43023-013: Guangxi Beibu Gulf Cities Development Project

Resettlement Planning Document

Project Number: 43023-013 June 2017

PRC: Guangxi Beibu Gulf Cities Development Project- Updated Resettlement Plan for the Qinzhou Xincheng Road Network Component

Submitted by: Guangxi Foreign Loan Projects Management Office

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

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

Guangxi Beibu Gulf Cities Development Project

Qinzhou Xincheng Road Network Component

(Binhai Highway and Road No. 2 North-Central Section)

Resettlement Plan

Guangxi Qinzhou Linhai Industry Investment Co., Ltd.

19 June, 2017

ENDORSEMENT LETTER FOR THE RESETTLEMENT PLAN

The Guangxi Qinzhou Linhai Industry Investment Co., Ltd. (GQLIICL), the implementation agency (IA) has prepared this Resettlement Plan (RP) for the Qinzhou Xincheng Road Network Component under the Guangxi Beibu Gulf Cities Development Project, which is under application for a loan from the Asian Development Bank (ADB).

The RP fully complies with requirements of the relevant laws, regulations and policies of People’s Republic of China, Guangxi Zhuang Autonomous Region and Qinzhou Municipal Government as well as complies with ADB’s policy on Safeguard Policy Statement in 2009.

This resettlement plan is based on the feasibility study report (FSR) and measurement and socioeconomic surveys and Qinzhou City Project Management Office hereby confirms the content of this RP and will guarantee the land acquisition and resettlement and compensation budget being provided according to the provisions of aforesaid plan.

This RP will be revised and approved by ADB before its implementation when the detailed design is completed.

Thanks for all your support and help to the Qinzhou Xincheng Road Network Component under the Guangxi Beibu Gulf Cities Development Project.

XXXX, Vice Mayor, Qinzhou City

Vice Mayor, Qinzhou City Chairman, ADB Loan Project Leading Group

June 2017

TABLE OF CONTENT

ENDORSEMENT LETTER FOR THE RESETTLEMENT PLAN TABLE OF CONTENT LIST OF ACRONYMS AND MEASURES EXECUTIVE SUMMARY

I. INTRODUCTION ...... 1

1.1 Background ...... 1 1.2 Description of the Project ...... 1 1.3 LAR Impacts of the Project ...... 3

II. IMPACT OF LAND ACQUISITION AND RESETTLEMENT ...... 6

2.1 Measures Taken to Avoid or Minimize LAR Impacts ...... 6 2.2 Methods of LAR Impact Assessment ...... 6 2.3 Scope of LAR Impacts ...... 7

III. SOCIOECONOMIC PROFILE OF AFFECTED AREA AND POPULATION ...... 16

3.1 Socioeconomic Profile of QinzhouCity ...... 16 3.2 Socioeconomic Profile of the Affected Area and APs ...... 16

IV. PUBLIC PARTICIPATION AND INFORMATION DISCLOSURE ...... 22

4.1 Public Participation Strategy ...... 22 4.2 Methods and Measures of Public Participation ...... 22 4.3 Public Participation during RP Preparation ...... 22 4.4 Women’s Participation ...... 23 4.5 Information Disclosure ...... 23 4.6 Public Participation Plan during RP Implementation ...... 24

V. APPEALS AND GRIEVANCE PROCEDURES ...... 29

VI. LEGAL FRAMEWORK AND POLICIES ...... 30

6.1 Applicable LAR Laws, Regulations and Policies ...... 30 6.2 ADB’s Involuntary Resettlement Policies ...... 31 6.3 Related Laws and Regulation of PRC ...... 32 6.4 Gaps between ADB and Chinese Policies ...... 38 6.5 Compensation Criteria and Principles ...... 42

VII. ENTITLEMENT MATRIX...... 46

VIII RESETTLEMENT AND REHABILITATON PLAN ...... 49

8.1 Objectives and Principles of Resettlement Program ...... 49 8.2 Compensation and Rehabilitation Plan ...... 49

IX. COST ESTIMATES ...... 61

9.1 Compensation and Resettlement Costs ...... 61 9.2 Annual Budget ...... 62 9.3 Flow of Fund ...... 63

X. LAR IMPLEMENTATION SCHEDULE ...... 64

10.1 Principles ...... 64 10.2 LAR Implementation Schedule ...... 64

XI. INSTITUTIONAL FRAMEWORK ...... 67

11.1 Project Resettlement Organizational Set-up ...... 67 11.2 Responsibilities ...... 69 11.3 Institutional Capacity Strengthening ...... 71

XII. MONITORING, EVALUATION AND REPORTING ...... 73

12.1 Internal Monitoring ...... 73 12.2 External Monitoring and Evaluation ...... 74 12.3 Reporting Requirements ...... 76

APPENDIX 1: Resettlement Information Booklet ...... 77 APPENDIX 2: TOR for External Monitoring and Evaluation ...... 88 LIST OF ACRONYMS AND MEASURES

ADB - Asian Development Bank AFs - Affected Families AHs - Affected Households APs - Affected Persons DI - Design Institute BP - Bank Policies DMS - Detailed Measurement Survey EA - Executing Agency F - Females QHDAO - Qinzhou House Demolishment Administration Office QLRB - Qinzhou Land Resource Bureau QMG - Qinzhou Municipal Government QPMO - Qinzhou Project Management Office GQLIICL - Guangxi Qinzhou Linhai Industry Investment Co., Ltd. FSR - Feasibility Study Report GDP - Gross Domestic Product GZAR - Guangxi Zhuang Autonomous Region HDAO - House Demolishment Administration Office HHs - Households IA - Implementing Agency IMA - Independent Monitoring Agency LA - Land Acquisition LAR - Land Acquisition and Resettlement LRB - Land Resources Bureau M - Males M&E - Monitoring and Evaluation MLG - Minimum Living Guarantee OP - Operational Procedures PDG - Port District Government PLG - Project Leading Group PMO - Project Management Office PPTA - Project Preparatory Technical Assistance PRC - Peoples Republic of China RC - Resident Committee RIB - Resettlement Information Booklet RO - Resettlement Office ROW - Right of Way RP - Resettlement Plan S&T - Science & Technology ToR - Terms of Reference US$ - United States Dollar WF - Women’s Federation km2 - Square Kilometer % - Percentage mu - Chinese area measure for land, 1 mu = 1/15 ha (1 ha = 15 mu) Chinese currency Yuan CNY - CNY 1 = 1/ 6.80 $US ($US 1 =CNY 6.80) EXECUTIVE SUMMARY

1. The Qinzhou Xincheng Road Network Component will be financed by ADB loan saving of the Guangxi Beibu Gulf Cities Development Project, which is composed of: (i) Binhai Highway Expansion (Jinguang Bridge to Road No. 4, with length of 4 km and No. 2 North-Central Section (K1+004.578～K1+577.077 Section), with length of 0.573 km, and the total length of the two roads is 4.573 km; and (ii) Associated infrastructures, including traffic lights, drainage facilities, sewerage pipeline and landscaping. The Project IA is Guangxi Qinzhou Linhai Industry Investment Co., Ltd. (GQLIICL).

2. The Project will involve land acquisition and structure demolishment partially in Jingu Resident Committee and Jiduntou Resident Committee of Qinzhou Port Economic Development Area, Qinzhou City. A total of 140.7331 mu, including 17.872 mu (12.7%) farmland. The permanent land acquisition will affect 94 households or 317 persons. There is no temporary land occupation to be involved as temporary land use will be within the scope of permanent land acquisition.

3. A total of 8,263.25 m2 of residential houses will be demolished, relocating 52 households or 231 persons. Associated basic infrastructures and special facilities will also be affected, such as cement concrete electricity pole, low-voltage power lines, high-voltage power lines, communication optical cable, road lighting, etc. Of the affected 52 rural households and 231 rural populations, 15 households and 63 persons are vulnerable (of which 11 households and 50 persons are living under minimum living guarantee and 4 women-headed households and 13 women). No ethnic minority will be affected.

4. In order to avoid or minimize land acquisition and resettlement, there was close consultation with the local officials, Jingu and Jiduntou resident committees (RCs) during the preliminary and final Feasibility Study stages for the optimal and proper engineering schemes of the Project.

5. The compensation of the permanent land acquisition is based on the Land Administration Law of PRC, amended in 2004, Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration in October, 2004, Urban House Demolishment Management Regulations of PRC, GZAR “Land Administration Law”, GZAR Guidelines for Implementation of the Urban House Demolition Management Regulation of the PRC. Notification of Unified Annual Production Value Standard for A New Round Land Acquisition announced by Qinzhou City People's Government (Qinzhengfa2013No.6). Notification of Temporary Method of Construction Management for House Demolition Compensation on Collective Land and Resettlement issued by the Office of Qinzhou City People's Government (Qinzhengban2012No.217), Meeting Minutes on Studying the Compensation Standards of Land Acquisition, Standing Crop Acquisition, House Demolition and Ground Attachments (Qingangguanyue2014No.14), Approval of Land Acquisition Compensation Standards for Qinzhou Xincheng Road Network (Qingangguanyue2015 No.78), and Temporary Regulation of House Reconstruction for Full Land Acquisition of Farmers (Qingangguanfa [1998] No. 62). In comparison with the compensation rates of original RP, compensation rates of paddy land and fish pond are higher than the original ones. Others have no changes.

6. The RP was prepared to comply with ADB’s Safeguard Policy Statement (2009). Based on the consultations with local governments and those affected, and general practice in Qinzhou City, the resettlement principles established for the Project are: (i) land acquisition and involuntary resettlement should be avoided or minimized where feasible by developing and comparing a series of design alternatives; (ii) compensation and entitlements provided

i must be adequate to allow those affected to at least maintain their pre-project standard of living, with the prospect of improvement; (iii) land temporarily occupied and the period for disruption are to be kept to a minimum; (iv) all the people affected, legal and illegal, are to be taken into consideration and accounted for; (v) resettlement plan should be prepared and implemented in accordance with state land rehabilitation policy, national economic and social development plans; (vi) all those affected will be adequately informed about eligibility, compensation rates and standards, livelihood and income restoration plans, and project timing; (vii) resettlement plan should be coordinated with such things as regional development, economic development and environmental protection; and (viii) practical and feasible measures should be formulated to restore the affected items; (ix) a preferential policy and assistance will be provided to vulnerable groups in such things as employment; and (x) close monitoring and timely actions will be carried out to identify and resolve any problems. For the 52 households who will be physically displaced, they will take “cash+house plot” resettlement. All of the APs wish to choose to be relocated to the house plot resettlement community close to No. 1 Road Danliao Avenue. The IA and local government will assist the APs on the selection and allocation of the new houses and relocation.

7. The people affected have been notified about the key elements of the RP. The key elements of the RP have been notified to the affected HHs include the project information, LAR impacts, laws, regulations and compensation, livelihood and income rehabilitation plan, and implementation schedule. During the “process of this notification” through surveys and consultation meetings, the majority of the affected households request that if their land has to be acquired and structures have to be demolished, they request to get fair and timely compensation, employment opportunities, and children’s education. The APs consider that they are less concern on the loss of their land and think that farming is not a preferable option for them as agriculture farming losses money with heavy workload and the Project area is getting urbanized in fast speed. They are not willing to engage in agricultural production any more but hope to get the cash compensation and future employment. The affected households would like to use compensation payment to do some businesses or get some training to be employed in enterprises and institutions. For those who will lose their houses, they expressed that they would use the compensation payment to purchase new houses in the centralized Jiduntou resettlement site of the same village. They also wish the Project could be constructed as early as possible and they could get compensation timely. All of these concerned raised have been incorporated in the planning and implementation of resettlement program, and relevant mitigation measures have been formulated and will be implemented during the Project implementation phase. The resettlement information booklet will be distributed to affected community and households before 10 July, 2017. The RP approved by Qinzhou City Government will be redistributed to the resident committee before 10 July, 2017 to anyone wishing to consult the document at the resident community office. At the same time the RP will be posted on the ADB website in the third week of July 2017. The RP will be updated based on detailed measurement survey (DMS) and will be disclosed to APs and submitted to ADB for review and approval. The Qinzhou PMO and GQLIICL will be responsible for supervising implementation, continuing public consultation, monitoring progress and responding to grievances. The grievance address procedures are well established and explanations are included in the RP and resettlement information booklets.

8. For people losing land permanently, “cash” compensation will be provided, and no land readjustment will be made which has been agreed by the APs and resident committee. The compensation will be based on full replacement value. Similarly, cash compensation for structures and ground attachments will also be on replacement value with no depreciation. The households that have to relocate will receive “cash” or "cash + house plot" in the centralized Jiduntou Resettlement Site within the same village and also they will receive a relocation allowance in cash. The PMO, IA, RO and local government will provide necessary assistance during LAR implementation, such as selection and allocation of new houses and relocation. The measures for economic rehabilitation include: (i) provision of 500

ii person-years of employment opportunities to the local community people, including the APs in labor force during the Project construction and 120 public welfare job positions during operational phases; (ii) provision of social insurance, with 40% contribution from the local government and 60% contribution from rural collectives and farmers (The land lost farmers pay 30% based on the 40% of the average wage of the urban workers in last year and 30% by the IA); (iii) provision of the annual employment opportunities generated induced by the Project and related development projects of Qinzhou Port Economic Development Zone if the APs would like to take. The QMG will coordinate with relevant departments, including the owners of the job positions, labor and social security bureau and district government to arrange the APs to be employed for these job positions; (iv) development of tertiary industry; and (v) provision of technical training to 218 APs in labor force to increase their skills to be employed in institutions, enterprises and businesses.

9. Based on the estimate of the IA, the Project construction will generate 500 person-years short-term employment opportunities. The APs will be given priority to be employed during the project construction with income earnings over CNY 1,500 to CNY 2,500 per month.

10. For residential houses to be demolished, “cash compensation" or "house plot + cash compensation" will be paid to the affected people based on the respection of APs’ willingness and living custom, and consultation with the APs. They will move to the resettlement site of the centralized and planned re-construction land of the Project (It is the house plot resettlement community close to No. 1 Road Danliao Avenue). The households that have to be relocated will also receive a relocation allowance and relocation transit allowance. Compensation for ground attachments will be paid to the affected owners.

11. The cost estimate for land acquisition and resettlement is CNY 33.15954 million or US$ 4.8764 million at the prices of 2017, including compensation for permanent land acquisition, residential house demolishment, auxiliaries, relocation allowances, basic infrastructures and special facilities, relevant land taxes, M&E cost, other costs, and contingencies. The land acquisition and resettlement activities will occur between August 2017 and December 2018. Construction will not take place before the APs are fully compensated and relocated, and all arrangements are made to commence the livelihood rehabilitation activities and the APs are registered for these. A community based grievance address procedures has been well established and explanations are included in the RP and RIB. Internal and external monitoring of the RP implementation will be conducted to ensure successful implementation of the RP. Monitoring methodologies are specified in the RP. Internal supervision and monitoring will be done by the IA to ensure compliance with the provisions of the RP. The PMO and IA have agreed to a set of supervision milestones with ADB, to ensure timely and effective implementation of resettlement activities. An independent monitoring agency under contract to the PMO will carry out external monitoring and evaluation. External monitoring reports will be prepared every 6 months during implementation and annually for 2 years after completion of resettlement. These reports will be submitted to ADB, the PMO and the IA, and will be uploaded to the ADB website.

iii

I. INTRODUCTION

1.1 Background

12. The two new roads under the Qinzhou Xincheng Road Network, namely the Binhai Highway and No. 2 North-Central Section (the Proposed Project), is one of the component under Guangxi Beibu Gulf Cities Development Project. The Proposed Project is located in Qinzhou Port Xincheng District, Qinzhou City, Guangxi Zhuang Autonomous Region. According to Guangxi Beibu Gulf Economic Zone Development Plan, Qinzhou Urban Master Plan and Qinzhou Port Xincheng District Detailed Control Plan, Qinzhou Port Xincheng District is oriented as associated residential service area, serving for Qinzhou Port (Qinzhou Port Economic and Technological Development Zone and China - Malaysia Qinzhou Industrial Park), and providing infrastructures and associated facilities to serve industries in Port District, including commerce, management, trade and exhibition, etc.. Therefore, the Project is closely related to the industrial development of the Qinzhou Port District. With so many industrial projects setting up in Qinzhou Port District, a large number of job opportunities have been created and population has also been increasing. As a result, the existing residential and related facilities cannot satisfy the needs of the local people. In February 2017, the China State Council approved the Beibu Gulf Urban Cluster Development Plan. This indicates that Beibu Gulf area will become the strong economic zone in China. The approval of the plan will stimulate the activities and economic development in this zone, therefore the construction of the Xincheng District becomes more and more urgent. The Project is located in the newly developed residential and commercial area of Xincheng District; it particularly serves for the workers and their families living in the Qinzhou Port Industrial Zone. The Project is in the north end of Qinzhou Port Industrial Zone, in the southern area of China-Malaysia Industrial Park, and it is the nearest base between the Qinzhou City and the Qinzhou Economic and Technological Development Zone. It is an important bridge and channel connecting Qinzhou urban area and the port area.

13. According to the plan, in the coming decade, especially during the "13th Five-Year". Qinzhou Port will accelerate the construction of the Qinzhou Port Economic and Technological Development Zone and China-Malaysia Qinzhou Industrial Park, Qinzhou Free Trade Zone and other economic development zone, with land use close to 810 km2, and by then the industries of Qinzhou Port District will be intensively concentrated with industries and large number of population. It is expected that the registered resident population is going to exceed 250,000 persons, of which, 2/3 of the population will live in Xincheng District, totaling about 170,000. With such a large population, the travelling volume of daily life and work also will increase in a large degree; therefore, the construction of complete road network is needed. The construction of the Project will further improve the infrastructure construction of Qinzhou Port. It has great significance to improve current traffic conditions and accelerate development speed of Qinzhou Port, increase the urbanization level, expand opening up as well as speed up economic development.

1.2 Description of the Project

14. The scope of the Project construction includes: (i) the expansion of the Binhai Highway (Jinguang Bridge to the Dalanping Road No. 4), with the length of 4 km, No. 2 North-Central Section (K1+004.578～K1+577.077 section), with the length of 0.573 km, therefore, the total length of the 2 roads is 4.573 km. (ii) Related infrastructures include traffic lights, drainage, sewerage pipeline and urban landscaping. Figure 1-1 is the layout map of the Proposed Project.

Figure 1-1: Layout Map of the Proposed Project (Binhai Highway Expansion and No. 2 North-Central Section)

15. Expansion of Binhai Highway (Jinguang Bridge to Dalanping Road No. 4)

- Construction scale: road length is 4,000 m, red line width is 68 m, and two- ways and ten-traffic lanes (8 trunk roads and 2 branch roads);

- Road grade: urban expressway; - Design speed: V=80 km/h, recent traffic speedy limited is V=60 km/h; - Construction content: road engineering, drainage engineering, bridge engineering, lighting engineering, carcasses work of strong and weak electric ditch, traffic engineering, greening and associated engineering; - Proposed construction period: December 2017 to December 2018.

16. No. 2 North-Central Section (K1+004.578～K1+577.077)

- Construction scope: road length is 573 m, and red line width is 60 m - Road grade: urban trunk road grade II; - Design speed: V=40 km/h - Construction content: road engineering, drainage engineering, lighting engineering, carcase work for strong and weak electric ditch, traffic engineering, greening and associated engineering. - Proposed construction period: October 2017 to September 2018.

17. The total investment of the project is CNY 362.50 million. The construction period of this Project is 15 months.

1.3 LAR Impacts of the Project

18. For the Proposed Project, the land use within the red line includes paddy land, dryland, slope land, forestland, homestead and shrimp pond. Buildings are distributed within the red line of the road. The impact of the Project is measured mainly based on the feasibility study report and will be updated based on DMS. The construction of the Project will involve permanent land acquisition, residential structure demolishment, auxiliaries and basic infrastructure and special facilities.

19. The permanent acquisition of collective land is 140.7331 mu, including 17.782 mu (12.7%) farmland. The permanent land acquisition will affect 94 households or 317 persons. There is no temporary land occupation to be involved as temporary land use will be within the scope of permanent land acquisition.

20. The land to be acquired (land loss) for the Project only accounts for 0.69% of Jingu RC and Jiduntou RC collective-owned land and 1.45% of their farmland; and accounts for 0.7% of affected households, and 0.17% of the total income for the affected households at average, or CNY 37.29 per household per year. For the affected households, only 24.52% of their income come from agricultural production and sideline business on land. As a result, it can be seen that the impact of the land and farmland acquisition to the collective and the family is not serious. However, due to the land loss, associated proportion of income will also be lost. Therefore, the income rehabilitation for the APs has been taken into consideration of the RP.

21. Because of the land acquisition, 8,263.25 m2 of residential structures will be demolished, including 4,618.86 m2 brick-concrete structures, 1,109.98 m2 tile-wood structures and 2,534.41 m2 simple shed. In total, 52 rural households or 231 rural people of Jingu RC and Jiduntou RC will be relocated (although the village committee has been changed into RC, but the residents still keep their rural household registration).

22. In summary, the Proposed Project will affect 94 rural households or 352 rural populations by permanent land acquisition, house demolition, and ground attachments. No ethnic minorities will be affected.

23. Based on the design of the Project construction map and the detailed measurement survey (DMS), the RP will be updated and submitted to ADB for review and approval.

1.4 Preparation of RP

24. In line with the ADB’s Safeguard Policy Statement (2009) and the relevant laws, regulations and guidelines issued by the governments of People’s Republic of China, Guangxi Zhuang Autonomous Region and Qinzhou City. The RP will be reviewed and approved by Qinzhou Municipal Government (QMG) and ADB.

25. The RP preparation is based on the following relevant project documents and legal documents, and the results of public participation and consultations.

(1) Design Basis:

 Project Feasibility Study Report;  Economic and Social Development Statistical Communique of Qinzhou City in 2015;  Urban Development Master Plan of Qinzhou City; and,  “Thirteen-Five Years Plan” of Qinzhou City.

(2) Legal and Policy Basis

 Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration in October, 2004;  Land Administration Law of the PRC, amended in 2004;  Implementation Regulation for Land Administration Law of PRC; December 1998;  Notification on Adjusting Newly Added Construction Land Use Fee Collection issued by Ministry of Finance and Ministry of Land Resources [CaiZong [2002] 93];  Temporary Regulations on Farmland Acquisition Tax of PRC, 2008;  GZAR “Land Administration Law”, 2001;  Management Law of Urban Real Estate of PRC, 1994;  Guidelines for Valuation on Urban House Demolishment of PRC; 2004;  Urban Housing Demolition Management Regulations of the PRC issued in 2001;  Urban Housing Demolition Management Regulations of the PRC (2001, State Council Decision Decree 305);  Temporary Regulations of Farmland Acquisition Tax, 2008;  Guangxi Zhuang Autonomous Region Guidelines for Implementation of the Urban House Demolition Management Regulation of the PRC, 2003;  Decree 15 of Guangxi Zhuang Autonomous Region People’s Government: Implementation Methods for Regulations on Village and Town Planning and Construction in Guangxi Zhuang Autonomous Region;  Notification on Announcement for Average Production Value for Land Acquired and Demolishment Compensation Standards for the Construction Land Use of GZAR Basic Infrastructures and Important Projects [Guifagaifagui (2009) 52];  Implementation Methods of GZAR Farmland Occupation Tax [Guizhengfa (1987) 88 Hao 59];  A New Round of Unified Standard of Annual Output Value Document [Qinzhengfa (2013) No.6];

 Notice of the Qinzhou Municipal People's Government Office Issued Interim Measures on Qinzhou Collective Land Expropriation Compensation and Resettlement Construction Management (Qin, 2012 No. 217);  Study on Land Expropriation and Requisition, Housing Demolition and Young Crops and Ground Attachments Compensation Standard (Qingangguanyue 2014No. 14);  Approved Land Acquisition Compensation Standard of Qinzhou Xincheng Road Network (Qingangguanyue (2015) No. 78);  Interim Provisions of Farmers' Demolition Reconstruction Land Related Issues for Full Acquisition Team (Qingangguanfa [1998] No. 62);  ADB's Involuntary Resettlement, Manila, 1995;  Handbook on Resettlement: A Guide to Good Practice, ADB Manila, 1998;  Gender Checklist: Involuntary Resettlement, ADB Manila, February 2003;  OM Section F2 — Operations Manual: Bank Policies (BP) and Operational Procedures (OP), ADB, Manila, 2006; and,  ADB’s Safeguard Policy Statement, Bank Policy Operating Handbook OM F1 (January 20, 2010).

(3) Public Participation and Community Consultation Activities

 Visits to the Project affected areas;  Consultation meetings with district government leaders, representatives, and APs between November and December 2016;  Sample socioeconomic survey of affected households in January 2017;  Land acquisition and resettlement survey information in February 2017;  Focus group discussion during ADB PPTA phase in February 2017; and,  Consultation workshops on environment and resettlement in January 2017.

26. The aim is to avoid involuntary resettlement 1 wherever possible; to minimize involuntary resettlement by exploring project and design alternatives; to restore or enhance livelihoods of displaced persons relative to pre-project levels; and to improve the standards of living of the affected poor and other vulnerable groups.

27. The goal of RP preparation includes: i) Through optimal engineering design to avoid or reduce the impacts of land acquisition and resettlement; ii) Resettlement Plan is based on the land acquisition and resettlement indexes and the compensation standard, and the goal is to increase the living standards of the APs, at least not worse-off; iii) Development resettlement is promoted; iv) APs are encouraged to participate in the Resettlement Plan preparation, in particular women; and v) Women’s rights and interests should be fully taken into consideration of the Project.

1 For involuntary resettlement, It means those who have to relocate (displace, losing residence or shelter) and / or have to be re-empolyed (losing land, property, the opportunity of getting property, income or livelihood) due to (i) land acquisition, or (ii) restriction on the use of or access to parks and protected areas established by law.

II. IMPACT OF LAND ACQUISITION AND RESETTLEMENT

2.1 Measures Taken to Avoid or Minimize LAR Impacts

28. To avoid or reduce land requisition and resettlement (LAR) impacts to the minimum, alternatives have been carefully reviewed in considering of technical, economic, financial, environmental aspects, land acquisition and resettlement feasibilities, and the optimal option has been adopted for the Proposed Project. By taking into consideration of reducing land acquisition and resettlement impacts, and the life and property security of the residents in the Project Area, the mitigation measures to reduce the LAR impacts have been proposed: 1) strictly control the scope of land acquisition through coordinated surveying and mapping; and 2) avoid agricultural land, the intensive resident area, forest, communication areas, the upper- and middle-stream of drinking water resources protection area, forest biological environment protection area, railway, expressway, high-voltage corridor as much as possible. As a result, Option II has been selected as the option of the Project. Table 2-1 is the alternative comparison of “Option I” and “Option II” to minimize LAR impacts on collective-owned land within ROW. Option I has the advantages of small volume of earth works, but the number of affected households and populations is larger. From technical consideration, Option I has relatively steep slope, relatively smaller vertical curve radius and relatively poor vertical alignment, involved in forest ecological protection. Option II has smaller slope changing points, smaller slopes, large vertical curve radius and relatively better vertical alignment, relatively larger volume of earthworks, more structure demolishment and land acquisition, and high initial investment, but the number of affected households and population is smaller than Option I and avoid the forest ecological protection area. In addition, Option II will acquire less land at 226.60 mu than Option I at 248.66 mu, and also Option II will demolish less structures at 8,263.25 m2 than Option I at 9,651.37 m2. Although the initial investment of Option II is greater than Option I, it has the advantages of relatively good comfort-ability, less traffic accidents and fuel consumption, and relatively lower life-cycle cost. In addition, considering relatively more earthworks for the land leveling of the whole area, the discarded earth of Option II could be used. After comprehensive comparison, Option II is recommended.

Table 2-1: Alternatives to Reduce the Land Acquisition within ROW Option I Option II House House AHs APs Land Acquisition AHs Land Acquisition Demolishment APs (No.) Demolishment (No.) (No.) (mu) (No.) (mu) (m2) (m2) The 109 263 9,651.37 248.655 94 317 8,263.25 140.7331 Project Total 109 263 9,651.37 248.655 94 317 8,263.25 140.7331

2.2 Methods of LAR Impact Assessment

29. The physical identification of impacts are mainly relies on the statistical data obtained from the relevant government organizations, questionnaires, measurement survey, and discussion with APs during field investigation, site visits, meetings, individual interviews, etc.

30. Between February and March 2017, under the supervision of PMO and IA, the Qinzhou Port District Government and RC carried out full-scale property and socioeconomic surveys to obtain basic data and prepare the RP. The survey is carried out to clarify the quantity and number of the properties affected by the Project. This has provided basic data for the scope of the Project impacts, the calculation of losses caused by LAR, socioeconomic impacts, planning on livelihood restoration of the APs, budget, and monitoring and evaluation.

31. The Project will affect land, house structures, auxiliaries, and basic infrastructures and special facilities. The quantity and category of the acquired lands and demolished structures were surveyed with the participation of the APs. Resident committee and representatives of the residents were consulted on compensation standards and resettlement plan for land acquisition and resettlement.

2.3 Scope of LAR Impacts

2.3.1 Summary of Land Acquisition

32. According to the identified impact, the scope of the land acquisition and resettlement of the Project includes permanent land acquisition, and residential structure demolishment and auxiliaries. Some basic infrastructures and special facilities will also be affected. It should be noted that the impacts include the engineering components of drainage, sewerage pipeline and landscaping which are within the ROW. Table 2-2 provides the summary of the LAR impacts.

Table 2-2: Summary Land Acquisition and Resettlement Impacts Permanent Land Acquisition Total AHs and APs to Be Administrative Jurisdiction Residential House Demolishment 2 (Collective Land) Affected (No.) Collective Land AHs District Community Total Area (mu) AHs (No.) APs (No.) Total Area (m2) APs (No.) AHs (No.) APs (No.) (mu) (No.) Jingu RC 1,960.83 62.4879 31 146 5,082.87 31 146 31 146 Port District Jiduntou RC 1,852.65 78.2452 63 206 3,180.38 21 85 63 206 TOTAL 3,813.48 140.7331 94 352 8,263.25 52 231 94 352 Note: 1 AHs and APs are affected by residential house demolishment will also be affected by permanent land acquisition.

2.3.2 LAR Impacts by Type of Losses

2.3.2.1 Permanent Land Acquisition

33. The Project will acquire 140.7331 mu collective land. Table 2-3 provide the impacts of permanent land acquisition within ROW.

Table 2-3: Permanent Land Acquisition by RC No. of Permanent land acquisition(mu) No. of Affected Total area of RC Affected Households collective land Paddy Land Slope land Forest land Homestead Total Population Jingu RC 31 146 1,960.83 17.872 21.8401 22.7758 0 62.4879 Jiduntou RC 63 206 1,852.65 74.8792 3.3660 0 78.2452 Total 94 352 3,813.48 17.872 96.7193 26.1418 0 140.7331

2.3.2.2 Residential House Demolishment

34. Within the ROW, the Project will demolish 8,263.25 m2 residential structures. Table 2-4 provides the area of residential structure demolishment. The area of house ranges from 20 m2 to 1,000 m2, with average at 158.9 m2 per household. All of the 52 households will be relocated to the new resettlement sites by choosing house plot resettlement community close to No.1 Road Danliao Avenue.

Table 2-4: Demolishment of Residential Structures Affected AHs APs Area of Residential Structure (m2) Community (No.) (No.) Brick-Concrete Tile-Wood Simple Shed Total Jingu RC 31 146 2,000.48 1,016.38 2,066.01 5,082.87 Jiduntou RC 21 85 2,618.38 93.60 468.4 3,180.38 TOTAL 52 231 4,618.86 1,109.98 2,534.41 8,263.25 Note: AHs and APs are affected by residential house demolishment will also be affected by permanent land acquisition.

Table 2-5: Scope of Residential House Demolishment (N52 HHs) Scope of Residential House Demolishment AHs % 20m2 0 0.00% 20m2–100m2 24 46.15% 101m2–200m2 17 32.69% 201m2–300m2 7 13.46% 301m2–400m2 2 3.85% 401m2–500m2 0 0.00% 501m2–600m2 0 0.00% 601m2–700m2 1 1.92% 701m2–800m2 0 0.00% >1,000m2 1 1.92% Total 52 100.00%

2.3.2.3 Ground Attachments

35. Some ground attachments (including auxiliaries, basic infrastructures and special facilities) will be affected also. Table 2-6 are the impacts of affected infrastructure and special facilities.

Table 2-6: Affected Infrastructures and Special Facilities Items Unit Quantity Cement concrete rods No. 62 Communication optical line m. 4,000 Overhead communication optical line m. 4,000 High-voltage electricity power line m. 4,000 Low-voltage electricity power line m. 4,000 Transformer No. 2 Street lighting No. 104

2.3.2.5 Affected Households and Population

36. In summary, the project will acquire part of land from Jingu RC and Jiduntou RC in Qinzhou Economic and Technology Development Zone. The affected rural households are 94 and 352 people. Table 2-7 is the summary of the affected households and populations.

Table 2-7: Summary of Affected Households and Populations (unit: No.) Permanent Land Residential Structure Total AHs and APs by Acquisition Demolishment Different Impacts Resident Committee (Collective Land) APs APs APs AHs (No.) AHs (No.) AHs (No.) (No.) (No.) (No.) Jingu 31 146 31 146 31 146 Jiduntou 63 206 21 85 63 206 Total 94 352 52 231 94 352 Note: 1 The households and populations to be affected by house demolition will also be affected by permanent land acquisition.

2.3.2.6 Impacts on Vulnerable Groups

37. Of the total affected households by the Project construction, 15 households (28.85%) and 63 persons are classified as vulnerable families. The type and quantity of vulnerable groups is presented in Table 2-8.

Table 2-8: Type and Quantity of Affected Vulnerable Groups Jingu Resident Committee Jiduntou Resident Committee Vulnerable Groups Type AHs APs AHs APs “Five Guarantees” Family 1 0 0 Household Living Under the Minimum

Living Security Line 2 4 20 7 30 Families with Disabled 0 0 Female-headed Households 3 2 7 2 6 Extremely Poor Family 4 0 0

Total 6 27 9 36 Note: 1 Families Given/With/Receiving/Enjoying Five Assurances/promises. 2 Households living under MLG are classified as the poor households. 3 Families with the labor force mainly on female. 4 The people excluded in the safeguard object of system of safeguard lowest life, but because of illness or accident caused temporary difficulties, they cannot maintain daily life, for the relief mostly the issue of interim relief, and the amount is different by region.

2.3.3 Impact Analysis

2.3.3.1 Land Loss

38. The Project will lose 140.7331 mu of collective land permanently, including 17.872 mu farmland. The Project will cause the loss of 1.45% of collective land in Jingu RC. For the total affected households in Jingu RC and Jiduntou RC, a total of 62.4879 mu and 78.2452 mu of land will be acquired, or land loss accounts for 0.61 and 0.79% respectively, and the impact is less serious. For the total family income averaged at CNY 21,820 per year with 54% share (or CNY 11,782.80) of income from agricultural farming, it is calculated that the income loss from their land is average at 0.31% and 0.43% respectively, thus we could see that agricultural income has less share of the family income of the affected households. The

livelihood restoration program will be sufficient to restore their losses and their living standards will be improved. Table 2-9 and Table 2-10 provides the impact analysis of land loss of Jingu Resident Committee.

Table 2-9: Land Loss Analysis of Permanent Land Acquisition for RC Before Land Acquisition Land Use by the Project Ratio of Land Loss Remaining Farmland (mu) Of which Total Land RC Total HHs Total APs Total Land Area AHs APs Of which Total Area Farmland Remaining Farmland Area (No.) (No.) (mu) (No.) (No.) Farmland (mu) (%) area (%) Farmland (mu) (mu) (mu) Jingu 473 2,381 10,294 1,234 31 146 62.4879 17.872 0.61% 1.45% 1,216.120 Jiduntou 436 1,862 9,866 1,075 63 206 78.2452 0.000 0.79% 0.00% 1,075.00

Total 909 4,243 20,160 2,309 94 352 140.7331 17.872 0.69% 1.45% 2,291.120 Note: The data comes from the 909 surveyed households of the original RP.

Table 2-10: Land Loss Impact Analysis on Households No. Items Jingu RC Jiduntou RC I Impacts 1 Affected Households 31 63 2 Affected Rural 111 206 Population 4 Land Acquisition (mu) 62.4879 78.2542 5 Per capita farmland 0.52 0.58 (mu) before LA 6 Per capita farmland 0.51 0.58 (mu) after LA 7 Percentage of land 0.61% 0.79% loss 8 Percentage of Income 0.31% 0.41% loss II Income Sources 9 Agriculture ($10,000) 414.35 352.48 - percentage (%) 51.75% 54% 10 Secondary Industry 248.37 226.3 11 Tertiary Industry 137.96 152.24 12 Total household average annual 21,640 21,820 income III Percentage of land loss -divided by family 13 < 10% 15 35 14 > 10% - 30% 8 16 15 > 30% - 50% 6 5 16 > 50% - 70% 1 2 17 > 70% - 90% 1 3 18 > 90%-100% 0 0 19 100% 0 0 21 Total 31 63 IV Percentage of land loss - by population 22 < 10% 38 121 23 > 10% -30% 31 30 24 > 30% - 50% 28 45 25 > 50%-70% 11 10 26 > 70% - 90% 2 0 27 > 90%-100% 0 0 28 100% 0 0 Total 111 206

III. SOCIOECONOMIC PROFILE OF AFFECTED AREA AND POPULATION

3.1 Socioeconomic Profile of Qinzhou City

39. Qinzhou City is situated in the south coastal area of Guangxi Zhuang Autonomous Region, which is boarded with the northern part of Beibu Gulf, north latitude 21° 35'~ 22° 28' and east longitude 100° 11'~ 109° 9', connecting with Beihai and Yulin cities in east, neighbored with Fangchenggang City in west and boarded with Nanning city in north. It is about 110 km from the urban area to Nanning, 120 km to Beihai and 40 km to Fangchenggang. It is just at the central Beibu Gulf Economic Zone of “Nanning, Beihai, Qinzhou and Fangchenggang”, which has the function of linking west and east, north and south. It serves as the important transport hub connecting southwest Guangxi and the sea. It is the most convenient sea entrance channel of the southwest region.

40. City administers Lingshan County, Pubei County, Qinnan District, Qinbei District, Qinzhou Port Economic Development Zone and Sanniangwan Tourist Management Zone, with the total land area of 10,800 km2. The population is 3.7119 million by the end of 2009. Population density is 344 persons / km2. The urban area includes Qinbei and Qinnan two districts; it sets up Qincheng Management Area and Qinzhou Port Economic Development Zone.

41. By the end of 2015, the population of Qinzhou City reached 4.0410 million people with an increase of 20,900 people over last year. Of the total population, 588,600 thousand or 14.6% was urban population and rural population was 3.4524 million people, accounting for 85.4% of the total population. Males were 2.2097 million, accounting for 54.7%, and females 1.8312 million, accounting for 45%. By the end of 2015, statistics department indicated that the registered population was 3.2093 million, of which the urban population was 1.1884 million people. The urbanization ratio was 37.03%.

42. In 2015, the GDP totaled at CNY 94.42 billion or an increase of 8.4% over last year. Of which, the added value of primary industry was CNY 20.518 billion with an increase of 4.1%; the second industry was CNY 38.175 billion, with an increase of 8.5%; the tertiary industry was CNY 35.749 billion with an increase of 11.2%. Three industries contribute to economic growth rates were 9.4%, 51.9% and 38.7%. The contribution rate of industry to economic growth was 28.6%. The structure of the three industrial value-added was adjusted to 21.7:40.4:37.9 in 2015 from 22.7:39.6:37.7 in 2014. The proportion of the primary industry decreased by 1%, the second industry increased by 0.8% and the tertiary Industry increased by 0.2%.

43. In 2015, the city's net income of rural residents was CNY 9,710 per capita, with an increase of CNY 818 or 9.2% over last year. Engel coefficient of rural residents (the proportion of residents' food consumption accounted for the total consumption expenditure) was 46.2%. The city's farmers’ per capita housing area of 38.52 m2. Urban residents’ disposable income was CNY 27,281 per capita, with an increase of 7.3% or CNY 1,856; the consumption expenditure of the residents was CNY 16,446 per capita, with an increase of 7.4%. The Engel coefficient of urban residents (the proportion of residents' food consumption in total consumption expenditure) was 45.6%. The city's urban residents per capita housing area is 49.61 m2.

3.2 Socioeconomic Profile of the Affected RC and APs

44. This survey was undertaken by the Jingu Resident Committee and Jiduntou Resident Committee of Qinzhou Port Economic Development Zone under the supervision of PMO and

IA from December 2016 to January 2017. Its main objectives were: (i) to compile socioeconomic information on the APs likely to lose land or property to the Project component; (ii) to obtain information on the extent of APs’ knowledge of the proposed Project; and (iii) to identify APs’ preferences regarding land acquisition, structure demolishment and income rehabilitation measures.

45. The survey covers all the rural households to be affected by permanent land acquisition and structure demolishment in the affected Resident Committee and AHs. A total of 909 households (100% of households to be affected by permanent land acquisition and 100% of households to be affected by the residential house demolishment) of the total affected households were surveyed during the original RP preparation. Table 3-1 presents the socioeconomic status of the affected Resident Committee.

Table 3-1: Economic Status of Affected RC Index Jingu RC Jiduntou RC Total Households (No.) 473 436 Total Population (No.) 2,381 1,862 Females 1,078 834 Agricultural Population (No.) 2,351 1,837 Non-Agricultural Population (No.) 30 25 Total Labor Force (No.) 1,560 1,233 Industry 411 259 Agriculture 1,125 884 Service Industry 24 50 Total Area of Land (mu) 10,294 9,866 Total Farmland 1,234 1,075 Paddy Land 1,234 1,075 Slopland 8,560 8,521 Forestland 500 270 Gross Income (CNY 10,000) 930.54 827.97 Agriculture (CNY 10,000) 482.6 381.46 Industry (CNY 10,000) 230.9 196.44 Service & Tertiary Industry (CNY 10,000) 217.04 250.07

3.2.1 Demographic Features of APs

46. The detailed demographic features of surveyed APs in original RP are listed in Table 3-3, including age, population composition, education and occupation by gender.

47. Although the affected village has been changed into resident committee, but for the total surveyed household populations, all households and populations are still rural, including 45.06% are women. The family size is 4.46 persons. Of the total affected rural population, labor force accounting for 69.01% of the total population. The ages of the surveyed population showed that the population is approximately distributed in normal situation, between 51-60 years old, accounting for 6.13% of the total sampled population; the majority of the population between 36-50 years old who represent the major workforce and account for 15.15% of total sampled population, and between 60-70 years old accounting for 4.12% of the total sampled population.

48. Over half (61.8%) of the household members have received junior middle school education, ranked first; senior high school education ranked second, accounting for 20.39%,

primary school education ranked third, 9.99%. Other 5.2% have received vocational education or college education. Illiterate persons accounted for 2.36%. Of the total surveyed respondents, 12.48% are those who are over 60 years old or less than 6 years old.

49. The employment is characterized by 25.3% of the APs in labor force engaged in tertiary industry, 48.36% engaged in the agricultural and sideline (such as breeding), 2% engaged in institutions and enterprises. Meanwhile they also use low-peak season during agricultural production period to go out for seasonable labors. Some women and young people also go out for seasonable work, and this become to be the main income resources. Except agricultural production, 64% people are engaged in seasonable labor. Other occupations, such as go to nearby factories or enterprises for seasonable labors accounting for 6%.

Table 3-3: Demographic Features of the Surveyed Populations Male Female Total Item Number % Number % Number % Households：909 2,331 54.94% 1,912 45.06% 4,243 100 Household Size：4.6 Age 6 Years 145 3.42% 125 2.95% 270 6.36% 7-19 Years 236 5.56% 218 5.14% 454 10.70% 20-35 Years 1,379 32.50% 1,002 23.62% 2,381 56.12% 36-50 Years 312 7.35% 331 7.80% 643 15.15% 51-60 Years 135 3.18% 125 2.95% 260 6.13% 61-70 Years 92 2.17% 83 1.96% 175 4.12% 71 Years 32 0.75% 28 0.66% 60 1.41% Total 2,331 54.94% 1,912 45.06% 4,243 100.00% Composition Kids (< 7 years old) 159 3.75% 136 3.21% 295 6.95% Students 539 12.70% 391 9.22% 930 21.92% Labor Force 1,581 37.26% 1,347 31.75% 2,928 69.01% Retired* 52 1.23% 38 0.90% 90 2.12% Total 2,331 54.94% 1,912 45.06% 4,243 100.00% Education Illiterate 51 1.20% 49 1.15% 100 2.36% Primary school 218 5.14% 206 4.86% 424 9.99% Middle school 1,487 35.05% 1,135 26.75% 2,622 61.80% High school 448 10.56% 417 9.83% 865 20.39% Vocational School 96 2.26% 79 1.86% 175 4.12% College 25 0.59% 21 0.49% 46 1.08% University or Above 6 0.14% 5 0.12% 11 0.26% Total 2,331 54.94% 1,912 45.06% 4,243 100.00% Occupation Agricultural and Sideline 2,052 48.36% 2,191 51.64% 4,243 100.00% Note: The retired person means female 55 years, male60 years. Data sources: Socioeconomic survey December 2016.

3.2.2 Residential Houses

50. All structure within the scope of the Project ROW will be demolished. According to the survey, it indicates that the average area of structures is 162.02 m2. The maximum area of structures is 1,006.75 m2. Table 3-4 is the area of structures to be demolished.

Table 3-4: Area of Residential Structure Demolishment (N=52 HHs) Unit: m2/AH Structures Min. Max. Average No. of Rooms 3 24 6.4 Area of Structures (m2) 21.45 1,006.75 162.02

51. The affected structures mostly include brick-concrete, tile-wood and mud houses, of which 55.9% are brick-concrete,13.43% are tile-wood, and the rest 30.67% is simple shed.

3.2.3 Land Use

52. The affected Jingu resident committee and Jiduntou resident committee have a total of 2,309 mu farmland, 909 households or 4,243 persons. The average farmland per households is 2.54 mu, with average farmland of 0.54 mu per capita. The land use in these two resident committees mainly includes paddy land, slope land, and forestland. The major agricultural crops are paddy rice. As a result of land acquisition, the affected resident committee will lose 0.69% of their land, including 1.45% of collective farmland. The land loss for the affected households accounts for 0.52% and 0.79% for Jingu RC and Jiduntou RC respectively, and the income loss is average at 0.31% and 0.43% respectively.

3.2.4 Financial Situation of Households

53. According to the statistical data of the surveyed households, the average annual income is CNY 21,730 per household or 5,187 per capita, of which 48.87% are from seasonable labor, 24.52% from agricultural and sideline, and 8.47% from fixed salary, and 9.2% from government subsidy, 8.94% from house rental, business and other incomes. Of the total household income, 57.48% are contributed by males and 42.52% by females. Table 3-5 provides the details of the average income of the affected households by gender.

Table 3-5: Average Income of the Affected Households by Gender Average Annual Income of Households Income of Source of Income Total Income of % Male % % (CNY) Female (CNY) (CNY) Seasonable Labor 10,620.00 48.87% 7,450.00 34.28% 3,170.00 14.59% Fixed Salary 1,840.00 8.47% 1,365.00 6.28% 475.00 2.19% Sales of Agricultural 5,328.00 24.52% 1,655.00 7.62% 3,673.00 16.90% & Sideline Products Government Subsidy 2,000.00 9.20% 600.00 2.76% 1,400.00 6.44% Business and Others 1,942.00 8.94% 1,420.00 6.53% 522.00 2.40% Total 21,730.00 100.00% 12,490.00 57.48% 9,240.00 42.52%

54. The results of the survey show that the average annual expenditure per capita is CNY 3,890, CNY 2,256.2 for food, accounted for 58%% of the total expenditure, CNY 880.82

for clothes, accounted for 14.16%, CNY 297.59 for water and electricity, accounted for 7.65%, CNY 177 for telecommunication, accounted for 4.55%, CNY 132.26 for gifts, accounted for 3.4%, CNY 199.17 for transportation, accounted for 5.12%, CNY 94.53 for medical care, accounted for 2.13%, CNY 99.97 for education, accounted for 2.57%. See Table 3-6 for the details of average household expenditure.

Table 3-6: Average Annual Expenditure of the Affected Households (N=52 AHs) Average Annual Average Annual % of Total Expenditure Expenditure Per Expenditure Per Expenditure Capita (CNY) Family (CNY) Food 2,256.20 9,709.20 58.00% Water & Electricity Cost 297.59 1,280.61 7.65% Clothes 550.82 2,370.38 14.16% Transportation 199.17 857.09 5.12% Telecommunication 177.00 761.67 4.55% Education 99.97 430.22 2.57% Medical Care 94.53 406.78 2.43% Cosmetics and entertainment 39.68 170.75 1.02% Gifts 132.26 569.16 3.40% Tax 28.40 122.20 0.73% Others 14.39 61.94 0.37% Average Annual Household 3,890.00 16,740.00 100.00% Expenditure

3.2.5 Vulnerable Groups

55. The vulnerable groups were identified based on field survey. The vulnerable group includes “Five Guarantees” households, households living under MLG, households with disabilities, and female-headed households. There are 15 households (29.41%) or 63 persons vulnerable households. Details for status quo of affected vulnerable group are showed in Table 2-9.

56. For the 11 households living under MLG, they will be provided with MLG fund at CNY 560-CNY1,200/capita/month by the civil affairs bureau. The implementing agency will also give them additional care and preferential policies, to provide them with training and employment opportunities. Qinzhou Municipal Government could also assist them to get access to small credit from banks or provide the necessary assistance to them during the resettlement process.

57. For the 4 female-headed rural families, they are engaged in seasonable labor, small business, agriculture and animal breeding. Their monthly net income from economic activities ranges from CNY 600/capita to CNY 1,500 / capita. After land acquisition, they will loss their partial land and associated income from land related activities at about CNY 800/capita to CNY 1,500/ capita per year. In addition, the IA will provide with training and employment opportunities, and Qinzhou Municipal Government will provide them necessary supports during resettlement process and also assist them to get access to small credit from banks. Their future livelihood and income will be ensured and improved.

3.2.6 Gender Perspectives on Resettlement

58. When asked the surveyed households on the resettlement issues, the majority of the affected households request fair and timely compensation, employment opportunities. In comparison with house demolition, the APs consider that they are less concern on the loss of their land and think that farming is not a preferable option for them. Because agricultural

production is easy to be affected by bad weather, and will lead to income instability. As they live close to the urban area, they are not willing to engage in agricultural production any more but hope to get the job opportunities to work in institutions and enterprises, or get partly paid cash compensation to develop service industry. The surveyed 51 households would like to use compensation payment to do some businesses or get some skills training, to purchase transportation vehicles and machinery equipment for construction, to buy insurances, work as seasonable labor, and work in the service industry in the new district or deposit the compensation payment into bank for future use. All of them do not want to engage in agricultural farming any more. Table 3-7 provides the opinions and concerns of the APs for resettlement. All of these concerns raised have been incorporated in the planning and implementation of resettlement program, and relevant mitigation measures should be formulated and implemented.

Table 3-7: Opinions and Concerns of the APs on Resettlement Item % of Males % of Females % of Total Fair Compensation 100 100 100.00% Availability of Replacement Houses 100 100 100.00% Timely Compensation 100 100 100.00% Employment 75 65 70.00% Obtaining Reconstruction Land 100 100 100.00% All Cash Compensation 50 45 100.00% Future Employment 60 80 70.00% Children’s Education 85 90 87.50% Assistance during Resettlement 100 100 100.00% Loss of Family Social Network 5 8 6.50% Others (Government’s Assistance) 50 70 60.00%

IV. PUBLIC PARTICIPATION AND INFORMATION DISCLOSURE

4.1 Public Participation Strategy

59. Great attention has been paid to public participation under the Proposed Project during the planning, and RP preparation. Comments have been solicited from the affected Residents Committee, government organizations and affected households.

4.2 Methods and Measures of Public Participation

60. During the preparation of the project FSR, PMO, IA and DI have held various meetings with the relevant organizations and representatives of Residents Committee regarding the land acquisition and resettlement issues and compensation policies. Comments and suggestions have been obtained on the resettlement site, compensation, and livelihood and income rehabilitation plan. The RP has been prepared based on the above.

61. During the Project implementation phase, PMO, IA and RO will encourage local residents to involve in the land acquisition and livelihood rehabilitation and income restoration process.

4.3 Public Participation during RP Preparation

62. During the RP preparation, all relevant organizations and representatives have participated in the following activities:

(1) During the measurement survey of land acquisition and resettlement from December 2016 to January 2017, all levels of relevant organizations responsible for land acquisition and resettlement, Resident Committee, representatives of community residents (including women) have been involved in the survey activities. During the survey, women were basically on the spots; they carefully checked and read the index investigation final results.

(2) From December 2016 to February 2017, the PMO, IA and DI organized many meetings with district leaders, representatives of RC, and APs to publicize the existing national, autonomous region and the latest issued or updated municipal resettlement policies of Qinzhou City and ADB’s Safeguard Policy Statement (2009). Comments have been solicited from the participants for minimizing the project impacts, and formulating the compensation rates, and resettlement and rehabilitation plan. With extensive consultations, the APs who will be affected with different losses all agree with the cash compensation or replacement resettlement in accordance with the national regulations.

(3) During resettlement planning period from January to February 2017, PMO, IA, DI, and other relevant organizations visited the affected residents of Jingu resident committee and Jiduntou resident committee, held meetings with participation of the residents to solicit their comments on land acquisition and resettlement, compensation policies and standards, resettlement plan, and restoration measures. These consultation meetings and investigations have generated lots of interests in the resettlement issues and compensation policies, compensation entitlements, and rehabilitation plan. The location of the new resettlement site was discussed.

(4) In order to strengthen the project awareness and outreach, PMO, IA and DI conducted questionnaire surveys of the APs in December 2016 and January

2017. The survey covered all the households of the resident committee to be affected by land acquisition and residential structure; and the result is reliable and reflects the preferences of the APs.

(5) Consultation workshops on environment and resettlement in February, 2017.

63. The results of the consultation indicate that in general, the APs require timely completion of the road construction and construction of resettlement houses, fair and reasonable cash compensation, and the payment should be paid timely. In comparison with house demolition, the APs consider that they are less concern on the loss of their land and think that farming is not a preferable option for them. Agricultural production would be affected by bad weather, which leads to the income to instability. As they live close to the urban area, they are not willing to engage in agricultural production any more but hope to working in the enterprise or get partly cash compensation from the loss of their land to rehabilitate their livelihood and income, including development of businesses or through some training program to improve people’s skills, purchase of vehicles and machinery equipment to take part in the construction of the economic zone, purchase of social insurances, going out for work as migrant labors, engaged in services business in the Xincheng District, and putting compensation fund into bank for interests. The APs will use cash compensation to purchase houses in the resettlement site. They want to use compensation payment to implement the livelihood and income rehabilitation measures, such as: i) purchase of social insurance; ii) development of self-employed tertiary businesses (i.e. vehicles and machinery equipment rental, clothing, grocery, transportation, cargo, community service, repair, hairdressing salon, beauty salon, dry-cleaning house, entertainment, catering and hotel services, and tourism); and iii) investment in their children’s education. They expect to seek employment in other institutions, enterprises and businesses through training. The APs are satisfied with the compensation rate, and resettlement and rehabilitation measures. However, they also expressed their concerns on fair compensation and timely disbursement of compensation payment.

4.4 Women’s Participation

64. Women in the Project area enjoy equal rights with men and they are playing an important role in project planning, design and implementation. During the field survey, about 40% of women have participated in the survey on land acquisition, structure demolishment and inventory indexes. Meanwhile, the local government organized the resettlement consultation meeting (at least 40% participants are women) and some representatives of Qinzhou City Women’s Federation were asked to participate in consultation meetings to fully solicit opinion of local women. The major concerns for women are fair compensation standards and timely compensation payment. They would like to get necessary assistance from the local government during the land acquisition and resettlement process as well as provision of preferential policies.

4.5 Information Disclosure

4.5.1 Resettlement Information Brochure

65. In order to help the APs gain a good understanding of the land acquisition and resettlement policies and their entitled rights, the IA, Guangxi Qinzhou Linhai Industry Investment Co., Ltd. has prepared a resettlement information brochure (RIB) and a copy of RIB will be distributed to each AP before 10 July 2017. Please refer to Appendix 1 for the RIB. The main components of the brochure include: (1) general description (including purpose and location) of the Project and the socioeconomic benefits; (2) project impacts; (3)

laws, regulations and policies of land acquisition and resettlement; (4) basic rights and entitlements of the APs; (5) compensation rates; (6) resettlement and income restoration plan and grievance procedure; and (7) implementation schedule. The affected persons agreed with the compensation rates and the rehabilitation measures proposed. What they expect is to acquire their land as early as possible as they want to get cash compensation for service business development. They will sign their agreement on the entitlements. The disclosure procedure can increase the transparency during the resettlement implementation. At the same time, it will advise the APs how they can raise their requests and appeal through various channels (including the RC, PMO, IA and RO, QLRB, QHDAO, LRB and HDAO of the Qinzhou Port Economic Development Zone, and court) and various methods (i.e. by visiting, writing letter or telephone).

4.5.2 Distribution of the Resettlement Plan

66. The draft resettlement plan will be distributed to the affected RC in July 2017. The RP to be approved by QMG will be distributed to resident committee by 10 July 2017 to anyone wishing to consult the document in the affected Jingu RC and Jiduntou RC. Copies of the RP will be kept in the Project office and affected RC. At the same time, the RP will be posted on the ADB’s website. The RP will be updated based on the detailed measurement survey (DMS) at the 3rd week of July 2017 and will be disclosed to the APs and submitted to ADB for review and approval prior to start of land acquisition and resettlement activities and approval of civil works contract awards. After ADB approval, the updated RP will also be posted on ADB’s website for disclosure.

4.6 Public Participation Plan during RP Implementation

67. In order to address the problems and needs of the APs properly and timely regarding land acquisition and resettlement, further consultations with the APs will continue so that all issues may be addressed prior to the start of construction and the implementation of the RP. Meetings will be arranged by the implementation agencies for land acquisition and resettlement, as appropriate. Each affected household will have the opportunity to negotiate the compensation contract, which they will sign with the RO. Table 4-1 provides the public consultation plan and process, and Table 4-2 the outcome of the consultation process.

Table 4-1: Public Consultation Plan and Process Purpose of Event Form of Event Timing Implementing Agencies Target Participants Remarks 1. Provide briefings to APs Community Nov 2016 - PMO, IA, DI, Port District All APs affected by Meetings held with APs in the RC on Project & RP. Solicit meetings and focus Feb 2017 Government, and RC LAR of the Project comments from APs. group discussion (105 persons, including 56 males and 49 females) 2. Disclosure of RIB Public &community Mar 2017 PMO, IA, Port District All APs affected by Distribution of RIB to all APs to meetings and focus Government, QLRB, LAR of the Project discuss concerns and suggestions group discussions QHDAO, and RC on LAR programmes (98 persons, including 56 males Undertook discussions with various and 42 females) focus groups to solicit comments & suggestions 3. Conduct Final Detailed Site investigations Feb 2017 PMO, IA, DI, Port District All APs affected by Inventory survey of all assets and Measurement Survey and household Government, QLRB, LAR of the Project land holdings (DMS) interviews (94 QHDAO, and RC households to be Collection of socioeconomic data affected by land acquisition nd house demolition) 4. Present Draft Final RP to Public &community Mar 2017 PMO, IA, Port District All APs affected by Distribution of the draft RP to APs to APs meetings and focus Government, and RC LAR of the Project discuss concerns & gaps relating to group discussion LAR programs (128 persons, including 71 males Undertake discussions with various and 57 females) focus groups to solicit comments & suggestions 5. Prepare and Disclose Public &community Jul 2017 PMO, IA, and Port District Stakeholders, Meetings to be held with beneficiary Detailed Design and meetings and focus Government, and RC beneficiaries, and APs population, and with APs Updated RP to APs Prior to group discussion Submission to ADB for (over 40% females) Approval 6. Advise APs of Public meetings Jun 2017 PMO, IA, and RO All APs affected by Household meetings to outline Entitlements and Dates of and focus group LAR of the Project entitlements Disbursement discussion (over 40% females)

Purpose of Event Form of Event Timing Implementing Agencies Target Participants Remarks 7. Monitoring of APs, Household Jun 2017 – PMO, IA, Port District Random samples Provide recommendations and beneficiaries interviews (over Jun 2019 Government, QLRB, update RP 40% females) QHDAO, RC, and independent monitoring Monitoring plan agency Note: QHDAO= Qinzhou House Demolishment Administration Office; QLRB= Qinzhou Land Resources Bureau; RO = Resettlement Office; RC = Resident Committee.

Table 4-2: Outcome of the Public Consultation Process Key Issues Location Time Means No. of Participants Discussed Raised by the APs Jingu RC and Dec. 2016 Resettlement 95 Project description, LAR impacts, and Highly support the Project Jiduntou RC and Jan. 2017 survey measures to minimize the LAR construction, scope of LAR impacts. impacts, LAR timing, fair and timely compensation, resettlement within the same RC. Qinzhou Port 5-6 Jan. 2017 Consultation 20 Compensation standards, Agreement with the compensation Economic meeting entitlements, relocation scheme, rates and rehabilitation measures, Development Zone income rehabilitation measures. assistance by the local government Administration Office for the tertiary industry development, priority given to the APs for employment, and provision of training. Jingu RC and 11 Feb. 2017 Focus group 30 Major components of the RP, Timely compensation Jiduntou RC discussion including the LAR impacts, laws, disbursement, assistance of the regulations and compensation, local government for the APs to entitlement, resettlement plan and develop tertiary industry, well livelihood and income restoration established grievance procedures. plan, grievance procedures, schedule, etc. Total 145

68. For smooth and successful implementation of the resettlement plan, the APs will be encouraged to actively participate in various land acquisition and resettlement activities. The Project construction will cause some impacts more or less on local people. In order to ensure the APs could benefit from the Project, local people are encouraged to actively participate in the project construction, and necessary consideration and assistance should be provided to local APs in the use of labors.

V. APPEALS AND GRIEVANCE PROCEDURES

69. APs can propose any complaint related to resettlement issues and compensation. The Project has established a transparent grievance channel in addition to the existing grievance channels of local government. The first step of grievance procedure established for the Project is through resident committee, which is localized grievance mechanism. The legal resolution is the last step proposed for the APs in case that the APs are not satisfied with the decisions made during the whole localized grievance process. APs will be informed of the above grievance and appeal procedure through public information meetings, the resettlement information brochure and other media, so that they can fully understand their rights for grievance and appeal. The resettlement implementation organizations should resolve the grievance for the APs timely. The basic grievance procedures include the following steps.

Stage 1: 70. If any AP is aggrieved by any aspect of the land acquisition and resettlement, he/she can state his/her grievance and appeal to the resident committee in oral or in written form. If an oral appeal is made, the community will record it on paper and process it. Resident committee will make decision on or resolve it in two weeks. The AP will be informed of the result via written notice.

Stage 2: 71. If the aggrieved AP is not satisfied with the decision in Stage 1, he/she can appeal to the district government office after receiving the decision; the district government office will reach a decision in two weeks. The AP will be informed of the result via written notice.

Stage 3: 72. If the aggrieved AP is still not satisfied with the decision of the district government office, he/she will appeal to the Qinzhou Project Management Office (QPMO) or Qinzhou Land Resources Bureau (QLRB) or QHDAO after receiving the decision. The Qinzhou City PMO or QLRB or QHDAO will reach a decision in two weeks. The AP will be informed of the result via written notice.

Stage 4: 73. If the aggrieved AP is still unsatisfied with the decision of the QPMO or QLRB or QHDAO, he/she will appeal to the GZAR LRB or HDAO after receiving the decision. The GZAR LRB or HDAO will reach a decision in two weeks. The AP will be informed of the result via written notice.

Stage 5: 74. If the AP is still dissatisfied with the decision of the GZAR LRB or HDAO, he/she will appeal to the civil division of a people’s court according to the civil procedural law within 2 weeks after receiving the decision from GZAR LRB or HDAO. The AP will be informed of the result via written notice.

75. The resettles can appeal on any aspect related with land acquisition and resettlement, including compensation criteria and payment, etc.

76. An independent agency (IMA) will be hired by the QPMO for the overall resettlement monitoring and evaluation of the Project in Qinzhou City. The IMA will inspect and report on the resettlement processes and the operation of the QPMO and relevant organizations involved in the LAR implementation at different levels and correct any errors made during the resettlement process.

VI. LEGAL FRAMEWORK AND POLICIES

6.1 Applicable LAR Laws, Regulations and Policies

77. The PRC has established and implemented laws, regulations, and policies on resettlement and compensation for many infrastructure projects. This Project will follow the related Chinese laws, national and GZAR regulations and local bylaws and policies, and also include comments and suggestions from APs, and meanwhile meet the requirements of ADB’s Safeguard Policy Statement (2009). The primary objective of the land acquisition and resettlement (LAR) program is to ensure that the APs will improve their standards of living, or at least will not be made worse off because of the Project.

78. The land acquisition, demolition and resettlement of this Project will be complying with the laws and regulations of PRC, local government and ADB:

 Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration in October, 2004;  Land Administration Law of the PRC, amended in 2004;  Implementation Regulation for Land Administration Law of PRC; December 1998;  Notification on Adjusting Newly Added Construction Land Use Fee Collection issued by Ministry of Finance and Ministry of Land Resources [Caizong [2002] 93];  Temporary Regulations on Farmland Acquisition Tax of PRC, 2008;  GZAR “Land Administration Law”, 2001;  Management Law of Urban Real Estate of PRC, 1994;  Guidelines for Valuation on Urban House Demolishment of PRC; 2004;  Urban Housing Demolition Management Regulations of the PRC issued in 2001;  Urban Housing Demolition Management Regulations of the PRC (2001, State Council Decision Decree 305);  Temporary Regulations of Farmland Acquisition Tax, 2008;  Guangxi Zhuang Autonomous Region Guidelines for Implementation of the Urban House Demolition Management Regulation of the PRC, 2003;  Decree 15 of Guangxi Zhuang Autonomous Region People’s Government: Implementation Methods for Regulations on Village and Town Planning and Construction in Guangxi Zhuang Autonomous Region;  Notification on Announcement for Average Production Value for Land Acquired and Demolishment Compensation Standards for the Construction Land Use of GZAR Basic Infrastructures and Important Projects [Guifagaifagui (2009) 52];  Implementation Methods of GZAR Farmland Occupation Tax [Guizhengfa (1987) 88 Hao 59];  A New Round of Unified Standard of Annual Output Value Document [Qinzhengfa (2013) No.6];  Notice of the Qinzhou Municipal People's Government Office Issued Interim Measures on Qinzhou Collective Land Expropriation Compensation and Resettlement Construction Management (Qin, 2012 No. 217);  Study on Land Expropriation and Requisition, Housing Demolition and Young Crops and Ground Attachments Compensation Standard (Qingangguanyue2014 No. 14);  Approved Land Acquisition Compensation Standard of Qinzhou Xincheng Road Network (Qingangguanyue2015 No. 78);  Interim Provisions of Famers' Demolition Reconstruction Land Related Issues for Full Acquisition Team (Qingangguanfa [1998] No. 62);  ADB's Involuntary Resettlement, Manila, 1995;

 Handbook on Resettlement: A Guide to Good Practice, ADB Manila, 1998;  Gender Checklist: Involuntary Resettlement, ADB Manila, February 2003;  OM Section F2 — Operations Manual: Bank Policies (BP) and Operational Procedures (OP), ADB, Manila, 2006; and,  ADB’s Safeguard Policy Statement, Bank Policy Operating Handbook OM F1 (January 20, 2010).

6.2 ADB’s Involuntary Resettlement Policies

79. ADB’s Safeguard Policy Statement (2009) and Resettlement Operations Manual (OM Section F1) have already specified the 3 important elements of the involuntary resettlement: (i) compensation to replace lost assets, livelihood, and income; (ii) assistance for relocation, including provision of relocation sites with appropriate facilities and services; and (iii) assistance for rehabilitation to achieve at least the same level of well-being with the Project as without it. Some or all of these elements may be present in a project involving involuntary resettlement. For any ADB operation requiring involuntary resettlement, resettlement planning is an integral part of project design, to be dealt with from the earliest stages of the Project cycle, taking into account the following basic principles:

i) Screen the project early on to identify past, present, and future involuntary resettlement impacts and risks. Determine the scope of resettlement planning through a survey and/or census of displaced persons, including gender analysis, specifically related to resettlement impacts and risks. ii) Carry out meaningful consultations with affected persons, host communities, and concerned nongovernment organizations. Inform all displaced persons of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs. Pay particular attention to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensure their participation in consultations. Establish a grievance redress mechanism to receive and facilitate resolution of the affected persons’ concerns. Support the social and cultural institutions of displaced persons and their host population. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase. iii) Improve, or at least restore, the livelihoods of all displaced persons through (i) land-based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible. iv) Provide physically and economically displaced persons with needed assistance, including the following: (i) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required. v) Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards. In rural

areas provide them with legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing. vi) Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status. vii) Ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of non-land assets. viii) Prepare a resettlement plan elaborating on displaced persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. ix) Disclose a draft resettlement plan, including documentation of the consultation process in a timely manner, before project appraisal, in an accessible place and a form and language(s) understandable to affected persons and other stakeholders. Disclose the final resettlement plan and its updates to affected persons and other stakeholders. x) Conceive and execute involuntary resettlement as part of a development project or program. Include the full costs of resettlement in the presentation of project’s costs and benefits. For a project with significant involuntary resettlement impacts, consider implementing the involuntary resettlement component of the projects a stand-alone operation. xi) Pay compensation and provide other resettlement entitlements before physical or economic displacement. Implement the resettlement plan under close supervision throughout project implementation. xii) Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and whether the objectives of the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports.

6.3 Related Laws and Regulation of PRC

80. This Project can be implemented based on the PRC Land Administration Law (effective as of 1 January 1999 and amended in 2004), Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration issued by State Council, October 2004, Urban Housing Demolition Management Regulations of the PRC issued in 2001, and Management Law of Urban Real Estate of PRC (effective as of July 5, 1994) as well as the other relevant laws and regulations.

6.3.1 Document 28: State Council Decision to Deepen Reform and Strictly Enforce Land Administration, issued by State Council, October 2004

81. Article 12: Improving land acquisition compensation practice. People’s Governments at the county level and above shall adopt practical measures to ensure that the farmers whose land is acquired shall not be made worse off. It should be ensured that land compensation fees, resettlement subsidies and compensation for ground attachments and standing crops shall be provided in accordance to applicable laws and regulation in full and in time. If the land compensation fees and resettlement subsidies as stipulated by law still cannot be able to maintain the original standards of the land-losing farmers and are not adequate to cover the social insurance costs of the landless farmers, the provincial government shall approve an increase in the resettlement subsidies. If the sum of the land compensation fees and resettlement subsidies has reached the legal upper limit but still

cannot maintain the original living standards of the farmers, the local government can provide additional subsidies with the use of revenues from the sales for the use of state land. The provincial government shall formulate and publicize the standard annual output or regional land prices for land acquisition in the cities and counties under the provincial jurisdiction. Land acquisition compensation shall be kept identical for identical quality of land in same locality. The full costs of land acquisition for national key development projects shall be included in the overall project budget.

82. Article 13: Properly resettling farmers whose land is acquired. People’s Governments at the county level and above shall formulate concrete measures to guarantee the long-term livelihood of the farmers whose land is taken. The farmers shall be given stocks for land-taking projects that have stable revenues. In a prescribed urban zone, the local government shall place the farmers who are made landless because of land acquisition in the urban employment system, and set up a social insurance system for them. If the acquisition of collective land takes place outside the prescribed urban area, the local government shall set aside essential farmland within the administrative area or assign suitable jobs. Resettlement in distant areas should be considered for farmers who can no longer have adequate land to continue farming. The labor and social insurance departments shall cooperate with other relevant departments to provide guidance on the establishment of employment training and social insurance program for land-losing farmers.

6.3.2 PRC Land Administration Law

83. The Land Administration Law of the PRC was passed at the 16th session of the Sixth Standing Committee Meeting of the National People’s Congress on June 25, 1986. It was subsequently amended at the Fourth Session of the Ninth Standing Committee Meeting of the National People’s Congress. The newly amended law was brought into force on January 1, 1999, according to the Decision on the Amendment to the Land Administration Law of the PRC that was adopted at the Fifth Session of the Seventh Standing Committee Meeting of the National People’s Congress.

84. Article 47: Land acquired shall be compensated for on the basis of its original purpose of use.

85. Compensation for acquired cultivated land shall include compensation for land, resettlement subsidies and attachments and young crops on the acquired land. Compensation for acquisition of cultivated land shall be six (6) to ten (10) times the AAOV of the acquired land for three years preceding such acquisition. Resettlement subsidies for acquisition of cultivated land shall be calculated according to the agricultural population to be resettled. The agricultural population to be resettled shall be calculated by dividing the amount of acquired cultivated land by the average amount of the original cultivated land per person for the unit of the land is acquired. The standard resettlement subsidies to be divided among members of the agricultural population needing resettlement shall be four (4) to six (6) times the AAOV of the acquired cultivated land for three years preceding such acquisition. However, the highest resettlement subsidies for each hectare of the acquired cultivated land shall not exceed fifteen times its AAOV for the three years preceding such acquisition.

86. Standards of land compensation and resettlement subsidies for acquisition of other types of land shall be prescribed by provinces, autonomous regions and municipalities directly under the Central Government with reference to the standards of compensation and resettlement subsidies for acquisition of cultivated land.

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

88. For acquisition of vegetable plots in city suburbs, the land users shall pay towards a development and construction fund for new vegetable plots in accordance with the relevant regulations of the State.

89. If land ccompensation and resettlement subsidies paid in accordance with the provisions of the second paragraph of this Article are still insufficient to help the farmers 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 subsidies shall not exceed 30 times the AAOV of the acquired land for the three years preceding such acquisition.

6.3.3 Urban House Demolition Management Regulation of PRC

90. Article 6: The demolition unit cannot demolish house/building until obtaining the demolition certificate.

91. Article 22: The demolition unit should give the tenants compensation according to these regulations. There is no compensation for demolishing illegal building and temporary buildings that exceed the approved period2.

92. Article 23: Resettlement compensation can be paid out in cash, or by exchange of property rights. The resettlers can choose between the two compensation options – cash compensation or house exchange.

93. Article 24: The amount of compensation shall be determined on the basis of the assessment of the real estate market, in reference to the location, purpose of use, construction area and other factors.

94. Article 31: The acquiring unit shall pay a resettlement allowance to the owner of the building or its tenants. During the transition period, if the owner or tenants arrange living places by themselves, the acquiring unit should pay them an allowance for their temporary transition. If the owner and tenants use temporary accommodation provided by the acquiring unit, no temporary transition allowance is necessary.

95. The standard of the resettlement allowance and temporary settlement allowance will be regulated by the people’s government.

96. If the demolition extends the transition period for which the acquiring unit is accountable, the acquiring unit shall increase the allowance to the owner or tenants by the months delayed. For those who use the transition building, the acquiring unit shall give a temporary settlement allowance by the months delayed.

97. Article 32: The house demolition agency is not allowed to extend the transitional period at their choice. The user of transitional house shall vacate on time. If the house demotion agency extends the transitional period due to their reasons, temporary resettlement subsidy should be added and paid to the resettlers or house tenants from the first date started the extension; for the users of transitional house, the temporary resettlement subsidy should be paid to the persons from the first date started the extension.

98. Article 33: The acquiring unit shall compensate for production stoppage and business disturbance to any non-residential building.

2 It means beyond the expiry date certification.

6.3.4 Implementation Method of Guangxi Zhuang Autonomous Region for Land Administration Law

99. Article 7: The ownership of the state-owned and rural collective-owned land shall be determined by the Land Administration Law, the implementation regulation of the Land Administration Law and other laws and statutes.

100. Article 8: The rural collective-owned land is legally owned by the farmer's collectives and managed and administrated by the village collective economic bodies. If the village collective economic body is not complete, the villager committee shall manage and administrate the land. If the land in a village is owned by more than two rural collective economic bodies, each of the bodies or village group shall manage and administrate the land. If the land is owned by town or township, the rural collective economic bodies of the town or township shall manage and administrate the land. If the rural collective economic body of the town or township is not complete, the town or township government shall manage and administrate the land.

101. Article 21: Preparation of the yearly schedule of land use shall follow the following principle.

(I) strictly follow the overall land use plan and dominate the gross land size used for construction and protect the cultivated land. (II) Guide the land demand by land supply, and rationally and effectively utilize the land. (Ill) Preference of use of land shall be given to the key capital construction projects, and the projects supported by the state industrial policies of the region and state. (IV) Protect and improve the ecological environment and the sustainable use of the land resources.

102. Article 26: The followings shall abide by in reclaiming new cultivated land in same size and quality of the cultivated land requisitioned for non-agricultural construction. (I) Within the land boundary for urban construction defined in the overall land use plan, the local city, county government shall be responsible for organizing reclamation for implementation of the planned urban construction; (II) Within the land boundary for construction of village or town facilities defined in the overall land use plan, the town or township government shall be responsible for organizing the rural collective economic bodies or the land occupying organization to reclamation for implementation of the planned construction of village or town facilities; and (IlI) For the cultivated land occupation for construction of power generating, transportation, water conservancy, mining and military facilities beyond the land boundary for urban and rural construction defined in the overall land use plan, the land occupation organization shall be responsible for reclamation of new cultivated land.

103. Article 27: For the cultivated land occupied for non-agricultural construction, the organization or individual shall pay the reclamation fee if he has no means for reclamation.

104. Article 34: The land use organization and individual shall restore the destroyed land due to excavation, collapse and occupation during production and construction according to the State's and Regional stipulations concerning reclamation of land, and in 30 days of completing such reclamation, applies to the land administrative department of local municipality, county (city) government for inspection and acceptance. In case the land use organization or individual who has not means to conduct reclamation or whose such reclamation is not in compliance to the requirement in acceptance, he shall pay to the land administrative department of local municipality, county (city) government the land reclamation fee at a rate of CNY 20-80 per square meter. The said land administrative department shall organize the land reclamation.

105. Article 45: Each rural villager's household shall have only one piece of house plot. Construction of villager's residence shall be in compliance to the overall land use plan of the town/township, and shall be in combination of the reconstruction of the old village and take full advantages of the old house plot, idle land and waste land on hills within the village. Occupation of farmland shall be strictly limited. The area of approved new house plots shall observe the following criteria: (1) size of house plot in plain and suburban areas shall not exceed 100 square meters for each household; and (2) size of house plot in uplands and hilly areas shall not exceed 150 square meters for each household.

6.3.5 Guangxi Zhuang Autonomous Region Guidelines for Implementation of the Urban House Demolition Management Regulation of the PRC

106. Article 9: When the house demolition administration department issues a house demolition permit, it shall be within 5 days, publicize all contents specified in the house demolition permit, including the name of the Project, structure dismantler, scope of demolition, and time limit of demolishment, implementation unit of demolishment, etc. The announcement should be made in the form of house demolishment notification.

107. The house demolition administration department and the dismantlers shall properly publicize and explain the relevant matters to the resettles.

108. Article 18: The demolition unit and the affected people shall reach agreement on compensation and resettlement for demolition.

109. For demolition of rental houses, the demolition unit shall reach agreement with the affected people and the tenants on demolition compensation and resettlement.

110. Article 19: Dismantles or house tenants should be compensated by dismantlers based on household house property certificate, rental vouchers of public houses and house rental contracts which are effective after issuance date of house demolition permits.

111. The dismantles and house tenants signing compensation agreements refer to the property owners with house property certificate and tenants with rental vouchers of public houses or house rental agreement.

112. Article 20: The agreement of demolition and resettlement compensation shall contain the following contents:

(i) Construction area of the houses to be demolished; (ii) Amount of cash compensation for demolition; (iii) Methods of compensation and resettlement; (iv) Time limit of relation, approach of temporary transition and time limit of temporary transition; and, (v) Other issues mutually agreed by concerned parties.

113. Article 32: Dismantlers should pay all compensation exclusively for house demolition and relocation purpose and cannot be used for other purposes.

114. House demolition administration department should establish financial regulatory system to enhance financial supervision on the relocation compensation.

115. Article 34: Dismantlers should compensate the dismantles in accordance with of the regulation.

116. Demolition of illegal structures and temporary buildings exceeding approval period should not be compensated. Demolition of temporary buildings within approval period should be compensated. The monetary compensation formula is: monetary compensation = replacement price of temporary structure x remaining period ÷ approved period.

117. Replacement price refers to replacement price on the date of issuance of housing demolition permit.

118. Article 37: Formula for monetary compensation for house demolition is: monetary compensation = unit price of real estate market assessment for demolished house x construction area of house to be dismantled.

119. The unit price in the preceding section refers to the price of construction area per square meter.

120. If real estate market assessment price is lower than the lowest compensation rates, the lowest compensation rate should be applied. Lowest compensation rate refers to the average market unit price of purchased public houses in similar structures and locations. The specific criteria should be determined by city and county governments.

121. Article 38: For decorated houses, except for movable parts and materials, the decoration should be partially compensated. Formula for monetary compensation of house decoration is: monetary compensation of house decoration = replacement price of housing decoration x (standard life duration - actual time used of decoration) ÷ standard life duration.

122. The replacement price of house decoration in the preceding section refers to replacement price of the same grade house decoration on the date of issuance of housing demolition permit. The standard life duration refer to:

(1) 10 years for residential houses; (2) 7 years for office building; and, (3) 5 years for shops, hotels, restaurants and other business premises.

123. The lowest monetary compensation for house decoration cannot be lower than 20% of replacement price of house decoration.

124. Article 39: House Demolition Agency shall entrust the real estate assessment institution to evaluate the value of the houses and to confirm the cash compensation.

125. If the owner of the demolished house has objections to the resettlement and compensation programs, an agreement could be signed between the house demolition agency and the owner of the demolished house to entrust a legal real estate institution to conduct the assessment and evaluation of the house value. Assessment costs should be shared by both parties.

126. If the resettles still have objections on the evaluation result, s/he can appeal to the expert panel of the house demolishment administration office within 15 days from the date receiving the evaluation report. The formation of the evaluation committee, evaluation method and responsibilities for assessment cost could be regulated by the GZAR authority.

127. If the owner of the demolished house has not received the evaluation report within 15 days of application, s/he could use the evaluation result as the evidence for compensation and appeal. For the person who has made application for evaluation, she/he could use the evaluation result as evidence for compensation and appeal.

128. Article 50: Demolition has been implemented without obtaining a house demolition permit, the house demolition administration department, in accordance with the "Article 34” of the regulation, should order a stop of demolition by warning with a penalty of CNY20 to CNY50 per square meter of demolished houses.

6.4 Gaps between ADB and Chinese Policies

129. In comparing the gaps between ADB and PRC policies, Table 6-1 presents that the distinctive differences in the aspects of legal rights or property certificates, and information disclosure and consultation which are lacking in content or in time delays.

Table 6-1: Gaps between ADB and PRC Policies PRC Laws and Regulation ADB SPS 2009 Gaps, if any Gap Filling Strategy The People’s Governments at the Improve, or at least restore, the There are no gaps, however the The local Government and IA have county level and above should livelihoods of all displaced persons standards and regulations for the complied with ADB’s SPS policy to ensure that land compensation fees, through (i) land-based resettlement PRC laws and regulation related to draw the participation of the APs and resettlement subsidies and strategies when affected livelihoods resettlement compensation is relevant stakeholders in the Project compensation for ground are land based where possible or top-down decision making process, design and the RP preparation attachments and standing crops shall cash compensation at replacement while ADB emphasizes compensation phase, including the determination be provided in accordance to value for land when the loss of land should be based on public and negotiation of compensation applicable laws and regulation in full does not undermine livelihoods, (ii) consultation which is standards as well as formation of and in time. If the land compensation prompt replacement of assets with community-based (bottom-up) income and livelihood rehabilitation fees and resettlement subsidies as access to assets of equal or higher decision making process. program. The local Government and stipulated by law still cannot be able value, (iii) prompt compensation at full IA will comply with the transparent, to maintain the original standards of replacement cost for assets that consistent and equitable procedures the land-losing farmers and are not cannot be restored, and (iv) additional during the LAR implementation adequate to cover the social revenues and services through phase. insurance costs of the landless benefit sharing schemes where farmers, the provincial government possible. shall approve an increase in the resettlement subsidies. If the sum of the land compensation fees and resettlement subsidies has reached the legal upper limit but still cannot maintain the original living standards of the farmers, the local government can provide additional subsidies with the use of revenues from the sales for the use of state land.

PRC laws and regulations clearly ADB's SPS policy requires ensuring According to the existing Chinese For the Project, the local Government stipulate that there is no that displaced persons without titles laws and regulations, no and IA will protect and compensate all compensation for demolishing illegal to land or any recognizable legal compensation will be paid to the affected people regardless of whether building and temporary buildings that rights to land are eligible for expropriation of violated, illegal they have property certificates, exceed the approved period, which resettlement assistance and buildings and the land without housing tenure, land use rights or means beyond the expiry date compensation for loss of non-land property certificate. However, lease rights in according to ADB’s

certification. assets. In rural areas provide them according to ADB’s SPS policy, these policy. However, any recognized with legal and affordable access to APs are eligible for resettlement illegally land developed or temporary land and resources, and in urban assistance and compensation for loss buildings constructed after the cut-off areas provide them with appropriate of non-land assets and rehabilitation date cannot be compensated. income sources and legal and measures. affordable access to adequate housing. No provision of laws and regulations ADB policy requires paying particular Chinese laws and regulations require The issues of vulnerable groups and for the vulnerable groups. attention to the needs of vulnerable giving all APs the same treatment gender equity have been groups, especially those below the without special consideration to incorporated in the LAR planning by poverty line, the landless, the elderly, vulnerable groups. ADB’s SPS policy the local Government and IA. It will women and children, and Indigenous requires particular attention should be be continuously integrated in LAR Peoples, and those without legal title paid to the needs of vulnerable implementation through the provision to land, and ensuring their groups, including women. of a preferential policy to vulnerable participation in consultations. groups in such things as compensation, MLG, employment, training without charge, provision of social safeguard program, provision of micro-credit by the local credit union or local banks with assistance of the local Government, and assistance in selection and allocation of new house and relocation. Consultation service is provided in According to the requirement of ADB In the Land Administration Law of To meet the requirements of public the Land Administration Law of PRC. for the RP preparation, the APs PRC, it provides the consultation consultation and transparency, the should be fully informed and closely service, but no concrete and specific local Government and IA have consulted through meaningful clauses and procedures are provided. complied with ADB’s policy to consultations with affected persons, During actual practice, usually there conduct extensive consultations with host communities, and concerned is no consultation and no information the APs and various stakeholders, non-government organizations; disclosure until the approval of RP and inform them the impacts, informing all displaced persons of due to the facts that formal land compensation, entitlements and their entitlements and resettlement acquisition and location are not resettlement schemes, grievance options; and ensuring their finalized during the RP preparation procedures and so on during the LAR participation in planning, stage and the land user is unwilling to planning phase. The local implementation, and monitoring and inform the APs. However, according Government and IA will continuously evaluation of resettlement programs. to ADB’s SPS policy, it requires that ensure the participation of the APs in the APs should be fully informed and the LAR implementation phase. closely consulted through meaningful consultations with affected persons,

host communities, and concerned non-government organizations; informing all displaced persons of their entitlements and resettlement options; and ensuring their participation in planning, implementation, and monitoring and evaluation of resettlement programs.

6.5 Compensation Criteria and Principles

6.5.1 Entitlement

130. The Project affected persons (APs)/displaced persons are those who are physically displaced (relocation, loss of residential land, or loss of shelter) and/or economically displaced (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected area. All landowners and users and occupants of structures in the Project areas affected by land acquisition and relocation as a consequence of the Project will be eligible for fair compensation and rehabilitation according to the types of losses and quantities as well as the cut-off date determined by Qinzhou Municipal Government. The cut-off date for the compensation will be announced to all APs immediately afterward, within the completion date of the construction map and investigation; any newly cultivated land, or planting of crops or trees, or structures built after the cut-off date determined by the local government will not be compensated.

6.5.2 Compensation Principles

131. The principle of the compensation and entitlements established for the Project are to: Improve, or at least restore, the livelihoods of all displaced persons through (i) Carry out meaningful consultations with affected persons, host communities, and concerned nongovernment organizations. Inform all displaced persons of their entitlements and resettlement options. Ensure their participation in planning, implementation, and monitoring and evaluation of resettlement programs. Pay particular attention to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples, and those without legal title to land, and ensure their participation in consultations. Establish a grievance redress mechanism to receive and facilitate resolution of the affected persons’ concerns. Support the social and cultural institutions of displaced persons and their host population. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase, (ii) Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards. In rural areas provide them with legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing., (iii) Pay compensation and provide other resettlement entitlements before physical or economic displacement. Implement the resettlement plan under close supervision throughout project implementation, and (iv) Monitor and assess resettlement outcomes, their impacts on the standards of living of displaced persons, and whether the objectives of the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Disclose monitoring reports.

6.5.3 Compensation Rate

6.5.3.1 Permanent Land Acquisition

132. According to the latest round of Unified Standard of Annual Output Value Document issued by the People's Government of Qinzhou [Qinzhengfa (2013) No.6], the compensation standards are 20 times of multiplier for land compensation, resettlement subsidy and standing crops and all of them will be paid to the affected households. The compensation rate for collective land (calculated based on 20 times of multiplier) is equivalent to the replacement value and also acceptable to the affected households. The compensation rates are consistent with the Guangxi Regional Government Decree in 2009 (see Table 6-2a and Table 6-2b). As the APs do not want to engage in agricultural farming any more, thus, they are willing to give their land for the Project construction and get cash compensation to be used for the

development of tertiary industry.

Table 6-2a: Compensation Rate of Collective Land Unit: CNY/mu Items Unit Unit Price (CNY) Paddy land mu 45,400 Slop land mu 40,200 Fish pond mu 39,000 Forest land mu 39,000 House plot land mu 39,000 Note: The compensation rate includes land compensation, resettlement subsidy, standing crops and LA award.

Table 6-2b: Compensation Rate of Collective Land Unit: CNY/mu Compensation Type of Land LA Resettlement Standing Crops LA Award Total Compensation Subsidy Paddy land 35,000 5,000 1,400 4,000 45,400 Slope land 30,000 5,000 1,200 4,000 40,200 Compensate Fish pond 35,000 0 according to 4,000 39,000 actual crops Compensate Forest land 30,000 5,000 according to 4,000 39,000 actual crops House plot land 35,000 0 4,000 39,000

6.5.3.2 Demolishment of Residential Structures

133. For the lost residential house structures, the compensation rates are presented in Table 6-4. All the compensation rates for the structures will be based on replacement value and will be determined based on the Evaluation Center’s response based on the evaluation by the qualified real estate evaluation company. The compensation for residential houses will be paid to the APs. Relocation allowance will be provided to the APs at CNY 500, the temporary transit allowance will be provided to the APs at CNY 200 or 20 m2/person per month (or CNY400/person per month without provision of transitional houses) for a maximum of 12 months. The compensation for lost of working days due to relocation is CNY 500 per household. House plot land resettlement: according to the population, each household will have one (1) house plot land, 20 m2/person, maximum 80 m2, exceeding the population, free of charge to arrange 40 m2 apartment. If the affected households sign the agreement on time, each household will receive CNY 500 to CNY 5,000 as timely agreement signing award. As the APs will not move until their new houses are built, and the relocation will only take about 2 or 3 days, thus, the relocation allowance will be sufficient.

Table 6-4a: Compensation Rates of Residential House Demolition Unit Compensation Standard (CNY) Private Residential Structure Brick-Concrete m2 1,250 Brick-Wood m2 850 Simple Shed m2 500 Note: According to the "Notice of the Qinzhou Municipal People's Government Office Issued Interim Measures on Qinzhou Collective Land Expropriation Compensation and Resettlement Construction Management [Qinzhengban (2012) No. 217]", the compensation standard of the house including the main structures and decoration prices. This table includes the standard price of estimated compensation.

Table 6-4b: Calculation of Guiding Replacement Prices Standards for Demolished Residential Houses on Collective Land Compensation Standard (CNY/m2) No. House Structure Main Structures Decoration Price 1 Brick-Concrete 815 200—600 2 Brick-Wood 600 200—600

6.5.3.3 Demolition of Infrastructure and Special Facilities

134. All affected infrastructures and special facilities will be compensated at the replacement values. Table 6-5 provides compensation for infrastructures and special facilities.

Table 6-5: Compensation of Infrastructures and Special Facilities Item Units Compensation Standard (CNY) Cement concrete rods No. 950 Communication optical cable m. 80 Overhead communication optical cable m. 50 High-voltage electricity power line m. 1,850 Low-voltage electricity power line m. 2,650 Transformer No. 3,500 Street light No. 315

6.5.3.4 Special Policy for Vulnerable Group

135. The needs and interests of vulnerable groups, special attention will be given to them, particularly the potential difficulties faced by vulnerable people in affected areas in resettlement planning and implementation. The PMO and IA will supervise implementation to ensure these vulnerable persons receive adequate compensation, house selection, social security plan, special fund and MLG. Assistances on training with free charge, employment, and micro-credit will be provided to them by the QMG, PMO and IA to restore their living conditions and incomes. During resettlement phase, the women-headed households and disabled and elderly people will be given priority to choose the house, floor and type of houses, and the QMG and IA will also provide assistance on the relocation.

VII. ENTITLEMENT MATRIX

136. From the results of inventory surveys, the major impacts of LAR have been identified based on the nature of losses, and an Entitlement Matrix has been prepared as a guide to compensation payments. The cut-off date will be determined by QMG in collaboration with relevant organizations involved, including PMO, IA, QLRB, QHDAO, and district government. Illegal land-use, construction of temporary structures will not be compensated after the notification of cut-off date. QMG, IA, QLRB and QHDAO could take photos/video of the places on the cut-off date to prevent further influx beyond the cut-off date. QMG will publicize the cut-off date on newspaper of “Qinzhou Daily” and village bulletin board once the date is decided. The cut-off date will usually be upon the completion of DMS. The compensation will be made in the forms of “cash” for land loss, and “cash” for structure compensation for the relocated families to purchase new houses at resettlement site, or in the forms of "homestead + cash" compensation. The relocated households will get relocation allowance and temporary transit allowance, and the compensation will be in cash. Table 7-1 presents the entitlement matrix. As no farmland will be re-allocated, the compensation for the collective land loss will be paid to the affected households directly.

Table 7-1: Entitlement Matrix Agency Type of Losses Level of Impact Entitled Persons Compensation Policy & Standards Responsible Permanent land Collective Land Provide "cash" compensation to The compensation rate for land loss to PMO,GQLIICL, acquisition The project will permanently all APs. affected people: CNY 45,400 / mu for paddy QLRB, RC and (94 rural acquire a total of 140.7331 mu of land, CNY 40,200 / mu for slop land, CNY RO households and collective land (including 17.872 Land compensation for 32,000 / mu for vegetable land , and 317 rural mu of paddy land, 96.7193 mu of permanent land acquisition will CNY39,000 / mu for forest land. The population) slope land, and 26.1418 mu of be paid to each affected family. compensation rate includes the basic price forest land). of land compensation, resettlement subsidy, young crop fee, and land acquisition reward. Residential Total demolition area is 8,263.25 All APs will be provided with Compensation for the affected structures at PMO,GQLIICL, buildings (52 rural m2 of private houses (including "house plot + cash" centralized full replacement costs of materials and QLRB, QHDAO, households or 231 4,618.86 m2 brick-concrete and planned resettlement. labors with no deduction for depreciation or Qinzhou Port rural population) structure, 1,109.98 m2 tile-wood salvageable materials. District structure, and 2,534.41 m2 simple The cut-off date will be Government, shed) determined by QMG in The compensation standards for structures and RC and RO collaboration with relevant are: CNY 1,250/m2 for brick-concrete, CNY organizations involved, 850/m2 for tile-wood structure, and CNY including PMO, IA, QLRB, 500/m2 for simple shed. The relocation QHDAO, and district subsidy will be provided to the affected government. Illegal land-use, people at CNY 500 per person, temporary construction of temporary transitional allowance at CNY 200/person structures will not be per month or 20 m2/person for free transition compensated after the house (or CNY 400/person for transitional notification of cut-off date. subsidies without provision of transitional QMG, IA, QLRB and QHDAO house) for a maximum of 12 months. The could take photos/video of the compensation for lost of working days due to places on the cut-off date to relocation is CNY 500 per household. House prevent further influx beyond plot land: according to the population, a the cut-off date. QMG will house plot land for each household, 20 publicize the cut-off date on m2/person, maximum 80 m2, exceeding the newspaper of “Qinzhou Daily” population, free of charge to arrange 40 m2 and community bulletin board apartment. If the affected households sign once the date is decided. the agreement on time, each household will receive CNY 2,500 to CNY 5,000 for timely Relocation allowance and agreement signing award. temporary transit allowance in

cash will be provided to the APs Infrastructures and Basic Infrastructures and Special All affected owners will receive Cash compensation for owners affected by PMO, GQLIICL, special facilities Facilities: 62 cement concrete, an assessed replacement value infrastructures and special facilities: RC, Qinzhou 4,000 meters communication at equivalent cash CNY950/each for cement concrete, CNY Port District optical cable, 4,000 meters compensation. 80/m for communication optical cable, CNY Government, RC overhead communication optical 50/m for overhead communication optical and RO cable, 4,000 meters high-voltage cable, CNY 1,850/m for high-voltage electricity power line, 4,000 electricity power line, CNY 265/m for meters low-voltage electricity low-voltage electricity power line, CNY power line, 2 transformer, and 3,500/each for transformer, CNY 315/each 104 street light for street light

VIII RESETTLEMENT AND REHABILITATON PLAN

8.1 Objectives and Principles of Resettlement Program

137. The overall objectives of the resettlement program are for the affected people to be offered with livelihood opportunities, for the labor force to be resettled properly, and for the living and production conditions of the APs to be improved or at least not worse-off than before the Project. The basic principles of the resettlement and rehabilitation plan are as follows: i) Compensation should be paid in “cash” for the land loss families, and “cash” to purchase house in centralized resettlement site for relocated families; or "house plot land + cash"; ii) Development resettlement is promoted. The livelihood rehabilitation plan will be based on the provision of: a) various employment and income generation opportunities during the Project construction and operation phases; b) development of self-employed tertiary businesses (i.e. construction machinery equipment rental, clothing, grocery, transportation, cargo, community service, repair, hairdressing salon, beauty salon, dry-cleaning house, entertainment, food catering and hotel services, and tourism); c) provision of technical training to the APs to increase their skills to be employed in other institutions and enterprises; and d) provision of social insurance to the APs; iii) Implement the resettlement program properly, comply with related compensation policies, and ensure that the production and living conditions of the affected people are increased or at least restored; iv) The resettlement plan should be prepared and implemented in accordance with state’s land rehabilitation policy, national economic and social development plans. The needs and interests of state, collectives and individuals should be fully and equally taken into consideration; v) The APs should be consulted for the development of the resettlement plan and for the compensation rates; and vi) Women’s rights and interests should be fully taken into consideration of the Project.

8.2 Compensation and Rehabilitation Resettlement Plan

8.2.1 Resettlement Options and Plan

8.2.1.1 Residential houses

138. The Project will relocate 52 households and 231 persons. A total of 8,263.25 m2 structures will be demolished. To maintain the social network of the APs, to keep their original living and work continuity, the compensation will be provided based on the QMG policies and regulations: "cash + house plot land" compensation for centralized resettlement will be provided to the relocated families, and auxiliaries at replacement value in cash. The APs will be resettled close to their original houses as much as possible.

Table 8-1 provides the summary resettlement choices preferred by the affected households. According to the latest field survey, of the total households, 100% or 52 households would like to choose "cash + house plot" compensation in house plot resettlement community close to No. 1 road Danliao Avenue. The compensation will follow the "Interim Provisions of Famers' Demolition Reconstruction Land Related Issues for Full Acquisition Team (Qingangguanfa [1998] No. 62)".

Table 8-1: Resettlement Choices of the Affected Households Resettlement Choices of the Affected Persons (No.) Cash Compensation Cash + House Plot in Total AHs Purchase of Purchase of Economy Centralized Resettlement Site Commercial Houses Houses Total 52 52 0 0 % 100% 100.00% 0% 0%

139. In order to fully take into account for the wishes and living custom of the affected persons, QMG has preliminarily planned the relocated families to move to the house plot resettlement community close to No. 1 road Danliao Avenue based on the consultation results and APs’ opinion. The resettlement site and houses will be planned in a centralized way.

140. For the relocated households will choose “cash compensation+house plot”. The publicized resettlement plan is as follows: (i) according to the population of each household will get a house plot land placement of 20 m2/each person, and the house plot for each household can’t exceed 80 m2; (ii) according to the above standards, if more than 4 persons for the household, they will get 20 m2 house plot at free of charge for each exceeding person or get equivalent compensation fund at CNY 1,200/m2 for self house construction.

141. For households who have relatively large area of structures to be demolished, based on the above plan, in addition 80 m2 house plot for each household, the exceeding area will be compensated at CNY 1,200/m2. The local government has already built the basic infrastructures of the resettlement site. According to the cost of frame structure in Qinzhou at about CNY 800-1,000/m2, the relocated families will have sufficient fund to re-build equivalent area of houses. After new house is built, they can use it for living or rental property or shops. As a result, all relocated households choose “cash compensation+house plot”. The location is in the house plot resettlement community close to No. 1 road Danliao Avenue, Qinzhou Port Administration and Commercial Center.

8.2.1.1 Resettlement Plan for Households to Be Relocated

142. In order to fully take into account the wishes of the affected persons, QMG has preliminarily planned the resettlement scheme to relocate the families to be affected by residential structure demolishment to the house plot resettlement community close to No. 1 road Danliao Avenue. The centralized resettlement site is surrounded with roads and convenient transportation.

143. The house plot resettlement community is farmers’ reconstruction resettlement housing project Phase II, located next to No. 1 Road Danliao Avenue. The community has planned and constructed 1,204 units of houses. The government is responsible for the unified planning and design, road, electricity, sewage, public facilities, greening facilities for the community with funding from the government. The house plot will be constructed in a centralized way with 4 half layers (The fifth layer will be constructed for only half of the construction area). In order to guarantee the community’s environment, overall appearance and degree of housing construction quality, the house foundation and the first layer houses will be financed and constructed by the government. The construction fund of house foundation will be paid by the government. The first floor will be constructed and decorated in the structure of shops, with equivalent standard level of the apartments, and sale to the relocated households at the cost price. The price is CNY 600/m2, and the rest of the floors will be constructed by the APs themselves or by the contractors. The resettlement community started the construction in 2014, and the main engineering works for the first floor of the 1,204 sets houses have been basically completed.

144. According to the survey, all the households who will move to the house plot resettlement community close to No. 1 Road Danliao Avenue and have chosen the “house plot + cash” compensation method. With more respect paid to the affected people by the local government to keep their original social network as much as possible, the local government agreed house plot resettlement approach. By this way, this can ensure all the APs to have house to live. For example, If the households choose cash resettlement, each household can obtain about CNY 100,000 compensation for homestead loss based on calculation of each household can get one (1) 100 m2 house plot based on the calculation of CNY 650,000/mu for house plot (according to the price of original RP). For those households who choose house plot resettlement, each household can obtain government arranged 80 m2 residential house reconstruction land, with value at over CNY 500,000. As a result, the villagers are more willing to choose the house plot resettlement.

145. The Government has planned four types of houses, including 60 m2 and 80 m2 houses in the resettlement sites, which can accommodate up to 4,500 people, and have 344 house plots for the selection of the APs, and can fully guarantee the selection of the affected people.

146. The affected households can obtain about CNY 105,000 compensation at average for the demolition of ground structures and associated facilities (structure demolition compensation + associated facilities demolition subsidies + relocation award). The house plot foundation will be built by the government in a unified way in accordance with the cost calculation of self-construction at CNY 800 per square meters (including basic decoration cost). According to the calculation of the maximum house area at 100 square meters, CNY 80,000 can build a one layer house. If the bank mortgage, partial compensation, the income of migrant workers and family saving are applied, basically the affected households can build a two layer small house on the homestead.

Qinzhou Municipal Government will be responsible for the measurement of 147.ground -based reference, road construction, water and power supplies of the resettlement site. The resettlement site will be facilitated with better social services and basic infrastructures, such as hospital, financing services, commercial service, public transportation, schools, entertainment, etc.

148. During the resettlement process of the land acquisition and structure demolishment, some incentive measures and preferential policy will be adopted by the Project, such as for the early signing of compensation agreement within 30 days after the publicizing demolishment. A reward will be given to the APs. As for the APs who sign the resettlement and compensation agreement after the publicizing of relocation and have moved out, they will be provided between CNY 2,500 to CNY 5,000 per household as award.

149. For safety reason, the demolition of the structures cannot be carried out by the resettlers themselves. It should be demolished by the qualified house demolishment agency. However, the materials such as doors and windows can be disposed by the households themselves. The APs can sale the salvageable materials to make some money.

150. In addition, relocation allowance of CNY 8/m2, the temporary transit allowance at CNY 8/m2 for a maximum of 12 months will be provided to each affected household. The compensation for the loss of working days due to relocations CNY 500 per household. For their moving, it will take about only one to two days, the productive income loss is about CNY 150, plus transportation rental cost at about CNY200/day. Thus, the relocation allowance is sufficient. The APs will not be moved after the new houses are built, the relocation will only take a couple of days, and thus the temporary transit allowance is adequate. The APs will benefit from the temporary transit allowance provision if they could move into their new

houses timely.

8.2.1.2 Rehabilitation Plan for Affected Households by Land Acquisition

The Project construction will permanently acquire a total of 140.7331 mu of land, and affect 2 resident committees, 94 households or 317 persons. The proportion of land to be acquired account for 0.69% of the RC’s collective land, and 1.45% of collective farmland; and account for 0.52% of the total land area and 0.79% of the total farmland area of affected households. The impact is very small. After land acquisition, the average farmland is still higher than 0.3 mu per capita at average, and the land loss proportion is not higher than 5%. According to the regulation, no pre-reserved living and production land will be planned (industrial and commercial land use). As the affected area is getting urbanized, the local people are not relying on the land for their livelihood with increasing number of people are engaging in service industry, seasonable labor, and in enterprises. After land acquisition, no allocation of land will be made. All compensation for land loss will be directly paid to the APs to be used for livelihood and income rehabilitation. Compensation will be made in accordance with the relevant laws and regulations. In addition, the local government will follow the regulation of “Temporary Method of Social Insurance for the Farmers Whose Land Acquired in Qinzhou City” to solve the future livelihood of the farmers.

151. The overall objective of income rehabilitation plan is to ensure that all APs losing their means of livelihood (in this case their land or working place) to the Project are able to at least maintain their pre-project levels of income and living standards. The income restoration plan applies to all 94 affected families.

152. The household survey indicates that 24.52% of their income comes from agricultural activity and sideline business in Jingu Resident Committee and Jiduntou Resident Committee. The associated income loss of the APs is 0.17% of their total family income or CNY 37.29 per household per year, see Table 8-3 for the income loss analysis. The average annual income of affected area is CNY 21,730/ household. Their income is mainly from seasonal labor, agriculture and sideline business, fixed salary, government subsidy, house rental, business, and others. The APs within the Project area are mainly engaged in tertiary industry, agriculture and sideline business, operating small business. Meanwhile they also do seasonal labor work during the agricultural leisure season. Major labor force with the age between 20-50 account for the majority of the APs and all has above junior school education level.

Table 8-3: Income Loss Analysis of AHs Affected Total Land Annual HH Annual HH Income Land Loss RC Households before LA Income before Income Loss Loss Ratio (%) (No.) (mu) LA (CNY) (CNY) (%) Jingu 31 10,294 0.61 21,640 33.36 0.15 Jiduntou 63 9,866 0.79 21,820 42.26 0.19 Total 94 20,160 0.70 21,730 37.29 0.17 (average)

153. The land loss will not only affect the livelihood of a family, but also their future employment. Of the total 94 affected households and 317 persons to be affected by the permanent land acquisition of the Project, 218 persons are in labor force who need income rehabilitation. According to the result of the surveys and consultation, the APs do not want to engage in agricultural activities any more, and would like QMG provide them with employment and technical training opportunities, and they also would like QMG provide them business support.

154. The following income rehabilitation measures are recommended to be carried out to improve their income: i) providing technical skill training and employment opportunities to the APs, especially for the job requiring large amount of labor forces; ii) development of service industry, such as construction machinery and equipment rental, cloth selling, grocery store, transportation, food catering service, hairdressing salon, dry cleaning, motorcycle transportation service in urban districts, taxi service, cargo, hair salon, dry cleaning, entertainment service, hotel service, tourism business, moving service, house servants, and other businesses; iii) provision of social and medical insurance; iv) providing employment opportunities generated by the construction and operation of the project (urban sanitation worker, enterprise employee and maintain security etc.). The urbanization brings new ideas, notion, and better living environment and job opportunities for the local farmers; hence they can start commercial activities.

155. The land compensation, resettlement subsidy and standing crops will be paid directly to the APs at the total amount of CNY 9.2722 million, with average at CNY 98,640 per household. The APs could use the compensation payment for other tertiary industry development. As a result, the APs will significantly benefit from the land acquisition. According to the survey conducted among the APs, 100% or 218 APs in labor force (including labor force in the shrimp farming) are willing to use the compensation for land loss as seed money to develop the tertiary industries. Women are more suitable for the above-mentioned employment and income generating opportunities. Actually they account for about 42% of the 218 labor force, they will benefit the same from the income rehabilitation program as men. After the affected APs get their compensation payment, they will be engaged in the new businesses in Qinzhou Port Economic Development Zone. During the arrangement of new employment opportunities, QMG pays great attention to the production resettlement of the affected women, especially the establishment of business for “hairdressing salon”, “grocery store”, “food catering service”, “laundry” “transportation”, “handicraft workshop”, “sales of tourism products”, etc. which are very suitable for the employment of women.

156. Based on the socioeconomic survey and discussion/consultation results with the APs, the 94 affected households affected by permanent land acquisition who need livelihood rehabilitation will engage in “construction machinery and equipment rental” (3 households/11 APs), “grocery store” (8 households/34 APs), “food catering service” (10 households/34 APs), “hairdressing salon” (11 households/36 APs), “dry cleaning” (3 households/12 APs), “motorcycle transportation service for urban districts” (38 households/169 APs), “clothing shop” (46 households/204 APs), "taxi service" (18 households/52 APs), “hotel services” (5 households/21 APs), and tourism industry and related services (14 households/44 APs) to rehabilitate the loss of income from agricultural farming. Since the APs will be receiving a sum of land compensation between CNY 80,000 to CNY150,000 per household on an average, the amount is sufficient for them to start a new business. The APs will use the compensation payment to establish their new business which is expected to take about two to six months. The income of the APs to be generated from the new businesses could be stabilized two months after the opening of the businesses. They will use the majority proportion of their compensation payment to invest in their new businesses and the remaining fund will be used for improving their living conditions, deposit into bank for monthly interest, buying social insurance and circulating fund or for education of their children.

157. For the “construction machinery and equipment rental” (including rooter and soil shifter), the initial investment is about CNY 150,000. The average annual rental income could reach to CNY 180,000. With deduction of repair cost ranging from CNY 30,000 to CNY 100,000, it is expected that the net annual income will be CNY 150,000 and CNY 300,000 (equivalent to CNY 12,500 to CNY 25,000 each month). All the APs choose the rehabilitation measures at their preference and the compensation payment will be more than sufficient for them to invest in the scheme.

158. For the “grocery store”, the initial investment for each business establishment is CNY 90,000, of which CNY 30,000 is used for annual space rental cost and CNY 60,000 for purchase of goods. It is expected that the number of customers will be about 150 persons per day and the average expense is CNY 16.0/day. As a result, the annual gross income is CNY 438,000. With deduction of the total annual expenditure of water and electricity bills at CNY 18,000 (equivalent to CNY 1,500/month), employees’ salary at CNY 28,800 (three employees), various business taxes and other costs at CNY 30,000 and investment at CNY 120,000, it is expected that the annual net income is CNY 212,400 (CNY 17,700 per month equivalent). All the APs choose the rehabilitation measures at their preference and the compensation payment will be more than sufficient for them to invest in the scheme.

159. For the “food catering service” (regular fast food and rice noodle house) employment option, the total initial investment is CNY 90,000, of which CNY 60,000 is used for annual space rental cost (if shop owner, the rental cost will be the investment cost), CNY 18,000 for purchase of equipment, and CNY 12,000 for circulating fund. The estimated number of customers is 240 persons per day and the average expense of the business is CNY 7.0 per day per customer. As a result, the total annual gross income is CNY 306,000. With deduction of the annual total expenditure at CNY 90,000, CNY 28,800 as water and electricity charge (CNY 2,400 per month equivalent), CNY 30,000 as various business taxes and other costs (CNY 2,520 per month equivalent), the annual net income will be CNY 157,800 (CNY 13,150 per month equivalent). All the APs choose the rehabilitation measures at their preference and the compensation payment will be more than sufficient for them to invest in the scheme.

160. For the “motorcycle transportation service” option, the total initial investment required is CNY 36,000, of which CNY 27,000 is used for the purchase of motorcycle and CNY 9,000 for the cost of the business charge. The estimated passengers are 180 persons every day. The transportation price is set at CNY 3.00 per person. The total annual gross income will be CNY 197,100. With the deduction of total annual expenditure at CNY 41,700 including CNY 9,000 as annual management charge, CNY 30,000 as gasoline consumed, and CNY 2,700 as depreciation of vehicle, the annual net income will be CNY 155,400 (CNY 12,950 per month equivalent). All the APs choose the rehabilitation measures at their preference and the compensation payment will be more than sufficient for them to invest in the scheme.

161. For “retail clothing shop” (middle level) option, the total initial investment is CNY 72,000, including CNY 48,000 as annual space rental cost, CNY 24,000 as purchase of clothing. It is estimated that 60 clothes will be sold every day. The average gross profit is CNY 120. As a result, the annual gross income is CNY 252,000. With deduction of total investment and other expenditures at CNY 72,000, and various business taxes and other costs at CNY 18,000, the annual net income is expected at CNY 162,000 (CNY 13,500 per month equivalent). All the APs choose the rehabilitation measures at their preference and the compensation payment will be more than sufficient for them to invest in the scheme.

162. For the “taxi drivers”, their projected annual income is CNY 120,000 (CNY 10,000/month as salary), plus the income of their family members at about CNY 90,000 per year, their minimum annual net income is CNY 210,000.

163. For “hairdressing salon”, the total initial investment is CNY 60,000, including CNY 18,000 as annual space rental cost, CNY 15,000 as purchase of equipment, CNY 6,000 as decoration and 21,000 as circulating fund. It is estimated that 15 customers per day. The average gross profit is CNY 20 for each client. As a result, the annual gross income is CNY 109,500. With deduction of total expenditures at CNY 54,000, including rental cost at CNY 18,000, water and electricity fee at CNY 21,000 (CNY 1,750 per month equivalent), purchase goods at CNY 15,000 (CNY 1,250 per month equivalent), the annual net income is expected at CNY 55,500 (CNY 4,625 per month equivalent).

164. For “dry cleaning”, the total initial investment is CNY 60,000, including CNY 30,000 as annual space rental cost, CNY 30,000 as purchase of goods. It is estimated that 51 clients every day, with consumption of CNY10/persons per day. As a result, the annual gross income is CNY 180,000. With deduction of total expenditures at CNY 105,000, including rental cost at CNY 30,000, water and electricity fee at CNY 45,000 (CNY 3,900 per month equivalent), and purchase of goods at CNY 30,000 (CNY 2,500 per month), the annual net income is expected at CNY 75,000 (CNY 6,250 per month equivalent). All the APs choose the rehabilitation measures at their preference and the compensation payment will be more than sufficient for them to invest in the scheme.

165. For those who choose to be engaged in sales of tourism products and tourism service in the tourism development zone, their personal investment ranges from CNY 30,000 to CNY 180,000. If the APs engage in regular sales of tourism products or tourism service, the investment is relatively less. However, due to the large floating population in tourism areas of Sanniangwan Beach Area, the profits could be more substantial. If the APs engage in high-class tourism products and services, the invest will be relatively large, but the revenue will also be significant, with bigger risks of course. For the initial stage of the business, the government should guide the APs to be conduct investment analysis to reduce risks.

166. For the above tertiary industry development as livelihood rehabilitation measures, the APs could use the compensation of resettlement subsidy and standing crops as initial investment. As each household could get compensation for land loss families at CNY 80,000 to CNY 150,000 per family at average, it is adequate for them to invest in their new businesses.

167. For those who will choose the technical training free of charge provided by the government or IA, and plan to work in the nearby factories, commercial and retail businesses, super market, housekeeping, and hotels, their monthly salary could reach about CNY 1,500 to CNY 2,500. For higher technical skill, their monthly salary could reach to CNY 2,000 to CNY 3,500, with annual income between CNY 19,200 and CNY 36,000, which is much higher than their original income at CNY 5,187/year/capita.

168. In order to restore their livelihoods and income of the APs, QMG will work with relevant departments, owners of enterprises, Labor and Social Security Bureau, and district government to make the necessary arrangements to ensure that those affected people who could find the jobs in the tertiary industries as presented in Table 8-4.

Table 8-4: Engagement of the APs in Tertiary Industries Expected Net No. of AHs (APs) to Initial Investment Type of Business Income Be Engaged (CNY) (CNY/HH/Year) Construction Machinery & 3 (11) 120,000—200,000 150,000—300,000 Equipment Rental Grocery Store 8 (34) 90,000 312,400 Food catering service 10 (32) 90,000 177,800 Hairdressing salon 18 (52) 36,000 155,400 Dry cleaning 10 (39) 72,000 102,000 Transportation service 12 (35) 120,000 210,000 Clothing shop 5 (21) 120,000 252,000 Taxi 11 (36) 60,000 55,500 Hotel Service 3 (12) 600,000 75,000 Sales of Tourism products and 14 (44) 30,000—180,000 120,000—360,000 relevant sector

TOTAL 94 (317) 86,000－300,000 320,000－650,000

8.2.2 Employment Opportunities Generated by the Project

169. The implementation of the Proposed Project will speed up the urban infrastructure construction and is conducive to the development of tourism industry in Qinzhou City. The Project could also stimulate the flow of people and goods, and promote the local economic development. In addition, currently Qinzhou Port has been completed and put into operation, including Qinzhou Port Phase I over several ten thousand ton berths, two 50,000 ton general berth, 50,000 ton east oil bitumen, and other over several ten thousand berths. Port industry has had rapid development, there have been numerous large-scale petro-chemical, metallurgy, energy, paper and other projects moved into Qinzhou. The construction of the Beibu Gulf Economic Zone, China - ASEAN Free Trade Area and Pan-Pearl River Delta in China fully push forward regional economic cooperation, will greatly promote the Qinzhou Port construction and port industry, will facilitate Qinzhou step into billion ton ranks of the world's largest port. Meanwhile, the large ports, large industry, large logistics, and major tourism will form healthy, interactive development pattern, and develop a modern and comprehensive port with industry, ecology, tourism, human settlements in harmonious development. Together with the planned large-scale upstream and downstream industries of port and the expansion of the port and regional cooperation will create tremendous employment opportunities. The employment priority will be given to the affected labor force. Table 8-5 provides the annual job opportunities and estimated salary of the potential job positions in next five years generated in Qinzhou. The QMG will coordinate with relevant departments, including the owners of the job positions, labor and social security bureau and district government to arrange the APs to be employed for these job positions. For the 218 persons in labor force to be affected by all types of LAR impacts, the APs will get employment before or immediately after they lose their land. The government will assign the quotas to the owners of the job positions to ensure that the APs will be able to secure such jobs if the APs prefer these jobs. In comparison with their income from agricultural farming before land acquisition, the income of the APs from the jobs available in Table 8-5 will be much higher than before land acquisition.

Table 8-5: Annual Job Opportunities Created in Next Five Years Average Monthly Annual Job Income Annual Income Type of Job Remark Opportunities Earning Earning (CNY) (No.) (CNY) Construction Mainly for the house and indoor 15,000 1,500―4,000 18,000―36,000 construction and road decoration construction Job opportunities during the Temporary Project construction phase workers during 11,000 1,200―1,500 14,400―18,000 include security guard on the Project site, porters, construction construction workers, etc. Mainly shops within the city or along the street, real Sales person 900 1,500―2,000 18,000―24,000 estate sales person, and shopping plaza sales persons Passenger transport and Transportation 1,000 2,500―3,000 30,000―36,000 cargo transport in Qinzhou City, and taxi drivers. Food and catering service, Service 3,500 1,000－1,500 10,800－18,600 hotel, and domestic house keeping Secretaries of corporate and Office staffs 1,550 1,000－2,000 12,000－24,000 enterprises

Other Beauty and hairdressing commercial 12,000 1,500－3,000 18,000－36,000 salon, clothes, grocery, business maintenance, etc. Total 44,950

8.2.3 Social Insurance

170. In addition to the above proposed income rehabilitation measures, Qinzhou District Government will provide social security system for the APs in terms of social pension insurance, medical insurance and employment insurance to ensure the livelihood of the APs. The GZAR Government issued “Trial Method on Implementing Social Security System for Rural APs in GZAR” which states clearly on issues relating to the social pension insurance, medical insurance and employment insurance for rural APs whose land is acquired. For the social insurance, 40% contribution will come from the local government and 60% from rural collective and farmers. All APs would like to pay for the social insurance as it will ensure their livelihood for their whole life in future (The land lost farmers pay 20% based on the 40% of the average wage of the urban workers in last year).

171. In light with the Method, the social insurance fund for rural APs will be raised from APs, collective and local government, among which the percentage contributed by APs and collective will be 60% and the percentage contributed by local government will be 40%. The contribution of APs mainly comes from the resettlement subsidy and the collective mainly comes from land compensation payment. The contribution of local government comes from income generated from the state-owned land use rights transfer. Rural APs who participate in the social insurance and perform the obligation of payment will enjoy pension per month over the age of 60. Based on the survey, the majority of the APs are willing to participate in social insurance program. As no formal calculation formula and documents are available, the exact amount to be contributed by the APs to the social insurance program, and the amount of pension to be received by the APs will be calculated based on the specific cases of the APs by the social insurance agencies during the RP implementation.

172. The rural APs will be covered by the local medical care insurance according to the residence management principle. The rural APs whose registration has been changed to unemployed urban residents will be covered by urban residents’ basic medical care insurance. The rural APs whose registration remains the same as before will be covered by new-type cooperative medical care system. Migrant workers who are still registered as rural residents as well as urban employers who are registered as urban residents will be covered by urban residents’ basic medical care insurance. Self-employed will also be covered by urban residents’ basic medical care insurance. Furthermore, APs who live under the urban residents’ MLG or rural poverty MLG will be covered by local urban residents’ MLG scheme or rural poverty MLG scheme, respectively.

8.2.4 Project Related Income Generation Opportunities

173. During the Project construction phase, APs can seek some income generation opportunities, mainly providing services related to the Project construction, such as renting spare houses (if available) to the construction contractors as temporary office or to the construction workers as residence, operating grocery kiosks, and providing food, cigarettes and breweries to the construction teams. Also during the construction period, the PMO and IA will offer 500 person-years or 182,500 person-days temporary unskilled employment job opportunities to the local people, including the APs, such as excavation for pipeline and structures and soil and earth transportation.

174. During the Project operational period, the APs with suitable qualifications will be

employed and receive on-the-job training. Women and the poor will be given priority to be employed by the Project. After the construction of the road has been completed, it is planned that about 120 public welfare position jobs shall be provided for the APs based on discussion with the IA: 30 landscape workers, 30 road maintenance, 20 safeguard and 40 cleaners. Such employment to be generated by the Project will be provided to the APs as priority if they apply for. The ratio of employment for men and women will be 1:2. The salary will be over CNY1,500 to CNY 2,000 per month. As a result, the APs could get access to additional income generation opportunities and additional income. Therefore, the APs will benefit from the resettlement of the Project.

8.2.5 Provision of Technical Training to the APs

175. In recent years, with the rapid development of Qinzhou City, in particular Qinzhou Port Economic Development Zone’s economy and the establishment of the Beibu-Gulf Economic Development Zone, the improvement of urban infrastructure and sectors in good advantages have experienced fast development in Qinzhou City, in particular the accelerated development of modern and integrated port which will generate a lot of job opportunities. The technical workers and social service labors will be in shortage.

176. In order to create a self-development environment and rehabilitate the living standard of the APs in a short time, the IA will cooperate with the departments of Qinzhou Labor and Social Security, Finance, Education, S&T, WF to carry out the technology skill training for the APs. The training of technical and management skills will be consistent with the district economic features, requirements of the labor market and the enterprises to ensure that the training is practical, efficient and targeted.

177. By taking into consideration of lack of working skills for the major labor force of the affected households, especially women, the IA will ensure that at least 50% of the trainees will be females. After training of occupational skills, the APs could get jobs in the city. A total of about CNY 500 per person has been budgeted as training cost to cover the cost of training provided to the APs. Each AP will get one-time training for the field they choose. The female APs will enjoy the same training budget with the male APs at the training budget.

178. The training will be carried out twice a year, commenced from August 2017 and last till December 2018. The training will be implemented in association with local district government, RC, WF, and vocational education department. The training will be provided to all APs with labor force, especially the women. For each training, at least 50% of women should be included. The training includes:

(1) Public security guard, cleaning, public aesthetic landscaping, maintenance of public facilities, management of parking lot, and others; (2) Horticulture, sewing and knitting, beauty and hairdressing; (3) Maintenance and repair of motorcycle, vehicle, and electronic products; (4) Car decoration and management of cleaning and washing accessories; (5) Food, catering and hotel services, and domestic servant services; (6) Sales of products, small business registration and operation; (7) E-commerce; and (8) Information business.

8.2.6 Rehabilitation Plan of Ground Attachments

179. The compensation of ground attachments, including infrastructures and special facilities will be based on the replacement value according to the relevant documents of compensation standards. Compensation in cash will be paid to the affected owners to reconstruct the ground attachments.

180. The unit with property right will be in charge of the rehabilitation and reconstruction. The rehabilitation measures of the ground attachments should be planned in advance. In practical operation, these measures should be suitable to local conditions to ensure safe, efficient, timely, and accurate, and try to minimize impacts on the local residents.

181. For the relocation of affected infrastructures and special facilities, the relocation should be carried out according to the Project construction maps and drawings. The relocation of the affected municipal infrastructures and special facilities should be reduced as much as possible on the premise that the constructions do not affect the residents.

8.2.7 Special Concerns during Resettlement Process

8.2.7.1 Gender Issue

182. According to the Chapter of “Women and Economy” documented in Women’s Development Plan of Guangxi Zhuang Autonomous Region (2011-2020), it clearly states that:

183. To increase the legal protection rights for women to obtain equal rights for access to economic resources; to eliminate gender discrimination in employment; to achieve equality of employment; to improve the protection of women's equal participation in economic development, and equal labor rights. Therefore, the regulations and policies will ensure women's equal access to economic resources and efficient services as men, and strictly enforce the employment promotion law, the labor contract law, and other laws and regulations.

184. To eliminate gender discrimination in employment. In addition to legal provisions are not suitable for women's jobs and positions, no unit may, in the recruitment of personnel refuse to employ women to by sex or disguised by gender or increase standards for women’s employment. No labor contracts or other ways is allowed to limit women get married and giving birth. Strengthen the supervision on law enforcement, and investigate and punish behavior of gender discriminated units and occupation intermediary agencies.

185. To enlarge women's employment channels. Vigorously to promote the development of the third industry, and create new employment opportunities and job positions for women. Continuously to improve the SMEs and non-public enterprises to absorb women’ employment. To take effective measures to promote the employment of women in emerging industries and emerging sectors. To implement a more pro-active employment policy, and strengthen the employment assistance for women with employment difficulties. To improve supportive policies for entrepreneurship, and to provide skills training for tax exemption, loan interest subsidy, tracking guidance and other measures for women, to support and assist their succeed in business creation.

186. The household surveys showed that women from AP families are generally lacking of working skill other than housework skill. They are in inferior position of looking for job opportunities when competing with men. They usually work outside as seasonable labors or run a small business. Women take more responsibility for the family especially for those with female as the head of a household. The future welfare of women to be affected is important. Therefore, special attention will be paid to women’s special concerns, such as compensation payments, training programs, and other assistances, to reduce any special social risks caused by the implementation of this Project.

187. Women will be eligible, on an equal basis, for all compensation payments, training programs and other assistances to be provided. The compensation payment should belong to both wife and husband of a household. In order to protect the properties of the APs, both the

names of wives and husbands should be written on the property certificates of houses. In order to ensure this, the IA will carry out explanation and propaganda work to the affected women and closely involve them in the resettlement process.

188. The IA, RO, WF, and RC have reached agreement that WF will involve in guiding consultation and public participation for income rehabilitation activities in combination with their current ongoing programs so that female APs can make sufficient earnings for a sustainable livelihood after house demolition.

8.2.7.2 Assistance to Vulnerable Households

189. Of the total affected, 15 households or 63 persons, including households living under MLG and households with female-headed, are identified as vulnerable groups during the measurement and socioeconomic surveys. The local Civil Affair Bureau and Human Resource and Social Security Bureau will be responsible for including these households into the social safeguard program.

190. The income loss of the vulnerable households mainly comes from land. The average loss of each vulnerable household is 0.24 mu as a result of the project construction. According to the calculation of CNY 1,750/mu, the income loss for each household is CNY 420 each year. They will obtain CNY 9,648 compensation fund for their land loss. They can use the fund to purchase pension plan, and also they can use CNY 1,000-2,000 compensation fund as capital for fruit and agricultural products trading, and generate about CNY 500-1,000 income each month. If the household can’t get stable income, the local Civil Affair Bureau will provide CNY260-CNY1,000/month/person to these vulnerable households if their income is lower than the MLG line. The community and government will assist the vulnerable people to get particular technical and skill training to find suitable jobs and ensure they can earn CNY 1,400 per month (minimum salary standard). The regional development and the project will stimulate the local economic development, which will provide more favourable service and economic conditions for the vulnerable groups. As a result, their living will be better off. If the poor people can find jobs in the relocation area or in the project, they will be ensured that they can get income of CNY 1,400 per month at least as insurance (minimum wage standard). The following provisions will be provided to vulnerable groups to rehabilitate their income: 1) training without charge will be provided to them to increase the knowledge and skills of the vulnerable groups; 2) provision social safeguard program; 3) provision of employment opportunities generated by the Project and provision of employment information to the vulnerable groups; and 4) provision of micro-credit to them by the local credit unions or local banks. The IA and the local government will assist the APs to get access to micro-credit from local banks.

191. During the relocation stage, the IA and local government will provide in-kind assistance for the vulnerable groups in the following aspect:

- For the elderly or disabled, priority should be provided to them during the selection of the location, floors and types of houses in the resettlement site; - Provide labor and transportation assistance to the vulnerable groups without charge.

IX. COST ESTIMATES

9.1 Compensation and Resettlement Costs

192. The resettlement costs are included in the overall budget of the Proposed Project. The total cost of resettlement for the Project is estimated to be CNY 33.1595 million, equivalent to US$ 4.8764 million in 2017 prices, including 15% contingencies (physical and price). The estimated costs include compensation for collective permanent land acquisition, residential structures, auxiliaries, basic infrastructures and special facilities, other costs, land-related taxes, and contingencies. The detailed cost estimates of resettlement are presented in Table 9-1. The summary cost is presented in Table 9-2.

Table 9-1: Detailed Cost Estimates of Resettlement Unit Price Cost Estimate No. Item Unit Quantity (CNY) (CNY) 1 Permanent Land Acquisition 5,719,034.86 1.1 Affected collective land mu 140.73 5,719,034.86 1.2.1 Paddy land mu 17.872 45,400 811,388.80 1.2.2 Slope land mu 96.7193 40,200 3,888,115.86 1.2.3 Forest land mu 26.1418 39,000 1,019,530.20 2 Demolition of Residential Houses 9,494,563.00 Demolition of residential m2 2.1 8,263.25 7,984,263.00 houses 2.1.1 Brick-concrete m2 4,618.86 1,250.00 5,773,575.00 2.1.2 Tile-wood m2 1,109.98 850.00 943,483.00 2.1.3 Simple shed m2 2,534.41 500.00 1,267,205.00 2.2 Relocation allowance 1,510,300.00 2.2.1 Relocation allowance person 231 500.00 115,500.00 Allowance for temporary transit person@12 2.2.2 months 231 4,800.00 1,108,800.00 Allowance for loss of working HH 2.2.3 52 500.00 26,000.00 days Award for timely agreement HH 2.2.4 52 5,000.00 260,000.00 signing 3 Ground Attachments 9,078,660.00 3.1 Basic Infrastructures and Special Facilities 9,078,660.00 3.1.1 Cement concrete rods no. 62 950.00 58,900.00 3.1.2 Communication optical cable m. 4000 80.00 320,000.00 Overhead communication optical m. 3.1.3 4000 50.00 200,000.00 cable 3.1.4 High-voltage power line m. 4000 1,850.00 7,400,000.00 3.1.5 Low-voltage power line m. 4000 265.00 1,060,000.00 3.1.6 Transformers no. 2 3,500.00 7,000.00 3.1.7 Road lights no. 104 315.00 32,760.00 Basic Infrastructure HH 4 52 50,000.00 2,600,000.00 Construction of House Plot Basic Cost of LAR 26,892,257.86

5 Other Costs 1,433,659.99 5.1 RP preparation 100,000 100,000.00 5.2 Admin. fees 2.1% of LAR 564,737.42 5.3 M&E cost 1% of LAR 268,922.58 5.4 Training cost 500,000 500,000.00 6 Relevant Land Taxation 799,748.24 6.1 Land use approval cost 2.8% of LA 160,132.98 Paddy mu Farmland 17.875 8,500.00 151,937.50 land 6.2 reclamation Slope mu cost 96.7193 5,000.00 483,596.50 land Compensated use of newly m2 6.3 constructed land 140.73 28 3,940.53 6.4 Labor cost of LA m2 140.73 1 140.73 7 Contingencies 4,033,838.68 7.1 Physical contingencies 10% of LAR 2,689,225.79 7.2 Price contingencies 5% of LAR 1,344,612.89

TOTAL 33,159,504.77

Table 9-2: Summary Resettlement Costs No. Compensation Project Estimate Cost (CNY) 1 Permanent Land Acquisition 5,719,034.86 2 Demolishment of Residential Houses 9,494,563.00 3 Demolishment of Ground Attachments 9,078,660.00 4 House Plot Construction 2,600,000.00 5 Other Cost 1,433,659.99 6 Land-Related Taxes 799,748.24 7 Contingencies 4,033,838.68 8 Total 33,159,504.77

9.2 Annual Budget

193. According to the Project schedule, the project construction will take about 27 months to complete between October 2017 and December 2018. The annual cash flow is estimated to be 60% or CNY 19.8957 million in 2017, 30% or CNY 9.9479 million in 2018, 10% or CNY 3.3160 million in 2019. Table 9-3 provides the annual budget of resettlement cost.

Table 9-3: Annual Budget of Resettlement Cost 2017 2018 2019 Total Total Budge (CNY 1,989.5702 994.7851 331.5950 3,315.9504 10,000) Proportion of Total 60% 30% 10% 100% Budget (%)

9.3 Flow of Fund

194. Fund related to resettlement will be distributed through the following channels (See Table 9-4):

Table 9-4: Flow of Fund Permanent land acquisition → GQLIICL → RO RC → APs of collective-owned land

Residential structures → GQLIICL → RO → RC → APs demolishment

Auxiliaries → GQLIICL → RO → RC → APs

Relocation allowance → GQLIICL → RO → RC → APs

Basic infrastructures and → GQLIICL → RO → IA special facilities

Investigation and design cost → GQLIICL → DI

Office administration costs → GQLIICL → LAR implementation agencies

Training cost → GQLIICL → Training institutions

M&E → GQLIICL → IMA

X. LAR IMPLEMENTATION SCHEDULE

10.1 Principles

195. The resettlement schedule for land acquisition, structure demolition and resettlement for the Project will be coordinated with the respective construction schedule. Based on the time schedule of the Project, the land acquisition and resettlement schedule have been developed, reflecting the linkage and consistency between the time schedule of resettlement/land acquisition and civil works construction tasks.

196. In order to ensure that all aspects of the RP can be achieved, land acquisition will start at least one month before construction. The affected persons can move to new resettlement houses at least one month before old structures are demolished. Before the land acquisition and resettlement, a final measurement survey will be conducted in the affected community, and the contracts with each affected household will be negotiated and signed. The disbursement of compensation should be sufficiently paid. Also, arrangements for land acquisition and structure demolishment will be established before LAR proceeds.

10.2 LAR Implementation Schedule

197. Resettlement implementation will be scheduled in stages to coincide with the overall Project schedule between October 2017 and December 2018. The land acquisition will start from August 2017 to December 2018. It is planned that there will no commencement of civil works until all compensation is paid and all livelihood rehabilitation measures are in place. “In place” means that all arrangements are made to commence rehabilitation and APs are registered for these. It is planned that the land acquisition shall be completed before the start of Project construction.

198. However, before land acquisition and structure demolishment, a final measurement survey will be conducted in the affected community. The compensation contracts will be negotiated and signed. Also, resettlement arrangements should be made before LAR proceeds. Based on the detailed measurement survey (DMS) between December 2016 and April 2017, the RP will be updated and submitted to ADB for review and approval prior to commencement of land acquisition and resettlement and award of contracts.

199. The LAR schedule has been divided into four stages:

1) Land Acquisition and Compensation Planning

- Apply for and receive “Planning Land Use Certificate”, “Construction Land Use Certificate”, and “Structure Demolition Certificate”; - Conduct detailed measurement surveys of the affected area and houses to determine the specific losses eligible for payment of compensation; - Identify poor and vulnerable APs; - Finalize compensation/resettlement strategies in consultation with the local governments, APs and their representatives; - Conduct public information/consultations on RP; - Sign contract; and, - Finalize relocation area.

2) Land Acquisition and Resettlement Activities

- Provide compensation payment;

- Construct the resettlement site and houses, selection and purchase of houses (including location, floor and type) infrastructure and other facilities; - Transfer APs to new location; and, - Demolish residential structures and auxiliaries.

3) Income Restoration

- Provision of employment opportunities during the Project construction and operation phases; - Assistance in the identification of employment and business opportunities for APs in the local enterprises and businesses; - Targeted training; - Promotion and development of tertiary industry; and, - Special attention paid to the vulnerable groups.

4) Monitoring

- Hire monitoring agency; - Approve TOR by the Bank; - Monitor LAR; - Monitor income restoration program; - Monitor poverty reduction program and assistance provisions to vulnerable groups; and, - Conduct external evaluation of the Project.

200. The resettlement supervision milestone is presented in Table 10-1. Based on the project schedule of civil works, the resettlement plan preparation will be continued after the PPTA stage, and the land acquisition and resettlement are planned to commence in August of 2017 and complete in December 2018.

Table 10-1: Resettlement Supervision Milestone Resettlement No. Target Responsible Agency Deadline Status Tasks 1. Disclosure 1.1 -Information booklet 94 AHs and IA (GQLIICL) and RO Mar 2017 Planned 317 APs 1.2 - Approved RP 2 RCs QMG, District Jul 2017 Planned Government, and RO 1.3 - RP posted on ADB QMG, PMO, IA and Jul 2017 Planned website ADB 2. Approval of RP US$ 4.8764 QMG, District Jul 2017 Planned and Budget million Government, and RO (Recheck) 3. Agreements 3.1 - Households 94 AHs and PMO, IA, QLRB, Aug 2017 - Planned 317 APs QHDAO, RO, and RC May 2018 4. Detailed Plans 3.1 - Community 2 RCs PMO, IA, DI, and RO Feb 2017 - Jun Planned rehabilitation plans 2019 3.2 - Plan for vulnerable 15 AHs and 63 PMO, IA, QMG, Feb 2017 - In process group if identified APs Qinzhou Civil Affairs May 2018 Bureau, Qinzhou Labor & Social Security Bureau 3.3 - Training Plans for All AFs PMO, IA, RO, training Jun 2017 - Planned APs institutions Jun 2019

Resettlement No. Target Responsible Agency Deadline Status Tasks 6. Establishment of PLG, PMO, IA, RO, Feb 2017 - In process Implementation QLRB, QHDAO, Others Dec 2017 Capacity 7. Monitoring & Evaluation 7.1 - Baseline survey 317 APs PMO, IA, and DI Dec 2016 – In process Apr 2017 7.2 - Set-up internal As per RP PMO and IA May 2017 - Planned supervision Dec 2017 7.3 - Hiring external As per RP PMO Jul 2017 Planned monitor 7.4 - Internal monitoring Quarterly PMO, IA, and RO Sep 2017 1st Report reports 7.5 - External Semi-annual IMA Jul 2017 1st Report monitoring reports Dec 2017 2nd Report 7.6 - Resettlement 1 report IMA Finish all work Completion Reports in Dec 2018 7.7 - Evaluation reports 4 annual IMA Dec 2017 1st Report reports Dec 2018 2nd Report Dec 2019 3rd Report Dec 2020 4th Report 8. Documentation of Consultation IA, RO, RC Ongoing 9. Documentation of Grievances IA, RO, RC Ongoing

10. Flow of Funds / Compensation 10.1 - To IA 60% QMG Aug 2017 Pending 10.2 - To affected RC “ “ “ IA and RO Sep 2017 - Jun 2018 10.3 - To affected “ “ “ IA and RO Sep 2017 - households Jun 2018 AFs = Affected Families; GQLIICL = Guangxi Qinzhou City Qinzhou Linhai Industry Investment Co., Ltd.; QMG = Qinzhou Municipal Government; QHDAO= Qinzhou House Demolishment Administration Agency; QLRB= Qinzhou Land Resource Bureau; DI = Design Institutes; IA = Implementation Agency; IMA= Independent Monitoring Agency; PLG= Project Leading Group; PMO = Project Management Office; and RO = Resettlement Office.

XI. INSTITUTIONAL FRAMEWORK

11.1 Project Resettlement Organizational Set-up

201. The project leading group is established within the QMG with the PMO as the secretariat communicating with the other agencies concerned. As previously mentioned, GQLIICL is the project Implementation Agency (IA). Under the IA, there is a resettlement office, responsible for land acquisition and resettlement. The organizational structure is shown in Figure 11-1.

202. The IA will play a key role during the resettlement process. However, besides the IA, there are other related institutions who will be also involved in the resettlement activities. All these institutions and the staffing are presented in Table 11-1.

Table 11-1: Resettlement Institutions Involved and Staffing Institutions Staffing Project Leading Group 2 males & 1 female with experience, Government officers, education level above college Qinzhou Project Management Office (PMO) 2 males & 2 females with experience, Government officer, engineering technicians, education level above college Qinzhou Land Resources Bureau (QLRB) 2 males with experience, Government officer, education level above college Qinzhou House Demolishment Administration Office 8 males & 3 females with experience, (QHDAO) Government officer, education level above college Port District Government (PDG) 1 male & 1 female with experience, Government officer, education level above college GQLIICL / IA 5 males & 2 females with experience, Engineering technicians and management staff, education level above college RO 7 males & 6 females with experience, officers and representatives of APs, education level bovver college RC 5 males & 5 females with experience, community officials Legal Advisory Office 1 female lawyers DI 2 male senior engineering technicians External Monitoring Agency 1 resettlement specialist

Figure 11-1: Organizational Structure of LAR Implementation

Project Leading PMO Group

Port District Legal Advisory Qinzhou HDAO Qinzhou LRB GQLIICL- IA DI Government Office

IMA

Engineering Office Finance Department Administration Office

Resettlement Office

APs

11.2 Responsibilities

Table 11-2: Responsibilities of Agencies Institutions Responsibilities PLG - Lead, organize, coordinate and formulate policies for the project. - Review the implementation of the RP. - Conduct internal supervision and inspection. - Make decision for major problems during land acquisition and resettlement process.

PMO - Perform the overall coordination and organize the project activities. - Coordinate the preparation and implementation of the LAR program. - Organize and coordinate the preparation of RP. - Provide assistance to women and other vulnerable groups. - Serve as a liaison among ADB, IA and various agencies concerned.

GQLIICL- IA - Apply for Land Use Planning Certificate and Land Use Construction Certificate to LRB. - Apply for house demolition certificate. - Disburse land acquisition and resettlement fund and supervise the usage. - Direct, coordinate and supervise the implementation schedule of the RP. - Organize and implement internal supervision, determine independent external supervision agency, coordinate internal and external monitoring activities. - Report the schedule of land acquisition and resettlement, fund usage and implementation status periodically to ADB. - Provide assistance to women and other vulnerable groups. - Coordinate the handling of the conflicts and problems during the resettlement implementation. - Report the land acquisition and structure demolishment to PLG.

Resettlement Office - Organize the socioeconomic survey. - Conduct measurement surveys of land acquisition and house demolishment. - Implement the relocation. - Formulate the resettlement implementation schedule. - Sign the land acquisition and house demolishment agreement with the affected households in association with local government. - Supervise the implementation of RP. - Manage the information of land acquisition and resettlement. - Provide assistance to women and other vulnerable groups. - Train the resettlement staff. - Coordinate the handling of conflicts and problems during the RP implementation. - Settle the disputes and grievances through coordination and arbitration. - Handle the illegal action during the land acquisition and relocation process. - Report the land acquisition and house demolishment to IA.

Institutions Responsibilities QLRB - Implement the relevant national policies of land acquisition. - Participate in the examination of compensation standards for land acquisition and ground attachments. - Process and approve land acquisition. - Participate in measurement and socioeconomic surveys. - Participate in the preparation of Resettlement Plans. - Issue Land Use Planning Certificate and Land Use Construction Certificate. - Issue Public Notice of Land Acquisition. - Guide, coordinate, and supervise the implementation activities of land acquisition and resettlement. - Coordinate the handling of conflicts and problems during the RP implementation.

QHDAO - Carry out and implement the regulations and policies related to house demolition. - Review the relevant documents of house demolition plan and resettlement and compensation plan, issue the house demolition certificate. - Register and manage house relocation file. - Coordinate, supervise and inspect the house demolition activities and handle conflicts during demolition. - Cooperate with the respective Resettlement Office (RO) to train and examine the resettlement officers.

Legal Advisory - Provide legal consultancy during project implementation. Office - Provide legal assistance in case there is dispute during land acquisition, structure demolishment and resettlement.

District - Assist the measurement and socioeconomic surveys. Government - Assist the preparation of resettlement plans. - Supervise RCs to implement resettlement plan and rehabilitation plan.

RC - Participate in measurement and socioeconomic surveys and formulation of the resettlement and rehabilitation plan. - Participate in the preparation of the RP. - Organize the public consultation; and publicize policies of land acquisition and resettlement. - Consult the compensation payment and distribution. - Organize the production and income restoration activities in resident community. - Organization the development of secondary and tertiary industries. - Report comments and suggestions of APs to the organizations at upper level. - Provide assistance to women and other vulnerable groups.

DI - Minimize the project impacts through optimizing engineering design. - Identify the scope of land acquisition and resettlement impacts. - Conduct measurement survey and socioeconomic surveys. - Assist to prepare the Resettlement Plan. - Provide technical consulting of data collection and processing to the respective municipal PMO and IA.

Institutions Responsibilities

Independent - Provide technical consulting of land acquisition and resettlement. Monitoring Agency - Act as an IMA, provide periodic monitoring for the implementation of (IMA) the resettlement plan, and provide independent evaluation report to the municipal PMO, IA, RO, and ADB.

11.3 Institutional Capacity Strengthening

11.3.1 Assessment of Institutional Capacity

11.3.1.1 Logistics and Hardware

203. Currently there is a resettlement office under GQLIICL, which is equipped with a few computers. The RO has facilitated with office facilities, transportation vehicles and communication facilities, mainly including air-conditioner, chairs and tables, computer, printer, telephone set, fax machine, vehicle and some other office necessities. The expenditure of the RP will be included in the office expenses. The relevant expenditures for hardware facilities for the RO are budgeted at CNY 80,000.

11.3.1.2 Financing

204. During the project preparatory stage, all budget spent were pre-paid by IA as well as EA. The lack of financing resources during project preparation stage has definitely hindered the institutional set-up and the preparation progress (including FSR and RP preparation) irrespective of the staff’s capabilities. The RP has considered this issue and adequate management fund for RP implementation has been budgeted in the resettlement budget.

11.3.1.3 Staff Capabilities

205. During the PPTA stage, the Consultants found that many government officials have rich experiences in dealing with land acquisition and resettlement issues. However, almost nobody has resettlement experience of working in ADB financed projects, and none of them has attended training on ADB involuntary resettlement policies before the Project. Therefore, a systematic training on Involuntary Resettlement will be necessary.

11.3.2 Institutional Capacity Building and Training

206. The ADB will provide support to train staff on resettlement procedures. A part of the ADB loan for implementation will be provided for institutional capacity building through specific training courses and on-the-job training with the appointed IMA. The training includes the principals and policies of resettlement, construction planning management, planning and design, management on LAR implementation processes, financial management, quality control, supervision and estimation and project management.

207. In order to promote the capability and working efficiency of resettlement staff, training will be provided to them. Based on the real situation, the requirements are as follows:

- Training venue will be selected outside of Qinzhou City, preferably those cities which have ADB projects with successful resettlement experiences so that trainees can

learn their experiences from investigations or study tours.

- Trainees should be those who will be seconded to the Project to undertake resettlement tasks, and those resettlement officials who participated in the RP discussions with Resettlement Consultant during the project preparatory stage must participate.

- Training is planned between August 2017 and December 2018.

XII. MONITORING, EVALUATION AND REPORTING

208. The PMO and IA will regularly monitor and evaluate the implementation of land acquisition and resettlement activities in order to ensure resettlement work is implemented successfully in accordance with the RP, and to achieve the target of appropriate livelihood restoration for APs. The monitoring will comprise two components: internal monitoring and external monitoring. Internal monitoring will be mainly conducted by IA and RO and will be overseen by the project leading group and PMO to ensure that organizations involved in implementation of land acquisition and resettlement work comply with the principles and schedules of the Resettlement Plan (RP).

209. The aim of internal monitoring is to encourage the concerned organizations to carry out good performance while the external monitoring and evaluation will be conducted by an independent agency periodically on the activities of land acquisition, demolition and resettlement.

210. The scope of monitoring on resettlement will cover data collection, analysis, and the reporting of progress for an internal monitoring while the external monitor will check progress but their main role is to evaluate quality and results of resettlement.

211. Resettlement monitoring will focus on the following two aspects:

- Progress of disbursement and provision of entitlements to APs. - Comparison of APs and RC pre and post resettlement socioeconomic situation, particularly livelihood restoration. Background socioeconomic data collected during the inventory and census surveys will be used in this assessment.

12.1 Internal Monitoring

212. Internal monitoring will be undertaken by the PMO, Qinzhou Land Resources Bureau, Qinzhou House Demolishment Administration Office, and IA and RO, to assure the concerned departments to comply with the RP. Internal monitoring and evaluation aims to ensure good performance during the resettlement process.

213. The executive agency will take major responsibility of internal monitoring, covering the activities of affected people, entitlement, advice, grievance, problems, efficiency, timing, budget, etc.

- Disbursement of entitlements to AP: compensation, house provision, employment, and necessary assistance as specified in the RP.

- Social adaptability and cohesion: impacts with a gender perspective on APs and vulnerable groups, public participation, non-government’s role, AP’s attitudes and opinions after resettlement, number of complaints and appeal procedures, implementation of preferential policies and income restoration measures, and improvements in women’s status.

- Timing of land acquisition, structure demolition, livelihood and income restoration: disbursement of compensation, and selection of houses (location, floor and type), moving, and updating of resettlement schedule and resettlement budget where required.

- Rehabilitation of community facilities and services: Timely rehabilitation of community facilities and services and ensuring that mitigation measures to minimize impacts are implemented.

- Public participation and consultation: Involvement of AP in resettlement implementation as per the public consultation plan outlined in the RP. Review of grievance register and responses to complaints.

- Assistance to vulnerable groups.

214. It is anticipated that internal monitoring reports will be brief documents reporting on progress to date and identification of issues, how issues were resolved, consultations undertaken, and revisions of the resettlement schedule and disbursement of budget where required.

12.2 External Monitoring and Evaluation

215. Required by ADB, the PMO will appoint an independent monitoring agency (IMA) to carry out the external monitoring and evaluation on resettlement. The independent agency should have good reputation and successful experience and fully understand ADB’s policy and requirements on resettlement. The PMO will sign a contract with this agency. The terms of reference (TOR) for the independent evaluator are listed in Appendix 2.

12.2.1 Objectives and Requirements of M&E

Objectives

216. The objectives of monitoring and evaluation are to assess if the land acquisition and resettlement is implemented in accordance with the RP and if the goals and principles of the RP are achieved. Specifically, monitoring and evaluation will focus on the following aspects of the APs’ situation and the resettlement process.

 Economic situation prior to and after displacement of land or structures;  Timely disbursement of funds;  Environmental conditions;  Social adaptability after resettlement;  Rehabilitation of the vulnerable groups if identified during implementation process;  Measures taken to restore affected production and livelihoods of the APs and enterprises; and,  Living conditions and economic status of APs following resettlement in comparison to the non-affected household in the Project area.

217. Monitoring and evaluation will include the establishment of socioeconomic baselines of the APs prior to land acquisition or physical relocation, and the regular monitoring of their relocation or adjustment during Project implementation, and evaluation of their situation for a period of one or two years afterwards. Qualitative and quantitative methods will be used to evaluate the standard of living of the APs. Investigation will include interviews with IA, local officials, community leaders, and survey of 20-25% of affected households. Focus group discussions can be conducted to address issues related to women, poor, and other vulnerable groups.

Monitoring Indicators

218. The following indicators will be monitored and evaluated in accordance with principles, entitlements and rehabilitation strategies/plans set out in the RP:

 Disbursement of entitlements to affected households: compensation, land, structures, employment, and necessary assistances as specified in the RP.  Development of economic productivity: job opportunities available to APs, number of APs employed or unemployed.  Restoration of basic infrastructures and special facilities: all necessary basic infrastructures and special facilities should be restored at the resettlement sites at least up to a standard equal to the standard at the original location; the compensation for all infrastructures and special facilities should be sufficient to reconstruct it to the same quality.  Level of AP’s satisfaction: level of APs’ satisfaction with various aspects of the resettlement program; the operation of the mechanisms for grievance redress will be reviewed and the speed and results of grievance redressal measures will be monitored.  Standard of living: Throughout the whole implementation process, the trends in standards of living will be observed and the potential problems in the way of restoration of standards of living will be identified and reported. The IMA will carry out a comprehensive socioeconomic survey after the completion of resettlement implementation to document the standards of living and the conditions of the APs after resettlement. The survey will be conducted annually for two years, or until most affected households have fully restored their living standards and income generation.  Social adaptability and cohesion: impacts on children, the elderly and other vulnerable groups, public participation, APs’ attitudes and reaction to post resettlement situation, number of complaints and appeal procedures and resolution, implementation of preferential policies, income restoration measures, and improvements in women’s status.

Special Considerations

219. Special attention/provisions specified in the RP will be paid to women, the poor and vulnerable groups during monitoring; these include:

 The status and function of women: Closely monitor any change in women’s status, function and situations. At least 40 % of APs surveyed will be women. The monitoring and evaluating unit will also provide recommendations and assistance to the PMO and IA in respect of women’s issues.  Care and attention to vulnerable groups: Closely monitor living conditions of the poor, elders, the disabled, and other vulnerable groups after resettlement, to ensure that no hardship is experienced.  Monitoring and evaluation will provide information on utilization and adequacy of resettlement funds. The Qinzhou Audit Bureau will audit resettlement accounts and funds. The details of this audit will be made available to the IMA.

12.2.2 Methodology

220. The methodology of external monitoring and evaluation are listed as follows:

- Independent agency will conduct baseline survey on the affected area and acquire the baseline data of APs. The investigation about production and AP’s living conditions will be made every year to measure the change. Sample trace investigation of affected households will be adopted. Irregular interview or site visits will be made to acquire sufficient data for evaluation.

- Conduct group discussion and consultation with various groups of people from

government, non-government, community and affected people.

- Interview with key persons such as community leaders regarding resettlement implementation.

- Community public meetings to collect various information on resettlement.

- Make direct observation regarding progress of demolition and replacement and visit the individuals or groups.

- Informal investigation or interview by non-sampling means such as with the affected people and staff engaged with resettlement.

12.2.3 Major Tasks

221. The IMA will monitor and evaluate the resettlement relative with the project and consolidate their findings and assessment into a report to ADB, EA, IA and other concerned departments. These reports can be helpful in the policy-making by concerned department. The affected people and non-government organizations and communities will participate in the evaluation activities.

222. External monitoring and evaluation will cover the quality assessment on following the aspects:

- Adequacy of compensation and timelines of payment;

- Structure demolition and resettlement of APs;

- Situation of production and living environment pre and post resettlement; bear in mind with a gender perspective;

- Livelihood restoration of APs;

- Operation and efficiency of the resettlement institutions.

12.3 Reporting Requirements

223. Internal monitoring reports will be submitted quarterly by project IA to the PMO and PMO will submit it in the progress report to ADB. The external M&E reports will be submitted directly to PMO and ADB simultaneously every six months by the IMA. The external evaluation reports will be continued once every six months until the completion of the resettlement, and then the annual evaluation reports will also be prepared by the external monitor once every 12 months until Project completion. Finally, after project completion, the PMO and IA will prepare a resettlement completion report and submit to ADB.

APPENDIX 1: Resettlement Information Booklet

1. Introduction

224. The Proposed Project will be financed by ADB loan saving of the Guangxi Beibu Gulf Cities Development Project, which is composed of: (i) Binhai Highway Expansion (Jinguang Bridge to Dalanping No. 4 Road), with length of 4 km and No. 2 North-Central Section (K1+004.578～K1+577.077 Section), with length of 0.573 km, and the total length of the two roads is 4.573 km; and (ii) Associated infrastructures, including traffic lights, drainage facilities, sewerage pipeline and landscaping. The Project IA is Guangxi Qinzhou Linhai Industry Investment Co., Ltd. (GQLIICL).

2. Impacts of Land Acquisition and Resettlement

225. The Project will involve permanent acquisition of collective land is 140.7331 mu, including 17.872 mu (12.7%) farmland. The permanent land acquisition will affect 94 households or 317 persons. There is no temporary land occupation to be involved as temporary land use will be within the scope of permanent land acquisition.

226. A total of 8,263.25 m2 of residential houses will be demolished, relocating 52 households or 231 persons. Associated ground attachments, basic infrastructures and special facilities will also be affected, such as shrimp pond, cement concrete electricity pole, low-voltage power lines, high-voltage power lines, communication optical cable, road lighting, etc.. Of the affected 52 rural households and 231 rural populations, 15 households and 63 persons are vulnerable (of which 11 households and 50 persons are living under minimum living guarantee and 4 women-headed households and 13 women). No ethnic minority will be affected. Table 1 provides the summary of the land acquisition and resettlement impacts identified, Table 2 permanent land acquisition by classification of RC, Table 3 demolishment of residential structures, Table 4 affected basic infrastructures and special facilities, Table 5 summary of affected households and populations, and Table 6 affected vulnerable groups.

Table 1: Summary Land Acquisition and Resettlement Impacts Permanent Land Acquisition Total AHs and APs to Be Administrative Jurisdiction Residential House Demolishment 2 (Collective Land) Affected (No.) Collective Land AHs District Community Total Area (mu) AHs (No.) APs (No.) Total Area (m2) APs (No.) AHs (No.) APs (No.) (mu) (No.) Jingu RC 1,960.83 62.4879 31 111 5,082.87 31 146 31 146 Port District Jiduntou RC 1,852.65 78.2452 63 206 3,180.38 21 85 63 206 TOTAL 3,813.48 140.7331 94 317 8,263.25 52 231 94 352 Note: 1 AHs and APs are affected by residential house demolishment will also be affected by permanent land acquisition.

Table 2: Permanent Land Acquisition by RC No. of Permanent land acquisition(mu) No. of Affected Total area of RC Affected Households collective land Paddy Land Slope land Forest land Homestead Total Population Jingu RC 31 111 1,960.83 17.872 21.8401 22.7758 0 62.4879 Jiduntou RC 63 206 1,852.65 74.8792 3.3660 0 78.2452 Total 94 307 3,813.48 17.872 96.7193 26.1418 0 140.7331

Table 3: Demolishment of Residential Structures Affected AHs APs Area of Residential Structure (m2) Community (No.) (No.) Brick-Concrete Tile-Wood Simple Shed Total Jingu RC 31 146 2,000.48 1,016.38 2,066.01 5,082.87 Jiduntou RC 21 85 2,618.38 93.6 468.4 3,180.38 TOTAL 52 231 4,618.86 1,109.98 2,534.41 8,263.25 Note: AHs and APs are affected by residential house demolishment will also be affected by permanent land acquisition.

Table 4: Affected Infrastructures and Special Facilities Items Unit Quantity Cement concrete rods No. 62 Communication optical line m. 4,000 Overhead communication optical line m. 4,000 High-voltage electricity power line m. 4,000 Low-voltage electricity power line m. 4,000 Transformer No. 2 Street lighting No. 104

Table 5: Summary of Affected Households and Populations (Unit: No.) Permanent Land Residential Structure Total AHs and APs by Acquisition Demolishment Different Impacts Resident Committee (Collective Land) APs APs APs AHs (No.) AHs (No.) AHs (No.) (No.) (No.) (No.) Jingu 31 111 31 146 31 146 Jiduntou 63 206 21 85 63 206 Total 94 317 52 231 94 352 Note: 1 The households and populations to be affected by house demolition will also be affected by permanent land acquisition.

Table 6: Type and Quantity of Affected Vulnerable Groups Jingu Resident Committee Jiduntou Resident Committee Vulnerable Groups Type AHs APs AHs APs “Five Guarantees” Family 1 0 0 Household Living Under the Minimum

Living Security Line 2 4 20 7 30 Families with Disabled 0 0 Female-headed Households 3 2 7 2 6 Extremely Poor Family 4 0 0

Total 6 27 9 36 Note: 1 Families Given/With/Receiving/Enjoying Five Assurances/promises; and, 2 Households living under MLG are classified as the poor households. 3 Families with the labor force mainly on female. 4 The people excluded in the safeguard object of system of safeguard lowest life, but because of illness or accident caused temporary difficulties, they cannot maintain daily life, for the relief mostly the issue of interim relief, and the amount is different by region.

3. Appeals and Grievance Procedures

227. APs can propose any complaint related to resettlement issues and compensation. The Project has established a transparent grievance channel in addition to the existing grievance channels of local government. The basic grievance procedures include the following steps.

Stage 1: 228. If any AP is aggrieved by any aspect of the land acquisition and resettlement, he/she can state his/her grievance and appeal to the resident committee (RC) or in oral or in written form. If an oral appeal is made, the RC will record it on paper and process it. Resident committee will make decision on or resolve it in two weeks. The AP will be informed of the result via written notice.

Stage 2: 229. If the aggrieved AP is not satisfied with the decision in Stage 1, he/she can appeal to the district government office after receiving the decision; the district government office will reach a decision in two weeks. The AP will be informed of the result via written notice.

Stage 3: 230. If the aggrieved AP is still not satisfied with the decision of the district government office, he/she will appeal to the Qinzhou Project Management Office (QPMO) or Qinzhou Land Resources Bureau (QLRB) or Qinzhou House Demolishment Administration Office (QHDAO) after receiving the decision. The Qinzhou City PMO or QLRB or QHDAO will reach a decision in two weeks. The AP will be informed of the result via written notice.

Stage 4: 231. If the aggrieved AP is still unsatisfied with the decision of the QPMO or QLRB or QHDAO, he/she will appeal to the GZAR LRB or HDAO after receiving the decision. The GZAR LRB or HDAO will reach a decision in two weeks. The AP will be informed of the result via written notice.

Stage 5: 232. If the AP is still dissatisfied with the decision of the GZAR LRB or HDAO, he/she will appeal to the civil division of a people’s court according to the civil procedural law after receiving the decision from GZAR LRB or HDAO. The AP will be informed of the result via written notice. . 233. The resettlers can appeal on any aspect related with land acquisition and resettlement, including compensation criteria and payment, etc.

234. The resettlers can appeal on any aspect related with land acquisition and resettlement, including compensation criteria and payment, etc.

4. Legal Framework and Policies

235. The primary objective of the land acquisition and resettlement (LAR) program is to ensure that the APs will improve their standards of living, or at least will not be made worse off because of the Project. The land acquisition, demolition and resettlement of this project will be complying with the laws and regulations of PRC, local government and ADB:

 Notification on Adjusting Newly Added Construction Land Use Fee Collection issued by Ministry of Finance and Ministry of Land Resources [Caizong [2002] 93];  Temporary Regulations on Farmland Acquisition Tax of PRC, 2008;  GZAR “Land Administration Law”, 2001;  Management Law of Urban Real Estate of PRC, 1994;  Guidelines for Valuation on Urban House Demolishment of PRC; 2004;  Urban Housing Demolition Management Regulations of the PRC issued in 2001;  Urban Housing Demolition Management Regulations of the PRC (2001, State Council Decision Decree 305);  Temporary Regulations of Farmland Acquisition Tax, 2008;  Guangxi Zhuang Autonomous Region Guidelines for Implementation of the Urban House Demolition Management Regulation of the PRC, 2003;  Decree 15 of Guangxi Zhuang Autonomous Region People’s Government: Implementation Methods for Regulations on Village and Town Planning and Construction in Guangxi Zhuang Autonomous Region;  Notification on Announcement for Average Production Value for Land Acquired and Demolishment Compensation Standards for the Construction Land Use of GZAR Basic Infrastructures and Important Projects [Guifagaifagui (2009) 52];  Implementation Methods of GZAR Farmland Occupation Tax [Guizhengfa (1987) 88 Hao 59];  A New Round of Unified Standard of Annual Output Value Document [Qinzhengfa (2013) No.6];  Notice of the Qinzhou Municipal People's Government Office Issued Interim Measures on Qinzhou Collective Land Expropriation Compensation and Resettlement Construction Management (Qin, 2012 No. 217);  Study on Land Expropriation and Requisition, Housing Demolition and Young Crops and Ground Attachments Compensation Standard (Qingangguanyue2014 No. 14);  Approved Land Acquisition Compensation Standard of Qinzhou Xincheng Road Network (Qingangguanyue2015 No. 78);  Interim Provisions of Famers' Demolition Reconstruction Land Related Issues for Full Acquisition Team (Qingangguanfa [1998] No. 62);  ADB's Involuntary Resettlement, Manila, 1995;  Handbook on Resettlement: A Guide to Good Practice, ADB Manila, 1998;  Gender Checklist: Involuntary Resettlement, ADB Manila, February 2003;  OM Section F2 — Operations Manual: Bank Policies (BP) and Operational Procedures (OP), ADB, Manila, 2006; and,  ADB’s Safeguard Policy Statement, Bank Policy Operating Handbook OM F1 (January 20, 2010).

4.1 Eligibility and Principles of Compensation

236. The Project affected persons (APs) are those who are physically displaced (relocation, loss of residential land, or loss of shelter) and/or economically displaced (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected area. All landowners and users and occupants of structures in the Project areas affected by land acquisition and relocation as a consequence of the Project will be eligible for fair compensation and rehabilitation according to the types of losses and quantities before the cut-off date determined by Qinzhou Municipal Government. The cut-off date for the compensation will be announced to all APs immediately afterward, within the completion date of the construction map and investigation; any newly cultivated

land, or planting of crops or trees, or structures built after the cut-off date determined by the local government will not be compensated.

237. The principle of the compensation and entitlements established for the Project are to: Improve, or at least restore, the livelihoods of all displaced persons through (i) land-based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible; Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status.

4.2 Compensation Standards and Entitlements

238. Compensation for the land loss, structures, auxiliaries and other assets, basic infrastructures and facilities will also be paid directly to the affected owners. The compensation will be made in the forms of “cash” for land compensation for the permanent loss of land, and “cash + house plot” for structure compensation in centralized resettlement site of Jiduntou RC. The relocated households will get relocation allowance and temporary transit allowance. The cut-off date will be determined by QMG in collaboration with relevant organizations involved, including PMO, IA, QLRB, QHDAO, and district government. Illegal land-use, construction of temporary structures will not be compensated after the notification of cut-off date. QMG, IA, QLRB and QHDAO could take photos/video of the places on the cut-off date to prevent further influx beyond the cut-off date. QMG will publicize the cut-off date on newspaper of “Qinzhou Daily” and community / village bulletin board once the date is decided. The cut-off date will usually be upon the completion of DMS. Table 7 presents the eligibility, compensation rates and entitlements.

Table 7: Eligibility, Compensation Rates and Entitlements Agency Type of Losses Level of Impact Entitled Persons Compensation Policy & Standards Responsible Permanent land Collective Land Provide "cash" compensation to The compensation rate for land loss to PMO,GQLIICL, acquisition The project will permanently all APs. affected people: CNY 45,400 / mu for paddy QLRB, RC and (94 rural acquire a total of 140.7331 mu of land, CNY 40,200 / mu for slop land, CNY RO households and collective land (including 17.872 Land compensation for 32,000 / mu for vegetable land , and 317 rural mu of paddy land, 96.7193 mu of permanent land acquisition will CNY39,000 / mu for forest land. The population) slope land, and 26.1418 mu of be paid to each affected family. compensation rate includes the basic price forest land). of land compensation, resettlement subsidy, young crop fee, and land acquisition reward. Residential Total demolition area is 8,263.25 All APs will be provided with Compensation for the affected structures at PMO,GQLIICL, buildings (52 rural m2 of private houses (including "house plot + cash" centralized full replacement costs of materials and QLRB, QHDAO, households or 231 4,618.86 m2 brick-concrete and planned resettlement. labors with no deduction for depreciation or Qinzhou Port rural population) structure, 1,109.98 m2 tile-wood salvageable materials. District structure, and 2,534.41 m2 simple The cut-off date will be Government, shed) determined by QMG in The compensation standards for structures and RC and RO collaboration with relevant are: CNY 1,250/m2 for brick-concrete, CNY organizations involved, 850/m2 for tile-wood structure, and CNY including PMO, IA, QLRB, 500/m2 for simple shed. The relocation QHDAO, and district subsidy will be provided to the affected government. Illegal land-use, people at CNY 500 per person, temporary construction of temporary transitional allowance at CNY 200/person structures will not be per month or 20 m2/person for free transition compensated after the house (or CNY 400/person for transitional notification of cut-off date. subsidies without provision of transitional QMG, IA, QLRB and QHDAO house) for a maximum of 12 months. The could take photos/video of the compensation for lost of working days due to places on the cut-off date to relocation is CNY 500 per household. House prevent further influx beyond plot land: according to the population, a the cut-off date. QMG will house plot land for each household, 20 publicize the cut-off date on m2/person, maximum 80 m2, exceeding the newspaper of “Qinzhou Daily” population, free of charge to arrange 40 m2 and community bulletin board apartment. If the affected households sign once the date is decided. the agreement on time, each household will

receive CNY 2,500 to CNY 5,000 for timely Relocation allowance and agreement signing award. temporary transit allowance in cash will be provided to the APs Infrastructures and Basic Infrastructures and Special All affected owners will receive Cash compensation for owners affected by PMO, GQLIICL, special facilities Facilities: 62 cement concrete, an assessed replacement value infrastructures and special facilities: RC, Qinzhou 4,000 meters communication at equivalent cash CNY950/each for cement concrete, CNY Port District optical cable, 4,000 meters compensation. 80/m for communication optical cable, CNY Government, RC overhead communication optical 50/m for overhead communication optical and RO cable, 4,000 meters high-voltage cable, CNY 1,850/m for high-voltage electricity power line, 4,000 electricity power line, CNY 265/m for meters low-voltage electricity low-voltage electricity power line, CNY power line, 2 transformer, and 3,500/each for transformer, CNY 315/each 104 street light for street light

5. Resettlement and Rehabilitation Plan

239. The overall objectives of the resettlement program are for the affected people to be offered with livelihood opportunities, for the labor force to be resettled properly, and for the living and production conditions of the APs to be improved or at least not worse-off than before the Project. The basic principles of the resettlement and rehabilitation plan are as follows:

240. For people losing land permanently, “cash” compensation will be provided to the APs. The PMO, IA, RO and local government will provide necessary assistance during LAR implementation. The measures for economic rehabilitation include: (i) provision of 500 person-years of employment opportunities to the local people, including the APs in labor force during the Project construction and 120 public welfare job positions during operational phases if the APs prefer to take the jobs; (ii) Developing tertiary industry such as construction machinery and equipment rental, grocery store, clothes retail, food catering service, transportation, taxi, goods delivery service, hairdressing salon, dry cleaning, entertainment, hotel, tours, etc.); (iii) provision of social insurance, with 40% contribution from the local government and 60% contribution from rural collectives and farmers; (iv) annual employment opportunities generated induced by the Project and related urban development projects. The QMG will coordinate with relevant departments, including the owners of the job positions, labor and social security bureau and district government to arrange the APs to be employed for these job positions; (v) provision of technical training to 218 APs in labor force to increase their skills to be employed in institutions, enterprises and businesses.

241. For the people who will lose their land temporarily, standing crops compensation will be paid to the affected persons in cash. Land restoration fee is included in project fee and paid to contractors. The Project construction will generate 500 person-years or 182,500 person-days short-term employment opportunities. The APs will be given priority to be employed during the 27 months project construction with income earnings at over CNY 1,500 to CNY 2,500per month.

242. For residential houses structures to be demolished, cash compensation will be provided to the relocated families to purchase new houses in the resettlement site of Jiduntou RC. The households that have to be relocated will also receive a relocation allowance, relocation transit allowance and lost of working days. Compensation for ground attachments will be paid to the affected owners.

Employment Opportunities Generated by the Project 243. During the project construction phase, APs can seek some income generation opportunities, mainly providing services related to the Project construction, such as renting spare houses (if available) to the construction contractors as temporary office or to the construction workers as residence, operating grocery kiosks, and providing food, cigarettes and breweries to the construction teams. Also during the construction period, the PMO and IA will offer 500 persons / year temporary unskilled employment job opportunities, such as excavation for pipeline and structures and soil and earth transportation, to the local people including the APs.

244. During the Project operational period, the APs with suitable qualifications will be employed and receive on-the-job training. Women and the poor will be given priority to be employed by the Project. After the construction of the road has been completed, it is planned that about 120 public welfare position jobs shall be provided for the APs based on discussion with the IA: 30 landscape workers, 30 road maintenance, 20 safeguard and 40 cleaners. Such employment to be generated by the Project will be provided to the APs as priority if they apply for. The ratio of employment for men and women will be 1:2. The salary will be over CNY1,500 to CNY 2,500 per month. As a result, the APs could get access to additional

income generation opportunities and additional income. Therefore, the APs will benefit from the resettlement of the Project.

Provision of Technical Training to the APs 245. In order to create a self-development environment and rehabilitate the living standard of the APs in a short time, the RO and IA will cooperate with the departments of Labor and Social Security, Finance, Education, S&T, WF to carry out the technology skill training for the relocated APs. The technology training will be consistent with the district economic features, requirements of the labor market and the enterprises to ensure that the training is practical, efficient and targeted.

246. In order to create a self-development environment and rehabilitate the living standard of the APs in a short time, the RO and IA will cooperate with the departments of Labor and Social Security, Finance, Education, S&T, WF to carry out the technology skill training for the relocated APs. The technology training will be consistent with the district economic features, requirements of the labor market and the enterprises to ensure that the training is practical, efficient and targeted.

247. By taking into consideration of lack of working skills for the major labor force of the affected households, especially women, the IA will ensure that at least 50% of the trainees will be females. After training of occupational skills, the APs could get jobs in the city. A total of CNY 500 per person has been budgeted as training cost to cover the cost of training provided to the APs.

248. The training will be carried out twice a year, commenced from June 2017 and last till June 2019. The training will be implemented in association with local district government, RC, WF, and vocational education department. The training will be provided to all APs with labor force, especially the women. For each training, at least 50% of women should be included. The training includes:

6. Cost and Schedule

249. The cost estimate for land acquisition and resettlement is CNY 33.1595 million or US$ 4.8764 million at the prices of 2017, including compensation for permanent land acquisition, temporary land occupation, residential house demolishment, auxiliaries, relocation allowances, infrastructures and special facilities, relevant land taxes, M&E, other costs, and contingency. The land acquisition and resettlement activities will occur between August 2017 and December 2018. Construction will not take place before the APs are fully compensated and relocated, and all arrangements are made to commence the livelihood rehabilitation activities and the APs are registered for these. Internal and external monitoring of the RP implementation will be conducted to ensure successful implementation of the RP.

APPENDIX 2: TOR for External Monitoring and Evaluation

A. Introduction

250. According to the requirements stipulated in the “Regulations on Construction Supervision” promulgated by the Ministry of Construction of the People’s Republic of China (PRC) in 1995, all construction projects shall be properly supervised. It is also a requirement of the Asian Development Bank (ADB) that loan projects that result in land acquisition and resettlement be properly monitored and evaluated. In order for the implementation of the land acquisition and resettlement program of the Guangxi Beibu Gulf Cities Development Project to comply with the provisions of the Resettlement Plan (RP), monitoring of implementation, both “internal” and “external”, will be carried out during and after the implementation of the Project.

251. An independent monitoring agency (Monitor) will be engaged through competitive tenders for the external supervision, monitoring and evaluation. The Consultant will be a PRC consulting entity who has experience in ADB or World Bank projects dealing with resettlement issues.

252. Monitoring and evaluation will include, but not be limited to:

 Monitoring the progress and effectiveness of RP implementation; and,  Evaluation of income restoration and post-resettlement conditions of the APs and host communities.

B. Objectives and Requirements of Monitoring and Evaluation

253. The objectives of monitoring and evaluation are to assess if the land acquisition and resettlement is implemented in accordance with the RP and if the goals and principles of the RP are achieved. Specifically, monitoring and evaluation will focus on the following aspects of the APs’ situation and the resettlement process.

 Economic situation prior to and after displacement of land or structures;  Timely disbursement of funds;  Environmental conditions;  Social adaptability after resettlement;  Rehabilitation of the vulnerable groups;  Measures taken to restore affected production and livelihoods of the AP; and,  Living conditions and economic status of APs following resettlement in comparison to the non-affected household in the Project area.

254. Monitoring and evaluation will include the establishment of socioeconomic baselines of the APs prior to land acquisition or physical relocation, and the regular monitoring of their relocation or adjustment during Project implementation, and evaluation of their situation for a period of one or two years afterwards. Qualitative and quantitative methods will be used to evaluate the standard of living of the APs. Investigation will include interviews with IA, local officials, resident leaders, and survey of 20-25% of affected households. Focus group discussions can be conducted to address issues related to women, poor, and other vulnerable groups.

C. Monitoring Indicators

255. The following indicators will be monitored and evaluated in accordance with principles, entitlements and rehabilitation strategies/plans set out in the RP:

 Disbursement of entitlements to affected households: compensation, reconstruction land, reconstruction house land, employment, and necessary assistance as specified in the RP.  Development of economic productivity: job opportunities available to APs, number of APs employed or unemployed.  Restoration of basic infrastructures and special facilities: all necessary infrastructures and special facilities should be restored at the resettlement sites at least up to a standard equal to the standard at the original location; the compensation for all infrastructure and special facilities should be sufficient to reconstruct it to the same quality.  Level of AP’s satisfaction: level of APs’ satisfaction with various aspects of the resettlement program; the operation of the mechanisms for grievance redress will be reviewed and the speed and results of grievance redressal measures will be monitored.  Standard of living: Throughout the implementation process, the trends in standards of living will be observed and the potential problems in the way of restoration of standards of living will be identified and reported. The Consultant will carry out a comprehensive socioeconomic survey after the completion of resettlement implementation to document the standards of living and the conditions of the APs after resettlement. The survey will be conducted annually for two years, or until most affected households have fully restored their living standards and income generation.  Social adaptability and cohesion: impacts on children, the elderly and other vulnerable groups, public participation, APs’ attitudes and reaction to post resettlement situation, number of complaints and appeal procedures and resolution, implementation of preferential policies, income restoration measures, and improvements in women’s status.

D. Special Considerations

256. Special attention/provisions specified in the RP will be paid to women, the poor and vulnerable groups during monitoring; these include:

 The status and function of women: Closely monitor any change in women’s status, function and situations. At least 40 % of APs surveyed will be women. The monitoring and evaluation agency will also provide recommendations and assistance to the EA in respect of women’s issues.  Care and attention to vulnerable groups if identified during implementation process: closely monitor living conditions of the poor, elders, the disabled, and other vulnerable groups after resettlement, to ensure that no hardship is experienced.  Monitoring and evaluation will provide information on utilization and adequacy of resettlement funds. The Qinzhou Audit Bureau will audit resettlement accounts and funds. The details of this audit will be made available to the IMA.

E. Contents and Distribution of Independent Monitoring Reports

257. A monitoring report will include, among other things:

 conclusion of investigation and evaluation;  major existing and potential problems;  recommended mitigation or prevention measures which will be incorporated into a revised plan if necessary; and,  assessment of previous follow-up actions.

258. The IMA will forward copies of the reports to the Asian Development Bank. The PMO will also submit a resettlement completion report to the ADB, to be followed by post-resettlement impact evaluation reports by the monitor, which should provide further evidence whether adverse effects of the Project have been mitigated adequately, and at least non-affected household income levels have been restored for the APs.

F. Monitoring Schedule

259. The Monitor will provide the ADB, PMO, IA, RO, QLRB, QHDAO and relevant departments with monitoring reports every six months during resettlement implementation and annual evaluation reports as well within 2 years after the completion of resettlement implementation. Table 1 provides the resettlement monitoring and evaluation schedule.

Table 1: Schedule for Resettlement Monitoring and Evaluation No. Report of M&E Date 1 Baseline Survey of Socioeconomic Information Dec 2016 - Apr 2017 2 First Monitoring Report Dec 31, 2017 3 Second Monitoring Report Jun 30, 2018 4 Resettlement Completion Report Dec 31, 2018 5 First Annual Evaluation Report Dec 31, 2019 6 Second Annual Evaluation Report Dec 31, 2020