1 Introduction

The Asian Development Bank Loan Environment Protection Project of Hai River and Luan River Basin in Hebei Province

Updated Resettlement Plan For Tangshan City Sewage Treatment Project

Tangshan City Sewage Treatment Project Office

in Hebei Province

P.R. China

August 2005

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

Contents

Abbreviations

PREFACE ...... 1

I INTRODUCTION...... 1

A BRIEF DESCRIPTION OF PROJECT ...... 1 B AREAS AFFECTED BY AND BENEFITED FROM THE PROJECT ...... 2 C EFFORTS TO MINIMIZE RESETTLEMENT AND ITS IMPACT...... 3

II SCOPE OF PROJECT IMPACTS...... 4

III SOCIOECONOMIC INFORMATION...... 3

A SOCIOECONOMIC SURVEY PROCEDURE ...... 3 B SOCIAL BACKGROUND OF PROJECT AREA ...... 3 C SAMPLE SURVEY ON AFFECTED HOUSEHOLD ...... 4 D SURVEY OF PUBLIC OPINIONS...... 6

IV OBJECTIVES, POLICY FRAMEWORK, AND ENTITLEMENTS...... 8

A THE OBJECTIVES OF RESETTLEMENT ...... 8 B RULES AND REGULATIONS...... 8 C RESETTLEMENT COMPENSATION RATE...... 9 D ENTITLEMENT MATRIX...... 12

V RESETTLEMENT AND REHABILITATION APPROACHES...... 14

A RP OF THE COLLECTIVE LAND REQUISITIONED ...... 14 B REHABILITATION PLAN FOR TEMPORARY LAND USE ...... 15 C RESETTLEMENT AND REHABILITATION FOR ENTERPRISES...... 16 D THE RECONSTRUCTION OF INFRASTRUCTURE...... 16

VI BUDGET FOR COMPENSATION ...... 17

A COMPENSATION...... 17 B ANNUAL INVESTMENT PLAN...... 19 C FUND FLOW...... 19

VII IMPLEMENTATION SCHEDULE OF RESETTLEMENT ACTIVITIES ...... 21

A RESETTLEMENT DOVETAIL THE PROGRESS OF PROJECT CONSTRUCTION ...... 21

VIII ORGANIZATIONS...... 23

A ORGANIZATIONAL FRAMEWORK...... 23 B RESPONSIBILITIES ...... 24 C STAFFING...... 27 D ORGANIZATION CHART...... 28

E MEASURES TO STRENGTHEN ORGANIZATIONAL CAPACITY ...... 29 F WORKING ROUTINE OF LAND ACQUISITION, HOUSE DEMOLITION AND RESETTLEMENT IMPLEMENTATION ...... 29

IX CONSULTATION, PARTICIPATION AND GRIEVANCE REDRESS ...... 33

A CONSULTATION AND PARTICIPATION ...... 33 B GRIEVANCES AND APPEALS ...... 35

X MONITORING...... 37

INDEPENDENT MONITORING ...... 38 REPORT ...... 41 ANNEX 1: THE GENERAL OUTLINE OF THE INDEPENDENT MONITORING AND EVALUATION...... 44

ANNEX 2: THE RELATED POLICIES ON RESETTLEMENT ...... 48

Abbreviation

ADB Asian Development Bank RP Resettlement Plan APs Affected persons PAUs Project Affected Units NRCR National Research Center for Resettlement UEPOHP Urban Environment Project Office of Hebei Province UEPO Urban Environment Project Office of Tangshan City STL Tangshan Wastewater Treatment Ltd UPB Urban Planning Bureau of Tangshan City LAB Land Administration Bureau of Tangshan City LABOC Land Administration Bureau of County HDO House Demolition Office of Tangshan City SRIMED Shanghai Research Institute for Municipal Engineering Design TTG Town and Township Government VAC Village Administration Committee AAOV Annual Average Outputs Value FDTB Fengrun District Traffic Bureau FDCCB Fengrun District City-Construction Bureau TWPNTSDP Tangshan Wastewater Pipeline Network of The South District Project

Preface

This is a modified RP and the original report has approved by ADB in 2001. Tangshan City Sewage Treatment Project consists of (i) the sub-project of Extension of Xin District Wastewater Treatment Plant and (ii) the sub-project of pipe network system. Among which, the pipe network system is divided into two parts by the railway in Xin District of Tangshan City, namely the north part and the south district. In the original RP, the people affected by south district of network system are somewhat more. To minimize the amount of resettlers, Tangshan City Sewage Treatment Company optimized the plan of south district of network system (detailed situation can be seen in section 1.3.2) and finally changed the route of trunk network of south district. So, it has to investigate the conditions of changed part have been investigated and concerned materials in original RP have now been updated in this version. As the plan of sub-project of Extension of Xin District Wastewater Treatment Plant and the north part of network system is not changed, this modification version only updated the situations of south district network system.

I Introduction

A Brief Description of Project

Hebei Hai and Luan Rivers Drainage Area Wastewater Treatment Project consist of four sub-projects, namely Wastewater Treatment Project of Tangshan City, Wastewater Treatment Project of Zhangjiakou City, Wastewater Treatment Project of Chengde City and Wastewater Treatment Project of Baoding City. In the old resettlement plan, Wastewater Treatment Project of Tangshan City includes two parts:

Extension of Xin District Wastewater Treatment Plant. The designed treatment capacity of Xin District Wastewater Treatment Plant is 33,000m3 /d, and the scheming capacity is 80,000 m3 /d. The extension plant is surrounded by agricultural lands and lies in the northwest of Xin District (Fengrun County), Tangshan... In the north lies the Huanxiang River, in the south there is a wet land which leads to the plant. , The extension plant covers 120 Mu of land space, lying on the southwest of the old wastewater treatment plant.

Wastewater pipe network system. In original RAP, the Wastewater pipe network system is divided into two parts by the railway in Xin District of Tangshan City. The length of north wastewater pipeline is 12.72km, through which wastewater flows into the wastewater treatment plant, along the main pipe in Xincheng Road and Hongqi Road, also along the part-pipe in Huanxiang River. The south wastewater pipeline is 19.48km, through which wastewater gathered by south main pipeline flows into wastewater treatment plant along the Bingma Road.

At present, the Wastewater pipe network system is still divided into two parts by the railway in Xin District of Tangshan City. The north part is not changed. The south part has changed. To minimize the amount of resettlers, the pipeline network of the south district will be changed to west outer ring of Fengrun District, beginning form Fengshun road in the east, along the west outer ring, 23m distant from the road, extending to Cao Xueqin Street, and finally leading to wastewater treatment plant in the north. The full length of the pipeline is 7.5 kilometers.

The present Fengshun Road and Ningguo Road, where motor vehicles are prohibited, are 1085m in length. D1000 concrete pipes are laid in visible grooves in the roads, with an average of 4.0m under the roads. Earth dug from the grooves is transported to and piled at the temporary site. It is about 5.8km from Ningguo Road along west outer ring to Cao Xueqin Road, and is manually constructed with pipes. For every 60m, there would be placed a work well, the top surface is 4m×5m, and the average depth is 4.5m. All the work wells are constructed by workers, and earth evacuated is temporarily piled along the side ditch of the road, and will later be collected and transported to temporary sties for placing earth.

Land within the coverage of the pipeline network is the state-owned land which has already been acquisitioned by Fengrun Traffic Bureau but has not been put into use. Road form the pipeline to the plant is owned by the wastewater treatment plant. No permanent land acquisition is involved, only some land attachments. No additional land acquisitioned is needed, as the temporary site for storing earth, which will be needed for expansion of the construction, is located in the plant.

The above-mentioned projects make use of Asian Development Bank loan for construction, land acquisition, house demolishing, impacts of resettlement and rehabilitation plan are included in this RAP.

This project is to start in June 2005, to be completed in December 2006.

B Areas Affected by and Benefited from the Project

All the areas affected by the this project are in Fengrun District,

The extension of wastewater treatment project involves 2 villages in Fengrun County. 120 Mu of collective lands (irrigated lands) are to be requisitioned, including 50 Mu of lands in Laoweizhuangzi village and 70 Mu of lands in Daanle village. The number of affected people is 181, including 99 laborers. There is no building and no demolition on the requisitioned lands is required.

Wastewater pipe network and the land used temporarily are divided into two parts, the south pipeline and the north pipeline. The south wastewater pipe network of ground attachments compensation of 3 Mu land and 628 trees, reconstruction of 1085m road. As the network component is constructed along the road or on the unused land, it does not affect people directly. The north wastewater pipe network has the length of 12.72km, related to 3 villages and 91.77 Mu of land used temporary with the affected population of 202. In addition, 4 enterprises will be affected.

Areas that will benefit from the project are also Fengrun District, and Fengrun District is an important part of urban framework, lying in the north of Tangshan. Now the wastewater treatment capacity of Xin District Wastewater Treatment Plant is 33,000 m3 /d, and the total of wastewater is about 110,000 m3 /d in Fengrun District. The extension plant of 80,000 m3 /d wastewater treatment capacity will improve the natural environment and citizens' health level, and also will improve the polluted state of Hai River and make the irrigation conditions of Huanxiang River better. Moreover, it will improve the underground water resources. It will contribute to city development, adapt to the open policy and quicken the speed of Tangshan's economics.

C Efforts to Minimize Resettlement and its Impact

a. Site Selection

The selection of project site is based on the alignment option that minimal resettlement, cultivated land acquisition and house demolition will take place.

By improvement of project design, the location of wastewater treatment plant, with 120 Mu of land acquisition and extension at southwest of old plant, is in the northwest of Xin District of Tangshan. Because of no buildings are on the requisitioned lands, no houses or structures will be demolished. At the same time this also greatly reduces the affected areas.

b. Design of pipeline route

The alignment of the pipeline has been optimized; efforts have been taken to avoid villages and houses, and reduce the quantity of affected households and people to a minimum. In the old design plan, the south wastewater pipe network has the length of 19.48km, related to 5 villages and 172.61 Mu of temporary land use. In addition, it also affected 546 m2 of residential house with affected population of 28 and 1 enterprise. In the new design plan, the pipeline network system is buried along the road, without land acquisition, and the land is state-owned by Fengrun District Traffic Bureau.

c. Improvement of construction procedure and reduce the adverse

impact to residents to minimum

The construction of wastewater pipe may interfere with the urban traffic, so effective measures such as adopting manually constructing with pipes, stopping construction at peak times, laying the pipe underground at the crossing roads and recovering the affected land in time, etc, will be taken to reduce the adverse impact on traffic. At the same time there will be good access for pedestrians.

II Scope of Project Impacts

This project will affect 2 counties and 6 villages of Tangshan City. 120 mu irrigable land will be requisitioned and this affect 181 persons. 291.77 mu land will be temporarily used and this will affect 202 persons. 4 enterprises will be affected with 701m2 wall and road. In total, this project will affect 383 persons.

More detailed situation can be seen in table 2-1.

Table 2－1 project impacts items Extension of Pipe network wastewater South Total treatment plant North part part Land requisitioned(Mu) 120 0 0 120 Affected 181 0 0 181 people(person) Affected labor(person) 99 0 0 99 Land used temporary 0 291.77 0 291.77 (Mu) Affected 0 202 0 202 people(person) Enterprises 0 4 0 4 0 857 0 857 Enclosure and road of enterprises（m2） 181 202 383 Total affected persons

a. Impacts of Wastewater Treatment Plant Project

The extension of wastewater treatment project involves 2 villages in Fengrun County. 130 Mu of collective lands (irrigated lands) are to be requisitioned, including 50 Mu of lands in Laoweizhuangzi village and 70 Mu of lands in Daanle village. The number of affected people is 181, including 99 laborers. There is no building and no demolition on the requisitioned lands is required.

b. Impacts of Wastewater Pipe Network

Wastewater pipe network and the land used temporarily are divided into two parts, the south pipeline and the north pipeline. Wastewater pipe network involves temporary land occupation.

The south wastewater pipeline network is buried along the road, without land acquisition.

220 mu of land will be occupied temporarily and the land is state-owned by Fengrun District Traffic Bureau. No people will affected by this project. Although the land has already been acquisitioned by Fengrun Traffic Bureau, the farmers living nearby are farming on it. The project will pay compensation for the ground attachments, comprising 3 Mu land and 628 trees of 8 farmers from around 4 villages, and for restoring to surface of the 1085m road.

The north wastewater pipe network has the length of 12.72km, related to 3 villages and 91.77 Mu of land used temporary with the affected population of 202. In addition, 4 enterprises will be affected.

See Table 2-2 for detail information about impacts of land acquisition. See table 2-3 for information about impacts on enterprises. Table 2-4 is the information about impacts on infrastructure and ground attachments.

Table 2-2: Impacts of Land Acquisition Wastewater Item unit treatment plant Pipe network total Irrigated land Mu 120 0 120 land acquisition Total Mu 120 0 120 Affected people Person 181 0 181 Irrigated land Mu 0 31.6 31.6 Dry land Mu 0 60.17 60.17 Temporary state owned land Mu 220 220 Land use Total Mu 0 291.77 291.77 Affected people Person 0 202 202

Table 2-3: Affected Enterprises Item Unit pipe network Total Quantity Enterprise 4 4 Enclosure areas M2 560 560 Enterprises Road areas M2 141 141 Affected people Person 0 0

Table 2-4: Affected Infrastructure and Ground Attachments Item Unit Pipe network 10kv pole Pole 2 Power 380V pole Pole 80 Transformer Transformer 3 Telephone pole Pole 19 Traffic and communication Highway m2 314 Water tower m2 1 Agriculture land and water conservancy facilities Exit of rain 1 Well Well 1

Tree trees (chest pathway 5-10 Tree 805 meter)

Item Unit Pipe network Toilet Piece 1 Enclosure m2 1500 Others attachments Shed vegetable Piece 1.5 Protective fence m2 400 cornfield mu 3

c. Project Impact Analysis

i. The Extension Of Wastewater Treatment Plant

The extension plant of Xin District Wastewater Treatment Plant lies in the southwest of the old plant, and requisitions 50 Mu of collective lands in Laoweizhuangzi village and 70 Mu of collective lands in Daanle village. The two villages both belong to Fengrun County.

There are 2431 residents living in Laoweizhuangzi village, and 1361 of them have the ability to work. In 1999, the average net income per capita of the village is RMB 3,246 and there are 1088 Mu of cultivated land. 112 persons will be affected by land acquisition, and 63 of them are laborers. After land acquisition, the average cultivated land per capital changes from 0.45 Mu into 0.43 Mu. Of all the labor force, 537 persons are engaged in agriculture, accounting for 59%; 155 persons are engaged in industry, accounting for 17%; 73 persons are engaged in construction, accounting for 8%; 36 persons are engaged in transportation, accounting for 4%; 46 persons are engaged in business and catering, accounting for 5%; the others 63 persons are engaged in service trades such as finance, insurance, and real estate management, accounting for 7%. Among the population of 2431, 1619 persons are of primary school and above, accounting for 66.6%. Land acquisition will bring the direct economic loss of RMB 25,000 in the exact year.

There are 2314 residents living in Dananle village, and 1208 of them have the ability to work. In 1999, the average net income per capita of the village is 3,500 yuan. 69 persons will be affected by land acquisition, and 36 of them are laborers. After land acquisition, the average cultivated land per capital changes from 1.02 Mu into 0.99 Mu. This 3% loss of cultivated is not considered significant and is unlikely to have a major impact of livelihood or income generation. Data indicates that household members are also involved in other income generating activities. Of all the labor force, 780 persons are engaged in agriculture, accounting for 65%; 156 persons are engaged in industry, accounting for 13%; 108 persons are engaged in construction, accounting for 9%; 48 persons are engaged in transportation, accounting for 4%; 36 persons are engaged in business and catering, accounting for 5%; the other 72 persons accounting for 6%. Among the population of 2314, 964 persons are of primary school and above, accounting for 41.7%. Land acquisition will bring the direct economic loss of 35,000 yuan in the exact year.

The two villages are both located in Fengrun City. The party committee and the village committee will use the fee of land acquisition on improving industry structure in the villages

in such activities as individual farms (for example, land cultivation, big vegetable shed, milk cow, etc). Land acquisition won't bring about the adverse impact on the two villages. On the contrary, it can accelerate the economy and improve the living standard of the two villages compared to as before.

ii. Wastewater pipe network project

The wastewater pipe network is divided into two parts, the north pipeline and the south pipeline. The south wastewater pipeline network to be designed across Fengrun District. The pipeline network system is buried and laid out with the usage of non-using land along the road, and is to adopt manual constructing pipes. So the construction won’t impact the traffic and any persons. During the implementation, the present Fengshun Road and Ningguo Road, where motor vehicles are prohibited, are 1085m in length. D1000 concrete pipes are laid in visible grooves in the roads. The road surface is 10cm pitch and 30cm ash dust. The road is owned by Fengrun City-Construction Bureau. Tangshan Wastewater Treatment Ltd and Fengrun City-construction Bureau have been agreed with that the road base will be tamped and resurface 10 cm tar after the sewage pipelines construction, same as before. In addition, there will be some smoke, dust, noise and sanitary garbage in the construction zone. Measures will be taken to alleviate these adverse impacts.

The north pipeline is laid along the Huanxiang River, including 2 towns and 3 villages. In the construction procedure, the pipeline will pass through 3 sections of the railway, 2 sections of highways and 1 bridge. There is no effect on traffic because measures of laying pipes underground when meeting railway or bridges and digging half of the road when crossing highways will be taken.

The wastewater pipeline requisitions 91.77 Mu of irrigated land. During the construction of pipe network, it is estimated that there will be 70 days of temporary land use. But these affected villagers will obtain the compensation for a year’s output value of land. Moreover the affected temporary land will be rehabilitated to pre-project condition when construction is over.

The pipeline passes through 4 enterprises, but only the enclosure and little of inner passages are affected, so there is no impact on workshops and offices, these enterprises will maintain normal business operation, and the income of the employee will not be affected. The detailed is showed in table 2-6.

In addition, there will be some smoke, dust, noise and sanitary garbage in the construction zone. Measures will be taken to alleviate these adverse impacts.

According to the relevant provisions of Land Administration Law of P.R.C., the lands can be assigned for urban infrastructure construction and commonwealth facilities according to the law. Thus, the state-owned lands used for north pipeline network construction do not need requisition. The south wastewater network needs to temporarily hire 220 mu

state-owned land and pay RMB 1 million Yuan to Tangshan Traffic Bureau at one time. So, total 383 persons are affected by this project. As they all near by Tanshan City, the villagers’ dependency to the land is somewhat not strong. They can find other jobs to support their family.

iii. Project impact on vulnerable groups

The survey on these vulnerable groups such as poverty, minority and women was carried out in the affected areas by the project whose main contents include the reason of the poverty, the types and requests of vulnerable groups, but the results express: There is no impact on vulnerable groups.

Table 2-5: Cultivated Land Affected AND house demolition By Wastewater Treatment Project Land Affected

Before Project Project impact County Town Item Villages Total Affected (district) (unit) Land Temporary land use land population Cultivated acquisition Population land State Irrigated Dry Irrigated land land land land

Wastewater treatment Laoweizhuangzi 2431 1088 50 0.05 112 Fengrun plant Daanle 2314 2350 70 0.03 69

Total 120 181 The north pipe（collective Xinqu Guzhuangzi Dongmazhuang 4990 6840 31.60 0.00 23 land

Fengrun Fengrun Xiaochenzhuang 2658 735.75 31.81 0.04 115

Fengrun Fengrun Laoweizhuangzi 2431 1088 28.36 0.03 63

Total 31.60 60.17 202 The south pipe（state land）Fengrun Traffic bureau 220 Total 220

Total（collective 31.60 60.17 Total（state owned 220 Total 220 31.60 60.17 383

Table 2-6: Affected Enterprises

Business House Affected Number of Business Average salary Serial Number Name block Industry Owner Impact degree character character areas Employee degree of per year

Wujin construction Privately Enclosure 1 North Commerce Liuzhenlin Individual 120 11 Commonly 650 material own demolition plant Haohua Privately Plant road 2 decoration north Commerce Luyunliang Individual 72 20 good 1000 own demolition company Fengrun Privately plant road 3 contruction north Commerce Lu sir Individual 105 10 commonly 600 own demolition company Runfeng Zhaozhech Stock Privately enclosure 4 north Commerce 560 70 commonly 700 trade.ltd eng system own demolition

III Socioeconomic Information

A Socioeconomic survey procedure within the affected area, In 1999, a survey was conducted on the objects in the project area and the loss has been estimated along the wastewater pipeline. In Apr., Dec. 2000 and Jan.2001, further socioeconomic survey was conducted. Before surveying, UEPO organized a technical training for the investigation group. Villagers attended the measurement of land. The investigation group conducted a survey on the affected staff and the affected enterprises, and its results will be the gist of the RP (Resettlement Plan). Many of the villagers affected by the project, staff working in the affected enterprises took part in the socioeconomic survey and they agreed to the results.

In June 2001, in terms of the ADB requirement, the APs sample (25%) survey was conducted by project office. Based on the questionnaires, the characteristic and livelihood of APs were understood.

In June 2005, the project office conducted the complementary socioeconomic survey due to transformation of south Wastewater network plan.

B Social Background of Project Area

Tangshan City, lying at the vital communications line linking North China and northeast part of China, is located in the east of North China Plain. The city is bounded on the west by Tianjin City, faces the Bo Sea on the east, lies to the south of Yan Mountain and links up with Qinghuangdao City on the east with Luan River and Qinglong River as boundary line. Its geographical coordinates are E117°31'~119°19', N38°55'~40 °28'.

The city proper of Tangshan City has taken shape and developed based on the exploitation of Kailuan coalfield. Tangshan City, the important energy and raw and semi-finished materials base in China, is the passage leading to Bo Sea for North China. It is also the grain base for the east of Hebei Province and the farming and agricultural sideline production base for North China and the northeast of China. Especially after the earthquake in 1976, economic development of Tangshan City has been accelerated due to highly effective reconstruction and restoration. At present, Tangshan city includes 2 cities, 6 districts, 6 counties and 2 state-owned kolkhozes. The total area is 13,472 km2 with the total population of 7.10 million. The area of city proper is 38.74 million km2 with 2.96 million persons. In 2004, the GDP is about 161 billion Yuan and the total financial income is about 16.06 billion Yuan.

Fengrun District, lie in the north of Tangshan city and is famous for “the birth of heroes brings glory to a place”. It was combined by the original “Fengrun county” and “xin district” in 2002. The total area is about 1334 km2 and 0.88 million persons. It is traditional agricultural district and has 1.18 million mu infields. It is a state grain and peanut production base. At same time, it has more than 10 thousand enterprises which mainly undertake machinery or weaving. In 2003, the GNP of Fengrun district is about 10.6 billion Yuan and the financial income is over 0.57 billion Yuan.

C Sample Survey on Affected Household

In order to understood the characteristic and livelihood of the APs, Tangshan Project office conduct a 25% (26 households and 92 persons) survey within the affected 6 villages. The results are as below:

1. Households Population

There were 26 sample households with 92 persons. In the surveyed population, 89 persons accounting for 96.7% belonged to agricultural population and 3 persons or 3.3% belonged to nonagricultural population, 47 or 51 % were female, 50 (54%) were labors, 14(15%) were students.

2. Ages Structure

Of the surveyed 92 persons in 26 households, 7 persons (8%) were younger than 8 years old, 18 (20%) were 8～18years old, 55 (60%) were 19～60years old, and 12(12%) were elder than 61 years old.

3. Education Distribution

Of the surveyed 92 persons in 26 households, 3 persons (4%) were illiterates, 36 (42%) finished primary school, 46 (54%) finished middle school, and the rest 13 were pre-school children.

4. Households Production

Of the surveyed 26 households, the total contracted lands were 76 mu, in which grain land is 69 mu (91%); the contracted land area per capita is 0.85 mu. In addition, the 20 households raised 12 sheep and oxen.

5. House Condition

Of the surveyed 26 households, the area of homestead was 3952 m2 with 152 m2 per households, and the housing area was 2340 m2 with 90 m2 per household, all of them are single story brick houses.

6. House Income and Expenditure

Of the surveyed 26 households, the total annual household incomes were 404,984 yuan, in which the annual income of planting was 65,504 yuan or 16%, income from enterprises of township or village was 7360yuan or 2%, income from private enterprises was 158,240 yuan or 39%, and income from outside region employment was 159,160yuan or 39%, and other income 14,720 yuan or 4%. The income structure is shown in Table 3-1.

For expenditure, of the surveyed 26 households, the total annual household expenditures were 172,316 yuan. The annual production expenditure was 18,216 yuan, the consumption expenditure was 154,100 yuan, in which the taxes and other charges including agricultural tax, collective reserve and others were 920 yuan (0.5% of the total annual household expenditures), the expense for buying seeds was 2668 yuan (1.5%), pesticide and fertilizer 4692 yuan (2.7%), water supply and electricity fee was 9476 yuan (5.5%), children's tuition was 18584yuan (11%), medical fee was 38732 yuan (22%), fuels 21160 yuan (12.2%), living non-stable food 63480 yuan (36.8%), domestic appliances and furniture 12144yuan (7%). The expenditure structure in shown in Table 3-1.

Table 3-1: The Sampling Householders Income And Expenditure

Items Total(Yuan) Per Capita（Yuan/Pp） Household planting 65504 Income 712 Enterprises of township or village 7360 80 working outside 158240 1720 private enterprises 159160 1730 others 14720 160 Subtotal of income 404984 4364 Household Production expenditure 18216 198 Expenditure taxes and other charges 920 10 seeds 2668 29 pesticide and fertilizer 4692 51 Water and electricity fee 9476 103 Rent of machine 1380 15 Consumption expenditure 154100 1675 children's tuition 18584 202 medical fee 38732 421 fuels 21160 230 non-stable food 63480 690 domestic appliances and furniture 12144 132 subtotal of expenditure 172316 1873 Net income 327857 2491

According to analysis of the survey results, the average per capita income was 4402 yuan. Affected villagers have many opportunities to find a job in Tangshan City because their villages locate near downtown, the sideline and private enterprises developed very well in three villages. From table 3-1, the income for working outside and private enterprises covered about 78% of the total income. However, only 16 percent of income came from planting. The proportion of planting income is relatively small in the total household incomes, this shows that the dependence on the lands of the villagers in the affected villages is low.

D Survey of Public Opinions

On Feb. 2000, Tangshan project office carried out a survey of socioeconomic condition, public opinions and psychology and solicited the opinions from 50 households affected by or benefited from the project (HABP). The result of psychological questionnaires is shown in table 3-2:

• 85% of the sampling households think that the urban wastewater or water deficiency has serious or very serious effect on their work and lives; • 80% of the sampling households were aware of the project; • 87% of the sampling households agreed with the project; • 50% of the sampling households were aware of or partially understood the policies on land acquisition, house demolition, resettlement and compensation; • 90% of the sampling households believe the project is beneficial to the state; • 85% of the sampling households believe the project is beneficial to the collective; • 70% of the sampling households believe the project is beneficial to the individual; • 90% of the sampling households knew they could appeal to the department concerned if their rights were encroached upon.

Table 3-2: Psychology Questionnaire

Sampling Results(%） No. Questions Answers Households (1) (2) (3) (4) (5) Do you know that the project (1) Yes（2）Know a little about it（3）No 50 80 20 D1 construction will begin？ Do you agree with the (1) Yes（2）No（3）Indifference 50 87 3 10 D2 project？ The state（1）Yes（2）No 50 90 10 Who will benefit from the The collective（1）Yes（2）No 50 85 15 D3 project?(Multiple Choices) Individuals（1）Yes（2）No 50 70 30 (1)Economic loss 50 70 85 80 75 70 Which of the potential (2)Deterioration of residential hazards of urban wastewater environment do you know? D4 (3)Do harm to resident health (4)Affect investment environment (5)Smear the images of Tangshan City （1）Have no impact 50 0 10 50 35 To what degree dose the （2〕Not seriously D5 urban wastewater affect your 〔3〕Rather seriously ？ work and life （4）Seriously (1)Improvement of living environment 50 80 50 50 60 Which of the benefit do you (2)Improvement of working environment D6 think you can get from the (3)Provide employment opportunity project? (4)Benefit health of body and mind (1)Have no adverse impact 50 75 15 15 10 0 (2)The project construction may affect traffic condition Which of the adverse impact (3)Economic loss cause by house D7 do you think the project will demolition have on you? (4)Decrease of income caused by land acquisition (5)Other adverse impacts Do you know the policies on （1）Yes 50 25 25 50 urban land acquisition, house D8 （2）Know a little about demolition, resettlement and （3）No compensation? Do you know that you can （1）Yes 50 90 10 appeal to the department D9 （2）No concerned when your rights are encroached upon?

IV Objectives, Policy framework, and Entitlements

A The objectives of resettlement

• Measures of optimizing the arrangement of project and avoiding the high-density population zone and piles demolition zone when possible are taken in order to reduce the involuntary resettlement and minimise the affected area. • All the involuntary resettlement shall be conceived and executed as a part of the project, supply resettlers with compensation and entitlements for losses, and ensure that they are no worse off after the project. • The resettlers l get all the compensation before relocation. • The resettlers get help during the procedure of transferring and will also get the help in the relocation area. • Resettlers be integrated economically and socially into host communities. • The demolition loss of enterprises and shops is reduced as far as possible. If this cannot be avoided compensation loss of production and the relocation of shops and enterprises will be made in order to restore the business as soon as possible. • Improve the household environment, and form the community with good traffic and environment. • Encourage resettlers to participate establishing and implementing the resettlement plan, and also respect the resettlers' will to the full. • The productivity level and living standard of resettlement zone will be raised to a higher level compared to as before.

B Rules and regulations

• Land acquisition, demolition and resettlement of the project are mainly based on the following laws and policies, the details see annex 2 : • Land Administration Law of the P.R.C. (revised and approved in August 29, 1998) • Land Administration Rules of Hebei Province(revised and approved in Sept.24, 1999, at No.11 meeting of the Standing Committee of No.9 Hebei Province People's Congress) • The notice of Tangshan City Land Administration Bureau regarding revising the standard of annual land output value and the compensation standard of crops and ground attachment.(Tangtujianzi(1999)No.7) • Enforcement Regulations of Tax of Cultivated Land Use of Hebei Province • The Notice of Hebei Province Land Administration Bureau Regarding Tightening up the Management of Temporary Land Use • Urban Real Estate Administration Law of the P.R.C. • Enforcement Measures of Urban House Demolition Administration of Hebei Province • Detailed Enforcement Regulations of Urban House Demolition Administration of

Tangshan City • Relevant Provisions in the handbook on resettlement of ADB The concrete regulation and policies is listed in annex 2.

C Resettlement Compensation Rate

Policies on relocation and compensation of the project are made according to relevant involuntary resettlement policies of Asian Bank and the RP of P.R.C., of Government of Hebei Province and of People's government of Tangshan.

1. Permanent Land Compensation

See Table 4-1 for the average annual output value of the land requisitioned for the project for the last three years before such acquisition.

Table 4-1: Annual Output Value of the Requisitioned Cultivated Lands for the Last Three Years Unit Main Average Annual 1998 1999 2000 Average Byproduct Land Price Product Output Value Type kg/Mu kg/Mu kg/Mu kg/Mu yuan/Mu yuan/kg yuan/Mu Yuan/Mu Wheat 352 360 386 366 1.3 476 144 620 Maize 387 383 351 374 1.4 524 156 680 Average Annual Output 1300 Value f (yuan/Mu)

Remarks: The output value of byproduct is 30% of that of main product.

According to Land Administration Law of P.R.C. that was revised on August 29, 1998, the land compensation and for the resettlement subsidy w will be respectively comprised between 4-6 and 6-10 times the AAOV. After negotiation with these affected Village Committees, the standard of land compensation and resettlement subsidy is RMB31200/Mu, which is total of 24 times the AAOV. The tax on the use of cultivated land is RMB6 /m2 amounting to RMB4000 /Mu.

According to the opinions of Hebei Province regarding Implementation of The Notice of Central Committee of the Communist Party of China and State Council regarding further Tightening up the Land Acquisition and Cultivated Land Protection, the relevant expense for the use of cultivated land is as followings:

• Expense of land reclamation is RMB15 /m2 amounting to RMB10000 /Mu. Expense of newly added construction land is RMB12 /m2 amounting to RMB8000 /Mu.

• Management fee is 4% of the cost of requisitioned land. Table 4-2 shows the costs of the requisitioned land.

Table 4-2: Costs of the Requisitioned Land (Unit: yuan/Mu) Newly Land land added Compensatio Young Crop Tax on reclamation Managem construc Assignment Land Type n andCompensatio Cultivated ent Fee Total tion Expense Expense Resettlement n Land Use Expens Subsidy e

Irrigated 31200 1300 8000 4000 20000 10000 2980 77480 Land

The Land Land Land Administra Land The unit Adminis Bureaus of tion Administration The who The Village tration Tangshan Bureaus The villagers Bureaus of goverment of receives Committee Bureau Fengrun Fengrun of County the fee Of County and Fengrun County City

d. Land used temporarily Compensation

Collective land Young crop compensation for the land used temporarily will be paid according to the relevant rules of temporary land use of Tangshan City. One year’s young crop compensation will be paid if the land is used temporarily for a year; One quarter’s young crop compensation will be paid if the land is used temporarily for a quarter.

According to the destroyed degree of the requisitioned land, make up the rehabilitation payment. Generally speaking, the rehabilitation payment is 2 to 3 times of the annual land output value. However, the cost will not exceed 6 times of the annual land output value. Of this project, the annual output value of the irrigated land used temporarily is RMB1300 /Mu; the annual output value of dry land is RMB900 /Mu; the young crops compensation for irrigated land is RMB1300 /Mu, the young crops compensation for dry land is RMB900 /Mu. The land restoration fee is 3 times of the annual output value. The management fee is 4% the sum of young crop compensation and land restoration fee. See table 4-3 for the compensation Standards of temporary land use.

Table 4-3: Compensation Standards of Temporary Land Use (RMB/Mu) Young Crop Land Restoration Type Management Fee Total Compensation Fee

Irrigated Land 1300 3900 208 5408

Dry land 900 2700 144 3744

The unit who receives Rehabilitation Villagers Village committee the fee Institution

State land The south pipeline network system is buried along the road, and the land is

state-owned by Fengrun District Traffic Bureau. By the harmony of the city government, Tangshan Wastewater Treatment Ltd and Fengrun Traffic Bureau have been agreeing with that Tangshan Wastewater Treatment Ltd should pay RMB 1 million to Fengrun Traffic Bureau. The compensation rate for the green crop on state land is 900 yuan/ mu..

e. The Compensation rates of Ground Attachments

The attachments are compensated at market price. The compensation rate is showed in table 4-4. Table 4—4 compensation rate for attachment Item Unit Unit Price Brick-concrete and One –storied House RMB/m2 250 Transferring subsidy and transition fee RMB/ m2 34 10kv pole Pole 3000 Power 380V pole Pole 1000 Transformer Transformer 50000 Telephone Pole 500 Traffic and communication pole Highway m2 180 Water tower m2 10000 Agriculture land and water Exit of rain 10000 conservancy facilities Well Well 800 Big tree Tree 50 Trees Young tree Tree 20 Fruit tree Tree 800 Toilet Toilet 30000 Enclosure m2 40 Vegetable Others attachments 7000 shed Protective m2 20 fence

Temporary Rule of Ground Attachments Compensation of Tangshan City (revised and approved in August 28, 2004)

Article 2: The regulation is applied to the compensation of ground attachments, such as fruit trees、forest、shed、fish、shrimp and so on.

Article 10: The compensation of the trees should be paid to the owners.

Article 11: The compensation standard of trees as follows:

Diameter (meter) Price (yuan) 3-10 10-15 15-20 Above 20

Type of Tree

Common trees 10-20 20-30 30-40 40

Pine and 15-30 30-45 45-60 60 cypress

D Entitlement Matrix

PMO and resettlement implementation organizations did consultation to determine all kind of affected person or unit’s entitlement and reflect the final entitlement choice in the following entitlements matrix. Impact Type AP or PAU Compensation Policies Standards Collective Land Village PAUs get land compensation and relocation Land acquisition Acquisition allowance compensation and The land compensation and relocation allowance Resettlement are used to help the APs restore their income level. subsidy is 31200 VAC allocates land compensation and relocation yuan/Mu allowance to the economic development of village collective or distribute resettlement subsidy to affected households with the permission of two-thirds of the villagers Labor Measures such as providing APs with jobs or technical training courses or shed vegetable fields will be taken to avoid income decrease of APs The remaining land will be adjusted and allocated to each household directly affected by the project so that APs can have cultivated land similar to that of other peasants. APs get investment profit of the land compensation and relocation allowance. Contract APs get young crop compensation Irrigated land 1300 Household yuan/Mu Collective Land Collective, APs get land compensation (Land holding fee, land Irrigated land 3900 for Temporary Group, leveling fee and land restoration fee) yuan/Mu Use Village Cultivation of the land using land compensation Dry land 2700 yuan/Mu Contract APs get young crop compensation Irrigated land 1300 Household yuan/Mu Dry land 900 yuan/Mu State land for Traffic Negotiate with traffic bureau 1 million yuan paid Temporary Use Bureau Non-legal APs get crop compensation based on input costs 900 yuan/Mu farmers

Impact Type AP or PAU Compensation Policies Standards Private Houses Owner The land for reconstruction of new households will Replacement Price in Rural Area be provided in the village. APs will build houses by for Brick-Concrete themselves after getting house compensation in Houses: accordance with replacement price. The project unit 250 yuan/m2 will provide assistance for help vulnerable group in house reconstruction APs get transition fee in transition period 24yuan/m2 APs get move fee 10yuan/m2

Enterprise Owner Compensation for enclosure and plant road Replacement rates demolition for enclosure 40 yuan/m2 Road 10 yuan/m2 Attached Owner APs get full compensation based on market price See tables in Facilities Chapter IV for detail Infrastructure Owner PAUs get full compensation based on market price. See tables in PAUs negotiate with the unit who needs to demolish Chapter IV for detail infrastructures about the solution (relocation or protection) Function recovery of infrastructure

V Resettlement and Rehabilitation Approaches

A RP of the collective land requisitioned

Laoweizhuangzi village and Daanle village are affected by Xin District Wastewater Treatment Plant project. The affected people are 181, including 99 laborers.

50 Mu of cultivated land in Laoweizhuangzi village are requisitioned. It is estimated that the direct economic loss from land acquisition is RMB 25000. In 1999, the total population of the village is 2431. 1088 Mu of cultivated land is contracted by the peasants, accounting for 5.0% of the total cultivated land. This loss is not considered significant and will not have major impacts on livelihood. In 1999, the net income per capita of peasants in the village is RMB 3246 including agricultural income accounting for 60% and non-agricultural income accounting for 40%. 1,560,000 yuan of land compensation and relocation allowance will be paid to this village.

70 Mu of cultivated land in Daanle village are requisitioned. It is estimated that the direct economic loss from land acquisition is 35,000 yuan. In 1999, the total population of the village is 2314. 2350 Mu of cultivated land is contracted by the peasants, accounting for 3.0% of the total cultivated land which is not a significant loss. In 1999, the net income per capita of peasants in the village is RMB 3246 including agricultural income accounting for 65% and non-agricultural income accounting for 35%. RMB 2,184,000 of land compensation and relocation allowance will be paid to this village.

The Village collective will allocate the land compensation and relocation allowance with the permission of two-thirds of the villagers and the approval of the party branch committee and group committee of the two villages. 1. adjust lands. 2. develop the greenhouse. 3. Keep cow-milk. 4. Intensive agriculture.

See the following for the information about feasibility research. From the feasibility research, the annual net income of shed vegetable is RMB 5900 /Mu, and the annual net income of cow milk is RMB 4850 /cow. Considering the risk of market and price (RMB 1000/Mu · year and RMB 1000/cow · year), the amount of income from investment is still more than the direct economic loss of land acquisition.

Program 1. Feasibility Research Of Developing Greenhouse • There will be one shed vegetable for every 0.5Mu land and the shed vegetable will be planted for 4 quarters every year. The main plant items are cucumber, tomato and pearl radish. • The annual output value of shed vegetable is RMB 12,000 /Mu. • The annual lump-sum elementary investment of shed vegetable is RMB 8000 /Mu.

• The annual vegetable seed and rice shoot investment of shed vegetable is RMB 2000 /Mu. • The annual charges for water and electricity is RMB500 /Mu • The annual maintain fee of plastics film is RMB1600 /Mu • The annual invested manpower is RMB1000 /Mu • The annual sales cost is RMB1000 /Mu • The profit is RMB 3800 /Mu in the second year • The profit is RMB 5900 /Mu from the third year

Program 2. Feasibility Research Of Keeping Cow Milk • The cost of bull kept for covering is RMB 7,500 /Mu • Every cow produces 25kg milk every day • The amount of producing milk for every cow is 6750 kg for 270 days of a year • The price of milk is RMB 1.8 /Mu • The annual output value of every cow is RMB 12350 • The annual grass fee, feed fee, charges for water and electricity and other investment of every cow is RMB 5000 • The annual marketing cost is RMB 500 • The annual investment of manpower is RMB 1000 • The profit from every cow is RMB 3800 in the second year • The profit from every cow is RMB 5650 from the third year

B Rehabilitation Plan for Temporary Land Use

The south wastewater pipeline network system is buried along the road, without land acquisition, and the land is state-owned by Fengrun District Traffic Bureau. Although the land has already been acquisitioned by Fengrun Traffic Bureau, the farmers living nearby are farming on it. The project decides to compensate the ground attachments on market price. The project does not result in demolition of structures or relocation of people.

The north wastewater pipeline network system involves 2 counties (district) and 3 villages. The land used temporarily for the project amounts to 91.77 Mu. All are irrigated land. The land will be used by the project about 70 days. The green loss will be compensated at replacement price. Because the compensation is more than the actual loss, there is no effect on the village life. The villages affected and Tangshan Wastewater Treatment Co.,Ltd have already reached a tentative agreement on the restoration of the land affected. The main contents of the agreement include:

• The construction team is responsible for bulldozing the mounds, loosening the soil rammed by construction machinery and leveling off the lands. • Tangshan Wastewater Treatment Co.,Ltd is responsible for paying the cost of cultivating the land again to the villages. Each Village itself is responsible for the water conservancy facilities and soil

improvement.

C resettlement and rehabilitation for enterprises

The construction of pipe network will pass through the enclosures and inner roads of 5 enterprises, this will not affect operation or production. The implementation organization will negotiate with the owner and pay compensation at the replacement rates. The owners are responsible for the reconstruction of infrastructure.

D The Reconstruction of Infrastructure

During the implementation, the present Fengshun Road and Ningguo Road, where motor vehicles are prohibited, are 1085m in length. D1000 concrete pipes are laid in visible grooves in the roads. The road surface is 10cm pitch and 30cm ash dust. The road is owned by Fengrun City-Construction Bureau. Tangshan Wastewater Treatment Ltd and Fengrun City-construction Bureau have been agreed with that the road will be reconstructed after the sewage pipelines construction.

VI Budget for Compensation

All costs incurred in the course of land acquisition, house demolition, restoration of infrastructures, reconstruction of special facilities, and resettlement of relocated people shall be included in the general budget of the project. The total cost of land acquisition, house demolition and resettlement of APs for the Tangshan Wastewater Treatment Project is RMB 12.84million yuan.

A Compensation

f. Basic costs

Basic costs include:

• Land acquisition fee • Temporary land use fee • Residential house demolition compensation fee • Affected rural enterprises compensation fee • Attached facilities compensation fee

‹ Management fee

3 percent of basic cost will be used as management fee of the organizations in charge of the land acquisition, house demolition and resettlement of the project, and it is mainly used for the cost of activities related to the land acquisition, house demolition and AP resettlement of the project such as buying equipment, transportation, having meetings, communication, business trip and handling official business, etc.

‹ Contingencies

10% of basic cost will be used as contingency cost, which includes contingence cost for materials and price.

The contingency cost of materials is prepared to pay the additional costs resulted from the changes in project design and the changes in tangible material indices during the implementation period of the RP.

The contingency cost of price is prepared out of consideration for inflation and changes in price during the implementation period of RP.

The estimation of the contingency cost mentioned above is based on the price in Dec.2000.

‹ Cost of Reconnaissance and Design

2% of basic cost is used as cost of Reconnaissance and design.

‹ Monitoring and Evaluating Costs

1% of basic cost is spent as monitoring and evaluation costs.

‹ Total Costs

See Table 6-1 for the general budget of land acquisition, house demolition and RP of Tangshan Wastewater Treatment Project.

Table 6-1: General Cost of Land Acquisition, House Demolition and AP Relocation of No.2 Wastewater Treatment Plant Project Amount of Money Type Unit Quantity Unit Price (RMB) 1. Land Acquisition

Irrigated land Mu 120 77480 9,297,600.00 2.temporary land use Irrigated land Mu 31.6 5408 170,892.80 Dry land Mu 60.17 3744 225,276.48

State land mu 220 1,000,000.00 4.Enterprise in countryside

The loss of enterprises m2 32,735.00

5.Attached facilities 324,160.00 Green crops 3 900 2700.00 tree 628 30 18,840.00

11,072,204.2 11,072,20 11,072,204.28 Total of basic cost 8 4.28

6.Management Fee Basic Cost*3% 332,166.13 7.Cost of Reconnaissance and Basic Cost*2% 221,444.09 Design

8.Monitoring and Evaluating Cost Basic Cost*1% 110,722.04

9.Contingencies Basic Cost*10% 1,107,136.43

Total 12,843,672.97

B Annual Investment Plan

Annual investment plan is based on the implementation progress of land acquisition, house demolition and AP relocation of the project. See Table 6-2 for the annual investment plan for land acquisition, house demolition and AP resettlement of Tangshan Wastewater Treatment Project.

Table 6-2: Annual Investment Plan for Land Acquisition, House Demolition and AP Resettlement of Tangshan Wastewater Treatment Project. Unit: ×104 RMB Year 2005 2006 Total Cost 770.57 513.71 1284.28 Percentage（%） 60 40 100

C Fund Flow

Tangshan Wastewater Treatment Co. Ltd and Land Administration Bureau of relevant counties and districts will sign the compensation agreement on permanent land acquisition for the Wastewater Treatment Plant Project. In addition, the compensation agreements on house demolition and relocation are to be signed by House Demolition Office of Tangshan City and Tangshan Wastewater Treatment Ltd. The temporary land use contracts are to be signed by the villages concerned and Tangshan Wastewater Treatment Ltd. In the stated time announced by Land Administration Bureau of Tangshan City for demolition and relocation. The written agreements on land acquisition, house demolition, AP relocation and relevant compensations will be signed on the basis of the compensation policies and standards of the project for land acquisition, house demolition and resettlement of those resettlers by the Land Administration Bureau of the relevant counties and districts, the villages whose land will be requisitioned and the APs whose houses are to be demolished. Permanent Acquisition of Collective Land Land Administration Bureau of Fengrun County will sign the compensation agreement on permanent land acquisition with Tangshan Wastewater Treatment Ltd., and Tangshan Wastewater Treatment Ltd. will pay the cost of land acquisition in accordance with the agreements (with the approval of Land Administration Bureau of Fengrun County). Land Administration Bureau of relevant counties will sign the permanent land acquisition contracts with the villages concerned and pay them the land acquisition cost in accordance with the contracts. After getting land compensation, relocation allowance and young crop compensation, the villages will transfer the land requisitioned. The tax on cultivated land use, cost of farmland exploitation and management fee will be paid to the department concerned by Project Office of Tangshan City, while the compensation for attached facilities and young crop will be paid to land contractors or property owners directly. Temporary Land Use Collective land

Tangshan Wastewater Treatment Ltd. will sign the temporary land use contracts for the quantity of land use, construction period and compensation cost (land use fee, young crop compensation, and land leveling fee and restoration fee) with the relevant villages, separately. The company will pay temporary land use cost in accordance with the contracts. State land (south wastewater network part) By the harmony of the city government, Tangshan Wastewater Treatment Ltd and Fengrun Traffic Bureau have been agreeing with that Tangshan Wastewater Treatment Ltd should pay RMB 1 million to Fengrun Traffic Bureau. Tangshan Wastewater Treatment Ltd will pay the money according to the contract. Infrastructure The company will negotiate with the owners of infrastructure about the plan for infrastructure restoration and determine the cost of infrastructure reconstruction and restoration, separately. The company will pay the cost of infrastructure reconstruction and restoration to its owners on the basis of infrastructure restoration progress. The owners are responsible for the reconstruction and restoration of infrastructure demolished. For the south Wastewater network part, Tangshan Wastewater Treatment Ltd and Fengrun City-construction Bureau have agreed that Tangshan Wastewater Treatment Ltd pays 100000 Yuan to construction unit and the latter is in charge of reconstructing the affected roads and other infrastructures after the sewage pipelines construction. Ground Attachments 31. Tangshan Wastewater Treatment Ltd will pay the money to the farmers directly.

VII Implementation Schedule of Resettlement Activities

A Resettlement dovetail the progress of project construction

According to the project schedule, Tangshan Wastewater Treatment Project was started in June 2005and will be completed in Dec. 2006. The schedule for land acquisition, house demolition and AP relocation will be integrated with the project construction schedule.

The basic principles of making the project construction dovetail the progress of land acquisition, house demolition and AP relocation are as followings:

• To fix the schedule for land use of the project in accordance with the date of pipeline construction and of plant construction. • When land acquisition and house demolition will begin is determined on the basis of the work of land acquisition, house demolition and AP relocation, while it will be completed one month before the start of the project. • To reserve enough time for land acquisition, house demolition and AP relocation before the start of project.

See Table 7-1 for joint schedule for the project construction and land acquisition and house demolition.

Table 7-1 Joint Schedule for the Project Construction and Land Acquisition and House Demolition

Date of Construction Date of land acquisition Name of Project Begin Finish Begin Finish WWTP 2002.6 2006.12 2005.6 2006.12

The scope of land acquisition and house demolition of the project will be determined according to the design drawing of each engineering item before the inventory survey made for the land acquisition and house demolition.

Before the contracts for compensation and relocation are signed, the measurement and calculation of the tangible materials affected by land acquisition and house demolition will be carried out in accordance with the line drawings for land acquisition and house demolition by both the owners of title and the organizations in charge of the implementation of the land acquisition and house demolition of the project.

Before the contracts for compensation and relocation are signed, the organizations in charge of the implementation of the land acquisition and house demolition of the project will hold mobilization meetings to announce the policies and methods of land acquisition, house demolition, relocation and compensation and promulgate the formal announcement of land requisition and house demolition. Attendees at the meetings include the AP households and the unit affected.

After the measurement and calculation of tangible materials affected by land acquisition and house demolition and the promulgation of the formal announcement of land requisition and house demolition, the contracts for compensation and relocation will be signed by the unit or person whose land or house are affected and the unit or person who needs to requisition land and demolishing houses.

Transition fee will be paid to the APs during the transition period, and it will be paid before the relocation commences.

Infrastructure reconstruction will be carried out first, and it will be necessary to build new infrastructure in advance and then demolish the old ones.

To settle the accounts of compensation cost and deal with the compensation after the relevant contracts are signed and before the move begins.

VIII Organizations

A Organizational Framework

During the implementation of the project, organizations responsible for resettlement planning, management, implementation and monitoring include:

• Urban Environment Project Office of Hebei Province (UEPOHP) • Urban Environment Project Office of Tangshan City (UEPO) • Tangshan Wastewater Treatment Ltd. (STL) • Urban Planning Bureau of Tangshan City (UPB) • Land Administration Bureau of Tangshan City(LAB) • Land Administration Bureau of Xin District of Tangshan City • Land Administration Bureau of Fengrun County of Tangshan City • House Demolition Office of Tangshan City (HDO) • Shanghai Research Institute for Municipal Engineering Design (SRIMED) • National Research Center of Resettlement (NRCR) • Town and Township Government concerned (TTG) • Village Administration Committee concerned (VAC)

The main responsibilities of these organizations are as followings:

• UEPO is responsible for the leading, organizing, coordinating, examining and supervising the land acquisition, house demolition and resettlement activities of the project. • STL are responsible for working out and implementing the RP. • Land Administration Bureau of relevant county or district is in charge of acquiring collective land in rural area and the allocation of foundation area and location of new houses. • Land Administration Bureau of Tangshan City is in charge of the supervision and arbitration of land acquisition. • House Demolition Office of Tangshan City is responsible for house demolition. • Shanghai Research Institute for Municipal Engineering Design is responsible for the design work of the project. • NRCR is responsible for the resettlement monitoring. • Town and Township Government concerned and VAC concerned are responsible for the implementation of resettlement in their scope of control.

B Responsibilities

Urban Environment Project Office of Tangshan City The responsibilities of UEPO are:

• Work out and implement the relevant polices of the RP; • Organize and coordinate the compilation of RP; • Allocate project funds and supervise the utilization of fund; • Direct, Coordinate and supervise the implementation of RP; • Supervise internal monitoring of the project, chose external independent monitoring organization and cooperate with and coordinate the external monitoring activities; • Examine the monitoring report; • Prepare the progress report and submit it to Urban Environment Project Office of Hebei Province; • Coordinate and solve the conflicts and problems incurred during the implementation of RP.

Tangshan Wastewater Treatment Ltd. (STL). The responsibilities are:

• Entrust design division with the task of define the scope of the area affected by the project; • Arrange for and conduct socioeconomic survey; • Apply to UPB and LAB for the planning permission and construction permission for land use; • Manage the demolition of urban infrastructure; • Ensure and coordinate the implementation of the RP in accordance with the schedule of project construction; • Allocate resettlement funds in accordance with the relevant agreements and contracts; • Organize and implement the internal monitoring.

Land Administration Bureau of Tangshan City (Organization for Management and Supervision) 44. The responsibilities of LAB are:

• Execute and implement the relevant state policies, laws and regulations regarding the management of land used for project construction; • Participate in the examination and investigation of the compensation standard and the resettlement plan for land acquisition of the project; • Go through formalities for examination and approval of land acquisition of the project; • Participate in the socioeconomic survey; • Participate in the compilation and examination of RP;

• Grant the construction license for land use; • Direct, coordinate and supervise the implementation of RP; • Coordinate and solve the conflicts and problems incurred during the land acquisition and allocation of the project.

Land Administration Bureau of Relevant Counties and Districts (LABRCD, Implementation Organization)

The responsibilities of them are:

• Register and announce the tangible material indices of land acquisition; • Organize public participation; • Negotiate with the villages whose land are to be requisitioned about the RP and compiled the RP with them, announce the RP after it is fixed; • Implement RP; • Go through formalities for land acquisition.

House Demolition Office of Tangshan City (Implementation Organization) The responsibilities of it are:

• Examine, verify, approve and announce the plan for the demolition, resettlement and compensation of the unit (person) whom needs to demolish houses; • Grant the house demolition license and promulgate the demolition announcement; • Organize, coordinate and supervise the house demolition activities; • Establish and manage the files of house demolition; • Information management of land acquisition, demolition and resettlement activities; • Staff training; • Report the state of land acquisition and resettlement to UEPO; • Coordinate and solve the conflicts and problems incurred during the implementation of RP; • Mediate and arbitrate disputes incurred in the house demolition.

Urban Planning Bureau of Tangshan City (Organization for Management and Supervision) The responsibilities of UPB are:

Examine and approve the red line for land acquisition and land holding; • Grant the planning license for land use.

Town and Township Government

The responsibilities of them are:

Participate in socioeconomic survey; • Participate in working out and compiling RP and resettlement scheme; • Investigate and supervise the resettlement and rehabilitation of VAC and APs; • Report the suggestions and opinions to higher authorities. • Village Administration Committee (VAC) • The responsibilities of VAC are: • Participate in conducting socioeconomic survey and working out resettlement scheme; • Participate in working out and compiling RP; • Organize public consultation and propagate the policies of land acquisition and demolition; • Adjust and allocate the land left in the village after land acquisition; • Arrange for APs to carry out production development and income restoration activities after land acquisition; • Transfer opinions and suggestions of APs to the higher authorities concerned; • Provide vulnerable group for restoration with special assistance.

National Research Center of Resettlement (NRCR, Organization for Independent Monitoring and Evaluation)

As an organization for independent monitoring and evaluation, it is proposed that NRCR be responsible for observing and monitoring the RP and its implementation and submit reports on independent monitoring and evaluation of resettlement to the Asian Development Bank. Its responsibilities will be explained in detail in Chapter 10.

C Staffing

The staffing of each major resettlement institution involved in the project is shown in Table 8-1. The resettlement organizations involved in the project are well-staffed, and the average number of working staff is 70 and the total number of staff is 129. Most of the staff have an above average education degree and well trained in their specialties. The information path among the organizations is unimpeded. Thus can ensure a good performance in the implementation of RP.

Table 8-1: Staffing of the Resettlement Organizations involved in the Project Average Total Date of Resettlement Institutions Number of Number Start of Remarks Staff of Staff Operation UEPO 6 13 From 99.12 The organizations in charge of management STL 2 3 From 2002.5 and implementation of land acquisition, house From demolition and LAB 3 3 2002.12 resettlement of the project are From UPB 3 3 well-equipped with 2002.12 transportation and communication system; Land Administration Bureau Of From 8 8 Relevant County and District 2002.12 The organizations in charge of survey and House Demolition Office of Tangshan From 3 5 design and monitoring City 2002.12 and evaluation of the From project have high Town and Township Government 7 14 2002.12 technical level and efficient computers; From VAC 30 64 The organizations in 2002.12 charge of implementing and monitoring of RP of

the project have rich NRCR(independent monitoring and experience in their own 4 12 From 2005.6 evaluation agency) fields.

Total 66 125

D Organization Chart

See Figure 8-1 for organization chart.

UEPOHP

UEPO

NRCR SRIMED STL

UPB LAB HDO Owners of infrastructure

LABOC Household whose house is to be demolished

TTG

VAC

AP Household

Figure 8-1: Organization Chart

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E Measures to Strengthen Organizational Capacity

UEPO and STL have prepared to arrange for regular working staff to attend a Resettlement and Rehabilitation Workshop for Projects Funded by the ADB held by NRCR so that they are familiar with the resettlement policies of the ADB.

Funds and equipment are fully guaranteed. UEPO is prepared to buy 2 computers. Set up Resettlement Information Management System, carry out data management of land acquisition, house demolition and AP relocation using computers, and ensure an interrupted information delivery system.

Strengthen the reporting system and internal monitoring and solve the problems incurred without delay.

Independent monitoring and evaluation will be reinforced. The Organization in charge of Independent monitoring and evaluation will report the existing problems to the department concerned without delay and suggest solutions.

F Working Routine of Land Acquisition, House Demolition and Resettlement Implementation

Define the Scope of Land Acquisition and House Demolition. According to the drawings and design, implementation organizations arrange for working staff to investigate and register the number of households, the total population and the state of house property within the project scope.

Survey of Tangible Material Indices of Land Acquisition and House Demolition. HDO and LABOC arrange for working staffs to make a on-the-spot survey of the land, house and attached buildings, facilities and equipment of the villages whose land are to be requisitioned and the AP household whose houses are to be demolished and register them in detail. As for the survey of infrastructure on and under the ground, HDO and LABOC first confirm the nature and the ownership of the infrastructure within red line scope, then explain the condition of land acquisition and house demolition of the project to the each infrastructure owner and management unit, and submit the plain design drawing to the units concerned. Moreover, the unit concerned will report the

29

relevant materials of infrastructure to STL within 18 days after receiving the plain design drawing.

To work out the plan for land acquisition, house demolition and AP resettlement and make a budget estimate for it. According to the survey of land acquisition and house demolition, HDO and LABOC organize the compilation of RP and budget making in accordance with the relevant policies and regulations regarding land acquisition and house demolition and submit the RP and the budget estimate for examination and approval.

Examination and Approval of the RP.

HDO and LABOC deliver the advice notice of land acquisition to the unit whose land will be requisitioned and promulgate the announcement of land acquisition and house demolition.

Applying for Felling Trees. STL investigate and calculate the number of the tress that need to be felled and apply to Forestry Bureau of Tangshan City, Garden Bureau and Afforestation Office for approval of felling trees. After the application is approved, Afforestation Office is in charge of organizing felling trees and paying compensation in accordance with the number of felled trees.

Signing the contracts for land acquisition, house demolition and AP relocation. According to the RP and the resettlement policies and regulations, HDO and LABOC negotiate with the villages whose land will be requisitioned and persons whose houses will be demolished about the land acquisition, house demolition, AP resettlement and compensation standards, separately. The contracts for land acquisition, house demolition and AP relocation are signed immediately when the agreement is reached. The contracts are signed by the signed and sealed by the house-demolished people, HDO and LABOC.

Demolition, reconstruction and restoration of infrastructure. Under the supervision of UEPO, STL pays the compensation for the infrastructure to be demolished in the project area to the owner, and the owners of the infrastructure

30

arrange for construction teams to carry out the demolition, reconstruction and restoration.

Write working summary and keeping it in the archives. When the work of land acquisition and house demolition is completed, accounts are settled. The sponsor institute writes working summary and keeps it in the archives after examination and approval.

31

IX Consultation, Participation and Grievance Redress

A Consultation and Participation

66. In order to formulate relevant policies, work out and compile the RP, and carry out the RP efficiently, guarantee the legal advantage of APs, alleviate the grievances and conflicts and resettle the APs properly, special attention will be paid to participation and consultation of the APs in the project. During the formulation of resettlement policies, compilation and implementation of the RP, the opinions of APs are heard widely.

When feasibility study was carried out during the project preparing phase, UEPO solicited opinions of Tangshan City Government, Government of relevant districts, the People’s Congress of Tangshan City, the Political Consultative Conference, mass organizations, and the villages affected on pipeline laying sites, locations of wastewater treatment plant and water purification plant, land acquisition, house demolition and resettlement for many times.

In November 1999, UEPO arranged for the units concerned such as STL to make a tentative survey of land use condition and socioeconomic condition in the land acquisition and demolition area of the project, and suggestions about the project scheme, land acquisition, house demolition and AP relocation were raised. All the opinions and suggestions have been considered in the project design and compilation of the RP.

On Dec.2000, UEPO sponsored a meeting in Tangshan Urban Construction Bureau and discussed with the infrastructure owners the project affected. Attendants at the meeting include infrastructure owners such as:

In May 2005, UEPO arranged for the units concerned such as STL to make a tentative survey of land use condition and socioeconomic condition in the land acquisition and demolition area of the network project, and suggestions about the project scheme, land acquisition, house demolition and AP relocation were raised. All the opinions and suggestions have been considered in the project design and compilation of the RP.

On June.2005, UEPO sponsored a meeting in Tangshan Urban Construction Bureau and discussed with the infrastructure owners the project affected. Attendants at the meeting include infrastructure owners such as: • Fengrun City-construction Bureau; • Fengrun Traffic Bureau; • Village Committee

UEPO introduced the project condition and the scope involved, solicited opinions of

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house-demolished units on pipeline laying, infrastructure demolition and compensation. After the meeting, infrastructure owners arranged for personnel to look up archives and material concerned or to make on-the-spot survey, and provided their infrastructure sorts and quantity within the demolition scope and worked out the scheme of restoration and reconstruction. All suggestions have been adopted in the RP.

Holding the negotiation meetings. To organize representatives of APs, village cadres and woman representatives to participate in discussion meetings, introduce the resettlement condition to the attendants and further hear their opinions and suggestions.

Holding mass meetings. The mass meetings are held before the implementation of RP in order to explain the relevant policies, regulations, compensation standards, and the resettlement scheme and so on in detail. Thus, the APs can make early preparations for the resettlement.

To propagate the policies on land acquisition and house demolition of the project via mass media.

Table 9-1: the Public Consultation of the Affected People Purpose Content Participation When Where The surveyed impact The outline and UEPO, affected Tangshan on socioeconomic project impact of households(10) City condition (26 socioeconomic and shops, staff in 2005.5 households) survey for RP the affected enterprises Elementary Compensation and UEPO and The consultation on location policy and demolition location of compensation policy elementary location office(many UEPO, for RP program times) ; STL,FDTB, UEPO and house 2005.5 FDCCB administration and bureau and LAB; affected people UEPO and affected people Additional Individual problem UEPO and The consultation of in the policy and the affected people location of individual problem program of the UEPO, for RP Resettlement 2005.6 STL,FDTB, FDCCB and affected people

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Table 9-2: information Disclosure of Tangshan Wastewater Treatment Project The way and the used Files language to make the When Where files to public Description of the Chinese, Tangshan TV 2005．6 Fengrun District, project Tangshan City Brief description of Chinese, Tangshan TV 2005．6 Fengrun District, the information of Tangshan City the requisitioned land The final notice of Chinese, putting up the After the owner making RP to public notice to the village examination committee and approval of ADB The report of RP Chinese, English, UEPO After the owner examination and approval of ADB

B Grievances and Appeals

Special attention will be paid to the APs and the house-demolished units (HDU) participation throughout the process of compilation and implementation of RP. To ensure that the APs and the PAUs have channels for redressing their grievances, transparent and efficient grievance redress procedures have been established for the project to avoid serious grievance problems. The grievance redress procedures include the following four stages:

• Stage I. If APs or HDUs are not satisfied with the RP or implementation of RP, they can appeal to Villages committee, township government orally or in writing. In case of an oral compliant, the two institutions are required to document the specific grievance on paper, keep it in the archives and settle the grievance within two weeks.

• Stage II. If the APs and HDUs are not satisfied with the solution of Stage I, they can then appeal to after receiving the judgement notice of Stage I. shall make a decision on the complaint within two weeks.

• Stage III. If the APs and HBUs are still dissatisfied with the settlement, they can appeal to HDO or LAB (The institution in charge of supervision and arbitration of land acquisition and house demolition) after receiving the decision made by UEPO and submit the dispute for arbitration. LAB or HDO the arbitration organization will make arbitration on the complaint within 3 weeks.

• Stage IV. If the APs or HDUs are still dissatisfied with the arbitration, they can

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appeal to the Peoples Court in accordance with the Administration Procedure Law of PRC after receiving the decision of the arbitration organization. APs or HDUs can make an appeal on any issue of the resettlement plan, including compensation criteria. The APs will be informed of the grievance redress procedures mentioned above through meetings and other ways to ensure that they are clear about their rights of grievance and appeals and can protect their own rights.

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X Monitoring

According to Handbook on Resettlement of the Asian Development Bank, implementation of land acquisition, house demolition and resettlement activities will be monitored regularly to ensure those actions have proceeded in accordance with the provisions of the RP. There are two kinds of monitoring mechanisms in this RP, the internal monitoring and the independent monitoring that is carried out by an external institution.

Internal Monitoring is carried out by UEPOHP, UEPO, STL, HDO and LAB to ensure that all the units follow the schedule and comply with the principles of the RP. The purpose of the internal monitoring is to make the resettlement organizations fulfill their duties efficiently during the implementation of the RP.

Independent Monitoring Organization is responsible for making independent monitoring and evaluation on the activities of land acquisition, house demolition and resettlement regularly. NRCR, as the independent monitoring organization (IMO), undertakes the independent monitoring of the project. The independent monitoring covers the issues following:

• Operation efficiency of the resettlement network; • Compensation and implementation process of land acquisition and land use temporary; • reestablishment of the APs and the units affected by the project (PAUs);

Channels for redressing APs grievances. The independent monitoring is to entrust an organization independent of UEPO with the monitoring and evaluation on the implementation of resettlement and economic rehabilitation from an overall and long-term point of view. IMO follows the resettlement activities of the project closely to evaluate whether the goals of resettlement are achieved. The evaluation criteria include:

• To follow national laws and regulations relevant to land acquisition, house demolition and AP resettlement; • To comply with the principles of the handbook on resettlement of the Asian Development Bank; • To help the APs to improve their living standards or at least to restore former one. • To monitor the treatment of APs grievances

The IMO will provide UEPO suggestions about the implementation of RP so as the

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problems incurred during the implementation of RP can be resolved without delay.

Internal Monitoring and Supervision. HDO and LABOC have developed an internal monitoring system to supervise the resettlement activities. They establish relevant database on land acquisition, house demolition and resettlement and use it to compile the RP, monitor the APs and PAUs and carry out the internal investigation and supervision of the whole course of resettlement preparation and implementation. Internal Monitoring report and statistical table will submit to the ADB every 6 month. 2005.12 , submit 1st Internal Monitoring and Supervision report 2006.6, submit 2nd Internal Monitoring and Supervision report 2006.12, submit 3rd Internal Monitoring and Supervision report.

Implementation Procedure

During the implementation of RP, HDO and LABOC collect and file information on APs and PAUs according to the samples provided by monitoring organizations. At the same time, they will report and record current activities in a timely manner to UEPO and UEPOHP so as to ensure a continuous monitoring on implementation. UEPO will conduct regular inspection on the implementation of RP and report it to higher authorities concerned.

In the internal monitoring system mentioned above, the information table with unified form will be fixed in order to realize the continuous information flow from LABOC and HDO to UEPOHP. UEPOHP, UEPO, STL, HDO and LABOC, the important members of internal monitoring system, will carry out regular inspection and verification.

The Tasks of Monitoring

• Payment of compensation to APs and PAUs • House reconstruction and relocation • Reconstruction and Rehabilitation of infrastructure • The schedule of the activities mentioned above • Conformity with the policy and regulation of RP • Community Participation and consultation during the implementation of RP • Staffing, training, working schedule and operation effectiveness of the resettlement institutions

Independent Monitoring

The IMO carries out its monitoring work on the basis of the census data compiled by the survey and design institute and materials utilized by the resettlement organizations.

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The Independent Monitoring Organization (IMO)

UEPO invited NRCR as the IMO of the project. NRCR is the first national research institution of project resettlement in China, and it is also the only one in cooperation with EDI in training of resettlement personnel in China. It has rich experience in resettlement policies, planning, design, implementation, monitoring, evaluation, management, etc. Moreover, NRCR has undertaken independence monitoring and evaluation of projects funded by the Asian Development Bank more than 10 times. The monitoring and evaluation (M&E) group of NRCR consists of 12 members experienced in sociology and engineering resettlement including professors, lecturers, Ph. Ds and masters. See Annex for the outline of independent monitoring and evaluation. Responsibilities

NRCR will trace, monitor and evaluate the implementation of RP. In addition, as an independent consultant, it will provide advice and suggestions.

NRCR will make an on-the-spot survey of the sites where the land will be requisitioned or the houses will be demolished for the project in apr.2000 and provide technical consultation and guidance for supplementary socioeconomic survey and RP compilation. Besides, it will carry out following activities.

Baseline Survey

NRCR will carry out baseline survey of the APs and PAUs and collect basic materials of living standards of AP households and production level of PAUs. Survey on production and living standards will be made twice a year thereafter to measure the changes in the living standards of APs. Various methods such as sampling survey, tracking typical sampling households (sampling households are determined using random sampling method), random visit and in-site observation are used to collect necessary materials. Finally, NRCR analyzes those collected materials and gives an evaluation.

Sampling sizes of different groups of APs are 50% of AP households for house demolition, 10% of AP households for land acquisition and resettlement, 15% of AP households for temporary land use (The monitoring of this section focuses on the land recovery and income level recovery).

Regular Monitoring and Evaluation

During the implementation of RP, IMO will conduct regular monitoring on project resettlement once a year. By in-situ observation, tracking typical sampling households and random visit to AP households, IMO will monitor the following activities:

• Payment of Compensation and the sum of compensation

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• Construction and allocation of the resettlement houses • Rehabilitation and production recovery of APs and PAUs • Reconstruction and restoration of infrastructure • APs' moving • Training • Rehabilitation of vulnerable group • Demolition of Original house • Cultivation of land used temporarily by the project • Production and living standards of APs • The schedule of the activities mentioned above • Social psychology of APs • Resettlement grievances and redress • Organizations of resettlement and rehabilitation system

Public Consultation

IMO will attend the public hearing and consultation meetings during the compilation and implementation of RP. Through participation in these meetings IMO evaluates the effectiveness of the community participation.

Grievance Redress

In order to evaluate the grievance redress system of the implementation organizations, IMO will monitor the APs' grievance and complaints by visiting the APs regularly, checking the grievance files kept by the HDO and other implementation organizations responsible for receiving the complaints and interviewing the APs who raised the complaint. As for these grievance issues, IMO will make suggestions about improving the grievance redress system to make it more effective.

Monitoring and Evaluation Procedure

• To compile the outline of independent monitoring and evaluation • To develop information system of resettlement monitoring and evaluation • To prepare and compile survey outline, questionnaire and record card of sampling AP households • To work out plan for sampling survey • To carry out baseline survey • To establish monitoring and evaluation information system • To conduct monitoring and survey o To conduct local socioeconomic survey o To monitor resettlement implementation organizations o To monitor sampling AP households o To survey the cultivation of land used temporarily by the project • To arrange monitoring data and establish the relevant database

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• To conduct comparative analysis • To produce a monitoring and evaluation report annually

Report

Internal Report

Responsibilities and Frequency of Report

From the beginning of the implementation of the RP, HDO and LABOC will submit progress reports to UEPO after the completion of land acquisition and house demolition of each stage, while UEPO will submit progress report to UEPOHP. Summary reports will be produced after the completion of land acquisition and house demolition.

Format

The statistic reports of resettlement progress will be compiled in accordance with the requirements of the Asian Development Bank and be submitted by LABOC and HDO every 6 months). In accordance with the requirement of the Asian Development Bank, the report will contain two parts. The first half is the literal part which focus on the progress of land acquisition, house demolition, resettlement, compensation fund availability, and so on. The problems and difficulties encountered during the implementation of RP and the solution to them are also included in it. The second half contains the forms which summarize the statistical data of earlier stage and show the results of comparative analysis for the planning quantity and the actual quantity of land acquisition, house demotion, compensation fund availability, etc.

Report Responsibilities of Project Offices

Report Frequency

HDO and LABRCD will submit the internal monitoring report on land acquisition and resettlement progress to UEPO twice a year. UEPO will then summarize the monitoring report and submit the resettlement progress and monitoring results to UEPOHP in an environmental report. UEPOHP will submit the progress report of the first half of the year to the Asian Development Bank at the end of July every year, and it will submit the annual progress report of the land acquisition, house demolition and relocation of the last year to the Asian Development Bank at the end of January every year. Report Contents

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o Progress of land acquisition, house demolition and resettlement o Compensation rates, and payment of compensations o House reconstruction o Resettlement and production recovery of APs and PAUs and infrastructure reconstruction and restoration o Staff training

Report Format

In accordance with the requirement of the Asian Development Bank the report will contain two parts. The first half is the literal illustration which focus on the progress of land acquisition, house demolition, resettlement, compensation fund availability, and so on. The problems and difficulties encountered during the implementation of RP and the recommendations also included. The second half contains the forms which summarize the statistical data of earlier stage and show the results of comparative analysis for the planning quantity and the actual quantity of land acquisition, house demolition, compensation fund availability, etc.

Report Responsibilities of Independent Monitoring Organization

Report Frequency

According to the Asian Development Bank’s guidelines, the IMO will carry out independent monitoring and evaluation on the resettlement twice a year and submit the monitoring and evaluation report to the Asian Development Bank through UEPO. From the beginning of resettlement implementation, monitoring and evaluation survey will be carried out in every July and November, and corresponding reports will be submitted on August 31 and January 31 every year. The work of land acquisition, house demolition and resettlement of the project will be completed in Jul 2004, so the independent monitoring and evaluation on resettlement of the project will be conducted 5 times. They are: o Baseline survey in May 2002 o Monitoring and evaluation in December 2004 o Monitoring and evaluation twice a year in 2005 and 2006

Report Contents o Resettlement base-line survey o Implementation progress of land acquisition, house demolition and resettlement o Fund availability and utilization

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o House demolition, relocation and production recovery of APs o Infrastructures demolition, reconstruction and restoration o Living and production standards of APs o Evaluation on the operation and efficiency of resettlement agencies o AP Psychology survey o Existing problems and suggestions

Report Format

The independent monitoring report adopts 3 formats: literal illustration, forms, and pictures.

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Annex 1: The General Outline of the Independent Monitoring and Evaluation

Introduction to the Project

Hebei Luan River Drainage Area Wastewater Treatment Project consists of four sub-projects, namely Wastewater Treatment Project of Tangshan City, Wastewater Treatment Project of Zhangjiagang City, Wastewater Treatment Project of Chengde City and Wastewater Treatment Project of Baoding City. Wastewater Treatment Project of Tangshan City includes two parts:

(1) Extension of Xin District Wastewater Treatment Plant. The designed treatment capacity of Xin District Wastewater Treatment Plant is 33,000m3 /d, and the designing capacity is 80,000 m3 /d. The extension plant, which is surrounded by agricultural lands. The extension plant covers 120 Mu of land space, lying on the southwest of the old wastewater treatment plant.

(2) Wastewater pipe network system is divided into two parts by the railway in Xin District, Tangshan. The length of north wastewater pipeline is 12.72km, through which wastewater flows into the wastewater treatment plant, along the major-pipe in Xincheng Road and Hongqi Road, also along the part-pipe in Huanxiang River. The south wastewater pipeline is 7.5km, through which wastewater gathered by south major pipeline flows into wastewater treatment plant.

This project is to start in June 2005, to be completed in the end of 2006, and formally to go into operation in the start 2007.

Objectives of Independent Monitoring and Evaluation on Resettlement

In accordance with the ADB Guidelines and Policy on Resettlement, it is proposed that NRCR undertakes the independent monitoring and evaluation on the resettlement of Urban Environment Project of Tangshan City. NRCR will survey funds available and project management and progress of land acquisition, house demolition and resettlement, conduct comparative analysis and evaluation on changes in production, business and living condition of PAUs and APs before and after relocation. This will be followed byan evaluation of the progress of land acquisition, house demolition, relocation and rehabilitation. It will submit regular monitoring and evaluation report (once a year) to the Asian Develop Bank, UEPO and the relevant departments in charge of the project. At the same time, it will also provide information and suggestions for the departments concerned making decisions. From these reports, the Asian

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Develop Bank and the departments in charge of the project can get a full understanding of whether the work of land acquisition, house demolition and resettlement achieve the desired results on time. These reports can also help to identify the crux of the problems and make suggestions about how to improve the resettlement work.

The Contents of Independent Monitoring and Evaluation

Independent Monitoring and Evaluation on Implementation Progress of Land Acquisition and House Demolition o The implementation progress of land acquisition includes o The progress of land acquisition; o The progress of the new sites for house relocation; o The demolition progress of house and attached facilities; o The progress of relocation house construction; o The progress of relocating and rehabilitation of AP; o The progress of the relocation and reconstruction of infrastructure.

Independent Monitoring and Evaluation on Resettlement Fund Availability and Utilization

Resettlement fund availability and utilization include: o Funds allocation and availability; o Funds utilization (planning and actual). o Independent Monitoring and Evaluation on Houses Demolition and Reconstruction o House demolition and reconstruction include: o Housing condition and living environment before relocation; o Objectives of houses demolition and reconstruction; o Housing condition and living environment after relocation;

The comparative analysis and evaluation on housing condition and living environment before and after relocation.

Independent Monitoring and Evaluation on Land Adjustment and Living Standards of the APs in Land-requisitioned Villages

It includes: o Cultivated land and living standards of APs before relocation; o Cultivated land and living standards of APs after relocation;

The comparative analysis and evaluation on cultivated land and living

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standards of APs before and after relocation.

Independent Monitoring and Evaluation on Operation and Efficiency of Resettlement Implementation Organization

Organization and Division of Labor of Resettlement Monitoring and Evaluation

The National Research Center of Resettlement (NRCR) is entrusted by UEPO to be in charge of the surveys, data collection and analysis work of the independent monitoring and evaluation, while UEPO is responsible for the examination of the its results.

NRCR sets up the Resettlement Monitoring and Evaluation Group of Urban Environment and Water Supply Project of Tangshan City (M&E group). The tasks of the group include: o Guided by the project manager of the Asian Development Bank, M&E group will carry out resettlement monitoring and evaluation of the project; o Compilation of the outline of resettlement monitoring and evaluation; o Monitoring site selection; o Outwork such as on-the-spot survey and monitoring and indoor work such as data processing and data analysis; o Compilation of resettlement monitoring and evaluation reports.

(3) UEPO provides the required personnel, transport equipment and other facilities for the M&E when on-the-spot survey and monitoring work are conducted.

The Method of Resettlement Monitoring and Evaluation

The method of monitoring and evaluation is a combination of field visit, data collection and calculation, comparative analysis, and expert evaluation.

In the monitoring and evaluation process, both overall surveys and sampling surveys are conducted. Overall surveys are for collecting data of the progress of resettlement implementation, funds, organizations and management, etc. At the same time, sampling surveys of house demolition and reconstruction and living standards of APs are made.

Sampling survey adopts various methods such as typical sampling and random sampling to make a tracing survey of the sampling households, shops and enterprises. Sampling sizes of different groups of APs are 50% of AP households of house demolition, 10% of AP households of land acquisition and resettlement, and 15% of AP households of temporary land use.

The methods of overall surveys are distributing forms to resettlers and ask them to fill

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out the forms, interviewing resettlers, holding discussion meetings and checking the files kept in department concerned, etc.

(5) Besides written material, other kind of material need to be collected such as pictures, magnetic tapes, videotape and material objects. Resettlement Monitoring and Evaluation Information System on Urban Environment and Water Supply Project of Tangshan City is also established.

Schedule of Resettlement Monitoring and Evaluation In Apr. 2002, M&E Group was set up and began to compile the outline of independent monitoring and evaluation. Before May 2002, preparations for resettlement monitoring and evaluation have been finished. The preparation work includes: In May 2002, baseline survey will be made. In December 2005, the 1st external monitoring and evaluation will be conducted In May 2006, the 2nd external monitoring and evaluation will be conducted In December 2006, the 3rd external monitoring and evaluation will be conducted .

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Annex 2: The Related Policies on Resettlement

ADB Resettlement Handbook

Involuntary resettlement will be avoided where feasible

Where population displacement is unavoidable, it will be minimized by exploring all viable project options

People unavoidably displaced will be compensated and assisted, so that their economic and social future would be generally as favorable as it would have been in the absence as the project.

People affected will be informed fully and consulted on resettlement and compensation options

Existing social and cultural institutions of resettlers and their hosts will be supported and used to the greatest extent possible, and resettlers will be integrated economically and socially into host communities.

The absence of a formal legal title to land by some affected groups will not be a bar to compensation; particular attention will be paid to households headed by women and other vulnerable groups, such as indigenous peoples and ethnic minorities, and appropriate assistance provided to help they improve their status.

As far as possible, involuntary resettlement will be conceived and executed as a part of the project.

The full costs of resettlement and compensation will be included in the presentation of project costs and benefits.

Costs of resettlement and compensation may be considered for inclusion in bank loan financing for the project.

Relevant Provisions of Land Administration Law of the P.R.C.

Article 2: The State may, in the public interest, lawfully requisition land owned by collectives.

Article 47: Land requisitioned shall be compensated for on the basis of its original

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purpose of use. Compensation for requisitioned cultivated land shall include compensation for land, resettlement subsides and attachments and young crops on the requisitioned land. Compensation for requisition of cultivated land shall be six to ten times the average annual output value of the requisitioned land for three years preceding such requisition. Resettlement subsidies for requisition of cultivated land shall be calculated according to the agricultural population needing to be resettled. The agricultural population needing to be resettled shall be calculated by dividing the amount of requisitioned cultivated land per person of the unit the land of which is requisitioned. The standard of resettlement subsidies of the agricultural population needing resettlement shall be four to six times the average annual output value of the requisitioned cultivated land for three years preceding such requisition. However, the highest resettlement subsidies for each hectare of the requisitioned cultivated land shall not exceed fifteen times its average annual output value for the three years preceding such requisition.

Standards of land compensation and resettlement subsidies for requisition of other types of land shall be prescribed by provinces, autonomous regions and municipalities directly in the light of the standards of compensation and resettlement subsidies for requisition of cultivated land.

Standards of compensation for attachments and young crops on the requisitioned land shall be prescribed by provinces, autonomous regions and municipalities directly under the Central Government.

For requisition of vegetable plots in suburbs, the land units shall pay the development and construction fund for new vegetable plots in accordance with the relevant regulations of the State.

If land compensation and resettlement subsidies paid in accordance with the provisions of the second paragraph of this Article are still insufficient to help the peasants needing resettlement to maintain their original living standards, the resettlement subsidies may be increased upon approval by people’s governments of provinces, autonomous regions and municipalities directly under the Central Government. However, the total land compensation and resettlement subsides shall not exceed 30 times the average annual output value of the requisitioned land for the three years preceding such requisition.

The State Council may, in light of the level of social and economic development, raise the standards of land compensation and resettlement subsidies for requisition of cultivated land under special circumstances.

Article 48: Once a plan for compensation and resettlement subsidies for requisitioned land is decided on, the local people’s government concerned shall make it known to the general public and solicit comments and suggestions from the collective economic

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organizations, the land of which is requisitioned, and the peasants.

The rural collective economic organization, the land of which is requisitioned, shall accept supervision by making known to its members the income and expenses of the compensation received for land requisition.

The compensation and other charges paid to the unit for its land requisitioned are forbidden to be embezzled or be misappropriated.

Where the land owned by the State or by peasant collectives needs to be used temporarily for construction of projects or for geologic prospecting, the matter shall be subject to approval by the land administration departments of people’s governments at or above the county level. However, if the land to be temporarily used is located in the area covered by urban planning, the matter shall be subject to agreement by the urban planning administration department concerned before it is submitted for approval. The land user shall, depending on who owns the land and who has land-use right, enter into a contract for the temporary use of the land with the land administration department concerned, or the rural collective economic organization, or the villagers committee and pay compensation for it in accordance with the provisions of the contract.

The temporary land user shall use the land for purposes stipulated in the contract for temporary use of the land and may not build permanent structures on it. Generally, the period for temporary use of land shall not exceed two years.

Land Administration Rules of Hebei Province (revised and approved in Sept.24, 1999, at No.11 meeting of the Standing Committee of No.9 Hebei Province People's Congress)

Article 9: Application shall be submitted to the Land Administration Department for transferring the land ownership, right to use and other rights of land according to laws in restrained time, and the formalities are transacted by the former registration institution after examination and approval.

Article 10: When the collective land ownership or other rights of land shall be taken back according to laws, the persons concerned will hold the relevant documents and submit the cancellation of registration to the Land Administration Department of the former registration institution. After examination and approval, the land ownership and other rights to land will be cancelled by the former registration administration department.

To take back the ownership of state-owned land according to laws, the former registration institution will conduct the cancellation of registration by the relevant approval documents. To take back the ownership of state-owned land according to contracts, the former registration institution will conduct the cancellation of registration

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according to contracts. Article 39: The compensation for land acquisition shall be 3 to 6 times of the average annual output value of the requisitioned land for 3 years preceding such requisition. The compensation for other farmland and construction land beyond the requisitioned cultivated land shall be 5 to 8 times of the average annual output value of the requisitioned land for 3 years preceding such requisition. The compensation for wasteland shall be 3 to 5 times of the average annual output value of the requisitioned land for 3 years preceding such requisition. ] Article 40: Resettlement subsidies for requisitioned land shall be 4 to 6 times of the average annual output value of the requisitioned land for 3 years preceding requisition.

Resettlement subsidies for other farmland and construction beyond the cultivated land shall be 4 to 10 times of the average annual output value of the requisitioned land for 3 years preceding requisition. No resettlement subsides for requisitioned wasteland.

Article 41: If land compensation and resettlement subsidies paid in accordance with the 39 and 40 provisions are still insufficient to help the peasants needing resettlement to maintain their original living standards, the resettlement subsidies may be increased upon approval by people's government of provinces, but the total land compensation and resettlement subsidies shall not exceed the next ration:

(1) The compensation for the cultivated land requisitioned shall not exceed 30 times of the average annual output value of the requisitioned land for 3 years preceding requisition.

(2) The compensation for other farmland and construction beyond the cultivated land shall not exceed 30 times of the average annual output value of the town's land for 3 years preceding requisition.

Article 42: Young crops compensation for requisitioned land shall be counted by as the output value of crops in the exact quarter. The compensation standard of ground attachment shall be constituted by the people's government of the relevant city, and enforced after the approval of people's government of province.

Article 47: If it need to take back the ownership of state-owned land for the sake of public benefit or the city proper reconstruction of urban program, the land administration department of city or county shall make the plans and put them into effect after the approval of former organization or the people's government which has the approval right, the user of former land shall obtain the compensation according to the next standards.

1. Supply the new land or pay the compensation based on the compensation standard

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of land requisitioned if use right of the former state-owned land was acquired by the way of assignment.

2. Compensations shall be calculated based on the land use right price of the surplus year if the land use right was acquired by the way of selling or buying a share.

3. Compensations shall be calculated based on the current conversion value of surplus years and the amount higher the actual rent if the use right of state-owned land was acquired by the way of rent.

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