Wuzhi Wastewater Treatment and Water Supply Sub-Project

Resettlement Planning Document

Resettlement Plan Document Stage: Revised Project Number: L2207 August 2006

PRC: Henan Wastewater Management and Water Supply Sector Project

Prepared by Wuzhi County People’s Government

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

REVISED RESETTLEMENT PLAN

Wuzhi Wastewater Treatment and Water Supply Sub-project

Under

Henan Wastewater Management and Water Supply Sector Project

IN THE

PEOPLE’S REPUBLIC OF CHINA

Wuzhi County Construction Committee August 2006

1 ENDORSEMENT LETTER OF THE RESETTLEMENT PLAN

Wuzhi County Construction Committee has prepared the resettlement plan for Asian Development Bank (ADB) financed wastewater treatment project in our county. This resettlement plan fully complies with requirements of the relevant laws, regulations and policies of People’s Republic of China and Henan Province as well as complies with ADB’s policy on involuntary resettlement.

Wuzhi County People’s Government hereby confirms the content of this resettlement plan and will guarantee the land acquisition, compensation and relocation budget being provided according to the provisions of this resettlement plan. This resettlement plan is based on the detailed design and detailed measurement surveys.

Signature of Head of the County: Du Yu

Wuzhi County People’s Government

March 28, 2006

ABBREVIATIONS

AAOV Annual Average Output Value ADB Asian Development Bank APs Affected Persons CCSMEDRI China Central South Municipal Engineering Design and Research Institute DMS Detailed Measurement Survey EA Executing Agency FSR Feasibility Study Report HWMWSP Henan Wastewater Management and Water Supply Project IA Implementing Agency LAR Land Acquisition and Resettlement LARO Land Acquisition and Resettlement Office MEA Monitoring and Evaluation Agency NGO Nongovernment Organization PMO Project Management Office PPO WWTP Project Preparation Office PRC People’s Republic of China RIB Resettlement Information Brochures RP Resettlement Plan TA Technical Assistance TOR Terms of reference VCRLT Village Committee Resettlement Leading Team WWTP Wastewater Treatment Plant (Project)

TABLE OF CONTENTS

EXECUTIVE SUMMARY...... 8 1. Introduction and Project Description ...... 11 1.1. Introduction...... 11 1.2. Project Background...... 12 1.3. Project Description...... 12 1.3.1 Project Location...... 12 1.3.2 Main Construction ...... 12 1.3.3 Investment Estimation and Implementation Schedule...... 13 1.3.4 Socioeconomic Benefits of the Project ...... 13 2. Socioeconomic Background of the Affected Areas...... 14 2.1 Background of the City Affected by the Project ...... 14 2.1.1 Features of the city...... 14 2.2.2 Urban Layout ...... 14 2.2.3 Population ...... 14 2.2 Basic Situations of Affected Areas ...... 14 2.2.2 Mucheng Town ...... 15 2.2.3 Socioeconomic Situations of Project Area...... 15 2.3 Socioeconomic Survey for Resettlement ...... 15 2.3.2 Regions Affected by Temporary Land Use ...... 16 2.3.3 Socioeconomic Conditions of the Displaced Households Affected by the Project...... 16 2.4 Sampling Survey on the APs...... 17 2.4.1 Statistic characteristics of APs ...... 17 2.4.2 Age range situation of the Population...... 17 2.4.3 Educational Background of the APs ...... 17 2.4.4 Average annual family income and expenditure per household...... 17 2.4.5 Minority Families and Vulnerable Groups...... 18 2.4.6 Willingness to Accept Retraining...... 18 2.4.7 Information about the Project and Land Acquisition ...... 18 3. Project Impacts ...... 19 3.1 Types of loss Caused by Land Acquisition...... 19 3.2 Measures to Avoid or Reduce Land Acquisition to the Uttermost ...... 19 3.2.1 Measures to reduce land acquisition during project design ...... 19 3.2.2 Measures in Construction Stage to Enhance Land Acquisition and Resettlement Implementation ...... 19 3.3 Project Impacts...... 20 3.3.1 Survey Methods ...... 20 3.3.2 Summary of Project Impacts...... 20 3.3.3 Historical Relics and Vulnerable Groups...... 21 3.3.4 Public Concerns ...... 21 3.4 Project Impact Analysis...... 22 4. Legal and Policy Framework...... 24 4.1 Legal framework - State/ Local Law and Regulations...... 24 4.1.1 Legal framework...... 24 4.1.2 Relevant Legal Extracts ...... 25 4.2 ADB Policy on Involuntary resettlement...... 30 4.2.1 Overall Objective of ADB Involuntary Resettlement Policy ...... 30 4.2.2 Resettlement Plan Preparation ...... 31 4.3 Resettlement Objectives and Planning Principles...... 32 4.3.1 Resettlement target...... 32 4.3.2 Resettlement plan principles ...... 32

4 4.4 Compensation Rate ...... 33 4.4.1 Compensation Principle...... 33 4.4.2 Compensation Rates for Land Acquisition and Resettlement...... 33 4.4.3 Cut-off Date ...... 35 4.4.4 Payment of Compensation ...... 35 4.4.5 Procedures for Compensation Payment ...... 35 4.4.6 Eligibility and Entitlement for Compensation ...... 36 5 Compensation and Rehabilitation Measures...... 39 5.1 Resettlement Strategy...... 39 5.1.1 Resettlement Objective ...... 39 5.1.2 RP Principle ...... 39 5.2 Rehabilitation Measures for Permanent Land Acquisition ...... 39 5.2.1 Compensation Fund and Distribution ...... 39 5.3 Rehabilitation Plan for Temporary Land Use ...... 40 5.4 Women and Vulnerable Groups Rights Protection...... 40 6 Institutional and Organizational Structure ...... 41 6.1 Institutional Framework...... 41 6.2 Institutional Framework and Responsibilities...... 41 6.3 Staffing...... 43 6.4 Measures to Strengthen Institutional Capacity Building...... 43 7 Public Participation and Consultation...... 44 7.1 Public Participation...... 44 7.1.1 Resettlement Information Brochures (RIB)...... 44 7.1.2 RP Distribution ...... 44 7.1.3 Public Consultation in Project Preparation Phase...... 44 7.1.4 Public Participation and Consultation Activities in Project Implementation Phase...... 47 7.2 Grievance Redress Procedures...... 49 7.2.1 Targets for Grievance Redress Procedure ...... 49 7.2.2 Grievance Redress Approaches...... 49 7.2.3 Grievance Redress Scope...... 49 8. Monitoring & Evaluation...... 51 7.3 Internal M&E...... 51 8.1.1 Main Monitoring Contents...... 51 8.1.2 Internal Monitoring Objectives...... 51 7.4 External M&E...... 51 8.2.1 External Monitoring Objectives...... 51 8.2.2 Means and Methods ...... 51 8.2.3 Reporting Requisition ...... 52 8.2.4 Resettlement M&E Outline...... 52 9. Resettlement Budget ...... 54 9.1 Contents of Resettlement Costs ...... 54 9.1.1 Land Acquisition & Resettlement ...... 54 9.1.2 Infrastructures and Facilities...... 54 9.1.3 Other Costs...... 54 9.1.4 Contingencies...... 55 9.2 Budget Table on Resettlement Costs...... 55 9.3 Resettlement Investment Plan...... 56 10. Implementation Arrangements and Schedule ...... 57 10.1 Principles on Confirming Resettlement Schedule...... 57 10.2 Overall Schedule of Land Acquisition and Resettlement Activities ...... 57 11. Due Diligence and Retrofit Measures...... 59 11.1 Due Diligence ...... 59 11.2 Retrofit Measures...... 60

5 11.3 Resettlement Result...... 60 Appendix 1...... 61 MINUTES OF GROUP MEETING WITH PARTS OF VILLAGE LEADERS ...... 61 AND PUBLIC REPRESENTATIVES...... 61 Appendix 2...... 62 MINUTES OF NEGOTIATION MEETING ON RESETTLEMENT AND REHABILITATION...... 62 Appendix 3...... 65 NAME LIST OF WUZHI QIANNIU VILLAGE WWTP LEADING GROUP...... 65 Appendix 4...... 66 STATUS OF AFFECTED HOUSEHOLDS IN WUZHI WWTP ...... 66

6 TABLES

TABLE 2-1 POPULATION STRUCTURE OF WUZHI...... 14 TABLE 2.2 SOCIAL POPULATION SITUATIONS...... 15 TABLE 2.3 SOCIOECONOMIC SITUATIONS OF THE VILLAGES AFFECTED BY THE PROJECT ...... 16 TABLE 2.4 SOCIOECONOMIC PROFILE OF THE VILLAGES AFFECTED BY PERMANENT LAND ACQUISITION ...... 16 TABLE 2-5 EDUCATION BACKGROUND OF THE APS IN SURVEY ...... 17 TABLE 2-6ANNUAL INCOME AND EXPENDITURE STRUCTURE OF THE FAMILIES INTERVIEWED ...... 18 TABLE 3.1THE CATEGORIES AND QUANTITIES OF THE LAND PERMANENTLY ...... 20 TABLE 3-2 TYPES AND QUANTITIES OF INFRASTRUCTURE AND FACILITIES ...... 21 TABLE4.1 COMPENSATION STANDARD OF AAOV...... 30 TABLE 4-2 ABSTRACT OF RESETTLEMENT PRINCIPLES...... 33 TABLE 4.3 COMPENSATION RATES CALCULATION FOR PERMANENT LAND ACQUISITION...... 34 TABLE 4.4 COMPENSATION RATES FOR PERMANENT LAND ACQUISITION ...... 34 TABLE 4.5 COMPENSATION RATE FOR TEMPORARY LAND USE ...... 34 TABLE 4.6 COMPENSATION RATE FOR GROUND ATTACHMENT & FACILITIES ...... 35 FIGURE 4.1 COMPENSATION PAYMENT PROCEDURES ...... 36 TABLE 4-7 ENTITLEMENT MATRIX ...... 37 TABLE 6-1 RESETTLEMENT ORGANIZATION STAFFING REFERRED IN THE PROJECT...... 43 TABLE 7-1 PUBLIC PARTICIPATION DURING TA TO THE PROJECT ...... 46 TABLE 7-2 PUBLIC PARTICIPATION STATUS ...... 48 TABLE 8-1RESETTLEMENT M&E OUTLINE ...... 53 TABLE 9-1 COST ESTIMATION FOR LAND ACQUISITION AND RESETTLEMENT OF WUZHI WWTP PROJECT ...... 55 TABLE 9-2 RESETTLEMENT INVESTMENT PLAN BY STAGES ...... 56 TABLE 10-1 SCHEDULE OF LAND ACQUISITION AND RESETTLEMENT ACTIVITIES...... 58

7 EXECUTIVE SUMMARY

A. Background and Impacts Assessment

1 As proposed, Wuzhi county wastewater plant, occupying 50mu, was located in the east of the Dongsanhuan Road, south of Erganpai, 1.7 kilometers to the northeast of Qianniu village, 2.6 kilometers to the southeast of Xiaoyan village, 1.4 kilometers to the northwest of Wuzhi middle school, and 20 kilometers to the north of Jiaoxin thruway. The access road to the plant occupied 5mu, and totally the land permanently expropriated amounted to 55 mu.

2 This Project has two parts to be constructed, including secondary treatment facility of the wastewater plant and wastewater pipeline network outside the plant. The treatment capacity of the plant is confirmed to be 30,000m3/d for the near stage (2010) and 50,000m3/d for the long term stage (2020).

3 The network outside the plant contains Hongqi Road wastewater system, Xinghua Road wastewater system, Heping Road wastewater system, sewage system to the south of Liang Street and Beihuan road sewage system. The diameter of the reinforced concrete sewers ranges from 300 to 1200 mm with a total length of 78 km. The wastewater water transportation pipes are made of reinforced concrete. And the detailed design has been approved.

4 The project needs to permanently expropriate the rural collective land of Qianniu Village in Xieqiying Town. Totally it needs to occupy 55 mu of irrigated land with effect on 14 households with 60 persons. The land temporarily used mainly refers to that affected during the construction of pipeline network and it amounts to 144 mu including 99mu of dry land and the other 45 mu of roads.

B. Policy Framework and Entitlements

5 The resettlement principles of the Project are based on the land acquisition laws and regulations of PRC and ADB’s Policy on Involuntary Resettlement. , and that for compensation, resettlement and income rehabilitation is so flexible to permit difference between villages and communities of cities, which exists in kind and cash compensation and selection of income rehabilitation between community-based and private organizations. The key point is to ensure that all the APs get sufficient compensation and assistance of income rehabilitation. The main purpose of RP is to rehabilitate APs’ income and living standard minimizing the damage on their own economic and social environment. Special attention has been given to meet the need of the affected underprivileged and vulnerable groups. Due to the principle and qualification of compensation entitlement, an entitlement matrix has been formulated to guide payment of compensation and implementation of RP, and the matrix covers all varieties of loss including loss and rehabilitation cost of land, temporary/permanent income sources.

C. Rehabilitation and Income Restoration

6 All affected persons will be compensated as set out in the project entitlement matrix in this RP. During Project implementation, efforts will be made to further minimize the land acquisition and resettlement impacts.

7 The income restoration and rehabilitation measures have been drafted in this RP according to the local economic situation and the purpose is to guarantee the living standards

8 and livelihood of the affected persons equal or better than the ones before the project. These income restoration and rehabilitation measures have been developed in consultation with all affected persons and they have reflected the most practical ways for the easy implementation during the project.

D. Institutional Arrangements

8 Leading Group is comprised of Wuzhi Government Government, Project Management Office, Construction Commitment, State Land Bureau, Environment Bureau and Water Affair Group, and etc. This team is responsible for enhancing leadership of the project, formulating resettlement policy and coordinating the organizations. Also, the leading team has the sub-office which is to treat routines, subordinated to Wuzhi Water Supply Company.

E. Public Consultation and Disclosure

9 Public participation is an essential component in the Project. For this several times of meetings have been held. These meetings and survey outcomes have had remarkable influences upon policies and compensation entitlement in the resettlement plan, particularly in formation of compensation rate, cash compensation and formation of income rehabilitation strategies based on livelihood/training program. Although several public consultations have been made, the Project executors still bear in their mind the need of extra consultation meetings during the land acquisition and construction. Main activities conducted included: (i) printing and distribution of the Resettlement Information Booklet in Chinese version, including description of policy, compensation entitlements, compensation rate and amount, appeal procedure and resettlement/land acquisition plan; (ii) holding formal villager meetings to decide the allocation of compensation; (iii) carefully making an on-the-spot measurement, and reaching consensus with the affected families/enterprises in land, property and other final necessities for acquisition and resettlement.

F. Complaints and Grievances

10 Appeal procedure was set up to solve the disputes in compensation and the resettlement interest on the purpose of responding to the affected persons’ grievances timely and transparently. The affected persons are entitled to file the grievances against any dissatisfaction in land acquisition and rehabilitation, including the amount of compensation paid to them. In the Resettlement Information Brochure, detailed procedures for acceptance and processing of grievance were issued, and these procedures will also be interpreted to the affected persons at the public meeting held by the IA or the county PMO prior to the land acquisition and resettlement.

G. Monitoring and Reporting

11 Implementation of the resettlement plan will be monitored internally and externally. The IA has assumed responsibilities for the internal monitoring. County land acquisition and resettlement offices staffed with the independent supervisors. Wuzhi Construction Committee will compile the quarterly report to submit to ADB, with contents covering the implementing progress of resettlement plan, emphasizing whether it conforms to the principle set forth in the Resettlement Plan and requirements in the compensation entitlements matrix. The EA has engaged an independent monitoring organization to make external monitoring together with the ADB, prepare evaluation report on the resettlement progress after commencement of construction, specifying the distribution of the compensation, and other measures to maintain or

9 improve the affected persons’ social and economic living conditions against the “non-project” conditions.

H. Cost Estimate of Resettlement

12 According to the project feasibility study report and resettlement survey, the resettlement costs are estimated to be CNY4.52 million, including 15% contingency costs. The budget can be adjusted based on the actual measurement of physical losses during the project implementation. The EA has ensured adequate funding for resettlement implementation and will provide budgets as necessary to meet eventual shortfall that emerges in achieving the resettlement objectives.

10 1. Introduction and Project Description

1.1. Introduction

13 In accordance with ADB Policy on Involuntary Resettlement and other principles regarding social securities along with related social aspects, this resettlement plan is developed in reference to PRC’s laws/regulations and local governments’ policies on land acquisition and resettlement. This plan describes a policy framework to mitigate the adverse impacts caused by the proposed project of Wuzhi County wastewater treatment through series of remediation measures. Also the resettlement plan for the affected people and rehabilitation plan for the seriously affected villages are also involved in the framework including how and when to take these measures.

14 As Chinese governments and ADB are concerned, the primary purpose of resettlement plan is to ensure the people who unavoidably lose lands or properties in the development program have the same or better livelihood and living standards compared with that under “non-projects situations. All the policies, suggestions and compensation measures in this resettlement plan are oriented to this purpose. The implementation agency has organized the land acquisition and resettlement project office of Wuzhi County Construction Committee to construct and manage this Project. The office will directly assume the responsibility for the preparation, implementation, internal monitoring and financing of the resettlement plan.

15 This resettlement plan is formulated the following basis:

(i) City Planning Act of PRC” (ii) Land Administrative Law of PRC” (iii) Interim ordinance of PRC on Farmland Occupation” (iv) Decision of the State Council on the Strengthening of Land Management through Deepening the Reform”, (v) Implementation Rules for Land Administration Laws of Henan Province” (vi) Basic Farmland Protection regulations of Henan Province (vii) Master plan of Wuzhi County” (viii) Administration Rules For the master plan of Wuzhi” (ix) ADB’s “Policy on Involuntary Resettlement” (x) Jiaozuo Municipal Government’s Notice on Readjusting AAOV of the Land Expropriated For National Construction (xi) Relevant project reports.

16 This resettlement plan covers all aspects of resettlement and income rehabilitation caused by the construction of the proposed wastewater plant and wastewater collecting system.

17 On the basis of the survey data followed by affected scope of the whole project construction framework chart, this plan is made with the data estimated according to the construction framework chart, which must be approved by Wuzhi County People’s Government after the modification.

1.2. Project Background

18 This project belongs to the environment protection program of Huanghe River, Haihe Basin and Wuzhi County, with significant function to solve the pollution in the county and thus it is named “Wuzhi Wastewater Treatment Plant”. As a traffic hinge of Jiaozuo City, Wuzhi County belongs to the upstream of Haihe Basin, located in the Northwest of Henan Province. At present, five supporting industries containing chemicals, foodstuff, paper making, textile and machinery had been primarily formed. So its economic development situation lists at the middle-up level of Jiaozuo City, and also it has a large potential in the future. However, with the rapid economic development and population growth, the volume of the municipal wastewater is getting more and more and the pollution load rises accordingly. For a long time, the construction of the sewage system in Wuzhi County is seriously lagged, and huge amount of domestic and industrial sewage in the completed districts flows down to the Erganpai. It resulted not only that the water quality of Erganpai overrun to the IV standard, but also get a serious threat to the downstream of Weihe and Haihe drainage area.which heavily contaminates the water and such situation tends to deteriorate, doing adverse influence on the former functions of the water basins, local agricultural and industrial production, city environmental sanitation and the public health. Therefore, to build a centralized wastewater treatment plant has become urgent on the agenda.

19 According to the requirement of “Announcement about approving the prevention and cure planning of water pollution in the Huaihe and Haihe Basin” which is published by the State Department, the county must make a father plan to control the wastewater emission, and furthermore improve the water-system environment of the Wuzhi County, improve the investment attraction to realize the benefit of economy, society and environment. The Wuzhi County Government decided to build a wastewater treatment plant depending on the “Master plan of Wuzhi County”

1.3. Project Description

1.3.1 Project Location

20 As proposed, Wuzhi county wastewater plant and the access road, occupying 55mu, is located in the east of the Dongsanhuan Road, south of Erganpai, 1.7 km to the northeast of Qianniu village, 2.6 km to the southeast of Xiaoyan village, 1.4 km to the northwest of Wuzhi middle school, and 20 km to the north of Jiaoxin expressway.

1.3.2 Main Construction

21 This Project has two parts to be constructed, including secondary treatment facility of the wastewater plant and wastewater pipeline network outside the plant. Based on the expectation and integrated justification of the wastewater volume generation, the treatment capacity of the

12 plant is confirmed to be 30,000m3/d for the near stage (2010) and 50,000m3/d for the long term stage (2020).

22 The network outside the plant contains Hongqi Road wastewater system, Xinghua Road wastewater system, Heping Road wastewater system, sewage system to the south of Liang street and Beihuan road sewage system. The diameter of the reinforced concrete sewers ranges from 300 to 1200 mm with a total length of 78 km. The wastewater water transportation pipes are made of reinforced concrete and PVC pipeline.

1.3.3 Investment Estimation and Implementation Schedule

23 Investment on this project is estimated to be CNY96.15 million (including the secondary sewage network), among which CNY95.9 million is for the capital cost, and CNY251 thousand is the fluent fund for paving construction.

24 According to schedule of the major planning, the feasibility study report (FSR) and EIA were finished in May and June 2002; the resettlement activities were finished by November 2005; and the civil works commenced in December 2005 and it is planned to end the debugging and equipment in November 2006 and to operate it in December 2006 for trial.

1.3.4 Socioeconomic Benefits of the Project

25 The Wuzhi wastewater treatment plant serves the area which locates east to Wuzhi middle school, west to Chengxi Street, south to pharmacy plant, north of fertilizer plant and the Wuzhi county seat as well, covering12.3km2. The project also serves the population of 120 thousand until 2005 as forecasted by the evaluation.

26 The construction of Wuzhi wastewater treatment plant is an important part of the infrastructural facilities of Wuzhi County and a symbol of the modern civilized city as well. The implementation of this project will play an active role in changing the situation that the civil sewage flows directly into urban rivers, reducing the contamination of the waters caused by sewage, improving the environmental sanitation conditions and developing the people’s living standard and the public health level. In addition, it will be also helpful to enhance county’s investment environment, attract project investment, promote economic development and increase the celebrities of Wuzhi at home and abroad. It has very conspicuous and remarkable social benefits.

27 The urban wastewater treatment plant is a kind of public affairs. After completion and operation, it will to charge the clients in the principle of keeping profits slightly above cost to maintain its normal operation without direct economic benefits.

28 The wastewater plant, when under operation, will produce long-term indirect or potential economic benefits by improving urban environment and promoting economic development. Each year it will reduce a pollutant discharge, including 3,679 tons of COD and 1,774 tons of BOD, 2463 tons of SS, 137 tons of NH3-N, 11 tons of TP, which improves the water resources situation of the drainage area and the environmental quality of urban rivers, and then cause the discharge gross of COD meeting the control indicator which will take some effect to the treatment of Haihe River.

13 2. Socioeconomic Background of the Affected Areas

2.1 Background of the City Affected by the Project

2.1.1 Features of the city

29 Wuzhi county locates in the northwest of Henan province, north bank of Huanghe River, west nearby Wenxian county, north nearby Jiaozuo city and Xiuwu, east to Huojia county and Yuanyang, south to the Huanghe River. Wuzhi county locates in the northwest of Henan province, north bank of Huanghe river, west nearby the Wenxian county, north nearby the Jiaozuo city and Xiuwu, east to the Huojia county and Yuanyang, south to the Huanghe river. The county territory is 50 kilometers in length from east to west, 25 km in length from south to north, with total area 832 km2. The county seat is 62 kilometers southeast to Zhengzhou City, 53 kilometers northeast to Xinxiang City, west nearby the Haihe, 29 km northwest to Jiaozuo City, and 128 kilometers southwest to Luoyang City.

2.2.2 Urban Layout

30 Wuzhi County exercises jurisdiction over seven towns in organizational system, eight towns, and 366 administrative villages with total acreage up to 832 km2 .

2.2.3 Population

31 By the end of 2000, the total population has been up to 634 thousand. The service object of this project is Wuzhi county seat urban area which locates in the middle part and the north of the county. It is the centre of the county in politics, economy and culture, and has become an industrialized-trade area with paper making, chemical industry, electronics and industry as its major industries. By the end of 2000, the population of the area has been up to 92 thousand, and it’s planned by the ““Master plan of Wuzhi County” that by 2005 it will reach 120 thousand.

Table 2.1: Population Structure of Wuzhi

Unit: person Total Total Nonagricultural Agricultural Districts/county Male Female household population population population Total population 39522 97020 46245 50829 49791 47229

Mucheng Town 8441 17840 14860 3034 8319 9521

Heping Town 7197 13458 9115 4343 7314 6144

Xinghua Town 11046 18661 17524 1137 10246 8415

Longyuan Town 12838 47061 4746 42315 23912 13149

2.2 Basic Situations of Affected Areas

32 Two organizational system towns, Xieqiying Town and Mucheng Town, will be involved in the construction of Wuzhi County Wastewater Treatment Plant Project. What is shown below are the brief introduction of the socioeconomic situation of the two towns.

14 2.2.1 Xieqiying Town

33 Located to the northeast of the Wuzhi County, Xieqiying Town is east nearby Huojia County, and it exercises jurisdiction over 30 villages, total 15394 households with its population of 62,906. The direct income of the families comes from the agricultural production, cottage industry, personal business and transport. The crop is mainly wheat, corn, millet and so on, while the economic crop is mainly peanut and cotton, the handicraft industry is headed by the family found industry. In 2003 GDP of the town, the primary sector accounted for 74% followed by 16% for the secondary sector and 10% for the tertiary sector. This proportion indicates that this is a typical town where agriculture is the basic sector. Besides, its farmer average net income of 2003 has stepped into the top level of the Wuzhi County.

2.2.2 Mucheng Town

Mucheng Town is the centre of Wuzhi County in economy, trade and culture. There’re many kinds of economic and cultural concourse such as Xinghua Hotel, Xinghua Great Ginshop, Fukeduo Supermarket, Jiajiafu Supermarket, department stores and so on. In 2003 GDP of the town was CNY 0.9 billion, among which the primary sector accounted for 6% followed by 22% for the secondary sector and 72% for the tertiary sector. The tertiary sector is developing rapidly recently for the promotion by some realty projects like Fuxiang Garden Residence, Hengxing Uptown and Xinghua Residence and so on.

2.2.3 Socioeconomic Situations of Project Area

34 There’re 14 households properly affected by the project, including 2 farmers at the richest level, 7 farmers at the middle rich level, only 2 poor families, one is that with 2 elders and the other one is widow farmer(one woman with 2 children) needs special consideration.

Table 2.2: Social Population Situations Unit: person Items Mucheng Town No. of Household 8,441 No. of Population 17,840 Nonagriculture 14,806 Population Agriculture Population 3,034

2.3 Socioeconomic Survey for Resettlement

35 To further comprehend the socioeconomic situation of the affected area, especially the basic information of the APs, a series of surveys on the affected villages were carried out by Wuzhi County Construction Committee, the local town government and the project construction agency — Wuzhi Wastewater Treatment Plant and from 25th October to 8th November 2004.

15 2.3.1 Impacts of Permanent Land Acquisition and Resettlement

36 Permanent land acquisition concerning Wuzhi Waste Water Treatment Plant project involves Qianniu administrative village which is subordinated to Xieqiying Town. The socioeconomic situations of these regions are shown in Table 2.3.

Table 2.3: Socioeconomic Situations of the Village Affected by the Project

Items Qianniu Village I. Total population 3,950 II. Total household 98 III. Labor 2,370 1. Agriculture 1,420 2、 Construction 474 3、 Communication and transportation 593 4、 Others 117 IV. Arable land area (mu) 4,147 1. Arable land area per capita ( mu/capita) 1.1 2. Land acquisition area planned(mu) 55 3. Arable land area after land acquisition per capita(mu/capita) 1.03

2.3.2 Regions Affected by Temporary Land Use

37 Temporary land use concerns mainly construction of wastewater pipeline network collection system. This project will cover 2 offices in Mucheng Town and the temporary land use type is mainly road and dry land, 144 mu in total.

2.3.3 Socioeconomic Conditions of the Displaced Households Affected by the Project

38 The land acquisition and resettlement of the Project will cover 14 peasant households with land access only in Qianniu village, totaling 60 persons, and specific conditions are presented in Table2.4.

Table 2.4: Socioeconomic Profile of the Villages Affected by Permanent Land Acquisition

Land per Land Per Capita Families Population Capita Villagers’ House- After Land Village of Population of Before Land Team holds Acquisition Agriculture Agriculture Acquisition (mu/capta) (mu/capita) Qianniu 1 14 14 60 60 1.48 0.57

2.4 Sampling Survey on the APs

39 To acquire the basic information on the income and expenditure of the APs, an entirely survey, which covers 14 households with 60 persons of the affected people was conducted by Wuzhi Wastewater Treatment Plant. The integrated analysis is shown as follows.

2.4.1 Statistic characteristics of APs

40 Among the 60 respondents, 60 are agricultural population accounting for 100% of the total population; 32 are female, accounting for 53% ; 37 are labor, accounting for 62%, 13 are students, accounting for 21%, 2 are elder and 2 are disabled accounting for 3% of the total.

2.4.2 Age range situation of the Population

41 Among the 14 families (60 persons) surveyed, 2 persons are below 8 years accounted for 2%, 20 persons are between 8 years to 18 years accounted for 33%, 36 persons are between 19 years to 60 years accounted for 53%, 2 persons are older than 61 years accounted for 3% of the population.

2.4.3 Educational Background of the APs

42 Among the 14 families (60 persons) surveyed, 5 persons are educated up to a primary school, accounting for 8%, 17persons are educated up to junior high school, accounting for 28%, 17 persons are educated up to senior high school, accounting for 28% of the total population; 21 has never been to school, accounting for 36% . The details are shown in Table 2.5.

Table 2-5: Education Background of the APs in Survey

Education Grade No. of APs (person) Percentage of cases (%) No schooling 21 36 Primary school 5 8 Junior high school 17 28 Senior high school 17 28 College and above 0 0 Total 60 100

2.4.4 Average annual family income and expenditure per household

43 As shown in the statistics on 14 households surveyed, their average annual income is CNY 7,393 of which agricultural income is CNY2,778 (38%), cottage industry income is CNY2,007 (27%), foundry industry income is CNY 1,857 (25%) and transportation and other income is CNY750 (10%).

44 The total annual average expenditure per household amounts to CNY3,286, of which CNY1,429 (44%) is paid for production, and CNY1,857 (56%) is for daily consumption. The income and expenditure structure is shown in Table 2.6.

Table 2-6: Annual Income and Expenditure Structure of the Families Interviewed

Item Per household Per Capita Percentage income Income (%) (Yuan) (Yuan) Agricultural income 2,778 648 38 Cottage industry income 2,007 468 27 Annual family Foundry industry 1,857 433 25 income Transportation and others 750 175 10 Total 7,393 1,726 100 Purchase for productive 1,143 267 35 fixed assets Taxes and other expenses 286 67 9 Annual family Daily life 857 200 26 expenditure Family operating 786 183 24 expenditure Properties 71 17 2 Transfer expenditure 143 33 4 Total 3,286 767 100

Annual average net savings 4,107 959

45 Generally, since it is close to the urban area, and more than 20 households live on foundry and cottage industry of family workshop, the village shares considerable nonagricultural income.

2.4.5 Minority Families and Vulnerable Groups

46 As for the survey on 14 households, all are of Han nationality without minor nationality families. Among the 14 affected families, there is one poor family with elders (2 persons) and one widow family (3 members) and for the latter the children are in schooling.

2.4.6 Willingness to Accept Retraining

47 Among the 14 affected households, 15 laborers would like to get retraining.

2.4.7 Information about the Project and Land Acquisition

48 From March to October 2004, the project office of construction committee had taken many methods to propagandize the affected persons and districts to learn the information concerning this project and other land acquisition-related information, involved in the forms of villager meeting, broadcast, delivering the pamphlet and TV advertisement.

3. Project Impacts

3.1 Types of loss Caused by Land Acquisition

49 According to the FSR and field survey for the project, the types of losses caused by land acquisition and resettlement are shown as follows:

• Permanent arable land acquisition; • Temporary land use; • Infrastructure and facilities demolition and; • Loss of other productive assets such as trees and standing crops

3.2 Measures to Avoid or Reduce Land Acquisition to the Uttermost

3.2.1 Measures to reduce land acquisition during project design

50 In terms of land acquisition, resettlement and /or damage incurred, the following measures have already been applied in the project designing to reduce losses arising from project construction.

51 During project planning, comparative selection of schemes should be carried out and then possible consideration shall be taken in respect to influences to the local construction project and key factors to optimized scheme shall be brought out:

z to the utmost reducing farmland acquisition z the selected WWTP location is as near as possible to the water body polluted by Sodium z optimizing construction and organization design, shortening construction phase and reasonably arranging construction time

52 The Qianniu Village is selected as the proposed wastewater treatment plant site avoiding the demolition. The part of pipeline network lying along roads has been made; pipe jacking will be selected for road crossing to minimize demolition and the impact on traffic.

3.2.2 Measures in Construction Stage to Enhance Land Acquisition and Resettlement Implementation

ⅰ) Enhancing public participation mechanism

53 Before the commencement of project construction, such information related to project starting time and project construction schedule will be made to public in form of bulletin and measures of land acquisition and resettlement will be announced for purpose of accepting the residences’ supervision; during construction, preferential consideration will be given to utilize the local materials, transportation and labor force, such that the affected people could benefit from the project construction.

ⅱ) Strengthening construction and management, reasonably arranging the construction site, minimizing influences on crops and plants, strictly controlling noises, dusts and influences on surrounding environment.

19 ⅲ) Accelerating implementation progress, reducing construction influences, adopting advanced methods especially by using the mechanized construction in sewage network to shorten the construction time and to minimize the adverse impacts.

3.3 Project Impacts

3.3.1 Survey Methods

54 The survey on the physical index for the project impacts mainly involves governmental statistics, questionnaire, site survey and group discussion, fully related to such physical index as land, house and auxiliaries which might be lost during project construction. The data mainly spring from the following aspects:

z Asset loss statistics concerning project affected items by Wuzhi County Government; z Visit and investigate concerning project impacts by the project owners, Wuzhi Wastewater Treatment Group, by which relevant data have been collected from the Statistic Bureau, Planning Bureau and other departments concerned Local officials, the village leaders and the farmers whose farmland may be acquired were also visited to find out their opinion on the land acquisition, resettlement and the compensation for land acquisition (use). All the households potentially to be affected have been visited by the investigators due to the small scope of land acquisition and demolition impact.

3.3.2 Summary of Project Impacts

ⅰ） Permanent land acquisition

55 The wastewater treatment plant for this project needs permanent land acquisition, involving Qianniu Village of Xieqiying Town, with total collective land 55mu that is constituted by arable land, which will directly affect 14 households with total 60 persons. Detailed conditions are shown in Table 3.1.

Table 3.1: The Categories and Quantities of the Land Permanently

Farmland to be permanently Affected Affected acquired No. Items Village household person (mu) Irrigated land Dry land Total 1 Plant Qianniu 0 50 50 Access road to the 14 60 2 Qianniu 0 5 5 plant Total 14 60 0 55 55 ii） Temporary land use

56 Temporary land use of this project mainly refers to the land temporarily acquired by the construction of pipeline networks, and it demands 144 mu in total 99mu of dry land and 45mu of road land included. The recovery cost for the land is managed by the EA and is to be calculated into project cost.

20 iii） Ground attachment

57 The survey on the trees, tombs and other properties within the land expropriated and used indicates that a total number of 100 grown trees will be affected by the project. iv) Infrastructure and facilities.

58 Facilities affected by this project are mainly electric lines, electric poles and pumping well, including 3 electric poles, 1 pumped well, 150 meters electric lines, which will be protected and relocated during the construction project.

59 Infrastructural facilities affected by this project are 10km of roads damaged in network construction, comprising 28mu of rural unpaved road and 17mu of paved road.

Table 3-2 Types and Quantities of Infrastructure and Facilities Facilities Infrastructures Electric Unpaved No. Item Electric Pumped line road Paved road (mu) pole(pole) well(well) (mu) (mu) Waste water treatment 1 3 1 150 0 0 plant(including access road) 2 Pipeline network 0 0 0 28 17 Total 3 1 150 28 17

3.3.3 Historical Relics and Vulnerable Groups

60 The project has no impact on historical relics.

61 Within the two villages affected by land acquisition, there is no minority population. Taking the poverty baseline of annual income of 865yuan per capita defined by the government, 2 of the 14 households directly affected by land acquisition is underprivileged. One is poor with 2 elders and the other one is that with 1 widow and 1 children. These poor families are so because of many children and elders resulting in insufficient labor force and no other income sources except agricultural income.

3.3.4 Public Concerns

62 Survey on project demand and feedback of the affected people has been made, satisfying the affected people’s demands. Problems concerned are environmental protection, employment and enterprising opportunities. What they concern are i) Fair compensation; ii) Regulating adequate land; iii) assistance to livelihood; iv) Timely and adequate compensation.

3.4 Project Impact Analysis

63 Those who lost their land due to project construction are richer comparatively, at the consequence of their income and laboring in non-agricultural activities. Viewing from the comparative influence of land acquisition, at least 2/3 of the families are engaged in non-agricultural activities with average annual income up to CNY2000.

64 In the village economy, its significance means that a few families would lose their majority income if they lost partly land. Consequently, it should lay emphasis on the enough compensation and income restoration.

65 The local officials, especially the leaders of the township government and the village are confident in carrying out the compensation strategy including expanding non-agricultural business and enterprise.

66 Compensation and income restoration plan should contain higher flexibility. As it’s mentioned in the rules, the key measures are ensuring the decisions of whether to readjust land, how to allocate the compensation and the best restoration measures, are made by the affected families and the villager teams.

22 Table 3.3 Analysis of Permanent Land Acquisition Impact

Project Village, Gross Gross Farmland Average Area of Average Average Land Income Group, Household Population Area Farmland Acquired Farmland per Farmland per loss Loss Household Per Land (mu) Capita Before Capita After (%) (%) Household Land Land (mu) Acquisition Acquisition (mu) (mu) Wuzhi Qianniu 658 3,950 4.147 6.3 1.05 1.03 1.2 0.3 WWTP village 55 Group 9 73 456 470 6.43 1.03 0.91 11.65 1.7 Affected 14 60 89.3 6.37 1.48 0.57 61.49 9.0 farmers

23 4. Legal and Policy Framework

67 Legal and law framework for this project has two sets of sources: PRC’s laws and regulations and policy requirements of ADB. This chapter is aimed to describe demolition and resettlement policies and strategy concerning land acquisition and compensation.

4.1 Legal framework - State/ Local Law and Regulations

4.1.1 Legal framework

68 Compensation to the affected people and land and resettlement adheres to the Land Administrative Law initiated in 1999, involving land access and ownership, land use and protection and compensation, resettlement subsidy and proper resettlement measures to the affected people. According to the Land Administrative Law (Article 8), rural land belongs to the state land, rural and suburb land is owned collectively by village (residential land, arable land and mountain regions). Such collective and its members (majority of two thirds) have the right to determine whether reallocate or rearrange the arable land (Article 31). Furthermore (Article 47) it elaborates when land acquisition is necessary, compensation shall be made as per the original land purpose containing land compensation, resettlement subsidy, compensation for land attachment and standing crops.

69 Arable land compensation shall be multiple of average annual output of 3 years preceding such acquisition (based on local standard as prescribed by law). alike, the resettlement subsidy for each agricultural population to be settled shall be calculated based on multiple of the average annual output of 3 years preceding the land acquisition. Compensation for standing crops shall be calculated as per one season output. Compensation method and standard for the attachments will be carried out pursuant to prescription of Provincial People’s Government. Augmenting attachments will not be compensated at the date of announcement release for land acquisition. Article 48 and 49 demand consultation to the compensation standard and the compensation be appropriated to collective owned. All the compensations will be paid to the land owners including agency or collective organization.

70 Arable land occupancy tax will be calculated according to actual land area tax payers occupied which will be collected at once based on the specified amounts.

71 As regards to the specific implementation principle, compensation eligibility, deadline, procedures of information publicity, resettlement plans and monitoring have been specified. During urban building demolition, specialized state policy and local regulations will be in charge of the management, demolition, compensation and resettlement. The laws and regulations used for the project are shown as follows:

z Land Administrative Law of PRC z State Council Notice of the Decision to Deepen the Reform for Restrict Land Administration. z Land Acquisition Announcement of Land Resources Ministry z Urban House Demolition Management Regulations, China z Provisional regulations for Arable Land Occupancy of PRC z Basic Farmland Protection regulations, Henan Province z Land Administrative Regulations, Henan Province z “Master plan of Wuzhi County” z “Administration Rules For the master plan of Wuzhi” z Jiaozuo Municipal Government’s Notice of the AAOV of the Land Expropriated for National Construction

24 z ADB’s “Involuntary Resettlement Policy” z Relevant project reports

4.1.2 Relevant Legal Extracts

1） Relevant regulations of Land Administrative Law of PRC:

72 Article 10 land collectively owned by peasants will be organized legally by the collective economic committee; peasant collective-owned land respectively owned by more than two villages will be managed by the rural collective institutes of village or farmer teams; collective land subordinated to village (town) farmers will be managed and administrated by village (town) collective economic forms.

73 Article 14 Land owned by farmer collectives shall be operated under a contract by members of the economic organizations of the farmer collectives for crop cultivation, forestry, animal husbandry or fishery. Within the duration of the contract for operation of land, any appropriate readjustment of the land between individual contractors shall be made with the agreement of at least two-thirds of the members of the villagers assembly or of the representatives of villagers and submitted to the township (town) people's government and the agriculture administration department of the people's government of the county for approval.

74 Article 24 National protective arable land is forbidden to be changed into non-arable land. Land occupancy compensation policy is implemented by nation. In case land is approved for non-agricultural construction, the principle of “ cultivating according to occupation” must be observed; non-observance cultivation or cultivated land not conforming to the requirements, land cultivation fees shall be paid as per the regulations as specified by province, autonomous or municipal level.

75 Article 31 Land damage caused by digging, sinking and occupying shall be restored in charged by relevant regulations of the nation; non-restoration or non-observance shall be subjected to land recovery expenses.

76 Article 42 Land acquired shall be compensated for on the basis of its original purpose of use.

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

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

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

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

81 If land compensation and resettlement subsidies paid in accordance with the provisions of the second paragraph of this Article are still insufficient to help the farmers needing resettlement to maintain their original living standards, the resettlement subsidies may be increased upon approval by people's governments of provinces, autonomous regions and municipalities directly under the Central Government. However, the total land compensation and resettlement subsidies shall not exceed 30 times the AAOV of the acquired land for the three years preceding such acquisition.

82 Article 47. After deciding on the policy of land acquisition compensation, announcement shall be issued by relevant local government and opinions of the collective farmers and local organizations shall be listened.

83 Article 48 The rural collective economic organization, the land of which is acquired, shall accept supervision by making known to its members the income and expenses of the compensation received for land acquisition.

84 The compensation and other charges paid to the unit for its land acquired is forbidden to be embezzled or misappropriated.

85 Article 49 Local people's governments at all levels shall support the rural collective economic organizations, the land of which is acquired, and the farmers in their efforts to engage in development or business operation or to start enterprises.

86 Article 50 Nation-owned land used by the construction unit shall be obtained by such compensable attitude as selling; however, the following types of construction land as approved by the people’s government above county level can be obtained by appropriation”:

(i) National governmental organization land use (ii) Urban infrastructure land and public welfare land (iii) Infrastructure construction land primarily supported by the nation related to energy, transportation and water conservancy works, and (iv) Land of other purposes as specified by law or administrative regulations

87 Article 54 Where land owned by the State or by farmer collectives needs to be used temporarily for construction of projects or for geologic prospecting, the matter should be subject to approval by the land administration departments of people's governments at or above the county level. However, if the land to be temporarily used is located in the area covered by urban planning, the matter shall be subject to agreement by the urban planning administration department concerned before it is submitted for approval. The land user shall, depending on who owns the land and who has the land-use right, enter into a contract for the temporary use of the land with the land administration department concerned, or the rural collective economic organization, or the villagers committee and pay compensation for it in accordance with the provisions of the contract.

26 88 Article 57 In case that the following conditions are met, and subject to approval of the people’s government or government with approval right, national land use right may be retrieved: (I) land use for public interest; (II)when land needs to be regulated arising from old city reconstruction for implementation of urban planning.

89 Article 58 Rural peasants can only own one residence for each household, with the area not exceeding the standard for province, autonomous region and municipalities. Rural residences shall meet the overall planning of town land utilization and maintain the original residing base and village spare area. Rural residing land shall be inspected by town people’s government and approved by country-level government; in which, where farmer-used land is occupied; procedures shall be addressed according to Article XXXXIV of this law.

2） Relevant Stipulates of Provisional Regulations of Farmland Land Occupancy Tax in PRC, 1987

90 Article 2 The farmland referred in the regulations means the land for planting. And that for planting 3 years preceding the acquisition is regarded as the farmland as well.

91 Article 3 Both unit and individual who need to occupy farmland for building construction or other nonagricultural construction should be responsible to pay farmland occupancy tax (thereafter called taxpayer). They should pay farmland occupancy tax in accordance with the regulation.

92 Article 4 Farmland occupancy tax should be calculated based on the actual area of farmland occupation. The amount of tax should be collected payment once.

93 Article 5 The tax amount of farmland occupancy should be stipulated as follows:

(i) Take a county as a unit (same thereafter), for the area that the average farmland area is less than one mu per capita (included), the tax should be CNY2 to CNY10 per square meter; (ii) For the area that the average farmland ranges from one (1included) to two (2 included) mu per capita, the tax should be CNY1.6 to CNY8 per square meter; (iii) For the area that the average farmland ranges from 2 to 3 mu per capita, the tax should be CNY1.3 to CNY6.5 per square meter; and (iv) For the area that the average farmland is more than 3 mu per capita, the tax should be CNY1 to CNY5 per square meter

94 Article 9 The farmland occupancy tax should be collected by finance department. The land administrative bureau should inform all finance departments timely after approval of land occupation for unit and individual. The unit and individual should declare and pay tax to finance department with the document approved by land administration bureau above county level. The land administrative bureau will transfer the land to unit and individual based on the receipt of tax payment or approval document for land acquisition.

3） Relevant Regulations on the State Council Decision to Deepen Reform and Restrict Land Administration

95 Implications of new regulations for land use and land compensation “Document (28) 2004” - a State Council Circular on the “Decision to Deepen Reform and Strictly Enforce Land Administration” was issued on 21st October 2004 and contains several very important provisions in respect of LAR activity. The document points out that “the relationship between ensuring socio-economic development and protecting land resources must be correctly 27 addressed” with the stated objectives “to bring the growth of land for construction use under strict control, take efforts to activate land reserves, strengthen (the awareness of) land saving, deepen reform, improve the legal system, take overall arrangements into consideration and further improve the strictest land system that is in tally with the national conditions of the country”.

96 The document urges local governments to take action to, inter alia:

▪ Strengthen land use planning and utilize approved land use plans as the basis for approving proposed construction projects.

▪ Involve local land use departments in the approval process for construction projects ▪ Publicize minimum values for sale and transfer land to avoid land acquisition taking place at below market rates ▪ Strengthen the application of “no detriment” for affected persons ▪ Ensure compensation payments are targeted to those most affected by LAR activity ▪ Strengthen audit and monitoring arrangements

97 The issue of document 28 was followed up by:

(i) The issue (on 1st November 2004) of Decree 27 by the Ministry of Land Resources. Decree 27 contains administrative procedures for use by local Land Use departments in reviewing proposed construction projects. These procedures attempt to strengthen land use planning and control.

(ii) Ministry of Land Resources “Guidelines on Improving the System of Land Acquisition Compensation and Resettlement” which was issued on 3rd November 2004, makes specific reference to Document 28 and gives specific guidance on its implementation.

4） Guidelines for the Implementation of the Land Administrative Law of PRC in Henan Province

98 Article 25 Where non-agricultural construction project is approved for land occupancy, cultivation plans shall be made by land users, forwarding to land administrative department for approval responsible for cultivation the land quantity and quality as appropriate. Where there’s not proper condition for land cultivation, corresponding cultivation fees shall be paid and the cultivation fees collection, utilization and management method shall be otherwise specified by provincial people’s government. Where land is supplied in unified manner within urban construction land occupancy under overall land planning, arable cultivation shall be shouldered by land use unit; where arable land is occupied by village and towns, land cultivation shall be taken charge by rural collective organizations or village committee.

99 Article 24 For acquiring farmer’s collective land, compensation should be made as follows:

(1) Land compensation: compensation for acquired cultivated land in the outskirt of primary city shall be eight (8) to ten (10) times the AAOV of the acquired land for three years preceding such acquisition; in the outskirt of secondary city and mining area seven (7) to nine (9) times the AAOV; in other areas six (6) to eight (8) times the AAOV. Of the farmland acquisition, various sideline products (excluding vegetable) shall be counted as 15% to 20% of the annual production based on major products.(AAOV: arable land averaged output value)

28 (2) Resettlement subsidies: for acquisition of cultivated land, compensation shall be paid based on each 667 m2: For the average farmland per capita is over 667 m2, compensation shall be four (4) to five (5) times the AAOV of the acquired cultivated land for three years preceding such acquisition; for the average farmland per capita is over 334 m2 and under 667 m2, compensation shall be six (6) to nine (9) times the AAOV of last three years; for the average farmland per capita is less than 334 m2, compensation shall be ten (10) to twelve (12) times the AAOV of last three years. Under special circumstance, compensation shall not be over 15 times the AAOV of the acquired cultivated land for last three years preceding such acquisition of 667 m2.

(3) Standing crops: one times the AAOV.

(4) Compensation standards for attachments shall be executed according to the regulation of Provincial People’s Government. No compensation shall be paid to the newly added attachments from the date of public notification.

100 Article 35 in case the land occupied belong to rural collective owners or village committee, land compensation shall be paid to rural collective owners or village committee; where it belongs to villagers team; compensation shall be paid to the team and where it belongs to town collective organizers, it shall be paid to the organizers. Compensation for land attachment and green crops subsidy shall be performed as per Article 26 of Promulgation Rules for Land Administrative Law.

101 Article 38 The annual production value for land compensation and resettlement subsidies shall be based on the average annual production and current average nation-regulated product price of last three years. If no nation-regulated price, the local market price shall be used.

102 Article 39 Within the area of land acquisition, if there is water source, culvert, culvert gate, pipeline, road, electric cable and production and living related facilities, the local People’s Government shall organize relevant departments as well as the land use unit and construction unit to resettle properly, without obstruction and damage on purpose; if obstruction and damage can not be avoided, the items shall be rehabilitated or constructed relevant facilities according to regulations.

103 Article 40 Temporary land use shall be implemented according to Article 57 of Land Administrative Law. Expiration of temporary land shall subject it to original status and land returned.

5) Relevant regulations of Announcement of Jiaozuo People’s Government on adjustingcompensation standard of Land acquisition For National Construction.

(1) Compensation standard of AAOV for Grain Land

Table 4.1: Compensation Standard of AAOV Ground Standard Characteristics Rank AAOV（yuan/mu） Eminent soil quality, entirely irrigation and Grade 1 1,300 drainage, smooth and regular plot, fertile ground Eminent soil quality, better condition on irrigation Grade 2 and drainage, smooth and regular plot, fertile 1,105 ground Ecumenical soil quality, possess of irrigation and Grade 3 940 drainage, smooth plot, ecumenical fertilizer Bad soil quality, without irrigation and drainage, Grade 4 800 fluctuant plot, scarce fertilizer

(2) Standing crops in land acquisition are compensated by one times the AAOV, and followed by the confirmed schedule of expropriation. The standard constitutes of 60% of AAOV in summertime and 40% of AAOV in autumn time. In addition, the autumn time is from 10th June to 30th September each year when the rest is summertime.

(3) Compensation standard for economic standing crops shall be executed according to the one of temporary land use.

(4) During the stage from expropriation starting to approved, it won’t according to the span season compensation standard when consulting to expropriation and calculating the attachments instead of start working and temporary land use. But it shall be compensated when carrying out the expropriation and the standing crops demolition for the reason of measuring, fixing stake and reconnaissance, especially keep a principle combined by the reality and the circumstances. In terms to avoid unnecessary loss by the miss farming, the land administration should concerns the starting and construct cycle of the expropriation and gives a notice to farmer when the cycle is long and span the season.

4.2 ADB Policy on Involuntary resettlement

4.2.1 Overall Objective of ADB Involuntary Resettlement Policy

104 ADB has established its policy on involuntary resettlement in 1995 with the overall objectives as follows:

(i) Involuntary resettlement should be avoided where feasible.

(ii) When population displacement is unavoidable, it should be minimized by exploring all viable project options.

(iii) If individuals or a community must lose their land, means of livelihood, social support systems, or way of life in order that a project might proceed, they should be compensated and assisted so that their economic and social future will generally be at least as favorable with the project as without it. Appropriate land, housing, infrastructure, and other compensation, comparable to the without project situation, should be provided to the adversely affected population,

30 including indigenous groups, ethnic minorities, and pastoralists who may have usufruct or customary rights to the land or other resources taken for the project.

(iv) Any involuntary resettlement should, as far as possible, be conceived and executed as a part of a development project or program and resettlement plans should be prepared with appropriate time-bound actions and budgets. Resettlers should be provided sufficient resources and opportunities to re-establish their homes and livelihoods as soon as possible.

(v) The affected people should be fully informed and closely consulted on resettlement and compensation options. Where adversely affected people are particularly vulnerable, resettlement and compensation decisions should be preceded by a social preparation phase to build up the capacity of the vulnerable people to deal with the issues.

(vi) Appropriate patterns of social organization should be promoted, and existing social and cultural institutions of resettlers and their hosts should be supported and used to the greatest extent possible. Resettlers should be integrated economically and socially into host communities so that adverse impacts on host communities are minimized. One of the effective ways of achieving this integration may be by extending development benefits to host communities.

(vii) The absence of formal legal title to land by some affected groups should not be a bar to compensation. Affected persons entitled to compensation and rehabilitation should be identified and recorded as early as possible, preferably at the project identification stage, in order to prevent an influx of illegal encroachers, squatters, and other non-residents who wish to take advantage of such benefits. Particular attention should be paid to the needs of the poorest households and other vulnerable groups, such as indigenous peoples, and appropriate assistance provided to help them improve their status.

(viii) The full costs of resettlement and compensation, including the costs of social preparation and livelihood program as well as the incremental benefits over the “without project” situation, should be included in the presentation of project costs and benefits.

4.2.2 Resettlement Plan Preparation

105 According to the Bank policy, the contents and level of detail of a resettlement plan, which may vary with circumstances, especially the magnitude of resettlement, should normally include a statement of objectives, policies and strategy, and should cover the following essential elements:

i) Corresponding measures shall be taken for resettlement within the policy frame making sure that the affected people have their optional right and other rights concerning the resettlement; familiar with the feasible schemes technologically and economically, participating in negotiation and enjoying opportunity of selection; obtaining compensation rapidly and duly based on the resettlement costs to counteracting the direct financial loss caused by project.

ii) In case resettlement is involved, corresponding measures shall be taken in line with resettlement planning or resettlement schedule, guaranteeing the affected people could get subsidy (such as resettlement subsidy); obtaining

31 house or housing base, or farming site according to their requests. The production potential, positioning advantages and other comprehensive factors shall at least correspond with the advantageous conditions of the original site. And

iii) To achieve the objectives of this policy, necessary measures shall be taken regarding the policy frame for resettlement plans resettlement to ensure during the transitional period as expected reasonably the affected people could get proper assistance and subsidy in accordance with the livelihood and living standard restoration.

4.3 Resettlement Objectives and Planning Principles

4.3.1 Resettlement target

106 Compensation and resettlement policy to the affected people are formed based on China State laws and regulations as well as requirements from Asian Development Bank. The purpose of the resettlement and rehabilitation plan is to ensure that the affected people will regain or surpass their living standards after the resettlement. Priority shall be given to poverty-stricken people and vulnerable groups.

4.3.2 Resettlement plan principles

107 Requirements both from China State laws and Asian Development Bank are reflected in the Resettlement principles provided in Table 4.2 are principles involving compensation, dismantling and income rehabilitation; which are adequately flexible: allowing differences between villages, and urban communities; the differences are embodied on the one hand between land redistribution and cash payment; and on the other hand, the income rehabilitation of individual income based on community. The key lies in guaranteeing all affected people could get assistance and compensation for income rehabilitation after resettlement.

Table 4-2: Resettlement Principles

Principles

Compensation and entitlement provided to the affected people should maintain their 1 living standard at least no worse than ever “without project”, or better.

All the affected people, legally entitled or non-entitled, should be compensated and 2 assisted for resettlement.

Compensation by cash should ensure the standard of living of the affected people can 3 be maintained at least no worse than ever after resettlement.

In case livelihood fails to be maintained after land acquisition, cash compensation or 4 kind compensation for land loss should be made thereto. Other income generation activities should all be carried out. The affected people should have full understanding of such items as eligibility, compensation modes and rate, livelihood and income rehabilitation as well as the 5 project implementation schedule, and participate in the implementation of the resettlement plan. Land acquisition should not be carried out until the affected people are satisfied with 6 compensation and resettlement and their schemes.

Compensation and resettlement would be monitored by the executive agency or the 7 third party.

Special assistance or treatment should be given to the vulnerable groups to ensure they 8 have a better life.

9 The affected people should have opportunities to get profits from the project. Demolition and resettlement plans should be identical with the overall plan for Wuzhi 10 County.

4.4 Compensation Rate

4.4.1 Compensation Principle

z Compensation rate should be determined according to replacement principle z Compensations shall be paid before acquisition of land and property z Construction management shall be consolidated to shorten the down time for enterprises and shops affected z Land compensation rate and resettlement subsidy for land acquisition shall be executed in compliance with Henan Land Administrative Regulations. z The attachments involving standing crops and trees shall be compensated to the contractors or proprietors in line with the policy regulations.

4.4.2 Compensation Rates for Land Acquisition and Resettlement i) Compensation Rate for Permanent Land Acquisition 33

108 According to the survey and measurement, the average productivity of the affected farmland in last three years was evaluated as1300 yuan per mu.

See Table 4.3, and Table 4.4. Table 4.3: Compensation Rates Calculation for Permanent Land Acquisition

AAOV in last 3 Compensation Multiplier Standard of compensation (yuan/mu) Item years Land Resettlement Standing Land Resettlement Standing (CNY/mu/year) Total Compensation Subsidy crops Compensation Subsidy crops farmland 1,300 9 12 0.5 11,700 15,600 650 27,950

Table 4.4: Compensation Rates for Permanent Land Acquisition

Unit: Yuan/mu Land User Fee For Type of Compensation Land Land Tax on Land Standing Land and Cultivation Occupation Farmland Management Total Crops Acquired Resettlement Fee for new Acquisition Fee Subsidy Construction Farmland 27,300 650 5,850 4,669 4,002 783 43,254 Village Receiver Contractor Land bureau Land bureau nation Land bureau commission

Ii） Compensation Rate for Temporary Land Use

Table 4.5: Compensation Rate for Temporary Land Use

AAOV in Last 3 Compensation Multiplier Compensation Rate(Yuan/mu) Years Standing Land Recovery Standing Land Total (CNY/mu/year) Crops Cost Crops Recovery Cost

Dry land 1300 0.5 0* 650 0* 650

* The road will be recovered by EA after the completion of the construction with the cost taken into the RP; the farmland will be recovered by EA after its construction with the cost calculated into engineering cost but not RP.

34 iii) Compensation rate for ground attachment & facilities

Table 4.6: Compensation Rate for Ground Attachment & Facilities

Unit: Yuan/unit

Electric Items Big trees Electric Wires Pumping Well Poles Unit CNY/tree CNY/each CNY/meter CNY/well

Rate 50 500 8 30,000

iv) Compensation Rate for Infrastructure

109 The affected roads are mainly the branch road, and the compensation rate was determined as CNY10,005/mu for rural earth road and CNY53,360/mu for pitch beton road.

4.4.3 Cut-off Date

110 The qualifying deadline for compensation was decided on October 1st 2004.The newly reclaimed arable land of the APs or the behavior getting back to the affected district after this date will not be taken into the scope of compensation or allowance. Any newly built structures or planted trees after this date purely for getting extra compensation will not be taken into account.

4.4.4 Payment of Compensation

111 The compensation for the land acquisition and other attachment has been directly paid to village committee and the legal owners of the property.

112 Compensation for land acquisition and resettlement paid by the IAs were distributed to the owner or user of the land directly before land acquisition. According to the Land Administrative Law of People’s Republic of China, the compensation for land loss was handed to the former owners and users of the land before the land acquisition, while the resettlement subsidies were put in the aim for relocating the farmers. Therefore, the collective land compensations are handed to the collective economic entity who owns the lands; the resettlement subsidies are handed to village committee for the resettlement of farmers. The problem of land reallocation is decided by the villager group, and the resettlement payment handed to the relevant individual.

4.4.5 Procedures for Compensation Payment

113 The flow chart 4.1 shows the process and supervision of the compensation fund payment. The Compensation for land acquisition, demolition and resettlement should be paid to IA and LARO of every town by the project EAs using a special bank account. County Government will then distribute the compensation to affected village committee and neighborhood offices. Village Committee will disburse compensation fund to the affected contractors. Wuzhi County People’s Government will monitor and audit the use of the fund, assess and evaluate the effect of the fund use and give necessary instruction to scan for fraud.

35 Figure 4.1: Compensation Payment Procedures

Wuzhi Wastewater Treatment Plant

Project Preparation Office of Wuzhi Wastewater Treatment Plant (PPOZWWTP)

Wuzhi Land Resources Bureau(WZLRB)

Affected Committee (Land Land Users Affected Owners Of Other Compensation And (Standing Crops) Property (Ground Resettlement Subsidy) Attachment)

4.4.6 Eligibility and Entitlement for Compensation

114 All the APs have got compensation for loss of their property due to its reconstruction value.

115 According to the compensation rules, entitlement and eligibility, a resettlement entitlement matrix (Table 4.7) was formulated to guide resettlement implementation, which includes loss of various types (such as loss of houses, land, temporary/fixed income resources), covering measures, regulations and standard as provided in this chapter and other chapters. See specifics in Table 4.7.

Table 4-7: Entitlement Matrix Types of Causes for Eligible Quantity of unit Compensation policy Compensation detail Implementation procedure Losses occupation unit or or individual or loss individual

· Obtain CNY27300/mu as ·adequate compensation to Villager representative meeting compensation for land loss collective economic and studies determine the and resettlement subsidy; organizations and farmers relevant issues on fund ·utilize land compensation and the common parts are allocation and allocating and resettlement subsidy to determined by villager methods of compensation fund, restore all APs’income representative meeting timely and adequate compensation allocation to the Current arable ·with agreement of 2/3 farmers who have lost land is productive materials since land Village 1 villages,14 villagers utilize the land expropriated acquisition; the solution program committee, households with compensation and because of to the grievance and feedback land users 60 villagers resettlement subsidy for ·land tenants get WWTP profit-getting production compensation due to the about compensation fund from construction compensation policy villagers and then take it into practice. Permanent ·training for affected persons. land WAG, district government, acquisition ·formulate favor measures for laborers’ own business village committee organize skills engagement training to strengthen laborers’ knowledge and knowledge

·the farmers whose land is expropriated should get Loss of compensation at the rate of productive CNY650/mu·year ·village committee pays materials ·compensate the labor force compensation fund at the end of Land tenant 14 households because of for loss of land acquisition each year land acquisition

37 Types of Causes for Eligible Quantity of unit Compensation policy Compensation detail Implementation procedure Losses occupation unit or or individual or loss individual Temporary Usual farmers 93 households ·obtain CNY650/mu as ·adequate compensation due RO pays the compensation fund land use production with land compensation fund for to relevant policies to tenants due to compensation and business use right standing crops rate and procedure via village is affected committee. since construction of sewage treatment pipeline network Ground Income loss Property 1 village, power ·obtain adequate ·adequately compensate the RO pays the compensation fund attachment because of owners bureau, compensation at owners of ground attachment, to the property owners of ground ground 14farmers reconstruction price. attachment due to compensation attachment CNY50/grown tree, rate and procedure. lost CNY500/electric pole, CNY8/m of electric wire and CNY30000/pumped well. Public facilities demolition RO pays compensation fund to because of ·obtain compensation fund ·adequate compensation to Public Property Property owners property owners of public sewage for damaged structures or structure or facilities owners facilities owners of Public facilities facilities due to compensation treatment facilities. because of their loss rate and procedure pipeline network

The widow family obtained another CNY750/mu for Obtain special assistance for Allocated from the compensation Vulnerable Land children’s schooling cost; Farmland lost 2 poor families the impact on the 2 poor fund given to the village groups contractor The elder family obtained families collective medical service insurance and located in the resthouse

5 Compensation and Rehabilitation Measures

5.1 Resettlement Strategy

5.1.1 Resettlement Objective

116 The general objective of this RP is to ensure that: the affected person (AP) will be compensated for their land loss and will improve their living standards or at least not worsen than the current level. Based on the features of economic development and employment of the affected village, with integrated analysis the resettlement objectives are determined as follows: i) Develop the Second and Tertiary Industry and increase APs’ income; and ii) Actively take economic rehabilitation measures to ensure AP regain or surpass their living standards after the resettlement.

5.1.2 RP Principle

117 Based on the relevant state regulations and rules and the ADB involuntary resettlement policy, this RP should observe the following basic principle:

z Implement resettlement soundly and put relevant compensation into action, so as to boost or at least restore the effected residents’ living standards. z The resettlement should consider the relations of nation, community and individual. z RP should be compiled in accordance with physical index and compensation rates for land land acquisition and demolition. Resettlement projects scale & standards shall be subject to the principle of original scale and standards restoring. Meanwhile, the investment gap should not be left unfilled. z RP should involve comprehensive negotiation with APs z As making the resettlement, we also should take local city’s plan, resource plan, economic development and environment into consideration. We should take effective measures based on real and local conditions, so as to create the opportunity for resettlers’ own development.。

5.2 Rehabilitation Measures for Permanent Land Acquisition

118 Based on the impact evaluation, 1 village has been identified as affected. Rehabilitation measures were taken for those affected entities.

5.2.1 Compensation Fund and Distribution

119 After the village committee got the compensation fund, it kept that for the facilities collective owned, while the compensation for the land acquisition was adequately distributed to the affected farmers without reserve to the village committee or land adjustment.

120 There is no demolition of structures or houses. However the land acquired is 55mu, comprising 1.2% of the whole village land. It will impact 14 families who possessed the usage rights of this expropriated land.

121 The three key strategies considered in resettlement consist of economic rehabilitation measure based at the community level, individual handling of compensation and training measures.

(i) Economic rehabilitation measure based at the community level. 39

122 In case that all affected agricultural production needed improving irrigation measures, Wuzhi County Government utilized the agricultural subsidy allocated from the superior government to dig 2 wells and pave 580m pipeline network for irrigation for this village.

(ii) Individual handling of compensation.

123 The compensation fund encouraged individuals to invest much compensation on the fields beyond agriculture, such as small business, trade, transport. For the moment there are 2 households having their own shops and 1 working in transportation. For the 2 poor families, special assistance was given to them. For the widow family, another CNY700/mu was given to it for the children’s schooling cost; for the other elder family, the 2 elders were arranged to take the medical service insurance and sent to the rest home.

(iii) The training measures

124 County Government and village committee organized new skills training at township or county level, currently 9 persons have got pre-boarding training with the cost of CNY500 per capita and totally it amounted to CNY4,500. And they have been working in the foundry plant in the village, increasing their income by about CNY500. Through series of measures, 9 households worked in commerce and manufacture, 2 worked in the second and tertiary industrials, 1 worked in transportation and 2 households in others.

5.3 Rehabilitation Plan for Temporary Land Use

125 The project needs temporary land use of 144 mu including 90mu of dry land and 45mu of roads. For the dry land, the land user will be compensated with CNY1,750/mu as compensation rate for standing crops. Both the land and roads will be recovered by the EA of the Project after its completion of construction with the cost calculated into project cost.

5.4 Women and Vulnerable Groups Rights Protection

126In the scope of land acquisition, the proportion of male and female is comparably balanced, which is 53%: 47%. We have discovered one household single woman-headed due to bereft of her spouse, losing spouse and being abandoned. In the affected area, the female has the same right as that of male. It includes cultivating, education, family planning, and village election, and etc. Most woman labor interviewed thought they had the same production and business right as that of men, such as doing the part-time job or doing tiny business or doing the farm work. Of course, there is a different division between male and female in the housework and production. The women will tend to choose the housework, farm work, handwork and native & specialty business, while more young people choose to make a living at coastal areas.

127 The construction and land acquisition of the Project will not have obvious influence on the women whose land is expropriated.

128 During the project construction stage, the project owner will organize a group meeting concerning women representatives annually taking a village as unit. Meanwhile, we also conduct regular visit to some families so as to collect women’s suggestions, appeals and to accept their consultation. The village will report to the owner the grievance concerning the women resettlement compensation and rehabilitation. The owner shall deliver the representatives to answer or settle the question within a week.

40 129 As for a special subsidy for poor and vulnerable households, interviews were conducted in line with Table 7.2. It was noted that there are two poverty households among the 14 directly affected households (see Appendix 4).

130 Special assistance was provided for the poverty families in addition to their sharing the same compensation as other households for loss of land. The widow family received an additional CNY750/year for the children’s schooling cost. The two children, one 8 and the other 12 years old, shall each receive an education grant of CNY 750 each year until they become 18 years old. Altogether CNY12,000 shall be paid under this grant (see detail also in Table 9.1). For the two elderly persons of the other poor household, arrangements were made for them to receive a medical service insurance and to be cared for at a rest home, to the satisfaction of the family concerned.

6 Institutional and Organizational Structure

6.1 Institutional Framework

131 In order to ensure the successful operation of the resettlement, the organizations responsible for planning, controlling, execution and supervision of the RP are listed as follows:

z Wuzhi Wastewater Treatment subproject Leading Team(WWSTLT) and Office(PMO) z Wuzhi Zhongyuan WWTP Company z Wuzhi Resettlement Office(WZRO) z Village Committee Resettlement Leading Team(VCRLT) z Relevant Government Functions z Project Design Institute(DI) z External Independent M&E Agency(MEA)

6.2 Institutional Framework and Responsibilities

(i) WWTPLT

132 It is comprised of Wuzhi Prefectural Government, Wuzhi Project Management Office, Wuzhi Construction Commitment, Wuzhi State Land Bureau, Wuzhi Environment Bureau and Wuzhi Water Affair Group, and etc. This team is responsible for enhancing leadership of the project, formulating resettlement policy and coordinating the organizations. Also, the leading team has the sub-office which is to treat routines, subordinated to Wuzhi Water Affair Group.

(ii) Wuzhi Zhongyuan WWTP Company

133 It is made up of managements, engineers and treasurers, which are delivered by Wuzhi Water Supply Group. The resettlement office will be exclusively setup by the preparation office, which will be responsible for the planning, execution and coordination of resettlement.

134 Its main responsibility covers:

z resettlement concerning the land acquisition and resettlement z organizing survey on social economy and physical losses of the Aps z application for land using & land construction licenses z formation and execution of resettlement plan z be responsible for the management and supervision of resettlement compensation fund

41 z guidance, coordination and supervision of resettlement execution and progress z dealing with the disputation and problems occurred during the execution

(iii) MCRO

135 It is made up of Mucheng Town Government, Mucheng State Land Bureau, Mucheng Civil Administration and Village Committee, and etc.

136 Its duties mainly cover:

z conducting project survey & offering assistance for the preparation of RP z propagating the resettlement plan among the public z execution, inspection, supervision and recording of resettlement activities z disbursement and management of land compensation fund z supervision of land acquisition and building demolishment z express the suggestions to the higher level departments for the APs z dealing with the disputation and problems occurred during resettlement z execution of relative national regulation and rules concerning the land acquisition z participating in the monitoring of project land acquisition compensations z carry out the procedures for the approval of the project land acquisition compensation z conducting economic survey z preparation and review of resettlement plan z issuing the land planning & construction license z publicizing land acquisition announcement z guidance, coordination and supervision of resettlement execution and progress z Dealing with the disputation and problems occurred during land acquisition and land readjustment.

(iv) VRLG

137 VRLG is made up of village committee, villager team made of APs, affected families and villager representatives.

138 Its duties mainly cover

z participating in the socioeconomic project influence investigation z participating in the compilation of RP z propagating land acquisition policy among the public z distribution of land acquisition compensation fund and organizing rehabilitation activities z expressing the suggestions to higher level departments for the villagers z reporting on resettlement progress z offer assistance to the underprivileged families

(v) Relevant Government Functions

139 The Government Department mainly covers Wuzhi County Construction Commitment, State Land Bureau, Civil Administrative Bureau, Environment Protection Bureau and Project Management Office. Such government departments shall offer assistance to the resettlement.

140 Its duties mainly cover:

42 z participating in the socioeconomic survey z participating in preparation and review of resettlement plan z participating in compensation rate for land acquisition and affected attachment z handling the procedures for project land acquisition z offering the policy consultation to the resettlers z offering the assistance to the underprivileged families z offering the assistance to difficulties and problems during project construction and resettlement

(vi) Henan Urban and Rural Planning Design and Research Institute (DI)

z To minimize project impact through optimization design; z To determine the scope of land acquisition and relocation impact; z To assist compile RP; z To provide technical consultation to county IA in data survey and treatment vii) External Independent MEA z offering the advice for land acquisition and resettlement z As the independent supervision institute, it monitors RP and its implementation and submits EA to Municipal Project Office and ADB.

6.3 Staffing

141 In order that the resettlement operates successfully, the preparation office with each IA and relevant organizations involved in the resettlement implementation at various levels has assigned competent and devoted staff to form a channel for the free flow of information from bottom-up. The staff of resettlement organization is made up of professional technicians and managements who possess the special managements and resettlement & relocation experiences. Table 6-1: Resettlement Organization Staffing Referred in the Project

No. Of Total No. of Resettlement Full-Time Resettlement Working Personnel organization Resettlement Staff during schedule Staff peak County Resettlement Relative government Start from 6 11 leading group leaders July.,2004 Relative Engineering Expropriation Project Technique, Start from & Resettlement 7 12 socioeconomic survey July.,2004 Management Office people Xieqiying Town Personnel in Town Start from expropriation and 6 18 government, office July.,2004 coordination office Engineer Start from DI 3 6 July,2004 Professor, engineer Start from Independent MEA 3 5 May, 2005

Total 25 52

6.4 Measures to Strengthen Institutional Capacity Building

43 (1) Staffing Enhancement z All organizations are made up of professional technicians and administration personnel who possessed the professional knowledge and management quality. 2) Training Enhancement Major staff training and understanding of China state resettlement policies and the requirements of ADB. z To organize resettlement staff training so as to improve the operation quality and policy handling ability. (3) Ensuring sufficient capital and equipments so as to develop the working efficiency. (4) Establishment of perfect bonus-penalty measures concerning the demolition and resettlement so as to boost the performance of the staff. (5) Data base establishment and information feedback enhancement so as to guarantee the successful delivery of information. Meanwhile, the major issues shall be handled by resettlement leading team. (6) Enhancement of report system and internal supervision so that the problems can be settled soon. (7) Establishment of external independent M&E institute as well as the pre-warning system.

7 Public Participation and Consultation

7.1 Public Participation

7.1.1 Resettlement Information Brochures (RIB)

142 Water Affairs Group has compiled and issued a brochure (Chinese) to APs according to the resettlement policy and entitlement model to inform them that: (1). Applied policies and regulations (2) entitlement; (3) the plan to restore income and living standard after land acquisition and the brochure is to strengthen movement openness. The brochure includes the basic key point of the construction project, the project schedule arrangement and the affected area, land acquisition and resettlement policy, The RIB can be seen in attachment.

143 The brochures were handed out to all the APs in August 2005, meanwhile, the copies were sent to all the township governments and village committees located in the affected areas. 7.1.2 RP Distribution

144 The RP will be handed to the affected villages, and moreover, any person who wants to know the plan can get the access to the information in the villages. The IA office will keep copies of the Chinese-version RP.

7.1.3 Public Consultation in Project Preparation Phase

145 Henan Urban and Rural Planning and Design Institute had launched a series of investigations from June 2004, which was the commencement of the public consultation. The socio-economic survey showed that 95% of people supported the project and the rest did not know the project at all; 70% of people recommended that the project would profit them, while 20% unknown; while 20% got the knowledge of the project for half a year and the rest were unknown. 20% of people knew the project for six months ago as 80% knew in half a year. In the course of survey the project was unknown to the people who were not influenced. 40% of affected people got the knowledge that they would be replaced by the staff and investigators of the project, 20% through the meeting, 30% via neighbors, relatives and friends, while 10% knew from the newspaper, if anything, the relocation plan were not unknown of the land acquisition to all people.

146 APs’ suggestions and attitudes towards the projects by the meeting between the village committees and the villagers have been summarized as follows:

z Asking for fair compensation z Corresponding compensation should be paid to them based on the relevant laws and regulations. z Minimizing the land acquisition z Proper land relocation and living standard restoration should be guaranteed.

147 The point focused by ADB is public consultation, especially by the activities as follows:

z The socioeconomic survey towards the affected people of DI from June to August 2004. z The experts of resettlement and TA of ADB had informal meetings with the village leaders and APs on September 2 2004. z PMO and governments at different levels and village committees and representatives had a series of meetings from June 2004 to now, and the meeting notes are shown in the Appendix I and Appendix II. z The IA convened a series of meetings with affected people and conducted home visits of affected households during August 5th to November 4th 2005. In the meeting, IAs also answered questions regarding issues on the land acquisition and resettlement and heard the suggestions and opinions.

148 The survey again confirmed the support from the APs. Actually, 95% of the APs supported the subproject; only 5% of the APs showed indifferent. No AP against the subproject has been found. The APs were satisfied with the compensation rates and entitlements, but wished compensations could be paid to them as soon as possible that they could restore the income and living standard the sooner the better. Some resettlers inquired the compensation procedures and got the guarantee that the land acquisition, demolition and resettlement would not be carried out until they agreed and signed the agreements with LG and that all the compensation for ground attachment should be paid to every family via village committee at the same time.

149 And also the brochure explains to APs that the demands and grievance procedures can taken out through various channels (including construction bureau of area, office and village commission). Meanwhile, satisfaction of restoration plan was among the inquired people and some of whom were willing to participate in the plan.

The keynotes on consultation are shown in Table 7.1 which are included in the land acquisition and demolition plan.

45 Table 7-1: Public Participation During TA to the Project

Key Issues Organization-in-Deputy Propose Date Discussed ·Compensation rate for land Compensation rate for acquisition and land acquisition and Locations of wastewater treatment temporary land of demolition plant, offices, village leaders and 06/08/2004 use and formulated after deputies of relevant affected demolition discussion with village enterprises quantity of leaders houses, ground attachment. ·Combined with the realities of project Water group, DI, survey team, the Coordination for area, collecting the office of wastewater treatment plant 03/07/2004 RRA opinions of local where located, village leaders government and villagers. ·technical demand of the land acquisition and demolition ·investigation on the Water group, DI, survey team, the assets office of wastewater treatment plant 01/08/2004～ Conducting survey on ·sampling survey on where located, village leaders 30/08 land acquisition and the

demolition socio-economy of the affected households and afford the copies of flat draw

Sending out the ·the households, brochures of Water group, DI, survey team, the August ～ shops and other immigration, handling office of wastewater treatment plant December relevant agencies with feedback where located, village leaders 2004 which are suggestions, and affected revising resettlement report ·opinions about resettlement Collecting the compensation Water group, DI, survey team, the suggestions of land scheme gathered 02/09/2004 to office of wastewater treatment plant acquisition and from leaders of 04/09/2004 where located, village leaders demolition village committee influenced and the enterprises and villages

46 ·affected land and houses ·eligible for compensation ·rules and regulations for the land acquisition Water group, DI, survey team, the Identification of the September ～ and house office of wastewater treatment plant scope of land December demolition where located, acquisition and 2004 · compensation rate movement ·main themes and components of land acquisition and demolition report ·principles to identify impact degree

7.1.4 Public Participation and Consultation Activities in Project Implementation Phase

150 The local governments, offices, village committees and APs at all levels discussed about RP and its implementation comprehensively prior to resettlement and especially pay attention to compensation, land re-distribution, income and living standard restoration. The public participation and consultation status is shown in Table 7.2 (See also para. 145).

47 Table 7-2: Public Participation Status

Aims Of Activities Implementing Date Participants Remarks Activities Mode Agencies 1. Provide APs with the specifications executing of the project Technical agencies, and land Public assistance ·meeting is a must offices, and All APs relocation and meeting (June 21st , for every village village collecting 2005) committee opinions from the APs

·handing the draft of relocation to every AP Focused ·discussing issues 2. Proposing Group Drafting final executing and differences on the final land meeting reports and agencies, land acquisition and acquisition for public implementation offices, and All APs demolition and demolition and (August 15th , village ·discussing with plan on to APs affected 2005) committees each focused group area and collecting opinions and suggestions 3. Informing beneficiary of Focused executing the progress group agencies, The interest Loan approval ·holding meetings of construction meeting in offices, and holders and (August 25th with beneficiary and final the village beneficiary 2005) residents and APs design and affected committees and APs project area schedule inner-door ·Inventory of all executing 4. Conducting visiting property and land implementation agencies, final survey and ·collecting the (August 30th offices, and All APs on the assets survey on augmenting 2005) village and demolition physical socio-economic committees property data 5. Informing executing APs of the Holding residents implementation agencies, entitlements Public meeting to inform of （August 31st offices, and All APs and meeting key points of 2005） village compensation entitlements committees date. ·Determining whether to augment executing supports ,especially agencies, for the 6. APs’ After demolition offices, and underprivileged and supervision (September inner-door village Random vulnerable groups and health 2005 to visiting committees、 sampling ·providing brief impact and December independent introductions and beneficiaries 2006) outside latest supervision supervisors on land acquisition and demolition for plan

48 7.2 Grievance Redress Procedures

7.2.1 Targets for Grievance Redress Procedure

151 In order to safeguard the relevant personnel have proper resolutions to the issues on land acquisition and resettlement, the detailed grievance redress procedures have been established on purpose that it can guarantee the relevant persons’ opinions about the project can be solved fairly, properly and rapidly. The procedure is simple, feasible, open, and fair. In the long view, it aims to prevent APs from forcedly resorting to complicated formal channel to express grievance and opinions, namely, to redress relevant persons’ grievance or opinions inner the project management organizations, which minimizes impact on project progress and makes the redress process more efficient as well.

7.2.2 Grievance Redress Approaches

152 In order to safeguard benefit and property of relevant enterprises and individuals from damaging, their opinions and grievance redress should observe the following approaches:

z Step 1, any individual who dissatisfy with the project should propose the verbal or written suggestions to the village committee, where not been solved, they can hand to the neighborhood offices, county PMO. If still no satisfactory reply within 3 weeks, they can submit written opinions to WZWAG.. z Step 2, on receiving relevant individual or enterprise’s opinion, WZWAG should settle it with 4 weeks; if the relevant persons are still unsatisfied with the resolutions, they can report to the Municipal PMO and Municipal Land Bureau and the foregoing PMO and Land Bureau will resolve the problem via negotiation. If the AP is still not satisfied, he can take the IA to the County People’s Court. z Step 3, if the people still dissatisfy with the verdict of the People’s Court, they can sue to Jiaozuo Middle People’s Court. And the final verdict of this count should be enforced.

7.2.3 Grievance Redress Scope

153 The APs can sue all aspects of resettlement and payment of compensation including the compensation amount. And they are informed of the procedure through the resettlement information brochure. Also this information can be delivered to the APs via public meetings preceding land acquisition.

154 During the whole course of project construction, the grievance redress procedures are still available for safeguarding the villagers utilizing these to handle the issues regarding the infrastructure rehabilitation, such as irrigation, the entrance of usual roads, temporary utilization of land and the like. Thus, villages can propose the problems to the management agencies in an effective way for timely solution. After propaganda and effective implementation, until now there is no grievance redress from any affected household.

49 Figure 7.1: Grievance Redress Procedure

Provincial, Municipal, ( chart?)Henan Provincial PMO and County People’s Court Land Bureau

Monitoring and Provincial, Municipal, County LG Evaluation Institute discipline inspection

Provincial, Municipal, Zhongyuan WWTP Company Grievance Redress

Village Committee

Resettled Households

8. Monitoring & Evaluation

155 In order to implement land acquisition and RP strictly due to demands, regular M&E should be carried out in the implementation stage. The M&E on RP can be divided into two parts: internal and external M&E.

7.3 Internal M&E

156 The Leading Team, relevant functions and PMO are responsible for the internal M&E with internal monitoring office of 3 persons in the preparation sect to carry out internal M&E safeguard timely resettlement due to project plan and to protect APs’ benefits.

8.1.1 Main Monitoring Contents z Compensation payment z Grievance acceptance z Income restoration/training plan z Assistance to vulnerable groups

8.1.2 Internal Monitoring Objectives z Inspecting the completing progress of land acquisition and demolition z Safeguarding the establishment and being straightway communication and coordination channels between the project management personnel and the APs. z Safeguarding compensation payment for the APs full and punctual. z Ensuring the APs’ grievance being handled in the given time. z Strictly ensuring compensation payment for land loss to the APs and provision of resettlement subsidy due to rules and regulations

7.4 External M&E

157 The external M&E on RP should be carried out by an organization or institution which is extremely independent of project executing agencies and local government. The project is proposed to retain an independent institution to take charge of external M&E by means of bidding invitation.

8.2.1 External Monitoring Objectives z Confirming whether APs’ welfare is restored or maintained after completion of land acquisition and demolition z Identifying the restraints in policy and implementation if no restoration or maintenance z Evaluating the general efficiency, result, impact (APs’ behavior reaction included) and the sustainability of land acquisition and demolition policy and practice.

8.2.2 Means and Methods The general method is monitoring the activities, evaluating project impact and safeguarding public participation of all the APs, especially of women and vulnerable groups. The monitoring tools include both qualitative and quantitative ones:

z The baseline survey on the affected households is a representative sampling survey, which categorize due to gender and vulnerable groups to get relevant information of main indicators such as compensation distribution, efficiency, validity, impact, sustainability and etc. 20% of the APs were taken as random samples. 51 z Group discussion allows consultation from every related party of M&E doers(local government, host site personnel, NGO, community leaders and affected groups) z The talks with key persons, visiting the significant persons with relevant experience in land acquisition, resettlement and implementation such as local leaders, village leaders. z Community public meetings: Holding the public meetings in the resettlement site, and explicating the information on the demolition resettlement z Direct Structural/objective observation: Carrying out filed study on the implementation of demolition and resettlement and cross-visiting the individuals and groups for the messages. z Informal survey or dialogues: Adopting non-sampling way to carry out informal survey on APs, main villages, workers, resettlement staff and those of executing agencies

8.2.3 Reporting Requisition

158 The result of the M&E should be reported to the IA quarterly.

159 The M&E reports on project half-completion and total-completion should comprise evaluation reports on project key points, detailed interpretation of compensation payment and other measures to maintain or increase a little APs’ socioeconomic situations in “no project” state. And moreover, the experience and lessons from the land acquisition and resettlement should be included in the report for policy and method formulation in the future.

160 During the process of RP implementation, the external M&E institution should compile and submit M&E reports to ADB once half a year and then it should compile socioeconomic survey and evaluation reports every year until the APs’ livelihood was fully restored.

8.2.4 Resettlement M&E Outline

Please see Table 8.1 for resettlement M&E outline.

Table 8-1: Resettlement M&E Outline

M&E Types of M&E Indicators Institution M&E ·Has the capacity building and training activities been carried out as planned? Budget and ·Has resettlement implementation being completed due to the negotiated time frame implementation schedule? ·Has the compensation fund be paid to the resettlement office on time? ·Has all the land for project construction been acquired or occupied?

Delivery of ·Have all the APs got their entitlements as stipulated in Entitlement Matrix? AP ·Have the APs received compensation fee on time? Entitlements ·Has the income and livelihood rehabilitation been carried out as planned? Internal M&E ·Has the consultation been carried out as planned? Is the RIB ready to be Consultation, distributed to APs? Grievance ·How many APs know about their rights? How many APs know whether they and special are entitled to the rights? Issues ·Has any AP used grievance redress procedure? What is the result? ·Has the problem been solved？ ·Has the APs’ income and expenditure pattern changed compared to that before the subproject was carried out? Effect M&E ·Has the living expense of the APs changed? Does their income match to the changes? Basic ·location, householder, nationality, housing types Information ·family member, structure, ages, education background and technical skills on Affected ·land and other resources owned and the usage pattern of those resources Households ·income source and level, occupation and employment type Restoration of living ·Whether do the APs obtain main substitutes in culture and society? standard ·Has the compensation fee been discounted due to depreciation and discounts? ·Is the compensation fee enough for the APs to recover their lost assets? ·Have the affected enterprises received enough compensation to reconstruct Restoration the enterprise? External of livelihoods ·Have the farmers been provided with opportunity to profit getting? Are the M&E measures effective and sustainable? ·Have the APs regain their living standards after the resettlement by using the proposed rehabilitation measures? ·How much do APs know about the resettlement process and their entitlements? Levels of AP ·How do APs assess their living standards and livelihood after the Satisfaction rehabilitation? ·Do the APs know about the grievance redress procedure and conflict solving approaches? ·Have the APs and their possessions been correctly recorded? Effectiveness ·Have the time frame and budget been carried out sufficiently? of the RP ·How does the IA deal with contingencies？

9. Resettlement Budget The costs incurred by land acquisition and resettlement are included in the overall budget of the project. The total cost of land acquisition and resettlement for Wuzhi subproject was estimated to be CNY4.52 million at the price in September 2005.

9.1 Contents of Resettlement Costs

9.1.1 Land Acquisition & Resettlement

(i) Permanent land acquisition

161 According to the project plan and the contract signed between PPO and Wuzhi State Land Administrative Bureau as well as the agreement signed with village committees, the permanent land acquisition of this project is 55 mu, along with compensation fee is CNY2.16 million, including land compensation, resettlement subsidies, compensations for standing crops, land cultivation fee, access fee for new construction land, farmland occupancy tax, land management fee. (ii) Temporary land use

162 The sewage pipeline network needs to occupy 144 mu land, including 99 mu of dry land, with the CNY 64,400 for standing crops compensation.

(iii) Arable land Occupancy Tax

163 The occupancy tax for permanent arable land acquisition is CNY220,100.

(iv) Compensations for ground attachment

164 Affected ground attachment Includes 1 kind with 1 item and total compensation is CNY5,000.

9.1.2 Infrastructures and Facilities

165 The compensation for facilities includes 3 items of 3 kinds, of which 3 wire poles with CNY500 per pole as compensation rate, a pump well with CNY30000, 150m electric wires with CNY8 per meter as compensation rate, total compensation is CNY32,700.

166 The compensation for infrastructure is 28mu of rural earth road and 17mu pitch beton road temporarily occupied for the construction of pipeline network and the total compensation is CNY118.73 million.

9.1.3 Other Costs

(i) The designing and reconnaissance costs counted for 2 percent of the land acquisition, resettlement, infrastructures and facilities (ii) The M&E costs counted for 2 percent of the land acquisition, resettlement, infrastructures and facilities(iii) The management costs counted for 3 percent of the land acquisition, resettlement, infrastructures and facilities (iv) The training fee is accounted by the rate of CNY300 per people, and 15 peoples need CNY4,500 in total. (v) The special subsidy for the poor families totally amounts to CNY39,000.

54 9.1.4 Contingencies

167 Contingencies budgeted for is 15% of the total cost of land acquisition and rehabilitation, of which 10% is physical contingency for the purpose of various costs owing to the changes of qualities in the course of resettlement; 5% is price contingencies for currency inflation and any prices changes during the resettlement.

9.2 Budget Table on Resettlement Costs

168 The land acquisition and resettlement cost budget of Wuzhi Wastewater Treatment Project is shown in Table 9-1.

Table 9-1: Cost Estimation for Land Acquisition and Resettlement of Wuzhi WWTP Project Compensation Type Unit Quantity Rate Budget(CNY10,000) （Yuan/Unit） A. LAR 244.83 i) Permanent land 215.89 acquisition Land compensation and mu 55 27,300 150.15 resettlement subsidy Compensation for mu 55 650 3.58 standing crops Arable land reclamation mu 55 5,850 32.18 fee Land use fee for augment mu 55 4,669 25.68 construction Land management fee mu 55 783 4.31 ii) farmland occupancy tax mu 55 4,002 22.01 iii) temporary farmland use mu 99 650 6.44 iv) compensation for ground 0.50 attachment(1kind of 1 type) Grown tree tree 100 50 0.50

B. Infrastructure and facilities 122.00

i) facilities (3 kinds of 3.27 3 items) Electric pole pole 3 500 0.15 Pumped well well 1 30,000 3.00 Electric wire m 150 8 0.12 ii) infrastructure (recovery 118.73 of road surface) Rural earth road mu 28 10,005 28.01 Pitch beton road mu 17 53,360 90.71 Subtotal of A and B 366.83 C. Other cost 30.03 Reconnaissance and 2% 7.34 design M$E 2% 7.34 Administrative cost 3% 11.00 55 Training cost 0.45 Special subsidy household 750 X 16 1.20 D. Contingencies 55.02 Physical contingency 10% 36.68 Price contingency 5% 18.34 E. Total 449.18

9.3 Resettlement Investment Plan

169 Details can be seen in Table 9.2.

Table 9-2: Resettlement Investment Plan by Stages

Investment Investment by Fiscal Year(CNY10,000)） Item （CNY10,000） 2004 2005 2006 2007 A. Compensation for land acquisition 350.17 350.17 B. Compensation 0.50 0.5 for ground attachment C. Compensation 0.01 0.01 for Infrastructure D. Facilities 3.27 1.5 1.77 E. Other cost 27.59 8.63 14.35 3.25 1.36 F. Contingencies 58.17 3.4 35.67 19.10 G. Relevant tax 16.50 16.5 H. Compensation 17.33 14.2 3.13 for temporary land use Gross Investment 473.54 8.63 400.62 43.83 20.46 Proportion 100.00% 2% 85% 9% 4%

56 10. Implementation Arrangements and Schedule

170 The wastewater treatment project commenced in August 2005. Resettlement schedule is confirmed to be in conjunction with the project construction schedule.

10.1 Principles on Confirming Resettlement Schedule

z The scope of land acquisition and demolition should be eventually determined due to engineering plan, and the determination should be completed prior to the kind measurements and calculation in land acquisition and demolition. z The land acquisition should be prior to the constructions of each area. z The land adjustment and allocation should be finished in the clearance of crop exchange season. z The calculation and distribution of the compensation should be done before land acquisition or demolition and after agreement signed.

10.2 Overall Schedule of Land Acquisition and Resettlement Activities

171 The overall schedule of land acquisition and resettlement activities is studied out according to the schedule of land acquisition and resettlement preparation and implementation. See Table 10.1. .

57 Table 10-1: Schedule of Land Acquisition and Resettlement Activities

2004 2005 2006 2007 LAR Activities 5678910 11 12 12345678910 11 12 12345678910 11 12 123456 Planning of Land Acquisition and Resettlment Conduct detailed survey of APs Apply the permission of land acquisition and house demolishment Finalize the choice of resettlement areas of APs Identify and confirm poor and vulnerable APs Finalize compensation/resettlement strategies Negotiate and sign contracts Land Acquisition and Resettlement Provide compensation payment Allocate replacement land Demolish structures Income Restoration Employment of APs in the project construction Agricultural extension service/training New skill training Other income rehabilitation program Special assistance to the vulnerable group Civil Works complete detailed design construct WWTP Construct pipeline network M&E Establish internal m&e system, procedures and formats Engage M&E agency Approve TOR by ADB Training of resettlement staff Monitor land acquisition and resettlement activities Monitor income restoration programs

58 11. Due Diligence and Retrofit Measures

11.1 Due Diligence

11.1.1 Project Situation 172 Wuzhi WWTP was designed with its treatment capacity amounting to 50,000 tons/day and for the first stage it still amounted 30,000 M3/d . In May 2005 the FSR was approved via No. 636 Document [2005] and the detailed design was approved by Henan Provincial DRC in December 2005. Currently the land use license has been issued.

173 The resettlement for Wuzhou WWTP was started in October 2004 and ended in November 2005. Currently the access road, social preparation and fencing walls were all completed. And the construction designs were finalized in December 2005 and now it has commenced its civil works.

11.1.2 Land Acquisition Impact 174 The plant and access road of the WWTP totally used 55 mu land, affecting 14 households with 60 rural persons without minority. There are 2 poor families to be specially assisted. One is widow family with 2 children and the other one is elder family with 2 elders.

11.1.3 Resettlement Policies and Implementation

11.1.3.1 Compensation for Permanent Land Acquisition

175 The compensation rate for the land acquisition was determined CNY27,950/mu, including CNY650/mu for the standing crops, CNY11,700/mu for the land loss and CNY15,600/mu for the resettlement subsidy and totally the compensation fund for land acquisition amounted to CNY1,537,250.

11.1.3.2 Resettlement

176 The compensation fund encouraged individuals to invest quite much compensation on the fields beyond agriculture, such as small business, trade, transport. For the moment there are 2 households having their own shops and 1 working in transportation. For the 2 poor families, special assistance were given to them. For the widow family, another CNY700/mu was given to it for the children’s schooling cost; for the other elder family, the 2 elders were arranged to take the medical service insurance and sent to the rest home. 177 Due to the survey data before land acquisition and result after it, the compensation of CNY1,537,250 was distributed to the village group directly once and then the village group paid the fund to every household in cash.

59 11.2 Retrofit Measures

178 During the resettlement, part of the affected households reported that WWTP would pollute the underground water in their village. For this, experts were retained to have group discussion in particular to introduce the benefits of the pipelines to collect wastewater, and also the water after treatment would be used for the agricultural irrigation. Via this comprehensive and detailed introduction, their concern was removed; another part of affected households said that during the project construction whether they could supply some constructing materials. Our group contacted the EA positively to give their priority to supply materials in the same conditions. Until now, they have signed the agreement on this with the EA. And all the issues from the affected households have been settled successfully.

11.3 Resettlement Result

179 The county LARO conducted surveys on the affected village, group and households in July 2005 to find that the resettlers were quite satisfied with the compensation policies and resettlement result. Located at the joint part of urban and rural areas, currently 9 households worked in commerce and manufacture, 2 worked in the second and tertiary industrials, 1 worked in transportation and 2 households in others. Since the income from agriculture was quite lower, many farmers would not like to take it but rent the land to others or employ others to plant the land. After land acquisition, the resettlers have got compensation fund to do other business and production to gain higher profit. The resettlement has got quite good effect. The income levels of the affected households will continue to be monitored by the external monitors for two more years.

60 Appendix 1 MINUTES OF GROUP MEETING WITH PARTS OF VILLAGE LEADERS AND PUBLIC REPRESENTATIVES

Date: July 12th, 2004 Place: Office, PMO of Wuzhi WWTP loaned by ADB Participants: Wu Xiaoke (Assistant manager of Zhongyuan Wastewater treatment Co., Ltd), Ma Tiesuo (Bailiff of Xieqiying Town), Zhao Jinzhong(Superintendent of Land administrate Station of Xieqiying Town), Gu Mingshan (Leader of Qianniu Village in Xieqiying Town), Gu Hailu(Assistant leader of Qianniu Village in Xieqiying Town), Zheng Wenxing(Director of Xieqiying Town Construction Office).

The project office of Wuzhi WWTP loaned by ADB studied the regulations and laws of reference and invited some enterprises and personal deputies summoned to discuss the issues by what can make the each village and persons, those who suffered a lot from the project of land acquisition of wastewater handling factory of Wuzhi as loaned from the ADB, knew the better knowledge of the contents, objects, standards of compensations for the land acquisition, ways of compensations, payment and policy of relocation. In the course of meeting, pre-established construction office had a good parley with persons anticipated on the plausible rules or the planned compensations, and copied the modes of relocations to them. The compromises and suggestions reached lodged by each recorded as follows:

I. The deputies expected that the land acquisition should be performed based on the Land Administrative Law of People’s Republic of China revised on the 5th council of 7th standing committee of national people’s congress on 29th December 1998, and Management Rules on Demolishing houses of City issued by 40th conference of State council in 2001 and the details of demolition for Wuzhi under construction. II. The deputies expected that the compensation at length and ways of relocation should be discussed at any time in the future after the land acquisition policy and rules were fully understood. III. They expected that the project owners took the actions to minimize the damages to the local people and the PMO promised to carry out the project in this principle. IV. The wastewater treatment plant is expected to give priority to employing local APs after its completion of construction.

PMO of Wuzhi WWTP 07/12/2004

Appendix 2

MINUTES OF NEGOTIATION MEETING ON RESETTLEMENT AND REHABILITATION Date: 08/02/2004 Place: Xieqiying Township Government Participants: Lian Junli (PMO), Chen Ming (DI), Ma Tiesuo (Bailiff of Xieqiying Town), Li Wenqing (Assistant director of Xieqiying Town land administrate Office), Zhao JInzhong (Superintendent of Xieqiying Town Land Office), Gu Chang’an, Gu Xiaowei, Gu Sanlong (villager of Qianniu Village in Xieqiying Town).

For good resettlement and income restoration of the affected villagers to show negotiation and participation principle, Wuzhi Zhongyuan Wastewater Treatment Co.,Ltd, Project LAR survey and RP compilation unit, Henan Urban and Rural Planning Design and Research Institute visited the persons who suffered a lot and coordinate with them for the purpose that the inhabitants who suffered from the land acquisition could revive the normal standard as usual, and had a parley with the local government, village commission, enterprises and the deputies of villagers. The officers and the investing units got the suggestions and advices lodged by the relative units and deputies and then made the preliminary resettlement and rehabilitation plan with minutes as follows:

1. Introducing to the participants the profiles, contents, meaning, capital collection, limited period of construction, and the demands of the ADB. It is of great pleasure for local government hand a feasible and practical proposal of relocation to safeguard the living standard of the people after project construction.

2. Engineer Chen Ming of DI introduced the scope of land acquisition of the project and the effect on each village to the participants.

3. The local leaders and villager representatives have discussed about the relevant regulations and rules provided by PMO and they demanded that the compensation rate should be determined due to the reality of APs without restraint of the relevant methods or rules. For those who want to be employed the employment should be arranged and for those who need to reconstruct houses the housing plot should be provided. The local government and PMO promised to take villagers’ opinion into prior consideration for RP.

4. The local government, PMO and the villagers representatives got the consensus on the resettlement methods as follows:

z Compensation of Agriculture

The permanent farmland loss should be compensated in cash to APs as ten times of average output in the past 3 years. The individual or enterprise using farmland legally shall be settled by means of land reallocation or other methods in land exchange mechanism.

z Standing crop Crops

All APs of permanent farmland loss including the renters or illegal users will receive the one time as full compensation according to the average output of the past three years. The APs of temporary land use will be compensated with 0.5 time according to AAOV of the past three years for standing crops.

z Land resettlement Subsidy

All the APs of permanent farmland loss have rights to obtain land resettlement subsidy which is equal to 4 times of average output of the past 3 years.

z The losses of the houses and buildings will directly be given to the APs no matter the legal conditions of them.

z Training Costs for APs

The APs will get special training subsidy including traveling cost to the training center, accommodation for training and the training will last for 10 week days in 2 weeks. 15 APs will be arranged to take part in the training getting 300yuan per capital and the total cost amounts to CNY4,500.

5. The local government, PMO and village representatives have got consensus on the following fund payment methods

The local government of relevance should inform and hear the suggestions of the rural collective economic organization and villagers according to the newly-issued Land Administrative Law of People’s Republic of China; the rural collective economic organizations whose land has been acquired should inform of the income and expenditure status to the members and receive their supervision.

In order to get the compensation in account timely and adequately, the subsidy funds of land acquisition and demolition should set up special accounts for special use and no embezzlement. 6. For those residents who want to enter the plant or other industries, the local government and resettlement institutions should supply the following positions:

63 WWTP can supply 5 positions including working staff, pipeline worker and toll collectors to give priority to the affected residents; The enterprises with bright market future in the affected area should enlarge an re-build their scale to employ part of the residents who lose land because of land acquisition.

The shop front along the newly-built roads will supply quite many employment opportunities.

The positions above should be arranged to the APs due to their willing and actualities.

EA of the project will pay close attention to resettlement and rehabilitation of the APs all along and coordinate with the local government actively to resettle the affected residents and ensure that their living standard will be developed steadily after the completion of the Project.

PMO of Wuzhi WWTP 08/02/2004

64 Appendix 3

NAME LIST OF WUZHI QIANNIU VILLAGE WWTP LEADING GROUP

No. Name Department Position

1 Ding Qingyun County Government Deputy Head

County Construction 2 Wei Wei Director Committee County Construction Team Leader of 3 Xie Kaiwen Committee Principle Inspection Zhongyuan Wastewater 4 Wu Xiaoke Assistant Manager Treatment Co.,LTD County Water Supply 5 Wang Jianshe Manager Company PMO of County 6 Lian Junli Director Construction Committee

65 Appendix 4 STATUS OF AFFECTED HOUSEHOLDS IN WUZHI WWTP

Land Area Land Area Land Area Of Compensation Family Before After Loss Income Vulnerable No. Name Laborer Acquired (CNY10,000) Member Acquisition Acquisition (%) Loss (%) Groups Land (mu) (mu) (mu) １ Lian Yuhong ６６５.４８.８３.４１５.１ 61 37 ２ Gu Diansheng ５５４.６７.４２.８１３.７ 62 29 ３ Guo Manxiang ５５４.６７.４２.８１３.７ 62 21 ４ Gu Dagang ４４３.７５.９２２.２１０.３ 62 15 ５ Gu Chunjiang ７７６.４１０.３３.９１７.９ 62 32 ６ Gu Dongfang ４４３.７５.９２２.２１０.４ 62 25 ７ Gu Baoli ５５４.６７.４２.８１３.７ 62 20 ８ Gu Changxi ６６５.４８.８３.４１５.１ 61 31 ９ Gu Dachuan ５５４.６７.４２.８１３.７ 62 40 2 children and 1 widow １０ Yang Zhi ３１２.７４.４１.７７.５ 61 15 １１ Gu Xiaoli ２２１.８２.９３１.１５.１ 61 25 １２ Gu Chang’an ３２２.８４.４１.７７.８ 61 25 １３ Zhang Mantun ３２２.８４.４１.７７.８ 61 21 １４ Gu Fu’an ２０１.８２.９３１.１５.１ 61 60 2 elders