Resettlement Plan

Project Number: 51192-001 September 2019

People’s Republic of China: Inner Mongolia Regional Cooperation and Integration Promotion Investment Program

Prepared by the Government of Damaoqi County 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. Your attention is directed to the “terms of use” section on ADB’s website.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Resettlement Plan – Inner Mongolia Subproject (Draft)

Project Number: September 2019

PRC: Inner Mongolia Regional Cooperation and Integration Investment Program

Prepared by the Government of Damaoqi County for the Asian Development Bank

Abbreviations

ADB Asian Development Bank APs affected persons DI design institute DDR Due Diligence Report EA executive agency EMDP ethnic minority development plan EMs ethnic minorities FSR feasibility study report GRM grievance redress mechanism HD house demolition HH household HDO Housing Demolition Office IA implementing agency IMAR Inner Mongolia Autonomous Region LAR land acquisition and resettlement LA land acquisition PMO Project Management Office TRTA Transaction technical assistance PRC People’s Republic of China RP resettlement plan ROs Resettlement offices SPS Safeguard Policy Statement NRB Nature Resources Bureau WF Women Federation

Contents

1. PROJECT OVERVIEW ...... 1 1.1. PROJECT OVERVIEW ...... 1 1.2. OPTIMIZING PROJECT DESIGN TO REDUCE RESETTLEMENT IMPACTS ...... 4 2. PROJECT IMPACTS ...... 6 2.1. METHODOLOGY AND PROCEDURES ...... 6 2.2. IMPACT AND RISKS IDENTIFICATION ...... 6 2.3. IMPACTS OF ACQUISITION OF STATE-OWNED CULTIVATED LAND ...... 10 2.4. IMPACTS ANALYSIS OF GRASSLAND ACQUISITION ...... 10 2.5. AFFECTED VULNERABLE GROUPS ...... 11 2.6. AFFECTED ETHNIC MINORITIES ...... 12 2.7. AFFECTED GROUND ATTACHMENTS AND INFRASTRUCTURE ...... 12 3. SOCIOECONOMIC PROFILE OF PROJECT AREAS ...... 13 3.1. SOCIOECONOMIC STATUS ...... 13 3.2. SOCIOECONOMIC PROFILE OF AFFECTED PEOPLE ...... 14 3.2.1. Affected Population ...... 14 3.2.2. Age ...... 15 3.2.3. Occupation ...... 15 3.2.4. Households Assets ...... 16 3.2.5. Income and Expenditure ...... 17 3.2.6. Summary ...... 17 4. LEGAL FRAMEWORK AND POLICIES ...... 18 4.1. LAWS REGULATIONS AND POLICIES APPLICABLE TO RESETTLEMENT ...... 18 4.2. ADB’S POLICY REQUIREMENT ON INVOLUNTARY RESETTLEMENT ...... 19 4.3. DIFFERENCES BETWEEN ADB AND PRC POLICIES AND GAP-FILLING MEASURES ...... 19 4.4. ELIGIBILITY AND BENEFICIARIES ...... 22 4.5. COMPENSATION RATES ...... 22 4.5.1. Compensation Standards for Collective Grassland ...... 22 4.6. OTHER FEES ...... 24 4.7. ENTITLEMENT MATRIX ...... 25 5. RESETTLEMENT MEASURES AND RESTORATION ...... 26 5.1. RESETTLEMENT & RECOVERY PLAN FOR COLLECTIVE GRASSLAND ...... 26 5.2. JOBS AND OPPORTUNITIES CREATED IN PROJECT ...... 26 5.3. SKILLS AND OTHER TECHNICAL TRAINING ...... 28 5.4. PROTECTION OF WOMEN’S RIGHTS ...... 29 5.5. ETHNIC MINORITY DEVELOPMENT ...... 30

6. PUBLIC PARTICIPATION AND GRIEVANCE REDRESS ...... 31 6.1. CONSULTATION CARRIED OUT AT PREPARATION STAGE ...... 31 6.1.1. Completed Public Consultations ...... 31 6.2. PUBLIC PARTICIPATION AND CONSULTATION PLAN ...... 38 6.3. APPEAL PROCEDURES (GRIEVANCE REDRESS MECHANISM) ...... 40 6.4. APPEAL CONTACT INFORMATION ...... 41 7. ESTIMATED LAR BUDGET ...... 43 7.1. LAND ACQUISITION AND RESETTLEMENT BUDGET ...... 43 7.2. DISBURSEMENT FLOW AND PLAN OF RESETTLEMENT FUND ...... 46 7.2.1. Disbursement flow ...... 46 7.2.2. Disbursement Plan ...... 47 8. ORGANIZATIONAL STRUCTURE AND RESPONSIBILITIES ...... 48 8.1. RESETTLEMENT ACTION AGENCIES ...... 48 8.2. ORGANIZATIONAL CHART ...... 48 8.3. DAMAOQI COUNTY ADB LOAN PROJECT MANAGEMENT LEADING GROUP ...... 49 8.4. DIVISION OF RESPONSIBILITIES AMONG AGENCIES ...... 50 8.4.1. Damaoqi County ADB Project Leading Group ...... 50 8.4.2. PMO ...... 50 8.4.3. Damaoqi County Department of Natural Resources ...... 50 8.4.4. Mandula Town ...... 51 8.4.5. Affected Village/Committee ...... 51 8.4.6. Design Institute ...... 52 8.5. MEASURES TO STRENGTHEN INSTITUTIONAL CAPACITY ...... 52 8.5.1. Training Program for Resettlement Management Staff ...... 52 9. RESETTLEMENT IMPLEMENTATION SCHEDULE ...... 53 9.1. WORK BEFORE RESETTLEMENT IMPLEMENTATION (RP UPDATING) ...... 53 10. MONITORING AND EVALUATION ...... 56 10.1. INTERNAL MONITORING ...... 56 10.1.1. Purpose ...... 56 10.1.2. Organization and Staff ...... 56 10.1.3. Scope of Internal Monitoring ...... 56 10.1.4. Internal Monitoring Reporting ...... 57 APPENDIX 1: DDR OF MANDULA PORT ISOLATION SITE AND BREEDING SHEEP EXPANSION BASE MUTTON SHEEP INDUSTRY COMPREHENSIVE DEVELOPMENT INTEGRATION PROJECT ...... 59 APPENDIX 2: LAND STATEMENT OF MANDULA PORT INTERNATIONAL (ROAD) LOGISTICS PARK SERVICE AREA ...... 97

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APPENDIX 3: LAND STATEMENT OF MANDULA PORT (ROAD) LOGISTICS PARK CUSTOMS SUPERVISION PLACES ...... 99 APPENDIX 4: RESETTLEMENT INFORMATION BOOKLET (RIB) ...... 101 APPENDIX 5: RELEVANT LAWS AND POLICIES OF CHINA AND INNER MONGOLIA ..... 110

List of Tables

Table 1-1: The Main Project Components ...... 1 Table 1-2: Comparison of Affected Areas before and after Project Optimization ...... 5 Table 2-1: Summary of Project Impacts ...... 7 Table 2-2: LA Situation of Each Subproject ...... 8 Table 2-3: Specific Land Acquisition of Each Subproject ...... 10 Table 2-4: Land Loss Rate Analysis on Grassland ...... 11 Table 3-1: Demographic Profile of Surveyed Households ...... 15 Table 3-2: Educational Levels of the APs...... 15 Table 3-3: Labor Force Distribution ...... 16 Table 3-4: Income of the Affected Households in 2018 ...... 16 Table 3-5: Expenditure Per Household of the Affected Households ...... 17 Table 4-1: Compensation Standard of Grassland in Damaoqi County ...... 23 Table 4-2: Other Related Fees ...... 24 Table 4-3: Entitlement Matrix ...... 25 Table 5-1: Acquired Land Area and Compensation ...... 26 Table 5-2: The Estimated Positions Created in Mandula Port International Logistics Park Road Upgrading Project ...... 27 Table 5-3: The Estimated Positions Created in Mandula Port Quarantine and Sheep Breeding Center Mutton Sheep Industry Comprehensive Development Integration Project ...... 27 Table 5-4: Training Plan ...... 29 Table 6-1: Public Participation During Project Preparation Stage ...... 34 Table 6-2: Public Participation Plan ...... 38 Table 6-3: Contact List of the Project ...... 41 Table 7-1: Resettlement Cost Estimate ...... 44 Table 9-1: Project Implementation Schedule ...... 54 Table 9-2: Resettlement Implementation Milestone ...... 54 Table 10-1: Progress Report on Resettlement for LA ...... 57 Table 10-2: Progress of Fund Utilization ...... 58

List of Figures

Figure 6-1: Grievance Redress Flowchart ...... 41 Figure 7-1: Flowchart of Resettlement Fund Disbursement ...... 46 Figure 8-1: Resettlement Organizational Chart ...... 48

List of Pictures

Picture 1-1: Mandula Port International Logistics Park Road Upgrading Project Site Selection Diagram ...... 3 Picture 1-2: Mandula Port International Logistics Park Road Upgrading Project Location Map ...... 3 Picture 1-3: Mandula Port Quarantine and Sheep Breeding Center Mutton Sheep Industry Comprehensive Development Integration Project Site Selection Diagram ...... 4 Picture 2-1: The Status of the Grassland to be Acquired ...... 7 Picture 3-1: Socioeconomic Questionnaire Survey on Affected People ...... 14 Picture 6-1: Public Participation ...... 32 Picture 6-2: Public Participation Activities During Project Preparation Stage ...... 33

DEFINITION OF TERMS

For involuntary resettlement, the resettlement refers to people whose physical displacement (relocation, loss of residential land, or loss of shelter) and economic displacement (loss of land, assets, access to assets, income Resettlement sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. Cash or in kind to which the affected persons (APs) are entitled to replace Compensation the lost assets, resources or income sources.

Range of measures comprising compensation, income restoration, transfer assistance, and relocation to which APs and affected households (AHs) are Entitlement entitled depending on the nature of losses to restore their economic and social bases. Loss of physical and non-physical assets, including homes, communities, Resettlement productive land, income-earning assets and sources, subsistence, Impact resources, cultural sites, social structures, networks and ties, cultural identity, and mutual help mechanisms A time-bound action plan with a budget setting out land acquisition and Resettlement Plan resettlement strategy, entitlements, responsibilities, and monitoring and evaluation arrangements Vulnerable Distinct groups of people who might suffer disproportionately from land Group acquisition and resettlement impacts. They include the disabled, ‘five- guarantee’ households, female-headed households, low-income

households and ethnic minorities.

Executive Summary A. Background Background. The Investment Program will deliver five major outputs: (i) Key infrastructure and services for cross-border connectivity improved; (ii) Living conditions including ecological environment and medical services in key border towns improved; (iii) SMEs base in cross border businesses expanded; (iv) Inclusive and resilient sheep value chain developed; and (v) Regional cooperation mechanism, technical, project management and institutional capacity strengthened.

Scope of Tranche 1. Tranche 1 will finance five subprojects that are representative of the scope and financing amounts of investments to be supported under later tranches of The Investment Program. These subprojects will generate five outputs. Output 1 will lead to improved key infrastructure and services for cross-border connectivity, by building road, customs inspection facilities including smart port system, port servicing facilities; Output 2 will result in improved ecological and environmental living conditions in key border towns by building wind-breaking tree bands and improving solid waste collection and treatment; and Output 3 will improve SMEs in cross-border businesses by providing credit to SMEs in cross border business in IMAR. Output 4 will integrate poor households into the inclusive and resilient sheep value chain to achieve poverty alleviation. Under the Output 5, regular RCI policy dialogue mechanism will be set up to facilitate the communication between PRC and Mongolia. Furthermore, on-job training and ADB project management and implementation training will be provided to improve overall institutional capacity.

B. Project Composition The subproject has two outputs, including: (1) Mandula port international logistics park road upgrading: the total investment of the project is CNY 611.34 million, mainly including the expansion project of freight passage at Mandula port, service area of international road logistics park at Mandula port, and customs supervision place of road logistics park at Mandula port. (2) Mandula port quarantine and sheep breeding center mutton sheep industry comprehensive development integration project: the total investment of the project is CNY 607.57, and the main construction contents include the construction of fine breeding base, the construction of Mandula port animal quarantine, the upgrading and transformation of breeding base, the construction of traceability management system, the fund for poverty alleviation of mutton sheep industry, and the construction of Tuyou banner slaughtering and processing logistics base. Among them, the newly rebuilt and expanded infrastructure mainly includes four parts: 1 newly built fine breeding base; 1 newly built Mandula port animal quarantine; 5 reconstructed breeding bases; 1 newly built slaughter and processing base.

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C. Resettlement Impacts The land acquisition of this sub-project is caused by Mandula port international logistics park road upgrading. Total of 1170.77 mu of land will be occupied by this project, in which: (1) The expansion project of freight passage at Mandula port will acquire 362.11 mu land of Eerdengaobao village in Mandula town, including: [i] 279.11 mu of village collective land (grassland), of which 114.31 mu belongs to village collective grassland of Eerdengaobao village, without APs; 164.80 mu collective grassland is owned by herdsmen of Eerdengaobao village, affecting 3 households with 12 people, all of whom are ethnic minorities (Mongolian). [ii] occupying 83 mu of state-owned construction land, without APs. (2) Mandula port international road logistics park service area project will occupy 366.90 mu of state-owned land (construction land), without APs. (3) Mandula port road logistics park customs supervision site subproject will occupy 441.76 mu of the state-owned land (construction land), without APs. (4) In addition, Mandula port quarantine and sheep breeding base mutton sheep industry comprehensive development integration project: 5 breeding bases are reconstructed projects, the original construction has completed the land transfer process, and obtained the collective land use certificate before it starts ; 1 slaughtering and processing base is the land transferred by the government, which has obtained the land use certificate and completed the land acquisition before the transfer. A grassland transfer agreement has been signed in an animal quarantine, and the transfer had been done, and the payment of compensation had been paid timely and fully, no remaining issues were left. Therefore, in accordance with the SPS of the ADB, DDR have been prepared for the road that has completed land acquisition and related sub-projects of land acquisition and land transfer, to understand the real situation, as well as the compensation and resettlement of APs, without complaints (See Appendix 1). Those affected households will still be provided with training and other project-related opportunities as part of this RP.

(5) Institutional Capacity Building and Strengthening.

D. Policy Framework and Entitlement This resettlement plan is formulated in conformity with the policies of People's Republic of China as well the related policies in Inner Mongolia and ADB Safeguard Policy Statement. The project is guided by the following principles: avoid and minimize LA and involuntary resettlement by identifying and comparing a range of alternative design approaches; (ii) Compensation and subsidies based on the principle of replacement cost; (iii) as much as possible, sufficient land area per capita should be ensured to maintain the original living

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standards of the AHs; (iv) All APs are adequately informed of their rights, compensation proportion and standards, livelihood and income recovery plans, and project schedule; (v) No land acquisition activities shall be carried out until the APs have been fully compensated and assistance provided; (vi) There should be sufficient resettlement funds to cover LA impacts of the subproject; and close monitoring and timely action should be taken to identify and resolve any problems relating to LA, and resettlement. E. Ethnic Minorities EM households with 12 persons are affected by the subproject, they are mainly Mongolians. Socio-economic surveys have shown that ethnic minorities in the project area are mixed with other groups. Although some EM households are affected by LA, there is no EM group that has been broken down into several parts as a result of relocation. The subproject will not affect their traditional rights to use land and resources. They will receive the same land compensation and resettlement fees as Han will receive, and they will get the priority in receiving project employment. F. Public Participation and Negotiation During the project preparation stage, all information about the implementation of the subproject were disclosed after many negotiations were conducted. Public consultation and negotiations will continue during the implementation period as well. The concerns of the affected population and their views have been included in the RP. The local government will disclosure the resettlement plan at the affected communities and at village offices. The RP will also be uploaded on the ADB website. A Resettlement Information Booklet (RIB) will be distributed among the AHs. G. Grievances and Appeals

Damaoqi County subproject PMO has established a detailed complaint and appeal procedure. APs can rely on passages of appeal at all levels of the town and township. These responsible organizations must respond to any complaint within a certain period of time. The affected people may lodge a complaint on any aspect of LA, and resettlement of the subproject. All appeals will be recorded and monitored by PMO. H. Institutional Arrangement

The project implementation agency is: Damaoqi County people's government; project implementation agency: Damaoqi County ADB PMO. The IA shall set up a full-time institution according to the composition of its members, with experienced long-term full-time staff and specialized management information system. Relevant staff can cross-serve with the leading group office (ADB PMO) to ensure smooth communication. All relevant departments will work closely with PMO to carry out LA activities as per the approved RP.

I. Resettlement Costs and Funds

The total cost of LA and resettlement is CNY 11.02 million yuan, Damaoqi County subproject IA needs to ensure that there is enough resettlement fund to solve all the resettlement problems in time. J. Implementation Schedule

It is planned that all the departments will work together and commence land acquisition works from March 2020 to May 2020.This RP will be updated following final technical design, DMS, consultation and disclosure, final relocation and restoration strategy; and will be submitted to ADB for review and concurrence. It is note that the Land acquisition work can be commence, under the conditions of the Updated RP is satisfactory to ADB. K. Monitoring and Evaluation

The RP has included detailed internal monitoring and evaluation plans. The methodology for monitoring is detailed in the RP. Each IA will conduct internal monitoring to ensure that project implementation is consistent with the RP. During the implementation of the subproject, the Daomao Joint Banner PMO will conduct internal monitoring and submit a progress report to the ADB in every six months for review. A project completion report will be prepared within 6 months after completion of all LA activities.

1. Project Overview

1.1. Project Overview

1. The Investment Program will deliver five major outputs: (i) Key infrastructure and services for cross- border connectivity improved; (ii) Living conditions including ecological environment and medical services in key border towns improved; (iii) SMEs base in cross border businesses expanded; (iv)

Inclusive and resilient sheep value chain developed; and (v) Regional cooperation mechanism, technical, project management and institutional capacity strengthened.

2. Scope of Tranche 1. Tranche 1 will finance five subprojects that are representative of the scope and financing amounts of investments to be supported under later tranches of The Investment Program.

These subprojects will generate five outputs. Output 1 will lead to improved key infrastructure and services for cross-border connectivity, by building road, customs inspection facilities including smart port system, port servicing facilities; Output 2 will result in improved ecological and environmental living conditions in key border towns by building wind-breaking tree bands and improving solid waste collection and treatment; and Output 3 will improve SMEs in cross-border businesses by providing credit to SMEs in cross border business in IMAR. Output 4 will integrate poor households into the inclusive and resilient sheep value chain to achieve poverty alleviation. Under the Output 5, regular RCI policy dialogue mechanism will be set up to facilitate the communication between PRC and Mongolia. Furthermore, on- job training and ADB project management and implementation training will be provided to improve overall institutional capacity.

3. For Mandula, the table below present the main project components.

Table 1-1: The Main Project Components

Subproj No. Description Main Contents ect

Expand the five-in-five-out freight passage at Mandula port, with a The expansion total length of 4.4 km and width of the existing road for 9 m. After project of freight the completion, to realize the standard of four lanes in both passage at Mandula directions, the width of redline expand to 24.5m. At the same time, port implement ancillary projects, including greening, isolation belt, marking and marking lines, closing fences and monitoring video. On the east side of Mandula port international logistics park, the upgrade Mandula port new built service area of Mandula port international road logistics the international park will be built, the planned land will be 366.90 mu, the closed Mandula highway logistics parking area and repair service area will be built, and 1 new Port park service area comprehensive service building (3 floors) will be built, including 1 Interna- project accommodation, catering, shops and related supporting facilities tional and equipment. Highway The customs supervision site of Mandula port international road Logistics logistics park will be built on the west side of Mandula port Park Mandula port international logistics park, covering an area of 441.76 mu, mainly highway logistics including 1 fully enclosed storage greenhouse (automation), 1 park customs comprehensive office building (2 floors), site hardening, road supervision site network framework and network facilities supporting the road subproject network. Water supply, drainage, heating, lighting, telecommunications, monitoring, traffic signs, marking lines, signal lights and other ancillary projects Upgrading sheep It mainly includes feeding room, green storage cellar, dung storage stud breeding base field, crematorium, sick sheep isolation house. (No.4 ranch) Expansi Construction of It mainly includes sheep house, mobile fence, supporting houses, on of quarantine station in supporting facilities, sheep platform, grass shed, internal roads Sheep Mandula Port construction, and bounding wall building. Stud It mainly includes sheep house renovation, management room Breeding renovation, enclosure top surface solar panel renovation, enclosure Bases Upgrading five outside the activity field fence, trough, enclosure wall maintenance, 2 and sheep farming bases sewage pipe network, road renovation, main road renovation, Mutton auxiliary road renovation, wall renovation, hydropower engineering, Industry greening. Compre Establishment of It mainly includes network equipment, video monitoring equipment, hensive product tracing and big data center, breeding base supporting equipment, processing Develop management system base supporting equipment, sales system supporting equipment. ment Promote the implementation of industrial poverty alleviation Funds for poverty projects through a variety of modes such as "companies + bases + alleviation of mutton cooperatives + farmers (poor households)", "bringing farmers into sheep industry gardens" and "sharing and sharing".

It mainly includes slaughtering circle, slaughtering and processing Reconstruction of workshop, cold storage, refrigerator, insulation system, Tuyou banner comprehensive research and development building, sundries slaughtering and storage, sewage treatment workshop, boiler room, fire room, processing logistics vehicle shed, site hardening, sheep slaughtering and dividing base production line, lamb finishing machining production line.

Picture 1-1: Mandula Port International Highway Logistics Park Upgrading Project Site Selection Diagram

Picture 1-2: Mandula Port International Highway Logistics Park Upgrading Project Location

Map

Picture 1-3: Mandula Port Quarantine and Sheep Breeding Center Mutton Sheep Industry Comprehensive Development Integration Project Site Selection Diagram

1.2. Optimizing Project Design to Reduce Resettlement Impacts

4. At the engineering design phase, the impacts of LAR are to be avoided or minimized. The key principles in this regard are:

Ø To avoid or minimize the occupation of existing and planned residential areas (rural and

urban);

Ø To avoid or minimize the acquisition of high-quality arable land/grassland;

Ø To use existing state and local roads towards to the proposed construction area;

Ø To avoid or minimize the occupation of environmentally sensitive areas; and

Ø To select the resettlement areas in line with the local development plan.

5. The road right-of-way (ROW) selection is to be combined with existing roads to avoid or reduce occupancy of existing building and cultivated land and house demolition to minimize adverse resettlement impacts.

6. The original planned upgrading project of Mandula international port road logistics park, including the upgrading and expansion project of freight passage at Mandula port, the service area project of international road logistics park at Mandula port, and the sub-project of customs supervision site of road logistics park at Mandula port. It will permanently acquire 1491.37 mu land, affecting 8 households and 34 people. After field investigation and consultation in affected villages, the PMO, RP preparation team and design institute have optimized the project to reduce the

resettlement impact, and all sub-projects have reduced the impact of LA as far as possible.

Therefore, the PMO adjusted the red line for the expansion of the freight passage (from the original

50 meters to 24.5 meters). After the optimization of the project, 372.26 mu of grassland expropriation and 188.34 mu of state-owned land occupation were reduced, and the people affected by LA was also reduced by 5 households and 22 people. (see table 1-2).

Table 1-2: Comparison of Affected Areas before and after Project Optimization

Before After Items Reduction Optimization Optimization LAmu Total 1491.37 1079.11 412.26 Collective land Subtotal 651.37 279.11 372.26 acquisitionmu Grassland 651.37 279.11 372.26

State-owned land Subtotal 891.66 1080 188.34 occupationmu State-owned construction 891.66 1080 188.34 land Households affected by 8 3 5 grassland acquisitionHHs Persons affected by grassland acquisition 34 12 22 Direct APs Persons Affect minority household 8 3 5 HH Affected EMsperson 34 12 22

Data resources: Project design and resettlement social survey (August 2019)

2. Project Impacts

2.1. Methodology and Procedures

7. On July 18, 2019, TRTA resettlement specialists held a training workshop on the RF of resettlement plan (RP), the first batch of central Asia regional cooperation projects in

Inner Mongolia, at the Shangri-La hotel in Hohhot. The workshop introduced the relevant

LAR policies of PRC and ADB and the requirements of RP.

8. During August 14 to August 22, 2019 with the assistance of the experts of TRTA,

Damaoqi County PMO and RP preparation agency organized for relevant staff a detailed survey of the physical indicators of the affected population, houses, land and special facilities, as well as the affected residents and rural collective economic organizations.

9. The surveys were conducted in a combination of field investigation, data collection and inquiry, questionnaire survey and interview. Socio-economic survey was gender- sensitive. Women were consulted to elicit their opinions and suggestions; and the findings were included in the RP.

Land acquisition and socio-economic survey: The survey team surveyed the area

of the acquired land by ownership and type after the DI defined the range of land

acquisition by field setting-out. No house demolition survey was carried out since there

are no houses or structures on the land to be acquired. All households were

interviewed as part of the socio-economic survey.

Investigation of special facilities: the investigation of water conservancy, power,

telecommunications and other special facilities affected by the project, it is confirmed

that no special facilities are affected.

2.2. Impact and Risks Identification

10. At this stage, LA impact of this sub-project is determined according to the recommended scheme determined at the feasibility study stage of Damaoqi County project. The land acquisition of this sub-project is mainly caused by the infrastructure construction of Mandula port freight passage expansion project. This sub-project will affect

1 village (Erdenaoba village) in 1 town (Mandula town). The project construction will

acquire 1170.77 mu of land. Of which 279.11 mu are collective land (grassland) (including

114.31 mu of village collective grassland, without APs), affecting 3 households with 12 people, all of whom are Mongolian; and 891.66 mu of state-owned land (construction land)

Table 2-1: Summary of Project Impacts

Items Total

Township 1 Mandula town Village/community 1Eerdengaobao village Total LAmu Total 1170.77 Collective land Subtotal 279.11 acquisition (mu) Grassland 279.11 State-owned land Subtotal 891.66 occupation (mu) State-owned construction land 891.66 Households affected by 3 grassland acquisitionHHs Persons affected by grassland Direct APs 12 acquisitionPersons Affect minority householdHH 3 Affected EMsperson 12

SourceSocio-economic survey in August 2019

Picture 2-1: The Current Status of the Grassland to be Acquired

Table 2-2: LA Situation of Each Subproject Land use right transfer which had been Tot LA impact of Mandula townRP) completedDDR al LA impact Acq lan Affected population N State- Colle Affected population uire d o Subproject owned ctive Affecte Min d Min are Minori Minori . constr gras d A A orit area Affected villages A A orit a ty ty uction slan village H P y H P y mu house house land d s s s peo mu s s peo holds holds mu mu ple ple Mandul Eerden Mandula port cargo passage 362. 279.1 1 a port 83 gaobao 3 3 12 ------expansion project 11 1 2 internati village onal Mandula port international logistics 366. 366.90 ------logistic park road and service area 90 s park 1 road Mandula port international logistics 441. upgradi park road customs surveillance 441.76 ------76 ng area project 117 279.1 1 Subtotal 891.66 3 3 12 ------0.77 1 2 Mandala Construction of Mandula port Guhulongtuvillag 2 200 ------200 1 4 1 4 Port animal quarantine service center. e

Isolatio 4 236. 236. 20 n Site No.1 meadow ------Dengkou village 6 6 6 74 74 00 and 0 Breedin 2 178. 178. Donghulutou 75 g and No.2 meadow ------0 2 3 69 69 village 6 Expandi 3 ng Base 2 263. 263. 70 Meat No.3 meadow ------Dajing village 3 2 4 1 1 8 Sheep 5 Industry Rebuilding and expanding the Dushoujiang 4 12 Compre seed-breeding base and No.4 765 ------765 1 2 village 7 1 hensive ranch Develop Shangbafen 4 11 Guyang meadow 90 ------90 1 1 ment village 3 8 Integrati Tuyou banner Construction of Tuyou banner 92.8 92.8 on ------new industrial 0 0 0 0 slaughter-process logistics base 8 8 Project park 9 182 1826 37 Subtotal ------8 13 20 6.41 .41 07 9 9 299 279.1 1 1826 37 Total 891.66 -- 3 3 12 -- 8 13 20 7.18 1 2 .41 07 9 Data source: Socio-economic survey in August 2019.

2.3. Impacts of Acquisition of State-owned Cultivated Land

11. The project will occupy 891.66 mu of state-owned construction land, of which:

(1) the expansion project of freight passage at Mandula port will occupy 83 mu of state- owned construction land, without APs.

(2) Mandula port international highway logistics park service area project will occupy

366.90 mu of state-owned land (construction land), without APs.

(3) Mandula port highway logistics park customs supervision site subproject will occupy

441.76 mu of the state-owned land (construction land), without APs.

Table 2-3: Specific Land Acquisition of Each Subproject

State-owned

Item Subproject construction land Remarks

The expansion project of freight 83 Mandula port passage at Mandula port

international Mandula port international highway 366.90 logistics park logistics park service area project

road upgrading: Mandula port highway logistics park 441.76 customs supervision site subproject

Subtotal 891.66

Data source: Socio-economic survey in August 2019. 2.4. Impacts Analysis of Grassland Acquisition

12. The 279.11 mu of grassland to be acquired by this project is the Grade IV grassland, which belongs to Eerdengaobao village, Mandula town, including:

(1) 114.31 mu belongs to the collective grassland of Eerdengaobao village, which has not

been allocated to individuals. Therefore, without any APs.

(2) 164.80 mu of grassland is owned by herdsmen, affecting 3 households with 12 people,

all of whom are Mongolian ethnic group.

13. The survey indicated that each household owns a large area of grassland, and the total grassland area owned by the 3 affected households is 30185.70 mu, the per household possession of grassland is about 10061.90 mu. Table 2-4 shows that the average grassland loss rate is between 0.13%-1.42%; the total land loss rate of the 3 HHs is 0.56%; and the average land loss rate is 0.58% for the Mongolian. In Damaoqi County, herdsmen have a large number of grassland, because of the ban on grazing, there is a large number of subsidies for ban on grazing. From the above data, it can be seen that the area of grassland expropriation is small, and the impact on herdsmen is very small. It can be seen that grassland acquisition will have little impact on herdsmen. The details are shown in table 2-4.

Table 2-4: Land Loss Rate Analysis on Grassland

Family Land Area LA Loss Rate% No Ethnicity member of before LA Areamu

household mu 1 Mongolia 5 9166 129.70 1.42% 2 Mongolia 4 11868.70 23.00 0.19% 3 Mongolia 3 9151 12.10 0.13% Total 12 30185.70 164.80 0.56% SourceSocio-economic survey August 2019 2.5. Affected Vulnerable Groups

14. Vulnerable groups in the subproject areas refer to those individuals and their families whose living standard is lower than CNY5700 (Yuan/month/person) of rural net per capita income, including orphans, aged people, handicapped people, mentally disabled persons, impoverished people, and women-headed households.

15. According to the socio-economic household survey and confirmed by Mandula town government and village committees, no vulnerable groups will be affected by the subproject.

16. According to the survey, it indicated that the lowest net per capita income of APs is above CNY 5700 (Yuan/year/person), which is higher than rural minimum living standard.

According to survey data, there were no orphans, aged, handicapped, mentally disabled,

impoverished persons, and women-headed households in the subproject area. Therefore, there are no vulnerable group in the project areas.

2.6. Affected Ethnic Minorities

17. LA will affect 3 minority households with 12 persons, all of whom is Mongolian. They live together with the other EM groups. No ethnic minority group will be broken into small segments by relocation. Land resource user rights of EMs will not be affected by LA. The affected EM households enjoy equal social status, and economic status the Han nationality, and retain their group characteristics in cultural habits and religious belief systems. For this 3 minority households (Mongolian), their main income is from subsidies for grazing prohibition. Grassland acquisition won’t affect their traditional lifestyle, PMO will be in accordance with the national policy to give them the reasonable compensation, and provide priority training on project labor, technical training, livestock farming and epidemic prevention and so on; In terms of language, the Mongolian people also have their own language and characters, and all the 3 affected herdsmen can communicate in Chinese.

2.7. Affected Ground Attachments and Infrastructure

18. According to the survey, there are no attachments or infrastructure involved in this subproject.

3. Socioeconomic Profile of Project Areas

19. A socioeconomic survey was carried from 14-22 August 2019 to ascertain how LA impact on APs. The survey was supplemented with interviews, observations and consultations with APs and government agencies who are engaged in the subproject. 20. The different methods used to collect information and data also helped to communicate to APs the scope of the subproject and how it impacts on them. 21. Based on the findings of various field methods, the PMO has worked out LA compensation measures and prepared the production restoration plan in accordance with what the APs. 3.1. Socioeconomic Status

22. Damaoqi Countycounty level: Damaoqi County, full name Daerhanmaomingan

Joint Banner, is one of the 20 urban banner/city areas and 33 animal husbandry banners in Inner Mongolia Autonomous Region. It is adjacent to the Siwangzi Banner of Wulanchabu city in the east, Wulate Banner of Byannaoer city in the west, Wuchuan county of Hohhot city and Guyang county of Baotou city in the south and Mongolia in the north, with border of 88.6 kilometers. It has jurisdiction over 7 towns, 2 townships and 3 villages, with a total area of 18,177 square kilometers and a total population of 120,000 in 2018. Of the 18,300 ethnic minorities, majority are Mongolian ethnic groups at 95% (17,300 population) and the rest are from Hui and Manchu ethnic groups. It is the only border minority area in Baotou city with Mongolian as the main body, Han nationality as the majority and multi-ethnic settlement. Bailingmiao town, where the banner government is located, is about 160 kilometers away from both Hohhot and Baotou city as well as within the 2-hour radiation circle of the economic zone of Hohhot, Baotou and Hubei. It has the Hangji port of Mengmandula, which is open all year around, is one of the important passageways for Hohhot, Baotou and Hubei to open to the north. Damaoqi County is rich in agricultural and animal husbandry resources, with 16,600 square kilometers of natural grass pasture and 1.2 million mu of arable land and potatoes, beef, mutton, fur and other animal products sold nationwide. In 2018, the GDP of the whole region increased by 3.7% year-on-year; total retail sales of consumer goods increased by 6.2%; the per capita disposable income of permanent residents in urban and rural pastoral areas reached 39,978 yuan and 15,257 yuan, up by 7.4% and 10.9% respectively. 23. Mandula town: Mandula town is located in the northeast of Damao unitied banner. It is adjacent to Chaganhada town in the southeast, Benqihuayin town in the west and bordered by Hadengbaolihe county of Donggebi province of Mongolia in the north. It has a national border of 49 kilometers, accounting for 55% of the border of baotou city. Mandula town covers a total area of 1,874 square kilometers and has jurisdiction over two village

and one industrial garden district, namely Erdenaobo village, Bayinghala village and Talasaihan industrial park. Based on the existing data, as of November 2015, the total population of the town was 581 households with 1,478 people, including 505 agricultural and animal husbandry households with 1236 people. The per capita income of the town reached 13,970 yuan. 24. Eerdengaobao village Erdenaobo village belongs to Mandula town, reaching

Bayinhala village in the east, Jihulongtu village of Bayinhua town in the west, Bayinsaihan village of Chaganhasa town in the south and Mongolia in the north. Total of 339 households with 708 of population, including ethnic minority group 195 households with 563 people, the grassland area is 1.62 million mu, the irrigated land area is 5700 mu, the per capita grassland area is 2,393 mu, the per capita irrigated land area is 8.4 mu. The main industry is animal husbandry, with a per capita income of 8,850 yuan. 3.2. Socioeconomic Profile of Affected People 25. From 14-22 August 2019, PMO and nature resources bureau organized relevant staff to conduct a detailed survey of the affected population, houses, land and special facilities.

Picture 3-1: Socioeconomic Questionnaire Survey on Affected People 3.2.1. Affected Population 26. This socio-economic survey covered all three affected households. The demographic characteristics of the APs are shown in Table 3-1, including different gender, age,

population composition, education and occupation. Among which, 9 are male, and 3 are female. Table 3-1: Demographic Profile of Surveyed Households

Item Male Female Total % ≤6 2 2 16.67% Age 18-30 2 2 16.67% 31-65 4 4 8 66.67% Preschool 2 2 16.67% Primary School 3 3 6 50.00% Education Junior High School 1 1 8.33% Senior High School or Technical 1 1 8.33% Secondary School Junior College or above 2 2 16.67% Unmarried 4 4 33.33% Marital Status Married 4 4 8 66.67% Husbandry 5 3 8 66.67% Teacher 1 1 8.33% Occupation Student 1 1 8.33% Preschool 2 2 16.67% SourceSocio-economic survey in August 2019, Household sample: n=3 HHs. Population sample: n=12 3.2.2. Age 27. As the affected households are only 3 households with 12 people, the impact amount is small and the age structure is relatively simple, so the analysis is relatively simple. Among the 12 persons in 3 households, there are 2 preschoolers (males) younger than 6 years old, and 2 persons (males) aged between 18 and 26 years old; 8 people aged between 30 and 65, 4 men and 4 women. As shown in table 3-2, among those affected people in the project, half of them have received primary education; one of the affected population is receiving a bachelor's degree and one has completed a university degree. Women in the affected groups are less educated and need further improvement. Table 3-2: Educational Levels of the APs.

Age Male Female Total Studying Age Beyond Studying Age

2 are receiving ≤6 2 0 2 n/a kindergarten 1 is receiving college 7-25 1 1 n/a education Among these 9 people, 1 junior college degree, 1 technical secondary 26-65 5 4 9 n/a school degree, 1 junior middle school degree, 6 primary school degree SourceSocio-economic survey in August 2019, Household sample: n=3 HHs. Population sample: n=12 3.2.3. Occupation

28. In this survey, 8 of the surveyed labor forces are engaged in animal husbandry, while engaged in animal husbandry, 1 of them will go out to work, and 2 for trucking; 1 is engaged in education. As shown in table 3-3: Table 3-3: Labor Force Distribution

Occupation/Source of Income Male Female Total Remark Animal Husbandry 5 3 8 Included in Outside Workers 1 1 the animal husbandry Transportation Included in 1 1 2 the animal husbandry Teacher 0 1 1 Total 5 3 8 Remark: Only the labor force participants were counted in table 3-3. 3.2.4. Households Assets 29. The affected households are herdsmen in Eerdengaobao village. Among the three affected families, all are engaged in animal husbandry. The economic income of the three families affected by land acquisition and house demolition is shown in table 3-4. 30. From the table 3-4, it can be seen that the income source of affected households is mainly from animal husbandry. In addition to animal husbandry production, family members also choose to go out for work or transport to increase family income as well as government subsidies such as border subsidies, education subsidies and so on. Among them, income from animal husbandry accounted for 60.60%, wage income 11.56%, subsidies 11.24%, working income 9.37% and business service income 7.23%. The income of affected herdsmen families is shown in table 3-4. Table 3-4: Income of the Affected Households in 2018 UnitYuan/Year/Person Per Income of the affected capita Income source % herdsman incom e 18866. 60.60 Animal husbandry 226392.75 06 % 2916.6 Working 35000 9.37% 7 2250.0 Business (service) 27000 7.23% 0 3600.0 11.56 Wage 43200 0 % Other income (government border subsidies, 3500.0 11.24 42000 education subsidies) 0 % 31132. 100.00 Total 373592.75 73 % SourceSocio-economic survey in August 2019, Household sample: n=3 HHs. Population sample: n=12

3.2.5. Income and Expenditure 31. The survey results show that the average expenditure of affected pastoral households is large in living expenses and clothing expenses, accounting for 36.92% and 13.92% of the total income respectively, followed by transportation expenses accounting for 13.63%. The average expenditure of affected households is shown in table 3-5. Table 3-5: Expenditure Per Household of the Affected Households

Affected Households Item Expenditure per household %

Water charge 500.00 0.85% Electric charge 1520.00 2.59% Heating fee 4766.67 8.12% Living expenses 21666.67 36.92% Clothing 8166.67 13.92% Education 6166.67 10.51% Medical cost 3833.33 6.53% Transportation 8000.00 13.63% Communication 2400.00 4.09% Other 1666.67 2.84% Subtotal 58686.67 100.00%

3.2.6. Summary 32. All of the APs are herdsmen. While engaged in animal husbandry, the young labor force will choose to work outside or in the transport industry or employed in Damaoqi County to earn an additional income. 33. Now more women earn incomes and have greater voice on important household matters, such as children’s education and daily purchases. They also assume the responsibility of taking care of children and doing housework. Women would take part in social activities and play an important role in family. 34. According to the survey, women’s concerns about resettlement are essentially the same as those of men: (i) Compensation standard of land, compensation for land should be available promptly; (ii) The job opportunities created by the implementation of the project are expected to be considered for women, so that women can also participate in the project. (iii) In case of affected herdsmen, they should be compensated without any delay and at reasonable rates based on national policies and the policies and laws of Inner Mongolia Autonomous Region and Baotou city. They should get training in livestock management. With such knowledge they can manage their herds well and earn more income from their herds.

4. Legal Framework and Policies 4.1. Laws Regulations and Policies Applicable to Resettlement 35. The resettlement policies of the project have been developed in accordance with the laws and regulations of the PRC, and ADB’s policies, including: ADB policies: Ø Safeguard Policy Statement (2009) Laws and regulations of the PRC Ø Land Administration Law of the PRC (effective from January 1, 1999, amended on August 28, 2004) Ø Regulations for the Implementation of the Land Administration Law of the People's Republic of China (effective from January 1, 1999 and revised on July 29, 2014) Ø Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28) (effective from October 21, 2004) Ø Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (MLR [2004] No.238) (effective from November 3, 2004) Ø Property Law of the PRC (Decree No.62 of the PRC, effective from October 1, 2007) Ø Notice of the Ministry of Finance and the Ministry of Land and Resources on Adjusting the Levy of Use Fees Paid to New Construction Land in Some Regions (CZ [2009] No.24) Ø Administrative Measures for Pre-examination of Land for Construction Projects "(no. 42 of the ministry of land and resources, effective from January 1, 2009) Ø Guidelines of the Ministry of Land and Resources on Improving the Compensation and Resettlement System for Land Acquisition (effective from November 3, 2004) Ø Opinions of the State Council on Solving Housing Difficulties of Urban Low- income Families (GF [2007] no. 24) Ø From 21 January 2011 to implement "The levy and Compensation Ordinance for Houses on State-owned Land" (Issued by People's Republic of China State Council No. 590, effective from January 21, 2011) Ø Note of " The levy Assessment Approach for the Houses on State-owned land ", CB [2011] No. 77 Ø The PRC Law of Grassland (effective from 1 October 1985, and amended on 28 December 2002

Ø The Requisition and Occupation of Grassland on the Examination, Approval and Administration Policy (People's Republic of China Ministry of agriculture, 58th), effective from March 1, 2006 Policies of Inner Mongolia Autonomous Region Ø Measures of the Inner Mongolia Autonomous Region for Implementing the Land Administration Law of the People's Republic of China (amended in 2012) Ø Notice of the People's Government of Inner Mongolia Autonomous Region on the Issuance of the Administrative Measures for the Collection and Use of Grassland Vegetation Recovery Fee (internal affairs issue no. 8 [2012]) Ø The General Office of the People's Government of Inner Mongolia Autonomous Region, "Notice on Promulgating the Implementation of the Unified Annual Output Value of Land Acquisition in the Autonomous Region and the Comprehensive Land Price of the Land Acquisition Area" (Internal Affairs Office [2018] No. 4) Ø Standards for Administrative Fees in the Land and Resources System of Inner Mongolia Autonomous Region Ø Notice of the General Office of the People's Government of the Inner Mongolia Autonomous Region on the Implementation of the Regulations of the Inner Mongolia Autonomous Region on the Acquisition and Compensation of Houses on State-owned Land (no. 15 of the internal affairs office [2012]) Ø Detailed Rules for Implementing the Grassland Law of the People's Republic of China in Inner Mongolia Autonomous Region Ø Opinions of the People's Government of Inner Mongolia Autonomous Region on Further Improving the Basic Old-age Insurance System for Urban and Rural Residents (internal affairs office [2015] no. 21) 4.2. ADB’s Policy Requirement on Involuntary Resettlement 36. The objectives of ADB's Involuntary Resettlement Policy are (i) If possible, involuntary resettlement should be avoided; (ii) If resettlement is unavoidable, all feasible options should be explored and the scope of resettlement should be minimized as much as possible; (iii) Ensure that the displaced persons can maintain their pre-project economic and social conditions; and (iv) Improve the living standard of displaced poor and other vulnerable groups. 4.3. Differences between ADB and PRC Policies and Gap- Filling Measures 37. The main aspects of the national legal system include the collective land acquisition, the procedures for transferring collective land to the state, house demolition on collective land in rural areas, and house demolition on state-owned land in urban areas triggering the

need for compensation and relocation of displaced persons, households, and communities. Key gaps between SPS of ADB (2009) and the PRC’s regulatory framework and how to the bridge them are discussed below.

(i) identification of poor and vulnerable groups during the risk and impact screening process.

38. Specific to vulnerable households (men, women, ethnic groups), they are identified by the Government as those who belong to the (i) Five-Guarantee program (the elderly, weak, widowed and disabled members who are unable to work and have no means of living, or whose households lack labor) who are being provided with production and living assistance (e.g. food, clothing, fuel, education and burial expenses) and (i) those eligible for the Minimum Living Guarantee System and are provided with living subsidy each month. Furthermore, identification of the poor and vulnerable households can be only done during the implementation phase of a project.

39. Those who are not considered as vulnerable groups as per Government’s definition but may become at risk of being vulnerable or experience hardship due to impacts of LA/HD; i.e., may need special support during the transition period (e.g. during relocation such as provision of labor, transport) will also be identified and will be provided with necessary assistance.

40. Those being ethnic minority, elderly, and women-headed-households but do not fall under the Government criteria requires greater in-depth assessment during DMS to determine their vulnerability factor.

41. In this subproject, no poor and vulnerable households were found. However, it will be verified during RP updating.

(ii) Lack of documentation on the consultation and information disclosure activities, and grievances received.

42. Meetings and interviews held with the affected households are reflected in the RP and will continue to be documented during RP updating and implementation. The grievance redress will also be documented as part of the monitoring reports. Disclosure of the key information in the RP will be carried out through the distribution of resettlement information booklets in local language.

(iii) Inadequate social and risk analysis as resettlement planning is focused on loss of land and impacts on houses.

43. Social impact assessment was carried out during RP planning through the conduct of socio-economic surveys, consultation meetings, inventory of losses, and key informant interviews. Gender analysis was also carried out. Such measures led to the preparation of project entitlements, livelihood support, and gender strategies; and they are reflected in this RP.

(iv) Assistance to households who are not eligible for compensation of houses at replacement cost.

44. Based on the Regulations on the Demolition and Compensation of Houses on State- owned Land (2011), the illegal houses and temporary structures which were constructed after the approval period will not be compensated. However, if the APs belong to the vulnerable groups and in need of housing, they will be assisted in securing affordable housing or low-rent housing which is according to the Regulations to Solve the Housing Difficulties for the Low Income HHs issued by State Council [GF 2007, No 24], affordable housing and low-rent housing should be provided to the households who have housing difficulties. The owners of demolished houses can apply for affordable housing and low- rent housing assistance.

45. Compensation for non-land assets will be paid at their replacement cost. Resettlement assistance will be provided to those who lost their legal houses when they meet the Project’s cut-off date to move out. If an earlier cut-off date has been established by the Government, the Government’s cut-off date will be followed, provided that the following conditions are met: (i) copy of Halt Notice for Land Acquisition and House Demolition/pre- notice for Land Acquisition and House Demolition published, (ii) documents confirming dissemination of information (billboards, minutes of public meetings, letters to households, newspapers, websites, broadcast, etc.), and (iii) confirmation from households that they were informed about the cut-off-date verbally and in writing. For households who are not eligible for compensation for houses at replacement cost, the reason as to why the structure has no certification/license; and their socio-economic conditions, and vulnerability will be assessed by the Project (through its local government and concerned bureaus) to determine the necessary assistance that can be provided to them to ensure that they will be able to at least to restore their living standards and will not be worse-off because of the subproject. 46. In the subproject area, there are no illegal houses

(v) Inadequate monitoring and reporting arrangements

47. Monitoring is not being done on a regular basis. Each implementing agency has its own procedures of monitoring and documenting the project process.

48. In this subproject, regular monitoring and submission of monitoring reports will be carried out. Monitoring reports will be disclosed to the public. All monitoring reports will be submitted to ADB for review and the reports will be posted on PMO and ADB websites.

4.4. Eligibility and Beneficiaries 49. The cut-off date for eligibility for the compensation is the time when the Project is officially announced to the affected villages by the government of Mandula town. Announcement will be disclosed through distribution of resettlement information booklet or posting notices in the village community boards. Any newly claimed land, newly built house or settlement in the project area by the APs after this date will not be entitled to compensation or subsidization. 4.5. Compensation Rates

4.5.1. Compensation Standards for Collective Grassland 50. The construction of the expansion project of Mandula port freight passage will involve the acquisition of 279.11 mu (Grade IV) of Eerdengaobao village of Mandula town. In order to strengthen the protection, management, construction and rational utilization of grasslands and safeguard the vital interests of herdsmen of all ethnic groups, the people's government of Inner Mongolia Autonomous Region issued the notice on the collection and use of grassland vegetation recovery fees (internal affairs issue no. [2012] No. 8), which came into effect on January 1, 2012. The grassland compensation fee shall be compensated in accordance with the uniform annual output value of land expropriated by the Inner Mongolia autonomous region according to the notice of the general office of the people's government of the Inner Mongolia autonomous region on promulgation of the standard for uniform annual output value of land expropriated by the region and the comprehensive land price expropriated by the region (No. 4 [2018] issued by the internal affairs office, effective from April 1, 2018) issued by the Inner Mongolia autonomous region government. 51. The acquired grassland is Grade IV, identified by the Department of Natural Resources of Damaoqi County of No. 39 of the PRC Law of Grassland and 9th, 10th and 11th of Ministry of Agriculture for the Requisition and Occupation of Grassland on the Examination, Approval and Administration. According to the notice of the general office of

the people's government of the Inner Mongolia Autonomous Region on promulgation of the standard of uniform annual output value of land expropriation and comprehensive land price expropriation in the autonomous region (No. 4 [2018] issued by the internal affairs office, effective from April 1, 2018), the government of the Inner Mongolia Autonomous Region has promulgated the uniform annual output value of land expropriation. The grassland compensation standard is calculated as 30 times of the average annual output value of the three years prior to the expropriation of the grassland, namely (92.97*30=2789 yuan/mu). The compensation standard of Damaoqi County grassland is shown in table 4- 1 below. Table 4-1: Compensation Standard of Grassland in Damaoqi County Unit: yuan/mu Unified Standard Correction annual Times of of unified Area/district Description factor output compensation annual value production pasture Shibao town (Shibao village, Wanertu village, Guluzhou village, Dasuji village, Saiwusu village, Xingfu village, Kunduitan village, Wendubuling village, Diansubulang village, Hongshan village) Wuke town Wukehudong village, Donghe village, Dahanhai village, Niancaowan village, Daxitan village, Dongshanpan village, Wulanwudong village, Damaohudong village, Taiping village, Erliban village, Class I 518.16 25 12954 1.00 Saihudong village , Xihe township (Xihe village, Dechengyongcheng, Shilanhada village, Shilawenge village, Benbutai village, Qianhe village, Delinggou village, Changhan village Xiaogongwen village Xiaogongwen village, Sailin village, Boluotu village, Dajing village, Changhan village, Huangheshao village, Xiguaizi village, Xigedan village, Laduijiu village Xilamuren (Baiyannaoer village, Huhediansu village, Halawusu village Bailingmiao townSouth part of Bailingmiao village Mingan townHugejiritu village, Class II 105.53 30 3166 1.00 Narenbaolige village Daerhan town Alatengaodu village, Hashatu village, Eerdengaobao village Bayinaobao town Dabuxilatu village Mingan townXilachaolu village, Sharutala village, Bayintala village, Bayinmandula village, Bayinhanggai village Baiyanhua townAolonghudong village, Wulanbaolige Class III 101.57 30 3047 1.00 village, Baiyanaobao village Daerhan town Chaganaobao village, Xilahada village Bailingmiao townNorth part of Bailingmiao village Chaganhada town

Hadahashao village, Bayinsaihan village, Narenbaoligevillage Bayinaobao town Bayinhua village, Bayinwulan village, Wulanchabu village, Gerileaodu village, Maodukundui village, Wulanbaolige village Mandula town Baiyinhalavillage, Eerdengaobao village Baiyanhua town ClassIV Jihulongtuvillage, Baiyinchaganvillage, 92.97 30 2789 1.00 Kailinghevillage Chaganhadatown Tenggenaoervillage Data Source: Department of Natural Resources (August 2018) 52. Since the acquired grasslands in this project are collective grassland, most of them are owned by herdsmen, except a few of which are owned by village collective. The herdsmen have the right of land ownership (the grassland certificate), hence, according to the grassland law, all the land compensation for the acquisition of the collective grassland of village will be directly compensated to Eerdengaobao village; for the acquired grassland of the herdsman, the land compensation and resettlement fee shall be fully compensated to the herdsman according to the actual construction. 4.6. Other Fees 53. This project belongs to the public utility construction project, the state-owned land will be acquired by means of allocation, there is no need to pay the state-owned land transfer fee, but some necessary land procedures need to be gone through. 54. In addition to the state-owned construction land, cultivated land, grassland, unused land and other types of land, the use fee for new construction land shall be paid by the land-use unit to the Department of Natural Resources, and the land type shall be converted to state-owned construction land. In addition, for the acquisition of grassland, a grassland restoration fee shall be paid to the local grassland department. The grassland restoration fee of this project is 2500 yuan/mu. Table 4-2: Other Related Fees

Standard Items Unit Remarks (CNY) All the fees 2 New construction land occupancy charge m 10 will be paid to Department of Grassland recovery fee mu 2500 Natural Resources and Land occupation tax m2 40 department of grassland

4.7. Entitlement Matrix

Table 4-3: Entitlement Matrix Type of Impact Scope Entitlements Remarks Impact Collective grassland of 279.11 mu in Eerdengaobao village

114.31 mu Cash compensation will be paid to village Compensation belongs to committees. Then the village committee will fee for Grade Eerdengaobao discuss with the affected households on how IV grassland: village to use cash compensation for the village and 92.97*30=2789 collective and the herdsmen; yuan/mu. Collective

grassland

164.80 mu All the land compensation fee and Joint signature belongs to resettlement fee will be paid to the herdsmen of husband and herdsman, in full. wife on the compensation affect 3 HHs documents. with 12 APs, all Other or various livelihood measures include of them are free skills training, access to employment Mongol opportunities, voluntary enrolment on social nationality security insurance to ensure that their incomes and/or livelihoods are fully restored and sustainable.

5. Resettlement Measures and Restoration 5.1. Resettlement & Recovery Plan for Collective Grassland 55. Through the grassland supervision station and the responsible person of Eerdengaobao village, grassland of Eerdengaobao village belongs to village collective, except a small amount grassland owned by village collective, most of them are owned by herdsmen and they have the land ownership. Therefore, the compensation for all acquired collective grassland will be directly paid to Eerdengaobao village and the compensation for the grassland of herdsmen will be directly paid to the herdsmen. 56. In this sub-project, the impact of grassland acquisition is mainly caused by Mandula port freight passage expansion, affected people will lose only a small amount of their land. Therefore, land acquisition has little impact on herdsmen’s production and income. According to the land-loss analysis in table 2-2, among the three affected households, the land-loss rate is 0.13% at the minimum and 1.4% at the maximum, and the average land-loss rate is 0.55%. According to the social survey, the subsidy for banning grazing in this project is 7.5 yuan/mu, and the estimated annual income loss is 1236 yuan. It can be seen that the compensation cost of land acquisition is about 372 times of the income loss, and the compensation is far higher than the actual value of planting. See more details in table 5-1.

Table 5-1: Acquired Land Area and Compensation A. Estimated B. Compensation of LAten thousand Acquired income loss AHs land area ten B/A Land Resettlement fee Total mu thousand/year type

164.80 mu×2789 Grassland yuan/mu=0.4596 3 164.80 1236 45.96 372 million yuan

57. According to the survey, 3 affected households prefer to opt cash compensation. They wish to get the compensation timely and fully. Once they get the compensation, they want to invest compensation in learning skill and engage in business.

5.2. Jobs and Opportunities Created in Project 58. During project construction and operation period, the Damaoqi County PMO and Mandula town will give priority to the APs to participate in the project construction. For example, some positions without professional skills will be given to them; non-technical public welfare positions generated by the project will give on priority to vulnerable households during the project construction and operation (if any). Construction contractors present requirements including type of work and the number of workers to the local government

before entering the construction site and negotiate training matters so that more APs can benefit from it. During consultations with the APs, the APs would like to participate in the trainings. After the completion of Mandula port international logistics park road upgrading project, border trade, tourism and logistics will be greatly improved, .the port needs a large number of staff, including park service staff, green management workers, lighting maintenance and management workers, equipment and vehicle drivers, water supply and drainage maintenance, etc. In terms of estimation of the PMO and the DI, 787 of job opportunities will be created during the implementation and operation period of the project. The estimated jobs of the project are shown in table 5-2 and table 5-3. 59. The job opportunities will also be provided to the affected households who were already compensated for the existing freight passage, logistics park services and logistics park customs supervision zone of Mandula port international logistics park road upgrading project and the Mandula port quarantine and sheep breeding center mutton sheep industry comprehensive development integration project. (see DDR Appendix 1).

Table 5-2: The Estimated Positions Created in Mandula Port International Logistics Park Road Upgrading Project Item Mandula subproject Logistics park Freight Logistics park Position Type customs Subtotal passage service area supervision zone Temporary Jobs Technical 10 10 10 30 Created during Non- 40 40 40 120 Project technical Construction Subtotal 50 50 50 150 Technical 5 10 25 40 Permanent Jobs Non- Created during 5 40 5 50 technical Project Operation Subtotal 10 50 30 90 Total 60 100 80 240 Data Source: FSR and Damaoqi County PMO

Table 5-3: The Estimated Positions Created in Mandula Port Quarantine and Sheep Breeding Center Mutton Sheep Industry Comprehensive Development Integration Project Construction of Renovation Upgrading Tuyou Banner animal of breeding Ranch 1-4 Slaughtering and Job Chances Tyep quarantine Total bases for and Guyang Processing Logistics isolation site at breeding Ranch Base Construction Mandula Port Temporary Technical 2 4 10 2 18 chances during Non- 8 16 40 8 72 construction technical period Sub-total 10 20 50 10 90

Technical 22 22 10 5 59 Chances during Non- operation 50 50 110 10 220 technical period Sub-total 72 72 120 15 279 Total 100 82 92 170 25 Data Source: FSR and Damaoqi County PMO

5.3. Skills and Other Technical Training 60. In addition to monetary compensation to the APs, the PMO and Damaoqi County will facilitate the conduct of series of technical training for herdsmen affected by LA. The government will provide training subsidies. In this subproject, there are 16 training positions and each person will get two sessions of training. 40% of person-times of training will be reserve for women (See Table 5-4). 61. The PMO will facilitate and invite relevant technical personnel from livestock sector, labor and social security departments to conduct trainings to the APs. Each household will at least accept one-time breeding technical training and non-agricultural production training. Through these measures, skills will be improved to increase the economic income of those affected people. Vocational skill training shall be conducted by administrative departments of labor and social security, various education and training institutions, industries and employing units, with emphasis on breeding technology, business training and skill training. 62. In addition, according to the interview, there are two women cooperatives in Mandula town where they also provide training to herders on animal breeding. 63. Institutional framework: Damaoqi County Labor and Social Security Bureau is responsible for skills training, and the animal husbandry training shall be carried out by Mandula town with the cooperation of village/villages. The PMO will designate a special officer to be in charge of the training of the APs and to promote APs’ participation in skill training programs of the government. 64. It is noted that in addition to the 3 households affected by the project, the affected 989 households for whom have been completed land transfer (see Appendix 1 DDR), they are also the part of the subproject, the training matters also apply for them, and they can participate the training issues for free and priority. 65. Expenditure Guarantee: the subproject plans to spend 90,000 yuan on training expenses including funding, materials fee, printing materials fee, appraisal fee, fee for internship, and teachers’ salaries. The funds will come from the government of Damao baner and Mandula town, and related departments.

Table 5-4: Training Plan Estimated training Target Person- No Type of training costs Female Time groups times (10,000 yuan) Agricultural 2020.10- 1 APs 0.8 24 6 technique 2022.12 2020.10- 2 Breeding training APs 3.0 120 54 2022.12 2020.10- 3 Business training APs 2.1 100 40 2022.12 Skill training: Translator 2020.10- APs 4.0 180 105 Handicraft 2022.12 4 Tailoring Chef Other (such as 2020.10- new technic APs 0.9 50 20 2022.12 training) 5 Total 9.00 474 225

5.4. Protection of Women’s Rights 66. The project affects 12 people, including 4 women and 4 women are labor force. Women have and will continue to be fully involved in resettlement activities through information disclosure and village collective meetings. They have equal rights to compensation, employment and training. The following measures for women, including those who were affected by and compensated for their land (see DDR) are as follows: iAt the construction stage, at least 30% of new unskilled jobs will be reserved for women; wages for men and women will be equal; iiSkills training, including hourly workers, beauty salon, hotel service and other industries , will be first made available to affected female laborers to ensure their economic income, and at least 40% of the training population in this project are women; iiiAt the operation stage, cleaning, landscaping and environmental sanitation jobs will be offered to affected women; iv Affected women will receive relevant information and participate in public consultation and resettlement. v Affected women will receive relevant information and participate in public consultation and both resettlement. The compensation agreements must be signed by both spouses.

5.5. Ethnic Minority Development

67. Three households with 12 people of ethnic minorities are affected by LA, all of them are Mongolian. The village are mostly Mongolian ethnic groups. They live in harmony together with other ethnic groups. The affected ethnic minorities in this project enjoy the same social and economic status as the Han nationality but retain their national characteristics in life habits and religious beliefs.

68. The impacts on their land is minimal and compensation standards established, provision of skills training, and other project benefits will apply to affected households regardless of ethnicity. During the consulting period, we found that all the stakeholders including the Aps can understand and write Han language well, in such, all the FGDs as well as the consultation were conducted in Han language. No translators were engaged, by the way the resettlement agency who are not Mongolians.

6. Public Participation and Grievance Redress 6.1. Consultation Carried out at Preparation Stage 6.1.1. Completed Public Consultations

69. The PMO and Design Institute (DI), consultant agency for resettlement, local communities and APs shared project information on many occasions, especially during public consultations conducted from August 14, 2019 to August 22, 2019: (i) Design optimization discussions in order to minimize LA and resettlement impacts; (ii) Impact survey based on the FSR to get detailed information on population, houses, land, special facilities, APs; (iii) Consultation with managers of affected villages, to get the socio-economic background of affected villages and discuss the LA schemes, the compensation standards expected resettlement and production rehabilitation measures with the villagers; (iv) Meetings of villagers' representatives, including women and the elderly, to discuss LA schemes, compensation standards and rehabilitation proposals; and (v) Damaoqi County’s natural resources department, Mandula town and the affected village of Eerdengaobao village discussed the LAR issues and disclosed information with representatives of the resettlement preparation unit and with the affected residents. It also discussed the ADB SPS, policies and requirements, principle of replacement cost, grievance redress mechanism, importance of consultations and disclosure.

Picture 6-1: Public Participation and Consultations with APs 70. The public participation and consultation provided a basis for the improvement of the RP. In the process of consultation, Mongolian translators and staff were present to enable ethnic minority villagers to fully express their wishes and facilitate communication.

71. Through public participation meetings and socio-economic surveys, it was found that the concerns of AHs were mainly concentrated in the following aspects (i) Since the impacts of LA are not significant, the LA will have little impact of their incomes and livelihoods. Their only concern is whether the compensation can be paid on time. At the same time, it is better to carry out some farming, breeding, housekeeping, cook and other aspect training, like carrying out border training and translation training. (ii) During investigation and consultation, LA office of Mandula town, Eerdengaobao village and resettlement agency consulted with APs for LA compensation and resettlement issues about monetary compensation, all affected people who affected by land acquisition wish to receive monetary compensation. (iii) Due to the construction of the project, the construction process may cause noise, dust, construction waste; and have to take measures to deal with or mitigate pollutions; (iv) The project construction period and dates should be published promptly to inform the residents living nearby, let them know the inconvenience in advance; and (v) Providing them employment opportunities during the construction. 72. Based on the above discussions, the PMO (i) has developed land acquisition compensation standards and will inform to the APs in advance. After the agreement is signed, the land compensation will be paid timely;

(ii) discussed with Mandula town People's Government about APs most concerned issues, such as the resettlement work, and discussed with the labor and social security bureau about the relevant training issues for affected HHs; (iii) will provide special technical training to APs on industries, production processes, and will give priority to them in choosing non-technical workers during the construction and operation of subprojects; and (iv) has established and publicized transparent and effective GRM. The important consultation and conference questions during project preparation were listed in table 6-1.

Picture 6-2: Public Participation Activities During Project Preparation Stage

Table 6-1: Public Participation During Project Preparation Stage Number of Actions Taken or to be Location Date Participants Key Topics APs Concern Persons/Female taken Ø Introducing the Ø The PMO has background and formulated the purpose of the compensation project standard for acquired Ø how to minimize grassland as well as the cultivated LA the resettlement impacts scheme. The Ø Start LA as soon as Ø LA’s scope, land compensation possible PMO, Mandula town types and project standard will be Ø Better understanding Land Resources impacts on LA published to all the Department and LA of ADB project August 14- Ø understand LA APs before the LA, Mandula town office, Eerdengaobao 18/6 concerns 15, 2019 procedures and the village committee, design Ø Conduct relevant compensation compensation shall unit, RP preparation personnel training to agency policy and be paid in a timely improve project standards manner after the management ability Ø discuss income signing of the rehabilitation agreement. measures Ø discuss future consultation plans Ø discuss future disclosure plans Aps, PMO, Ø Introduce the Ø According to the August 19, Eerdengaobao village v Ø determine the Eerdengaobao village 9/3 background and concerns of the 2019 committee, RP specific LA purpose of the affected households, preparation agency Ø formulate livelihood project the PMO discussed APs, PMO, plan to restore August 20, Eerdengaobao village Ø project site with the people's Eerdengaobao village 4/1 villagers' livelihood 2019 committee, RP selection to government of as soon as possible preparation agency minimize the Damaoqi County Ø conduct multiple August 21 APs, PMO, RP impact of about the Eerdengaobao village 8/2 discussions to 2019 preparation agency cultivated land resettlement scheme

Number of Actions Taken or to be Location Date Participants Key Topics APs Concern Persons/Female taken Ø consult the income understand the to meet the sources of the requirements resettlement wishes. affected villages On the one hand, it Ø timely, fair and Ø investigate the discussed the expectations and equitable payment resettlement issues necessity of of the LA, and on the of full compensation villagers' other hand, it Ø establish a complaint representatives for negotiated with the passages and make the project Labor Security them public Ø conduct socio- Department to Ø provide job economic conduct relevant opportunities and household surveys training for the information of AHs affected households. Ø discuss the Ø The compensation proposed standard will be compensation published to all the standards and APs before the LA, negotiate and the compensation compensation shall schemes be paid in a timely Ø Training needs manner after the Ø Income signing of the rehabilitation agreement. measures

& Interview 1Bligetu, male, shepherd from Eerdengaobao village, Mongolian. He is the Babudaoergu’s son, there are 5 members in his family, his parents live in the neighborhood. The family has a total grassland of 9166 mu. The source of income is the subsidy income of granzing ban, in addition to his wife to work, he will also take some odd jobs. The annual income is about100,000 yuan. The family income is fairly good. They had learned about this project in the village committee, they support the construction of

Mandula port logistics park, and they satisfied that compensation policy and standard are well known. He intends to use this compensation money to other input (the principal of doing business in the port free trade zone), he hopes that compensation can issued on time and the project can complete as soon as possible, then he can do business.

& Interview 2: Alatanqiqige, female, shepherd from Eerdengaobao village, Mongolian.

There are 3 members in her family. This project will acquire about12.1 mu grassland in the family. The village committee has organized a forum to inform us of project content and the project construction significance. In addition, also explained the grassland compensation policy, compensation standards and so on, some of grassland had been acquired before, compensation standards in accordance with national policies and regulations. In addition, we have heard that ADB project will also provide training and some employment opportunities for APs, especially for women, which makes us look forward to the implementation of the project as soon as possible. They suggested that environment of logistics park should be improved so that coal ash does not flow to the grassland.

& Interview 3: Eerdengdalai, Mongolian, 43 years old, with four family members, whose wife is 42 years old, has 2 sons, one is a college student in Hu province, 20 years old, the other one is pupil, 6 years old. They have a house with 63 in Mandula town except self- living, which is used for hotel and restaurant. Because their youngest son will go to school this year, they are too busy to run restaurant, so they closed the restaurant. The hotel is still running. Her pasture was expropriated in the port construction project before. The compensation standard was in accordance with national policies and regulations, and the interests of us should be fully taken into account. The compensation was timely distributed to them after the land expropriation agreement was signed, they were satisfied.

6.2. Public Participation and Consultation Plan

73. This RP is prepared based on the FSR and the socio-economic survey data of the subproject. If there is any change in the subproject after the detailed design is completed, the RP will be updated according to the final detail measurement survey(DMS) and the census data of Aps, and before the civil engineering contract of the subproject is awarded, the updated RP shall be submitted to ADB for review and approved by ADB.

74. During the implementation of the subproject, the PMO, Women's Federation, community committee staffs will establish a cooperation mechanism through holding forum among women and other ways to learn about their demands, hopes at different stage of the subproject. During the whole progress of the subproject, the subproject implementation agency invited the women's Federation staffs to join in.

75. With the progress of project preparation and implementation, the Damaoqi County

PMO, township/subdistrict office, village/community will conduct further public consultations, on LA compensation standards, and the scope of training for the APs, disclosure of construction issues, and solicit comments and recommendations from the

APs during implementation.

Table 6-2: Public Participation Plan

Purpose Mode Time Agencies Participants Topic Disclosure of compensatio Disclosure of 2019.1 Booklet PMO All APs n standard, the RIB 0 and appeal passage, Disclosure of 2019.1 Online ADB website ADB RP 0 publicity Verify PMO, Detailed Affected Department of Conduct the Measurement communities/village Natural measuremen Survey bulletin 2020.3 Resources, LA All APs t and (DMS) board/villagers/residen office, affected assessment According to ts meeting communities/villa Final Design ge cadres Updating RP PMO, If Necessary Update the Department of Affected and Updating the data of RP and 2020.5 Natural communities/villa disclosure of the RP submit to Resources, LA ge cadres Updated RP ADB office to APs Submission of Updated Submit the URP 2020.5 PMO, ADB -- -- RP to ADB for review

and concurrence Disclosure of Updated RP Disclosure of Updated 2020.6 ADB -- -- on ADB RP on ADB website website PMO, Disclosure of Affected Department of LA area, LA communities/village Natural compensatio Announceme bulletin 2020.3 Resources, LA All APs n standard nt board/villagers’ office, affected and LA meetings communities/villa schedule ge cadres PMO, Affected Department of Announceme Compensatio communities/village Natural nt of LA n fees and bulletin 2020.3 Resources, LA All APs Compensatio payment board/villagers/residen office, affected n Schemes mode ts’ meetings communities/villa ge cadres Discussing PMO, the final Department of Determinatio compensatio Natural n of n standard Residents meetings 2020.3 Resources, LA All APs Compensatio and the use office, affected n Plan program for communities/villa compensatio ge cadres n fees PMO, Notification Notification of Department of of Compensatio Natural compensatio n Fees and Residents meetings 2020.3 Resources, LA All APs n fees and Payment office, affected payment Date communities/villa date ge cadres PMO, Department of Discussing 2020.1 Natural training Skill Training 0- Residents meetings Resources, All APs requirements Arrangement 2022.1 affected and time 2 communities/villa arrangement ge

6.3. Appeal Procedures (Grievance Redress Mechanism)

76. Since public participation is encouraged during the preparation and implementation of the RP, no substantial disputes are anticipated. However, unforeseeable circumstances may arise during this process. In order to address such issues effectively and ensure the successful implementation of the subproject’s land acquisition in a transparent manner, an accessible and effective grievance redress mechanism has been established. The mechanism is shown in figure 6-1. The basic grievance redress system is as follows

Stage 1: If an AP is dissatisfied with any LA and resettlement safeguard issue,

he/she can file an oral or written appeal with the community Mandula town or

village committees. In case of an oral appeal, the Mandula town or village

committees will handle the appeal and keep records. Such appeal should be

solved within 2 weeks

Stage 2: If the AP is dissatisfied with the disposition of Stage 1, he/she may

file an appeal with Damaoqi County Natural Resources Department or the LA

and HD management office (depending upon the issue) after receiving such

disposition, which shall make a disposition within 2 weeks.

Stage 3: If the AP is still dissatisfied with the disposition of Stage 2, he/she

may file an appeal with Damaoqi County Natural Resources Department

receiving such disposition, which shall make a disposition within 2 weeks.

Stage 4: If the AP is still dissatisfied with the disposition of Stage 3, he/she

may apply for administrative reconsideration with Damaoqi County

Government after receiving such disposition within 3 months.

If an AP is still not satisfied and believes they have been harmed due to non-

compliance with ADB policy and they have made good faith efforts to solve

their problems by working with the ADB Project Team, they may submit a

complaint in accordance with ADB’s Accountability Mechanism. The

information on how to make a complaint can be found at internet site

www.adb.org/Accountability-Mechanism/).

77. Mass media will be used to strengthen the publicity and reporting of resettlement issues, their resolution and follow-up activities, and comments and suggestions on resettlement from all parties.

78. During the construction and implementation phases of the subproject, the appeal procedures (GRM) will remain effective to ensure that the APs can use them to address relevant issues and grievances.

Banner Legal Authority Damao Joint Banner People’s Government

Banner Disciplinary ADB Department of Natural Inspection Authority Resources Department

Banner Appeal Accepting Authority Mandula town government/ Village Committees

Affected People

Figure 6-1: Grievance Redress Flowchart

6.4. Appeal Contact Information

79. The APs can obtain feedback about their grievances in a timely manner through the contacts persons appointed for different appeal accepting agencies:

Table 6-3: Contact List of the Project Remar No Department Position Name Tel k Damaoqi County Director of 1 Bureau of Commerce Su Rige 15904722709 bureau PMO Damaoqi County 2 Bureau of Commerce Section Chief shepherd 15561459990 PMO Damaoqi County 3 Bureau of Commerce Section Chief Wu Han 18847273111 PMO

Damaoqi County 4 Department of Natural Section Chief Ding Zhihong 13948822576 Resources

5 Mandula town Dupity mayor Yang Changchun 13847296662

Natutal Resources Person in 6 Division of Mandula Ba Tusuhe 13739928345 charge town Mandula town House Person in 7 Demolition Wang Yongliang 13514720488 charge Management Office

8 Eerdengaobao village Secretary Ba Tutaogetao 13947226082

Damaoqi County Member 9 Letters and Visits Tian Jizhou 15540233366 Staff Depatment Damaoqi County 10 Scretary Li Mingchang 13847256250 Discipline Department Damaoqi County Law Member 11 Pang Yan 13754023303 Department Staff

7. Estimated LAR Budget

7.1. Land Acquisition and Resettlement Budget

80. All costs occurred in LAR will be included in the general budget of the project. All resettlement funds come from domestic funds, which is 11.02 million Yuan in total (more details in Table 7-1).

Land AcquisitionAccording to the Notice of the general office of the people’s government of inner Mongolian autonomous region on promulgation of the unified annual land requisition standard and the comprehensive base price of land requisition in the region.(NZBF2018No.4), Mandula town land acquisition compensation to the standard of 2789 yuan per mu herdsmen compensation,0.78 million Yuan in total (7.06% of the total costs), of which the Village collective grassland compensation fee is 0.32 million yuan, and

0.46million yuan of compensation will be paid to the affected households.

Other Costs: including survey and design fees, implementation management fee, skills training fee, contingencies, totaling 0.24 million yuan (2.16% of total costs).

Stipulated Fees for Land Acquisition: 10.00 million yuan (90.78% of total costs).

Table 7-1: Resettlement Cost Estimate Compe Tota nsation l No Standar Qual 100 Prop Items Unit Remarks . d ity 00 ortion unit/yua yua n n

State-owned Land 77.8 7.06% Acquisition 4

279. 77.8 grade 4 Grassland Acquisition mu 2789 11 4 grassland

Compensatio 1 114. 31.8 n to Eerdengaobao village mu 2789 31 8 Eerdengaoba o village Compensatio 164. 45.9 Affected people mu 2789 n to affected 8 6 people

23.7 Other compensation 2.16% 9

The percent of LA and Survey and design and 77.8 resettlem 5% 3.89 research fee 4 ent compens ation The percent 2 of LA and 77.8 Management fee resettlem 4% 3.11 4 ent compens ation

Evaluatio Evaluati Skills training costs 9.00 n price on price

The percent 77.8 Contingencies of LA and 10% 7.78 4 resettlem ent

compens ation

Stipulated Fees for Land 100 90.78 Acquisition 0.14 %

1860 744. All the related Land Occupation Tax 40 73 29 fees need to be paid to New construction land 1860 186. 3 local nature occupancy charge 10 73 07 resources bureau and Grassland recovery fee department of 279. 69.7 mu 2500 grassland by 11 8 land use units.

To 110 100.0 tal 1.77 0%

7.2. Disbursement Flow and Plan of Resettlement Fund

7.2.1. Disbursement flow 81. During the implementation of the project, compensation fees will be paid on the basis of compensation policies and standards in the approved RP. Damaoqi County Finance Bureau will allocate the compensation funds to Natural Resources Department and Mandula town Housing Demolition Office, thenMandula town and Housing Demolition Office pays the funds to the affected units or individuals. Damaoqi County PMO is responsible for organization and coordination and supervise the compensation and resettlement subsidies payment to the APs. 82. The disbursement flow is as follows

Funds

Damao Joint Banner ADB PMO

Mandula town Ee A acquisition rdengaobaog ps by ps land ahca

Figure 7-1: Flowchart of Resettlement Fund Disbursement

7.2.2. Disbursement Plan

83. The budget is a cost estimate of resettlement. Depending on practical changes within the affected areas, resettlement costs may be increased due to the practical impacts of detailed measurement survey (DMS), modifications to compensation and inflation, etc., But Damaoqi County PMO will ensure the payment of compensation fees. The budget incorporates contingencies will be applied and revised as necessary.

8. Organizational Structure and Responsibilities 8.1. Resettlement Action Agencies 84. The agencies are responsible for the planning, management, implementation and monitoring of the project’s resettlement activities: Ø Damaoqi County ADB Loan Project Leading Group; Ø Damaoqi County business bureau (EA); Ø Damaoqi County People’s Government (IA); Ø Damaoqi County port co.LTD (Project Construction Unit); Ø Damaoqi County Natural Resources Department; Ø Mandula town People’s Government;

Ø Mandula LA officeResponsible for LA;

Ø Affected Villages of Eerdengaobao village (participation); Ø RP Preparation AgencyPreparation agency entrusted by Damaoqi County PMO;

8.2. Organizational Chart

Damao Banner Project Leading Group

Internal Damao Banner PMO/Natural Resources Monitoring Department, IA Evaluation

Mandula (LA office)

Village Committee and Village Group

Affected People

Figure 8-1: Resettlement Organizational Chart

8.3. Damaoqi County ADB Loan Project Management Leading Group 85. The resettlement staff of Damaoqi County are from functional departments of Damaoqi County municipal government. They have rich working experience and have participated in a number of local municipal projects and will play a good organizing and coordinating role in the implementation of the project. The Project Leading Group is composed of the following persons: Group leader: Shi Zhongqin(Member of Standing Committee, Government Deputy County Chief

Deputy group leader: Yang Yang (Government Deputy County Chief, Director of the Finance Department) Libaochun (Director of Government Office) Su Rige (Director of the Business Bureau) Hu Qiang (Director of Development and Reform Commission) Wang Heshuan (Deputy Director of the Finance Department) Member: Wang Xi (Director of Finance Payment Center) Hu Junxi (Deputy Director of Development and Reform Commission) Ban Jinzhu (Deputy Director of Department of Natural Resources) Han Wen GuangDeputy Director of Live Built Bureau

Yang ZhijunDeputy Director of Environmental Protection Agency

Wu Zeqing (Deputy Director of Water Affairs Bureau) Zhao Hui (Deputy Director of Emergency Management Bureau) Si RigulengDeputy Director of the Business Bureau

Na Shengaoqier (Vice-mayor of Mandula Town) Na Shengbaoyin Chairman of the Damaoqi County songbuer Property Service

Company

86. The Leading Group opened an office, with Liu Jiang, director of the port administration, as the office director, Wang Xi, deputy director of the financial payment center, and the port bureau and Songboer company in charge of daily office, mainly responsible for the docking of regional cooperation projects of the Asian development bank and the preliminary formalities.

87. The project IADamaoqi County people’s government; the project implementing unit: Damaoqi

County ADB PMO. Project implementing agency has established a full-time agency on the basis of composition of members equipped with experienced and standing full-time staff and specialized

management information system. Relevant staff will work with the leading group office (PMO) to ensure smooth communication, which is specifically responsible for the construction, operation, maintenance, late loan repayment and management of PRC-Mongolia Damaoqi County of Mandula economic cooperation project. 8.4. Division of Responsibilities among Agencies 8.4.1. Damaoqi County ADB Project Leading Group Ø Responsible for the overall project implementation management, organization and coordination, and supervision and inspection; Ø Formulate project resettlement policies and coordinate the relationship between resettlement agencies at different levels; Ø Coordinate the work between government agencies and departments during project preparation and implementation; and Ø Make decisions on significant problems during project construction and resettlement.

8.4.2. PMO Ø Entrust design institutes to measure the project impact scope; Ø Organize socio-economic surveys; Ø Organize and coordinate the preparation of RP; Ø Implement RP policies; Ø Confirm and coordinate the RP implementation on the basis of the project schedule; Ø Disburse and monitor the utilization of RP fund; Ø Guide, coordinate and supervise activities and progress of the RP implementation; Ø Organize and implement RP internal monitoring, determine RP; Ø Coordinate and solve problems related to the resettlement; Ø Coordinate and solve complains and appeals on the resettlement; Ø Regularly report the progress of LA, fund utilizing and the quality of implementation to ADB; Ø To review resettlement plan, implement internal supervision and inspection, and to make decisions on significant problems in the process of resettlement; and Ø To be responsible for specific project implementation management, organization and coordination, supervision and inspection.

8.4.3. Damaoqi County Department of Natural Resources Ø Implement measures for LA;

Ø Implement the relevant state policies and regulations on the administration of land for construction projects; Ø Prepare land acquisition and resettlement plan and compensation standards on the basis of policies, and submitting them to competent authorities for approval; Ø Handle the land use application and approval procedures; Ø Apply for land use planning permit and land use construction permit; Ø Implement the RP; Ø Enter into compensation agreements for temporary land occupation; Ø Sign compensation and resettlement agreements for land acquisition units; Ø Review resettlement implementation; Ø Manage information on LA and resettlement; Ø Training staff; Ø Coordinate and handle conflicts and issues arising from implementation; Ø Coordinate and handle dispute and appeal Ø Report LA and resettlement information to the PMO

8.4.4. Mandula Town 88. Led by the leaders in charge, and composed of party and government office, main cadres of each village/community and other units, and the major cadres in each community. Its main responsibilities are: Ø Participating in the survey of the project, and assisting in the preparation of the RP; Ø Organizing public participation, and propagandizing the resettlement policies; Ø Implementing, inspecting, monitoring and recording all resettlement activities within project area; Ø Responsible for the disbursement and management of land compensation funds and the financing of housing; Ø Supervising the LA and contract signing; Ø Reporting LA and compensation situation to the county Natural Resources Department; Ø Coordinating and handling conflicts and issues arising from its work.

8.4.5. Affected Village/Committee 89. Composed of key officials of committee. Its responsibilities are: Ø Participating in the socio-economic survey and project impact survey. Ø Organizing public consultation, and propagandizing the policies on LA policies;

Ø Paying and managing relevant funds; Ø Reporting the APs’ comments and suggestions to the competent authorities; Ø Reporting the progress of resettlement implementation; Ø Providing assistance to affected households with difficulties; and

Ø Cooperating with other higher-level units with land acquisition related work. 8.4.6. Design Institute Ø Reducing the impacts of the project through design optimization; and Ø Identifying the range of LA. 8.5. Measures to Strengthen Institutional Capacity 90. In order to implement resettlement successfully, the resettlement staff needs to be trained under a program developed by the PMO.

8.5.1. Training Program for Resettlement Management Staff

91. rainings and orientations provided during project preparation stage: it was noted that FGDs and consulting meetings as well as the policies trainings to both PMO staff and affected people/stakeholders were conducted by TRTA resettlement consultant. The main issues/trainings discussed/conducted during the consulting meetings were as follows:

——Principles, require and policies of resettlement; ——Principles and policies of ADB’s involuntary resettlement; ——Compensation standards and livelihood restoration plan; ——Resettlement project planning management training, design and updating; ——Resettlement monitoring and evaluation; ——Resettlement financial management; and ——Management information system.

92. The trainings to be conducted during project implementation. • Principles and policies of ADB’s involuntary resettlement; • Latest changes of national land acquisition and resettlement policy; • Resettlement implementation plan design; • Resettlement implementation progress management and working procedure; • Issues that need attention during resettlement implementation; • Resettlement financial management; • Resettlement project quality control;

• Resettlement information system; Resettlement monitoring and evaluation;

Resettlement project management.

9. Resettlement Implementation Schedule

93. According to the project implementation schedule, the project (1 tranche) will be planned and implemented for 2 years from 2020 to 2022; the LAR will begin in March 2020 and end in May 2020. The basic principles for resettlement implementation are as follows: Ø LA shall be completed at least one month prior to the commencement of civil construction. Ø During the LAR, the APs shall have opportunities to participate in the project. Before the commencement of civil construction, the scope of LAR will be disclosed, the RIB distribution and public participation activities conducted properly. Ø All compensation shall be paid to the affected proprietors directly and fully within 3 months of approval of the compensation and resettlement program for LAR. No entity or individual should use such compensation funds on their behalf, nor should such compensation be discounted for any reason.

9.1. Work before Resettlement Implementation (RP Updating)

(1) Verification of the scope of LAR 94. The scope of the LAR will be defined according to the project detailed design and layout. And the resettlement work will be assigned to affected village via meetings, and then inform to the village committee. The Damaoqi County PMO will survey and register land, houses and attachments, and their ownership within the defined project scope. (2) Field investigation of the range of LAR 95. The Damaoqi County PMO will organize relevant staff of Department of Natural Resources, town and village to visit the affected areas, investigate and register land, houses, attachments, facilities and equipment, etc., judge the nature and ownership of infrastructure, and keep detailed records. (3) Drafting Updated RP and Submission to ADB for review and Concurrence 96. Before the beginning of land acquisition, and civil works, the RP will be updated, as necessary based on the detailed design and detailed measurement survey (DMS) and submitted to ADB for approval. (4)

(5) Contract signing 97. Under the coordination and direction of Damaoqi County PMO will enter into land acquisition agreements with Department of Natural Resources and pay the contract price. 98. The compensation agreement for land acquisition will be signed based on the compensation rates specified in the Updated RP, and in accordance with the state, provincial and municipal laws and regulations on resettlement. Damaoqi County PMO, Department of Natural Resources, and Township government will negotiate with the affected villagers about compensation and resettlement respectively. After consensus, township Department of Natural Resources and PMO will sign the compensation agreement for land acquisition immediately. A copy of such agreement should be submitted. Department of Natural Resources will supervise and witness the whole process. Table 9-1: Project Implementation Schedule

No. Subproject Item Commencement

The expansion project of 1 freight passage at Mandula 2020.10-2022.10 port

Mandula port Mandula port international 2 international logistics road logistics park service 2020.10-2022.10 park road upgrading area project

Mandula port road logistics 3 park customs supervision 2020.10-2022.10 site subproject (1) construction of 1 fine breeding base; (2) construction of 1 Mandula port animal quarantine; (3) Upgrading and Mandula port quarantine reconstruction of 5 and sheep breeding breeding bases; (4) center mutton sheep 4 construction of 1 set of 2020.10-2022.10 industry comprehensive traceability management development integration system; (5) 1 poverty project alleviation fund for mutton sheep industry; (6) building of 1 Tuyou banner slaughtering and processing logistics base.

Table 9-2: Resettlement Implementation Milestone

Responsible No. Resettlement Tasks Target Milestone Agency A: Consultation and Disclosure Draft RP circulation and Damaoqi County PMO and 1 2019.10 endorsement PMO consultant

PMO, all affected villages, 2 RIB distribution PMO 2019.10 communities and people All affected PMO and 3 Distribute RPs to the APs villages and 2019.10 consultant communities All affected Approval for the relevant 4 villages and PMO 2020.1 documents communities B: Resettlement Plan & Budget PMO, affected Based on the final design to villages, 5 2020.3 conduct DMS communities and APs Updating RP based on DMS (if 6 Ros and consultant 2020.5 necessary) Government of 7 Approval of final RP & budget 2020.7 Damaoqi County Submit the upgraded RP to ADB PMO, affected for review. And then uploading to villages, 8 2020.5-6 ADB website for disclosure (if communities and necessary). APs C: Capacity Building Establishment of a resettlement 9 PMO 2019.10 offices at various levels Damaoqi County 10 ROs capacity building 3 staff 2019.10 PMO All affected Designate village/community 11 villages/ PMO 2019.10 authorities communities D: Commencement and Completion of Resettlement ROs, Department 12 Agreements with villages and APs All affected APs of Natural 2020.3 Resources 13 Commencement PMO 2020.3 Disbursement of compensation to PMO 14 2020.3-5 APs Implementation of Livelihood Programs (training, providing All affected 15 PMO 2020.10-2022.12 access to employment during APs construction, etc.) 16 Completion PMO 2020.5 E: Monitoring & Evaluation Damaoqi County Every May-December 17 Internal monitoring reports PMO from 2020 to 2025

10. Monitoring and Evaluation

99. In order to ensure successful implementation of the RP and realize the objectives of resettlement properly, land acquisition, property demolition and resettlement activities of the project will be monitored regularly.

10.1. Internal Monitoring

10.1.1. Purpose

100. The purpose of internal monitoring is to enable all resettlement agencies to function and coordinate their functions during project implementation, conduct internal supervision and inspection on the whole process of resettlement preparation and implementation, resettlement progress, and ensure that the land acquisition, house demolition and resettlement work can be completed on schedule according to the RP, and promote successful project construction.

10.1.2. Organization and Staff

101. The internal resettlement monitoring agencies are Damaoqi County PMO and other relevant authorities (e.g. Department of Natural Resources of Damaoqi County, Mandula town). These agencies will have a leader who is responsible specifically for the resettlement work. Such leaders should have rich resettlement experience and authority and be able to coordinate all departments involved in the resettlement work. The members of such agencies should have knowledge on resettlement and social issues so as to perform their duties.

10.1.3. Scope of Internal Monitoring

102. The PMO will develop a detailed internal monitoring plan for land acquisition and resettlement and income restoration and improvement including:

(1) Payment, use of LA compensation and implementation progress and quality of production and development options of APs;

(2) Coordination on key issues of resettlement during LAR;

(3) Restoration of household incomes of APs;

(4) Income restoration and improvement of vulnerable groups;

(5) Payment, use and availability of compensation funds;

(6) Restoration and reconstruction of infrastructure, ground attachments and special facilities;

(7) Level of public participation and consultation during LA and resettlement;

(8) Resettlement training and its effectiveness; and

(9) Working mechanism, training, working hours and efficiency of local resettlement offices.

10.1.4. Internal Monitoring Reporting

103. The Damaoqi County PMO will report on the progress of resettlement updating and implementation which will be part of the project’s progress report.. Such report will indicate the resettlement progress during the past 6 months. The report will provide information the progress of land acquisition and use of compensation funds through comparison with the budgeted amount and schedule. Table 10-1 and Table 10-2 provide some formats.

Table 10-1: Progress Report on Resettlement for LA

______community, ______sub-district

Cut-off date: MM/DD/YY

Date of completion: MM/DD/YY

Actually Percentage of Item Unit Planned Accumulated completed completion

Permanent land acquisition mu

Payment of land 10,000

compensation fees yuan

Training person

10,000 Compensation for LA yuan

Employment person

Reporter: ______Signature (person responsible): ______Official seal:

Table 10-2: Progress of Fund Utilization

______community, ______sub-district

Cut-off date: MM/DD/YY

Date of completion: MM/DD/YY Unit / Investment Compensation Adjust Affected units Introduction Rate Quantity (yuan) (yuan) compensation

Village 1

Village 2

Displaced

household

Enterprise

Reporter: ______Signature (person responsible): ______Official seal:

Appendix 1: DDR of Mandula Port Isolation Site and Breeding

Sheep Expansion Base Mutton Sheep Industry Comprehensive

Development Integration Project

1. Project Introduction

The project construction site is located in Tuyou Banner, Damaoqi County and Guyang County, of Baotou City, Inner Mongolia Autonomous Region. The main construction contents include the construction of improved breeding bases, the construction of animal quarantine isolation sites at Mandula Port, the upgrading of breeding bases, the construction of retrospective management systems, the poverty alleviation funds for the meat sheep industry, and the construction of the Tuyou Banner slaughtering and processing logistics base. Among them, the newly renovated and expanded infrastructure mainly consists of four parts: (1) Renovation of breeding bases (in No. 4 Ranch), whose construction contents include the trough, the green storage, the excretion storage site, crematorium, the sick sheep isolation house and other related facilities; (2) One new animal quarantine isolation site at Mandula Port, whose construction contents include sheep house, activity fence, supporting house, supporting facilities, sheep platform, grass shed, road works, wall, crematorium, etc.; (3) Five breeding bases are to be transformed, whose construction contents include mainly sheep house renovation, management room renovation, roof sun panel renovation, outside playground fence, trough, wall maintenance, sewage pipe network, road Reconstruction, main road reconstruction, auxiliary road reconstruction, wall reconstruction, hydropower project, greening, crematorium, etc. (4) One new slaughtering and processing base, the main construction contents include the waiting quarters, slaughtering and processing workshops, cold storage, chillers, thermal insulation systems, comprehensive research and development buildings, debris storage, sewage treatment workshops, boiler rooms, fire rooms, carports, site hardening, sheep

slaughtering and dividing production line, and mutton finishing production line, etc. The ADB project includes the transformation of five breeding bases, the construction of an animal quarantine isolation site, and the construction of a new slaughtering and processing base. The five breeding bases that have been reconstructed have completed the land contracting/transfer agreement with the original owner before the original construction started, and completed the land transfer procedure; the newly built slaughtering and processing base uses the land transferred from the government and has obtained the property right certificate. Before the transfer, it belongs to the reserved land of the government and does not involve land acquisition and demolition; a grassland transfer agreement has been signed for the newly built animal quarantine isolation site. For the isolation site, there is no concrete plan yet if the land transfer contract ending April 2023 will be renewed or acquire the land as it will really depend on negotiation with one household (4 persons) and plans of the Government in 2023. Renewal of the land transfer contract with the household will follow the principles of fairness, just, reasonable and transparent land transfer process. The Government will report on the planned renewal of the land transfer contract including the land transfer process to be carried out to ADB for review and concurrence. In the event that the Government decides to acquire the 200 mu of land for the isolation site, an Updated Resettlement Plan will be prepared in accordance with the Resettlement Plan prepared for the Mandula Subproject and will be submitted to ADB for review and concurrence prior to land acquisition. This due diligence reviewed the completed land transfer work to understand its real situation, compensation and resettlement of the affected residents.

2. Preparation of Due Diligence Report

The preparation of the project's resettlement due diligence report was completed by Inner Mongolia Xiaoweiyang Animal Husbandry Technology Co.,

Ltd. and Beijing Haohan Engineering Consulting Co., Ltd. During the period from July 7th, 2019 to July 13th, 2019, the research team has worked on Inner Mongolia Xiaoweiyang Animal Husbandry Technology Co., Ltd., Damaoqi County, Tuyou Banner, Guyang County Land Transfer Service Center and Village Committees. Relevant units have been interviewed, and relevant materials such as land transfer contracts, collective land use certificates, and transfer process records have been collected, and interviews have been conducted with these units and some farmers. The main contents of this due diligence report including: understanding the actual situation of land transfer and land acquisition, reviewing the process of land acquisition compensation, understanding the public participation of the project, and conditions of complaints received.

3. Project Impact

The project occupies a total of 1826.41 mu of land, of which 1,733.53 mu of land has been transferred and 92.88 mu of land has been transferred by the government (before the transfer it is state-owned open space)..

Table 1 Land Transfer Situation Completed Situation of the transferred collective land

Nature of Affected people Total land area of the Completed Subproject land/functions before Villages Minority subproject (mu) collection/transfer Household Minority group circulation affected People group area (mu) s households people

Renovation of breeding bases for Collective land, Dushoujiang 765 765 47 121 1 2 breeding (No. 4 Ranch) wasteland Village

Construction of animal quarantine Jihulongtu Collective land 200 200 1 4 1 4 isolation site at Mandula Port village

Collective land, Dengkou Ranch No. 1 236.74 236.74 460 2000 6 6 wasteland Village

Donghulutou Ranch No. 2 Collective land 178.69 178.69 203 756 2 3 Village

Collective land,

Ranch No. 3 cultivated land, 263.1 263.1 Dajin Village 235 708 2 4

wasteland

Collective land, barren Shangbafen Guyang Ranch 90 90 43 118 1 1 hills, wasteland Village

Tuyou Banner Slaughtering and Tuyou Banner State-owned land, Processing Logistics Base 92.88 92.88 New Industries 0 0 0 0 open space Construction Park

Total 1826.41 1626.41 989 3707 13 20 Source: Xiaoweiyang Company Land Transfer Contract, Land Certificate and Village Committee Data (July 2019)

Table 2 Appendages on Land that has been Transferred Affected Compensation Standard Compensatio Category Unit Amount Village (yuan/unit) n amount Grave Dajin Village - 8 1000 8000

Source: Xiaoweiyang Company Land Transfer Contract, Land Certificate and Village Committee Data

(July 2019)

In the 6 villages affected by the project of the Mandula Port Isolation Site and the breeding sheep breeding complex, the comprehensive utilization of the project, a total of 1,733.53 mu of wasteland, barren hills, cultivated land and grassland were collected. Before the signing of the land transfer agreement, the township government and Xiaoweiyang Group of the affected villages and villagers negotiated and held a village meeting. Table 3 Public Participation and Consultation Activities of Affected People Who have Completed Land Acquisition Number of Concerned Location Date Participants Key Topics Measures taken by PMO/IA persons/f Issues of APs emales Xiaoweiyang Hope that the The breeding sub-project of Company, Survey of social project will this project will make use of Haizi and economic drive the the social breeding capacity Township conditions of development of as much as possible for the Dengko Government 2019- affected groups, the local expansion of purebred u Staff, Village 18/5 7-7 survey of land aquaculture Australian white and the Village Committee transfer/levy industry and expansion of hybrid mutton Cadres, process, project involve more sheep, so that farmers with Village support survey local farmers breeding ability can Representati and herdsmen. participate in the project. ves Xiaoweiyang The breeding sub-project of Company, Survey of social this project will make use of Subogai and economic the social breeding capacity Township conditions of as much as possible for the Provide more Dajing 2019- Government affected groups, expansion of purebred 17/4 job Village 7-7 Staff, Village survey of land Australian white and the opportunities Committee transfer/levy expansion of hybrid mutton Cadres, process, project sheep, so that farmers with Village support survey breeding ability can Representati participate in the project

ves

Xiaoweiyang The breeding sub-project of Company, Survey of social this project will make use of Mingshachuo and economic the social breeding capacity Township Provide more conditions of as much as possible for the Donghul Government funds and 2019- affected groups, expansion of purebred utou Staff, Village 17/5 technical 7-8 survey of land Australian white and the Village Committee support to transfer/levy expansion of hybrid mutton Cadres, farmers process, project sheep, so that farmers with Village support survey breeding ability can Representati participate in the project ves Xiaoweiyang The breeding sub-project of Company, Survey of social this project will make use of Mingshachuo and economic the social breeding capacity Township Provide more conditions of as much as possible for the Dushouj Government funds and 2019- affected groups, expansion of purebred iang Staff, Village 18/5 technical 7-8 survey of land Australian white and the Village Committee support to transfer/levy expansion of hybrid mutton Cadres, farmers process, project sheep, so that farmers with Village support survey breeding ability can Representati participate in the project ves Hire a professional Survey of social Xiaoweiyang Pay attention organization to conduct and economic Tuyou Company, to environmental impact conditions of Banner Industrial environmental assessment on the project 2019- affected groups, New Park 7/2 protection and strictly implement 7-8 survey of land Industri Management during environmental protection transfer/levy es Park Committee construction measures to minimize the process, project staff and operation environmental impact of the support survey project Xiaoweiyang Survey of social Performing Company, and economic according to Bayinhua conditions of the Jihulong 2019- Town affected groups, subcontract, Execute according to 9/3 tuvillage 7-9 Government survey of land timely paying subcontract Staff, Village transfer/levy the contract Committee process, project and fulfilling Cadres, support survey the

Chaogesulide responsibilities and his and obligations Family stipulated in the contract The breeding sub-project of Survey of social this project will make use of Xiaoweiyang and economic the social breeding capacity Company, Provide more conditions of as much as possible for the Shangb village funds and 2019- affected groups, expansion of purebred afen committee 12/3 technical 7-9 survey of land Australian white and the Village cadre, village support to transfer/levy expansion of hybrid mutton representativ farmers process, project sheep, so that farmers with e support survey breeding ability can participate in the project Total 98/27

4. Social and Economic Analysis of the Affected People

The land transfer in the project land began in May 2010. By April 2019, 1,733.53 mu has completed land transfer; the government sold 92.88 mu of state-owned vacant land; a total of 1,826.41 mu of land was transferred, affecting 989 households with 3,707 people in 6 villages, including 20 minority people in 13 households. This due diligence investigation report selected all the 6 village committees affected, and randomly conducted a socio-economic sample survey of 120 villagers and 413 family members (including 14 minority persons in 5 households). The survey included analysis of the occupation, income and expenditure of the villagers and the income of the male and female laborers. 55.31% of the affected laborers are engaged in animal husbandry and agricultural production, and most of the project transfer land is idle wasteland, so the impact on the affected villagers' living aquaculture and agricultural production activities is small. Therefore, the affected villagers can continue to engage in farming. In addition, urban employment accounts for 7.10%. Some affected people choose to go out to work in the town center to find jobs, such as working in the cooperation zone or in various banner counties and Baotou

City, like doing small trades, porter works, renovations, etc, in counties or banners. Before the transfer, the 1,530.43 mu of land transferred by the project is unallocated collective wasteland and barren hill, which is in a long-term idle state. Before the 3.1 mu transfer, it is cultivated land (non-basic farmland). Therefore, the area occupied by the villagers' arable land is very small, which has little impact on the existing production and lifestyle of the villagers. In addition, some affected people choose to work in the city. The economic income and expenditure of the 120 households affected by land acquisition are shown in Table 4. The livelihood sources and income levels of households affected by land occupation are shown in Table 5. Table 4: Per Capita Economic Status of the Surveyed Households in 2018 Unit: Yuan Per Year Per Person Surveyed Members of Category Project Max. Min. Ave. Households Households Per capita 2800 35000 11086.46 income Family 120 413 Per capita 1900 32000 9877.62 expense Source: Due Diligence Survey, July 2019 Sample Size: Family N = 120 households

Table 5 Comparison of Sources of Livelihood and Income Levels of Villages Affected by Land Transfer Unit: Yuan Per Year Per Person Per Capita Main Per Capita Income Main Source of Measures Main Source of Income Affected Income After Before Income before for Income after Increase Villages Circulation Circulation Circulation Income Circulation Ratio (2018) (2010) Recovery Farming / Provide Farming / Dushoujian 8569 going out to job 10621.48 going out to 23.95% g Village work opportunit work Farming / ies and Farming / Jihulongtuv 9367 going out to employm 10105.32 going out to 7.87% illage work ent work Dengkou Farming / vocationa Farming / 9128 11241.35 23.15% Village going out to l technical going out to

work training, work breeding Farming / Farming / Donghuluto training 8954 going out to 10987.54 going out to 22.71% u Village work work Farming / Farming / Dajin 9142 going out to 12104.41 going out to 32.40% Village work work Farming / Farming / Shangbafe 8067 going out to 9875 going out to 22.41% n Village work work

Source: Due Diligence Survey, July 2019 Sample Size: Family N = 120 households

After the land were transferred, the income of the villagers before the transfer of land increased by 7.87%--32.40%. As can be seen in Table 6, the income of the villagers in the affected areas is mainly based on the income from employment, accounting for 43.82% of the total income; the agricultural income accounts for 29.45%; and the household wage income accounts for 15.06%. Although the affected villages are mainly based on agriculture, the source of household income is not more than non-agricultural income. See Table 6.

Table 6 Sources of Per Capita Income of Households Surveyed in 2018 Unit: Yuan Per Year Per Person Salary income (as Animal Working Policy Other Agricultural government Items Breeding income incom incom Total income and income (labor) e e corporate employees) Overall 20254 45426 457871 househol 433000 915487 1883860 689547 8 8 0 d income Househo ld 490.4 1099.9 11086.4 income 1048.43 2216.68 4561.40 1669.61 3 2 6 per capita Proportio 100.00 9.46% 19.99% 41.14% 15.06% 4.42% 9.92% n %

Source: Due Diligence Survey, July 2019 Sample Size: Family N = 120 households

Figure 1 Distribution of Household Income Sources The survey results show that the households’ expenses of the affected family accounted for 29.39% of their total income, followed by agriculture and animal husbandry investment and education expenditure, accounting for 20.89% and 8.21% respectively, as shown in Table 7. Table 7 Status of Household Expenditure in Affected Households in 2018 Proportion of each Expenditure item Total expenditure Per capita expenditure item Water fee 51487 124.67 1.26% Electricity fee 146875 355.63 3.60% living expenses 1198965 2903.06 29.39% Clothing expenses 281547 681.71 6.90% Heating costs 184785 447.42 4.53% Agricultural and animal husbandry 852074 2063.13 20.89% investment Educational expenses 335094 811.37 8.21% Medical expenses 175135 424.06 4.29% Transportation 243104 588.63 5.96% expenses Communication fee 229584 555.89 5.63% Human relations 193258 467.94 4.74% Other expenses 187548 454.11 4.60% Total 4079456 9877.62 100.00%

Source: Due Diligence Survey, July 2019 Sample Size: Family N = 120 households

Figure 2 Household Expenditures in 2018 In order to better determine the income level of the affected male laborer and female labor force separately, 120 households were randomly selected from the survey samples for investigation, as shown in Table 8. The analysis results show that the average annual income of the male labor force is 13,144 yuan, and the average annual income of the female labor force is 8,768 yuan. The reason for this difference is that men are more likely to work in non- agricultural jobs than women. Women often find it difficult to leave home for a long time due to taking care of their children, patients and the elderly. Therefore, they usually only work in short-term jobs close to home. Compared with men, women’s education is low, which also affects women’s income levels.

Table 8 Comparison of the Share of Male and Female Labor Household Income Effective Item Min. value Max. value Ave. value sample size Male labor income 219 4300 35000 13144 Female labor 194 2800 32000 8768 income

Source: Due Diligence Survey, July 2019

5. Land use right transfer and Payment

Since January 2010, the Xiaoweiyang Group and the affected village collective have carried out several consultations on land transfer rents and compensation standards for ground attachments. Xiaoweiyang Group signed a lease contracting agreement with the affected village/villagers. The land rent is paid in accordance with the agreement. Detailed land lease and fee payment are shown in Table 9. For detailed compensation agreement, see Appendix B. Table 9 Cash Compensation Payment / Land Transfer Fees Durat Circula Total ion of The land Affected tion / rent/compen Compens Compens lease Subproj ownershi villages/vill collecti sation ation in- ation as ect p before agers on area expenses place allocation per transfer (mu) (yuan) contr act Renovat ion of 11 breeding Average Village Dec2 bases Dushoujiang allocation 765 2126400 committe All paid 013 t0 for Village to 121 e 1 July breeding villagers 2043 (No. 4 Ranch) Constru 10Apr Contracte ction of Average il Chaogesulid d land of animal distribution 2019 e and other 200 280000 Chaoges All paid quaranti to 4 family to 30 3 people ulide ne members April family isolation 2023

site at Mandula Port 21 Average May Village Ranch Dengkou allocation 2010 236.74 1372500 committe All paid No. 1 Village to 2,000 to 1 e villagers July 2040 27 Average May Village Ranch Donghuluto allocation 2022 178.69 573990 committe All paid No. 2 u Village to 756 to 6 e villagers June 2041 19 Average July Village Ranch allocation 2011 Dajin Village 263.1 390000 committe All paid No. 3 to 708 to 20 e villagers July 2041 16 Average May Village Guyang Shangbafen allocation 2010 90 221000 committe All paid Ranch Village to 118 to 15 e villagers May 2040 Tuyou Banner Tuyou Slaught Banner 30 ering New Transfer of Tuyou March and Industries state- Banner New 2015 Processi 92.88 15031948.4 Park All paid owned Industries to 29 ng Administr vacant Park March Logistics ation land 2065 Base Committe Constru e ction

6. Compensation Standards for Completed Land Transfer

The compensation standard for land use right transfer see in Table 10 and Table 11 for more details.

Table 10 Compensation Rates for Land Transfer in Each Village

Compensation standard Affected Village Land type Total (yuan/mu/year)

Arable land 200 Dajin Village 390000 Wasteland 50 Barren mountain 41 Zhaodi Village 221000 Wasteland 100 Donghulutou Village Wasteland 100 573990 Dengkou Village Wasteland 150 1372500

Dushoujiang Village Wasteland 80 2126400

Jihulongtuvillage Pasture 70

Total 4963890

Source: Xiaoweiyang Company Land Transfer Contract, Land Certificate and Village Committee Data, July 2019. Table 11 Compensation Standards for Aboveground Attachments Affected Compensation standard Compensatio Category Unit Amount Village (yuan/unit) n amount Grave Dajin Village Unit 8 1000 8000 Source: Xiaoweiyang Company Land Transfer Contract, Land Certificate and Village Committee Data, July 2019.

6.1 Price of Land use right transfer

The classification guides the circulation price. According to the combined requirements of scientific calculation, realistic comparison and increasing range, the land and grassland turnover price is determined. At the same time, according to the characteristics of the terrain, infrastructure facilities, location advantages, etc., the corresponding floating income is determined. At present, the Banner and County Government has no specific limit on the price of land transfer. The price is determined by the transfer party and the village committee and must be decided through collective discussion by the villagers' congress. Interviewee: Mr. Sun, Haizi Township Government The government encourages farmers and herdsmen to carry out land transfer and develop industries and scale agriculture. Generally, the price of land transfer is negotiated with the village committee. The banner government and the township government have no specific price control, but they play a supervisory role. The specific price is related to the location of the land being transferred, as well as the conditions and type of land use. In the same

location, the wasteland is the cheapest, with similar conditions, the better the traffic conditions, the higher the price. According to the 30-year circulation period, the land price of the Xiaoweiyang breeding base No. 1, No. 2, and No. 3 is now somewhere between 5,000 yuan/mu and 7,000 yuan/mu. Other plots are to be decided by the market at the time their are circulated. 7. Provide Job Opportunities and Training for Affected People

What needs to be noticed is that the households affected by the land transfer has completed the land transfer. They will also be given priority in obtaining employment opportunities, as mentioned in the resettlement plan. It is estimated that approximately 547 jobs will be created during the project implementation and operation. Table 12 Jobs to be created during the project implementation and operation Construction of Tuyou Banner Renovation Upgrading animal Slaughtering and of breeding Ranch 1-4 Job Chances Tyep quarantine Processing Total bases for and Guyang isolation site at Logistics Base breeding Ranch Mandula Port Construction

Temporary Technical 5 10 25 10 50 chances during Non- 25 40 125 30 220 construction technical period Sub-total 30 50 150 40 270 Technical 20 22 10 5 57 Chances during Non- operation 50 50 110 10 220 technical period Sub-total 70 72 120 15 277 Total 100 122 270 55 547

Table 13 Training Plan Estimated Training Amou Female Targeted No. Training Type Costs (ten nt of Amoun Time Group thousand People t yuan) Agricultural Affected October 2020 – 1 0.8 24 6 technology persons December 2022 Livestock farming Affected October 2020 – 2 3.0 120 54 technology persons December 2022

Affected October 2020 – 3 Business training 2.1 100 40 persons December 2022

Skills Training Translation Affected October 2020 – Handicraft 4.0 180 105 persons December 2022 Clothing cutting 4 Chef Other (such as Affected October 2020 – new technology 0.9 50 20 persons December 2022 training) 5 Total 9.00 474 225

The survey found that since the establishment of No. 1 Ranch in Xiaoweiyang Group in 2010, it has provided various forms of training for the surrounding farmers and herdsmen. The training targets not only affected farmers and herdsmen, but also other villagers. The main content of the training includes feeding techniques, ewes and lamb care techniques, crop planting techniques, etc. All training is free and can be attended by anyone without restrictions. The training is mainly carried out during the slack season. Usually, the Xiaoweiyang Group will send its own technical staff or hire local professionals to come to the training. Generally, the contact information will be left after the training is over. After the training, farmers and herdsmen can contact the technical staff to ask questions. Some of the training activities carried out in 2018 are detailed in the table below. Table 14 Training Activities Carried out in 2018 Feeding technical Ewe and lamb nursing Crop planting technical Time training technical training training Total Male Female Male Female Male Female 2018 116 86 152 115 208 137 814

During the implementation of the project, the project implementation unit will provide more forms of training for farmers to further improve their skills according to the actual situation.

8. Public Participation

During the process of land transfer, the banner and county government, township land transfer service center, Xiaoweiyang Group and related units have conducted several meetings with village Party Secretary, village director and village representatives in the project to conduct communication and full consultation, so that the opinions and suggestions of villagers and households affected by land transfer can be fully understood, and various methods for public participation and consultation can be adopted: (1) Convening villagers' representatives congress At the beginning of contacting with Xiaoweiyang Company, the relevant villagers' representatives congress was held to introduce the development ideas and basic conditions of the construction of the Xiaoweiyang sheep breeding base project, as well as the scope of the planned circulation, and the opinions and suggestions of the representatives of the villagers were listened to. Their opinions and suggestions are recorded and given consideration and attention in the implementation. After the meeting, the meeting minutes were posted in the village committee. (2) Convening villagers meeting After the initial plan was formed, a villagers meeting was held to discuss and vote on the scope of circulation, the time of transfer, and the compensation criteria. After the meeting contents were passed and agreed, a meeting record was formed and publicized in the public notice column of the village committee. (3) Land transfer work and fee payment In the land survey, circulation agreement negotiation and compensation fee payment, the village cadres and village representatives participated in the whole process to ensure fair, just, reasonable and transparent land transfer process. (4) Announcement of land transfer and fund allocation

Before signing the transfer contract, the land transfer announcement was posted in the village committee. The main contents included the project overview, circulation scope, compensation standard and actual table. After the compensation funds have been paid, the village committee has posted an announcement on the allocation of compensation funds. The main contents include the distribution and payment of compensation funds.

Interview 1 Date: 2019.7.8 Location: Dajing village, Tuyouqi County Participants: cadres of Haizi Township in Tuyouqi county, committee members and representatives of Dajing village in Tuyouqi county Interview record Mr. Bai D, member of Dajing Village Committee There are 235 households in Dajing Village, with a population of 708 persons, including 380 males and 328 females.The majority of the villagers are Han nationality. There are 2 households with 4 persons are ethnic minorities, including 1 household for Mongolian nationality (2 persons) and 1 household for Hui nationality (2 persons).There are 7 households enjoying low-income allowance, with CNY 5400/person/year of allowance. There are 5 households who have poverty card record before, mainly because of lack of labor and disability.However, with the help of enterprises and shares, they have been lifted out of poverty in 2018. There are about 7,230 mu of cultivated land in the village, including 6098 mu of cultivated land and 1,132 mu of forest land and wasteland. 263.1 mu has been transferred to The Inner Mongolia Xiaoweiyang Husbandry Technology Co., Ltd. The village mainly grows corn, with a net income of 1,000 yuan per mu. Some farmers raise sheep and pigs. The population of migrant workers is about 130 with 70 for males and 60 for females. Working outside can have an annual income of about 36,000 yuan. The main source of income for farmers is to go out to work, mainly in Baotou City and surrounding counties. Nearly every household with labor has family members who are engaged in non-agricultural work. Inner Mongolia Xiaoweiyang Husbandry Technology Co., Ltd. Has been publicized since the beginning of construction for the mutton sheep breeding base. Since 2011, they had began to explain the land transfer policy, compensation standards, and land transfer schedule. The company, after agreed by the villagers' committee and the villager group, went through relevant approval procedure, then registered and passed the township land transfer service center to review the inflowing party's operating capacity and business scope, and report to the county government for record. The Dajing Village Committee mainly undertake the work. Regarding the compensation allocation method, the procedure including: Inner Mongolia Xiaoweiyang Husbandry Technology Co., Ltd. paid the compensation to the Tuyouqi County Government, and then the Tuyouqi County Government allocated to the Haizi Township Government, and then the Haizi Township Government allocated to the Dajing Village Committee.The rent for land transfer has been confirmed and publicized by the village representative meeting, then part of the money has been allocated to the villagers, and part of it have been reserved as the infrastructure fund for the village.There is no negative impact for the land transfer. Inner Mongolia Xiaoweyang Husbandry Technology Co., Ltd. freely

trained the villagers for cultivate farming, and purchase corn and lambs from villagers. Villagers’ income has been increased greatly. In 2012, all land transfer work was completed. The affected households signed compensation agreement and received compensation. There are no remaining problems.

Interview 2 Date 2019.7.9 Location: Dushoujiang Village, Tuyouqi County Participants: cadres of Haizi Township of Tuyouqi County, committee members and representatives of Dushoujiang village Interview Record Mr. Bai, secretary of the Dushoujiang village There are 230 households in the DuShoujiang village with a population of 1,082, including 752 males and 330 females. The majority of the villagers are Han nationality, and there are 23 households with 32 people are Mongolian nationality. It is allowed for intermarriage between Han nationality and Mongolian nationality. There are 5 households enjoying low-income allowance, with CNY 200/person/month of allowance. In 2017, 2 households set up poverty-stricken card, mainly due to lack of labor and disability. At the end of 2017, the village committee has helped lift poverty. There are about 4,500 mu of cultivated land in the village. The village mainly grows corn. The net income per mu is 1,000 yuan. Some farmers raise cattle, sheep and pigs. There are about 300 migrant workers with males as majority. The income of migrant workers can be around 30,000 yuan. The main source of income for farmers is to go out to work, mainly in the Tuyouqi county and surrounding counties. In the households with labor, almost every household has family members who are engaged in non-agricultural work. Inner Mongolia Xiaoweiyang Husbandry Technology Co., Ltd. Has been publicized since the beginning of construction for the mutton sheep breeding base. Since XXX, they has began to explain the land transfer policy, compensation standards, and land transfer schedule. The company, after agreed by the villagers' committee and the villager group, went through relevant approval procedure, then registered and passed the township land transfer service center to review the inflowing party's operating capacity and business scope, and report to the county government for record. The Dushoujiang Village Committee mainly undertake the work. Regarding the compensation allocation method, the procedure including: Inner Mongolia Xiaoweiyang Husbandry Technology Co., Ltd. paid the compensation to the Tuyouqi County Government, and then the Tuyouqi County Government allocated to the Haizi Township Government, and then the Haizi Township Government allocated to the Dushoujiang Village Committee, then the Dushoujiang Village Committee allocated to villagers. Most of the villagers can understand land transfer. In 2013, all land transfer work was completed. The affected households signed compensation agreement and received compensation. There are no remaining problems.

Interview 3 Date: 2019.7.9 Location: Dushoujiang village, Tuyouqi county Participants: cadres of Haizi Township of Tuyouqi County, committee members and representatives of Dushoujiang village Interview Record Ms. Zhi, Farmer, 49 years old, Dushoujiang village There are currently 4 people in the family, 2 male and 2 female.The son is married and there are no children now. Our family is not a poor-income household and no elderly person living alone. The whole family has 39 mu of land, mainly irrigated land.Corn is now grown in the field, and 70 pigs are also raised. All of the 4 people in the family have the ability to work. The total income of planting corn and breeding pigs is 75,000 yuan per year, and less the total expenditure last year, the annual net income is 35,000 yuan. Males in the family can get more income, but do less housework and cleaning, such as washing clothes, cooking, and cleaning,etc. Housework are all undertaken by women. Women work at home for farming, male work outside, participate in community meetings and public events. General family decision-making and important family issues are made by men. I have heard but don't know much about this project. I learned through government announcements and village cadres &representatives. I know the content of this project has the construction of good breeding base and animal isolation site at the Mandula Port. I support the project to be implemented in the village, because the implementation of this project will have many advantages for the villagers, it is very necessary, and it is necessary for our farmers to have certain benefits; it can help us to significantly improve the employment capacity of the aquaculture industry and the management level of the aquaculture industry. It can help us increase income and improve the quality of life.

Interview 4 Date 2019.7.9 Location: Dushoujiang village, Tuyouqi county Participants: cadres of Haizi Township of Tuyouqi County, committee members and representatives of Dushoujiang village Interview Record Mr. Lu, affected people from land transfer, 44 years old There are currently 3 people in the family, 2 male and 1 female.The son is not married yet. The whole family now has 15 mu of land, mainly irrigated land.Before the land acquisition in 2012, I mainly managed the cultivated land by myself. I also raised sheep. There were no corn and vegetables grown in my family. In 2012, land acquisition began, and other cultivated land was successively acquired. Now the main income of the family comes from farming and self-employment. The land transfer of 26 mu have compensation of CNY260,000, all received already. I used the compensation for business. Now I am also a self-employed household. Now my income is much better than before. Housing conditions have improved, the health environment is more comfortable than before, and living conditions have improved.

Interview 5 Date: 2019.7.10 Location: Zhaodi village, Guyang county Participants: Cadres in Jinshan Town, Guyang County, committee members and representatives of Zhaodi Village, Guyang County Interview Record Mr. Zhang, Deputy Secretary of the Party Committee, Zhaodi Village There are 1185 households in the Zhaodi village with a population of 2,493, including 1230 males and 1263 females. The majority of the villagers are Han nationality. There are 15 households of ethnic minority, including 2 households (5 people) are Mongolian nationality, 2 households (5 people) are Hui nationality, and 11 households (20 people) are Man nationality. There are 105 households enjoying low-income allowance, with CNY 5700/person/year of allowance. 14 households (26 people) set up poverty-stricken card, mainly due to lack of labor and disability. There are about 25,100 mu of cultivated land in the village. The village mainly grows corn. The net income per mu is 1,000 yuan. Some farmers raise cattle, sheep and pigs. There are about 750 migrant workers with males as majority. The income of migrant workers can be around 20,000 yuan. The main source of income for farmers is to go out to work, mainly in the Guyang county and Baotou city. In the households with labor, almost every household has family members who are engaged in non-agricultural work. Inner Mongolia Xiaoweiyang Husbandry Technology Co., Ltd. Has been publicized since the beginning of construction for the mutton sheep breeding base. Since XXX, they has began to explain the land transfer policy, compensation standards, and land transfer schedule. The company, after agreed by the villagers' committee and the villager group, went through relevant approval procedure, then registered and passed the township land transfer service center to review the inflowing party's operating capacity and business scope,

and report to the county government for record. The Zhaodi Village Committee mainly undertake the work. Regarding the compensation allocation method, the procedure including: Inner Mongolia Xiaoweiyang Husbandry Technology Co., Ltd. paid the compensation to the Jinshan County Government, and then the Jinshan County Government allocated to the Zhaodi Village Committee. In 2012, all land transfer work was completed. The affected households signed compensation agreement and received compensation. There are no remaining problems.

9. Grievance and Complaint

According to the survey results, in the process of land transfer, due to the establishment and smooth implementation of a sound complaints mechanism, the Project has not received complaints from the villagers. Affected people may complain or dissatisfied with the circulation process or other issues and may appeal in various ways. The appeal process is detailed in the figure below. The basic appeal passages are as follows: Stage 1: If the affected people are dissatisfied with the compensation and procedures or related implementation work, they can make an oral or written appeal to the village committee; if it is a verbal complaint, it must be handled by the village committee and recorded in writing. The village committee should resolve or provide feedback within 2 weeks.

Stage 2: If the complainant is dissatisfied with the decision of the village committee, he may appeal to the Subogai Township Land Transfer Service Center or other relevant departments of the township government after receiving the written comments from the village committee. Or within 3 months, according to the Civil Procedure Law, file an administrative lawsuit with the township people's court. Affected people can appeal against any aspect of land transfer, including compensation rates and payment time. The above appeal passages have been notified through meetings and other means to make them fully aware of their right to appeal.

10. Conclusion

According to government laws and the ADB safeguard policy statement, land transfer work is progressing smoothly. Xiaoweiyang Group provided various training support to village committees and affected households. (1) During the transfer of land that has been transferred, the township land transfer service center, the village committee and relevant units have organized several public participations, and the compensation fees and payments have been implemented in accordance with the signed agreement. In general, all turnover and compensation measures are implemented based on full public participation, without any remaining problems. (2) During the implementation and circulation of the project, complaints passages were unblocked. Up to now, no complaints have occurred. The affected villages and villagers have supported the project construction and expressed satisfaction with the circulation and compensation. (3) After investigation, the funds transferred by each affected village have all been paid according to the contract, with no problem existed. (5) Through the various resettlement measures affected by land transfer, the production and living standards have been restored, and household income has been greatly improved.

Suggestion: (1) Handle the 90-mu land use certificate of Guyang Ranch as soon as possible; (2) During the implementation of the project, priority will be given to training and employment opportunities for villagers involved in the land transfer contracts.

Attachment A: land transfer contract signing and public participation site photos

Attachment B: Land transfer contracts

Attachment C: Pay order

Renovation of breeding bases for breeding and Ranch4

Animal quarantine isolation site at Mandula Port

Ranch No.2

Ranch No.3

Tuyou Banner Slaughtering and Processing Logistics Base

Attachment D: Project Land Use Certificate

Appendix 2: Land Statement of Mandula Port International (road)

Logistics Park Service Area

ADB-financed Land Statement of Mandula Port International (road) Logistics Park Service Area The ADB-financed Mandula port international (road) logistics park service area is located in east side of Mandula international logistics park, the newly built Mandula port international (road) logistics park service area, its planning covers an area of 366.90mu land, the main construction including closed parking area and repair service area, 1 newly built comprehensive services building (3 floors), including accommodation, catering, store and related supporting facilities. The land was transferred from state-owned unused land to state-owned construction land in 2013. There is no ground attachments or APs within the scope of project construction. After checking, the boundary is clear, and the ownership is undisputed. Hereby certify.

Darhan Muminggan Joint Banner (Damaoqi County) Department of Natural Resources September 4, 2019

Appendix 3: Land Statement of Mandula Port (road) Logistics Park

Customs Supervision Places

Land Statement of ADB-financed Mandula Port (road) Logistics Park Customs Supervision Places The ADB-financed Mandula port (road) logistics park customs supervision places is located on the west side of Mandula international logistics park, the newly built Mandula port (road) logistics park customs supervision places, its planning covers an area of 441.76 mu, the main construction including 1 fully enclosed storage shed (automation), 1 comprehensive office building (2 floors), and ground hardening, network frame and pipe network facilities of related to road network. Auxiliary projects for water supply, drainage, heating, lighting, telecommunications, monitoring, traffic signs and signal lights. The land was transferred from state-owned unused land to state-owned construction land in 2013. There is no ground attachments or APs within the scope of project construction. After checking, the boundary is clear, and the ownership is undisputed. Hereby certify.

Darhan Muminggan Joint Banner (Damaoqi County) Department of Natural Resources September 4, 2019

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Appendix 4: Resettlement Information Booklet (RIB)

(Name of affected person)

The proposed multi-tranche financing facility (MFF) for the Inner Mongolia Regional Cooperation and Integration Promotion Investment Program (the Program) will help reach a strategic position to strengthen its links between the People's Republic of China (China) and its neighbor Mongolia and other central Asian countries. By strengthening the links between Inner Mongolia and Mongolia to the border areas and expanding economic opportunities, the construction of the loan project will promote the implementation of the "The Belt and Road" initiative and the planning and construction of China-

Mongolia-Russia economic corridor, and promote the connectivity and investment and trade facilitation in China-Mongolia border areas. Strengthening economic and trade exchanges and cultural exchanges between Inner Mongolia autonomous region, Mongolia and Russia; promote the development and construction of minority areas; raise production and living standards and improve living conditions in border areas. Through the project construction, expand and enhance international cooperation platform.

The Project will affect your family (entity) to some extent. This booklet is provided to you so that you understand the basic information of the Project, state policies on house demolition and resettlement, and possible impacts on you.

I. Composition of the Project

The subproject has two outputs, including:

(1) Mandula port international logistics park road upgrading: the total investment of the project is

CNY 611.34 million, mainly including the expansion project of freight passage at Mandula port, service area of international road logistics park at Mandula port, and customs supervision place of road logistics park at Mandula port.

Mandula port quarantine and sheep breeding center mutton sheep industry comprehensive development integration project: the total investment of the project is CNY 607.57, and the main

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construction contents include the construction of fine breeding base, the construction of Mandula port animal quarantine, the upgrading and transformation of breeding base, the construction of traceability management system, the fund for poverty alleviation of mutton sheep industry, and the construction of

Tuyou banner slaughtering and processing logistics base. Among them, the newly rebuilt and expanded infrastructure mainly includes four parts: 1 newly built fine breeding base; 1 newly built

Mandula port animal quarantine; 5 reconstructed breeding bases; 1 newly built slaughter and processing base.

II. Impacts of Project

The land acquisition of this sub-project is caused by Mandula port international logistics park road upgrading. This project will involve the expropriation/occupation of 1170.77 mu of land, in which:

(1) The expansion project of freight passage at Mandula port will acquire 362.11 mu land of

Eerdengaobao village in Mandula town, including: [i] 279.11 mu of collective land (grassland),

of which 114.31 mu belongs to village collective grassland of Erdengaobao village, without

APs; 164.80 mu collective grassland is owned by herdsmen of Eerdengaobao village, affecting

3 households with 12 people, all of whom are ethnic minorities (Mongolian).[ii] occupying 83

mu of state-owned construction land, without APs.

(2) Mandula port international road logistics park service area project will occupy 366.90 mu of

state-owned land (construction land), without APs.

(3) Mandula port road logistics park customs supervision site subproject will occupy 441.76 mu

of the state-owned land (construction land), without APs.

In addition, Mandula port quarantine and sheep breeding base mutton sheep industry comprehensive development integration project: 5 breeding bases are renovation projects, the original construction has completed the land transfer process, and obtained the collective land use certificate before it starts ; 1 slaughtering and processing base is the land transferred by the government, which has obtained the land use certificate and completed the land acquisition before the transfer. A grassland transfer agreement has been signed in an animal quarantine, and the payment of compensation had been paid timely and fully. Therefore, in accordance with the SPS of the ADB, DDR

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have been prepared for the road that has completed land acquisition and related sub-projects of land acquisition and land transfer, to understand the real situation, as well as the compensation and resettlement of APs, without complaints, there is no remaining issue left (See Appendix 1). Those affected households will still be provided with training and other project-related opportunities as part of this RP.

Institutional capacity building and strengthening.

III. Compensation Standards

3.1 Compensation Rates for Collective Grassland

The construction of the expansion project of Mandula port freight passage will involce the acquisition of 279.11 mu (Grade IV) of Eerdengaobao village of Mandula town. In order to strengthen the protection, management, construction and rational utilization of grasslands and safeguard the vital interests of herdsmen of all ethnic groups, the people's government of Inner Mongolia Autonomous

Region issued the notice on the collection and use of grassland vegetation recovery fees (internal affairs issue no. [2012] No. 8), which came into effect on January 1, 2012. The grassland compensation fee shall be compensated in accordance with the uniform annual output value of land expropriated by the Inner Mongolia autonomous region according to the notice of the general office of the people's government of the Inner Mongolia autonomous region on promulgation of the standard for uniform annual output value of land expropriated by the region and the comprehensive land price expropriated by the region (No. 4 [2018] issued by the internal affairs office, effective from April 1, 2018) issued by the Inner Mongolia autonomous region government. The grassland compensation standard is calculated as 30 times of the average annual output value of the three years prior to the expropriation of the grassland, namely (92.97*30=2789 yuan/mu). The compensation standard of Damaoqi County grassland is shown in table 1 below. Table 1: Compensation Standard of Grassland in Damaoqi County Unit: yuan/mu Correction Unified Times of Standard Area/district Description factor annual compensation of unified pasture

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output annual value production Shibao town (Shibao village, Wanertu village, Guluzhou village, Dasuji village, Saiwusu village, Xingfu village, Kunduitan village, Wendubuling village, Diansubulang village, Hongshan village) Wuke town Wukehudong village, Donghe village, Dahanhai village, Niancaowan village, Daxitan village, Dongshanpan village, Wulanwudong village, Damaohudong village, Taiping village, Erliban Class I 518.16 25 12954 1.00 village, Saihudong village, Xihe township (Xihe village, Dechengyongcheng, Shilanhada village, Shilawenge village, Benbutai village, Qianhe village, Delinggou village, Changhan village Xiaogongwen village Xiaogongwen village, Sailin village, Boluotu village, Dajing village, Changhan village, Huangheshao village, Xiguaizi village, Xigedan village, Laduijiu village Xilamuren (Baiyannaoer village, Huhediansu village, Halawusu villageBailingmiao town South part of Bailingmiao village Class II Mingan townHugejiritu village, Narenbaolige 105.53 30 3166 1.00 villageDaerhan townAlatengaodu village, Hashatu village, Eerdengaobao village Bayinaobao townDabuxilatu village Mingan townXilachaolu village, Sharutala village, Bayintala village, Bayinmandula village, Bayinhanggai villageBaiyanhua town Aolonghudong village, Wulanbaolige village, Baiyanaobao villageDaerhan town Class III Chaganaobao village, Xilahada village 101.57 30 3047 1.00 Bailingmiao townNorth part of Bailingmiao villageChaganhada townHadahashao village, Bayinsaihan village, Narenbaolige villageBayinaobao townBayinhua village, Bayinwulan village, Wulanchabu

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village, Gerileaodu village, Maodukundui village, Wulanbaolige village Mandula townBaiyinhala village, Erdengaobao village Baiyanhua town ClassIV Jihulongtu village, Baiyinchagan village, 92.97 30 2789 1.00 Kailinghe villageChaganhada town Tenggenaoer village Data Source: Department of Natural Resources (August 2018)

Since the acquired grasslands in this protect are collective grassland, most of them are owned by herdsmen, except a few of which are owned by village collective. The herdsmen have the right of land ownership (the grassland certificate), hence, according to the grassland law, all the land compensation for the acquisition of the collective grassland of village will be directly compensated to Eerdengaobao village; for the acquired grassland of the herdsman, the land compensation and resettlement fee shall be fully compensated to the herdsman according to the actual construction.

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3.2 Fees Transferred to the state-owned land

This project belongs to the public utility construction project, the state-owned land will be acquired by means of allocation, there is no need to pay the state-owned land transfer fee, but some necessary land procedures need to be gone through.

In addition to the state-owned construction land, cultivated land, grassland, unused land and other types of land, he use fee for new construction land shall be paid by the land-use unit to the Department of Natural Resources, and the land type shall be converted to state-owned construction land. Table 2: Other Fees Standard Items Unit Remarks (CNY) All the fees will New construction land occupancy charge m2 10 be paid to Land Occupation Tax m2 40 Department of Natural Resources and Grassland recovery fee mu 2000 department of grassland

IV. Entitlement Matrix

The entitlements are presented in the table below: Table 3: Entitlement Matrix Type of Impact Scope Entitlements Remarks Impact Collective grassland Compensation fee for Grade IV grassland: of 279.11 mu in 92.97*30=2789 yuan/mu. Eerdengaobao village

114.31 mu belongs to Cash compensation will be paid to village committees. Collective Eerdengaobao village Then the village committee will discuss with the

grassland collective and affected households on how to use cash compensation

for the village and the herdsmen;

164.80 mu belongs to All the land compensation fee and resettlement fee will herdsman, affect 3 be paid to the herdsmen in full. Joint HHs with 12 APs, all signature of

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Type of Impact Scope Entitlements Remarks Impact of them are Mongol Other or various livelihood measures include free husband and nationality skills training, access to employment opportunities, wife on the voluntary enrolment on social security insurance to compensation ensure that their incomes and/or livelihoods are fully documents. restored and sustainable.

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V. Appeal Procedures The basic grievance redress system is as follows Stage 1: If an AP is dissatisfied with any LA and resettlement safeguard issue, he/she can file an oral or written appeal with the community Mandula town or village committees. In case of an oral appeal, the Mandula town or village committees will handle the appeal and keep records. Such appeal should be solved within 2 weeks

Stage 2: If the AP is dissatisfied with the disposition of Stage 1, he/she may file an appeal with Damaoqi County Natural Resources Department or the LA management office (depending upon the issue) after receiving such disposition, which shall make a disposition within 2 weeks. Stage 3: If the AP is still dissatisfied with the disposition of Stage 2, he/she may file an appeal with Damaoqi County Natural Resources Department receiving such disposition, which shall make a disposition within 2 weeks. Stage 4: If the AP is still dissatisfied with the disposition of Stage 3, he/she may apply for administrative reconsideration with Damaoqi County Government after receiving such disposition within 3 months. If an AP is still not satisfied and believes they have been harmed due to non- compliance with ADB policy and they have made good faith efforts to solve their problems by working with the ADB Project Team, they may submit a complaint in accordance with ADB’s Accountability Mechanism. The information on how to make a complaint can be found at internet site (Website is: www.adb.org/Accountability-Mechanism/) Mass media will be used to strengthen the publicity and reportage of resettlement issues, their resolution and follow-up activities, and comments and suggestions on resettlement from all parties. During the construction and implementation phases of the subproject, the appeal procedures (GRM) will remain effective to ensure that the APs can use them to address relevant issues and grievances.

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Banner Legal Authority Damao Banner People’s Government

Banner Disciplinary ADB Inspection Authority Department of Natural Resources Department/ Banner Appeal Accepting Authority Mandula town government/ Village Committees

Affected People

Figure 1: Grievance Redress Flowchart In order that the APs can feed back their grievances timely, contacts have been appointed for different appeal accepting agencies and their contact information disclosed. Table 4: Contact List for the Project Remar No Department Position Name Tel k Damaoqi County Bureau Director of 1 Su Rige 15904722709 of CommercePMO bureau Damaoqi County Bureau Section Chief 2 shepherd 15561459990 of CommercePMO Damaoqi County Bureau Section Chief 3 Wu Han 18847273111 of CommercePMO Damaoqi County Section Chief 4 Department of Natural Ding Zhihong 13948822576 Resources 5 Mandula town Dupity mayor Yang Changchun 13847296662 Natutal Resources Person in 6 Division of Mandula charge Ba Tusuhe 13739928345 town Mandula town House Person in 7 Demolition Management charge Wang Yongliang 13514720488 Office 8 Eerdengaobao village Secretary Ba Tutaogetao 13947226082

Damaoqi County Letters 9 Member Staff Tian Jizhou 15540233366 and Visits Depatment Damaoqi County 10 Scretary Li Mingchang 13847256250 Discipline Department Damaoqi County Law 11 Member Staff Pang Yan 13754023303 Department

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Appendix 5: Relevant Laws and Policies of China and Inner Mongolia

The Implementation of the Land Administration Law of the People’s Republic of China in Inner Mongolia Autonomous Region Chapter 2 The ownership and use right of land Article 6 The implementation of land registration and certification system by the autonomous region according to the law. The owners of the collective land, the user of the collective construction land and the user of the state-owned land shall apply for land registration to the land administrative departments of the people's governments at or above the county level or their land registration organs. Collective land shall be registered and put on record by the people's government of county, and then the collective land ownership certificate shall be issued to confirm the ownership. Where any unit or individual uses the state-owned land according to the law, he people's government at or above the county level shall register and put on record and then the state-owned land ownership certificate shall be issued to confirm the ownership. The specific organs for registration and certification of state-owned land used by units affiliated to the autonomous region shall be determined by the people's government of the autonomous region. The specific registration and certification organs of the state-owned land used by the affiliated units of the league city shall be determined by the administrative office of the league and the people's governments of cities. Unused state-owned land and reclaimed state-owned land shall be registered and put on record by the people's government at or above the county level. The people's governments at or above the county level shall confirm the ownership and right to the use of grasslands and woodlands in accordance with the general plans for the utilization of land, and shall handle such matters in accordance with the relevant provisions of the grassland law of the People's Republic of China and the forest law of the People's Republic of China respectively. No grassland ownership certificate, grassland use certificate or forest certificate may be issued to the same plot at the same time. Article 7 Changing of the land ownership, the use right or for buying and selling, transfer of the ground buildings, structures and other attached objects that lead to the change of the use right of land, an application must be submitted to the land administrative departments at or above the county level within 30 days from the date of signing of the contract and the original land registration authority shall put on registration for the changing of the land ownership and use right in accordance with the law.

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Article 8 According to the law, the ownership and use right shall be protected by law and shall not be infringed upon by any unit or individual. Article 9 In any of the following circumstances, the original registration authority shall cancel the land registration: (i) Reclaiming of the use right of the land in accordance with the law; (ii) The expiration of the agreed term for the transfer and lease contract and the land user fails to apply for renewal or the application for renewal is not approved; (iii) The applicant conceals facts, forges supporting documents or adopts other illegal means to defraud registration when applying for registration; (iv) Registration of the ownership or use right of the land are lost due to natural disasters; Chapter 5 The construction land Article 27 Land occupation for construction shall conform to the general plan for the utilization of land and the annual plan for the utilization of land. For the occupation of land, using for urban planning, the people's governments at or above the county level shall uniformly acquire the land, provide land for each project and go through the procedures for applying for the transfer of agricultural land. It is forbidden for any unit or individual to occupy urban public green space for construction projects. The land administrative departments at or above the county level shall draw up plans for the transfer of agricultural land, supplementary cultivated land and the plans for land acquisition when the agriculture land had been transferred or applied for approval. The plans shall be submitted to the people’s government, which has the power of approval after being examined and verified by the people's governments at the corresponding levels as well as the land administrative departments at the next higher level for approval. Article 28 Application procedures for specific construction projects (i) Land users shall apply to the land administrative departments at or above the county level for the use of land for construction purposes during the feasibility study of construction projects; (ii) When a land user applies to the administrative department of project or the administrative department of planning for the approval of a project or a plan, the pre- examination report on the use of land for a construction project issued by the administrative department of land at or above the county level must be attached; (iii) After the approval of a construction project, the land user shall, in accordance with the prescribed procedures, go through the formalities for land application and approval by the land administrative department on the basis of the pre-examination report of the land used for the construction project and the approval document of the planning permit for construction land.

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After the people’s government, which has the power of approval, approves the use of land, the land administrative departments at or above the county level shall organize the implementation of the plan. Article 29 The people's governments at or above the county level shall, in examining and approving land for construction purposes, go through the formalities in accordance with the following provisions: (i) If the project occupies state-owned land according to the overall plan, in addition to the key construction projects approved by the state council, military facilities, construction projects across the province, autonomous region administrative areas and the project approved by state council shall be approved by state council, other construction land shall be applied by the people's government at or above the county level and then applied step by step to the autonomous regional people's government for approval; (ii) If the project occupies the approved transfer of agriculture land or the land within the scope of land acquisition, it shall be approved by the people's government above the county level and reported to the land administrative department of the people's government of the autonomous region for the record; (iii) If the Village villagers committee in pastoral area uses the unused land owned by the collective for non-agricultural construction, the power of examination and approvals are as follows: if the land area less than 1 hectare (excluding 1 hectare), it shall be approved by the people's government at the county level; if the land area above 1 hectare (including 1 hectare) and less than 3 hectares, it shall be approved by the administrative office of the league and the municipal people's government; if the land area over 3 hectares (including 3 hectare), it shall be submitted to the people's government of the autonomous region for approval step by step; (iv) If the occupied construction land involves agriculture land transfer into construction, it shall be submitted to the people's government of the autonomous region or the state council for approval according to the limits of authority prescribed by the land administration law. The transfer of agriculture land within the scope of construction land for villages and towns, in order to implement the general plan for the utilization of land for Town town, into construction land may be approved by the league administrative office authorized by the people's government of the autonomous region or the people's government of the city; (v) If the construction land involves land acquisition, it shall be submitted to the people's government of the autonomous region or the state council for approval according to the limits of authority prescribed by the land administration law. Article 30 For the acquisition of basic farmland, the land compensation shall be 8 to 10 times the average annual output value of the three years prior to the acquisition; for the

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acquisition of other cultivated land, the land compensation shall be 6 to 8 times the average annual output value of the three years prior to the acquisition. The compensation for young crops of the acquired farmland shall be compensated for the output value of the crops in the current season. The houses on the acquired land shall be compensated according to the standards by relevant departments; wells, pipelines, sheds, fences and other facilities shall be reasonably compensated according to actual losses. No compensation shall be given to the crops and attachments hastily built after the announcement of the land acquisition plan. Article 31 For the acquired cultivated land, the resettlement fees for each agricultural population is 4 to 6 times the average annual output value of the first three years of the cultivated land. However, the maximum resettlement fees per hectare of acquired land shall not exceed 15 times the average annual output value of the three years preceding the acquisition. Article 32 The standards for land compensation fees and resettlement fees for the acquired land other than cultivated land shall be separately formulated by the people's government of the autonomous region with reference to the standards for compensation fees and resettlement fees for cultivated land. Article 33 If the land compensation fees and resettlement fees fail to maintain the original living standards of the farmers and herdsmen who need resettlement, the resettlement fees may be increased with the approval of the people's government of the autonomous region. However, the sum of land compensation fees and resettlement fees shall not exceed 30 times the average annual output value of the three years prior to the expropriation of the land. All expenses for compensation of land acquisition shall be fully paid to the affected units and individuals within three months from the date f approval of the compensation and resettlement plan, and the affected units and individuals shall deliver the land within the prescribed time limit. If the compensation and resettlement fees are not paid in accordance with the provisions, the affected units and individuals shall have the right to refuse to deliver the land. Article 34 If the use right of state-owned land needs to be reclaimed for the public interest or the implementation of urban planning, appropriate compensation shall be given to the land owner according to the actual input of the land. Chapter 9 Supplementary Provisions Article 58 These measures shall go into effect as of the date of promulgation. The measures of the Inner Mongolia autonomous region for implementing the land administration law of the People's Republic of China > adopted by the standing committee of the people's congress of the autonomous region on July 31, 1989 shall be abrogated simultaneously.

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Regulations on Grassland Management in Inner Mongolia autonomous Region Chapter 2 Contract operation Article 1 Within the period of the contracted grassland operation, the contract-issuing party may not take back the contracted grassland. During the period of the contract, the contractor’s whole family settles down in a small town, according to the contractor’s wishes, the contractor shall retain his right to contract for grassland and allow him to transfer his right to contract for grassland in accordance with law. During the period of the contract, the contractor’s whole family moves into a city divided into districts and becomes a non- agricultural household, the contracted grassland shall be turned over to the contract-issuing party. If the contractor fails to do so, the contract-issuing party may reclaim the grassland contracted for by law. During the period of the contract, when the contractor turns over the contracted grassland or contract-issuing party takes back the contracted grassland according to law, the contractor shall be entitled to the corresponding compensation if he invests the contracted grassland to build livestock production facilities and improve the production capacity of the grassland. Article 6 During the period of the contract, the contract-issuing party may not adjust the grassland contracted. It is really necessary to make appropriate adjustments to the grassland contracted by individual farmers and herdsmen under the special circumstances, such as serious as damage to the grassland contracted natural disasters. Approval must be obtained two-thirds of the members of Village villagers’ meeting of the collective economic organization or representatives of more than two- thirds of the villagers of Village and it shall also be submitted to the people’s government at the Town town level and the grassland administration department of the people’s government at the county level for approval. No adjustment shall be made in accordance with the provision of the contract. The following grassland can be used for adjustment: 1. Motorized grassland reserved by collective economic organization; 2. Grassland reclaimed by the contract-issuing party according to law 3. Grassland voluntarily returned by the contractor; 4. Grassland that through the improved treatment or formed by natural changes and has changed the procedures according to law. Article 7 motorized grassland that have been reserved according to regulations shall be used for: 1. Construction of engineering facilities directly serving grassland protection and

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animals husbandry production; 2. Disaster relief and poverty alleviation; 3. Developing collective economic; 4. Adjustment contracting grassland; 5. Other uses for public interests of collective economic organization. Article 8 During the period of the contract, the contractor-issuing party shall not unilaterally terminate the contract, force the contractor to abandon or change the right to contract the grassland under the pretext that the minority is subordinate to majority, or take back the mortgage arrears on the grassland contracted. Article 9 During the period of the contract, the contractor may voluntarily return the contracted grassland to the contract-issuing party. If the contractor voluntarily returns the grassland under contract, he shall notify the contract-issuing party in writing six month in advance. If the contractor turns over the contracted grassland within the period of the contract, he may not ask for the contracted grassland within the period of the contract. Article 10 During the period of the contract, if a woman gets married and does not acquire the contracted grassland or contracted land in her new residence, the contract- issuing party shall not reclaim the original contracted grassland; if a woman divorced or widowed and still lives or is not in the original place of residence but has not acquired the contracted grassland or contracted land in the new place of residence, the contract-issuing party shall not reclaim the contracted grassland. Article 11 The members of unit and individual of non-collective economic organization may not contract grassland without legal procedure. According to the law, people’s government at all levels shall clear out grassland illegally contracted for operation. Chapter 3 The transfer of grassland contract management right Article 12 The modes for transfer of grassland contract management rights including subcontracting, leasing, exchange, transferring or other modes. The main part of grassland contracting right transfer is the contractor. The contract has the right to decide in accordance with law, whether or not the grassland contract management right is transferred or how it transferred. It shall not use the right of contract grassland as collateral for debts. Article 13 if the contractor subcontracts or leases the right to the grassland to a third party, the contracting relationship between the contractor and the contract-issuing remains unchanged. Article 14 In order to facilitate production and living, contractors may exchange grassland contract management right within the same collective economic organization. Article 15 Contractor has stable non-farm and pastoral occupation or steady sources of income, with the consent of the contract-issuing party, can transfer all or part of the

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grassland contract management right to other members of the collective economic organization, and the member establishes new contract relationship with the contact- issuing party, the original contractor’s contract relationship with the contract-issuing party shall be terminated immediately. Article 16 In order to develop the animal husbandry economic, contractors may voluntarily joint participation of grassland contract management right to become shareholders and engage in animal husbandry production. Article 17 The subcontracting fees, rents and transfer fees for the transfer of the grassland contracting right shall be determined by both parties through consultation. The circulation earning belongs to the contractor, and any organization or individual may withhold. Article 18 The department in charge of grassland administration under the people’s government at the Qi county level shall publish information on the paid transfer of grassland each year on the basis of the production capacity and utilization modes of local grassland. Article 19 In any of the following circumstances, a contractor shall be advocated to transfer the grassland contract management right. 1. Having no or few livestock; 2. No longer engaged in animal husbandry production; 3. Not a regular resident of the area. Article 20 The modes for transfer of grassland contract management rights including subcontracting, leasing, exchange, transferring or other modes, both parties shall sign a written circulation contract. If transferred mode adopts circulation mode, it shall be approved by the contract-issuing party; if subcontracting, leasing, exchange, transferring or other modes are adopted, both parties shall report to the contract-issuing party for the record. The content of the circulation contract includes: 1. Basic information of both parties; 2. Name, area, boundary and grade of grassland; 3. Grassland using; 4. Auxiliary production facilities; 5. Rights and obligations of both parties; 6. The form of circulation, price and payment method; 7. Term of circulation and commencement date and deadline; 8. Responsibility for breach of contract Article 21 Grassland contract management right transferred in accordance with law, after sign a written circulation contract, contract-issuing party shall go to the grassland supervision and administration agency of the grassland administrative department of the Qi county level people’s government for record.

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Chapter 6 Using Article 31 No or less grassland shall be occupied in the exploitation of mineral resources or in the construction projects; for the need of public interest, requisition or use grassland in accordance with law shall apply to the department of grassland administration of the people’s government autonomous region, and provided the following materials: 1. Project approval documents; 2. Evidential materials for the ownership of grassland on land required and used; 3. Feasibility report on the use of grassland by a qualified design unit; 4. Agreement on compensation and resettlement subsidies for grassland. The grassland administration department of autonomous regional people’s government shall examine and verify the materials provided by the applicant, after examination and approval, the examination and approval procedures for construction land shall be completed in accordance with the relevant laws and administrative regulation on land administration. Before examination and approval by the grassland administrative department of the people’s government of the autonomous region, the grassland supervisory and administrative agency of grassland administrative department of the people’s at or above the county level shall be designated for on-the-spot inspection. Article 32 The value of raising livestock mentioned in article 25 of the Regulation on the Administration of Grassland of the Inner Mongolia Autonomous Region, which refers to the livestock raised on the grassland according to their species, quantity, use, etc. the total value converted from the price provided by the local price department. Economic plant value mentioned in article 25 of the Regulation on the Administration of Grassland of the Inner Mongolia Autonomous Region, which refers to the plants growing on the grassland with food, medicinal, species and other utilization values, the total value converted from the price provided by the local price department. Article 33 The grassland compensation fees and resettlement fees stipulated in in article 25 of the Regulation on the Administration of Grassland of the Inner Mongolia Autonomous Region on the administration of grassland shall be subject to the grassland supervision and administration agency of the grassland administrative department of the people’s government at the county level, the calculation is based on the feed stock quantity, grassland monitoring data and price data provided by the local price department in the previous five years. Article 34 To carry out profit-making tourism activities on the grassland, an application shall be submitted to the grassland administrative department of the people’s government at or above the Qi county level to provide the materials on the development and utilization of grassland to carry out tourism activities , and the grassland administrative department of the people’s government at or above the Qi county level shall be approved the

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application, handle the prairie permit for profit-making tourist activities, the relevant administrative departments before the other formalities. Profit-making tourism activities on the grassland shall not infringe on the legitimate rights and interests of users, owners and contract operators of the grassland or destroy the vegetation of the grassland. Article 35 Engaging in such operations as earth, sand, rock, mineral resources and other works on the grassland, an application shall be submitted to the grassland administrative department of the Qi county level to provide the relevant materials, after examination and approval, getting the mining of grassland soil, sand, stone and mineral resources licenses; exploiting the mineral resources shall handle relevant procedures in accordance with the law. Engaging in mining activities such as earth, sand, stone or mineral resources, etc. on grassland used by others shall also obtain the consent of the users and give reasonable compensation. Article 36 Temporarily occupying the grassland for exploration, drilling, construction of aboveground and underground projects, etc. an application shall be submitted to the grassland administrative department of the Qi county level to provide the relevant materials, applying for temporary grassland operation permission according to law. Article 37 To carry out profit-making tourism activities on the grassland and engage in mining activities such as earth, sand, stone or mineral resources, etc. and Temporarily occupying the grassland for exploration, drilling, construction of aboveground and underground projects, etc. need to handle the license document, which is uniformly printed by the grassland administrative department of the people’s government of the autonomous region. Article 38 Temporary occupation less than 30 mu of grassland shall be approved by the grassland administrative department of the people’s government at the Qi county level; temporary occupation above 30 mu or less than 500 mu of grassland shall be approved by the Meng administrative office and the grassland administrative department of the municipal people’s government divided into districts; temporary occupation more than 500 mu of grassland shall be approved by department of grassland administration under people’s government of autonomous region. Chapter 9 Supplementary articles Article 54 Measures of the Inner Mongolia Autonomous Region for the Transfer of the Grassland Contract Management Right and Interim Regulation on the Balance of Grass and Livestock in Inner Mongolia Autonomous Region shall be invalidated from this regulation implemented. Article 55 The regulation shall come into force on May 1,2006.

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