Shiyang Village sample household survey is in table 15.

Table 15 Caidian District Shi Yeung Village, sample household survey

Land Revenue Land Surplus Group Head Population before acquisition land 2007 2008 2009 2010 the land 5 Liu Jintao 3 3.4 2.76 0.64 2000022000 24000 5 Zhang Shihuo 5 3.47 3.47 0 2000023000 25000 3 Xiao Yuanfa 5 2.16 0.26 1.9 3000030000 32000 5 Xiao Shenglin 8 1.2 0.2 1 3000030000 32000 3 XIAO Shengming 6 2.08 0.31 1.77 3000030000 32000 3 Liu Fangxin 6 1.55 0.61 0.94 3000031000 34000 5 Xiao Lixia 5 1.52 0.88 0.64 3000030000 30000 5 Liu Xiaoxin 3 2.46 2.41 0.05 2000022000 24000 3 Liu Heping 4 2.26 2.26 0 2500025000 26000 3 Xiao Yuanlai 4 0.88 0.87 0.01 4000045000 47000 3 Lian LIzhen 5 2.56 1.6 0.96 3000030000 32000 3 Liu Xueqin 2 1.55 1.55 0 1000012000 13000 3 Zhang Shouli 5 2.8 1.4 1.4 2500027000 28000 3 XIAO Yuanzhao 9 2.96 1.18 1.78 4000042000 45000 3 Xiao Sheng Jian 4 1.2 1.12 0.08 2500025000 27000

As is shown in the Sample household survey, residents whose houses have been demolished has a stable living standard, and their Income levels have not been affected. Thanks to the years of economic development of Wuhan, an increase in income of the residents has been seen; with annual revenue growth of 10% to 15%.This increase was caused by economic development instead of the project, of course.

6 Land Acquisition and Resettlement Policies Adopted

6.1 Compensation Standard The arable land compensation standard was 8 to 10 times as the average annual output value of the former three years. The minimum average annual output value standards of the six types arable land were 1,800 yuan per mu, 1,200 yuan, 1,000 yuan, 900 yuan, 800 yuan, and 700 yuan respectively. The resettlement allowance was calculated in accordance with the agricultural population which needs to be resettled. The population was counted in line with the land expropriation amount divided by the land area per person before the land requisition. The minimum compensation standards of an agricultural population which needs to be resettled in the first, second, third, forth, fifth, sixth type area were 18,000 yuan, 10,000 yuan, 8,500 yuan and 7,600 yuan, 6,800 yuan and 6,000 yuan respectively.

The minimum land acquisition compensation standards of other no income land and other gainful land refer to the above standards.

Land compensation funds were paid to the rural collective economic organizations. If the rural collective economic organizations can not adjust quality and quantity comparative land to the peasants whose land were requisitioned, the land will be totally requisitioned. Meanwhile, if rural collective economic organizations dismiss the establishment, the land compensation should be fully used in the production and living settlement of the peasants whose land were requisitioned. Land compensation funds, deducting the part paid directly to the peasants, should be given to the rural collective economic organizations to specifically use in the social insurance of landless peasants’, development of secondary and third industries, settlement of the production and living problem of the land requisitioned peasants, and establishment of public welfare undertakings. The land compensation funds must be earmarked. The resettlement subsidy of the land compensation fund should identify its payment objects according to different resettlement approaches.

The compensation fees for attachments and young crops were paid to the owner according to the land acquisition registration and the criteria established in RPs. The compensation standard for young crops was shown in table 14. The land compensation standard was shown in table 15. The temporary land occupation compensation standard was shown in table 16. The RP standard was shown in table 17.

Table 16 Young Crops Compensation Standard Table 16-1: Vegetables

Compensation Standard Kind unit medium-ter note early end m Brinjaul fruitage yuan/mu 1000 810 720 Greenhouse Rhizome category yuan/mu 860 760 720 cultivation, Shelves vegetal yuan/mu 950 760 720 anti-season Rawless eat melons yuan/mu 1000 860 760 vegetables to Water vegetal yuan/mu 1000 900 760 improve the standard 20 Leafy yuan/mu 1000 percent.

Table 16-2 Cotton, Grain, Oil

Compensation Standard Kind unit medium-te note early end rm yuan/m Cotton 860 570 480 u yuan/m Grain 780 530 u yuan/m Oil 570 520 u Green yuan/m 430 240 480 manure u yuan/m Medicine Identified by the industry sector u

Table 16-3 Tea, Mulberry, Bamboo

3 to 6 years >7 Kind units new note years years Tea yuan/mu 3000 4500 6000

Mulberry yuan/tre 10 15 30 e < 20～30cm > 30cm 20cm yuan/tre Bamboo 10～ Perimeter of 1.2m high e 20～30 35 20 ground

Other yuan/mu 590 1500 Pricing by use purpose bamboo

Table 17 Land acquisition compensation standards unit: ten thousand yuan / mu

Sub-project Implementation Plan Implementation - Plan Nantaizi Lake 35.2 14.725 20.475 Caidian 9.6 9.6 0

Table 18 Temporary land occupation and young crops compensation standard Unit: yuan / mu

Three gates Sub-project Nantaizi Lake Caidian connection temporary land 18681 occupation on young crops 12000(um up) 1000 Simple bamboo 140 locums

Table 19 Young crops compensation standard of RPs unit: yuan / mu

Three gates Sub-project Nantaizi Lake Caidian connection Vegetables 890 1,000 890

6.2 Compensation Standard Comparison

Table 20 Wastewater project compensation standard

Item Units Nantaizi Lake water project Dongxi Lake Sewage project Caidian Sewage Project

RP Actual RP RP Actual RP Actual 1, land acquisition Paddy Yuan / mu 147250 352000 122375 96000 96000 Dryland Yuan / mu 147250 352000 96000 96000 Wasteland Yuan / mu 35340 352000 23040 96000 Ponds Yuan / mu 111910 352000 122375 72960 96000 Homestead Yuan / mu 35340 29370 23040 Enterprise Yuan / mu 2, temporary land use Vegetable Yuan / mu 11780 9790 7680 28116 Fry Yuan / mu 11780 9790 Dryland Yuan / mu 11780 9790 7680 Rural Road Yuan / mu 38 38 Enterprise organizations Yuan / mu Ditches, rivers Yuan / mu 11780 9790 7680 Urban Road Yuan / mu 3, removal House site location price Yuan / m 2 2230 2030 1230 Framework Yuan / m 2 830 830 830 Brick Yuan / m 2 570 690 570 570 Brick and wood Yuan / m 2 420 646 420 420 Wooden Yuan / m 2 Simple structure Yuan / m 2 340 340 340 340 340

Table 21 Stormwater project standard of compensation

Three gate Item Units Changqing Pump Station Yangsigang Luojiagnag connected RP Actual RP Actual RP Actual RP Actual 1, land acquisition Paddy Yuan / mu 122375 122375 267000--402633-404737 Dryland Yuan / mu 68530 68530 147250 160400 267000 Wasteland Yuan / mu 29370 29370 35340 38496 267000 Ponds Yuan / mu 93005 93005 111910 121904 267000 Homestead Yuan / mu 29370 29370 35340 38496 115038--267000 82000 Enterprise Yuan / mu 82270--186060 793730 （Farm） 2, temporary land use Vegetable Yuan / mu 9790 18000 Fry Yuan / mu 9790 18000 Dryland Yuan / mu 9790 18000 9790 18681 17670 Rural Road Yuan / mu 3249 Enterprise organizations Yuan / mu Ditches, rivers Yuan / mu Urban Road Yuan / mu 3, removal House site location price Yuan / m 2 1500 1500 2280 2557--36301920 Framework Yuan / m 2 830 830 830 830 Brick Yuan / m 2 570 639 570 570 520--628 570 Brick and wood Yuan / m 2 420 468 420 420 420 Wooden Yuan / m 2 Simple structure Yuan / m 2 340 340 340 340 340

6.3 Resettlement implemented by WuHan 6.3.1 Nantaizi Lake sub-project Wuhan City Drainage Development Co., Ltd. signed “The Lake Sewage Treatment Plant Expansion Project Phase II expansion project land acquisition agreement” with the Wuhan TaiZi Lake Industrial Co., Ltd. The project has acquired a total amount of 133.5 acres of land, pricing at 35200 yuan / acre. Compensation for land acquired is 469920000 Yuan. Currently Wuhan City Drainage Development Co., Ltd. has paid 264900000 Yuan to the TaiZi Lake Industrial Co., Ltd.

March 8, 2007 Wuhan Circle Lake Construction Co., Ltd has signed a lease agreement with Nantaizi Lake Industrial Co., Ltd. The agreement clearly stated that the rental was 400 yuan / acre / year. A total amount of 170 acres of land was leased, amounting to 68,000 yuan / year. Lease period is 5 years. Wuhan Urban Drainage Development Co., Ltd. with the Wuhan Construction Engineering Co., Ltd. signed a lake in Nantaizi sewage treatment plant expansion project within the adjunct land acquisition compensation agreements. Young crops compensation standard is 12000 yuan / acre, 180 acres of compensation total amounting to 2.16 million yuan. Within the acquisition range, valid construction area is amounting to 4650.39 square meters. After negotiating, compensation price of 4.35 million Yuan were agreed. This leads to the total of 6.51 million Yuan. The compensation fees have been paid in full.

According to the implementation result, the current practiced compensation standard is 50 percent higher than the original immigration plan. Demolition of housing area and the property rights of people has some great changes as well compared to the original plan. This change occurred is due to the fact that the implementation of the project is 2 years after the immigration plan drawn up.

Comment: The current land ownership belongs to Southern TaiZi Lake Industrial Co., Ltd. Wuhan Drainage Development Co., Ltd has signed compensation agreements with the Southern TaiZi Lake Industrial Co., Ltd. , and the agreements have been executed accordingly. At the meantime it has solved the lease agreement issue of Wuhan Circle lake Construction Engineering Co., Ltd.

During the process of solving land acquisition issues, on November 9th, 2007 Wuhan Hanyang district City People's Government held a conference and reached a consensus. In addition, they have also formed a meeting minutes, which built a solid groundwork for signing the compensation agreement. On November 12, 2007 in Wuhan Urban Drainage Development Co., Ltd held a conference to discuss issues on land acquisition, it has also implemented the corresponding compensation funds.

6.3.2 Nantaizi Lake Sewage Treatment Plant pipeline gathering systems On January 17, 2008, Hubei Province Development and Reform Commission approved Nantaizi Lake Sewage Treatment Plant Expansion Project (Phase II).

On September 5, 2008, Wuhan Urban Planning Administration Bureau approved the Nantaizi Lake sewage treatment plant the “Pipeline gathering and drainage system maintenance and construction plan”. The range is : (1) Si Ming Road: The road length of 728 meters, the red line width of 25 m; (2) 4 SiXin South road consists length of 234.5 meters, and red line width of 30 meters. (3) LianTongGang West Road has a length of 676.9 meters. The red line width is 20 meters. (4) MeiZi South Street, the road length is 676.9 meters; the red line width is 20 meters. (5) LianTongGang is 1084.6 meters long, the red line width is 30 m; (6) TaiZiHu North Road consists length of 4411 meters, the redline width is 40 meters in which beneath Jiangcheng Avenue it is widened to 55 meters.

The physical quantity of pipeline section of Nantaizi Lake project has not been investigated yet; the implementation proposal is being researched.

6.3.3 HuangPu Sewage Treatment Sub-project The purpose of Huangpu Wastewater Treatment Plant Phase II project is to rehabilitate the existing sewage treatment process, it will not converse new land. Huangpu road sub-project is currently undergoing preliminary design and preparation for examination. At present, the sub-project has completed the flood impact assessment. The report has been submitted to the Yangtze River Water Resources Commission and now is pending. The project does not involve land acquisition and resettlement. 6.4 Resettlement implementation of Wuhan City infrastructure Construction Engineering Co., Ltd On behalf of the owners, Wuhan city infrastructure construction engineering Co., Ltd is responsible for land acquisition and resettlement implementation during storm water sub-project. Wuhan Urban foreign investment Construction Project Management Office is responsible for the fund implementation of land acquisition and resettlement as well as inspects the resettlement quality. Changqing pumping station has been investigated currently.

6. 4.1 Three-gate connected Sub-project 6.4.1.1 Adopted Policy and Sample Survey of Line A The temporary occupied land in the first phase of this project belongs to Wuhan Wujiashan Taiwan Investment Zone, Jinyinhu Ecological Garden Management Committee and Wuhan Jinyinhu Ecological Business Town Management Committee. Temporary land occupation compensation for land ownerships has been paid according to the compensation norms of Wuhan [2005] 11th document. Compensation norms of temporary use of land were shown in table 22.

Table 22 Compensation of temporary use of land

Compensation Land Attachments Area Unit standards Compensation Compensation (mu) (Yuan/mu) (Yuan) (Yuan) Wujiashan Taiwan 86.98 18681 1624873.38 1592213.9 Investment Zone Jinyinhu Ecological 38.01 18681 710064.81 Garden Total 124．99 2334938.19 1592213.9

Since the ownership of the temporary land occupation belongs to the farm, the policy adopted here is the affected people returned the land to the farm first, and then the farm handed over the land to the project unit. Compensation standards for the affected were shown in table 23.

11 households out of 60 affected households by temporary land occupation were selected as sample households to be monitored. Affected sample households of temporary land occupation were shown in table 24.

Monitoring has been taken to the 4 households whose houses were demolished. The compensation details were shown in table 25.

According to the related land acquisition and resettlement policies of Wuhan and ADB, Wuhan Dongzheng Real Estate Appraisal Company Ltd. conducted the appraisal for the houses which need to be demolished.

Table 23 Compensation standards of temporary use of land for land ownerships

Compensation Item Unit Standards (Yuan) Vegetables mu 1000 Nursery mu 8000 Lotus root mu 1200 Other corp mu 1000 Tree Number 40 to 55

Table 24 Compensation for affected sample households of temporary land acquisition Unit: Yuan

Vegeta Lotus Other Attach Name Nursery Tree Total bles root corps ments Cai Guozhen 32000 32000 Huang Qingliang 120000 120000 Huang Chengzhi 2200 17628 385 4587 24800 Sun Decheng 2600 2600 Liu Baoxiang 3920 3920 Luo Mulan 3640 3640 Pan Cuijiao 3160 3160 Wang Jisheng 1400 1400 Li Aixia 500 500 Fang Zhiqiang 320 320 Tu Shiming 10090 980 11070

Table 25 Compensation for 4 houses-demolished sample households

Relocatin Subsidy Subsidy Floor g Compens for for Construction Building bonus Total Owner Space Price ation Relocatio temporary Area (m2) Structures (Yuan) (Yuan) (m2) (Yuan (Yuan) n location /m2) (Yuan) (Yuan) Brick and Yang Yunzhen 70.4 70.4 639 44985.6 600 844.8 5000 51430.4 concrete Bai Xuefei 72.4 72.4 468 Brick and wood 33883.2 600 868.8 5000 40352 Wang 657.5 657.5 657.5 468 Brick and wood 307710 Junhua, 506 336 336 Brick and wood 170016 Wang 506 600 14310 5000 512716 Zhiguo 29 29 29 520 Brick and wood 15080

425 425 425 468 Brick and wood 198900 Wang 718.4 718.4 294 Brick and wood 211209.6 473180. 718.4 600 15820.8 5000 Yinghuai 4 175 175 175 238 Simple houses 41650

6.4.1.2 Adopted Policy and Sample Survey of Line B (1) Adopted Policy and Sample Survey of Line B

Wuhan Urban Construction Utilization of Foreign Investment Project Management Office signed land compensation agreements and attachments compensation agreements with Wuhan Wujiashan Taiwan Investment Zone Jinyinhu Ecological Garden Management Committee on April 9, 2008 and May 2, 2008 respectively. A total amount of 81.01 mu farm land was acquisitioned and 87.95 mu temporary lands were occupied for Three Gates Connection Sub-project Line B. The compensation standard of temporary land occupation was 18,681 yuan/mu. Compensation standards for attachments were shown in table 26.

Table 26: Attachments Compensation Standards

Compensation Item Unit Number Standard Amount Fish ponds Mu 138.25 3500 483875 Vegetable land Mu 78.28 960 75148.8 Evergreen Trees 7808 60 468480 (middle) Evergreen (big) Trees 11960 80 956800 Fruit Trees Trees 3416 50 170800 Hedgerow M 331 35 11585 Wall Sq m 1416 47 66552 Well Number 16 840 13440 Safeguard Cubic meters 15.3 157 2402.1 Slope Gravel road Sq m 3480 38 132240 Floor Sq m 4498 11 49478 Total 2430800

Table 27: Attachments compensation of sample households

Compensatio Compensation Compensatio Name Area (sq m) n amount standards (yuan / m2) n time (yuan) Chen 507 140 70980 2008.4.8 Xiaofen Wang 1914 140 267960 2008.4.8 Zhifang Wang Zhimin 1550 140 217000 2008.4.8

The implementing agency has paid 7,800,068 yuan of land compensation to Wuhan Jingyin Lake International Golf Club. The agreement was signed on May 14, 2009. At present, construction is under way smoothly.

6.4.2 Changqing Pump Station Sub-project Wuhan Changqing pumping station has requisitioned 17.28 mu farms of Wuhan Dongxi Lake aquaculture farms. The comprehensive compensation standard is 186,060 yuan per mu, and the total amount of land acquisition compensation is 3,215,116 yuan.

Changqing Pump Station Phase II project land acquisition is 13.63 mu, and the land use right belongs to Wuhan Forestry Development Co., Ltd.

Changqing Pump Station Phase II project temporarily occupies a land area of 4.42 mu. The land compensation agreement was signed on May 27, 2009, the compensation standard is 82,270 yuan / mu, and the total compensation is 1,121,340 yuan. The compensation standard of temporary land occupation is 18,681 yuan / mu, and the total temporary compensation is 82,570 yuan, 600,000 yuan of which has already been paid. The duration of temporary land occupation is 3 years.

Wuhan Forestry Development Co., Ltd. has resettled the affected workers; they are still working in the original company and receive the payment, so that their living standard will not decrease. The construction is undergoing smoothly.

Comment: The land use right of Changqing Pump Station belongs to Wuhan Forestry Development Co., Ltd. The wage level of the affected workers was not influenced after the compensation in accordance with the policy. The compensation standard has been increased in comparison with the migration program.

6.4.3 Yangsigang Pump Station Sub-project The affected houses are the company's production of coal transport and storage of accessories and totally 40 people are working in the spot. After receiving the compensation, the company will arrange the plant and warehouse to other areas. The affected workers will still work in the original company, and the wage level will not decrease. Seven affected residents will be compensated by the company according to Wuhan house demolition compensation policy, and it is currently under consultation. The next monitoring will further monitor the situation of housing compensation and resettlement of the affected people.

6.5 Resettlement Implementation by DDSCWMDC Dongxi Lake District Subsidiary Company of Wuhan Municipal Drainage Company (DDSCWMDC) is the implementing unit of Dongxi Lake Wastewater Collect System Sub-project.

Transplanting prophase work for some trees has been well done, and preliminary statistic survey of land attachments has been conducted. The land acquisition and resettlement work has made progress compared to the No.4 resettlement report.

Three construction units are constructing now. The programming permit of Dongxi Lake Sub-Project’s pumping stations has been approved, and the land occupation is green space site.

Dongxi Lake District Government has conducted special research for the land acquisition effect of the east part of Wastewater Collect System on May 12, 2009.District Gardens Bureau is responsible for the overall coordination work of compensation for trees and gardens while District Municipal Investment Company is in charge of the payment of the compensation funds. The construction is currently progressing smoothly after the meeting.

Comment: The green space compensation of Dongxi Lake sub-project has gained great attention, and the work is proceeding smoothly.

6.6 Resettlement Implementation by CDSCWMDR Caidian District Subsidiary Company of Wuhan Municipal Drainage Company (CDSCWMDR) is responsible for the implementation of Caidian resettlement work. At

present, the procedures of land acquisition are being processed. Meanwhile, the pipeline disposal is being planed. There are 3 people engaged in this resettlement, who are experienced in land acquisition and resettlement.

A total area of 120 acres land of Shiyang village was requisitioned for Caidian WWTP Sub-project. The compensate standard is 96 thousand yuan per mu, and the total compensation fee is 11,520 thousand yuan. A total area of 69.4 mu contracted land was occupied, referring to 84 households. Among the 120 mu occupied land, 50.6 mu pond was managed by village committee directly. The compensation fee for the pond is not distributed to the villagers. 84 households, totally 304 people were affected, among which, , 238 were labor forces, and the number of male over 60 age and female over 55 age was 40, while that of the under 17 age was 26.

The compensate standard for the villagers’ 69.4 mu contracted land is 15.4 thousand yuan per mu, and a total amount of 1068.7 thousand yuan compensate fee was paid. As for the 50.6 mu pond which were not contracted, the compensation fee, accounting for 4857.6 thousand yuan, would be reserved to develop production by village committee.

In terms of the compensation fund for contracted land, 30% of it, accounting for 1,998.7 thousand yuan, was reserved by village collective to earmarkingly develop the secondary and tertiary industry, resolve the production and living problems of the land requisitioned peasants, and set up public welfare.

For the 238 affected labor forces preparing to buy social insurance to access to social insurance co-ordination, accords to the current standard of 15 thousand yuan per capita, a total amount of 3,570 thousand yuan is needed.

6.7 Resettlement Implementation by Hongshan District Key Project Rebuild Management Office Wuhan Foreign Investment for Urban Construction Project Management Office is the owner unit. Hongshan District Key Project Rebuild Management Office is responsible for the implementation of resettlement work. September 25, 2009, an agreement of acquisition of 1.4182 hectares land of Yuguang village (about 21.273 mu) has been achieved, including 0.8264 hectares of agricultural land and 0.5918 hectares of construction land. Compensation for agricultural land is 4,991 thousand yuan, construction land 1,021.192 thousand yuan and ground attachments 40.287 thousand yuan. The total compensation is 6,052.518 thousand yuan.

October 13, 2009, an agreement of acquisition of 0.3555 hectares land in Donghu village (about 5.3325 mu) has been achieved, including 0.1924 hectares of agricultural land and 0.1631 hectares of construction land. Compensation for agricultural land is 1,162 thousand yuan, construction land 281.44 thousand yuan and ground attachments 9.379 thousand yuan. The total compensation is 1,452.819 thousand yuan.

October 13, 2009, an agreement of acquisition of 79,282.21 m2 lands in Heping village (about 118.93 mu, including 18.68 mu of Heping Fisheries) has been achieved. The compensation rate is 267 thousand yuan/ mu, the total compensation is 31,754.31 thousand yuan.

Hongshan District Key Project Rebuild Management Office is responsible for the demolition work of Luojiagang sub-project. The land area has been measured by Wuhan Land & Housing Survey Center. Compensation for housing plot is 1920

yuan/m2. The assessment of compensation rate for housing is carried out by Boxing Assessment Company. Currently, the demolition in Heping village has been carried out with 27 protocols achieved. APs can buy the houses built by the villages committee after being compensated. The price is between 1500 yuan/m2 to 1600yuan/m2. APs get 700 yuan/m or 800 yuan/m as living subsidy. During the 1 month of demolition, 3 meetings have been held to publicize the policy of land acquisition and resettlement, which have a good effect upon the project implementation. The audience includes women and the old. The task of Land acquisition and resettlement of Luojiagang sub-project still needs more consideration.

Land acquisition protocal has been assigned on January 6, 2010. The total of land acquisition is 73.28 mu with a price of 30 yuan/mu. The total of compensation is 21.984million yuan.

Land acquisition and compensation is going on smoothly.

7 House Relocated

7.1 Urban House Relocation While issuing house relocation license, house relocation management authority should promulgate the remover, relocation scope, relocation period in the house relocation license in the form of house relocation announcement.

For house directly managed by relocation administration authority, houses of units and private houses (hereinafter briefly referred to as directly managed house, self-managed house and private house), relocation compensation and resettlement agreement should be signed by remover and relocation household. In case of monetary compensation, the agreement should specify compensation amount, payment methods and term, term of relocation, solutions to breach of the agreement, and other consents needed. In case of exchanging house property right, parties concerned should sign agreements on housing site, area, way of calculating price difference, etc.

Compensation should be paid to the relocation households according to the Regulation on the Dismantlement of Urban Houses and the Implementation Measures unless removers dismantle unlicensed buildings and temporary buildings that have passed the approval term. But appropriate compensation should be given integrating replacement price and use life of relocation house if temporary buildings are within the approval term.

The compensation for relocation shall mainly be monetary compensation or exchange of house property right. Unless otherwise specified, the relocation households may choose by themselves.

The amount of compensation should be determined by unit price (price of every square meter of building area, the same hereinafter) appraised by local real estate market and building area of relocation house.

The unit price appraisal of relocation house should be carried out by real estate appraisal institutes at the corresponding level according to location, usage, structure, newness rate.

Location of relocation house shall be determined according to the land level promulgated by the People’s Government of Wuhan City.

Removers should pay moving allowances to relocation households or leaseholders. During the transition period, removers should pay short-term relocation subsidies for relocation households or leaseholders who arrange dwellings for themselves, but no allowance shall be paid if they accept the houses for transition offered by removers. The transition period should not be more than two years.

For relocation houses were for business and production, the remover shall give compensation according to the following regulations: (i) Moving and installation fee calculated by commodity transport price and equipment installation fee regulated by the state and Wuhan City; (ii) Purchase price subtracted by depreciation price of equipment that can’t be used any more; (iii) If the relocation causes production or business suspension and exchange of house property right, six-month business compensation will be paid to personnel on the payroll directly engaged in production and business with relocation scope as per monthly average salary level in the previous year.

7.2 Collectively-owned land Acquisition and House Relocation For relocation of residential houses within the Middle Ring Line, the relocation household may choose from monetary compensation and exchange of house property right; provided with conditions and approved by laws, multi-storey buildings may be established by rural collective economic organizations; For the relocation households that really need housing site for agricultural production, and the per capita agricultural land of which reaches or exceeds per capita average of Wuhan City, if approval condition for housing site is conformed, they can apply for resettlement by housing site.

For relocation of residential houses outside the Middle Ring Line, the relocation household may choose from monetary compensation, exchange of house property right and establishment of additional housing site. If possible, rural economic collective can be arranged for group resettlement in the form of rural community.

The relocation household choosing monetary compensation should be paid for allowance. The allowance should be determined by replacement price of relocation house and location compensation price of housing site. The replacement price standard shall be established by price administration authority and real estate agency.

The location compensation price of housing site shall be determined by different locations. The locations of housing sites within the territory of Jiang’an, Jianghan, Qiaokou, Hanyang, Wuchang, Qingshan, Hongshan, Wuhan Economic & Technological Development Zone, Wuhan East Lake Hi-tech Development Zone are divided into three classes according to the overall urban planning of Wuhan City: the first class refers to the area within the Second Ring Road (inclusive); the second class refers to the area between the Second Ring Road and the Third Ring Road (Middle Ring Line); the third class refers to the area outside the Third Ring Road (Middle Ring Line). Detailed price compensation rate shall be established by price administration authority and land administration authority of Wuhan City.

The housing site location and compensation rate in districts of Dongxihu, Hannan, Caidian, Jiangxia, Xinzhou, Huangpi will be established by corresponding people’s government and approved by price administration authority and land administration authority of Wuhan City.

For relocation of residential houses, compensation will be paid to relocation household by one housing site for one household by the remover. The floor area and building area of relocation houses should be determined after approval. If the floor area is less than 60 square meters, and the relocation household has no other dwelling in Wuhan City, the floor area will be determined as 60 square meters.

7.3 Resettlement Methods Fit for This Component 7.3.1 House relocation on collectively-owned land The house relocation on collectively-owned land of the Component will offer two options for the affected persons, namely monetary replacement and material replacement.

The monetary compensation includes house relocation cost and housing site location compensation cost. The standard of house replacement cost is: CNY 830 per square meter for steel framework structure, CNY 570 per square meter for brick-concrete structures, CNY 420 per square meter for brick-wood structure, CNY 340 per square meter for other simple structure. The compensation price of housing site is the product of confirmed legal floor area and location price of housing site. The compensation price of housing site is determined by the second class that is the area between the Second Ring Road and the Third Ring Road (Middle Ring Line). The location compensation price is CNY 1,920 per square meter for second-class area.

For the households that will not select the monetary replacement, they can select the material replacement. A “one for one in housing area” house replacement policy will be implemented to the licensed houses. According to the regulations on house relocation on collectively-owned land of Wuhan City, the houses within the Middle Ring Line will be re-constructed collectively in the same villages.

Transition compensation for relocation will be paid to affected households according to actual transition period. For affected households who select cash compensation for resettlement, transition compensation will be paid in 2 months transition period.

7.3.2 Compensation for small businesses to be relocated

The policy on the compensation for small businesses includes: (i) compensation to house demolish according to standards for house relocation; (ii) compensation to business owners according to CNY 600 per square meter for their building area used for business; and (iii) compensation to moving and transition of business owners.

7.3.3 Compensation for unregistered houses During the survey, no unregistered houses and attachment buildings for living purposes was identified. In case unregistered houses and attachment buildings for living are identified during implementation it will be dealt in accordance with PRC regulations on compensation for unregistered houses and ADB's policy on Involuntary Resettlement (1995). The existing law mentions that village committees will identify and confirm whether affected houses and attachment buildings are registered or unregistered buildings according to relevant policies and regulations. The compensation policy for unregistered houses and attachment buildings include: • For houses built before December 31, 1986, the compensation standard is 95% of the compensation for registered houses in both replacement cost and relocation compensation. • For houses built between January 1, 1987 and December 31, 1998, the compensation standard is 85% of the compensation for registered houses in

both replacement cost and relocation compensation if house owners did not accept punishment from local land administrative departments. • For houses built between January 1, 1987 and December 31, 1998, the compensation standard is 90% of the compensation for registered houses in relocation compensation if house owners accepted punishment from local land administrative departments, and 90% of the compensation for registered houses in replacement cost if house owners accepted punishment from local municipal planning departments. • For houses built between January 1, 1999 and April 29, 2009, the compensation includes only replacement cost that is evaluated by independent house evaluation agencies, but no relocation compensation. For houses built after April 30, 2009, no compensation is disbursed as the cut off date for this project is established.

Survey shows that urban residents have received monetary compensation, and use the compensation fund to purchase new houses. Rural residents relocated according to the policy of the Housing Reconstruction of the Village. All residents affected by this project have moved into new houses.

8 The Infrastructure Rehabilitation

Three-gate connected sub-project affected 15-meter of Jinshan Avenue, it has been restored.

San Zha LianTong sub-projects affected 600 meters of the airport express roads, it has been restored.

9 resettlement compensation funds

As of June 30, 2010, wastewater subproject has paid a total sum of 53.511 million Yuan resettlement compensation, accounting for 64% of planned funds, whereas storm Water subproject has paid a total sum of 84.1722 million Yuan, accounting for 31.4% of planned funds. The project completed a total amount of 229.72508 million yuan of funds, accounting for 65.4% of planned funds. Project funds are shown in table 28 to table 30.

Table 28 Wastewater Project Resettlement Compensation Funds (By June 30, 2010) Unit：10,000 RMB Nantaizi Lake Huangpu Road Dongxi Lake Caidian Categories Real/ Real/ Real/ Real/ Plan Real Plan Real Plan Real Plan Real Plan Plan Plan Plan 1 Permanent land 2401.7 2649 110.3 0 0 0 322.2 0 0 1141.9 1152 100.9 acquisition 2 Temporary land 1551.5 0 0.0 0 0 0 416.8 0 0 573 97 16.9 occupation 3 House demolition 190.5 0 0.0 0 0 0 73.6 0 0 58.5 0 0.0 4 Units and shops 0 435 0 0 0 0 0 0 0 0 compensation 5 Young crops 10.7 216 2018.7 0 0 0 26.9 350 1301.1 11.5 0 0.0 6 Attachments 0 0 0 0 compensation 7 Subsidy for transition 2.3 0 0.0 0 0 0 0.2 0 0 1 0 0.0 8 Land acquisition 83.1 122.1 146.9 0 0 0 16.8 0 0 35.7 330 924.4 management fee 9 Special assistance fund 10 0 0.0 0 0 0 10 0 0 20 0 0.0 for vulnerable groups 10 Training fee 15 0 0.0 0 0 0 15 0 0 20 0 0.0 11 House demolition 0 0 0 appraisal fee 12 Management fee for resettlement and house 124.7 0 0.0 0 0 0 25.2 0 0 53.6 0 0.0 demolition 13 RPs compilation and 41.6 0 0.0 0 0 0 0 0 17.9 0 0.0 monitoring fee 8.4 14 Contingencies 623.5 0 0.0 0 0 0 126 0 0 268 0 0.0 Total 5054.6 3422.1 67.7 0 0 0 1041.1 350 33.62 2201.1 1579 71.7

Table 29 Stormwater Project Resettlement Compensation Funds （By June 30, 2010） Unit：10,000 RMB Three Gates Connection Changqing Sub-project Yangsigang Sub-project Luojiagang Sub-project

Real/ Real/ Real/ Real/ Categories Plan Real Plan Real Plan Real Plan Real Plan Plan Plan Plan 530.88 195.2 1 Permanent land acquisition 4706.7 2002.62 42.5 213.3 248.9 421.2 0 0 3137.4 6124.352 028 0 2 Temporary land occupation 9.8 744.9 7601.0 0 8.3 150.5 0 0 74 0 0 691.113 102.8 3 House demolition 186.4 1602.9 859.9 265.5 260.3 966.6 680.864 70.4 3611.3 3712.834 634 11557 4 Units and shops compensation 158.5 0.0 0 0 584.3 608.5 104.1 6430.7 0 0 5 Young crops 28 58 207.1 0.1 2.3 2300 0.2 0 34.3 0 3131.5 17.58 6 Attachments 35.7 612 1714.3 1.9 59.5 18.2 3.2 42.5 0 0 789 2418 7 Subsidy for transition 753.8 0.0 4.1 0 16.5 0 0 114.4 0 0 8 Land acquisition management 28.865 7.608 117.6 122.1 103.8 9.7 2.8 43.2 0 0 268.9 20.45925 fee 979 49758 9 Special assistance fund for 20 0 0.0 10 0 0 50 0 0 70 0 0 vulnerable groups 10 Training fee 8 0 0.0 7 0 0 15 0 0 20 0 0 11 House demolition appraisal fee 2 26.87 1343.5 2 0 0 8 0 0 44 0 12 Management fee for 2.3024 15.878 resettlement and house 176.4 0.0 14.5 64.7 0 0 403.5 4.6 1.140 48 952 demolition 13 RPs compilation and 58.8 0.0 4.8 0 0 21.6 0 0 134.4 0 0 monitoring fee 14 Contingencies 881.8 0.0 72.7 0 323.6 0 0 2016.7 0 1297.1 7143.5 5169.41 72.4 605.6 214.2 2683.6 1292.56 48.2 16402.1 9862.245 60.1 Total 96362

Table 30 Summary of Resettlement Compensation Funds （By June 30, 2010） Unit：10,000 RMB

Wastewater Component Storm Water Component Total Categories Plan Real Real/Plan Plan Real Real/PlanPlan Real Real/Plan 8657.853 12458.85 1 Permanent land acquisition 3865.8 3801 98 8478.6 102.1 12344.4 100.9 177 32 2 Temporary land occupation 2541.3 97 3.8 234.3 753.2 321.5 2775.6 850.2 30.6 6687.723 6687.723 3 House demolition 322.6 0 0 5029.8 133.0 5352.4 124.9 102 1 4 Units and shops compensation 0 435 7173.5 608.5 8.5 7173.5 1043.5 14.5 5 Young crops 49.1 566 1153 62.6 60.3 96.3 111.7 626.3 560.7 6 Attachments 0 0 98.3 674.7 686.4 98.3 674.7 686.4 7 Subsidy for transition 3.5 0 0 888.8 0 0.0 892.3 0 0 8 Land acquisition management 145.3592 597.4592 135.6 452.1 333.4 439.4 33.1 575 103.9 fee 5 5 9 Special assistance fund for 40 0 0 150 0 0.0 190 0 0 vulnerable groups 10 Training fee 50 0 0 50 0 0.0 100 0 0 11 House demolition appraisal 0 0 56 26.87 48.0 56 26.87 47.98 fee 12 Management fee for resettlement and house 203.5 0 0 659.1 6.9024481.0 862.6 6.902448 0.80 demolition 13 RPs compilation and 67.9 0 0 219.6 0 0.0 287.5 0 0 monitoring fee 14 Contingencies 1017.5 0 0 3294.8 0 0.0 4312.3 0 0 17621.40 22972.50 Total 8296.8 5351.1 64 26834.8 65.7 35131.6 65.4 798 8

10 Participation and information disclosure

The project emphasizes on information disclosure. Such as demolition site at Luojiagang, the demolition office disclosed all demolition policy; the relocated persons can calculate their compensation according to the policy, and Wuhan policy brochures are also distributed to the affected people.

11 Organization and Management

Wuhan City foreign investment Management Office responsible for the overall organization and management of land acquisition and resettlement, also they are responsible for implementing the resettlement plans. The organization and management measures are appropriate.

12 Project Performance Monitoring

Project Performance Monitoring frame has been established with the assistance of consulting team. Entrusted by WPMO, an independent resettlement monitoring team from Economic and Management College of Tongji University was selected to conduct the monitoring work and prepare project performance monitoring reports. Tongji University has submitted 7PPME reports including this one.

13 Conclusion and Suggestion

13.1 Conclusion (1) After the sixth monitoring and evaluation, land acquisition and resettlement has made comparatively large progress.

(2) Urban construction of Wuhan City attached great importance to the performance monitoring and evaluation work of this project through foreign capital project management office.

(3) Each sub-project has staffs specializing in land acquisition and resettlement.

(4)Compensation for Dongxi Lake sub-project temporary occupied land is progressing smoothly

(5) Land acquisition for Yangsigang sub-project has been carried out, and the project is implementing smoothly.

(6) Land acquisition survey for Luojiagang sub-project is under way with a heavy task.

(7) Along with the construction of Nantaizi Lake and Caidian WWTP, pipe network planning has been approved. The house demolition work has not been carried out yet.

(8) All the implemented compensation policy standards are in accordance with relevant policy standards of Wuhan City, and compensation fund was paid according to the standards.

(9)Sample survey shows the life quality of APs’ has not decreased.

(10)Demolition of Luojiagang sub-project is going on. More work to do to complete the

whole task at the end of this year. 13.2 Suggestion (1) Wuhan Urban Construction Utilization of Foreign Investment Project Management Office

Request each sub-project IA to strengthen the information management of land acquisition and resettlement, establish land acquisition and resettlement database and reinforce its document management capacity.

(2) Wuhan Municipal Drainage Company

Update the RP for Nantaizi Lake sub-project after the pipe network construction plan is presented, and implement the plan after being approved by ADB.

(3) Wuhan Jianxing Infrastructure Construction Company Improve the data quality in land acquisition and resettlement database, and its management level.

(4)Wuhan Hongshan District Key Project PMO

(a) Speed up the land acquisition and resettlement of Luojiagang sub-project, and make corresponding plans. The resettlement affects the speed of the whole project.

(b) Establish land acquisition and resettlement database, and improve its management level.

14 Appendix: Interview Record before This M&E

December 24, 2007 Wuhan Jinyinhu Ecotourism Development Co., Ltd. Peng Fubin

Our company has signed the agreement with Wuhan Urban Construction Utilization of Foreign Investment Project Management Office. Land which occupied by the project is temporary, it belongs to the farm. Land acquisition compensation standard is 18,681 yuan/mu. Compensation standards of land usufruct are: 1,500 yuan/mu for vegetable field (higher than policy standards 50 per cent), 3,500 yuan/mu for fish ponds. Land which occupied temporarily is managed by farm workers by contract. 60 households are affected by land acquisition; they all received the compensation according to the standard. Housing demolition area is 124.99 square meters, of which four are plants. There are 30 workers in the four factories. The four enterprises decide disposal manner by themselves after they received the compensation. If the farmers who lose their land are willing to work in Wuhan Jinyinhu Ecotourism Development Co., Ltd., they will be arranged to have jobs, such as yardman, dustman and etc., they will be paid more than 800 yuan every month. After affected households lose use right of land, part of endowment insurance and medical insurance will be paid by the company, and every people will receive 300 to 480 yuan / month income. Farm workers have their income sources; land income is a small part of total income. The affected people’ income will not be reduced after they receive the current land requisition compensation.

December 24, 2007 Xinqiao Village Huang Qingliang

Compensation standard for saplings is 8,000 yuan / mu, vegetable land is 1500 yuan / mu. We all signed the agreements after the land acquisition scope investigation. About 12 to 13 September (2007), land acquisition survey was done. My family has received total 120,000 yuan compensation fees. We have endowment insurance and income will not reduce. Now I plant the saplings in other village. My family has five people, three sets of housing. Living standard is higher than ever. I am satisfied with the land requisition compensation.

December 24, 2007 Xinqiao Village Huang Chengzhi

My family has received total 24,000 yuan compensation. There are three people in my family. We all have endowment insurance, have a worry-free life, but still continue to engage in the original work to getting the corresponding income. There are two sets of housing. I am satisfied with the land requisition compensation.

December 24, 2007 Xinqiao Village Cai Guozhen

Compensation of my family is 3,200 yuan, was received last week. There is no negative impact my family about the temporary land acquisition. I am satisfied with the land requisition compensation affirmatively. There are five people and two sets of housing of my family.

December 24, 2007 Xinqiao Village Luo Mulan (female)

Compensation of my family is 3,600 yuan, was received last week. Now the company pays me 300 yuan salary every month. I also work outside; earn 1,000 yuan income every month. Land requisition has not effect of our lives. My family has five people and two sets of housing.

December 24, 2007 Xinqiao Village Pan Cuijiao (female)

Compensation of my family is 3,100 yuan, was received last week. Now the company pays me 300 yuan salary every month. I also work outside, earn 1,000 yuan income every month. Land requisition has not effect of our lives. My family has five people and two sets of housing.

June 13, 2008 Wang Zhifang

Part of my family’s land was occupied by Three Gates Connection Sub-project. My family has signed the agreement with the related department and has received the compensation more than 400,000 yuan. Land requisition has not effect of our lives. The living condition is good enough.

June 13, 2008 Shen Jicheng

I have received the total compensation fees 50,000 yuan in the end of year 2007, Now I retired at how with 600 yuan pension per month. I am satisfied with my live, with land acquisition and compensation.

Time: December 25, 2007 Secretary of Shiyang Village Hu Xiaole

WWTP construction is a good thing, we should support it.

The Government has consulted with us for requisition our village’s land. 120 mu land will be requisitioned, third group and fifth group of our village are affected. 70 to 80 households are affected, the detail number can be known after the construction red line was determined, involving about 200 people. Our village is a outskirts one, fewer land and more people, less than 0.3 mu per capita. Agricultural production is not he main income source for the villagers. There are 150 graves within the scope of land requisition need be moved. Our village has specialized relocation of graves place.

There is no house demolition in the scope of land requisition.

Compensation for land requisition is according to relevant policies and regulations of Wuhan City and Hubei Province. We implement policies in the process of land requisition. The affected households get compensation mainly, and they can participate in endowment insurance. Our village has many employee opportunities. Our village has the experience that a highway construction site had requisitioned land. The living standard of affected people will not fall after they received reasonable compensation.

Our village has 926 people, divides into five villager groups. Villagers’ average income is 5,800 yuan per year. There are three private enterprises in our village. Many villagers of our village work in these enterprises, their income are 8000 to 10,000 yuan per year.

In order to make landless villagers find jobs, the District Labor Department organizes specialized training to enhance their employment capability.

Time: June 12, 2008 Secretary of Shiyang Village Hu Xiaole

10 mobilizing meetings were held for this project land acquisition. Now the policy implemented was the provincial government’s land requisition requirements. Land compensation standard is 96,000 yuan / mu. In which re-employment fees 13,600 yuan / mu and the Young crops compensation fees 1,000 yuan / mu was paid to the land contractor and the added value 800 yuan / mu compensation fees. Ground attachments compensation fees were paid to the property rights people. The fish pond in the scope of land requisition was managed by the collective, but it was belongs to the third group and fifth group in the history. Therefore, the village also paid 2,149 yuan/person to the whole group staffs who were the first round land contractors. The village is also preparing to transact the social insurance and other related matters according to the relevant provisions of the provincial government, to ensure the land requisition does not hurt the villagers’ production and daily life. Our Village is the suburban village, secondary and tertiary industries are flourishing. The villagers all have other jobs, their income levels have not been affected.

Time: June 12, 2008 Third Group Header of Shiyang Village Xiao Yuanfa

I am third group header. My family has 1 mu land before the land requisition, mainly of rice, about 500 kilograms productions, 800 yuan output value every year. The land

compensation standards are 13,600 yuan / mu, Young crops 1,000 yuan / mu, 2,149 yuan / person. We all have received the compensation fees. We had no less than 10 times collective discussion on compensation release standard. Now all the affected households have signed the corresponding agreement. The land requisition area and compensation fees of each household were shown in public. Compensation fees will be deposited into the accounts of all households. My family has three children. I often go out to work, about 4,000 yuan income per month.

Nov. 18 2008 Infrastructure Construction Offce of Wuhan Water Affairs Group Director Huang Wensheng

The land acquisition procedures of Nantaizi Lake Sub-project’s Pumping station are being transacting. The land compensate fund has been paid partially. Now the construction units work on the rails.

The matching pipe and pumping station’s land acquisition preliminary work was being done by Wuhan Drainage Company. Our construction units do not know the exact progress condition.

Nov. 19 2008 Prophase Manage Department of Wuhan Drainage Company Director Hu Ganxin

Nantaizi Lake Sub-project’s Pipe and Pumping station land acquisition plan has changed much compared to the original programming plan. The land acquisition procedures are being transacted by Wuhan Economic Development Zone now. Wuhan Drainage Company will start the pipe and pumping station construction after the related procedures were transacted.

Nov. 19 2008 Secretary of Shiyang Village Hu Xiaole

After introduced the use plan of the land compensate funds, Hu Xiaole said that the endowment insurance policy for the land-losing farmer was being constituted by Wuhan City Government. The village will transact the endowment insurance for the land-losing farmers after the policy was issued. We look forward to use the compensate funds for the affected villagers, make sure the production and living of the affected villagers does not affected

Nov. 19 2008 Zhang Shihuo

I am 64 years old. My family has 4 people. Now only 0.4 mu lands are left to grow some vegetable, and the living is depending on out work, not planting. I work as a safeguard in my relation’s factory. The base salary is 500 yuan per month; the bonus is 800 yuan per month. My son works in Caidian District. Family income is 30 thousand yuan per year. My family’ living does not affected by the land acquisition. I agree village collectivity use the land compensate funds to participate the endowment insurance.

Nov. 19 2008 Xiao Shunfa

My family has 4 people. There is little effect to my family’s production and living by the land acquisition. My daughter set up a little factory to knit sweater. The business is

quite well and machine was buy. Piecework plan management mode is adopted. The workers’ wage does not fixup, much affected by the market conditions. I agree village collectivity use the land compensate funds to participate the endowment insurance.

Nov. 22 2008 Zhou Liansheng

My family has 12 member, 4 houses. The area of each house is above 100 square meters. The mostly income is created by opening up wasteland and growing vegetable. No other income source.

Nov. 22 2008 Zhao Zhongying

My family migrated in here in 1985. My family has 5 members. 6 mu land was occupied for the project. I has received the compensate fees. Now my family has 4 mu lands for planting. My family’s living standard does not decease for the compensate fees received.

Jun. 22 2010 Demolition Office Dean

146 households with 584 people have been resettled, and the housing demolition area is 18371 m2 with a total compensation of 36.92million. Policies applied are in accordance with the resettlement planning policy. Compensation for the removal houses is according to the house rebuilt policy of village within the city. Houses are constructed by the village committee and sold to the APs with a price between 1600 yuan/m2 to 1800 yuan/m2. The market price of this kind of houses is between 2600 yuan/m2 to 2800 yuan/m2. Types of the resettle houses are 80m2, 90m2, 100m2, and 120m2.

APs are satisfied with the resettlement.

Demolition of Tuanjie village in Donghu sub-project has not yet been carried out. Houses of 40 households in Heping village have not removed. The land acquisition and house demolition should be completed more quickly.

Jun 22 2010 Yuan Yong

Demolition area of my house is 600m2, and the total compensation is over 1million yuan which is handed out 2 months ago. I have signed to receive the compensation. Currently, the resettle houses are being constructed, and my family is living in the relatives. The price of resettle houses is 1600 yuan/m2. We are satisfied with the compensation for resettlement.