46050-002: Hubei Huanggang Urban Environment Improvement Project

Social Monitoring Report

#5 Semiannual Report January 2019

People's Republic of China: Hubei Huanggang Urban Environment Improvement Project

Prepared by National Research Center for Resettlement, Hohai University for the People's Republic of China and the Asian Development Bank.

CURRENCY EQUIVALENTS (as of 15 December 2018)

Currency unit – yuan (CNY)} CNY1.00 = $0.1447 $1.00 = CNY6.9109

ABBREVIATIONS ADB – Asian Development Bank AH – affected household AP – affected person FGD – focus group discussion GAP – gender action plan HD – house demolition HMG – Huanggang Municipal Government HPMO – Huanggang Project Management Office HUCIC – Huanggang Urban Construction Investment Co. Ltd. IA – implementing agency LA – land acquisition M&E – monitoring and evaluation NED – New Eastern District NRCR – National Research Center for Resettlement PIC – project implementation consulting PPMS – project performance management system RP – resettlement plan SAP – social action plan

WEIGHTS AND MEASURES 1 hectare – 15 mu

NOTE In this report, "$" refers to US dollars.

This social monitoring 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.

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.

ADB-financed Huanggang Integrated Urban Environment Improvement Project

External Resettlement Monitoring and Evaluation Report

(No.5)

National Research Center for Resettlement January 2019

M&E agency National Research Center for Resettlement, Hohai University (NRCR)

Project leader Chen Shaojun

Prepared by Chen Shaojun, Zhu Yi, Zhao Yaoyang, Shi Lei

Address Hohai University, no.8 Focheng West Road, Jiangning District, Nanjing, Jiangsu

Postcode 210098

Tel 0086-25-83786503

15366141153

Fax 0086-25-83718914

E-mail [email protected]

Contents 1. Summary ...... 1 1.1 Project Introduction ...... 1 1.2 Overview of the RP ...... 1 1.3 External Resettlement M&E ...... 2 1.3.1 Scope ...... 2 1.3.2 Key Points ...... 3 1.3.3 Procedure ...... 3 1.3.4 Methods ...... 4 2. Organizational Structure ...... 9 2.1 Agencies ...... 9 2.2 Capacity ...... 9 2.3 Evaluation and Suggestions ...... 10 3. Resettlement Implementation M&E ...... 12 3.1 Land Approval Progress ...... 12 3.2 Change of Resettlement Impacts ...... 12 3.3 Resettlement Progress ...... 15 3.3.1 LA ...... 15 3.3.2 Demolition of Residential Houses ...... 15 3.3.3 Demolition of Non-residential Properties ...... 15 3.3.4 Attachments ...... 16 3.4 Funds and Disbursement ...... 19 3.4.1 LA ...... 19 3.4.2 HD ...... 22 3.4.3 Fund Disbursement Process ...... 22 3.5 Resettlement Policies and Rates ...... 22 3.5.1 LA ...... 22 3.5.2 HD ...... 24 3.5.3 Young Crops and Attachments ...... 27 3.5.4 Tax Rates ...... 27 3.6 Evaluation and Suggestions ...... 27 3.6.1 Evaluation ...... 27 3.6.2 Suggestions ...... 28 4. Sampling Survey ...... 29 4.1 Basic Information ...... 29 4.1.1 Population and age ...... 29 4.1.2 Land contracting ...... 29 4.1.3 Annual income ...... 30 4.1.4 Annual expenditure ...... 30 4.1.5 Net income ...... 31 4.2 Resettlement Satisfaction Survey ...... 31 5. Livelihood Restoration ...... 34 5.1 Cash Compensation ...... 34 5.2 Social Security ...... 34 5.3 Agricultural restructuring measures ...... 35 5.3.1 Crop cultivation ...... 35 5.3.2 Aquaculture ...... 35 5.4 Commercial Development...... 36 5.5 Nonagricultural employment measures ...... 37 5.5.1 Public welfare jobs ...... 37 5.5.2 Social jobs ...... 37 5.5.3 Jobs generated by the Project ...... 38 5.5.4 Small-amount startup loans...... 38 5.6 Skills Training ...... 38 5.7 Supplementary RP for Baitan Lake Fish Farm ...... 39 5.8 Evaluation and Suggestions ...... 39

III

6. Gender and Social Development ...... 40 6.1 GAP Monitoring ...... 40 6.1.1 Implementation progress ...... 40 6.1.2 Key Points and Next-step Plan ...... 43 6.2 SAP Monitoring ...... 43 6.2.1 Implementation Progress ...... 44 6.2.2 Key Points and Next-step Plan ...... 45 7. Public Participation and Grievance Redress ...... 46 7.1 Public Participation ...... 46 7.2 Grievance Redress ...... 48 7.3 Evaluation and Suggestions ...... 50 7.3.1 Evaluation ...... 50 7.3.2 Suggestions ...... 51 8. Conclusions and Suggestions ...... 52 8.1 Conclusions ...... 52 8.2 Suggestions ...... 54 Appendix 1: Land Approval...... 56 Appendix 2: Surveying and Delimitation Results ...... 57 Appendix 3: LA Compensation Agreements of HGH-C1.2, 1.4, 1.5, 1.6 and 1.7 ...... 59 Appendix 4: LA Compensation and Land Pre-reservation Agreements of HGH-C1.9 ...... 61 Appendix 5: Payment Vouchers and Disbursement Application ...... 64 Appendix 6: Monitoring matrix of SAP and GAP ...... 68 Appendix 7: Interview Minutes ...... 72

Abbreviations

ADB - Asian Development Bank AH - Affected Household AP - Affected Person FGD - Focus Group Discussion GAP - Gender Action Plan HD - House Demolition HMG - Huanggang Municipal Government HPMO - Huanggang Project Management Office Huanggang Urban Construction Investment HUCIC - Co., Ltd. IA - Implementing Agency LA - Land Acquisition M&E - Monitoring and evaluation NED - New Eastern District NRCR - National Research Center for Resettlement PIC - Project Implementation Consulting PPMS - Project Performance Management System RP - Resettlement Plan SAP - Social Action Plan

Units

Currency unit = Yuan (CNY) USD1.00 = CNY6 1 hectare = 15 mu

1. Summary 1.1 Project Introduction In order to protect and improve the urban environment, the Huanggang Municipal Government (HMG) has applied for a loan of $100 million with the Asian Development Bank (ADB) for the Huanggang Integrated Urban Environment Improvement Project (hereinafter, the “Project”). The gross investment in the Project is $252.6 million. The Project consists of the Urban Lake and River Improvement, Solid Waste Collection and Transfer System, and Capacity Development and Institutional Strengthening components. See Table 1-1. HMG is executing agency of the Project, and Huanggang Urban Construction Investment Co., Ltd. (HUCIC) is the implementing agency (IA). The Project has a construction period of 4 years, breaking ground in June 2016, and is expected to be completed in December 2019. In order to build the area around Baitan Lake into a demonstration area of urban-lake symbiosis and ecological livable, medium-term adjustment was made in the first half of 2018, and 8 new projects were added. The planned construction period of the project is from 2018-2019. Details of the new projects are shown in table 1-2.

1.2 Overview of the RP According to the RP updated in May 2016, LA for the Project affects Groups 4 and 5, and Zhaizhoujie Community, Nanhu Farm; Lukou, Wangjiawan, Baizhangzui and Cigang Villages, Lukou Town; and Baitan Lake Fish Farm in Huangzhou District. 1) 8,687.2 mu of state-owned land will be occupied for the Project, including 162.6 mu of non- irrigated land (1.9%), 2,494.5 mu of state-owned fishpond (28.7%), 1.7 mu of garden land (0.02%), 141.5 mu of construction land (1.63%), and 5,886.71 mu of water surface (67.8%), affecting 187 households with 727 persons; 2) 798.6 mu of collective land will be acquired for the Project, including 120.3 mu of irrigated land (15.06%), 188.2 mu of non-irrigated land (23.56%), 418.2 mu of fishpond (52.36%), 39 mu of woodland (4.88%), and 33 mu of construction land (4.13%), affecting 130 households with 444 persons; 3) 77.5 mu of collective land will be occupied temporarily for the Project, including 57.9 mu in Cigang Village and 19.6 mu in Baizhangzui Village, affecting 42 households with 184 persons. As of May 2016, when the RP was last updated, LA compensation for Baitan Lake Fish Farm had been completed (see the Resettlement Due Diligence Report). Although LA has occurred in other areas, such land is so-called pre-reserved land without being approved by the land and resources authority. In addition, a 900m long, 6m wide new non-motor vehicle lane was added at the preliminary design stage as compared to the FSR, to occupy 8.1 mu of land in Baitan Lake Fish Farm. This land had been acquired before project commencement, affecting no one. The Project’s HD impacts are as follows: Properties of 6,018.15 m2 will be demolished for the Project, including residential houses of 5,366.78 m2 (4,402.1 m2 in masonry concrete structure and 964.68 m2 in masonry timber structure), attachments of 651.42 m2, affecting 23 households with 115 persons; and non-residential properties of 11,038 m2, including 8,974 m2 in frame structure (81.3%), 2,026 m2 in masonry concrete structure (18.35%) and 38 m2 in masonry timber structure (0.34%), affecting two entities with 5 persons. The

Project will also affect some ground attachments, including toilets, wells, canals, roads and trees. See Table 1-2 and Table 1-3.

Table 1-2 Profile of new added subprojects

No. subject project implementation scope and scale Dongtai and Dongchang River junction Junction between Dongchang River, Dongtai River and 1 opening project Nanhu Avenue Qingshui River east extension and Dongchang Avenue to Jiangbei first class highway Shugong River section, L=750m 2 Qingshui River east extension to Chushui River section, New construction of Shugong River L=1653m 3 New construction of Yangbo Road Chibi Avenue-Hubin Avenue, L=2125.8m, B=8m Waterfront recreation area 4 8,000m2 artificial wetland Artificial wetlands Waterfront recreation area, 5000m3 storage tank 5 Rainwater storage tank City image area, 10000m3 storage tank 6 Wuqi Port Section in Huanggang Polytechnic School, L=1880m Nanhu pumping station water intake Water intake channel, L=305m 7 channel and sluice construction Channel and sluice, Q=30m3/s 8 Changhe regulating sluice Q=85.7m3/s

Table 1-3 Resettlement Impacts of the Project

District Huangzhou Baitan Lake Nanhu Lukou Total Village/community Fish Farm Farm Town Group 0 3 5 8 Permanent LA (mu) 7914.5 772.7 798.6 9485.8 Temporary land occupation (mu) 0 0 74.46 74.46 Residential houses 0 0 6,018.15 6108.15 HD (m2) Non-residential properties 10573 0 465 2894.41 Ground attachments (m2) 0 2408 8866 11274 Households affected by LA only 0 216 120 336 Population affected by LA only 0 869 371 1240 Permanently Households affected by both LA and HD 0 0 23 23 affected Population affected by both LA and HD 0 0 115 115 population Public institutions 0 0 2 2 Population 0 0 5 5 Subtotal 0 869 491 1360 Temporarily HHs 0 0 7 7 affected Population 0 0 28 28 population

1.3 External Resettlement M&E 1.3.1 Scope This report is the No.5 external M&E report of the project and aims to sum up the resettlement work of the project by the end of December 2018, find out issues in resettlement and propose solutions accordingly. This report covers the institutional arrangements, progress of resettlement implementation, public participation, grievance redress, etc. According to the updated RP, LA for the Project affects Groups 4 and 5, and Zhaizhoujie Community, Nanhu Farm; Lukou, Wangjiawan, Baizhangzui and Cigang Villages, Lukou Town; and Baitan Lake Fish Farm in Huangzhou District. Nanhu Farm was restructured in 2015, but the administrative divisions described in the RP are still used here for the sake of convenience.

According to this survey, it is found that there no longer exists the Group 4, Group 5, and Group 6 after restructuring. The current Group 4 belongs to the Xinnong Community and Group 5 belongs to the Jiezhou Street Community, and Group 6 belongs to the Chengdong Community. For the convenience of description, this report is still described in terms of Group 4, Group 5 and Group 6. See Table 1-4. Table 1-4 LA and HD Impacts of the Project

No. District Township Village Village groups Remarks 1 Baizhangzui Village 4, 5 2 Cigang Village 12 3 Lukou Village 10, 15, 16, 17 4 Wangjiawan Village 1, 2, 3, 6, 7 Xiahu Fish Farm Affiliated directly to Lukou Town Lukou Town Xiejiaxiaowan Village Huayuan Village 5 Huangz A little part belong to Chengdong hou Santaihe Village 1, 3, 5 district, and most parts belong to High-Tech Development Zone 6 Group 4 7 Group 5 Nanhu Farm State farm Zhaizhoujie 8 Community Baitan Lake Affiliated directly to the district 9 Fish Farm aquatic bureau, state-owned

The Project consists of 3 components, which are Urban Lake and River Improvement Component, Solid Waste Collection and Transfer System Component and Capacity Development and Institutional Strengthening Component. Furthermore, the Urban Lake and River Improvement Component comprises 13 contracts, the Solid Waste Collection and Transfer System component has 3 packages, including an equipment package, and the Capacity Development and Institutional Strengthening Component has 7 contracts. HGH-C1.1 has been completed; HGH-C1.3 and HGH-C1.9 has been completed by over 90%; HGH- C1.10, HGH-C1.12, HGH-C1.6 and HGH-C1.4 are under construction. See Table 1-5. 1.3.2 Key Points The task force is headed by Prof. Chen Shaojun, and is composed of 3 full-time social and resettlement experts. This report is the No.5 external M&E report of the Project and aims to sum up the resettlement work of the Project as of December 31, 2018; find out issues in resettlement and propose solutions accordingly. This report covers resettlement progress, sampling survey, public participation, institutional arrangements, grievance redress, etc. 1.3.3 Procedure  Preparing the terms of reference of M&E  Designing a sampling plan  Baseline survey  Establishing a M&E information system  Follow-up survey  Compiling and analyzing information  Preparing M&E reports

1.3.4 Methods Sampling survey: A sampling survey was conducted in Lukou Town, covering population, land, housing, income and expenditure, properties, public participation, satisfaction with resettlement, etc. During the survey, the AHs were notified of the next follow-up survey. They will be tracked until their income is restored. This survey covered 83 AHs, including 61 households affected by LA, 22 households affected by HD, 36 AHs in Nanhu Farm and 47 AHs in Lukou Town. FGD: FGDs were held with heads of HPMO, Baitan Lake Fish Farm, Nanhu Farm and Lukou Town, and 98 AHs in 9 village groups to learn LA, HD and resettlement impacts. Literature review: Documents, agreements and reports on LA, HD and resettlement were referred to and verified. Key informant interview: Staff of HPMO and Lukou Town, heads of Baitan Lake Fish Farm, Baizhangzui, Cigang, Lukou, Wangjiawan, Xiejiaxiaowan and Huayuran villages, Santaihe Village of High-Tech Development Zone, Xiahu Fish Farms, and Nanhu Farm Street Office, and some APs were interviewed to collect resettlement information, and comments and suggestions on resettlement implementation.

Table 1-1 Basic Information of the Project

No. Component Scope of construction Resettlement impacts 1) Dredging 539,405 m3 of bottom sludge for Baitan and Chiye Lakes, Sludge dredging of Baitan and Involving resettlement, and rebuilding natural water circulation; Chiye Lakes, and ecological completed before the 2) Constructing 14km ecological embankment, including 89ha embankment Project vegetation buffer, and 2.8km embankment reinforcement for Baitan and Natural wetland Involving LA and HD Chiye Lakes; Artificial wetlands and settling Within the lake area, a. Lake 3) Constructing 80ha natural wetlands beside Chiye Lake and Chushui tanks involving no Improvement River; resettlement 4) Constructing 4 natural wetlands totaling 3.8ha, and 4 settling tanks Round-the-lake road and Involving LA and HD totaling 1.525ha beside Baitan and Chiye Lakes; green belts Urban Lake 5) Constructing 13.3km non-motor vehicle lanes beside Baitan Lake; Equipment procurement Involving no 1 and River 6) Constructing two sluices on the Linglong and Jinshui Rivers; resettlement Improvement 7) Purchasing waste collection and water quality monitoring equipment 1) Dredging 201,000 m3 of bottom sludge and excavating 343000 m3 of Reconstruction of Linglong, Involving LA bank soil for 4 rivers, broadening 7 rivers, and rebuilding natural water Jinshui, Dongqin, Qingshui, circulation between lakes and rivers; Canglang, Dongchang and 2) Constructing 21.6km ecological embankment, 42.6ha vegetation Chushui Rivers, and canal b. River buffer, and 17.7ha aquatic vegetation, and reinforcing 2.5km landscaping Improvement embankment for 7 rivers; Regulating sluices: Linglong Included in the already 3) Constructing and upgrading two sluices on the Linglong and Jinshui River, and the junction acquired land Rivers; between Jinshui and Santai 4) Constructing 3 pedestrian bridges on the Jinshui and Chushui Rivers Rivers 1) Constructing 30t/d waste transfer stations; Included in the land Solid Waste Collection and 2) Purchasing vehicles to collect, transfer and compress solid waste, and 260 recycling dustbins; already acquired for 2 Transfer System 3) Solid waste separation trial based on community participation Urban Lake and River Improvement 1) Providing management support for successful and timely project implementation in accordance with Not involving LA ADB procedures and guidelines 2) Providing enhanced institutional support to improve sectoral and operational performance, including sustainable development strategy, transition of economically and socially integrated rural areas to Capacity Development and urban areas, and occupational training support; solid waste management strategic planning, integrated 3 Institutional Strengthening urban environmental management planning, operator capacity enhancement; and other technical support, to be reflected in the Draft Final Report (DFR) 3) Publicity activities on lake ecosystem, environmental protection, public health, and solid waste separation and recycling 4) Technical support for resettlement and external environmental monitoring

Table 1-5 Basic Information of Contracts Involving Resettlement

Lake Improvement Chiye Lake dredging Hunan Completed by HGH- Jul. 26, Bestall 809.35 1.226 NCB Yes Q2/2016 200 100% and C1.1 2016 Dredging accepted Co., Ltd. Baitan Lake dredging Hunan HGH- Nov. 28, Bestall Completed by 2161.8 3.275 NCB No Q3/2017 300 C1.2 2017 Dredging 30% Co., Ltd. Chiye Lake ecological Roadbed Guizhou embankment and reinforcement, completed by HGH- Nov. 28, Construction and associated works 5749.35 8.711 NCB No Q3/2016 300 3,590m or 99%, C1.3 2017 Engineering about to be Group inspected Baitan Lake ecological Being surveyed, embankment and reinforcement, Wating Hubei Yitong Jiangcheng Road HGH- and associated works 11378.754 17.241 NCB No Q3/2017 500 for ADB’s Construction under C1.4 approval Co., Ltd. construction, completed by 3% HGH- 89ha green buffer belt (north Bid not 5449.3862 8.257 NCB No None 360 - C1.5 30ha) opened HGH- 89ha green buffer belt (south/east Bid not 12144.7944 18.401 NCB No None 540 - C1.6 59ha) opened HGH- 80ha of natural wetlands, 4 Bid not 18638.2926 28.240 ICB Yes None 720 - C1.7 artificial wetlands opened Waterweed planting, ecological HGH- fishery and bottom fauna Bid not 13304.0849 20.158 NCB No None 540 Q2/2018 C1.8 rehabilitation of Baitan and Chiye opened Lakes Component 1: Urban Lake and River Improvement—1.b:

River Improvement HGQ- Integrated management of the 4310 6.530 NCB No Q4/2016 300 Mar. 6, Hunan Linglong and

Confirmed Unit Prior Announcement Contract procurement Procurement Construction Contract Description ($00m) ADB date (quarter / Bid winner Progress code plan (0,000 mode period (d) date 6.60 review year) yuan) C1.9 Linglong and Jinshui Rivers (civil 2017 Bestall Jinshui River works, including regulating Dredging regulating slices, sluices) Co., Ltd. pedestrian bridge and Jinshui waterway completed by 95% Integrated management of the HGQ- Aug. 25, Completed by Qingshui, Canglang, Dongqin and 5851.3 8.866 NCB No Q1/2017 300 Bid opened C1.10 2017 75% Dongchang Rivers (civil works) Integrated canal management of the Linglong, Jinshui, Qingshui, HGQ- Bid not Canglang, Dongqin, Dongchang 8604.85 13.038 NCB No None 360 - C1.11 opened Rivers (landscaping and waterweed planting) Integrated management of the Jiangxi HGQ- Chushui River Sep. 15, Chengyuan Completed by 2938.07 4.452 NCB No Q4/2016 360 C1.12 2017 Construction 65% Co., Ltd. HGH- Lake and river management – Bid not 2277.1305 3.450 NCB No None 480 - C1.13 electric installation opened Component 2: Solid Waste Bid not - Collection and Transfer System opened Solid waste collection and HGG- Bid not transfer system (30t/d transfer 487.8 0.739 NCB No None 180 - C2.1 opened station and jetty) Public awareness campaigns and Bid not HTA2.1 education for solid waste 61.5 0.093 CQS No None 450 - opened management Equipment Bid not - opened Solid waste collection and HGG- Bid not transfer vehicle and rubbish 340 0.515 NCB No None 180 - M2.2 opened collection boats Subtotal 94506.4626 143.192

Confirmed Unit Prior Announcement Contract procurement Procurement Construction Contract Description ($00m) ADB date (quarter / Bid winner Progress code plan (0,000 mode period (d) date 6.60 review year) yuan) Component 3: Capacity Development and Institutional Strengthening Project implementation consulting Easen HTA 3.1 814.875 1.325 QCBS Yes - - - International HTA 3.2 External resettlement monitoring 61.5 0.100 CQS No - - - NRCR External environmental China EPE monitoring (Beijing) Int’l HTA 3.3 30.75 0.050 CQS Yes - - - Consulting Co., Ltd. Water quality model and Xingfu Bid not HTA 3.4 Port water pollution management 184.5 0.300 QCBS Yes - - - opened system Initial implementation support Cao HTA 3.5 (financial management and 27.675 0.045 ICS Yes - - - Yongqiang procurement) Initial implementation support Gao HTA 3.6 9.225 0.015 ICS Yes - - - (engineering design review) Wenzhong Initial implementation support (RP HTA 3.7 9.225 0.015 ICS Yes - - - He Zhiyang review) Subtotal 1137.75 1.850 Total 95,644.21 155.519

2. Organizational Structure 2.1 Agencies In order to implement the RP properly, HMG has established the Huanggang Project Leading Group to lead the decision-making and construction of the Project and make overall coordination. HUCIC is responsible for raising and disbursing resettlement funds and applying for relevant licenses with the competent authorities.

Other agencies involved in the Project include the NED Construction Headquarters, HPMO, Resettlement Office, Huangzhou District Labor and Social Security Bureau, Nanhu Farm, Lukou Town Government, design agency, external M&E agency, etc. See Figure 2-1.

Figure 2-1 Organizational Chart for Resettlement

2.2 Capacity In order to ensure the successful implementation of resettlement, all resettlement agencies of the Project have been provided with full-time staff, and a smooth channel of communication has been established. See Tables 2-1 and 2-2. All resettlement agencies have been provided basic office, transport and communication equipment, including desks and chairs, PCs, printers, telephones, facsimile machines and vehicles. In August 2017, Dai Xiang who was formerly responsible for LA and Luo Cheng who was formerly responsible for resettlement resigned. HPMO engaged Hubei Chuyuan Engineering Construction Consulting Co., Ltd. to take charge of construction and resettlement management, which assigned Tan Anlin (responsible for LA) and Wu Zhixiong (responsible for resettlement).

The staff-training has been carried out in the first item in Table 6-3 of the updated RP. On August 18 and 19, 2016, the staff of HPMO went to Yichang City, Hubei Province for study and investigation. They visited the site of the ADB-financed Yichang Project, listened to the introduction of the Yichang Project, and deeply exchanged experience in resettlement, finance and project management and land approval with the Yichang PMO.

In the monitoring process, the external monitoring team of NRCR also carried out propaganda, explanation and communication of ADB social safeguard policies with HPMO.

Table 2-1 Staffing of Resettlement Agencies

Workforce Agency Composition Male Female Huanggang Project Leading Group 3 2 Civil servants HPMO 2 2 Civil servants, technicians Resettlement Office 5 2 Civil servants, technicians Hubei Chuyuan Engineering Construction 4 0 technicians Consulting Co., Ltd. Nanhu Farm 2 1 Civil servants Lukou Town Government 2 1 Civil servants Affected villages and communities 3 3 Officials, AP representatives Design agency 2 1 Engineers, senior engineers External M&E agency Some Some Resettlement experts, M&E staff

Table 2-2 Key Resettlement Officials

No. Agency Name Tel Duan Meisheng 0713-8454760 1 Resettlement Office Li Xiang 0713-8454760 Qiu Hong 0713-8453162 2 NED Construction Headquarters Biao Shandong 0713-8453162 Sun Haibing 0713-8453162 Luo Haifeng 0713-8341068 3 Nanhu Farm Lin Bowen 0713-8341069 Han Youhong 0713-8349160 Sun Chuping 13636029066 4 Nanhu Group 4 Liu Wenbing 13476578539 Zhan Xianglin 13508657660 5 Nanhu Group 5 Yang Zhigang 13986556776 6 Zhaizhoujie Community Liu Qiankun 18995768969 Dong Chengzhi 0713-8453152 7 Lukou Town Yang Lei 0713-8453152 8 Lukou Village Xie Aiwu 13807258836 9 Wangjiawan Village Xia Xiaoming 13477612070 10 Baizhangzui Village Long Feng 13636023995 11 Cigang Village Chen Dajiang 13476679967 12 Xiejiaxiaowan Village Xie Ping’an 18971717599 13 Huayuan Village Tu Zhenghua 13871987078 14 Santaihe Village Head Wang 13995948766 15 Baitan Lake Fish Farm Head Tu 18971715511

2.3 Evaluation and Suggestions The task force has identified some issues in the operation of the resettlement agencies similar to those in the previous rounds of M&E:

1) The LA and HD work is undertaken by the construction agent (namely Hubei Chuyuan Engineering Construction Consulting Co., Ltd.) mainly, and some work is out of its scope of duties. In addition, since the construction agent is not a government agency, and the LA and HD work is

burdensome and complex, it can hardly coordinate relevant issues, and LA and HD progress is affected.

2) In practice, the HPMO staff is limited and unstable, and works between the local government and the APs, resulting in some issues due to difficult or improper coordination, thereby affecting project progress.

HPMO should assign dedicated staff to assist the construction agent in coordinating relevant issues. Second, the construction agent should apply rational management and incentive mechanisms, and keep its staff stable, thereby ensuring stable and continuous project progress. In addition, the construction agent should sum up its work timely to improve its project management level and working efficiency. Except the construction agent, all agencies concerned should make clear and carefully perform their respective duties to promote successful project implementation.

3. Resettlement Implementation M&E Resettlement in scheduled to begin in June 2016 and be completed in June 2018. However, as of the date of this report, resettlement was still underway, the resettlement progress had been delayed 6 months compared to the plan.

3.1 Land Approval Progress On January 24, 2018, part of the land use application of HGH-C1.3 was approved by the Hubei Provincial Land and Resources Department (see Annex 1), including 59.2455 mu of collective agricultural land converted into construction land and 1.05 mu of collective construction land acquired in Wangjiawan, Lukou, Baizhangzui and Qigang Villages, and 44.247 mu of state-owned agricultural land converted into construction land in Baitan Lake Fish Farm and Huanggang Polytechnic School.

As of December 31, 2018, LA involved in other project packages had not been submitted for approval.

3.2 Change of Resettlement Impacts As of December 31, 2018, HGH-C1.1 (completed), HGH-C1.2, HGH-C1.3, HGH-C1.4, HGH- C1.5, HGH-C1.6, HGH-C1.7, HGH-C1.9, and HGH-C1.12 had been surveyed and delimited (see Annex 2). The data of HGH-C1.2, HGH-C1.4, HGH-C1.5, HGH-C1.6 and HGH-C1.7 was in the same report and could not be split. HGH-C1.4 has partly measured in 2017, and the rest is presented in this report. Some data of HGH-C1.9 was presented in previous report, there was some additional data in this report, and the contract is a pre-reservation one (pre-reserved land is land to be occupied in advance before land approval; it is treated as temporarily occupied land, and compensated for at the rate for permanent LA). HGH-C1.8 does not involve LA; the HGH-C1.10 data is being fine-tuned; HGH-C1.11 has not been measured. The reason for the data change is the adjustment of the boundary map. The amount of LA (by village) is shown in Table 3-1. The comparison between the actual data and the RP data is shown in Table 3-2.

Table 3-12Changes in the impact of project resettlement

RAP Actual Difference Contract Collective State owned Collective State owned Collective State owned land land land land land land HGH-C1.1 Temporary land 74.5 0 0 168.11 -74.5 168.11 occupation HGH-C1.2, 1.3, 1.4, 679.2 2496.1 1205.73 1664.61 526.53 -831.49 1.5, 1.6, 1.7 HGH-C1.8 Involving no LA HGH-C1.9 119.4 102.8 367.093 63.96 247.693 -38.84 HGH-C1.10 0 200.4 Data is being fine-tuned HGH-C1.11 0 610.9 Not yet surveyed and delimited HGH-C1.12 0 241.5 0.4 258.8 0.4 17.3 Total 873.1 3651.7 1573.223 2155.48 700.123 -684.92

Table 3-1 Resettlement Schedule

Construction Land type Village Contract Amount of LA / occupation Farmland Unused land land HGH-C1.3, 1.4 23.0565 22.2735 0.783 Wangjiawan HGH-C1.9 154.9395 (pre-reserved: 33.321) 154.9395 HGH-C1.2/1.4/1.5/1.6/1.7 148.9845 134.5245 1.7385 12.7215 HGH-C1.3, 1.4 15.4395 15.4395 0 Lukou HGH-C1.9 2.823 2.823 HGH-C1.2/1.4/1.5/1.6/1.7 181.794 150.9075 0.228 30.6585 HGH-C1.3, 1.4 64.0815 (pre-reserved: 48.4725) 63.8145 0.267 Collective Baizhangzui HGH-C1.12 0.399 0.399 land HGH-C1.2/1.4/1.5/1.6/1.7 592.281 454.119 22.368 115.794 HGH-C1.3, 1.4 87.5175 (pre-reserved: 81.327) 87.5175 0 Cigang HGH-C1.2/1.4/1.5/1.6/1.7 92.58 90.7875 1.0725 0.72 Huayuan HGH-C1.9 27.54 (pre-reserved: 19.3725) 27.54 Xiejiaxiaowan HGH-C1.9 88.503 (pre-reserved: 44.13) 88.503 Santaihe HGH-C1.9 69.225 (pre-reserved: 24.726) 69.225 HGH-C1.9 24.081(pre-reserved: 4.533) 24.081 Xiahu Farm HGH-C1.2/1.4/1.5/1.6/1.7 0.4665 0.4665 total 1057.824 HGH-C1.1 0.1905 0.1905 Huanggang HGH-C1.3, 1.4 2.118 2.118 0 Polytechnic School HGH-C1.2/1.4/1.5/1.6/1.7 43.4595 43.3215 0.138 HGH-C1.1 167.9145 167.9145 HGH-C1.3, 1.4 145.4115 (pre-reserved: 103.2825) 145.4115 0 HGH-C1.9 63.9525 (pre-reserved: 63.15) 63.9525 State own Baitanhu fishery HGH-C1.12 230.8095 230.8095 HGH-C1.2/1.4/1.5/1.6/1.7 1472.421 1076.3 28.875 367.2465 HGH-C1.12 27.9855 27.9855 HGH-C1.2/1.4/1.5/1.6/1.7 0.7305 0.7305 HGH-C1.10 348.171 327.8595 20.3115 Nanhu Farm HGH-C1.12 27.9855 27.9855 HGH-C1.2/1.4/1.5/1.6/1.7 0.7305 0.7305 HGH-C1.1 168.105 168.1 HGH-C1.3, 1.4 337.6245 (pre-reserved: 233.082) 312.24 25.3845 Total HGH-C1.9 431.064 (pre-reserved: 191.343) 431.064 HGH-C1.12 259.194 259.194

Construction Land type Village Contract Amount of LA / occupation Farmland Unused land land HGH-C1.2/1.4/1.5/1.6/1.7 2532.717 1951.157 54.42 527.1405

3.3 Resettlement Progress 3.3.1 LA

Baizhangzui, Cigang, Lukou, Wangjiawan,Huayuan and Xiejiaxiaowan Villages, and Xiahu Fish Farm in Lukou Town, and Santaihe Village in the High-Tech Development Zone will be affected by LA; Groups 4, 5 and 6 of Nanhu Farm, and Baitan Lake Fish Farm will be affected by the occupation of state-owned land.

As of December 31, 2018, the process of LA was shown in Table 3-3:

Table 3-23 The process of land acquisition

Contract Information about land acquisition Land acquisition agreement Completed, 168.11mu of land temporarily HGH-C1.1 None occupied (100%) 190.1 mu of collective land acquired and Agreements signed, including pre-reservation HGH-C1.3, 1.4 147.53 mu of state owned land occupied, agreements for 129.80 mu (see the No.2 M&E (Part) 100% completed report). 1,015.64 mu of collective land and 1,517.08 mu of state owned land allocated (100%) LA agreements with Baizhangzui, Cigang and HGH-C1.2, 1.4 HGH-C1.4 broke ground in Sep. 2018, and Lukou villages and Xiahu Farm signed for 868.803 (Part), 1.5, 1.6, measurement is underway at the construction mu of collective land (see Appendix 3), others not 1.7 site; the construction of Jiangcheng Road has signed been completed by 3%. HGH-C1.8 None - All agreements signed except for Baitan Lake Farm It has acquired 431.043 mu of collective land HGH-C1.9 and Santaihe village (See Appendix 4), including (100%) pre-reservation agreements for 193.43 mu LA progressing with construction, completed Agreements partly not signed; compensation not HGH-C1.10 by 77.66% to date paid HGH-C1.11 None - LA progressing with construction, completed Agreements partly not signed; compensation not HGH-C1.12 by 62.07% to date paid

3.3.2 Demolition of Residential Houses

According to the RP, properties of 6,018.15 m2 will be demolished for the Project, including residential houses of 5,366.78 m2 (all in Group 4 of Baizhangzui Village, Lukou Town, 4,402.1 m2 in masonry concrete structure and 964.68 m2 in masonry timber structure), attachments of 651.42 m2, affecting 23 households with 115 persons, which are also affected by LA.

As of December 31, 2018, HD had not begun in Baizhangzui Village, because it is proposed to relocate the LEFs in this village to the resettlement community for Wangjiawan Village where there are still some unoccupied houses for the sake of design optimization, but the LEFs think that they should have an exclusive community and have not approved this proposal, and don’t agree with LA and HD before the commencement of construction of such exclusive community. (See Appendix 7 for details.)

3.3.3 Demolition of Non-residential Properties

The non-residential properties to be demolished for the Project are the Shanhu breeding base

in Group 4 of Baizhangzui Village, and Baitan Lake Hotel (laid idle for many years) funded by the Huangzhou District River Sand Mining Authority. Non-residential properties of 11,038 m2 will be demolished for the Project, including 8,974 m2 in frame structure (81.3%), 2,026 m2 in masonry concrete structure (18.35%) and 38 m2 in masonry timber structure (0.34%), affecting 5 persons.

As of December 31, 2018, the Shanhu breeding base had been demolished, and the compensation assessed by Zhonglian Asset Appraisal Company had risen from 5.15 million yuan to 5.78 million yuan, of which, 5.6 million yuan had been paid in August 2018.

The demolition of Baitan Lake Hotel has not begun and is likely to be cancelled due to project design optimization.

3.3.4 Attachments

In HGH-C1.3, the attachments in Baizhangzui Village were counted together with those in Cigang Village and have been compensated for, and those in Cigang Village were confirmed and compensated for in 2017. However, there are disputes over the quantities of some attachments in Baizhangzui Village, and this should be further coordinated and verified. In HGH-C1.9, the attachments in Wangjiawan and Baizhangzui Villages, and Baitan Lake Farm were appraised in 2017, but there are disputes over the quantities of some attachments, and this also should be further coordinated and verified.

Table 3-34 List of demolished ground attachments in Cigang Village

Type Qty Peach tree 85.00 Chestnut tree 4.00 fruit tree Jujube tree 17.00 other fruit tree 10.00 Persimmon tree 1.00 Diameter<5cm 8588 5cm15cm 13.00 Shrub tree 2.00 nursery stock 1,714.00 Chicken house brick 516.95 House Brick 37.97 shed brick 8.21 Φ200mm pipe Cement 18 Channle brick 30 Φ300mm pipe Cement 9 Attachment facility of fish pond - 3 Sandstone road - 1428

Table 3-5 Summary of LA Information

HGH-C 1.1 HGH-C 1.3 HGH-C 1.5 HGH-C HGQ- HGQ- Unit HGQ-C1.10 HGQ-C1.11 HGH-C1.2 HGH-C1.4 HGH-C 1.6 1.7 C1.9 C1.12 I. Collective Land Planned LA area Mu 0 111.1 0 568.1 119.4 0 0 0 Actual LA area 0 190.1(C1.3&1.4) Boundary Survey in Mu 481.999 map 0.399 process 1,015.6395 (C1.2, 1.4 (including ring road), 1.5, 1.6 and 1.7) adjustment Already acquired area 190.1 Mu 0 0 0 0 0 0 0 (C1.3&1.4) Planned number of APs 0 49 (127) 0 56 (211) 52 (118) 0 0 0 Actual number of APs Not available II. State-owned land Planned occupied area Mu 5035.5 98.2 1765.7 632.2 102.8 200.4 610.9 241.5 Actual occupied area 147.5 Boundary Survey in Mu (C1.3&1.4) 0.8025 map 258.8 process 1517.0775 (C1.2, 1.4 (ring road), 1.5, 1.6 and 1.7) adjustment Already occupied area 147.5 Mu 0 0 0 0 0 0 (C1.3&1.4) Planned number of APs 0 0 0 0 0 28 (115) 111 (420) 23 (85) Actual number of APs Not available Number of affected 2 (Baitan C1.3: 2 (Baitan 2 (Baitan entities / villages 2 (Baitan Lake Fish Farm 1 (Baitan Lake Fish Lake Fish Farm Lake Fish Survey in and Vocational High - Lake Fish Farm and and Vocational Farm and process School) Farm) Nanhu High School) Nanhu Farm) Farm) III. Residential House 8 (Wangjiawan, Demolition Baizhangzui, Cigang, Lukou, Xiahu Fish Farm, Polytechnic School, Nanhu Farm, and Baitan Lake Fish Farm) (C1.2, 1.4 (ring road), 1.5, 1.6 and 1.7) Planned HD area m2 Actual HD area m2 0 0 0 6018.15 0 0 0 0

Already demolished Survey in M2 0 0 0 0 0 0 0 area process Planned number of APs 0 0 0 0 0 0 0 0 Actual number of APs 0 0 0 23 (115) 0 0 0 0 Compensation received Survey in 0 0 0 0 0 0 0 process Number of APs to be 0 0 0 0 0 0 0 0 resettled Number of APs already 0 0 0 23 (115) 0 0 0 0 resettled III. Non-residential 0 0 0 0 0 0 0 0 House Demolition Planned HD area M2 Actual HD area M2 0 0 0 465 0 0 10573 0 Already demolished Survey in M2 0 0 0 2976.71 0 0 0 area process Planned number of APs 0 0 0 2976.71 0 0 0 0 Actual number of APs 0 0 0 1 (5) 0 0 1 (0) 0 Number of APs to be 0 0 0 1 (5) 0 0 1 (0) 0 resettled Number of APs already 0 0 0 1 0 0 1 0 resettled

3.4 Funds and Disbursement 3.4.1 LA

By the date of this report, part of the compensation under HGH-C1.2, 1.3, 1.4, 1.5, 1.6, 1.7 and 1.9 had been approved, in which the compensation for Nanhu Farm involves HGH-C1.9, 1.10 and 1.12, but cannot be split by contract; the LA compensation for the other villages had not been paid (approved but not paid to the AHs.

It was found in the 3rd round of M&E that some compensation was withheld by the village collectives and not paid to the AHs. During this M&E, this issue had been solved.

The vouchers had been issued for the acquired land of Xiahu Fish Farm in HGH-C1.2, 1.4 (part), 1.5, 1.6 and 1.7, but the compensation has not been paid.

The HD compensation for the Shanhu breeding base in Baizhangzui Village of 5.6 million yuan, and the ground attachment compensation for Cigang Village of 270,000 yuan in HGH-C1.2, 1.4 (part), 1.5, 1.6 and 1.7 have been disbursed; the ground attachment compensation for Wangjiawan Village of 1.330718 million yuan and the LA compensation for the Jinshui River in Xiahu Fish Farm of 832,300 yuan have been disbursed. By the time of this report, the LA compensation for the land in Wangjiawan and Baizhangzui Villages had not been paid, but the AHs had received the LA compensation from collective funds (mainly from withheld LA compensation in other projects). See Table 3-6.

Table 3-6 Fund Disbursement

LA Ground attachments Ground Amount of LA Contract Village Payment Time of attachment Time of Remarks Agreement type Area (mu) compensation agreement progress payment compensation payment (0,000 yuan) (0,000 yuan) Baitan Lake HGH-C1.2 Permanent 88.28 No Fish Farm Baitan Lake Permanent 42.129 169.55 100% 2018.3.22 Yes Fish Farm Cigang Permanent 6.1905 23.96 100% 2018.3.22 Yes Lukou Permanent 15.4395 61.67 100% 2018.3.22 Yes Partly paid from Baizhangzui Permanent 15.609 61.48 100% 2018.3.22 Yes collective funds HGH-C1.3, 1.4 (part) Partly paid from Wangjiawan Permanent 23.0656 88.71 100% 2018.3.22 Yes collective funds Polytechnic Permanent 2.118 8.27 100% 2018.3.22 Yes School Baizhangzui, Cigang, Baitan Pre-reserved 233.082 480.3 85.62% 2017.4 80.97 2017.6.9 Lake Fish Farm Total 104.5516 413.64 80.97 Lukou Permanent 181.794 665.34 30% 2018.2.24 Yes Partly paid HGH-C1.2, 1.4 from Baizhangzui Permanent 593.9625 2094.24 30% 2018.2.24 560 2018.8.23 Yes (part), 1.5, 1.6, collective 1.7 (paid by funds 30% at 3:4:3) Cigang Permanent 92.58 364.56 30% 2018.2.24 27 2018.9.19 Yes Xiahu Fish Permanent 0.4665 18.99 30% 2018.2.24 Yes Farm Total 868.803 3143.13 587 Permanent 8.1675 33.24 100% 2018.4.27 Yes HGH-C1.9 Huayuan 97.23 2018.1.16 Pre-reserved 19.3725 716.78 100% 2018.4.27 Yes

LA Ground attachments Ground Amount of LA Contract Village Payment Time of attachment Time of Remarks Agreement type Area (mu) compensation agreement progress payment compensation payment (0,000 yuan) (0,000 yuan) Permanent 44.373 Yes Xiejiaxiaowan 356.81 2018.3.14 Pre-reserved 44.13 Yes Xiahu Fish Permanent 17.4375 70.97 100% 2018.5.28 Yes Farm 6.6435 12.26 100% 2018.5.28 Lukou Permanent 2.823 Yes Partly paid from Permanent 121.6185 133.07 2018.12.5 Yes Wangjiawan collective funds Pre-reserved 33.321 No Permanent 44.499 No Santaihe Pre-reserved 47.7705 No Baitan Lake Permanent 0.8025 No Fish Farm Total 384.315 833.25 587.11 HGH-C1.9 Permanent 0.7305 2 million paid No HGH-C1.10 Permanent 437.553 in Nov. 2017, No Nanhu Farm 554.49 balance paid HGH-C1.12 Permanent 27.9855 No in Apr. 2018

3.4.2 HD

As of December 31, 2018, the demolition of residential houses had not begun.

Among non-residential properties, the Shanhu breeding base had been demolished, with appraised compensation 5.15 million. In this round of M&E, the compensation rose from 5.15 million yuan to 5.78 million yuan, in which 5.6 million yuan had been paid in August 2018.

3.4.3 Fund Disbursement Process

Resettlement funds will be disbursed as follows: All costs related to LA will be included in the general budget of the Project. The Huanggang PMO will disburse compensation fees based on the compensation rates directly to the functional departments of the district government via a special account, for further payment to the villages/communities for distribution. Land compensation fees, resettlement subsidies and young crop compensation fees will be paid before LA. See Figure 3-1.

Project Manage and Business Departmen HPMO implementati supervision delegate t of HD on institution

Implement Authorize Submit for approval Sign agreements of LA and HD

Household or organization of HD and Fund payment LA

Household or Villages or Influence temporary land organization of HD household of LA occupation

Figure 3-1 Fund Disbursement Flowchart

3.5 Resettlement Policies and Rates 3.5.1 LA

As of December 31, 2018, all LA compensation rates had been consistent with those specified in the RP.

1) LA policy

The LA compensation principles and rates, LA procedure, and supervision mechanism of the Project are based mainly on the Land Administration Law of the PRC, the Regulations on the Implementation of the Land Administration Law of the PRC (Decree No.256 of the State Council), the Interim Regulations of the PRC on Farmland Occupation Tax, the Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (MLR [2004] No.238), the Notice of the Hubei Provincial Government on Publishing Uniform AAOV Rates and Location-based Land Prices for Land Acquisition of Hubei Province (HPG [2014] No.12), and the applicable policies of Huanggang City and Huangzhou District.

2) LA compensation rates

The LA compensation rates of the Project have been fixed by HMG and the Huangzhou District Government in accordance with the Notice of the Hubei Provincial Government on Publishing Uniform AAOV Rates and Location-based Land Prices for Land Acquisition of Hubei Province (HPG [2014] No.12) (see Tables 3-6 and 3-7). The LA compensation correction factors and rates of the Project are based on the HD, Resettlement and Compensation Program for NED (NEDO [2012] No.9) (see Table 3-7). Compensation for temporary land occupation will be based on the actual period of occupation (see Table 3-8).

Table 3-7 Uniform AAOV Rates for LA and Compensation Multiples

Where Compensation rate Uniform Land Resettlement for young crops Rate Township AAOV Multiple compensation subsidy (yuan/mu) (yuan/mu) (yuan/mu) Rate Rate Cultivated Vegetable Multiple Multiple (yuan/mu) (yuan/mu) land land Lukou Town 1850 20 37000 8 14800 12 2220 1850 2035 Nanhu Farm

Table 3-8 LA Compensation Correction Factors and Rates

Cultivated land Vegetable land Fishpond (incl. young (incl. young Garden land (excl. young Woodland crop crop (excl. young crop and (excl. tree Unused land compensation compensation crop Township attachment compensation) of 1,850 of 2,035 compensation) compensation) yuan/mu) yuan/mu) Rate Rate Rate Rate Rate Rate Factor Factor Factor Factor Factor Factor (yuan) (yuan) (yuan) (yuan) (yuan) (yuan) Lukou Town 1 38850 1.1 42735 1.1 40700 1.1 40700 0.7 25900 0.5 18500 Nanhu Farm Compensation rates for young crops and Fry transfer and facility subsidy: 2,200 yuan/mu; see Table 3-10 ground attachments: for other items. Note: The 10% extra compensation for fishpond is fishpond excavation fee.

Table 3-9 Compensation Rates for Temporary Land Occupation

Item Unit Compensation rate Compensation for temporary Cultivated land yuan/mu per annum 1850 land occupation Fishpond yuan/mu per annum 2200

3.5.2 HD

The AHs in Group 4 Baizhangzui Village have chosen property swap, and require that a resettlement community be constructed in a nearby area. As of December 31, 2018, the site of the resettlement community had not been fixed.

HD has not begun, and the HD resettlement policies and compensation rates are consistent with those specified in the RP.

1) Resettlement policy

 Residential houses

The HD compensation principles and rates, LA procedure, and supervision mechanism of the Project are based mainly on the Regulations on House Acquisition on State-owned Land and Compensation (Decree No.590 of the State Council); the Regulations on House Acquisition on State- owned Land and Compensation of Hubei Province (HPGO [2011] No.40), and the applicable policies of Huanggang City and Huangzhou District.

 Non-residential properties

The non-residential properties demolished for the Project will be compensated for in cash at a time through market appraisal, but not less than the benchmark rates.

2) Resettlement program

The resettlement modes for HD include cash compensation and property swap. According to the willingness survey, all AHs prefer property swap. During the transition period, the AHs will be housed themselves with government subsidies.

3) Compensation rates

The HD compensation rates of the Project have been fixed by HMG and the Huangzhou District Government in accordance with the HD, Resettlement and Compensation Program for NED. See Table 3-10.

Table 3-210 Compensation Rates for Demolished Residential Houses

Benchmark Item Structural type Unit Remarks rate (yuan)

Reinforced concrete yuan/m2 800 Property swap at 40 m2 per House Masonry concrete yuan/m2 700 capita, rising by 400 yuan/m2 compensation Masonry timber yuan/m2 550 for any excess size

yuan/time per Sufficient for two moves Moving subsidy 500 household yuan/month Based on 12 months for the Transition subsidy 300 Other per household moment compensation Entering into an Usually not more than 15 Early agreement and yuan/m2 per days, total amount up to moving 3 emptying the house day 10,000 yuan reward per day in advance Notes: 1. The above compensation rates include compensation for housing land (40.5 yuan/m2 or 27,000 yuan/mu).

2. The resettlement housing price is the same as the compensation rate for masonry concrete structure, being 700 yuan/m2, so the HD compensation rates of the Project meet the full replacement cost principle.

4) Compensation rates for non-residential properties

The compensation rates for ground attachments in the affected Shanhu breeding base are based on those specified in the RP by reference to inflation and newness. See Tables 3-11 and 3- 12.

Table 3-311 Detailed HD compensation for the Shanhu breeding base Building Unit price Appraised value No. Attachment Structure Unit area (yuan/m2) Original value Newness Net value 1 Workshop 1 - m2 1879.03 947.32 1,780,044.00 80% 1,424,035.00 2 Workshop 2 - m2 214.88 661.98 142,247.00 80% 113,798.00 3 Workshop 3 - m2 115.88 661.98 76,710.00 80% 61,368.00 Simple single-story Masonry 4 m2 8.74 376.66 3,292.00 80% 2,634.00 house 1 timber Simple single-story Masonry 5 m2 9.3 376.67 3,503.00 80% 2,802.00 house 2 timber Simple single-story Masonry 6 house 3 (power m2 20.87 410.01 8,557.00 80% 6,846.00 timber distribution room) Simple single-story Masonry 7 m2 4.77 353.88 1,688.00 80% 1,350.00 house 4 timber Steel frame house 8 - m2 113.86 380.00 43,267.00 80% 34,614.00 (chicken room) Simple steel frame 9 - m2 39.59 200.00 7,918.00 80% 6,334.00 shed (chicken room) 10 Wood shed - m2 54.39 120.00 6,527.00 100% 6,527.00 Simple single-story Masonry 11 m2 16.79 310.01 5,205.00 80% 41,692.00 house 5 timber Shed (right of office 12 - m2 23.49 120.01 2,819.00 80% 2,255.00 building) Simple single-story Masonry 13 house 6 (right of m2 5.29 319.66 1,691.00 80% 1,353.00 timber office building) Masonry 14 Office m2 309.87 1,266.90 392,574.00 80% 314,059.00 timber Simple single-story Masonry 15 house 7 (left of office m2 16.36 319.62 5,229.00 80% 4,183.00 timber building) Simple single-story Masonry 16 m2 8.76 310.05 2,716.00 80% 2,173.00 house 8 timber Simple single-story Masonry 17 m2 27.25 410.02 11,173.00 80% 8,938.00 house 9 timber Masonry 18 Guard room m2 19.49 410.01 7,991.00 80% 6,393.00 timber Masonry 19 Pigeon room m2 21.61 433.69 9,372.00 80% 7,498.00 timber Steel frame shed 20 (beside pigeon - m2 66.49 390.34 25,954.00 80% 20,763.00 room)

Table 3-412 Compensation Rates for Demolished Non-residential Properties No. Structure Rate (yuan/m2) Remarks Reinforced 1) Land occupied by non-residential properties will be compensated for 1 800 concrete at the rate for construction land (Lukou Town: 27,000 yuan/mu). Masonry 2) Equipment relocation costs will be fixed based on market appraisal, 2 700 concrete but not less than 500 yuan per household. 3) The enterprises affected by the Project have no transition loss (one Masonry runs in a leased property and will be relocated in advanced, and the 3 550 timber other is not running), so there is no compensation for losses from production or business suspension.

3.5.3 Young Crops and Attachments

According to the RP, the compensation rates for young crops and attachments have been fixed on a replacement cost basis. See Table 3-12.

Table 3-512 Compensation Rates for Young Crops and Attachments

Unit price No. Item Unit Remarks (yuan) 1 Toilet m2 120 Covered 2 Simple wells / 600 3 Deep wells / 2000 4 Canals m 300 5 Cement roads m2 100 Trees Dia. <5cm / 5 Miscellaneous Dia. 5-8cm / 8 Including mulberry, poplar, willow, paulownia, 6 trees Dia. 8-10cm / 10 etc. Dia. 10-15cm / 15 Dia. 8-10cm / 120 Including Cinnamomum camphora, Mongolia Landscaping Dia. 10-15cm / 150 grandiflora, Koelreuteria paniculata, 7 trees Dia. 15-20cm / 200 Osmanthus fragrans, cedar, palm, plum, etc., Dia. >=20cm / 300 to be transplanted by proprietors

3.5.4 Tax Rates

See Table 3-14.

Table 3-614 Tax Rates on LA

No. Item Tax rate Policy Land management implementation 1 Land reclamation costs 14,800 yuan/mu methods of Hubei Province (amended September 25, 2014) Fees for compensated use of 2 28 yuan/m2 HCJ [2010] No.31 new construction land 40 yuan/m2; basic farmland: 3 Farmland occupation tax HCS [2008] No.8 60 yuan/m2 4 Basic pensions for LEFs 1,000-1,200 yuan/year HMG [2008] No.19 5 LA management costs 3.6% of LA costs HJFD [1995] No.44

3.6 Evaluation and Suggestions 3.6.1 Evaluation

1) The main issues learned in this round of M&E are the same as those of the previous report. The formally approved land is only 104.5425 mu of land occupied for the round-the-lake road, while other land has not been approved. The main issue is that the acquired but not approved land is mostly pre-reserved, namely occupied temporarily, but is compensated for as permanently acquired land. Since this pre-reservation mode is not recognized by the land and resources authority, it cannot be formally approved, so that fund disbursement is impossible. Accordingly, in Wangjiawan and Baizhangzui Villages, compensation is paid from collective funds (it is not clear which contracts are involved).

2) The PMO staff can still protect the APs’ interests and implement the Project on schedule despite of many practical difficulties.

3) The site of the resettlement community for Baizhangzui Village has not been fixed, and HD progresses slowly, mainly because the APs want to have an exclusive community.

3.6.2 Suggestions

1) Ensure that land pre-reservation is lawful in consultation with the land and resources authority to accelerate land approval and ensure fund disbursement.

2) Since land has been actually acquired, compensation should be disbursed timely to protect the APs’ interests and compensate for their losses.

3) The site selection and construction of the resettlement community for Baizhangzui Village should be conducted in consultation with the APs to ensure that they are properly resettled.

4. Sampling Survey The sampling survey covers Baitan Lake Fish Farm, Lukou Town, Nanhu Farm, and includes:

1) Heads of the Lukou Town Government, Nanhu Farm and Baitan Lake Fish Farm were interviewed to learn local environmental management, waste separation, policy awareness, public participation, social security, etc.

2) Village officials were interviewed to learn basic information (population, land, housing, per capita net income, etc.), LA and HD progress, policy awareness, livelihood restoration, grievance redress, villages development plans, attitudes and suggestions on the Project, etc. (see the interview minutes for details).

3) A sampling survey was conducted on 83 AHs, including 47 in Lukou Town, with a sampling rate of 56.67%, and 36 in Nanhu Farm, with a sampling rate of 43.37%, covering basic family information, land, housing, income and expenditure, LA and HD impacts, policy awareness, grievance redress, etc.

4.1 Basic Information 4.1.1 Population and age

The 284 respondents include an agricultural population of 171, accounting for 60.21%; 132 females, accounting for 46.48%; 54 persons aged below 17 years, accounting for 19.01%; 163 persons aged 17-60 years, accounting for 57.39%; and 67 persons aged above 60 years, accounting for 23.59%. See Figure 4-2.

Age structure

19.01% 23.59%

57.39%

Under 17 years of age Age 17-Age 60 Over 60 years of age

Figure 4-1 Age structure of sample population

4.1.2 Land contracting

The 83 sample households have a total cultivated area of 346.23 mu, including 200.64 mu of irrigated land, 128.54 mu of non-irrigated land, 125 mu of fishpond and 17.05 mu of vegetable land, and a per capita cultivated area of 1.219 mu. The main crops are paddy rice, cotton, orange and vegetables. Since the respondents are APs whose farmland has been acquired, their agricultural income is low. For example, all collective land in Huayuan Village has been acquired, and agricultural

income is zero; Lukou Village has only 800 mu of remaining collective land, with a land loss rate of nearly 80%, where nearly 70% of income is employment income.

4.1.3 Annual income

In Huangzhou District, the main income source of the APs is outside employment. They mostly work locally, and deal mainly with construction and services. The per capita annual income of the sample households is 24,562 yuan, including agricultural income of 1,822 yuan, accounting for 7.42%; employment income of 19,354 yuan, accounting for 78.8%; wage income of 1,318 yuan, accounting for 5.37%; sideline income of 1,256 yuan, accounting for 5.11%; and other income of 812 yuan, accounting for 3.31%. See Figure 4-3. It can be seen that since employment income accounts for a high proportion, LA will affect local residents’ income slightly.

Income composition

3.30% 7.40% 5.30% 5.10%

78.80%

Agricultural income Income from working outside Income of enterprises and institutions Sideline income Other income

Figure 4-2 Income composition

4.1.4 Annual expenditure

The per capita annual expenditure of the sample households is 9,089 yuan, including agricultural expenses of 923 yuan, water and electricity expenses of 912 yuan, communication expenses of 696 yuan, educational expenses of 1,223 yuan, medical expenses of 1,564 yuan, fuel expenses of 123 yuan, and non-staple food expenses of 3,648 yuan. See Figure 4-4.

Expenditure composition

10% 10%

40% 8% 13% 17%

Agricultural expenditure Water and electricity expenditure Communications expenditure Education expenditure Medical expenditure Food expenditure Fuel expenditure

Figure 4-3 Expenditure composition

4.1.5 Net income

The per capita net income of the sample households is 14,845 yuan.

4.2 Resettlement Satisfaction Survey During the sampling survey, the external M&E team also learned satisfaction with resettlement through the following questions:

 By which means did you first know about LA/HD?

 Are you satisfied with DMS results?

 Do you know compensation policies for LA and HD?

 Are you satisfied with these policies?

 How is project and resettlement information disclosed?

 In what way do you express your personal opinions during the whole process of resettlement?

 Have your opinions been valued?

 Are you satisfied with the role of village-level organizations during resettlement planning and implementation?

It can be seen that 10.84% of the respondents are very satisfied, 37.35% satisfied, and 42.17% neither satisfied nor dissatisfied with DMS results; 12.05% of the respondents are very satisfied, 34.94% satisfied, and 36.14% neither satisfied nor dissatisfied with policies; 6.02% of the respondents are very satisfied, 44.58% satisfied, and 26.51% neither satisfied nor dissatisfied with information disclosure; 36.25% of the respondents are very satisfied, 50.10% satisfied, and 13.65% neither satisfied nor dissatisfied with the role of village-level organizations. See Table 4-1.

It can be seen that issues arising from LA and HD (such as delayed fund disbursement and the resettlement community for Baizhangzui Village) may affect the satisfaction of the APs. However, the APs are satisfied with resettlement in general, and can understand such issues.

Table 4-1 Sampling satisfaction survey results

Survey results ① ② ③ ④ ⑤ Subtotal No. Question Option Percen Percent Percent Perce Percent Percent N N N N N N t (%) (%) (%) nt (%) (%) (%) ①Government leaflet; ②Mass By which means did you media; ③Neighborhood 1 17 20.48 50 60.24 16 19.28 0 0 0 0 83 100 first know about LA/HD? discussion; ④Village meeting or informal channel; ⑤DMS ①Very satisfied; ②Satisfied; Are you satisfied with DMS 2 ③Neither, nor; ④Dissatisfied; 9 10.84 31 37.35 35 42.17 8 9.64 0 0 83 100 results? ⑤Very satisfied Do you know 3 compensation policies for ①Yes; ②Somewhat; ③No 27 32.53 42 50.60 14 15.05 0 0 0 0 83 100 LA and HD? ①Very satisfied; ②Satisfied; Are you satisfied with these 4 ③Neither, nor; ④Dissatisfied; 10 12.05 29 34.94 30 36.14 10 12.05 4 4.82 83 100 policies? ⑤Very satisfied ①Completely transparent; ② How is project and Transparent; ③Neither, nor; ④ 5 resettlement information 5 6.02 37 44.58 22 26.51 11 13.25 8 9.64 83 100 Not quite transparent; ⑤Not disclosed? transparent In what way do you ①Village official or above express your personal directly; ②Village official or 6 52 62.65 4 4.82 6 7.23 2 2.41 19 22.89 83 100 opinions during the whole above indirectly; ③Mass process of resettlement? media; ④Owner; ⑤Surveyor Have your opinions been ①Many; ②Some; ③Rare; ④ 7 16 19.28 31 37.35 28 33.73 7 8.43 1 1.20 83 100 valued? None

5. Livelihood Restoration 5.1 Cash Compensation See Section 3.5.1 for the cash compensation rates and Section 3.4.1 for compensation progress.

5.2 Social Security According to the old social security policy of Lukou Town, the total premium is 37,000 yuan per capita, which is borne by NED, the village collective and the individual at 40%, 20% and 40% respectively. After the new policy (Implementation Measures of Huanggang City for Basic Endowment Insurance for Land-expropriated Farmers (HMG [2015] No.5)) became effective in May 2015, a social security premium of 33,000 yuan is allocated for 1 mu of land acquired, while the remainder is borne by the village collective and individual. The individual should cover basic endowment insurance for urban employees if employed, or basic endowment insurance for urban and rural residents if not.

When Nanhu Farm was restructured in 2003, each worker of Nanhu Farm covered social endowment insurance, and the premium was borne by the Nanhu Farm Office, individual and state at 17%, 10% and 73% (Nanhu Farm is a state-owned farm), the insured will receive 2,000 yuan/month when attaining 60 years for men or 50 years for women. Non-workers of Nanhu Farm have not been insured. All LEFs having attained 16 years in Santaihe Community are entitled to endowment insurance for LEFs.

In Huayuan Village, some LEFs under 18 years were excluded from endowment insurance for LEFs at the time of LA, but are not at or above 18 years, so they think they should be insured. Second, some villagers of Baizhangzui Village think that part of the acquired land is collectively owned, so both the affected and unaffected villagers should be insured.

Table 5-1 Social Security

Township Village / community Group Policy Provisions on contribution Xiejiaxiaowan Village Interim Measures for Basic NED, the village collective and Endowment Insurance for the individual bear 40%, 20% Land-expropriated Farmers and 40% respectively, and the Xiahu Fish Farm in the Urban Area of insured will receive at least 400 Huanggang City (HMG yuan/month after retirement. [2008] No.19) Baizhangzui Village 4, 5 The county (city/district) Cigang Village 12 government offers one-time 10, 15, 16, Implementation Measures of insurance compensation to Lukou Village 17 Huanggang City for Basic each LEF. The individual Wangjiawan Village 1, 2, 3, 6, 7 Endowment Insurance for should cover basic endowment Lukou Land-expropriated Farmers insurance for urban employees Town (HMG [2015] No.5) if employed, or basic Huayuan Village endowment insurance for urban and rural residents if not. Interim Measures for Basic Before the enactment of the Endowment Insurance for new policy in 2015, the Land-expropriated Farmers insurance premium is borne by in the Urban Area of the government, village Santaihe Village 1, 3, 5 Huanggang City (HMG collective and individual at [2008] No.19), 40%, 20% and 40%; after its Implementation Measures of enactment in 2015, the county Huanggang City for Basic (city/district) government offers Endowment Insurance for one-time insurance

Township Village / community Group Policy Provisions on contribution Land-expropriated Farmers compensation to each LEF. (HMG [2015] No.5) Group 4 The premium is borne by the Group 5 When Nanhu Farm was Nanhu Farm Office, individual restructured in 2003, each and state at 17%, 10% and Nanhu worker of Nanhu Farm 73%; the insured will receive Farm Group 6 covered social endowment 2,000 yuan/month when insurance. attaining 60 years for men or 50 years for women. Interim Measures for Basic NED, the village collective and Baitan Endowment Insurance for the individual bear 40%, 20% Lake Land-expropriated Farmers and 40% respectively, and the Fish in the Urban Area of insured will receive at least 400 Farm Huanggang City (HMG yuan/month after retirement. [2008] No.19)

Table 5-2 Summary of Endowment Insurance

Where: Where: Endowment Endowment Government Town Village LEFs insurance insurance Premiums Individual Village Government subsidy for for employees residents Cigang 446 65 381 1015.8 71.1 314.9 629.9 437.8 Baizhangzui 475 229 246 1188.1 247.3 313.6 627.2 222.4 Xiejiaxiaowan 746 568 178 1964.5 599.1 455.1 910.3 18.8 Wangjiawan 1281 1044 237 3415.4 1140.7 758.2 1516.5 255.1 Lukou Xiahu Fish 105 87 18 291.8 98.1 64.6 129.2 5.8 Farm Lukou 1843 1308 535 4952.5 1451.3 1167.1 2334.2 247.7 Huayuan 1491 1193 298 3916.6 1242.2 891.5 1783 14.5 Total 6387 4494 1893 16744.7 4849.8 3965 7930.3 1202.1

5.3 Agricultural restructuring measures 5.3.1 Crop cultivation

Crop restructuring has not been conducted.

5.3.2 Aquaculture

During the 13th Five-year Plan period, the Huangzhou District Aquatic Bureau made planning around processing, logistics, aquaculture and leisure: 1) setting up an aquatic product processing plant to develop a freshwater fish product series; 2) constructing a farm product market, a cold chain logistics platform and a financial e-commerce platform; 3) Xingfu fishery, Zhaojiatan modern aquaculture, Xihe River water ecology rehabilitation, Baitan Lake water ecology rehabilitation, and Yuwang special aquaculture; 4) Xingfu and East Highway leisure and fishery sites.

Baitan Lake Fish Farm affected by the Project is completely within the planning area. In 2018, a number of leisure and fishery sites, and aquaculture bases were built through active investment promotion in the Baitan Lake area, promoting the development of local secondary and tertiary industries. The affected farm and fishermen should develop aquaculture by taking advantage of their own practical conditions and relevant government policies.

Figure 5-1 Aquaculture Development Measures

5.4 Commercial Development According to the LA policy of NED, each affected village or community will receive 3% of the acquired land and 20m2 of state-owned construction land per capita for livelihood restoration.

By the date of this report, a neighborhood center had been completed in Lukou Village, but it was so large that it was leased to China Western Development Holdings, and the rental was distributed to the LEFs in a certain manner. Since the Lukou Village Neighborhood Center will not generate income until 2019, rental will not be distributed until 2019. In addition, the Dabieshan Financial Center has entered the Lukou Village Neighborhood Center. In Wangjiawan Village, a neighborhood center has been completed, and an administrative service center will be completed in February 2019, in which the neighborhood center is still unused. The neighborhood center of Huayuan Community is under construction. All the 3 neighborhood centers have ownership and income distribution issues.

Figure 5-2Lukou Village Neighborhood Center (leased by the Dabieshan Financial Center)

Figure 5-3 Administrative Service Center of Wangjiawan Village

5.5 Nonagricultural employment measures 5.5.1 Public welfare jobs

Since NED is at a rapid construction stage, public welfare jobs such as landscaping, cleaning, security and coordination will be generated. The task force found in the previous round of M&E that some APs did such jobs, including over 200 APs in Lukou Village, about 30 in Xiejiaxiaowan Village, 5 in Santaihe Village and 10 in Nanhu Farm. It was found in this round of M&E that over 40 villagers in Wangjiawan Village work at the administrative service center under construction, in which security guards are paid 2,400 yuan/month and cleaners paid 1,800 yuan/month.

5.5.2 Social jobs

In the second half of 2018, several small job fairs were organized by the county and town governments. In the first half of 2018, HMG organized a “Spring Breeze Action” job fair at Yi’ai Lake Park for the purpose of promoting targeted poverty reduction and the startup of returned laborers, and serving enterprise employment, involving about 1,000 persons.

No job fair has been held in Wangjiawan and Baizhangzui Villages, and Huayuan Community. Only two job fairs are held in Lukou Village annually, mainly oriented to LEFs and vulnerable laborers, such as the one in March 2018. In addition, the village offers some landscaping and cleaning jobs to villagers.

In October 2018, a “Poverty Reduction by Employment Action Day” special job fair was held in Huanggang City, involving nearly 40 key enterprises and offering over 1,000 jobs, aiming to help laborers in families with difficulties get employed locally. Some APs attended the job fair.

5.5.3 Jobs generated by the Project

As of the end of December 2018, the project created a total of 577 jobs, including 489 local residents, 53 women, and 12 poor peolple. . 5.5.4 Small-amount startup loans

The Huanggang Municipal Government offers credit support, tax relief, startup services and other supporting measures to those starting up businesses independently. Some APs have applied for small-amount loans, but in small amounts, and repaid the loans on schedule.

5.6 Skills Training In order to provide livelihood support to the LEFs, HMG and the Huangzhou District Government have taken various measures actively, a main one of which is employment training.

The Huanggang Municipal Labor and Social Security Bureau organized training for farmers in the second half of 2018, involving about 30 villagers in Santaihe Village, and two skills training courses for women, covering computer, cooking, housekeeping, etc., with 20-30 trainees each. In December 2018, the Huangzhou District Disabled Persons’ Federation and the Lukou Town Government offered practical skills training for rural disabled persons, involving over 70 disabled persons in Lukou Town, covering cultivation, agrology, e-commerce, etc.

Figure 5-4 Employment training

5.7 Supplementary RP for Baitan Lake Fish Farm 1) For the outstanding issue of 20m2 of commercial land in the previous report, relevant information is as follows: At the beginning of the Project, it was agreed with NED that resettlement compensation for 40m2 per capita and income on 10m2 of commercial land per capita were to be offered to Baitan Lake Fish Farm. However, since the farm is state-owned, it has no land compensation, and the planned compensation measure cannot be implemented. After renegotiation with NED, 20m2 of commercial land was to be offered. However, this measure has not been implemented yet.

2) The second sum of compensation of about 40 million yuan was paid to Baitan Lake Fish Farm in 2017.

3) For the former workers of Baitan Lake Fish Farm except those working at Xingfu Fish Farm, the livelihood support offered by NED is granting a certain sum per annum (100,000 yuan in last year, applied for via the fish farm, and 300,000 yuan expected to be granted in 2018), and offering cleaning and security jobs to some workers at 2,000 yuan per month. Some workers will get employed themselves, mostly in NED and Huangzhou District.

5.8 Evaluation and Suggestions 1) In 2018, many job fairs represented by “Spring Breeze Action” were held in Huanggang to help the poor become rich, involving some APs. However, the number of jobs for women is still insufficient.

2) Employment training is pertinent, but farmers are inactive for participation. Training should be based on market needs, and publicity strengthened.

3) Some LEFs are old and can hardly get employed. The government should give priority to them in employment, such as placing them to jobs offered by village collective enterprises, introducing them to suitable jobs, and training them based on market needs.

Generally, HPMO and the government agencies concerned should promote the employment of LEFs and ensure their basic living standard by taking such measures as living assistance, production support, technical assistance, employment, training and startup support based on local market needs.

6. Gender and Social Development 6.1 GAP Monitoring 6.1.1 Implementation progress

The GAP contributes to Components 1, 2 and 3 mainly: 1) Urban Lake and River Improvement; 2) Solid Waste Collection and Transfer System; 3) Capacity Development and Institutional Strengthening; and 4) M&E (see Section 1.1). See Appendix 6 for the monitoring matrix.

1) Urban Lake and River Improvement

 There was no additional leisure facility design in 2018, but HPMO will fully investigate women’s needs in any new design, and ensure lake safety.

 The resettlement community was not initiated in the second half of 2018, and is being initiated in consideration of women’s opinions.

 100% of women aware of the LA compensation policy, and enjoy the same right to receive compensation.

 In the second half of 2018, local labor and social security authorities held some job fairs and training courses, some of which were for women, protecting women’s rights properly. In addition, the government has communicated employment information to women by various means.

Figure 6-1 Recruitment Websites (http://www.hgjyj.gov.cn/)

 Currently, 7 contracts are under construction, in which HGH-C1.1 has been completed. 577 jobs have been generated at the construction stage (accounting for 23.55% of all the 2,450 jobs expected to be generated by the Project), in which 53 women have been employed (accounting for 9.19% of all employees), mainly serving as handymen and file clerks. Since NED is at a rapid construction stage, public welfare jobs such as landscaping, cleaning,

security and coordination will be generated, in which women will do landscaping and cleaning jobs mainly. In the second half of 2018, special skills training courses were organized for women, covering computer, cooking, housekeeping, etc. See Section 5.6.

Figure 6-2 Free Health Checkup for Women

2) Solid Waste Collection and Transfer System

 Each group of Baizhangzui Village has a full-time cleaner, a big trash bin and 10 small trash bins. All the 11 groups of Santaihe Village raise funds collectively for pavement hardening, lighting and environment improvement.

 In the second half of 2018, toilet revolution, living environment improvement, river dredging and waste management were conducted in all affected villages, and villagers’ environmental protection awareness has improved significantly. Extensive publicity on environmental protection is conducted by means of leaflet, bulletin board, Web and oral communication. Each village has a waste control leading group and sanitation rules.

Figure 6-3 Environmental Publicity in Santaihe Community

Figure 6-5 Banner and Bulletin Board Publicity

Figure 6-6 Environmental Improvement Event

3) Capacity Development and Institutional Strengthening

No new community will be established until the completion of NED.

4) M&E

 A social and gender expert has been engaged to support the implementation of the SAP and the GAP.

 The head of social and gender affairs of HPMO was Wang Kun, who is responsible for the SAP, and Lu Hua, who is responsible for the GAP; each contractor has a staff member responsible for environmental, social and gender affairs.

 Publicity on the protection of women’s rights is conducted in the form of banner, and training on the SAP and the GAP was conducted in July 2018.

Figure 6-7 Banner on Protection of Women’s Rights

Figure 6-8 Women’s Congress of Nanhu Farm

6.1.2 Key Points and Next-step Plan

1) Women’s opinions and needs will be fully considered in any new design, and over 30% of participants will be women.

2) Since most jobs generated by the Project to date are physically demanding construction jobs, the percentage of women employed is below the design level, and women usually serve as file clerks and handymen. More landscaping, gardening and cleaning jobs should be offered to women in the future.

3) Adequate environmental protection measures, such as toilet revolution, living environment improvement, river dredging and waste management have been taken, improving villagers’ environmental awareness greatly. Publicity should be further strengthened, especially on waste classification.

6.2 SAP Monitoring The SAP will generate measures to improve project benefits (strengthening community

participation, optimizing the project design and generating jobs) and reduce potential risks (establishment of community management and environmental protection groups, solid waste publicity to improve public environmental awareness, education on public health and AIDS prevention, establishment of public consultation and grievance redress mechanisms). See Appendix 6 for the monitoring matrix.

6.2.1 Implementation Progress

1) Measures to enhance project benefits

A. Strengthening community participation and optimizing the project design

 There was no additional leisure facility design and no trash bin was set up in the second half of 2018.

B. Generating jobs to increase residents’ income

 Among the 7 contracts that have broken ground, 489 jobs have been offered to local residents (84.7% of all employees) and 12 to poor population 2.1%), more than one year ago, with pays of 90-100 yuan/day or 2,500-3,000 yuan/month.

 For vulnerable and poor villagers, an MLS benefit of 300-500 yuan/month is offered, and some subsidies granted on holidays. For example, edible oil, rice and 200 yuan of cash were granted to each poor villager of Wangjiawan Village on the Spring Festival.

Figure 6-9 Holiday Consolation and Poverty Reduction in Lukou Town in 2018

2) Measures to reduce potential risks

A. Community management and environmental protection teams

 Community management and environmental protection teams will be established after NED completion.

B. Solid waste publicity to improve public environmental awareness

See Section 7.1.1.

C. Education on public health and AIDS prevention

 Each construction contract includes a provision on AIDS and other infectious diseases.

 In the second half of 2018, publicity on public health and AIDS prevention was conducted in the form of banner that was also conducted in the first half of 2018.

 The headquarters of HGH-C1.3 and 1.12 are within 500m away from the infirmary of Cigang Village, those of HGH-C1.9 and 1.2 within 2km away from the Huanggang No.2 Hospital, and HGH-C1.10 1km away from the Nanhu Health Center, so no temporary infirmary has been set up.

D. Establishment of public consultation and grievance redress mechanisms

 Project information has been disclosed by project information boards and layout plans.

 Bidding information on newly started contracts was released online in the second half of 2018. See Chapter 7 for details:

 https://www.bidcenter.com.cn/newscontent-56296858-1.html

 https://www.bidcenter.com.cn/newscontent-56574474-1.html

 http://p.tgnet.com/Bidding/281910313731.html

 http://www.ebnew.com/businessShow/615996549.html

 A grievance redress mechanism has been established, and villagers usually report issues on site or to Lukou town government office. See Section 7.2 for details.

6.2.2 Key Points and Next-step Plan

1) Women’s opinions and needs will be fully considered in any new design.

2) More leisure facilities will be set up with the completion of contracts.

3) More jobs will be offered to local residents, especially to poor population and women, and their pay levels will not be lower than those specified in the updated RP.

4) Further training on public health and AIDS prevention will be offered in a planned manner.

7. Public Participation and Grievance Redress 7.1 Public Participation In December 2018, HPMO, the Resettlement Office and the external M&E agency conducted interviews in Nanhu Farm and Lukou Town to learn LA progress, compensation payment, information disclosure, etc. (see Appendix 7). The task force has learned that:

LA information is usually notified one month in advance by means of announcement or meeting.

Villagers participate in public activities by means of village meeting mainly, and such meetings are held irregularly in each village. Important information on LA, employment, training, etc., is usually communicated by group heads orally or sent by WeChat.

Figure 7-1 LA Notice of Nanhu Farm

 Bidding information on the Project was released online in the second half of 2018:

 https://www.bidcenter.com.cn/newscontent-56296858-1.html

Figure 7-3 Bidding Announcement of HGH-C1.7

 https://www.bidcenter.com.cn/newscontent-56574474-1.html

Figure 7-4 Bidding Announcement of HGH-C1.10

 http://www.ebnew.com/businessShow/615996549.html

Figure 7-5 Bidding Announcement of HGG-M2.2

 http://p.tgnet.com/Bidding/281910313731.html

Figure 7-6 Bidding Announcement of HGH-C1.5

7.2 Grievance Redress A grievance redress mechanism has been established to ensure the successful implementation of resettlement.

Stage 1: If any right of an AP is infringed on in respect of LA or resettlement, he/she may report to the village committee, which should keep written records. Such appeal should be solved within two weeks.

Stage 2: If the AP is dissatisfied with the disposition of Stage 1, he/she may file an appeal to the Lukou Town Government or Nanhu Farm after receiving such disposition, which shall make a disposition within two weeks.

Stage 3: If the AP is still dissatisfied with the disposition of Stage 2, he/she may file an appeal to the Resettlement Office after receiving such disposition, which shall make a disposition within two weeks.

Stage 4: If the AP is still dissatisfied with the disposition of Stage 3, he/she may file an appeal with competent administrative agencies level by level for arbitration in accordance with the Administrative Procedure Law of the PRC after receiving such disposition.

At any stage, an AP may bring a suit in a civil court directly in accordance with the Civil Procedure Law of the PRC.

If any AP may also file an appeal with the Office of the Special Facilitator or Compliance Review Panel of ADB in accordance with ADB’s accountability mechanism.

All agencies will accept grievances and appeals from the APs for free, and costs so reasonably incurred will be disbursed from the contingencies. At the whole construction stage, the above procedure will remain effective so that the APs can use it to solve relevant issues. The above appeal channel will be disclosed to the APs via the RIB and mass media. See Table 7-1.

Table 7-1 Grievance Redress Information

Agency Name Address Tel HPMO Duan Meisheng NED Construction Headquarters 07138453160 Resettlement Office Li Xiang NED Construction Headquarters 07138453160 Lukou Town Government Yang Lei Lukou Town Government 0713-8453152 Nanhu Farm Luo Haifeng Nanhu Sub-district Office 0713-8341068

Affected People

Neighborhood or village committee Contractors

Town government, Nanhu farm

HPMO

Huanggang City Land Bureau, Housing and Urban and Rural Construction Bureau

ADB

Figure 7-7 Grievance Redress Mechanism

7.2.2 Grievance redress

Some issues arose during LA:

1) Ownership and rental distribution of neighborhood centers: Currently, the neighborhood centers of Lukou, Wangjiawan and Huayuan Villages are owned by Gutan Real Estate Investment Co., Ltd., the village collectives have the right of use, and each villager is entitled to income on a building area of 10m2. There are disputes over the ownership of the neighborhood centers; the Dabieshan Financial Center has entered the Lukou Village Neighborhood Center, but will not generate income until the next year, while the neighborhood centers of the other villages are under construction. Negotiations on income distribution are underway. (See Appendix 7 for details.)

2) LA compensation payment: The land for HGH-1.3, 1.9, 1.10, 1.12, 1.4 and 1.6 has been used for construction, but part of the compensation has not been paid, because land pre-reservation is not deemed lawful by the NED Land and Resources Office (as discussed in Section 3.6.1).

3) Site selection of the resettlement community for Baizhangzui Village: The LEFs in Baizhangzui Village want to have an exclusive resettlement community, and this is their perquisite to LA.

7.3 Evaluation and Suggestions 7.3.1 Evaluation

1) Since the beginning of the Project, the IAs have attached great importance to public

participation, conducted extensive consultation with the AHs, village collectives and affected entities by means of newspaper, website, FGD, baseline survey, announcement, etc. in AP identification, DMS result disclosure, policy publicity, livelihood restoration program preparation, etc., and replied to questions raised by the APs timely.

2) During RP preparation and implementation, a transparent and effective grievance redress mechanism has been established and notified to the APs by means of FGD and notice.

7.3.2 Suggestions

1) For the ownership and rental distribution of neighborhood centers, all stakeholders should strengthen communication and consultation to determine the ownership and distribute income rationally on the basis of protecting villagers’ basic rights and maximizing benefits.

2) Resettlement community for Baizhangzui Village: HPMO, the government and the village collective should strengthen consultation, fully consider villagers’ needs and optimize the design to ensure normal project implementation progress.

3) Approval of pre-reserved land and compensation payment: Ensure that land pre-reservation is lawful in consultation with the land and resources authority to accelerate land approval and ensure fund disbursement.

8. Conclusions and Suggestions 8.1 Conclusions 1) Change of Resettlement Impacts

By the date of this report, the survey and delimitation data has not changed from the previous report. HGH-C1.1, HGH-C1.2, HGH-C1.3, HGH-C1.4, HGH-C1.5, HGH-C1.6, HGH-C1.7, HGH- C1.9 and HGH-C1.12 have been surveyed and delimited, in which the data of HGH-C1.2, HGH- C1.4, HGH-C1.5, HGH-C1.6 and HGH-C1.7 is in the same report , HGH-C1.8 does not involve LA, the HGH-C1.10 data is being fine-tuned ,and HGH-C1.11 has not been measured.

HGH-C1.1 occupies 168.11 mu of state-owned farmland temporarily and no collective land, involving 168.11 mu more of state-owned farmland and 74.5 mu less of collective farmland; HGH- C1.2, 1.4, 1.5, 1.6 and 1.7 involve the acquisition of 1,205.73 mu of collective land, 526.53 mu more than planned, and the occupation of 1,664.61 mu of state-owned land, 831.49 mu less than planned; HGH-C1.9 involves the acquisition of 238.9 mu of collective land, 247.693 mu more than planned, and the occupation of 0.8 mu of state-owned land, 38.84 mu less than planned; HGH-C1.12 involves the acquisition of 0.4 mu of collective land, 0.4 mu more than planned, and the occupation of 258.8 mu of state-owned land, 17.3 mu more than planned.

2) Land application and resettlement progress

In January 2018, part of the land of HGH-C1.3 was approved, including 59.2455 mu of collective farmland converted into construction land and 1.05 mu of acquired collective construction land in Wangjiawan, Lukou, Baizhangzui and Cigang Villages, and 44.247 mu of state-owned farmland converted into construction land in Baitan Lake Fish Farm and Polytechnic School, while the other land has not been approved.

HGH-C1.1 has been completed, occupying 168.11 mu of state-owned land temporarily; 190.1 mu of collective land has been acquired and 147.53 mu of state-owned land occupied for HGH-C1.3 and 1.4 (part) (100%); 1,015.64 mu of collective land and 1,517.08 mu of state-owned land has been allocated for HGH-C1.2, 1.4 (part), 1.5, 1.6 and 1.7 (100%), HGH-C1.2 and 1.4 (part) have broken ground, in which HGH-C1.2 has been completed by 30% and HGH-C1.4 (part) by 3%; 431.043 mu of land has been acquired for HGH-C1.9 (100%); LA for HGH-C1.10 and 1.12 is progressing with construction, in which HGH-C1.10 has been completed by 77.66% and HGH-C1.12 by 62.07%. The bidding announcements for HGH-C1.7, HGH-C1.10, HGG-M2.2 and HGH-C1.5 have been released online (see Chapter 7).

As of December 31, 2018, the demolition of residential houses had not begun. The Shanhu breeding base (a non-residential property) had been demolished, with appraised compensation 5.15 million. In this round of M&E, the compensation rose from 5.15 million yuan to 5.78 million yuan, in which 5.6 million yuan was paid in August 2018. The demolition of Baitan Lake Hotel has not begun, and may be cancelled due to project design optimization.

3) Resettlement agencies

The NED Land and Resources Office was established in the first of 2018, and some formalities have to be approved by its head.

In practice, the HPMO staff is limited and unstable, and works between the local government

and the APs, resulting in some issues due to difficult or improper coordination, thereby affecting project progress. The LA and HD work is undertaken by the construction agent (namely Hubei Chuyuan Engineering Construction Consulting Co., Ltd.) mainly. Since the construction agent is not a government agency, it can hardly coordinate relevant issues, and LA and HD progress is affected. It was learned in this round of M&E that the construction agent had been working more effectively through long-term communication.

4) Livelihood restoration

The livelihood restoration measures taken include: a) Aquaculture restructuring: The Huangzhou District Aquatic Bureau has made planning around processing, logistics, aquaculture and leisure, covering Baitan Lake Fish Farm affected by the Project; b) The neighborhood centers of Lukou and Wangjiawan Villages have been completed, and are expected to generate income in 2019; the administrative service center of Wangjiawan Village will be completed in February 2019; the neighborhood center of Huayuan Community is under construction; c) Offer public welfare jobs, such as landscaping, cleaning, security and coordination; d) Organize job fairs and skills training; e) 577 jobs have been generated by the Project in total, and offered to 489 local residents, 53 women and 12 poor residents.

Existing issues: The number of jobs offered to women at fair jobs is limited, farmers are inactive about skills training, some LEFs are old and can hardly be employed; farmers with fishponds acquired earn relatively less by working at factories.

5) Information disclosure and public participation

Since the beginning of the Project, the IAs have attached great importance to public participation, conducted extensive consultation with the AHs, village collectives and affected entities by means of newspaper, website, FGD, baseline survey, announcement, etc. in AP identification, DMS result disclosure, policy publicity, livelihood restoration program preparation, etc., and replied to questions raised by the APs timely.

6) Grievance redress

During RP preparation and implementation, a transparent and effective grievance redress mechanism has been established, and notified to the APs by means of FGD and notice. The main grievances in this round of M&E include:

a. Ownership and rental distribution of neighborhood centers: Currently, the neighborhood centers of Lukou, Wangjiawan and Huayuan Villages are owned by Gutan Real Estate Investment Co., Ltd., the village collectives have the right of use, and each villager is entitled to income on a building area of 10m2. There are disputes over the ownership of the neighborhood centers; the Dabieshan Financial Center has entered the Lukou Village Neighborhood Center, but will not generate income until the next year, while the neighborhood centers of the other villages are under construction. Negotiations on income distribution are underway. (See Appendix 7 for details.)

b. Some land has been acquired, but the compensation has not been paid, because land pre- reservation is not deemed lawful by the NED Land and Resources Office (see Section 7.2.2).

c. Site selection of the resettlement community for Baizhangzui Village: The LEFs in

Baizhangzui Village want to have an exclusive resettlement community, and this is their perquisite to LA.

7) GAP and SAP

During project implementation, HPMO and the local governments pay attention to women’s rights and interests, and the resettlement of vulnerable groups. Women are well aware of the LA compensation policies. Many jobs have been offered to local residents under the Project, and priority given to the poor, but the proportion of women receiving such jobs is low, mainly because many jobs are physically demanding and not suitable for women. The Lukou Town Government has done a lot in environmental management, fully motivated women to participate, and disclosed results regularly. Publicity on environmental protection, waste separation, public health and AIDS prevention is conducted by means of leaflet, bulletin board and banner mainly, and relevant training has been started. No new community will be established until the completion of NED.

8) Social security

LEFs in Baizhangzui, Cigang, Lukou, Wangjiawan, Huayuan and Santaihe Villages have been insured after the new policy became effective in 2015, where the county (city/district) government offers one-time insurance compensation to each LEF. The individual may cover basic endowment insurance for urban employees, or basic endowment insurance for urban and rural residents. LEFs in Xiejiaxiaowan Village, Xiahu Fish Farm, Santaihe Village and Baitan Lake Fish Farm were insured before the new policy became effective, where NED, the village collective and the individual bear 40%, 20% and 40% respectively, and the insured will receive at least 400 yuan/month after retirement. For each identified worker of Nanhu Farm, the premium is borne by the Nanhu Farm Office, individual and state at 17%, 10% and 73%.

Issues: 1) Social security coverage in Baizhangzui Village: Some villagers of this village think that part of the acquired land is collectively owned, so both the affected and unaffected villagers should be insured. 2) Social security coverage in Huayuan Village: some LEFs under 18 years were excluded from endowment insurance for LEFs at the time of LA, but are not at or above 18 years, so they think they should be insured.

8.2 Suggestions 1) Handle the preparatory LA procedure lawfully.

HPMO should ensure that land pre-reservation is lawful in consultation with the land and resources authority, complete the LA approval procedure as soon as possible, and pay LA compensation to the AHs timely and fully.

2) Assign more government staff for LA.

The government should assign full-time staff to assist the construction agent in coordination and promote project implementation.

3) Strengthen institutional capacity, make clear authorities and responsibilities, and stabilize the staff.

HPMO should make the staff of the Baitan Lake Area Land and Resources Office familiar with the Project’s resettlement impacts, policies and programs; HPMO and the construction agent should apply rational management and incentive mechanisms, and keep their staff stable, thereby ensuring stable and continuous project progress. Except the construction agent, all agencies concerned should make clear and carefully perform their respective duties to promote successful project implementation.

4) Continue to pay attention to the implementation of the SAP and the GAP.

Opinions and needs of women and old people should be fully considered in any new design; more jobs should be offered to poor population and women, and their pay levels should not be lower than those specified in the updated RP; training on solid waste management, environmental protection, waste separation and disease prevention should be conducted; more policy subsidies and support should be offered to the poor population affected by the Project to ensure their basic living standard.

5) Conduct public participation continually, and address issues raised by farmers through consultation.

In subsequent project implementation, project and LA information should be fully disclosed, and the APs should have sufficient opportunities to express their opinions.

For the ownership and rental distribution of neighborhood centers, all stakeholders should strengthen communication and consultation to determine the ownership and distribute income rationally on the basis of protecting villagers’ basic rights and maximizing benefits. For the resettlement community for Baizhangzui Village: HPMO, the government and the village collective should strengthen consultation, fully consider villagers’ needs and optimize the design to ensure normal project implementation progress.

6) Solve the employment problem of LEFs.

The government should give priority to LEFs in employment, such as placing them to jobs offered by village collective enterprises, introducing them to suitable jobs, and training them based on market needs.

Appendix 1: Land Approval

Appendix 2: Surveying and Delimitation Results Pre-reserved land for HGH-C1.9 Unit: mu Farmland Construction land Unused land

Water area and water Water area and water Village Ownership Total Transport land Residential land Total facility land facility land

Rural road 104 Pond surface 114 Rural residential land 072 Lake surface 112 Baitan Lake Fish State-owned 63.15 0.27 0.12 63.15 Farm Xiahu Fish Farm Collective 6.64 6.64 6.64 Wangjiawan Village Collective 33.32 33.32 Santaihe Village Collective 24.73 24.73 Xiejiaxiaowan Village Collective 44.13 44.13 Huayuan Village Collective 19.37 19.37 Collective 128.19 121.55 121.55 6.64 6.64 6.64 Total State-owned 735.94 384.58 269.67 39.86 39.86 6.64 Subtotal 4740.33 1158.31 698.69 279.03 212.59 13.29

Land use for HGH-C1.2, 1.4, 1.5, 1.6 and 1.7 Unit: mu Unus Farmland Construction land ed land Garde Water Cultivated land Wood land n land area Water area and Speci Transp Resident Grass and Owners water facility Other land al Village Total Oth ort land ial land land water Total hip land land Irrigat Fore er facility Vegeta Non- ed Orcha st woo land ble land irrigated land rd 021 land d Intensi Protect Rural Funer Other 013 land 014 Rural Pond Can Lake 011 031 land ve fish ed farm residenti al grass road surface al surfac 033 pond land al land land land 104 114 117 e 112 129 112 072 095 043 Baizhang Collectiv 124.2 zui 592.28 2.37 119.34 1.4 3.95 12.45 185.04 5.3 21.92 0.45 40.79 75 592.28 e 8 Village Cigang Collectiv 92.58 12.35 0.65 34.71 0.75 0.82 41.36 0.14 0.81 0.26 0.72 92.58 Village e Xiahu Collectiv Fish 0.47 0.47 0.47 e Farm Baitan State- 29.5 325.8 Lake Fish 1472.42 23.53 0.64 26.34 516.04 2.33 477.88 28.88 41.38 1472.42 owned 4 6 Farm Polytechn State- 43.46 0.27 0.04 0.72 0.42 38.45 3.43 0.14 43.46 ic School owned Nanhu State- 0.73 0.73 0.73 Farm owned Collectiv 142.2 21.0 108.5 1016.1 3.02 192.15 1.86 2.03 16.33 446.15 0.43 0 5.58 24.7 0.71 51.38 1016.1 e 2 4 2 State- 30.2 325.8 Total 1516.61 0.27 0 23.57 0.64 0 26.76 555.22 2.33 481.31 0 29.02 0 41.38 1516.61 owned 6 6 142.4 434.3 Subtotal 2532.71 3.02 215.72 2.5 51.3 2.03 43.09 1001.37 2.76 481.31 5.58 53.72 0.71 92.76 2532.71 9 8

Appendix 3: LA Compensation Agreements of HGH-C1.2, 1.4, 1.5, 1.6 and 1.7

LA Compensation Agreement of Baizhangzui Village

LA Compensation Agreement of Cigang Village

LA Compensation Agreement of Xiahu Fish Farm

LA Compensation Agreement of Lukou Village

Appendix 4: LA Compensation and Land Pre-reservation Agreements of HGH-C1.9

Power of Attorney and LA Agreement of Lukou Village

LA and Land Pre-reservation Agreements of Xiahu Fish Farm

LA and Land Pre-reservation Agreements of Huayuan Village

LA and Land Pre-reservation Agreements of Wangjiawan Village

LA and Land Pre-reservation Agreements of Xiejiaxiaowan Village

Appendix 5: Payment Vouchers and Disbursement Application

Announcement on Fund Disbursement for Ground Attachments in the Shanhu Breeding Base Affected by HGH-C1.2, 1.4, 1.5, 1.6 and 1.7

Application Report and Payment Voucher for Ground Attachment Compensation of 270,000 yuan in Cigang Village

Payment Voucher for Ground Attachment Compensation of 1,330,718 yuan in Wangjiawan Village for HGH- C1.9

LA Compensation Payment Vouchers for HGH-C1.9

Payment Vouchers of Nanhu Farm

Appendix 6: Monitoring matrix of SAP and GAP

Monitoring result of Social Action Plan

Proposed actions Monitoring indicators Monitoring results Challenge and next step Measures to enhance project benefits A. Strengthening community participation and optimizing the project design 1. Measures to improve the benefits of Urban Lake and  Number and mode of River Improvement discussions;  The design will be discussed with local residents;  Setup of lakeside leisure  Lakeside leisure squares and facilities will be provided  More attention should be squares and facilities, and to meet the needs of women, children and old people; paid to needs of vulnerable consideration of needs of  There was no additional design in H2  Safety on and around the lake (including guardrails, groups in future design; women and old people; 2018; streetlamps, warning signs, green belts, cameras and  More supporting facilities  Setup of relevant facilities, and  No dustbin was set up in H2 2018. other protective measures) will be installed, and needs should be provided with the consideration of needs of of women and old people are met. progress of construction. women and old people; 2. Solid waste management  Positions, spacing and style of  The positions, spacing and style of dustbins will be dustbins discussed with local residents. B. Creating job opportunities and increasing residents’ income  About 150 skilled and 2,300 unskilled jobs will be created by Urban Lake and River Improvement during  Jobs offered by the Project  Among the 7 contracts that have broken  Jobs should be further construction;  Number of local residents ground, 489 jobs have been offered to offered to local residents in  33 skilled jobs (wetland and solid waste management, employed local residents (84.7% of all employees) subsequent construction; etc.), and about 100 public welfare jobs (waste  Number of women and poor and 12 to poor population (2.1%), more  Priority should be given to transfer, cleaning, landscaping, etc.) will be created at residents employed than one year ago, with pays of 90-100 the employment of women the construction stage;  Wages of local residents yuan/day or 2500-3,000 yuan/month. and the poor.  Jobs suitable for women and the poor will be created. Measures to reduce potential risks A. Community management and environmental protection  Number of newly established  New communities and  NED will join in the existing community management communities  No new community and no community community environmental pattern;  Number of newly established environmental protection team have protection teams will be  Community environmental protection teams (2 of 3-5 community environmental been established. established after NED members are women) will be established. protection teams completion. B. Giving solid waste publicity to improve public environmental awareness

 About 2,000 copies of the leaflet were  A brochure should be distributed in the affected villages of prepared and 300 copies Lukou Town, and about 1,300 copies in  A brochure on solid waste management will be  Brochure preparation and distributed; Santaihe Village; designed; distribution  A community participation  No community participation handbook  A community participation handbook on solid waste  Community participation handbook should be has been prepared, because no new separation and NED environmental protection will be handbook prepared, and activities community has been established; prepared;  Time, frequency and number recorded;  Each village has a waste control leading  Training on solid waste separation and collection will of participants of public  Training should be offered group and sanitation rules. There were be offered. participation for not less than twice in about 10 public participation activities in 2018, with not less than 100 environmental management in the participants per time. second half of 2018. C. Public health and AIDS prevention education  Each construction contract includes a  The contract will include provisions on AIDS and other  Contract terms and provision on AIDS and other infectious infectious diseases; performance diseases;  Public health and AIDS prevention education will be  Training courses and number  No training on public health and AIDS  A training course on public given to construction workers and NED residents; of trainees prevention has been offered in H1 2018; health and AIDS prevention  Health and safety measures will be taken for  Health and safety measures  The municipal disease prevention and was offered in July 2018. construction workers (temporary infirmaries, local  AIDS prevention publicity at control center has a STD and AIDS medical resources); the construction stage prevention department;  AIDS prevention publicity will be given in diverse ways.  Publicity is conducted by banner mainly. D. Public consultation and grievance redress mechanism  1. Public consultation and participation  Project information has been disclosed  Time, scope and mode of  Project information will be made available to local by project information boards and layout project information disclosure residents (at least 50% of participants being women plans;  Time, scope and mode of and the poor);  Bidding information for HGH-C1.7, construction information  Any project update will be  Construction information will be disclosed, including HGH-C1.5, HGH-C1.10 and HGG-M2.2 disclosure further disclosed. possible impacts; was released online in the second half  Time, scope and mode of  The public will participate in livelihood restoration; of 2018 (see Chapter 6 for details); community building  The NED master plan and schedule will be disclosed;  No new community has been information disclosure  Job and development opportunities will be disclosed. established. AP = Affected Person, HMWF = Huanggang Municipal Women’s Federation, HPMO = Huanggang Project Management Office, mu = Chinese unit of area (1 mu = 666.67 m2), NED = New Eastern District, PIC = Project Implementation Consulting

Monitoring results of Gender Action Plan

Action Targets and indicators Monitoring results Remarks

Output 1: Urban Lake and River Improvement  At least 30% of women participate in the  There was no additional design in  Over 30% of participants in design of this component; H2 2018; the design of other  Lakeside leisure squares and facilities will be provided components should be to meet the needs of women;  100% of women are aware of the LA  100% of affected women are women; compensation program; aware of the LA compensation  Safety on and around the lake (including guardrails, policy;  Jobs should be offered to walking paths, streetlamps, warning signs and other  2,130 jobs created during project women in the future where protective measures) will be installed, and women’s construction of which 30% are filled by  577 jobs have been generated at possible; needs for leisure and amusement are met; women. the construction stage (23.55% of all the 2,450 jobs expected to be  Challenge: Jobs generated  Resettlement and public low-cost rental housing generated by the Project), in which by the Project may be constructed by HMG within the NED will be designed 53 women have been employed physically demanding or and allocated in consultation with women; (9.19% of all employees), mainly skilled, and unsuitable for  Policies and programs on compensation for land serving as handymen and file women; clerks. acquisition will be disclosed to all affected persons, and  HPMO may offer more skills women will have the right to receive compensation fees; training for women to  Ensure job opportunities are advertised and available to promote their reemployment. women through project staff, labor bureau and HMWF.

Output 2: Solid Waste Collection and Transfer System

 Location, distances, and design of waste bins will be  Women participate in the design of waste  Over 30% of participants in waste  In the second half of 2018, decided in consultation with women; collection and separation; collection and separation design the HGG-M2.2 package are women; tender announcement was  The time, venue, and form of publicity and training on  At least 30% of trainees are women; posted online. waste separation and environmental protection meet  Training has not begun, but women’s needs;  320 jobs created during project environmental management at construction of which 30% are filled by the town and village levels has  Ensure job opportunities are advertised and available to women; improved women’s environmental women through project staff, labor bureau and HMWF.  NED and Huangzhou District residents’ awareness; knowledge of waste sorting, reuse,  Waste separation awareness has recycling, and safe disposal increased not been evaluated, but there has from 7% to 75%. been significant improvement in waste treatment in all villages.

Output 3: Capacity Development and Institutional Strengthening

 Women will participate in the existing community  At least 60% of community management  No new community has been  New communities will be management after the completion of NED; staff members are women; established. established after the completion of NED.  Women will participate in community environment  At least 2 of 3-5 members of community protection group; environment group are women, number and kind of public awareness, gender  Women will participate in publicity and education on disaggregated; environmental protection;  A four-year (2016–2019) training plan is  Women will participate in training programs. developed and implemented, with a target of 20% women participation.

M&E

 Social and gender experts will be recruited at the  Completion of the M&E report on GAP  5 person-months of PIC; The HPMO staff was trained in implementation stage to support the implementation of and SAP; November 2018. GAP and SAP;  The head of social and gender  Terms of reference for HPMO social and affairs of HPMO was formerly Wu  HPMO will assign persons to be responsible specifically gender mainstreaming expert and Nina, who later resigned; for social-gender mainstreaming, in addition to the number of people assigned; currently, Wang Kun is implementation and reporting of GAP and SAP; responsible for the SAP and Lu  Time, venue, number and gender of Hua for the GAP;  Gender-based data will be collected in the management participants in GAP and SAP trainings; information system to ensure the monitoring, evaluation  Training on GAP and SAP has not and reporting of GAP and SAP;  Indicators involving social development been offered. and gender in PPMS  Publicity and training on GAP will be provided to the key staff of the HPMO and HUCIC.

GAP = Gender Action Plan, HMWF = Huanggang Municipal Women’s Federation, HPMO = Huanggang Project Management Office, M&E = monitoring and evaluation, NED = New Eastern District, SAP = Social Action Plan, PIC = Project Implementation Consulting, PPMS = Project Performance Management System

Appendix 7: Interview Minutes

Time December 26, 2018 Venue Lukou Village Committee Interviewee Head of Lukou Village Participants HPMO, Hohai University Topics LA compensation progress, environmental protection, livelihoods, social security, neighborhood center construction, care for vulnerable groups, etc. Key points 1. Neighborhood center: It is owned by Gutan Real Estate Investment Co., Ltd., and and results leased to the Dabieshan Financial Center (without a contract). The neighborhood center has a floor area of 6,000 m2 and a building area of 30,000 m2, and 6 floors. It is leased at 8 yuan/m2 (10 m2 per capita), but the center has not begun to generate income. 2. LA and compensation: All land involved has been acquired except some land of Polytechnic School; no compensation was received in the second half of 2018; compenstion under Contracts 1.2, 1.4, 1.5, 1.6 and 1.7 should be paid at 3:4:3, in which 30% has been paid, and 40% will be further paid in January 2019. 3. Social security: Every villager having attained 18 years covered endowment insurance for urban residents in 2014, and will receive 600-800 yuan per month after retirement. 4. Livelihoods: 1) Training: In December 2018, e-commerce training for disabled people was offered in Lukou Village, with about 100 participants; 2) Main jobs of LEFs: Women, and middle-aged and old people usually do odd jobs, and young people work at nearby industrial parks or outside; the labor and social security service center would also organize skills training, covering aquaculture, and strawberry and grape cultivation. Villagers’ per capita income is about 16,000 yuan, in which agricultural income is over 30% (over 30% from aquaculture and over 60% from general agriculture); 3) Over 10 villagers have obtained small-amount loans. 5. Women and vulnerable groups: Two free health checkups are organized for women; except employment training, each disabled person receives a subsidy of 100-150 yuan per month. 6. Environmental protection: There is a cleaning team in the village, dealing with cleaning beside the lake on every Friday, and each member is paid 120-150 yuan per day. 7. Issues: 1) inadequate publicity; 2) untimely compensation payment; and 3) income distribution and ownership of the neighborhood center

Time December 27, 2018 Venue Baizhangzui Village Committee Interviewee Head of Baizhangzui Village Participants Baizhangzui Village Committee, Hohai University LA compensation progress, environmental protection, livelihoods, social security, site Topics selection of resettlement community, care for vulnerable groups, etc. Key points 1. Resettlement community: The resettlement community for Baizhangzui Village has not

and results been fixed, and this is the greatest concern of the village. Although there are still some unoccupied houses in the resettlement community for Wangjiawan Village, the LEFs are unwilling to move into it, and think that they should have an exclusive community, but also agree to live together with the LEFs from Xiejiaxiaowan and Cigang Villages. They expect the resettlement community to break ground as soon as possible. 2. LA compensation: The LA compensation for the second half of 2018 has not been disbursed. 3. Livelihoods and environmental protection: The main income source of the LEFs is doing odd jobs. Each village group has a full-time cleaner (paid 1,400 yuan per month), a big trash bin and 10 small trash bins. Social security: Some villagers think that part of the acquired land is collectively owned, so both the affected and unaffected villagers should be insured. Issues: The site of the resettlement community should be fixed, and it should break ground as soon as possible. The LA compensation should be paid timely.

Time December 27, 2018 Venue Baitan Lake Fish Farm Interviewee Farm head Participants HPMO, Hohai University Topics LA compensation progress, environmental protection, livelihoods, social security, employment of former workers, availability of 20m2 of commercial land Key points 1. For the outstanding issue of 20m2 of commercial land in the previous report, relevant and results information is as follows: At the beginning of the Project, it was agreed with NED that resettlement compensation for 40m2 per capita and income on 10m2 of commercial land per capita were to be offered to Baitan Lake Fish Farm. However, since the farm is state-owned, it has no land compensation, and the planned compensation measure cannot be implemented. After renegotiation with NED, 20m2 of commercial land was to be offered. However, this measure has not been implemented yet. 2. Livelihoods of fish farm workers: Some workers live in houses leased outside, and their main income source is doing odd jobs. The former workers of Baitan Lake Fish Farm are not working at Xingfu Fish Farm, nor are they doing any job related to the Project. 3. Issues: 1) The 20m2 of commercial land should be made available as soon as possible. 2) Eligible workers having attained the specified age after 2017 should cover endowment insurance. 3) The compensation rate for medical insurance is too low.

Time December 26, 2018 Venue Wangjiawan Village Committee Interviewee Head of Wangjiawan Village Participants Wangjiawan Village Committee, Hohai University

Topics LA compensation progress, environmental protection, livelihoods, social security, site selection of resettlement community, rental distribution, care for vulnerable groups, etc. Key points 1. Neighborhood center: It is currently owned by Gutan Real Estate Investment Co., Ltd., and results the village collective has the right of use, and each villager is entitled to income on a building area of 10m2. It will be completed and put into use as an administrative center in February 2019. Villagers are concerned about rental distribution. 2. LA: All 150m2 of land of this village has been acquired, but part of the compensation has not been paid. Villagers have already received the LA compensation from collective funds (mainly from withheld LA compensation in other projects). 3. Livelihoods: No employment training for LEFs was offered in the second half of 2018, the LEFs mostly do odd jobs and have almost no agricultural income, and some LEFs are unemployed. 4. Social security: The premium is paid at 4:2:2. 5. Over 40 villagers work at the administrative service center under construction, in which security guards are paid 2,400 yuan/month and cleaners paid 1,800 yuan/month. 6. Poverty reduction: For vulnerable and poor villagers, an MLS benefit of 300-500 yuan/month is offered, and some subsidies granted on holidays. Edible oil, rice and 200 yuan of cash were granted to each poor villager on the Spring Festival. Issues: The greatest concern is the availability of funds, and the rental distribution of the neighborhood center.

Time December 27, 2018 Venue Santaihe Village Committee Interviewee Head of Santaihe Village Participants Santaihe Village Committee, Hohai University Topics LA compensation progress, environmental protection, livelihoods, social security, care for vulnerable groups, etc. Key points 1. Over 100 mu of land has been acquired. The LA compensation is being disbursed, and and results the ground attachment compensation has been paid by 80%. The village still has over 100 mu of scattered cultivated land. Groups 1, 3 and 5 are affected by LA mainly. 2. Livelihoods: All fishponds have been acquired and leveled. The local households dealing with aquaculture are contracting fishponds at other fish farms at 280 yuan/mu, and the non- local ones are not contracting fishponds locally. 3. Employment training: The Huanggang Municipal Labor and Social Security Bureau organized training for farmers in the second half of 2018, involving about 30 villagers in Santaihe Village, and two skills training courses for women, covering computer, cooking, housekeeping, etc., with 20-30 trainees each. NED would organize one or two health checkups for women annually. 4. Issues: The LA compensation has not been paid timely, and the ground attachment compensation has not been paid at a time.

Time December 26, 2018 Venue Huayuan Village Committee Interviewee Head of Huayuan Village Participants Huayuan Village Committee, Hohai University Topics LA compensation progress, environmental protection, livelihoods, social security, neighborhood center, care for vulnerable groups, etc. Key points 1. Neighborhood center: The land used for the neighborhood center is collective land. The and results neighborhood center is currently owned by Gutan Real Estate Investment Co., Ltd., the village collective has the right of use, and each villager is entitled to income on a building area of 10m2. The rental for the neighborhood center has not been paid. The APs were not resettled in 2018. 2. Social security coverage: Some LEFs under 18 years were excluded from endowment insurance for LEFs at the time of LA, but are not at or above 18 years, so they think they should be insured. When all land was acquired in 2014, nearly 1,480 villagers were insured, and the premium was borne by HMG, the individual and collective at 40%, 40% and 20%. 3. All land of this village has been acquired, and agricultural income is almost zero. Villagers’ mainly income sources are self-employment, odd jobs and individual business.