Resettlement Plan

March 2020

People’s Republic of China: Jiangxi Pingxiang Integrated Rural-Urban Infrastructure Development Project— Lianhua Lianjiang River & Baima River Integrated Improvement Subproject

Prepared by the Lianhua Project Management Office and Pingxiang Project Management Office for the Asian Development Bank.

This resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature.

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.

Jiangxi Pingxiang Integrated Urban and Rural Infrastructure Improvement Project

Lianhua Lianjiang River & Baima River Integrated Improvement Subproject

Updated Resettlement Plan

Lianhua PMO

March 2020

Update Description The preliminary design 1 of Lianhua Lianjiang River & Baima River Integrated Improvement subproject (the Subproject) was finalized in June 2019. From June to August 2019, the Lianhua County PMO organized the departments of the Lianhua Real Estate Company, the affected town (township) governments, the affected village committees conducted DMS on land acquisition, housing demolition and resettlement. The updated RP is prepared on basis of preliminary design and resettlement DMS. This URP should be reviewed and implemented together with the RP that was approved in April 2015, https://www.adb.org/projects/documents/jiangxi-pingxiang-integrated-rural-urban-infrastruct ure-development-project-lianhua-rp. Sections in the agreed RP which do not require any changes or updating will not be repeated in this Updated Resettlement Plan. Resettlement funds management and complaint procedures are the same as the original RP. In general, the resettlement impacts were further minimized by optimization of project design. The final resettlement impacts included land acquisition and temporary land occupation and avoided house demolition. The comparison of the project description and resettlement impacts between resettlement plan (RP) and updated resettlement plan (URP) is summarized in Table 1 below.

1 In China, the resettlement detailed measurement survey will be carried out when preliminary design that determines the scope of the project is finalized.

Table 1 Comparison of Differences Between RP and Updates Updated No. RP Updated RP Differences contents A decrease of 3.47km of the integrated improvement The integrated improvement of the Lianjiang River. The improvement projects, of the Lianjiang River is include right bank of the upper Lianjiang River from The integrated improvement of the 16.79km long, including the Tangdu Bridge to the Dongmen Birdge, the left Lianjiang River is 13.32km long, 16.79km of river dredging, bank from new Furong bank to Dongmen Bridge, the including 13.32km of river dredging, 11.35km of new bank, new right bank from Dongmen Bridge to Nanmen Bridge, 11.243km of new bank, and 0.628km riverside roads and and right bank from the confluence of Manfang to the of new anti-flood wall. landscape planting on both Manfang Bridge as well. But the left bank from sides of the riverbank. Dongmen Bridge to Lianhuapi are not in the scope of Lianjiang River Project. The integrated improvement Project of the Baima River is 7.72km The integrated improvement of the 1 design/scope long, including 19.6km of Baima River is 7.72km long, including A decrease of 11.88km of river dredging since the river dredging, 32.98km of 7.72km of river dredging, 9.426km of stretch (from the confluence of Maojia Bridge to the new bank, new riverside new bank, 0.784m of new masonry Manfang Bridge) in Baima River project has been roads and landscape planting stone retaining wall, and 0.985 km of finished through the use of domestic funds. on both sides of the new reinforced concrete retaining wall. riverbank. Sewage treatment project of The sewage treatment project of Lianhua County was / Lianhua County. cancelled. Lianxin Eco-conservation Island, Binhe Binhe Wetland of Lianjiang River (including extended Wetland of Lianjiang River (including Lianhua Wetland Park. segment), and Hekou wetland of Baima River were extended segment), and Hekou included as a new component in the project scope. wetland of Baima River. Due to the new Binhe Wetland of Lianjiang River 101.95 mu of collective land; (including extended segment), and Hekou wetland of 232 mu of temporary land 237.98 mu of collective land; 247 mu of Baima River, there is an increase of 136.03 mu of 2 LA influence occupation; 1.36 mu of temporary land occupation. collective land acquisition and 15 mu of temporary permanent occupation of land occupation; but a decrease of 1.36 mu of state-owned land. state-owned land. 1,726.87 ㎡ of rural 3 HD influence 0 ㎡ of rural residential HD A decrease of 1,726.87 ㎡ of rural residential HD residential HD

Updated No. RP Updated RP Differences contents “The Notice of Jiangxi Province Government on Adjustment of the Uniform AAOV Rates and The compensation standard The compensation standard for Integrated Land Section Price for Land for farmland is 35706 Compensation farmland is 38185 yuan/mu, for dry Compensation” (JPG[2015] No.81), and reference of 4 yuan/mu, for dry land is standard for LA land is 25,584 yuan/mu in Qinting the compensation standards for land acquisition of 23923 yuan/mu in Qinting Town. similar projects in nearby area, an increase of 2479 Town. yuan/mu for farmland compensation and that of 1661 yuan/mu for dry land compensation. The compensation standard for house with steel-concrete structure is 800 yuan/㎡, for house with brick-concrete structure is 700 yuan/㎡, for Compensation house with brick-wood 5 Not involving HD. Not involving HD standard for HD structure is 600 yuan/㎡, for house with civil structure is 400 yuan/㎡, for house with simple structure is 300 yuan/ ㎡, for lumber room is 225 yuan/㎡. Job guidance, skill training, Livelihood Job guidance, skill training, planting planting structure adjustment, 6 restoration structure adjustment, and LLFs’ social No change and LLFs’ social security measures security resettlement. resettlement. Complete monetary compensation. There are two compensation ways, one is monetary compensation for HD housing and new house site 7 resettlement Not involving HD provided by government in plan local village; and the other is cash compensation for housing and new houses are built by the AHs.

Updated No. RP Updated RP Differences contents resettlement 8 10.6042 million yuan 28.1416 million yuan An increase of 17.5374 million yuan. cost Implementation The schedule of implementation has changed due to 9 June 2015 to December 2017 February 2020 to December 2021 schedule delays in finalization of preliminary designs.

Contents

1 EXECUTIVE SUMMARY ...... 1

1.1 BACKGROUND AND RP UPDATING ...... 1 1.2 SUBPROJECT DESCRIPTION ...... 1 1.3 METHODOLOGY ...... 2 1.4 LAND ACQUISITION AND RESETTLEMENT IMPACTS ...... 2 1.5 POLICY FRAMEWORK AND ENTITLEMENTS...... 3 1.6 RESETTLEMENT COMPENSATION AND INCOME RESTORATION ...... 3 1.7 IMPACTS ON VULNERABLE GROUPS AND WOMEN...... 3 1.8 PUBLIC PARTICIPATION AND INFORMATION DISCLOSURE...... 4 1.9 ORGANIZATIONS AND INSTITUTIONS...... 4 1.10 MONITORING AND EVALUATION...... 4 1.11 RESETTLEMENT COSTS AND RESETTLEMENT IMPLEMENTATION TIMETABLE...... 54

2 PROJECT RESETTLEMENT IMPACTS ...... 6

2.1 LAND ACQUISITION ...... 76 2.1.1 Acquisition of Collective Land ...... 76 2.1.2 Permanent Occupation of State-owned Land ...... 1110 2.1.3 Temporary Land Occupation ...... 1110 2.2 AFFECTED INFRASTRUCTURE AND LAND ATTACHMENTS ...... 1110 2.3 HOUSING DEMOLITION ...... 1110 2.4 AFFECTED PERSONS AND VULNERABLE GROUPS ...... 1110

3 SOCIO-ECONOMIC PROFILE ...... 1312

3.1 SOCIO-ECONOMIC CHARACTERISTICS OF AFFECTED HOUSEHOLDS ...... 1312 3.1.1 Sampling Profile ...... 1312 3.1.2 Analysis on Sample Survey ...... 1312 3.1.3 VGs survey ...... 1514

4 RESETTLEMENT POLICIES AND COMPENSATION STANDARDS ...... 1615

4.1 COMPENSATION STANDARDS ...... 1615 4.1.1 Compensation Standards for Collective Land...... 1615 4.1.2 Compensation Standards for Green Crops ...... 1615 4.1.3 Changes of Relevant Standards of Taxes ...... 1716 4.1.4 Compensation Standards for Temporary Land Occupation ...... 1716 4.2 RESETTLEMENT POLICIES ...... 1716 4.2.1 LLF’s Endowment Insurance ...... 1716 4.2.2 Vulnerable Groups ...... 1817 4.2.3 Supporting Measures for Women ...... 2217 4.2.4 Compensation Qualifications and Cut-off Date of Compensation ...... 2218 4.2.5 Entitlement matrix...... 2218

5 PUBLIC PARTICIPATION AND INFORMATION DISCLOSURE ...... 2521

5.1 PUBLIC PARTICIPATION DURING RP UPDATING ...... 2521

5.2 PUBLIC PARTICIPATION AT THE IMPLEMENTATION STAGE ...... 2824

6 RESTORATION PROGRAM FOR THE AFFECTED FARMERS’ LIVING STANDARD ...... 3026

6.1 ANALYSIS OF IMPACT ON ACQUISITION OF COLLECTIVE LAND ...... 3026 6.2 INCOME RESTORATION PLAN FOR GENERALLY AFFECTED VILLAGE GROUPS...... 3228 6.2.1 Monetary Compensation and Distribution ...... 3228 6.2.2 Agricultural Resettlement Measures ...... 3228 6.2.3 Employment Resettlement Measures ...... 3329 6.2.4 LLF’s Endowment Insurance ...... 3430 6.3 RESTORATION PLAN FOR THE SERIOUSLY AFFECTED VILLAGE GROUPS ...... ERROR! BOOKMARK NOT DEFINED.30

7 BUDGET AND MANAGEMENT OF RESETTLEMENT COSTS ...... 3531

7.1 RESETTLEMENT COSTS ...... 3531 7.2 RESETTLEMENT BUDGET ...... 3531 7.3 UTILIZATION PLAN OF RESETTLEMENT COSTS ...... 3733

8 RESETTLEMENT ORGANIZATION ...... 3834

9 GRIEVANCE AND APPEAL ...... 3834

10 RESETTLEMENT IMPLEMENTATION...... 3935

11 MONITORING AND EVALUATION ...... 4137

11.1 INTERNAL MONITORING ...... 4137 11.2 EXTERNAL MONITORING ...... 4137

APPENDIX 1 DUE DILIGENCE OF CHANGES OF LAND ACQUISITION AND HOUSING DEMOLITION ...... 4238

Table List

TABLE 1 COMPARISON OF DIFFERENCES BETWEEN RP AND UPDATES ...... 4 TABLE 2-1 RESETTLEMENT IMPACT SCOPE OF THE SUBPROJECT ...... 6 TABLE 2-2 COMPARISON OF LAND ACQUISITION BETWEEN RP AND URP ...... 7 TABLE 2-3 IMPACT ON ACQUISITION OF COLLECTIVE-OWNED LAND BY VILLAGE ...... 109 TABLE 2-4 DETAIL IMPACT ON ACQUISITION OF COLLECTIVE LAND ...... 109 TABLE 2-5 TEMPORARY LAND OCCUPATION OF THE LIANHUA PROJECT ...... 1110 TABLE 2-6 AFFECTED VGS ...... 11 TABLE 3-1 SOCIO-ECONOMIC PROFILE OF THE AFFECTED VILLAGES ...... 1312 TABLE 3-2 AGE STRUCTURE OF SAMPLE POPULATION ...... 1312 TABLE 3-3 EDUCATION STRUCTURE OF SAMPLE POPULATION ...... 1413 TABLE 3-4 SAMPLE HOUSEHOLDS’ INCOMES AND RESOURCES ...... 1413 TABLE 3-5 EXPENDITURE STRUCTURE OF SAMPLE HOUSEHOLDS ...... 1413 TABLE 3-6 SAMPLE HOUSEHOLDS’ ASSET OWNERSHIP ...... 1413 TABLE 3-7 VGS LAND LOSS ...... 1514 TABLE 4-1 COMPENSATION STANDARDS FOR THE ACQUISITION OF COLLECTIVE LAND ...... 1615 TABLE 4-2 COMPENSATION STANDARDS FOR GREEN CROPS ON THE GROUND ...... 1615 TABLE 4-3 COMPENSATION STANDARDS FOR RELEVANT TAXES ...... 1716 TABLE 4-4 ENTITLEMENT MATRIX ...... 2319 TABLE 5-1 RESETTLEMENT INFORMATION DISCLOSURE AND MAIN CONSULTATION ACTIVITIES ...... 2622 TABLE 5-2 PUBLIC PARTICIPATION PLAN ...... 2925 TABLE 6-1 ANALYSIS OF IMPACT ON COLLECTIVE LAND ACQUISITION...... 3127 TABLE 6-2 ANALYSIS OF LAND LOSS RATE ...... 3228 TABLE 6-3 RESETTLEMENT OF THE AFFECTED LLFS’ SOCIAL INSURANCE ...... ERROR! BOOKMARK NOT DEFINED.30 TABLE 6-4 PLANTING ADJUSTMENT AND INCOME PLANING OF THE 2ND GROUP OF SHUGUANG VILLAGE ..... ERROR! BOOKMARK NOT DEFINED.30 TABLE 6-5 INCOME RESTORATION OF THE 2ND GROUP OF SHUGUANG VILLAGE ...... ERROR! BOOKMARK NOT DEFINED.30 TABLE 6-6 EXPECTED INCOME RESTORATION OF THE 2ND GROUP OF SHUGUANG VILLAGE ...... ERROR! BOOKMARK NOT DEFINED.30 TABLE 7-1 BUDGET FOR RESETTLEMENT COSTS ...... 3632 TABLE 7-2 ANNUAL INVESTMENT PLAN ...... 3733 TABLE 9-1 ACCEPTING AGENCIES AND STAFF OF GRIEVANCES AND APPEALS ...... 3834 TABLE 10-1 SCHEDULE OF RESETTLEMENT IMPLEMENTATION ...... 3935 TABLE 11-1 TIMETABLE FOR SUBMISSION OF EXTERNAL MONITORING REPORTS ...... 4137

Figure List

FIGURE 1-1 SCHEMATIC MAP OF LIANJIANG RIVER & BAIMA RIVER INTEGRATED IMPROVEMENT COMPONENT ...... 2 FIGURE 5-1 CONFIRMATION OF RESETTLEMENT SCOPE...... 2723 FIGURE 5-2 SURVEY OF LA ...... 2723 FIGURE 5-3 SOCIO-ECONOMY SURVEY AND CONSULTATION ...... 2723 FIGURE 5-4 SAMPLE SURVEY OF AHS ...... 2723

1 Executive Summary

1.1 Background and need for RP update The Lianhua Lianjiang River & Baima River Integrated Improvement Subproject (the Subproject) is located at Lianhua County in Pingxiang City, Jiangxi Province. The main construction contents of the Lianhua Project include river dredging, building new river embankment, protecting the mountain slope of dangerous section and urban section, constructing waterlogged farmland, improving landscape, wetland park and bank, etc. In April 2015, ADB approved the draft RP. According to the draft RP, the land acquisition and resettlement are mainly caused by the Lianjiang River & Baima River Improvement Component. According to the requirements of ADB, (i) the draft RP will be updated in accordance with the finalization of designs and the Detailed Measurement surveys (DMS), and (ii) the updated RP should be approved by ADB before awarding civil works contracts for the Subproject. The Lianhua County PMO is responsible for the implementation of the Lianhua Lianjiang River & Baima River Integrated Improvement Project. From June 2019, Jiangxi Academy of Social Science (JASS) carried out a field survey and resettlement update according to preliminary design of the Subproject. The sewage treatment component of Lianhua County, mainly pipeline network installation, has been cancelled. So, the updated RP only involves the RP updates of Lianjiang River & Baima River Integrated Improvement component in the Jiangxi Pingxiang Integrated Urban-Rural Infrastructure Development Subproject. For those components which have been dropped out from consideration under ADB loan and have been already implemented from domestic funds, a due diligence of the land acquisition and resettlement actions for those components have been carried out to assess compliance with China’s laws and regulations and ADB safeguard policies. See details in Appendix 1. 1.2 Subproject Description According to the project preliminary design, the components of the Subproject are as follows: (1) The integrated improvement of the Lianjiang River is 13.32km long, including 13.32km of river dredging, 11.243km of new bank, and 0.628km of new anti-flood wall. There are 2 new diplopore pilotage culverts with 3.0m×2.0m, 5 new single-hole drainage culverts with 3.0m×2.0m, 2 new single-hole drainage culverts with 2.5m×2.0m; 17 new self-draining culvers in Φ1.0, and 1 new hydraulic dam. (2) The integrated improvement of the Baima River is 7.72km long, including 7.72km of river dredging, 9.426km of new bank, 0.784km of new masonry stone retaining wall, and 0.985km of new reinforced concrete retaining wall. The retention segment of the river is 1.229km (partial renovation). There are 11 new self-draining culverts in Φ1.0, 4 new single-hole pilotage culverts with 3.0m×2.0m, and 1 new diplopore drainage culvert with 3.0m×2.0m. (3) There are three pieces of wetland along on both sides of the Lianjiang River from

1 north to south consist of three sections, including Lianxin Eco-conservation Island, Binhe Wetland of Lianjiang River (including extended segment), and Hekou wetland of Baima River. The construction contents of the wetland mainly include ecological restoration, wetland greening, and wetland supporting facilities, etc.

Upstream of Liangjiang

Baima River

Downstream of Liangjiang River

Figure 1-1 Schematic Map of Lianjiang River & Baima River Integrated Improvement Component 1.3 Methodology The methods for updating RP include site visits, resettlement impacts survey, government departments review and interview with affected households and related stakeholders. In order to ensure successful ADB’s approval of contracts and resettlement implementation, the Lianhua PMO organized and carried out a survey of affected area. the detailed measurement survey was conducted by the joint team which consists of Lianhua PMO, Lianhua Land and Resource Bureau/Demolition Office, relevant Pingxiang/Lianhua departments, project design agency, Qinting Town Government, and relevant village committees. The investigators used a topographic map of 1:1000 and carried out an overall socioeconomic survey of the impacts of the Subproject according to the scope that was determined by project preliminary design. From June to September 2019, the staff carried out resettlement DMS of the Subproject. In addition, socioeconomic profiles of project affected area were surveyed and consultations were held with AHs and relevant stakeholders. 1.4 Land acquisition and Resettlement Impacts In terms of preliminary design and DMS, the Subproject will involve land acquisition and temporary land occupation and not involve house demolition. The land acquisition and resettlement will affect one town, three administrative villages/residents’ committees, 10 village groups. Because the subproject was optimized and

2 some project contents that were proposed in feasibility study report have been completed by domestic funds, the permanent land acquisition of the subproject is 237.98 mu, which are all of collective owned land. A total of 66 households with 267 persons will be affected by land acquisition. The project will not involve house demolition. The temporary land occupation is 247 mu, which are all of collective owned land; and 11 households with 49 persons will be affected temporarily. Compared with the original RP, collective land acquisition is increased by 136.03 mu and temporary land occupation is increased by 15mu; state-owned land is decreased by 1.35mu; house demolition is totally avoided, decreasing 1,726.87 ㎡ of rural house demolition. 1.5 Policy Framework and Entitlements The policy framework and entitlements in the resettlement plan was prepared in compliance with China’s laws and regulations and ADB’s policies which include “The Law of Administration of the PRC” (2004), “Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration” (SC [2004] No.28), related policies of Jiangxi Province, “The Notice of Jiangxi Province Government on Adjustment of the Uniform AAOV Rates and Integrated Land Section Price for Land Compensation ”(JPG[2015] No.81), and “Safeguard Policy Statement of ADB” (2009). The updated RP adopts the same entitlement provisions as in the draft RP and the compensation standards have been updated to reflect the current valuation. 1.6 Resettlement Compensation and Income Restoration The compensation fees for collective LA include land compensation fee, resettlement subsidy and green crops fee. In Qinting Town which is affected by the Subproject, the compensation fees of LA for paddy field, paddy vegetable plot, high-yield orchard, artificial high-yield oil tea garden, fishpond are 38,185 yuan/mu; for dry land, dry land tea garden, homestead are 25,584 yuan/mu; for woodland is 13,365 yuan/mu. The compensation for green crops in paddy field, vegetable plot, garden is 2,250 yuan/mu; and for green crops in dry land is 1,513 yuan/mu. The compensation for temporary land occupation is 3,000 yuan/mu·year. The income restoration measures of resettlement include cash compensation, plantation structure adjustment, skill trainings, priority in employment of the subproject, etc. Since the permanent land acquisition is caused by riverbank construction, the impacts of the subproject are linear. Based on statistical analysis, although the quantity of LA is relatively large, the land is scattered at village and household levels. So the LA of the subproject has minor impacts on most rural households’ agricultural production and the loss due to LA could be offset by cash compensation. The income and livelihood of affected households will only be affected slightly. 1.7 Impacts on Vulnerable Groups and Women According to the investigation, 14 households with 22 persons were identified as vulnerable groups, including one household with one disable person, one household with one person enjoying the five guarantees systems, one women-headed household with 3 persons, and 10 low-income families with 17 persons.

3 139 women will be affected by the subproject, accounting for 44.1% of total affected persons. They have same rights with men including the rights to know, participation and fair sharing compensation. According to women’s desires, they will have priorities in opportunities of non-skill employment during the implementation and operation of the subproject. In addition, women will have the same wages with men if they do the same work, and child labor is prohibited. The affected female forces will have priorities in skill trainings in order to ensure their economic status and income will not affected by the subproject. The Subproject will provide skills trainings of 800 person-times, and the training for women will not be less than 400 person-times (50%). The special FGDs for women will be held to introduce resettlement policies and improve their awareness during the implementation of the subproject. 1.8 Public Participation and Information Disclosure During the updating of RP, a series of participations and consultations, including questionnaire surveys, focus group discussion, key informant interview, in-depth interview with affected representatives, have been conducted to promote the APs’ participation. A series of public participation activities will still be implemented during the implementation of RP in the future. The resettlement information booklets will be handed out to the affected households in March 2020 before the updated RP is approved. A grievance redress mechanism (GRM) has been established and disclosed to affected households in project area in June 2019 when resettlement DMS was carried out which is same to that in original RP. 1.9 Organizations and Institutions The organizations of the Subproject include ADB leading group, Lianhua PMO, Lianhua Land and Resources Bureau, Qinting town government, village (residents’) committees, resettlement external monitoring agency. And the sufficient staff and necessary office facilities are put in place for the subproject. 1.10 Monitoring and Evaluation In order to ensuring a successful implementation of RP, the internal monitoring and external monitoring of resettlement implementation will be carried out. The internal monitoring agencies (Lianhua PMO with inputs from other departments such as Land and Resources Bureau) will provide a monitoring report every half a year to Pingxiang PMO, and then to ADB during the period of resettlement implementation. Nanchang Zhongrui Modernist Consulting Co., Ltd. (hereinafter, “Zhongrui”) is the external resettlement and social M&E consulting agency of the Jiangxi Pingxiang Integrated Rural-Urban Infrastructure Development Project (Contract CS2). Zhongrui entered into a contract with the Pingxiang PMO in April 2018 and will provide consulting services for the Project according to the terms of reference and the contract at the implementation stage. The external monitoring reports shall be prepared on semi-annual basis during the implementation of resettlement plan provisions including the implementation of the livelihood restoration program. A resettlement completion report will be prepared after 12 months of the completion of the land acquisition, compensation and resettlement activities. These reports will be submitted to ADB for review and disclosed subsequently on ADB website.

4 1.11 Resettlement Costs and Resettlement Implementation Timetable. All costs incurred during LA and resettlement will be included in the resettlement budget of the Subproject. Based on prices in 2019, the budget for implementation of the resettlement provisions of the subproject is 28,141,655.1 yuan. The implementation of LAR of the subproject will be from April to December 2020, and then another one year to December 2021 to complete livelihood restoration measures.

5 2 Project Resettlement Impacts

2.1 Principles and Measures to Reduce Resettlement Resettlement impacts have been minimized at the design stage on the following principles:  Avoiding or minimizing occupation of existing and planned residential areas;  Avoiding or minimizing occupation of high-quality farmland;  Gaining access to the proposed construction sites through existing state and local roads;  Avoiding or minimizing occupation of environmentally sensitive areas; At the planning and design stages, the design agency and the owner took the following effective measures in order to reduce the local socioeconomic impacts of the Subproject: A) The design was optimized at the planning stage:  The natural form of the river should be maintained where possible, and only irrational segments adjusted locally.  The embankments should be aligned with the existing shorelines naturally where possible; the normal operation of riverside structures or facilities should not be affected; farmland and house occupation should be minimized to facilitate flood control and project management.  The shorelines should not occupy the waterway, and the existing flood channels should be maintained properly.  The existing structures should be retained or reinforced where possible; any structure that has to be demolished and rebuilt should be rebuilt at or close to the former site.  The shorelines should be roughly parallel with the flood flow direction to facilitate flood discharge.  The river rehabilitation program should be based on the technical and economic comparison of revetment structure and dredging measures.  The cross-sectional design, slopes and revetments should be safe, ecological and natural. B) At the DMS and RP preparation, when LA is unavoidable, the following measures were taken to reduce resettlement impacts:  1) Strengthen the collection of basic information, make an in-depth analysis of the local present socioeconomic conditions and future prospect, and develop a feasible RP based on the local practical conditions to ensure that the APs will not suffer losses due to the Subproject.  2) Encourage public participation actively to ensure the plan implementable.

2.2 Resettlement Impact Scope In terms of preliminary design and DMS, the Subproject will only involve land acquisition and temporary land occupation and won’t involve house demolition. The rural LA of the subproject will affect one township, three administrative villages (residents’ committees), 10 village groups. There are small changes in the affected townships and village (residents’) committees and small adjustments of village (groups) compared with the original RP. The comparisons are detailed in Table 2-1. Table 2-1 Resettlement Impacts Scope of the subproject Affected Project Affected Affected village (group) village/residents’ name township committee Before update After update Lianhua Qinting Jinjia Village The 2nd and 3rd group The 2nd and 7th group

6 Affected Affected village (group) Project Affected village/residents’ name township committee Before update After update Lianjiang Town Xiameizhou Village The 2nd group No impact River & Liumo Village The 3rd and 5th group No impact Baima The 1st, 2nd, 4th and 5th The 1st, 2nd, 7th and River Shuguang Village group 8th group Integrated rd Improvem Yangjian Village The 3 group No impact th ent Nanmeng Village The 4 group No impact st component Xibian Village The 1 group No impact Lianhua Village The 2nd and 3rd group No impact Fu Village The 2nd group No impact Bailing Village The 3rd group No impact Xietian Village The 1st and 2nd group No impact Baima Village The 2nd, 3rd and 4th group No impact The 3rd, 4th 6th and 7th The 3rd, 4th, 6th and Huatang Village group 7th group Xiafang Village The 2nd group No impact Wanxi Village The 1st group No impact Tianxi Village The 1st and 2nd group No impact Xietian Village The 1st group No impact Liangfang Meizhou Village The 2nd group No impact Town Tangdu Village The 5th group No impact Taiyuan Village The 3rd group No impact Huayuan Village The 4th group No impact Shijiang Village The 2nd and 5th group No impact Shengfang Shengfang Village The 3rd, 4th and 6th group No impact Town -- -- No impact Lianhua County Liangzhong Farm No impact 2.3 Land Acquisition 2.3.1 Acquisition of Collective Land A total of 237.98 mu collective-owned land will be acquired by the subproject which an increase of 136.03 mu of acquisition of collective-owned land compared with the 101.95 mu of the original RP, of which, 142.84 mu is of paddy land (accounting for 60.02%), 33.43 mu of dry land (accounting for 14.05%), and 61.71 mu of woodland (accounting for 25.93%). The comparison of collective land of every affected village groups is shown in Table 2-2. According to the survey, the impacts on collective land, population and households of every village group by the subproject are shown in Table 2-3. Totally, 66 HHs with 267 persons will be affected. No ethnic groups will be affected.

Table 2-2 Comparison of Land Acquisition between RP and URP Unit: mu Acquisition of Collective Village RP vs. land The Subproject Township Village Subtotal group URP Paddy Dry Woodland land land Original 1.24 0.25 0 1.49 Lianjiang River The 2nd Updated 1.20 0.2 0 1.4 Integrated group Improvement Change2 -0.04 -0.05 0 -0.09 Qinting Jinjia Componment, Original 1.59 0.41 0 2 Town Village The 3rd Lianxin Updated 0.00 0 0 0 group Eco-conservation Change -1.59 -0.41 0 -2 Island, Binhe The 7th Original 0.00 0 0 0

2 Change=updated-original

7 Acquisition of Collective Village RP vs. land The Subproject Township Village Subtotal group URP Paddy Dry Woodland land land Wetland of group Updated 13.30 0.4 0 13.7 Lianjiang River Change 13.30 0.4 0 13.7 and Baima River Original 0.90 0 0 0.9 Xiameizhou The 2nd Integrated Updated 0.00 0 0 0 Village group Improvement Change -0.90 0 0 -0.9 Component Original 2.15 0.71 0 2.86 The 3rd Updated 0.00 0 0 0 group Liumo Change -2.15 -0.71 0 -2.86 Village Original 2.31 0.4 2.71 The 5th Updated 0.00 0 0 0 group Change -2.31 -0.4 0 -2.71 Original 4.34 0 0 4.34 The 1st Updated 14.58 0.1 5.2 19.88 group Change 10.24 0.1 5.2 15.54 Original 5.45 0 0 5.45 The 2nd Updated 20.32 0 4.6 24.92 group Shuguang Change 14.87 0 4.6 19.47 Village Original 5.68 0 0 5.68 The 4th Updated 0.00 0 0 0 group Updated -5.68 0 0 -5.68 Original 3.02 0 0 3.02 The 5th Updated 0.00 0 0 0 group Change -3.02 0 0 -3.02 Original 0.00 0 0 0 The 7th Updated 27.29 0 2.7 29.99 group Shuguang Change 27.29 0 2.7 29.99 Village Original 0.00 0 0 0 The 8th Updated 21.11 0 4.3 25.41 group Change 21.11 0 4.3 25.41 Original 0.64 0 0 0.64 Yangjian The 3rd Updated 0.00 0 0 0 Village group Change -0.64 0 0 -0.64 Original 0.08 0.04 0 0.12 Nanmen The 4th Updated 0.00 0 0 0 Village group Change -0.08 -0.04 0 -0.12 Original 2.19 0 0 2.19 Xibian The 4th Updated 0.00 0 0 0 Village group Change -2.19 0 0 -2.19 Original 2.91 0 0 2.91 The 2nd Updated 0.00 0 0 0 group Lianhua Change -2.91 0 0 -2.91 Village Original 1.38 0 0 1.38 The 3rd Updated 0.00 0 0 0 group Change -1.38 0 0 -1.38 Original 0.36 0 0 0.36 The 2nd Fu Village Updated 0.00 0 0 0 group Change -0.36 0 0 -0.36 Original 0.10 0 0 0.1 Bailing The 3rd Updated 0.00 0 0 0 Village group Change -0.10 0 0 -0.1 Original 4.44 0.89 0 5.33 The 1st Updated 0.00 0 0 0.00 group Xietian Change -4.44 -0.89 0 -5.33 Village Original 3.01 0.93 0 3.94 The 2nd Updated 0.00 0 0 0 group Change -3.01 -0.93 0 -3.94 Baima The 2nd Original 2.31 0 0 2.31

8 Acquisition of Collective Village RP vs. land The Subproject Township Village Subtotal group URP Paddy Dry Woodland land land Village group Updated 0.00 0 0 0 Change -2.31 0 0 -2.31 Original 2.67 0 0 2.67 The 3rd Updated 0.00 0 0 0 group Change -2.67 0 0 -2.67 Original 1.80 0 0 1.8 The 4th Updated 0.00 0 0 0 group Change -1.80 0 0 -1.8 Original 3.56 0 0 3.56 The 3rd Updated 8.33 7.25 11.65 27.23 group Change 4.77 7.25 11.65 23.67 Original 4.89 0 0 4.89 The 4th Updated 9.17 5.72 8.91 23.8 group Huatang Change 4.28 5.72 8.91 18.91 Village Original 2.78 0 0 2.78 The 6th Updated 7.84 6.23 9.14 23.21 group Change 5.06 6.23 9.14 20.43 Original 6.20 0 0 6.2 The 7th Updated 19.70 13.53 15.21 48.44 group Change 13.50 13.53 15.21 42.24 Original 0.09 0 0 0.09 Xiafang The 2nd Updated 0.00 0 0 0 Village group Change -0.09 0 0 -0.09 Original 0.32 0 0 0.32 Wanxi The 1st Updated 0.00 0 0 0 Village group Change -0.32 0 0 -0.32 Original 1.24 0 0 1.24 Liangfang The 2nd Updated 0.00 0 0 0 Town group Tianxin Change -1.24 0 0 -1.24 Village Original 2.21 0 0 2.21 The 4th Updated 0.00 0 0 0 group Change -2.21 0 0 -2.21 Original 1.40 0 0 1.4 Xietian The 1st Updated 0.00 0 0 0 Village group Change -1.40 0 0 -1.4 Original 0.08 0 0 0.08 Meizhou The 2nd Updated 0.00 0 0 0 Village group Change -0.08 0 0 -0.08 Original 4.70 0 0 4.7 Liangfang Tangdu The 5th Updated 0.00 0 0 0 Town Village group Change -4.70 0 0 -4.7 Original 0.41 0 0 0.41 Tayuan The 3rd Updated 0.00 0 0 0 Village group Change -0.41 0 0 -0.41 Original 0.72 0 0 0.72 Huayuan The 4th Updated 0.00 0 0 0 Village group Change -0.72 0 0 -0.72 Original 2.89 0 0 2.89 The 2nd Updated 0.00 0 0 0 group Shijiang Change -2.89 0 0 -2.89 Shengfang Village Original 6.31 0 0 6.31 Town The 5th Updated 0.00 0 0 0 group Change -6.31 0 0 -6.31 Original 2.10 0 0 2.1 The 3rd Shengfang Updated 0.00 0 0 0 group Village Change -2.10 0 0 -2.1 The 4th Original 1.23 0 0 1.23

9 Acquisition of Collective Village RP vs. land The Subproject Township Village Subtotal group URP Paddy Dry Woodland land land group Updated 0.00 0 0 0.00 Change -1.23 0 0 -1.23 Original 3.14 0.03 0 3.17 The 6th Updated 0.00 0 0 0.00 group Change -3.14 -0.03 0 -3.17 Original 5.45 0 0 5.45 Lianhua Liangzhong Farm Updated 0.00 0 0 0 Change -5.45 0 0 -5.45 Original 98.29 3.66 0 101.95 Total Updated 142.84 33.43 61.71 237.98 Change 44.55 29.77 61.71 136.03

Along with land acquisition, 66 HHs and 267 persons in 3 villages will be affected, of which, 5 HHs and 21 persons are in Jinjia village, 27 HHs and 104 persons in Shugang village and 34HHs and 142 persons in Huatang Village. See details in Table 2-3. Table 2-3 Impact on Acquisition of Collective-owned Land by Village Acquisition of Affected AHs APs Affected Affected collective land component village town Village (HH) (person) (group) (mu) The 2nd and Jinjia Village 15.1 5 21 Lianhua 7th group Lianjiang The 1st, 2nd, River & Shuguang Qinting 7th and 8th 100.2 27 104 Baima River Village Town group Integrated Improvement The 3rd, 4th, Huatang component 6th and 7th 122.68 34 142 Villag group Total 237.98 66 267

As to components, Lianjiang River Component will acquire 15.1mu land with 26 HHs and 104 persons to be affected, Binhe wetland of Lianjiang River Component will acquire 20.7 mu land with 6HHs and 21 persons to be affected, Baima River Component will acquire 104.78 mu land with 22HHs and 95 persons to be affected and Hekou Wetland of Baima River Component will acquire 17.9mu land with 12 HHs and 47 persons to be affected. See details in Table 2-4. Table 2-4 detail Impact on Acquisition of Collective Land Affected Acquisition of Affected Affected AHs APs Component Village collective land town Village Group (mu) (HH) (person) Jinjia The 2nd, 7th 15.1 5 21 Village group Lianjiang River Shuguang The 1st, 2nd 79.5 21 83 Village and 8th group subtotal 94.6 26 104 Qinting Binhe Wetland of Shuguang Town The 7th group 20.7 6 21 Lianjiang River Village Huatang The 3rd, 4th, Baima River 104.78 22 95 Village 6th group Hekou wetland of Huatang 7th group 17.9 12 47 Baima River Village Total 237.98 66 267

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2.3.2 Permanent Occupation of State-owned Land

No state-owned land will be affected by the Subproject.

2.3.3 Temporary Land Occupation

The temporary land occupation is mainly caused by silt stacking. 247 mu of land will be occupied temporarily by the Subproject. 15 mu of land is increased compared with the original RP. A total of 11 HHs with 49 persons will be affected temporarily who will also be affected by land acquisition. See Table 2-5. Table 2-5 Temporary Land Occupation of the Subproject Temporary land APs Townshi occupation p/subdis Village Group Area trict Land type HH person (mu) Jinjia Village The 7th group 32( ) Unused land 0 0 Shuguang The 2nd group 55 Unused land 0 0 Qinting Village The 8th group 43 Dry land 5 23 Town Huatang The 6th group 39 Dry land 6 26 Village The 7th group 78 Unused land 0 0 Total -- 247 -- 11 49 2.4 Affected Infrastructure and Land Attachments According to the survey, no house demolition will be included by the Subproject. In addition, in order to protect the original ecological environment along the rivers, the subproject will not affect infrastructures and ground attachments. 2.5 Housing Demolition According to the preliminary design and DMS, the Subproject will not involve any rural and urban housing demolition. 2.6 Affected Persons and Vulnerable Groups In total, 66 HHs and 267 persons to in 3 villages will be affected by land acquisition of the Subproject. During the survey, the Vulnerable Groups (VGs) were carefully identified. The VGs include the disabled, household enjoying the five guarantees system, women-headed household, low-income family. In Lianhua county, the per capita minimum living guarantee standard is 350yuan/month. The are 14 households with 22 persons identified as VGs, including 1 household with 1 disable person, 1 household with 1 person enjoying the five guarantees system3, 1 women-headed household with 3 persons, and 10 low-income families with 17 persons. See Table 2-6. Table 2-6 Affected VGs Unit: HH Town/s The Household women-heade Rural Village Village Group Total ubdistri disabl enjoying the d household low-incom

3 “five guarantee system” refers to the elderly, weak, widowed and disabled members who are unable to work and have no means of living, or whose households lack labor. The “five guarantee program” subsidies or assistance from government are as follows: 1) Grain and oils, subsidiary food and fuel; 2) Living goods including clothes, quilt etc, and pocket money; 3) Basic residential housing, 4) Medical subsidies; 5) burial expenses.

11 ct e five e family guarantees system Jinjia The 2nd group 0 0 0 0 1 Vilage The 7th group 0 1 0 1 2 The 1st group 0 0 0 1 1 Shuguan The 7th group 0 0 0 1 1 Qinting g Village The 8th group 0 0 0 2 2 Town The 3rd group 0 0 0 1 1 Huatang The 4th group 1 0 0 1 2 Village The 6th group 0 0 1 1 2 The 7th group 0 1 0 2 3 Total 1 2 1 10 14

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3 Socio-economic Profile

3.1 Socio-economic Characteristics of Affected Households The Subproject will affect Jinjia Village, Huatang Village, Shuguang Village in Qinting Town. The socioeconomic profiles of affected villages are presented in Table 3-1.

Table 3-1 Socio-economic Profile of the Affected Villages Farmla Per capita Populatio Per capita Project Town Village HHs nd farmland n income (mu) (mu) Lianjian River & Jinjia 353 1,480 1,077 0.73 9,170 Baima River Qintin Shugua 562 1,862 1,170 0.63 9,560 Integrated g ng Improvement Town Huatang 576 2,365 1,967 0.84 8,750 Component Data source: field survey from June to September 2019

3.1.1 Sampling Profile

In order to assess the affected households’ (AHs) socio-economic profile, the team has investigated 16 HHs in the affected area in July 2019, including 2 HHs in Jinjia Village, 6 HHs in Shuguang Village, 8 HHs in Huatang Village. The samples account 25% of total affected HHs.

3.1.2 Analysis on Sample Survey

The samples come from 3 villages in affect town, Qinting town. A total of 16 households with 57 persons were sampled and investigated. The average family size is 3.6. In the sampling population, there are 43 labor forces, 11 agricultural labor forces, accounting for 25.6% of the total, and 32 persons are working outside, accounting for 74.4% of the total. In the sampling population, the APs aged 0-17 account for 8.8%, aged 18-35 account for 45.6%, aged 35-60 account for 29.8%, and aged above 60 account for 15.8% of the total. See Table 3-2.

Table 3-2 Age Structure of Sample Population Town Village 0-17 18-35 35-60 Above 60 Subtotal Jinjia 1 3 2 2 8 Qinting Shuguang 1 10 6 3 20 Huatang 3 13 9 4 29 Total 5 26 17 9 57 percent 8.8% 45.6% 29.8% 15.8% 100.0%

13 In the sampling population, illiterate persons account for 8.8%, the persons with elementary school education account for 50.9%, the persons with secondary school education account for 36.8%, and the persons with university education account for 3.5% of the total. See Table 3-3.

Table 3-3 Education Structure of Sample Population Elementary Secondary Town Village Illiteracy University Subtotal school school Jinjia 0 2 6 0 8 Qinting Shuguang 2 12 5 1 20 Huatang 3 15 10 1 29 Total 5 29 21 2 57 percent 8.8% 50.9% 36.8% 3.5% 100.0%

Most labor forces in the surveyed households are going out to work and have stable income at present. The main cultivated crop is rice. The agricultural income is not main income sources of the family. The per capita income was 9,500 yuan, per household income was 33,843 yuan in 2018. The per capita farmland is 0.82 mu now. See Table 3-4.

Table 3-4 Sample Households’ Incomes and Resources Incomes per capita Land resources Popul Agricult Farml Dry Garden Subto Town Village HH Wage Subtotal ation ure and land plot tal yuan yuan yuan mu mu mu mu Jinjia 2 8 14,816 61,184 76,000 6.2 1.3 0 7.5 Qinting Shuguang 6 20 37,040 152,960 190,000 15 2.6 1.5 19.1 Huatang 8 29 53,708 221,792 275,500 17.5 1.2 2 20.7 Total 3 16 57 105,564 435,936 541,500 38.7 4.1 3.7 47.3 Per capita 1852 7648 9,500 0.68 0.07 0.06 0.82

The per capita expenditure of sample households is 3059.6 yuan. For their expenditure, food accounts for 43.4%, clothing accounts for 12.2%, living expenses accounts for 3.7%, fuel of electronic appliances accounts for 3.1%, medical care accounts for 6.1%, transportation and communication accounts for 8.0%, education accounts for 12.5%, other goods service account for 1.7% of the total. See Table 3-5.

Table 3-5 Expenditure Structure of Sample Households Yuan/person,% Fuel of Transportation Other Medical Human Item Food Clothing Living electronic and Education goods subtotal care contact appliances communication service expenditure 1327.3 374.2 112.3 95.8 187.3 243.9 286.1 381.2 51.7 3059.6 Percent 43.4% 12.2% 3.7% 3.1% 6.1% 8.0% 9.4% 12.5% 1.7% 100.0%

In sampled households, there are 22 color TV sets, 6 refrigerators, 7 washing machines, 3 heaters, 5 air-conditioners, 12 motorcycles, 1 computer, 25 mobile phones, and 1 car. See Table 3-6.

Table 3-6 Sample Households’ Asset ownership Color Refrig Washing Air-con Motor Hea Mobile Compu Car Town Village HH TV set erator machine ditioner cycle ter phone ter set set set set set set set set set Jinjia 2 3 1 1 0 2 0 5 0 0 Qintin Shuguang 6 7 2 3 2 5 1 9 0 2 g Huatang 8 12 3 3 3 5 2 11 1 3

14 Color Refrig Washing Air-con Motor Hea Mobile Compu Car Town Village HH TV set erator machine ditioner cycle ter phone ter set set set set set set set set set Total 16 22 6 7 5 12 3 25 1 5 3.1.3 VGs survey

Among the population who are permanently affected, total 14 households with 22 persons are VGs. The preferences of these VGs are as follows: Buy social insurance; Provide jobs; Give reasonable land compensation. Along with China’s alleviation program, the Lianhua County Peoples’ Government and Qinting Town People’s Government has implemented a series policies and measures to support vulnerable groups, which include 1) cash subsidies (i.e. a subsidy of 385 yuan/person/month for the low-income family), 2) healthcare support, 3) small-free loans for business, and 4) supports for children’s education as well. The measures taken for VGs by the local Government are detailed in Table 4-5. During the implementation of resettlement plan, Lianhau PMO and local authorities (e.g. human resource and social security bureau) will provide assistances to VGs, which include: (i) LLFs’ insurance for the older people over 60 years of age; (ii) priorities in job opportunities and skill trainings for labors in VG household; According to the survey, the main income of VGs is from farming and subsidies of local government. In terms of land loss, it was analyzed that the income loss rate4 of VGs will be 4.96%, ranging from 3% to 7%. No households will lose more than 10% of their income.

Table 3-7 VGs land loss Original Land loss Income No. Village Village group type of family difficulties land(mu) (mu) loss rate Household enjoying the 1 Jinjia The 7th group 0.8 0.1 4.62% five guarantees system Vilage 2 The 7th group Rural low-income family 1.7 0.2 6.53% 3 The 1st group Rural low-income family 0.8 0.1 4.62% 4 Shuguang The 7th group Rural low-income family 1.8 0.2 6.32% 5 Village The 8th group Rural low-income family 1.8 0.1 3.16% 6 The 8th group Rural low-income family 0.9 0.1 4.42% 7 The 3rd group Rural low-income family 0.9 0.1 4.42% 8 The 4th group The disable 0.9 0.1 4.42% 9 The 4th group Rural low-income family 1.9 0.2 6.13% women-headed 10 The 6th group 2.2 0.2 5.61% Huatang household 11 Village The 6th group Rural low-income family 0.8 0.1 4.62% Household enjoying the 12 The 7th group 0.9 0.1 4.42% five guarantees system 13 The 7th group Rural low-income family 1.6 0.2 6.75% 14 The 7th group Rural low-income family 1.5 0.1 3.49% total 18.5 1.9 4.96%

4 Income loss rate=AAOV X land loss/(AAOV X original land+ subsidy from government). According to the survey, AAOV is about 2200 yuan/mu and subsidy from government is about 3000 yuan/household.

15 4 Resettlement Policies and Compensation Standards

4.1 Compensation Standards 4.1.1 Compensation Standards for Collective Land The compensation for collective-owned land acquisition includes land compensation fee, resettlement subsidy, and compensation for green crops and ground attachments. According to the laws, regulations and policies of “The Law of Land Administration of the PRC”, “The Opinions on Improving the System of Compensation and Resettlement for Land Expropriation”, “The Measures of Jiangxi Province for the Implementation for the Law of Land Administration of the PRC”, “The Notice of Jiangxi Province Government on Adjustment of the Uniform AAOV Rates and Integrated Land Section Price for Land Compensation” (JPG[2015] No.81), and reference of the compensation standards for land acquisition of similar projects in nearby area, the compensation standards for collective land acquisition in Qinting Town are higher than the original RP. See Table 4-1. During RP updating, it has been confirmed by Lianhua County Natural Resources Bureau that there have not been any updates on the compensation standards and the above policies and rates will continue to be applied. While it was reported that in practice the rates were increased a little that those in regulations to match the socioeconomic development. Therefore, the subproject will adopt the updated rates in Table 4-1. In socioeconomic surveys and consultations, it was also reported by AHs that the latest compensation rates should be complied. In the event that there are any changes during implementation, the most recent compensation rates will apply based on replacement value principle for affected land and assets.

Table 4-1 Compensation Standards for the Acquisition of Collective Land Compensation standards (yuan/mu) Paddy field, paddy Woodland, Townsh vegetable plot, high-yield Dry land, dry land Category collective ip orchard, artificial tea garden, construction high-yield oil tea garden, homestead land fishpond Original 35,706 23,923 7,483 Qinting Updated 38,185 25,584 13,365 Town Change +2,479 +1,661 +5,882

4.1.2 Compensation Standards for Green Crops

In terms of policies and practice of Lianhua County, the compensation standards for green crops are established in Table 4-2.

Table 4-2 Compensation Standards for Green Crops on the Ground Compensation standards (yuan/mu) Paddy field, paddy vegetable Township Category Dry land, dry Woodland, plot, high-yield orchard, artificial land tea garden waste land high-yield oil tea garden

16 Compensation standards (yuan/mu) Paddy field, paddy vegetable Township Category Dry land, dry Woodland, plot, high-yield orchard, artificial land tea garden waste land high-yield oil tea garden Original 1,308 1,023 1,023 Qinting Updated 2,250 1,513 1,513 Town Change +942 +490 +490

4.1.3 Changes of Relevant Standards of Taxes

The taxes and duties are detailed in Table 4-3.

Table 4-3 Compensation Standards for Relevant Taxes Original Present Item Unit Change standard standard Payment for the use of new yuan/mu 13,340 16,600 3,260 construction land Farmland reclamation fee (paddy field) yuan/mu 10,000 35,000 25,000 Farmland reclamation fee (dry land) yuan/mu 10,000 15,000 5,000 Farmland occupation tax yuan/mu 15,007 16,007 1,000 Temporary land occupation cost yuan/mu 1,334 1,334 0 Flood protection and security fund yuan/mu 1,000 1,000 0 Social security cost yuan/mu — 10,000 — Vegetation recovery fee yuan/mu 3,000 4,000 1,000 Contingencies fee 10% of LA cost 10% of LA cost 0

4.1.4 Compensation Standards for Temporary Land Occupation

The silt stacking of river clean-out will temporarily occupy collective land. The occupied land will be compensated according to the actual occupancy time at the price of 3000 yuan/mu·year according to the relevant regulations in Lianhua County. The lands that will be temporarily occupied will be restored by the contractor prior to handover to the land user. 4.2 Resettlement Policies

4.2.1 LLF’s Endowment Insurance

According to the present practice in Lianhua County, the land-lose farmer’s (LLF) endowment insurance is becoming a main resettlement measure after LA. According to the regulations of “The General Office of Jiangxi Provincial People's Government Transmitting the Notice of Jiangxi Provincial Human Resources and Social Security Department on Further Improving the Basic Endowment Insurance Policy" (the Office of Jiangxi Gov. [2014]No.12), "The Pingxiang Municipal People's Government on the Issuance of the Notice of the Opinions on Pingxiang Land-loss Farmer’s Participation in the Basic Endowment Insurance"(Ping Gov. Office (2014) No.27) , and “The Notice of Issuing the Implementing Opinion on Lianhua County Land-loss Farmer’s Participation in Endowment Insurance”, the farmers that meet the scope of LLF’s social security will be included into new rural social

17 endowment insurance. The villager in the register of agricultural population, whose land is completely lost or per capita arable land is less than 0.3 mu (including) after LA, and is 16 years of age will be covered by the LLF’s endowment insurance. According to DMS and impact analysis, it was estimated that 122 persons to be affected by LA will be covered by this program.

Table 4-4 LLFs’ Social Insurance Neighborhood AHs APs Number of the LLFs’ social Town committee/village (HH) (person) security (person) Jinjia Village 5 21 11 Qinting Shuguang Village 27 104 43 Town Huatang Village 34 142 68

Total 66 267 122 Note: the number of LLFs’ is an estimated data in light of survey. During the implementation, it might be changed, and will be monitored closely.

The object and scope of security, the compensation standards of payment and methods of payment, sources of fees are the same as the original resettlement plan in section 4.8. Please refer to the original RP.

4.2.2 Vulnerable Groups

In addition to the above compensation policies for LA, the VGs affected by the Subproject are also entitled to the following preferential policies: (1) Laborers in vulnerable households will be provided with occupational training, and employment information and guidance in order to increase their job opportunities. (2) During project construction, laborers in vulnerable households will have priorities in being employed for unskilled jobs. (3) A series of special policies have been provided by Lianhua County Peoples’ Government and Qinting Town People’s Government for the affected groups under China’s poverty alleviation program, which include: 1) cash subsidies, 2) healthcare support5, 3) small-free loans for business, and 4) supports for children’s education as well. The details are shown in Table 4-5. According to the survey, it could be found that the vulnerable groups have been well guaranteed by government poverty alleviation program. The impacts on them by the project are minor. Same to the draft RP, Lianhua PMO has established supporting fund for vulnerable groups in case that these households need additional support during resettlement implementation. They will be paid in cash directly (about 2400 Yuan/person) that will be covered by contingencies of resettlement cost.

5 the household only pay for 10% of medical cost and the government will pay for the rest.

18 Table 4-5 Basic information of vulnerable groups and subsidy measures Family Factors-caused Current government Main source of support by the No. Householder Category members poverty subsidies and support household income Project  Guaranteed Income suffering from Supplement:4620 Government 1 Yin Nianzai 1 chronical low-income family / Yuan/person/year; subsidies disease  healthcare support Lack of skill,  Guaranteed Income and one Supplement: 4620 Government Priorities to skill member yuan/ person/ year; 2 Yin Xizai 2 low-income family subsidies, and training and job suffering from  Production subsidy: child’s support opportunities chronical 2000 Yuan/year disease  Healthcare support  Guaranteed Income suffering from Supplement:4620 Government 3 Li Shuiyuan 1 chronical low-income family / Yuan/person/year; subsidies disease  Healthcare support  Guaranteed Income suffering from Government Supplement:4620 4 Zhu Fulong 1 chronical low-income family subsidies and / Yuan/person/year; disease child’s support  Healthcare support suffering from Household enjoying  Guaranteed Income Government 5 Chen Momei 1 chronical the five guarantees Supplement:4800 / subsidies disease system Yuan/person/year  Guaranteed Income Supplement:4620 Yuan/person/year; Government Priorities to skill Peng 6 2 lack of skills low-income family  Production subsidy: subsidies and training and job Dongmei 2000 Yuan/year agricultural income opportunities  Healthcare support  Small free-interest loan  Guaranteed Income Supplement:4620 Agricultural Priorities to skill 7 Yan Qiujiao 2 Lack of skills low-income family Yuan/person/year; income; have training and job  Production subsidy: part-time jobs opportunities 2000 Yuan/year

19 Family Factors-caused Current government Main source of support by the No. Householder Category members poverty subsidies and support household income Project  Healthcare support suffering from Household enjoying  Guaranteed Income Government 8 Yan Guoqing 1 chronical the five guarantees Supplement:4800 subsidies and / disease system Yuan/person/year child’s support  Guaranteed Income The disable and Supplement:4620 Government 9 Yan Jianbo 1 The disable / Low-income family Yuan/person/year subsidies  healthcare support  Guaranteed Income Supplement:4620 Yuan/person/year Lack of skills,  Production subsidy: Government Priorities to skill and burden of women-headed 10 He Yinjiao 2 2000 Yuan/year subsidy and training and job one child household  Healthcare support agricultural income opportunities education  Child education allowance:2000 Yuan/year Lack of skills  Guaranteed Income and Supplement:4620 Government Priorities to skill Chen one-member Yuan/person/year 11 2 low-income family subsidy and training and job Yuanhui suffering from  Production subsidy: agricultural income opportunities chronical 2000 Yuan/year disease  Healthcare support  Guaranteed Income Two members Supplement:4620 suffering from Yuan/person/year Government 12 Liu Xiaoyuan 2 low-income family / chronical  Production subsidy: subsidies disease 2000 Yuan/year  Healthcare support lack of skills,  Guaranteed Income and one Supplement:4620 Government Priorities to skill 13 Liu Jianxin 2 member low-income family Yuan/person/year subsidies and training and job suffering from  Production subsidy: agricultural income opportunities chronical 2000 Yuan/year

20 Family Factors-caused Current government Main source of support by the No. Householder Category members poverty subsidies and support household income Project disease  Healthcare support lack of skills,  Guaranteed Income and one Supplement:4620 Government Priorities to skill member Yuan/person/year 14 Liu Wuyi 2 low-income family subsidies and training and job suffering from  Production subsidy: agricultural income opportunities chronical 2000 Yuan/year disease  Healthcare support

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4.2.3 Supporting Measures for Women

In addition to the above compensation policies for LA, women are also entitled to the following special supporting policies in priority: (1) Women will have priorities in employment. (2) Women will have priorities in receiving agricultural and non-agricultural skills training for 800 person-times, the training for women are not less than 400 person-times (50%). (3) Women will be able to receive related information and participate in the activities of consultation and resettlement during the course of resettlement. (4) The special FGDs for women will be held to introduce resettlement policies and improve their awareness. (5) The compensation agreement must be signed by both husband and wife.

4.2.4 Compensation Qualifications and Cut-off Date of Compensation

The cut-off date for the eligibility for compensation was May 31, 2019, which have been disclosed in the project area. Any newly claimed land, newly built housing or settlement in the affected area by the affected persons (APs) after this date will not be entitled to compensation or subsidization. The housing and land use should not be changed. Any building constructed or tree planted purely for extra compensation will not be counted in. For the households affected in the original RP while will not be affected in the updated RP, the Lianhua PMO and related authorities have provided publicity and explanation of the construction plan of new project to eliminate their doubt. The methods included (1) posters in related villages, (2) village meetings, and (2) information pasted on village boards, and so on.

4.2.5 Entitlement matrix

Table 4-4 presents the entitlement matrix. While the entitlements to the various impact categories and policy provisions are consistent with the agreed provisions in the original RP and have not been changed, the compensation standards have been updated to reflect the current land acquisition practice in Lianhua County.

22 Table 4-6 Entitlement Matrix Impact type Impact degree APs entitlements Compensation standards (1) Compensation standards: paddy, vegetable, high-yield orchard, artificial (1)The LA is compensated in accordance with China’s high-yield oil-tea garden, fishpond 38,185 laws and regulation, and local (Jiangxi province and yuan/mu; dry land, dry land tea garden, Pingxiang Municipality) regulations. Acquisition homestead 25,584 yuan/mu; woodland, 66 HHs，267 (2) All land acquisition compensation (including land of collective 237.98mu collective construction land 13,365 persons compensation fee and resettlement subsidy) will be paid to land yuan/mu. AHs directly. (2) Green crops in paddy field 2,250 (3) The compensation fees for green crops and ground yuan/mu; green crops in dry land 1,513 attachments will be paid to the APs. yuan/mu; green crops in woodland 1,513 yuan/mu. The compensation standard for The compensation for temporary land occupation is based Temporary temporary land unused and dry land on the actual occupation period, the land use agency is land 247 mu Property owner occupation is 3,000 yuan/mu·year responsible for land reclamation after the project is occupation according to relevant regulations of completed. Lianhua County. (1) A series of special policies have been provided by Lianhua County Peoples’ Government and Qinting Town 1 household with 1 People’s Government for the affected groups under disable person, 1 china’s poverty alleviation program. Besides, the Project household with 1 will provide the following supports: person enjoying the (2) Laborers in vulnerable households will be provided with five guarantees occupational training, and employment information and 14 HHs with 22 VGs system, 1 guidance in order to increase their job opportunities. persons women-headed (3) During project construction, laborers in vulnerable household with 3 households will have priorities in being employed for persons, and 10 unskilled jobs. low-income families (4) Same to the draft RP, Lianhua PMO has with 17 persons. established supporting fund for vulnerable groups in case that these households need additional support during resettlement implementation. Women’s 139 affected 44.1% of total APs Based on women's wishes, they will have priority in

23 Impact type Impact degree APs entitlements Compensation standards rights women unskilled jobs during the implementation and management of the Project. At the same time, women have same payment as men for same work. Child labour is prohibited. For the skill training, the affected women will have priority in receiving skills training in order to ensure their economy. The Project will provide skills training for 800 person-times, and the training for women are not less than 400 person-times (50%)..

24 5 Public Participation and Information Disclosure 5.1 Public Participation during RP Updating From June to September 2019, Lianhua PMO, project design unit and JASS team carried out extensive consultations with affected villages, village groups and representatives of APs. The results of the consultations are: (1) all interviewers supported the construction of the Lianhua Project; (2) the subproject will benefit local residents and bring opportunities to improve APs’ living conditions and promote local development of economy and society. The consultations conducted during RP updating are summarized in Table 5-1. According to the survey and consultations, the findings could be concluded that:  all interviewers supported the construction of the subproject.  APs expected to guide to the enterprises in the economic and technological development zones or industrial parks for off-farming works near project area;  APs expected that temporary jobs could be provided during the construction of the subproject in priorities and land-loss farmers could be engaged during the operation of the subproject such as green conservation, road cleaning and so on.  APs expected that skill trainings on planting, breeding and handicraft manufacturing could be provided.

25

Table 5-1 Resettlement Information Disclosure and Main Consultation Activities Date Organizer Participants N Females Purpose Key points Suggestions Actions Introducing the Minimizing impacts on Adjusting the scope of Lianhua background and income and livelihoods, construction to reduce APs, village Preliminary May~ PMO, and purpose of the and keeping project resettlement impacts, officials, 20 8 design, field visits, August 2019 design Subproject, and information and and disclosing technicians DMS agencies minimizing resettlement policies resettlement policies in resettlement impacts transparent the subproject area Making the APs fully Reps. of Adjusting compensation Notifying LA and Notifying and aware of the Lianhua government modes in full June 2019 36 16 resettlement coordinating LA Subproject’s LA and HD PMO agencies and consideration of the APs’ impacts matters impacts, compensation APs expectations modes, etc. Notifying and Discussing Reps. of Explaining the Discussing discussing LA compensation modes, June~ July. Lianhua government compensation 38 20 compensation matters, and and how compensation 2019 PMO agencies and distribution and payment modes coordinating relevant is distributed and paid APs procedure issues with the APs Further improving Learning project compensation August to Lianhua Village officials, Completing and progress, LA impacts, programs, and updating the RP based September 55 25 PMO, JASS reps. of APs updating the RP and socioeconomic strengthening the on the fieldwork 2019 profile capacity building of resettlement agencies

26

Figure 5-1 Confirmation of Resettlement Scope

Figure 5-2 Survey of LA

Figure 5-3 Socio-economy Survey and Consultation

Figure 5-4 Sample Survey of AHs

27 5.2 Public Participation at the Implementation Stage During the resettlement implementation, Lianhua PMO will adopt procedures and methods to encourage public participation and consultation, which are: (1) The representatives of APs will participate in the activities of LAR, including land acquisition implementation, compensation payment and distribution and resettlement M&E, and so on. (2) The land owners and users will be consulted and determine the resettlement modes, and put forward the suggestions on compensation and resettlement. (3) Carrying out consultation meeting Before the land acquisition, a meeting will be carried out for the representatives of affected households, and women (female representatives should be over 30%) to introduce the situation of LAR, listen to their opinions and suggestions, and record their suggestions and opinions in order to pay attention to it in the process of resettlement and project implementation. (4) Carrying out public meeting Before implementation of LA, a meeting will be carried out for the public to explain relevant policies, regulations, compensation standard, resettlement modes, so that the public could know the LAR and make arrangement early. The purpose is that to implement the subproject in strict accordance with ADB and China’s policies by combining with local actual situation and opinions and suggestions of the masses. (5) Policies publicity of LA will be massively disclosed through medias such as broadcast, television, newspaper, network. (6) Announcement of LA The main contents of announcement including profile of the Project, scope of LA, resettlement policies (including compensation standards), resettlement organizations, APs’ right and obligation, grievances and appeals, monitoring, evaluation, etc will be posted on affected villages’ boards. (7) Publicity of resettlement plan Before ADB’s approval, the Lianhau PMO will distribute the resettlement plan to the affected village/town offices or information rooms so that people can consult it. (8) Resettlement information brochure The Lianhua PMO will compile the main parts of resettlement plan into a resettlement information brochure, and distribute it to the APs before the implementation. The main contents of the resettlement information brochure will include project profile, project impact, compensation policies, implementation agency, appeals channels, contact persons, contact way, etc. The resettlement information brochure will be handed out by end of December 2019. (9) Other issues of concern to the APs According to the work arrangement of Lianhua PMO, Qinting Town People’s Government will periodically carry out the mass meetings on the question of consultation and give feedback to the offices at all levels in form of report. In addition to participation in consultative activities organized by the Lianhua PMO, the external monitor will carry out consultations on monitoring with the APs, collect their grievances and suggestions, and provide monitoring information to the departments of LA at all levels.

28 With the progresses of project preparation and implementation, Lianhua PMO will carry out public participation. See Table 5-2. Table 5-2 Public Participation Plan Purpose Method Time Organization Participant Topic Bulletin board of Lianhua PMO, Announcing the area of affected villages December . Lianhua Land and Announce LA, standards of and villager 2019-Jan Resources All APs ment of LA compensation, meeting after RP 2020 Bureau, towns and resettlement ways, etc. updated village cadres. Announce Bulletin boards of Lianhua PMO, ment of affected villages December . Lianhua Land and Compensation fees and compensati and villager 2019-Jan Resources All APs payment ways on for RP of meetings after 2020 Bureau, towns and LA RP updated village cadres. Determine new plan of Lianhua PMO, Discussing the plan of income Before Lianhua Land and Villager meetings income recovery and plan recovery implementa Resources All APs (several times) of compensation funds and tion Bureau, towns and usage. implementa village cadres. tion Lianhua PMO, June Labor and Social Discussing training Training Villager meetings 2020-June Security Bureau, All APs demand and plan 2021 township, village implementing trainings cadres Resettlement schedule and impact. External Jan Payment of Villagers take Monitoring Agency, Monitoring 2020-Dec.2 All APs compensation fee. part in meeting township, village 022 Information disclosure. cadres. Restoration of production and living,

29 6 Restoration Program for the Affected Farmers’ Living Standard 6.1 Analysis of Impact on Acquisition of Collective Land

The subproject will acquire 237.98 mu of collective land in 3 villages, Qinting Town, including 142.84 paddy land. A comparative analysis of quantity of paddy land before and after LA in the affected villages has been conducted based on the socio-economic survey. The extent of the affected villages in Qinting Town are not high, varying from 1% to 17%. The top three village groups suffering land loss are the 2nd village group, the 1st village group and the 7th village group in Shuguang Village with land loss rate of 16.26%, 9.66% and 9.61% respectively. Based on a calculation of annual income loss of affected groups, it shows that the highest annual loss of income is 290 yuan, and the lowest annual loss of income is 41 yuan. See Table 6-1. From the above analysis, it could be concluded that overall the impacts of LA on the farmland resources in the affected villages are not significant. At the household level, there are 60 households whose land loss rate is less than 10% (accounting for 93.75%) and only 4 households whose land loss rate is 10%-20% (accounting for 6.25%), and no household whose land loss rate is above 20%. See Table 6-2. As indicated in sample survey of AHs, the agriculture income is not main income resource of the family, only accounting for 19.5%. Combined with land loss rate, it could be inferred that no households will lose more than 5% income.

30 Table 6-1 Analysis of Impact on Collective Land Acquisition Population LA Impact Impact rate Income loss (yuan) Per Change Proporti Per Expro Per Far remaini capita s of Per Per on of Vill Gr capita priate Affecte Popula capi to mla Affecte ng farmlan capita HH Annual HH per ag ou HH Perso farmla d d tion LA rate ta wn nd d HHs farmlan d after farmlan rate( loss loss capita e p s n nd farml person rate (%) loss (mu) by LA d (mu) LA d after %) (yuan) (yua gross-in (mu) and s by LA (%) (yua (mu) LA (mu) n come (mu) n) (%) Jinj 2 12 64 61 0.95 1.2 1 4 59.8 0.93 0.02 8.33 6.25 1.97 2,640 220 41 0.43 ia 7 97 411 349 0.86 13.3 4 17 335.7 0.82 0.04 4.12 4.14 3.81 29,260 302 71 0.74 1 38 191 151 0.79 14.58 4 18 136.42 0.71 0.08 10.53 9.42 9.66 32,076 844 168 1.75 Sh 2 31 154 125 0.81 20.32 6 25 104.68 0.68 0.13 19.35 16.23 16.26 44,704 1442 290 3.02 ug 11 7 462 284 0.69 27.29 11 43 256.71 0.56 0.13 9.73 9.31 9.61 60,038 531 130 1.35 Qin ua 3 ting ng 10 8 411 306 0.74 21.11 6 21 284.89 0.69 0.05 5.77 5.11 6.90 46,442 447 113 1.18 4 3 53 239 208 0.87 8.33 8 34 199.67 0.84 0.03 15.09 14.23 4.00 18,326 346 77 0.80 Hu 4 67 337 344 1.02 9.17 5 19 334.83 0.99 0.03 7.46 5.64 2.67 20,174 301 60 0.62 ata 6 59 284 293 1.03 7.84 6 28 285.16 1.01 0.02 10.17 9.86 2.68 17,248 292 61 0.63 ng 7 93 463 436 0.94 19.7 15 61 416.3 0.90 0.04 16.13 13.17 4.52 43,340 466 94 0.98 66 2,55 142.8 subtotal 3,016 0.87 66 267 2,414.16 0.82 0.07 9.60 8.85 5.59 314,248 471 104 1.09 7 7 4

31 Table 6-2 Analysis of Land Loss Rate Land loss rate <10% 10%-20% 20%-30% Subtotal Town Village Group Rate Rate Rate (HH) Number Number Number (%) (%) (%) Jinjai The 2nd group 1 100 0 0 0 0 1 Village The 7th group 4 100 0 0 0 0 4 The 1st group 4 100 0 0 0 0 4 Shuguang The 2nd group 4 66.67% 2 33.33 0 0 6 Village The 7th group 10 90.9 1 9.1 0 0 11 Qinting The 8th group 6 100 0 0 0 0 6 The 3rd group 7 87.5 1 12.5 0 0 8 The 4th group 5 100 0 0 0 0 5 Huatang th Village The 6 group 6 100 0 0 0 0 6

The 7th group 14 93.33 1 6.67 0 0 15

Total -- 61 93.75 5 6.2 0 0 66

6.2 Income restoration Plan for Generally Affected Village Groups

The preparation of resettlement and income restoration plan for the affected farmers is based on degree of impact and actual characteristics and the APs’ willingness. Through the consultations between villagers' committees and the APs, and combining traditional compensation methods of LA, the final resettlement plan has been formulated. The specific resettlement methods and restoration measures are as follows:

6.2.1 Cash Compensation and Distribution

The affected village groups and households will be provided cash compensation with the rate of 38,185 yuan/mu in Qinting Town. The compensation for land acquisition will be paid directly to village collective organizations, and the distribution plan of compensation will be determined by villagers through carrying out villagers' congress. In the subproject, all land acquisition compensation will be paid directly to AHs. The compensation fees for green crops and ground attachments will be paid directly to the AHs. The AHs could carry out agricultural development and non-agricultural activities by themselves after they get cash compensation.

6.2.2 Agricultural Resettlement Measures

According to the socio-economic survey and measurement analysis, there are some changes of per capita farmland in the affected village groups before and after LA, but the changes are very minor. The AHs will lose small partial of land and still have the most of land remained. The measures for agricultural development are one of the ways to promote the

32 goal of livelihood restoration of AHs. When AHs receive cash compensation, they could use the compensation to invest agricultural measure to improve their income, which will guided by the Lianhua PMO and Qinting Township Government. The measures are likely to include planting fine vegetables, growing seedlings in greenhouse, developing fruits planting, and scale farming. It is expected that these four effective agricultural modes will increase 70% of agricultural income. (1) Fine vegetables. Being the special natural climate conditions, the vegetables in Lianhua County are more variety, higher yield, and good quality. The popularization of planting various fine vegetables in affected groups, including greenhouse vegetables, sunlight greenhouse vegetables, highly efficient terrestrial vegetables, could better improve the rate of return of vegetables. The income of every mu of land could reach to more than 10,000 yuan based on estimation. (2) Growing seedlings in greenhouse refers to growing seedlings through greenhouse technology and sailing vegetable seedling. The technology of growing seedlings in greenhouse could short growing period, fast output and more annual output. It is estimated that income of every mu of land could reach to more than 10000 yuan. (3) Developing fruits planting. The good natural conditions will help planting various fruits. From the local fruits planting, the period of bearing fruit of pear trees is 3 years, the income of output per mu is guaranteed after fruit maturation. (4) Scale farming. All of the affected village groups develop poultry breeding industry and fishpond aquaculture in varying degrees. It is estimated that the annual profit of medium-sized poultry breeding and fishpond culture could reach to 20000-30000 yuan.

6.2.3 Employment Resettlement Measures

(1) Employment guidance The affected farmers will be provided employment guidance and support in form of special employment supply and demand meetings, surplus agricultural labor forces employment service, employment information, labor security rights protection, legal advisory support. (2) Providing Employment Opportunities and arrangement by the Project It is estimated that more than 2,000 temporary employment opportunities will be created every year during the implementation of the subproject, in which more than 800 non-technical jobs with a salary of 1,500-3,000 yuan every month. The affected farmers have priorities in job arrangement to promote the affected persons’ employment during the construction of the project. (3) Skill Training Measures On the basis of monetary compensation for affected farmers, the skill training plans for land-loss farmers’ have been prepared, which will provide opportunities of skill training to the affected farmers whose have basic cultural quality. 800 person-time training will be offered as follows: 1) Trainees The trainees are the affected labor forces with Lianhua county residence registration, aged over 18 years, and a certain degree of education. The Lianhua Human Resource and Social Security Bureau will provide related skill training certificates to trainees. 2) Training contents. According to surplus land, land management ways, resettlement

33 plan, the subproject will provide agricultural trainings on fine vegetables, growing breeding in greenhouses, fruits planting and scale farming. Non-agricultural training, including cooking, housekeeping service personnel, occupational training for workers in industrial enterprises will be provided. Skill trainings for the required jobs of shoes factory, material factory and electronic machinery factory will also be provided in terms of labor demand orders. At the same time, guiding training including common sense of urban life, rights protection, safe production, disaster prevention and mitigation, employment policies will be provided to the farmers who go out to work. 3) Institution arrangement. The Lianhua Labor and Social Security Bureau is responsible for the training activities. 4) Training costs: all training costs will be covered by the resettlement cost of the subproject and training programs of Lianhua county government.

6.2.4 LLF’s Endowment Insurance

As presented in Section 4.2.1, it was estimated that 122 persons to be affected by LA will be covered by the program of LLF’s endowment insurance.

34 7 Budget and Management of Resettlement Costs 7.1 Resettlement Costs The resettlement costs mainly consist of basic cost of resettlement (including LA, HD, corporation/enterprise), support fund of VGs, other costs, resettlement management cost, and contingencies cost. The compensation costs for LA including (1) Compensation cost for LA The compensation cost for LA is 38,185 yuan/mu, for green crops is 2,250 yuan/mu, and for attachments on the ground is 2,200 yuan/mu. (2) Land use cost According to related files, the new construction land use cost is 16,600 yuan/mu. (3) Farmland occupancy tax The calculation of the farmland occupancy tax is based on actual amount of farmland occupancy. According to the related regulations of the state, Jiangxi Province, Pingxiang City, the farmland occupancy tax is 16,007 yuan/mu. (4) Farmland reclamation cost The calculation of the farmland reclamation cost is based on actual amount of farmland occupancy. According to the related regulations of the state, Jiangxi Province, Pingxiang City, the paddy field reclamation cost is 35,000 yuan/mu, and the dry land reclamation cost is 15,000 yuan/mu. (5) Other costs of resettlement The calculation of the survey and design costs is based on 1.5% of basic cost of resettlement, and that of the M&E and training costs are based on 1% of the sum of compensation cost for land use, Farmland occupancy tax, and farmland reclamation cost. (6) Management cost of LA The calculation of management cost is based on 2% of LA cost. (7) Contingencies The calculation of Contingencies cost is based on 10% of basic resettlement cost. 7.2 Resettlement Budget According to all compensation standards of impact categories and LAR impacts, the total resettlement cost of the subproject is 28,194,455.1 yuan. See Table 7-1.

35 Table 7-1 Budget for Resettlement Costs No. Item Category Unit Standard Qty. Amount Remark (yuan) 1 LA Paddy field (including green crops yuan/mu 40,435 142.84 5,775,735.4 cost) 1.1 Compensation for permanent expropriation of collective land Dry land(including green crops cost) yuan/mu 27,097 33.43 905,852.7 Woodland (including green crops cost) yuan/mu 14,878 61.71 918,121.4 New construction land use cost yuan/mu 16,600 237.98 3,950,468.0 Farmland occupation tax yuan/mu 16,007 176.27 2,821,553.9 Related costs for permanent Farmland reclamation fee (paddy field) yuan/mu 35,000 142.84 4,999,400.0 1.2 expropriation of collective land Reclamation fee (dry land) yuan/mu 15,000 33.43 501,450.0 Flood protection and security fund yuan/mu 1,000 237.98 237,980.0 Social security cost yuan/mu 10,000 237.98 2,379,800.0 Compensation for temporary 1.3 occupation land yuan/mu 3,000 247 741,000.0 1.4 Management cost of LA yuan 4% 23,231,361.38 929,254.5 1.5 Working funds for LA approval yuan/mu 500 237.98 118,990.0 Subtotal 24,279,605.8 2 Livelihood restoration measures Training for APs provided by local Budget covered by fiscal system yuan/person / 800 0.0 By the Government government, Training for APs provided by yuan/person 100 300 30000 Supported by Lianhua PMO the subproject Survey and design cost 1.5% 24,279,605.84 364,194.1 Other costs (with the sum of item 3 1 costs as the base) M&E cost 1% 24,279,605.84 242,796.1 Technique training cost 1% 24,279,605.84 242,796.1 Administrative management fee With the sum of item 1-3 costs as the 4 for resettlement base yuan 2% 25,182,192.05 502,043.8 5 Contingencies cost With the sum of item 1-3 costs as the 10% 25,182,192.05 2,510,219.2 base 6 Total 28,141,655.1

36 7.3 Utilization Plan of Resettlement costs Total resettlement funds come from local financial supporting funds and domestic loan. Before implementation or in the course of implementation of engineering, the investment plan is implemented in stages in order to avoid affecting LLFs’ production and living condition. See Table 7-2.

Table 7-2 Annual Investment Plan year 2020 2021 Total Investment (0’000 Yuna) 2396.6 422.9 2814.2 percent 85% 15% 100%

The management of resettlement funds is same with that of original RP. Please refer to the original RP.

37 8 Resettlement Organization

The resettlement implementation and institutional organizations for the project have been established consistent with the structure proposed in the Draft RP, and there have been no changes or modifications proposed. Nanchang Zhongrui Modernist Consulting Co., Ltd. (hereinafter, “Zhongrui”) is the external resettlement and social M&E consulting agency of the Jiangxi Pingxiang Integrated Rural-Urban Infrastructure Development Project (Contract CS2). Zhongrui entered into a contract with the Pingxiang PMO in April 2018 and will provide consulting services for the Project according to the terms of reference and the contract at the implementation stage. The external monitoring reports shall be prepared on semi-annual basis during the implementation of resettlement plan provisions including the implementation of the livelihood restoration program. A resettlement completion report will be prepared after 12 months of the completion of the land acquisition, compensation and resettlement activities. These reports will be submitted to ADB for review and disclosed subsequently on ADB website.

9 Grievance and Appeal

The grievance redress mechanism is same to that in original RP which has been disclosed to affected villages and households in the consultations conducted in DMS, while the contact information has been updated. Any concerns of AHs could be raised by the GRM and will be addressed properly by relevant departments. The resettlement agencies have updated the persons who are chiefly responsible to accept and handle grievances and appeals, and the relevant information are shown in Table 9-1.

Table 9-1 Accepting Agencies and Staff of Grievances and Appeals Agency Contact Position Address Tel. Director of Lianhua No.313, Jincheng Lianhua PMO Li Shaohua 18079960077 Water-control Avenue, Lianhua County Bureau Technician of Lianhua No.313, Jincheng Lianhua PMO Huang Hu 18079900070 Water-control Avenue, Lianhua County Bureau Worker of No.313, Jincheng Lianhua PMO He Rongfang Lianhua 18679965081 Avenue, Lianhua County Sub-PMO Qinting People’s Deputy township Qinting Town Liu Tongzhu Government of Lianhua 13767868194 head County Jinjia village committee Jin Secretary of the Jinjia Village of Qinting Town, Lianhua 13030561198 Wangming branch village County Huatang village Li Secretary of the Huatang Village committee of Qinting 13767868320 Chenglong branch village Town, Lianhua County Shuguang village Secretary of the Shuguang Village Chen Zhijian committee of Qinting 18679961113 branch village Town, Lianhua County

38 10 Resettlement Implementation

According to the subproject implementation schedule, the implementation schedule of LAR is formulated in Table 10-1 which might be adjusted because of deviation of the project schedule. See Table 10-1.

Table 10-1 Schedule of Resettlement Implementation Agency No. Task Target Time Remarks responsibility 1 Information disclosure 1 township, 3 administrative 1.1 RIB Lianhua PMO March 2020 villages and 10 village groups Disclosure of the updated 1.2 ADB March 2020 RP on ADB’s website 2 Updated RP and budget

Approval of RP and Lianhua County 28,141,655.10 2.1 budget (including Government, and March 2020 yuan compensation rates) PMO

1 township, 3 Village-level income administrative 2.2 Village committee March 2020 restoration plan villages and 10 village groups 3 DMS 3 administrative Lianhua PMO and DMS on the affected Jul.2019-Sep. 3.1 villages and 10 Lianhua Land & done villages 2019 village groups Resources Bureau 4 Compensation agreement Lianhua PMO Village-level land 4.1 10 village groups Lianhua Land & Apr– July.2020 compensation agreement Resources Bureau Household land Apr– August 4.2 66 HHs Village committee compensation agreement 2020 5 Implementation of livelihood restoration measures Distribution of land Township compensation fees to Apr -August 5.1 3 villages government, and AHs and land 2020 village collectives reallocation (if possible) Implementation of 5.2 village-level income 3 villages Village collectives Apr– Dec 2020 restoration Township, village Advice on income collectives, Apr– August 5.3 restoration, commerce 66 AHs Lianhua Labor and 2020 and work Social Security Bureau Lianhua Labor and Implementation of May 2020 – 5.4 66 AHs Social Security training program May 2021 Bureau Identifying vulnerable Lianhua Labor and June –Sep 5.5 households and 14 HHs,22persons Social Security done 2019 implementing assistance Bureau, and PMO

39 Agency No. Task Target Time Remarks responsibility measures

PMO, Lianhua Hiring APs at the Labour and Social May 2020 5.6 construction stage (job About 180 APs Security Bureau, - Oct.2021 solution) and contractors 6 Capacity building Training of staff of Pingxiang PMO Mar – Apr 6.1 15 persons Lianhua PMO and PMC 2020 Training of county and Apr to May 6.2 60 persons Lianhua PMO, IA township officials 2020 7 M&E Appointing Zhongrui 7.1 company as the external 1 Pingxiang PMO Sep.2019 done M&E agency Internal monitoring Pingxiang and Start from 7.2 Quarterly report Ongoing reporting Lianhua PMOs Jan.2019 July 2020 No.1 External monitoring 7.3 Semiannual report the monitor Jan 2021 No.2 reporting July 2021 No.3 External evaluation 7.4 annual report the monitor Jan 2022 report 7.5 Post-evaluation report One report Lianhua PMO July 2022 Lianhua PMO, township 8 Public consultation Ongoing government, the monitor 9 Grievance redress Lianhua PMO Ongoing 10 Disbursement of compensation fees Lianhua County Mar – 10.1 Disbursement to IA Initial funds People’s Apr.2020 Government/PMO Apr- July 10.2 Disbursement to villages Most funds IA 2020 IA, and village Apr- Aug 10.3 Disbursement to AHs Most funds committees 2020 11 Commencement of civil construction Lianhua Lianjiang River & Baima River Lianhua PMO and 11.1 Apr 2020 Integrated Improvement Project IA

40 11 Monitoring and Evaluation In order to ensure a smooth implementation of resettlement plan and realization of aim of resettlement, a periodically monitoring and evaluation of LA and resettlement activities will be carried out in accordance with the requirements of ADB’s resettlement policies. The resettlement monitoring includes internal monitoring of resettlement institutions and external monitoring. 11.1 Internal Monitoring The arrangement for internal monitoring including responsible agencies, M&E contents and indicators and reporting are same to those in original RP. 11.2 External Monitoring The arrangement for external monitoring including M&E contents and indicators, methodologies, frequencies and so on are same to those in original RP except M&E reporting arrangement. Nanchang Zhongrui Modernist Consulting Co., Ltd. (hereinafter, “Zhongrui”) is the external resettlement and social M&E consulting agency of the Jiangxi Pingxiang Integrated Rural-Urban Infrastructure Development Project (Contract CS2). Zhongrui entered into a contract with the Pingxiang PMO in April 2018 and will provide consulting services for the Project according to the terms of reference and the contract at the implementation stage. According to current resettlement implementation schedule, the external resettlement M&E will be submitted to the ADB as per Table 11-1.

Table 11-1 Timetable for Submission of External Monitoring Reports No Report Reporting period Date From LAR commencement to 1 1st monitoring report July 2020 June 2020 2 2nd Monitoring Report July ~Dec 2020 Jan 2021 3 3rd Monitoring Report Jan ~ July 2021 July 2021 4 1st Evaluation Report / Jan 2022 Resettlement completion 5 / July 2022 report

41 Appendix 1 Due diligence of changes of land acquisition and housing demolition 1. Background and this Due Diligence Report With the social and economic development of Lianhua county, some components have been completed by domestic funding since project preparation, therefore some components have been dropped out of ADB project. The sewage treatment component of Lianhua County, mainly pipeline network projects, has been cancelled, and the component of improvement of rivers has been slightly varied due to design optimization and completion by domestic funding, which were summarized as follows. (1)The integrated improvement of the Lianjiang River is 13.32km long, including 13.32km of river dredging, 11.243km of new bank, and 0.628km of new anti-flood wall. There are 2 new diplopore pilotage culverts with 3.0m×2.0m, 5 new single-hole drainage culverts with 3.0m×2.0m, 2 new single-hole drainage culverts with 2.5m×2.0m; 17 new self-draining culvers in Φ1.0, and 1 new hydraulic dam. These improvement projects, including the right bank of the upper Lianjiang River from the Tangdu Bridge to the Dongmen Bridge, the left bank from new Furong bank to Dongmen Bridge, the right bank from Dongmen Bridge to Nanmen Bridge, the right bank from the confluence of Manfang to the Manfang Bridge, and the left bank from Dongmen Bridge to Lianhuabi have been completed by domestic funds, and won’t use ADB funds any longer. (2)The integrated improvement of the Baima River Project is 7.72km long, including 7.72km of river dredging, 9.426km of new bank, 0.784m of new masonry stone retaining wall, and 0.985m of new reinforced concrete retaining wall. The retention segment of the river is 1.229km (there is a partial renovation). There are 11 new self-draining culverts in Φ1.0, 4 new single-hole pilotage culverts with 3.0m×2.0m, and 1 new diplopore drainage culvert with 3.0m×2.0m. The Baima River from the confluence of the Maojia Bridge to the Manfang Bridge has been completed by domestic funds, and won’t use ADB fund. In order to ensure land acquisition and resettlement of the components that were proposed to use ADB loan, while have been completed by domestic funds has been implemented in compliance with China’s laws and regulations and ADB safeguard policies, this due diligence of LAR was conducted. The purpose of the due diligence is to:  Verify resettlement impacts and implementation;  Verify resettlement policies and compensation rates;  Verify resettlement funds and payment;  Review and evaluate information disclosure and functioning of GRM, and,  Propose corrective actions if any remaining issues regarding LAR.

2. Methodologies In order to carry out the due diligence, the following methods were adopted, including literature review, symposium, depth interview and investigation method of observation and review of project approval and other relevant documents The affected households and village committees were consulted and interviewed in the form of symposiums, and the related stakeholders (such as project owner, local authorities and township governments) were interviewed, and visits to the project site were carried out.

42 Table A-1 Research Methodology and Implementation No. Methodology Object Time Approval documents, policies, 1 literature method Nov.2017 Engineering research report, etc County housing and construction bureau, county urban management 2 depth interview bureau, county development and Dec.2017 reform commission, QinTing town, etc Yangjian village Jinjia village 3 symposium Shuguang village Nanmen village, Apr.2018 etc Yangjian village Jinjia village 4 questionnaire survey Shuguang village Nanmen village, Nov.2017-Apr.2018 etc

3. Project LAR Impact According to the survey, a total of 174.5 mu of land was acquired by the project implemented with domestic funds, including 57.1 mu of dry land, 112.3 mu of paddy land and 5.1 mu of woodland, which affected 49 households with 200 persons. A total of 1990 ㎡ of houses were demolished, affecting 15 households with 51 persons. No vulnerable group and ethnic minorities were affected. See Table A-1 and Table A-2.

Table A-1 Land Acquisition Impact Paddy Dry land Woodland AHs APs Town Village Group field(mu) (mu) (mu) (HH) (person) The 2nd group 7.2 4.1 1.2 4 17 Yangjian The 3rd group 9.8 3.4 2.2 5 18 The 2nd group 3.8 3.1 0.6 2 9 Lianhua The 3rd group 6.3 2.6 0.2 3 11 The 1st group 12.4 4.2 0 5 23 Jinjia The 2nd group 5.8 3.1 0.2 2 9 The 3rd group 7.2 1.8 0 3 11 Qinting The 1st group 10.1 4.1 0.3 4 15 Town The 2nd group 6.7 4.7 0 3 14 Shuguang The 4th group 9.3 2.6 0 3 13 The 5th group 8.5 2.4 0.1 2 9 The 1st group 6.4 7.1 0.2 4 16 The 2nd group 7.2 5.3 0 3 14 Nanmen The 3rd group 7.5 4.7 0.1 4 13 The 5th group 4.1 3.9 0 2 8 total 112.3 57.1 5.1 49 200

Table A-2 Housing Demolition Impact Brick-concrete Brick-wood AHs APs Town Village Group structure structure (HH) (person) The 1st group 321 66 2 5 Nanmen The 2nd group 0 43 1 4 Qinting The 1st group 421 32 3 9 Shuguang Town The 4th group 479 77 4 13 The 1st group 245 74 3 11 Jinjia The 2nd group 196 36 2 9 Total 1,662 328 15 51

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4. Resettlement Policies and Compensation Standards The LAR was carried out in terms of the laws, regulations and policies of “The Law of Land Administration of the PRC”, “The Opinions on Improving the System of Compensation and Resettlement for Land Expropriation”, “The Measures of Jiangxi Province for the Implementation for the Law of Land Administration of the PRC”, “The Notice of Jiangxi Province Government on Adjustment of the Uniform AAOV Rates and Integrated Land Section Price for Land Compensation” (JPG[2015] No.81), and reference of the compensation standards for land expropriation of similar projects in nearby area. The compensation standards for collective land acquisition in Qinting Town were implemented as the rates in Table A-3 and Table A-4, which are higher than the original plan.

Table A-3 Compensation Standards for the Acquisition of Collective Land

Compensation standards (yuan/mu)

Paddy field, paddy Township vegetable plot, high-yield Dry land, dry land Woodland, orchard, artificial tea garden, collective high-yield oil tea garden, homestead construction land fishpond Qinting Town 38,185 25,584 13,365

Table A-4 Compensation Standards for Green Crops on the Ground

Compensation standards (yuan/mu)

Township Paddy field, paddy vegetable plot, Dry land, dry Woodland, high-yield orchard, artificial land tea garden waste land high-yield oil tea garden, fishpond Qinting Town 2,250 1,513 1,513

The components involved rural residential house demolition. According to the survey, two resettlement ways were provided for displaced households, which are monetary compensation and new house site provided by government where displaced households (DP) could build houses by themselves. In addition, subsidies including relocation, transition, decoration and new house site were offered to DPs. The compensation standards for house demolition were set up in Table A-5 which were referred to the compensation standards for similar projects in Lianhua County in the same period.

Table A-5 Compensation Standards for Residential Houses Structure Unit Unit (yuan/unit) Remarks Brick-concrete ㎡ 560 Brick-wood ㎡ 436 Simple ㎡ 180 Shed ㎡ 120 Telephone set 200 Cable TV set 200 Broadband set 200 Tap water set 200

44 Structure Unit Unit (yuan/unit) Remarks Relocation subsidy HH 800 Transition subsidy HH 2,000 One-time subsidy Decoration subsidy ㎡ 120 Brick-concrete structure Subsidy for new home site purchase HH 30,000 Rural residential houses

5. Livelihood Restoration The affected village groups and households have been provided cash compensation. The AHs carried out agricultural development and non-agricultural activities by themselves after they got the monetary compensation. The livelihood restoration measures included planting fine vegetables, growing seedlings in greenhouse, developing fruits planting, and scale farming. The AHs have been provided special employment supply and demand meetings, surplus agricultural labor forces employment service, employment information, labor security rights protection, legal advisory support, and non-employment assistance. It was reported that 45 persons have been covered by LLF’s program. 6. Relocation of Residential Houses According to the survey, the relocation of house demolition has been completed. Among 15 households, 2 households opted for cash compensation and 13 households opted for house site. The details are as follows: There are two kinds of resettlement plans that rural residents can choose: one is monetary compensation, which monetary compensation for the residents’ main and subsidiary houses of the demolished households according to the replacement price of the houses in the corresponding areas. Their ground attachments and vacant space in front and back of houses shall be compensated in cash in lump sum according to the corresponding standards, and no longer be resettled or converted into resettlement houses. The other is house site exchange, which the area of the housing site is over 60 ㎡ (including 60 ㎡) will be arranged in the resettlement area at a ratio of 1:1 in principle .At the same time, according to the replacement price of houses, monetary compensation was made for demolished houses ground attachments. DHs used monetary compensation for demolition of houses to rebuild their own houses according to unified planned house sites by local government. 7. Compensation Payment According to the consultations and interviews, the agreements on LA and HD have been signed, and the relocation of DHs have been completed. It was verified that the resettlement compensation have been paid to AHs/DHs in a timely manner.

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Figure A-1 Compensation Agreements

8. Public Participation, Information Disclosure and Grievance Redress 8.1 Participation, Information Disclosure Lianhua PMO paid great attention to the participation and consultation with the residents involved in resettlement to make the residents involved to participate in the detailed survey of resettlement impacts and to confirm the survey results as well as to select the resettlement mode; to announce the resettlement policies, to convene the resettlement village level mobilization meeting, extensively take the opinions of the residents involved in resettlement and disclose relevant information such as policies concerning land acquisition and demolition in a timely manner. The conducted public participation and information disclosure are summarized in Table A-6 and A-7. Table A-6 Public Participation Key issues Incorporation of Time Contents Participant discussed issues raised Lianhua PMO, resettlement survey of Oct.2017-Jan.20 consultant team, affected socio-econo livelihood raise income 18 units, villages, village groups mic impact and APs. identification area of LA, Lianhua PMO, project design Reasonable Jan.2018-May.20 of the compensation rates, unit, affected villagers and compensation and 18 quantity of resettlement residents. placement LA and HD approaches Lianhua Sub-PMO, Lianhua Land Resources Bureau, Compensati Lianhua County People’s May.2018-Jun.20 Compensation fees Reasonable on standards Government and its relevant 18 and payment modes compensation for LA units, representatives of affected units, villages, village groups and APs. Lianhua People’s Government, Lianhua Jun.2018-Oct.20 Compensati Sub-PMO, resettlement Compensation fees Reasonable 18 on plan of LA consultant team, affected and payment modes compensation villages, village groups and APs. Table A-7 Information Disclosure Time Document Mode of Publicity Introduction to the project work and Newspaper and Bulletin Boards of Town October-November 2017 project announcement and Village Committees Bulletin Boards of Town and Village January-October 2018 Project resettlement policy Committees, Villager Meeting November 2018 Resettlement booklet In Chinese, issued to person involved in

46 Time Document Mode of Publicity resettlement 8.2 Grievance Redress In the process of land acquisition and personnel arrangement, the person involved in resettlement can report and appeal through the following channels in case of difficulties in production and life encountered or doubts and dissatisfaction with compensation and resettlement: project owner, governments at each level, complaint division and legal proceedings. The responsible agencies with focal persons and contact information responsible for complaints have been widely informed to the affected village groups, and households. According to survey, Lianhua PMO had not received any complaints regarding LAR so far. 9. Conclusion In terms above information and analysis, it could be concluded that: 1) The LAR of components by domestic funds had been completed; 2) The resettlement policies and rates were compliance with China’s laws and regulations and ADB’s safeguard requirements, and all compensation have been paid; 3) The relocation of DPs had been completed. 4) The public participation and information disclosure had been well implemented, and APs were informed the GRM widely, and no complaints had been received by Lianhua PMO so far. 5) There are no remaining issues regarding LAR. The LAR had been implemented successfully.

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