Social Audit Report

Project Number: LN2960 15 March 2014

PRC: Dynagreen Waste-to-Energy Project Social Audit Report for Anshun Waste-to-Energy Plant

Prepared by Dynagreen Environmental Protection Group Company Limited for the Asian Development Bank

This social audit report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section of this website.

Dynagreen Waste-to-Energy Project

Social Audit Report for Anshun Waste-to-Energy Plant

March 15, 2014

Contents 1 Introduction ...... 1 2 Involuntary Resettlement ...... 3 2.1 SUBPROJECT DESCRIPTION...... 3 2.2 HISTORY OF LAND ACQUISITION AND HOUSE DEMOLITION ...... 4 2.3 SCOPE OF LAND ACQUISITION AND RESETTLEMENT IMPACTS ...... 5 2.4 COMPENSATION RATES AND INCOME RESTORATION FOR LAND ACQUISITION ...... 9 2.5 COMPENSATION RATES AND RELOCATION FOR HOUSE DEMOLITION ...... 10 2.6 SPECIAL MEASURES TO THE VULNERABLE GROUPS ...... 13 2.7 GENDER CONSIDERATIONS ...... 13 2.8 INSTITUTIONAL ARRANGEMENT, BUDGET ...... 14 2.9 INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION ...... 14 3 Indigenous Peoples ...... 18 4 Other Social Issues ...... 19 4.1 EMPLOYMENT AND LABOR ...... 19 4.2 PROTECTION OF WOMEN’S RIGHTS AND INTERESTS ...... 19 4.3 COMMUNITY RELATIONSHIPS ...... 19 5 Conclusion ...... 20 6 Corrective Action Plan ...... 21 Appendix I: Related Documents ...... 22 Appendix II: Signed Tables for Land Compensation ...... 23 Appendix III: Signed Agreement for House Demolition...... 3824

Contents of Tables and Figures

Table 1- Relevant National Laws, Regulations and Guidelines ...... 1 Table 2- Comparison of Economic Indicators in 2013 (Unit: CNY) ...... 4 Table 3- Summary of Compensation Payments ...... 4 Table 4- Structures Demolition Impacts ...... 8 Table 5- Summary of Project Impacts ...... 9 Table 6- Interest Generated by the Compensation ...... 10 Table 7- Compensation Rates for Houses and Ground Attachments ...... 11 Table 8- Implementation Schedule for House Demolition and Relocation ...... 13 Table 9- Resettlement Budget ...... 14 Table 10- Summaries of Consultation Meetings ...... 14

Figure 1- Project Location ...... 3 Figure 2- Signed Compensation Table ...... 5 Figure 3- Acquired Land ...... 7 Figure 4- Houses to be Demolished ...... 8 Figure 5- Relocation Site ...... 12 Figure 6- Rural Bus Stop ...... 12 Figure 7- Land Acquisition and Cut-off Date Notice ...... 16 Figure 8- Participation in DMS ...... 17

Abbreviations

AAOV Average Annual Output Value ADB Asian Development Bank AHs Affected Households APs Affected Persons DMS Detailed Measurement Survey EIA Environment Impact Analysis FGD Focus Group Discussion FSR Feasibility Study Report HD House Demolition LA Land Acquisition LAR Land Acquisition and Resettlement LRB Land Resource Bureau M&E Monitoring and Evaluation MSW Municipal Solid Waste WTE Waste to Energy PRC People’s Republic of China

1 Introduction

1. Project Description. The project will address the need to treat MSW in small and medium-sized cities and supply electricity to the local grid. The ADB loan will be channeled through Dynagreen to fund a series of WTE subprojects with total capacity of up to 6,300 tons of MSW per day and to generate approximately 610 gigawatt-hours of electricity annually by 2018. Each subproject incinerates waste, recovers waste heat for power generation, purifies waste gas, and disposes of ash. This social audit report covers the Anshun WTE Subproject.

2. Objectives and Scope of the Report. Land acquisition and resettlement activities of Anshun WTE subproject are being implemented by the local government. The ADB’S assistance to Dynagreen falls under the category of 'Corporate Finance' in Safeguards Requirements 4 (Special Requirements for Different Finance Modalities, section H) of the 2009 ADB Safeguards Policy Statement (SPS). 1 As required by the SPS, a Social Safeguards Compliance Audit was undertaken by Mr. Zhou Jian for Dynagreen’s past and present performance with regard to managing social dimensions of Anshun WTE subproject, particularly on land acquisition and involuntary resettlement, indigenous peoples/ethnic minority issues, labor and working conditions, stakeholder engagement, among other related issues.

3. The purpose of the Social Safeguards Compliance Audit is to determine the nature and extent of all social areas of concern at the Anshun WTE facility and with corporate practices. The audit was performed in accordance with the SPS, as well as applicable local environmental, social, and occupational health and safety regulatory requirements in the PRC.

4. Methodology. In the course of conducting the social safeguards audit for the subproject, the following was undertaken: (i) a desk review of the Dynagreen’s existing environmental and social management system; (ii) a review of relevant national laws, regulations and guidelines related to social impact assessment, land acquisition, ethnic minorities and consultation and participation, which are presented in Table 1; (iii) interviews with the Dynagreen’s Management and key technical staff, representatives of Jiaozishan Township Land Resource Office, local people from the village collective from whom lands were acquired in February 2014; and (iv) site inspection of the subproject. The documentary review and interviews were carried out during the course of the site visit with an aim to assess the labor and working conditions, land acquisition and involuntary resettlement, indigenous peoples, and gender and development. The desk review also included a review of project documents and literature including pre-approval of land using, land acquisition and compensation agreement with village, and consultation documents.

Table 1- Relevant National Laws, Regulations and Guidelines Type Laws, Regulations and Guidelines ò Land Administration Law of the People’s Republic of China (effective from January 1, 1999, amended on August 28, 2004); ò Law of the People’s Republic of China on Administration of the urban Involuntary Real Estate (1994); and Resettlement ò The document 28: State Council’s Decision to Deepen Reform and Strictly Enforce Land Administration Issued by State Council in October 2004. ò Regulations on the Protection of Basic Cultivated land (No.257 Decree of the State Council of The People’s Republic of China on December 27, 1998);

1 The Safeguards Policy Statement is available from http://www.adb.org/Documents/Policies/Safeguards/default.asp 1

Type Laws, Regulations and Guidelines ò The Land Administration Law of People’s Republic of China (effective as of January 1, 1999, latest version on August 28, 2004); ò The Implementation Rules for The Land Administration Law of People’s Republic of China (Decree No.256 of the State Council, effective from January 1, 1999); ò Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration (SC [2004] No.28, effective from October 21, 2004); ò Guidelines on Improving the System of Land Compensation and Resettlement (the Ministry of Land and Resources [2004] no. 238); ò Real Property Rights Law of the People’s Republic of China (No. 62 order of the President of People’s Republic of China, and effective as of October 1, 2007); ò The Administrative Measures for the Pre-view of Land Use for Construction Projects of the local government (No.42 Order of The Ministry of Land and Resources, effective as of January 1, 2009); ò Regulations on the Expropriation of Houses on State-owned Land and Compensation (Decree No.590 of the State Council, effective from January 21, 2011); and ò Regulations on Appraisal of the Houses on State-owned Land (No.77 of the Ministry of Housing and Urban-rural Development effective as of June 3, 2011). ò Ethnic Minority Autonomous Religion Law of PRC(effective from October 1, 1984, amended on February 28, 2001) Indigenous ò Notice of State Council on the Establishment of Ethnic Minority Villages Peoples (1983); ò Regulation on the Work of Administrative Urban Ethnic Minority (effective from September 15, 1993) ò Labor Law of the People’s Republic of China (effective from January 1, Other social 1995) issues ò Law of the People’s Republic of China on the Protection of Rights and Interests of Women (effective from October 1,1992)

2 Involuntary Resettlement

2.1 Subproject Description.

5. On December 31 2011, Anshun Municipal Government and Dynagreen signed the Build- Operate-Transfer (BOT) agreement to construct the Anshun Waste-to-Energy (WTE) plant. According to the BOT agreement, all land acquisition and resettlement activities will be implemented by the local government. The proposed Anshun WTE Plant has a daily treatment capacity of 700 tons of urban waste, and an annual generating capacity of 84.289 million kWh. The total investment of the Project is RMB 353 million.

Figure 1- Project Location

6. Location. The city of Anshun (25°21′～ 26°38′N, 105° 13′ ～ 106°34 ′E) lies in the middle western of Guizhou Province, covering an area of 9,627 km2, under the administration of Guizhou Provincial Government. The area of Anshun consists of 1 district, 5 counties and 1 economic development zone. The Dayuan village within which the project located is under the administration of the Jiaozishan Township in Xixiu District of Anshun City.

7. In 2013, the GDP of Anshun city achieved CNY 42.785 billion by a growth rate of 15.4%. The fiscal revenue attained a growth of 15.5% at CNY 7.025 billion. Farmers’ average net income was amounted to RMB 5,810 and the disposable income of urban residents was RMB 18,841. According to Table 2, the farmer’s average net income of Xixiu District is higher than the level of Anshun City and Guizhou Province due to the contribution of the income generated from the non-agricultural activities such as salary income and income from operating business. Xixiu District is the political, economic and cultural centre of Anshun City. The distance between Xixiu and Guiyang (the capital of Guizhou Province) is only 90 kilometers, so that a lot of local people go to Guiyang to seek job opportunities.

Table 2-Comparison of Economic Indicators in 2013 (Unit: CNY) Xixiu Anshun Guizhou District City Province Farmers’ average net income1 7,745 5,810 5,434 Disposable income of urban residents 22,040 18,841 20,667 1 Net income includes agricultural and nonagricultural incomes. Data source: 2013 Yearbook.

8. On 6 January, 2014, the national government approved the Guian (Guizhou-Anshun) New Area as the 8th national State-level new area. State-level new area is an economic development zone supported by the central government of China to oversee the development and construction of zone within the city. The state-level new areas are given special preferential policies and privileges directly approved by the State Council. These special preferential policies and privileges of the state-level new areas is to encourage and attract new developments to speed up the city's economy. The Guian New Area locates between Guiyang and Anshun city, and will bring more job opportunities to local people.

2.2 History of Land Acquisition and House Demolition

9. Site Selection Report of Project was issued by Xixiu District Land Resource Bureau on 10 December 2012, which is presented as appendix I. Detailed measurement survey (DMS) of the land was done in October 2013 and all compensation was paid to affected households(AHs) and village collectivity in middle November 2013.

10. Figure 2 is one example of the signed tables for the compensation money, and all signed tables are attached in Appendix II. The summary of compensation payments made is presented in Table 3. The name of the head of affected households, the area of the affected land, the compensation rate, the total amount of compensation and the bank account are all included in the signed table. The compensation was directly paid to the bank account.

Table 3- Summary of Compensation Payments No Type of land Area Compensation Rate Compensation Recipient (mu) (yuan/mu) (yuan) of the compensation 1 Contracted land to 165.249 40,800 6,742,159.2 Affected HHs farmers 2 Collective land 1.15 40,800 46,920 Village committee Subtotal 166.399 40,800 6,789,079.2

Figure 2- Signed Compensation Table

11. House demolition Impacts. On 30 November 2013, entrusted by Jiaozishan Township Government, an appraisal agency named Anshun Shunxin Demolition Company did the DMS of the affected houses. All affected 14 households have signed the house demolition and compensation agreement on 20 December 2013, and one example of the signed agreement is presented in appendix III. All compensation will be paid to the AHs before the end of April 2014 and house will be demolished before the end of August 2014.

2.3 Scope of Land Acquisition and Resettlement Impacts

12. In November 2013, 166.399 mu collective land were acquired permanently, including 150 mu for the construction of the plant (within the red line) and 5 mu land for the access road. During DMS and consultation, some APs expressed that they cannot farm on the remaining 11.399 mu land, because: (i) after land acquisition, there is no access road to the remaining land; (ii) productivity will decrease because the plant boundary wall will block the sunshine and crops will not grow; and (iii) nearly all of this piece of land was acquired and it’s difficult to farm on the remaining little area of land. All such types of land were also acquired and this is the common practice in China. Based on the interviews, the APs were all satisfied with this result. The land has been transferred to the project company and leveling of ground is being conducted, as presented in Figure 3. Among the 166.399 mu land, 1.15 mu land was village collectivity land 5

and 165.249 mu was contracted to the households. Totally, Land acquisition affected 56 HHs and 224 persons.

Figure 3-Acquired Land2

2 The pictures were taken on 10 February, 2014. 7

13. The distance between the plant and the existing substation is 4 kilometers. To connect to the local grid, there is no need to acquire of any additional collectively owned land, as the transmission lines were laid in right of way of the existing road.

14. According to the result of DMS, 143 households and 54 persons will be affected by house demolition in the buffer zone (300 meters). Totally, 7,044.96 m2 houses and other ground attachments will be demolished. All affected houses are residential. There is no shop and enterprise affected.

Table 4- Structures Demolition Impacts Types of affected structures Unit Quality Brick-concrete m2 5181.08 Brick-wood m2 512.20 Houses Frame m2 512.45 Simple m2 839.23 Subtotal 7044.96 Concrete Pavement m2 2096.65 Ground Attachments Wall M3 201.03 and Pond M3 76.13 Infrastructure earth-retaining wall M3 218.11 Yard m2 2409.05

Figure 4-Houses to be Demolished

3 In EIA, it’s said 9 households will be demolished. These 9 households are big family, including small families. 8

Table 5-Summary of Project Impacts Types of impacts Area AHs APs Remark Collective land 1 166.399 mu 56 224 acquisition 1.1 cultivation land 165.249 mu 56 224 Waste land 1.2 1.15 mu 0 0 (footpath in a field) Residential house These households also affected 2 7,044.96 m2 14 54 demolition by land acquisition Subtotal 56 224

15. Totally, 56 households and 224 persons are affected by this project. Among them, 6 households are ethnic Miao people and 4 households are poor. Detailed analysis on ethnic minority is presented in Chapter 3.

2.4 Compensation Rates and Income Restoration for Land Acquisition

16. Land compensation rates were calculated based on the Guizhou Provincial Land Administrative Regulation (effective from 1 January 2001), and Approval of Adjustment of Integrated Land Price Issued by Guizhou Provincial Government (Qianfuhan, 2009[255], effective on 1st January, 2010). Integrated land price for the acquired land is CNY 40,800 per mu, which includes the land compensation and resettlement subsidy. The compensation rate for the standing crops is CNY 1,200 per mu, which is the AAOV. Totally, the cost for land acquisition is CNY 6.8 million.

17. The compensation rate is 34 times of the AAOV. Interviews with the local affected farmers verify that they are all satisfied with the rate based on the following reasons and analysis: ò Agricultural income averagely only accounts for 30% of the household’s total income. The per capita land loss of the project is 0.7 mu and the per capita registered farmland holding is 1.5 mu, so the land loss percentage is 47%. However, as this is the mountain area, the farmers have reclaimed some mountain land for cultivation. So the actual land loss rate is less than 30%, according to the interviews in the village. The income loss induced by land acquisition is less than 9%. ò In the project area, the older people take most of the agricultural activities, and the young people prefer to migrate out to the big cities to find jobs. During the gravest time, the young people always go back home to help the older people and the women. After land acquisition, they are released from the land and can get higher income. ò The compensation rate is regarded as relatively high. If the affected farmers deposit the compensation fund in the bank, the annual interest is CNY 1,326, which is higher than the net income from the land. The older people are especially satisfied with this. They don’t need to farm on land and the interest is even higher.

Table 6-Interest Generated by the Compensation Compensation rate Annual interest rate Annual interest Net income form land 40,800 yuan/mu 3.25% 1,326 1200

18. So land acquisition has minor impacts on local household’s income. Most of the households have deposited the compensation money in the bank, and some decide to spend with the compensation for the houses to rebuild better houses. The interest from depositing the compensation in the bank can be regarded as the pension to the old people, and their livelihood is better than before. In addition, the following measure have been taken to make the living condition of the APs be better than before: (1) Now, the land leveling of the plant is being done. 200 job opportunities have been provided to the local farmers, and the female accounts for half. Priorities have been provided to the affected households. Land leveling started from February and will continue until April 2014. These 3 months are the slack season, and each farmers can get around CNY 10,000 income. (2) the village is close to the downtown of Xixiu District, AND this is the advantage of developing vegetable planting. Agro-technicians of Jiaozishan Township had given skills training on vegetable cultivation to farmers of Dayuan Village in February 2014, including management skills in winter and spring, and pest control. 19. During operation period, there will be 20 service job opportunities, such as kitchen service staff and cleaners. Priorities will be provided to the affected persons, and mainly for women.

2.5 Compensation Rates and Relocation for House Demolition

20. For the affected house and ground attachments, before finalizing the compensation rates, Anshun Shunxin Demolition Company entrusted by Jiaozishan Township Government did the appraisal based on replacement cost or market value and discussed with the owners. The compensation rates are presented in Table 7.

21. The demolished area per household is 503 m2, so the moving subsidy and transition subsidy is around 5,000 yuan. The transition period will be 3 months. According to the interview, the affected households will rent the houses in the village, and some will live with their relatives. The cost for rent is nearly 600 per month, so the transition subsidy is sufficient.

Table 7- Compensation Rates for Houses and Ground Attachments Types of affected structures Unit Compensation rate Brick-concrete Yuan/m2 1,900 Brick-wood Yuan/m2 1,300 Houses Frame Yuan/m2 2,200 Simple Yuan/m2 580 Subtotal Concrete Pavement Yuan/m2 150 Wall Yuan/M3 340 Ground Attachments Pond Yuan/M3 340 earth-retaining wall Yuan/M3 340 Yard Yuan/m2 90 Award Yuan/HH 50,000 Moving subsidy Yuan/m2 10 Transition subsidy Yuan/m2 10 Other subsidies Electricity meter Yuan/set 529 Tap water meter Yuan/set 740 Wire television Yuan/set 260

22. The Jiaozishan Township Government, the Dayuan Village Committee and affected households have discussed for resettlement area. After consultation meetings and discussion, the site was finally selected by the APs, and they are satisfied with the location. The relocation housing plots belong to the Dayuan village, not the contracted farmland. The new relocation site is only 150m away from the original place and close to the rural bus stop. All APs will still live in the same village.

Figure 5-Relocation Site

Figure 6-Rural Bus Stop

23. Each household will be allocated 130 m2 housing plots after the construction of the infrastructure of the relocation site finished. The APs expressed that they prefer to build three- floors houses after house demolition as they think this is an opportunity to improve the living condition. And the township government will provide design help to them. Also, if there is family member who will get married and need to build a new house, they also will be allocated new 12

housing plots. The AHs can use the material from the old houses for the new houses to save some money. Local government is responsible for accessing of road, power supply and water supply and the land levelling. 24. All house demolition and compensation agreements were signed in December 2013. The local government and village committee is doing some preparation activities for the relocation sites. An implementation schedule is presented in Table 8. Table 8-Implementation Schedule for House Demolition and Relocation Number Activity Deadline 1 Identification of Resettlement Site February 28, 2014 (completed) 2 Payment of compensation April 30, 2014 3 Site planning and distribution of March 30, 2014 individual housing plots to APs 4 Completion of road, power supply and April 30, 2014 water supply and the land levelling 5 Awarding of Approval of Construction May 30, 2014 house on the plots to APs 6 Demolition of affected houses May 30, 2014 7 Construction of new houses Start date: 1 June, 2014 End date: August 30, 2014 8 Transfer to new houses September 2014

2.6 Special Measures to the Vulnerable Groups 25. There are 4 poor households affected by land acquisition. Among them, one household lost 25% land, and other 3 households only lost less than 5% land. The key reason for poverty of these households is lacking of labor force or disease. They all have deposited the compensation in the bank to get the higher interest, so that their income loss from the land can be compensated. 26. Now, these households are receiving the assistance each year from the village committee, including special subsidy during the Chinese Spring Festival, 75 kilograms rice and some clothes. After land acquisition, based on the applications from the village committee, the Jiaozishan Township Government included these households into the Rural Minimum Living Standard System, and they can get the 45 yuan subsidy per month. 27. The following support measures will be provided to the poor households: (i) These HHs have the priority to get the job opportunities generated by the project if they want; (ii) The village committee will provide labor support during harvest time if they need.

2.7 Gender Considerations 28. The proportions of men and women in the affected area are largely equal. In the affected village, women enjoy the same legal rights as men, including land contracting, education receiving, family planning, and community election. Most of the interviewed female laborers think that they have the same autonomy in production and business operation as male citizens, and may elect to work, do small business or farm freely.

2.8 Institutional Arrangement, Budget

29. Land acquisition was/being implemented by the government agencies, including Xixiu District Land Resource Bureau, Jiaozishan Township Government and the Dayuan village committee. ò Xixiu District Land Resource Bureau was responsible for handling, checking and approving land acquisition and house demolition procedures, and managing and supervising the implementation activities. ò Jiaozishan Township Government participated in the impact survey and another key task is responsible for developing the resettlement site, land levelling, site planning, constructing the village road, power supply and water supply etc ò Village Committee was charge of checking owners of the land, solving relevant grievance as the first channel, holding villagers meeting, allocating housing plots, and proving necessary support measures to the poor households.

30. The total budget for land acquisition and resettlement is 23 million yuan, as shown in table 9. According to the BOT agreement, all resettlement cost will be paid by Xixiu District Government.

Table 9-Resettlement Budget No 1 Land acquisition CNY 6,789,079.20 2 House demolition 15,534,540.18 3 Construction for the relocation site 695,000.00 3.1 Water supply 45,000 3.2 Power supply 320,000 3.3 Road 250,000 3.4 Land leveling 80,000 Total CNY 23,018,619.38

31. The following funds are allocated for annual external monitoring and reporting: CNY 50,000.

2.9 Information Disclosure, Consultation and Participation

32. During the implementation of land acquisition and resettlement, great importance was paid to the public participation, and 2 consultation meetings were organized with the village committee, government organizations and the villagers. Public participation had made good achievements, and the needs of the villagers were incorporated into the implementation. Table 10 summaries the results of the 2 meetings.

Table 10-Summaries of Consultation Meetings number Location Date Participants Key concerns of APs Solution measures of APs 2 officers from Disclosing the DMS result Have done. Xixiu District Village Cash compensation for Yes, cash compensation 2013- LRB; committee 56 land was paid. 09-30 2 officers from office The compensation should Jiaozishan Have done. township directly paid to the AH’s 14

number Location Date Participants Key concerns of APs Solution measures of APs government; bank account, not 2 Villager leader transferring through several government agencies. 1 officer from Yes, an appraisal agency Xixiu District The compensation rates was entrusted by the LRB; for houses should be the government. All Village 2013- 2 officers from market price. compensation rates are committee 14 10-15 Jiaozishan acceptable to the APs. office township Housing plots should be Yes, the relocation site is government; provided in the village. still within the village. 2 Villager leader

33. Before the DMS for land, Jiaozishan Township Government posted the notice in the village and set 30 September 2013 as the cut-off date. See Figure 7.

Figure 7- Land Acquisition and Cut-off Date Notice

34. During impact survey, resettlement offices at all levels encouraged participation of the APs. It was the requirement of “five–party participation” that representatives of Xixiu District LRB, Jiaozishan Township Government, Appraisal Agency, village leaders and villagers affected participated in determination of tenure of land, compensation types and area. The results of the impact survey, including areas of affected land and houses, total compensation money and bank account were disclosed for 15 days before signing the agreement. Some pictures of DMS are presented as Figure 8.

Figure 8- Participation in DMS

35. Appeals and Grievance Redress. Complete appeal and grievance system had been established to deal with the problems induced by land acquisition and house demolition, so the APs could find relevant department for their appeal and grievance. Steps of appeal and grievance are shown as the following. ò If any AP is aggrieved by any aspect of the resettlement, he/she can state his/her grievance and appeal to the village committee in oral or in written form. If an oral appeal is made, the village committee will record it on paper and process it. The village committee will make a decision on or resolve it in two weeks. ò The aggrieved AP can state the grievance and appeal to the Jiaozishan Township Government in oral or in written form. The Jiaozishan Township Government will decide on or resolve it in two weeks. ò If the aggrieved AP is not satisfied with the decision of the township office, he/she can appeal to the Xixiu District LRB, which will reach a decision within two weeks.

36. According to Administration Procedure Law of the People’s Republic of China, the APs could appeal to administration departments who had administration rights for arbitration. If the APs were still dissatisfied at the decision of the arbitration, they could appeal to a people’s court according to the civil procedural law after receiving the decision of the arbitration.

37. Up to now, those agencies had not received any appeal and grievance for land acquisition and house demolition. And the appeals and grievance redress system will run until the HHs affected by house demolition move to the new houses.

3 Indigenous Peoples

38. Ethnic minority population in Anshun city is 1.03 million, which is 39% of the total population of 2.65 million. The main ethnic minority group is Buyi, Miao, Qilao, Hui Muslim.

39. Among the 56 affected households, 6 households are Ethnic Miao. They all speak the same language as Han. They do not face any social discrimination and can benefit the same from the project. Due to their long-term interaction and inter-marriage with the Han which is the dominant group in the village, most of the practices of the two groups became indistinguishable. Because they have no particular belief system and associated ritual on farming, the conversion of farmland for project use did not result to any loss of intangible cultural element. Neither do they have specific cultural requirements for land transfer and conversion that the project must comply with.

4 Other Social Issues

4.1 Employment and Labor

40. Dynagreen follows the China Labor Law (1994) strictly with particular attentions paid to the well-being of all staff in PRC. Dynagreen provides social benefits to staff members that include pension insurance, medical insurance, maternity insurance, unemployment insurance, work injury insurance and a social housing fund. Dynagreen also prefer to cooperate with the contractors who are compliance with China Labor Law. For example, when the Labor Supervision Station of the Labor Bureau goes to the project site, Dynagreen will work closely with the government to check if the contractors are compliant.

41. Dynagreen has guidelines of procedures and standards requirement and they are clearly documented. Every new staff will be given a job training and orientation via immediate supervisor. Further trainings would also be given via group discussion and learning activities.

42. Dynagreen gives local labor a priority. Dynagreen encourages the civil works contractors to hire workers from the local community. For the contractors, they also prefer to employ local people as this will save the cost, although there is no provision in the contract with the contractors. For Anshun WTE plant, 85 job opportunities will be generated during operation and at least 80% will be hired locally in Guizhou. For local employment, even there is no agreement with the local government, Dynagreen will employ more for saving cost and can quickly adapt to the city.

4.2 Protection of Women’s Rights and Interests

43. The Human Resource Department of Dynagreen has appointed staff to be responsible for the women’s affairs. Dynagreen upholds gender equality and provides equal employment opportunities for men and women during project design, construction supervision, and plant operation. Dynagreen is sensitive to the special needs and vulnerabilities of women. Priorities are provided to women if the jobs are more appropriate for female staff, such as in the financial and human resource department, technology research and development center. Dynagreen complies strictly with the Law of the People’s Republic of China on the Protection of Rights and Interests of Women (1992). All women staffs have maternity insurance. Women are organized for tour and are given gifts during women’s day.

44. Among the total 85 staff in Dynagreen’s headquarter, there is 21 female staff, accounting for 25%. Dynagreen encourages the contractors to provide equal employment opportunities to women. Dynagreen prefers to have cooperation with the partners who don’t have discrimination on women. Among the 85 jobs which will be generated during Anshun WTE plant operation period, it’s estimated that at least 20% can be provided to female staff, which are mainly laboratory, financial, and administration positions. Also, there will be 20 service job opportunities, such as kitchen service staff and cleaners, will be provided to the local villagers, and mainly for women.

4.3 Community Relationships

45. Anshun plant management has established good rapport with the community close to the plant. The local villagers have been employed during the plant land leveling, and the benefit- 19

sharing mechanism is a good basis for the harmonious community relationship. During operation, it will hold a regular tour of plant facilities for village representatives and explains the actual operation of generators, anti-odor measures, wastewater treatment, flue gas emission control, and residue disposal and whether they meet environmental standards. Also, the Anshun plant will do support for the middle school to organize environment protection awareness education.

5 Conclusion

46. The design of the subproject has been optimized to minimize the occupation of farmland and house demolition. Dynagreen has not been involved in any new land acquisition activities and does not foresee additional land acquisition for the Anshun WTE Plant. All land acquisition and house demolition activities were/being implemented by local government.

47. Land acquisition, compensation and fund disbursement have been conducted in accordance with the Land Administration Law of the People’s Republic of China and the applicable regulations of Guizhou Province, and the affected households were satisfied. House demolition is being implemented. The compensation and entitlements provided to the APs and the AHs satisfy the requirement of ADB 2009 SPS S2. All mitigating measures implemented complied with ADB SPS SR2 requirements, and there is no outstanding noncompliance issue.

48. An effective organizational system has been established for the Project at all levels. The responsibilities of the agencies concerned are well defined and their staff is well trained, thereby promoting the successful implementation of land acquisition and resettlement.

49. During project preparation and implementation, many public participation activities were conducted to address the concerns of the affected households, such as the detailed measurement survey, the compensation rates, the disbursement of the compensation fees and the location of the relocation sites.

50. The grievance redress channel for the displaced persons is unobstructed and effective, and the displaced persons know the appeal channels.

51. The Project expects to bring non-discriminatory benefits to all residents as it improves the general environmental health and sanitation in the service areas. The affected ethnic minority people will not face any social discrimination and can benefit the same from the project. So this subproject does not trigger ADB SPS SR 3 on Indigenous Peoples.

52. Dynagreen strictly follows the Labor Law of the People’s Republic of China, the Law of the People’s Republic of China on the Protection of Rights and Interests of Women, and other applicable laws and regulations. Protecting the rights and interests of labor and women are protected practically. Requirements under ADB’s Social Protection Strategy (2001) with respect to core labor standards which are not inconsistent with national labors are being complied and this will be monitored continuously and included in the regular monitoring reports to ADB.

6 Corrective Action Plan

53. There is no outstanding noncompliance issue with respect to the land acquisition and compensation arrangements agreed with the affected village and persons. There are also no remaining issues related to ethnic minority aspects of Anshun WTE Plant. In addition to the relatively high compensation standards, the rehabilitation program implemented by the local government is adequate. Special assistance has been provided to the poor households and job opportunities during operation stage will be provided to them if they want. There is no need for the Project Company to implement prepare and implement a livelihoods restoration plan in addition to the activities done by the local government. No corrective action is required.

54. As house demolition and relocation is being implemented, with respect to Dynagreen’s commitment to comply with ADB SPS requirements, the payment of compensation and relocation to the 14 households needs to be monitored so that projects using ADB financing actually do not cause these households to be worse off as a result of Anshun WTE Plant project. Dynagreen will engage the services of a resettlement external monitor to review and report on the relocation activities. The external monitoring report will submitted to ADB by the end of December 2014.

55. Hence, the external monitoring report needs to be prepared for Anshun WTE plant, covering the following topics: ò Payment of the compensation for the affected houses and other ground attachments; ò Development of the resettlement site and provision of basic facilities (e.g. village road, water and power supply] by Jiaozishan Township Government and rebuilding of new housing by APs. ò If any grievances received during the house relocation period and the measures to solve; ò Public consultation activities held during the house relocation period; ò Special support measures to the poor households affected by land acquisition;

Appendix I: Related Documents

Title : Site Selection Report was approved by Xixiu District Land Resource Bureau Date: 10 December 2012 Provisions: Totally, 10 ha land in Dayuan village within Jiaozishan Township in Xixiu District of Anshun City will be acquired for the WTE plant.

Appendix II: Signed Tables for Land Compensation

Appendix III: Signed Agreement for House Demolition

Main provisions of this agreement have been reflected in the section 2.5.

The agreement includes the areas to be demolished and the total compensation.