RP: PRC: Huacun Reservoir Subproject in Sishui County, Risk

Resettlement Planning Document

Document Stage: Final Project Number: 40683 August 2010

PRC: Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project

Final Resettlement Plan for Huacun Reservoir Subproject in Sishui County (English)

Prepared by the Shandong Provincial 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.

Sishui County Huacun Reservoir Risk Mitigation Project

Under

Risk Mitigation of Endangered Reservoir Project in Shandong Province

The People’s Republic of China

Resettlement Plan

Jining City Huanghuai Design and Research Institute of Shandong Province

December 2009

Letter of Endorsement

Sishui County Water Resources Department (SCWRD) received the approval of constructing the Risk Mitigation of Huacun Reservoir Project in Sihsui County from the related departments. This Project is proposed to be started in January 2010, and completed by November 2010. Sishui County Government, through Ministry of Finance, has requested a loan from the Asian Development Bank (ADB) to finance part of the Project. Accordingly, the Project will be implemented in compliance with ADB social safeguard policies. This Resettlement Plan (RP) represents a key requirement of ADB and will constitute the basis for land acquisition and resettlement. The RP fully complies with requirements of the relevant laws, regulations and policies of the People’s Republic of China (PRC), Shandong Province and Sishui County Government as well as complies with ADB’s policy on involuntary resettlement.

Sishui County Government and SCWRD hereby affirm the contents of this Resettlement Plan prepared dated in December 2009 and ensures that the resettlement will be made available as stipulated in the budget. SCWRD has discussed the draft resettlement Plan with relevant local officials and has obtained their concurrence. SCWRD under Sishui County Government was authorized as the responsible agency to manage the implementation of the Project and related resettlement activities.

Governor, Sishui County Government

______(signature)

______(date)

Abbreviation ADB Asian Development Bank AHs Affected Households APs Affected Persons EA Executing Agency EIA Environmental Impact Assessment FSR Feasibility Study Report HRPCMO Huacun Reservoir Project Construction Management Office IA Implementing Agency JSO Jihe Subdistrict Office LAB Land Administration Bureau LAR Land Acquisition and Resettlement M&E Monitoring and Evaluation PMO Project Management Office PPTA Project Preparatory Technical Assistance PRC People’s Republic of China RP Resettlement Plan SCG Sishui County Government SCWRD Sishui County Water Resources Department SPMO Shandong Project Management Office SES Socioeconomic Survey TA Technical assistance TOR Terms of reference

EXECUTIVE SUMMARY ...... 1 1. INTRODUCTION ...... 3 1.1 PROJECT BACKGROUND ...... 3 1.2 DESCRIPTION OF THE PROPOSED PROJECT ...... 4 2. IMPACTS OF LAND ACQUISITION AND RESETTLEMENT ...... 6 2.1 MEASURES TAKEN TO AVOID OR MINIMIZE LAR IMPACTS...... 6 2.2 SCOPE OF LAND ACQUSITION AND RESETTLEMENT ...... 6 2.2.1 House Demolition and Relocation ...... 6 2.2.2 Temporary Land Occupation ...... 6 2.3 SCOPE OF AFFECTED PERSONS AND DEGREE OF IMPACTS………………………………………….8 3. SOCIO-ECONOMIC PROFILE IN AFFECTED AREAS ...... 10 3.1 SOCIO-ECONOMIC PROFILE OF SISHUI COUNTY ...... 10 3.2 SOCIO-ECONOMIC PROFILE OF AFFECTED TOWNSHIP ...... 10 3.3 SOCIO-ECONOMIC PROFILE OF AFFECTED VILLAGES ...... 10 3.4 SOCIO-ECONOMIC SITUATION OF AFFECTED HOUSEHOLDS ...... 11 3.4.1 Population Distribution by Age ...... 11 3.4.2 Population Distribution by Education...... 11 3.4.3 Productive Resources...... 12 3.4.4 Household annual Income and Expenditure ...... 12 4. POLICY FRAMEWORK, ENTITLEMENT AND COMPENSATION ...... 14 4.1 APPLICABLE LAWS, REGULATIONS & POLICIES FOR RESETTLEMENT ...... 14 4.2 OBJECTIVES AND PRINCIPLES OF RESETTLEMENT...... 14 4.3 ELIGIBILITY OF COMPENSATION ...... 14 4.4 ENTITLEMENT ...... 15 4.5 COMPENSATION STANDARDS...... 17 4.5.1 Compensation Standards for Temporary Land Use ...... 17 4.5.2 Compensation Rate for Resendential and Associated Structures ...... 17 4.5.3 Compensation Standards for Attachments ...... 17 5. REHABILITATION MEASURES ...... 18 5.1 OBJECTIVES OF RESETTLEMENT ...... 18 5.2 REHABILITATION PLAN FOR HOUSE DEMOLITION ...... 18 5.3 REHABILITATION OF TEMPORARY LAND USE ...... 18 5.4 JOB OPPORTUNITIES FROM THE PROJECT ...... 18 5.5 INCOME RESTORATION PLAN OF WOMEN ...... 18 5.6 TRAINING FOR THE AFFECTED PERSONS ...... 19 6. COST ESTIMATE ...... 20 6.1 RESETTLEMENT COST ...... 20 6.2 MANAGEMENT AND DISBURSEMENT OF RESETTLEMENT FUNDS...... 20 7. POST-RESETTLEMENT PROGRAM FOR RESETTLERS IN RESERVOIR AREA ...... 22 7.1 BACKGROUND ...... 22 7.2 POST-RESETTLEMENT SUPPORT APPROACHES ...... 22 7.3 POST-RESETTLEMENT SUPPORT BUDGET IN RESERVOIR AREA ...... 23 8. IMPLEMENTATION SCHEDULE ...... 24 9. PUBLIC PARTICIPATION AND GRIEVANCE REDRESS ...... 25 9.1 PUBLIC PARTICIPATION ...... 25 9.2 GRIEVANCE PROCEDURE ...... 25 10. INSTITUTIONAL ARRANGEMENT ...... 27

10.1 RESPONSIBLE INSTITUTIONS FOR RESETTLEMENT IMPLEMENTATION ...... 27 10.2 TRAINING PLAN FOR RESETTLEMENT MANAGEMENT STAFF ...... 28 11. MONITORING AND EVALUATION ...... 29 APPENDIX 1 APPLICABLE LAWS AND REGULATIONS ...... 30 APPENDIX 2 TERMS OF REFERENCE FOR EXTERNAL MONITORING ...... 32

Executive Summary

Huacun reservoir was started to be built in November, 1959 and the main constructions were basically completed in May 1960. The reservoir is a key medium-sized reservoir of comprehensive utilization, mainly used for flood control, irrigation, secondarily used for aquaculture and industrial water. In its protection domain, there is Sishui, Qufu, Yanzhou and Jining cities, Jing-Hu and Yan-Shi railways, Jing-Fu and Ri-He express ways, super-sized enterprises such as Yanzhou Mine-one of the ten largest coal mines in China and Jidong Mine. It has an important geographical position. In light of the important geographical position and remarkable flood control, irrigation and Sihe irrigation-supplying benefits of Huacun reservoir, it is quite necessary to carry out the danger mitigation and reinforcement work.

Based on the filed survey for Construction Map Design, the project has no permanent land acquisition. All engineering works will be constructed on land within the reservoir management scope. The borrow area, spoil area and construction camps will use 68.6 mu land temporarily, including dry land 22.2 mu, orchard of 12.6 mu and shrub land of 33.8 mu with 41 households and 164 people to be affected in 3 villages, including Nanhua, Dongchen and Baijiawang village of Dahuanggou Township. The house demolishment of 405m2 will affect 1 household or 6 people from Nanhua Village. Some associated auxiliaries, and basic infrastructure and facilities will be affected. After the reinforcement of Huacun reservoir, the normal water level remains at 150.9 m. No additional inundation or resettlement impacts on drawdown area will be caused by the implementation of the Project. Total investment of the sub-project is CNY 40.97 million. The total cost for land acquisition and resettlement is CNY 1.07 million, which makes up 2.61% of total sub-project investment.

The temporary use of land will be compensated based on the actual occupation period. In the project, all land will be used temporarily for less than one year, so the compensation rate will be the annual output value, i.e. CNY 1,200/mu. In addition, the land will be restored to its original use after the completion of the engineering works. The restoration rate of borrow-area is CNY 3,300/mu. For the land used for other purpose, including temporary road, stockyard, construction camp and spoil area, the restoration rate is CNY 1,000/mu. Compensation rate for residential and associated structures is decided based on “Circular of Shandong Provincial Government Concerning the Approval of the Associated Attachment Compensation Standard on Acquired Land in Jinan and 2 other Cities (Lu Jia Fei Fa [2008] No.178)” and the result of field survey. The residential houses in brick-concrete structure will be paid at the rate of CNY630/m2. In addition, the relocation fee will be paid based on the rate in similar project. The relocation subsidy is CNY 280 per capita. The infrastructure subsidy is CNY 1,500 per household. The affected household has already been allocated housing plot in the same village.

Based on consultation with affected household, all compensation on house and associated structures will be paid in cash directly to affected household who will arrange the reconstruction of the houses and other facilities himself. The compensation for temporary land use will be paid directly to the affected people. All land to be used temporarily will be restored to its original purpose by contractor and be inspected and accepted by both of Sishui County LAB of affected people.

The APs have participated in the planning process and their concerns have been integrated into the RP. The draft RP was distributed to the affected village in December 2009. In accordance with ADB’s public communications policy, the draft RP will be posted on the ADB website prior to loan appraisal. An effective and transparent channel for lodging complaints and grievances has been established, and relevant institutions shall accept the complaints and grievances lodged by the APs free of charge. The reasonable costs incurred shall be

covered by the contingency of the project.

In order to implement RP successfully and achieve the goals of resettlement, the implementation of RP will be subject to internal and external monitoring according to ADB resettlement policies. The external monitoring and evaluation will be done by an independent monitoring agency (IMA). The external monitoring and evaluation institution shall undertake regular monitoring and evaluation of the resettlement implementation activities and provide necessary consultative proposals.

1. INTRODUCTION 1.1 Project Background 1. Huacun reservoir is located at the midstream of Huanggouhe River—tributary of Sihe river in Huaihe River drainage area, that is, north of Baijiawang village, Dahuanggou town, Sishui county. The control catchment area of the reservoir is 129 sq.km. The reservoir is a pluriennial regulation medium-sized reservoir that mainly serves the purposes of flood control and irrigation, and also gives consideration to power generation and aquaculture. The key facilities are graded III. The secondary constructions are graded IV. The reservoir’s original design standard for flood control is to stand once-in-a-hundred-year floods. The design flood level is 154.27m. The corresponding storage capacity is 43 million m3. The check flood standard for flood control is to stand once-in-ten-thousand-year floods. The check flood level is 156.39m. The corresponding storage capacity is 68.20 million m3. The normal pool level is 150.9m. The corresponding utilizable capacity is 32.60 million m3. The dead water level is 139.99m. The corresponding dead storage capacity is 1.9 million m3.

2. Huacun dam and reservoir construction was started in November 1959 and the main works were basically completed in May 1960. The key civil works of the reservoir include dam, spillway, and drainage tunnel. Huacun reservoir is 22km away from Sishui county in the downstream and 45km away from a famous historical and cultural city—Qufu. In its protection domain, there is Sishui, Qufu, Yanzhou and Jining cities, Jing-Hu and Yan-Shi railways, Jing-Fu and Ri-He express ways, super-sized enterprises such as Yanzhou Mine-one of the ten largest coal mines in China and Jidong Mine. It has an important geographical position. In light of the important geographical position and remarkable flood control, irrigation and Sihe irrigation-supplying benefits of Huacun reservoir, it is quite necessary to carry out the danger mitigation and reinforcement work. Sishui County people's government in Jining City and the local officials and the masses press for an early carrying out of the danger removal and reinforcement project of Huacun reservoir. Therefore, it is quite necessary and urgent to carry out the danger removal and reinforcement project.

3. Huancun reservoir was constructed in November 1959 and completed in May 1960. The construction of the reservoir inundated 6 villages with total affected population of 2,807 from 624 households and farmland of 6,145 mu. Six villages were relocated with total APs of 4,158, of which 3,808 APs were involved in overall relocation in Dahuanggou Township and 350 APs were involved in dispersed resettlement in 17 villages of 3 townships, including Dahuanggou, Xincun and Quanlin Townships. Based on the “Shandong Rural Resettlers Registration and Ratification Method of Large and Medium-sized Reservoirs”, in 2006 the total resettlers are 4,158 persons from1,256 households1 in 3 townships. The details of resettlement information of 23 villages is presented in Table 1-1

Table 1-1 Resettlement Status Caused by Construction of Huacun Reservoir Innundation Impacts Resettlement Status in 2006 Townships Affected Village Households APs Households APs Donghua 205 926 306 1,028 Beihua 85 380 111 444 Nanhua 128 577 259 880 Dahuanggou Xihua 119 537 222 791 Dongzaoshan 70 315 128 415 Baijiawang 17 72 69 250 Overall Sub-total 624 2,807 1,095 3,808 Resettlement

1 The Ministry of Water Resources maintains a record of all families affected by reservoir inundation. Today, the numbers have grown due to population increase and division of households.

Dahuanggou 8 Villages 90 170 Xingcun 8 Villages 70 178 Quanlin 1 village 1 2 Disperse Subtotal 161 350 Resettlement Total 23 Villages 1,256 4,158

4. In resettlement villages and host villages of Huacun reservoir, the area of wasteland and waste slope available for development was 3,120 mu in 2007, including 750 mu for development of farmland, 1,030 mu for orchard, 140 mu for economical forest, 680 mu for timber and 520 mu for animal husbandry. Based on statistical yearbook in 2005, the annual rural per capita income was 3,651 yuan and the per capita farmland is 1.15 mu in Sishui county. But in the resettlement villages, the annual rural per capita income was around 1,300 yuan and the per capita farmland ranges brtween 0.5-1.5 mu in overall resettlement villages and 0.8-1.1 mu in host villages. The remaining issues after resettlement include out-dated infrastructure and limited income sources. Most of the infrastructure, including water resources and transportation facilities, were constructed 20 years ago and in a poor condition caused by shortage of investments and backward technology at that time. Some villages still have some troubles in aspect of drinking water, transportation, medical service and education. In addition, the employment difficulties stayed with resettlement villagers. Most of them relied on agricultural activities for living. Income of resettlement villagers only accounts for one third of the average level of the County, which lagged greatly behind other people outside the reservoir area. Based on the “Suggestions of State Council on Perfecting the Post-resettlement Support Policies of Large and Medium-sized Reservoir Resettlement” and the corresponding Implementation Method issued by Shandong provincial government, Sishui County government led the preparation of the post-resettlement program for Huacun Reservoir.

1.2 Description of the Proposed Project 5. Huacun reservoir is a key medium-sized reservoir of comprehensive utilization, mainly used for flood control and irrigation, secondarily used for aquaculture and industrial water. According to Reviews of the Safe Assessment for the Grade Ⅲ dam and the Huacun Reservoir, the main tasks of danger mitigation for this time are as follow: the reinforcement of concrete anti-percolation in the dam body, the reconstruction of the slope, the hardening of the roads on the dam crest ,the reinforcement of the anti-wave wall on the upstream dam shoulder, building diversion tunnel ;the reinforcement of the spillway gate by covering the pier with concrete, upgrading metal structure and the electricity; repairing the flood control road and perfecting observation facilities and the necessary management facilities.

6. Starting and finishing time of construction of the sub-project are from March 2010 and to March 2011, project construction period is 12 months. The Project construction will necessitate temporary land occupation and demolition of one house. To mitigate the impacts, this short resettlement plan (RP) has been prepared by Jining Huanghuai Surveying and Desig Institute of Water Resources on behalf of Sishui Water Resources Department in line with the Asian Development Bank’s (ADB) Involuntary Resettlement Policy and the relevant laws, regulations and guidelines issued by the governments of People’s Republic of China (PRC) and Shandong Province.

Figure 1-1 Sketch Map of Huacun Reservoir

2. IMPACTS OF LAND ACQUISITION AND RESETTLEMENT 2.1 Measures Taken to Avoid or Minimize LAR Impacts 7. In order to avoid or reduce LAR impacts to the minimum, engineering alternatives have been carefully reviewed and the optimal option has been adopted during the Project design phase. The engineering works will be implemented within the reservoir engineering management scope of reservoir and has no impacts by permanenet land acquisition. The consolidation of the dam must be implemented around the dam, so one household has to be relocated. In addition, other construction facilities, including borrow area, construction road and camps etc., are associated with engineering works and temporay land use cannot be avoided. However, various compensation measures are prepared for affected persons who are unavoidably affected by temporary use land. During the construction phase, a reasonable construction plan has been formed before the start of construction, and the construction sites should be strictly controlled within the scope of red line and awareness of responsibilities for construction workers should be raised to minimize the land acquisition and resettlement.

2.2 Scope of Land Acqusition and Resettlement 2.2.1 House Demolition and Relocation 8. The consolidation the dam will lead to the demolition of residential one house at the foot of the dam. The house site is within the engineering management scope. One household with 6 persons will be affected by house demolition of 405 m2 and will need to be relocated. This household is headed by a fish farmer from Nanhua Village who built houses on unused land of the reservoir engineering management scope for fish culture and protecting the breeding surface. Table 2-1 provides the details of the house demolition impacts. Figure 2-1 and Figure 2-2 show the house to be demolished.

Table 2-1 House Demolition and Associated Auxilliaries to be Affected Affected Town Affected Village Structure Demolition Unit Quantity AHs APs Dahuanggou Nanhua Brick-Concrete Houses m2 405 1 6

Figure 2-1 House to be demolished Figure 2-2 House to be demolished

2.2.2 Temporary Land Occupation 9. The temporary land use of the project will affect 3 villages, including Nanhua, Dongchen and Baijiawang village in Dahuanggou township, Sishui County. The scope of the Project impacts is mainly determined by the measurement survey in August 2009 on the basis of the

technical standards and drawings of the Construction Map Design (CMD). The temporary land use includes 22.2 mu dryland, 12.6 mu orchard and shrubland 33.8 mu. Overall 41 households or 164 people from 3 villages will be affected by temporary land use. After the completion of the project, the temporarily affected land will be restored to its original condition by contractors of civil works. Table 2-2 and Table 2-3 provides the details of impact of temporary land occupation. No vulnerable people will be affected. Figure 2-3 and Figure 2-4 show the land to be temporarily occupied.

Table 2-2 Temporary Land Occupation by Construction Activities Construction Activies Temporary Land Use (mu) Borrow Area for Cofferdam 14.3 Temporary Road 21.0 Grounting 4.0 Comprehensive Prosessing Workshop 1.4 Spoil Area 17.9 Construction Camp 10.0 Total 68.6

Table 2-3 Impacts of Temporary Land Occupation Ownership of Total Affected Affected Dryland Orchard Shrubland Land to Be (mu) AHs APs Town Village (mu) (mu) (mu) Occupied NanNhua 12.0 5.0 17.2 34.2 21 82 Dahuanggou Contracted Dongchen 5.2 3.0 7.3 15.5 9 35 Town Farmland Baijiawang 7.0 4.6 9.3 20.9 11 47 Total 3 22.2 12.6 33.8 68.6 41 164

Figure 2-3 Poplar Trees to be affected Figure 2-4 Dryland to be affected

10. Some ground attachments, basic infrastructures and special facilities will also be affected. Table 2-4 shows the impacts of affected ground attachments, basic infrastructures and special facilities. Figure 2-5 and Figure 2-6 show the fruit trees to be affected.

Table 2-4 Affected Ground Attachment, Infrastructure and Special Facilities Item Unit Quantity Enclosing wall m 440 380V Electric Pole No. 24 10kv Power Line km 1.05 Young Trees No. 1,800 Mature Timber No. 2,200 Young Fruit Trees No. 420 Fruit Trees in Harvest Phase No. 400 Tombs No. 40

Figure 2-5 Fruit Trees to be affected Figure 2-6 Fruit Trees to be affected

11. According to the field investigation, all the affected persons are Han (i.e., no ethnic minority people) and there are no vulnerable persons affected by this project.

2.3 Summary of Affected Persons and Degree of Impacts

12. The temporary land use of the project will affect 3 villages, including Nanhua, Dongchen and Baijiawang village in Dahuanggou township, Sishui County. The temporary land use includes 22.2 mu dryland, 12.6 mu orchard and shrubland 33.8 mu. Overall 41 households or 164 people from 3 villages will be affected by temporary land use. The per capita land loss of affected farmers in Nanhua, Dongchen and Baijiawang villages is 0.42mu, 0.44mu and 0.44mu respectively. The average land loss ration in 3 villages is 48%, 77% and 62%. Table 2-5 shows the summary of the impacts of temporary land use in 3 villages and Table 2-6 shows the impact analysis by affected households.

Table 2-5 Summary of Temporary Land Use Impacts in 3 Affected Villages Average Land Loss Village Per Capita Farmland(mu) Land Loss(mu) APs Per Cpita Land Loss(mu) Ratio(%) Nanhua 0.88 34.2 82 0.42 48% Dongchen 0.57 15.5 35 0.44 77% Baijiawang 0.71 20.9 47 0.44 62%

Table 2-6 Impact Analysis of Temporary Land Use Nanhua Village Dongchen Village Baijiawang Village Range of Land Loss Ratio Percentage Percentage Percentage AHs (No.) AHs (No.) AHs (No.) (%) (%) (%) 1% - 25% 26% - 50% 19 90.48% 3 27.27% 51% - 75% 2 9.52% 2 22.22% 8 72.73% 76% - 100% 7 77.78% TOTAL 21 100.00% 9 100.00% 11 100.00%

13. Through analysis of the survey, all households will lose more than 25% of their farmland temporarily. With regard to Dongcheng Village, 9 affected households will lose more than 50% of their farmland. All land to be used temparorily will be occupied no more than one year and the loss of one year crop will be compensated. Furthermore, the affected people will have more time to be employed in the construction site due to the reduction of agricultural working time to increase their earnings during land occupation period.

3. SOCIO-ECONOMIC PROFILE IN AFFECTED AREAS 14. In August 2009, HRPCMO and the Design Institute organized an investigating group to investigate the impacts of land use and house demolition caused by the Project. And at the same time, socio-economic information of the APs was also collected. Besides, sampling survey on socio-economic condition of the affected households is carried out by interview.

3.1 Socio-economic Profile of Sishui County 15. Sishui County governs 13 towns (sub-district offices), and 588 village committees. The total population is 610,168 including rural population 533,000 and 59,000 urban people. Its economy grew rapidly in 2008, and its GDP has reached 8.93 billion. The fiscal revenue was 387.68 million in 2008.

3.2 Socio-economic Profile of Affected Township 16. One township (Dahuanggou Township) is affected by temporary land use, details are as follows: 17. Dahuanggou Township is situated in the east of Sishui, and it has a population of 25,511 people in 7,193 households. There is 25,276 mu of farmland, which is 0.99 mu of farmland of per capita. The annual per capita net income of farmers is 4,613 Yuan.

3.3 Socio-economic Profile of Affected Villages 18. 3 villages (Nanhua, Dongchen and Baijiawang Village) are affected by temporary land use. The basic socio-economic condition of the 3 villages is shown in Table 3-1. The socio-economic survey confirms that these 3 affected villages are situated in Reservoir Area of Huacun Reservoir. Most of land in these affected villages had been acquired by the project in 1960. Today, the per capita farmland is not the only income source and some of their income is from the off-farm work. The temporary use of the land may allow the villager to find more time for migrate work outside.

Table 3-1 Socio-economic Survey of the Affected Villages

Township/ Sub-district Office Dahuanggou Village Affected Nanhua Dongchen Baijiawang Total Households 230 162 110 Total Population 890 648 416 Male 420 348 201 Population Female 470 300 215 Agriculture Population 890 648 416 Nonagricultural Population 0 0 0 Total Labor Force 890 648 416 Male 420 348 201 Female 470 300 215 Labor Force 1st Industry 550 435 256 2ndIndustry 0 0 0 3rd Industry 340 213 160 Total Area (mu) 779 368 297 Farmland Farmland per capita (mu) 0.88 0.57 0.71

GDP(million Yuan) 129.4 94.2 60.5 1st Industry(million Yuan) 83.84 61 39.2 Output Value 2nd Industry(million Yuan) 0 0 0 3rd Industry(million Yuan) 45.6 33.2 21.3 Net Income Per Capita(Yuan) 4520 4456 4863

Net Income of The 1st Industry (%) 65 65 57 Farmers The 2nd Industry (%) 0 0 0 The 3rd Industry (%) 35 35 43

3.4 Socio-economic Situation of Affected Households 19. In August 2009, HRPCMO carried out a questionnaire investigation in the 3 villages on 22 of the 42 affected households. The sample households include 10 households in Nanhua, 15 households in Dongchen and 7 households in Baijiawang village. The characteristics of the surveyed population can be seen in Table 3-2.

Table 3-2 Statistical Characteristic of People Affected by Land Acquisition Man Women Total Item Quantity % Quantity % Quantity % Age ≤6 years old 4 10% 3 7% 7 8% 6-16 years old 6 14% 6 14% 12 14% 16-60 years old 26 62% 28 64% 54 63% ≥60 years old 6 14% 7 16% 13 15% Subtotal 42 100.0% 44 100.0% 86 100.0% Education illiterate and almost illiterate 6 14.3% 5 11.4% 11 12.8% primary schooling 8 19.0% 15 34.1% 23 26.7% middle school schooling 21 50.0% 18 40.9% 39 45.3% high school schooling 7 16.7% 6 13.6% 13 15.2% college schooling and above 0 0.0% 0 0.0% 0 0.0% Subtotal 42 100.0% 44 100.0% 51 100.0% Labor Force 24 57.14% 24 54.54% 48 55.81% 3.4.1 Population Distribution by Age 20. Among 86 surveyed persons in 22 households, 7 persons are under 6 years old, accounting for 8% of total population; 12 persons are ranging from 6 to 16 years old, accounting for 14% of total population; 54 persons are ranging from 16 to 60 years old, accounting for 63% of total population; 13 persons are above 60 years old, accounting for 15% of total population. 3.4.2 Population Distribution by Education 21. Among 86 surveyed persons in 22 households, 11 persons are illiterate and almost illiterate, accounting for12.8% of total population; 23 persons are primary schooling, accounting for 26.7%; 39 persons are ranging middle school schooling, accounting for 45.3% of total population; 13 persons are high school schooling, accounting for 15.2% of total population.

3.4.3 Productive Resources 22. Among 86 surveyed persons in 22 households, the total acreage of farmland is 77.4 mu, with 0.9 mu per capita. Corn and peanut are the prime crops. 3.4.4 Household annual Income and Expenditure 23. According to the statistical analysis of 86 surveyed persons in 22 households, household annual income per capita is 6,106 Yuan, among which wage income is 4,652 Yuan, accounting for 76.2%; income from household business is 1,454 Yuan, accounting for 23.8% (among which, the first industry income is 942 Yuan, accounting for 15.4%). As for expenditure, household annual expenditure is 1,493 Yuan, among which expenditure for household business is 560 Yuan, accounting for 37.56%; purchase of productive fixed assets is 81 Yuan, accounting for 5.4%; consumption expenditure is 852 Yuan, accounting for 57.1%. Income and Expenditure structure is shown in Table 3-3

Table 0-1 Annual Income and Expenditure Structure of Households Affected by Land Acquisition Per Capita Percentage Item (Yuan/Person) (%) Wage Income 4652 76.2% Income From Household Business 1454 23.8% Among Which: 942 15.4% Primary Industry Household annual Secondary Industry 0 Income Tertiary Industry 512 8.4% Property Income 0 Transfer Income 0 Total 6106 100.00% Expenditure for Household Business 560 37.5% Expenditure for Productive Fixed Assets 81 5.4% Tax Expenditure 0 Household annual Consumption Expenditure 852 57.1% Expenditure Expenditure for Property 0 Expenditure for Transfer 0 Total 1493 100.00% Net income 5,485 Savings 4,613

Public Opinion Survey 24. A public opinion survey of 8 households was conducted. The results indicate that all of them support the Project, and think the Project can bring benefits to the county, collectives and individuals, increase job opportunities and improve the living standard of local people. All or 100% of them think that the compensation for permanent land acquisition should be paid to the APs in cash, 98% of them are satisfied with the compensation standards, 2% are not very satisfied, 100% of them have some knowledge about the land administration law, and 97% know the policy about land acquisition and resettlement, and 3% of them don’t know the policy. Please see Table 3-4 for the detailed information of public opinion survey. As the survey was carried out before series of public participation and consultation activities, a small proportion

of the APs are not very satisfied with the compensation standards, are not familiar with the land administration law, and don’t know the policy about land acquisition and resettlement. Based on the facts, meetings with the APs have been organized to inform them on their rights and options and to increase their awareness of the LAR policy, laws, regulations and standards. As a result, the awareness of the APs has been increased than before and they are in favour of the suggested approaches.

Table 3-4 Public Opinion Survey Results (%) No. Questions Optional answers (1) (2) (3) (4) total Do you support this 1 (1) yes, (2) no, (3) it doesn’t matter 100 100 project? Who do you think can get (1) nation 100 100 2 benefit from the Project (2) collectives 100 100 (multiple choices)? (3) individuals 100 100 What benefits can the (1) improve income, (2) increase job 100 100 3 Project bring to your life? opportunity, (3) no benefit 100 100 Are you satisfied with the (1) yes, (2) not very satisfied, (3) 4 98 2 100 land compensation rate? dissatisfied Do you know Land 5 Administration Law of (1) yes, (2) not too much, (3) no 100 100 PRC? Do you know the policy 6 about land acquisition and (1) yes, (2) not too much, (3) no 97 3 100 resettlement? If your legal rights are offended during land 7 acquisition and (1) yes, (2) no 100 100 resettlement, do you know to appeal? Do you need other help, 9 e.g. training, and job (1) yes, (2) no 77 23 100 opportunities?

4. POLICY FRAMEWORK, ENTITLEMENT AND COMPENSATION 4.1 Applicable Laws, Regulations & Policies for Resettlement 25. The resettlement policy for this project is established mainly in accordance with the relevant laws of China and the relevant policies of ADB, including: ADB Policies

 Safeguard Policy Statement, July 2009 (effective from 20 January 2010)  Handbook on resettlement A Guide to Good Practice (effective from 1998)  Gender and Resettlement Analysis, February 2003. Laws and Regulations of the PRC  Land Administration Law of the People’s Republic of China (effective from January 1, 1999, latest version on August 28, 2004)  The State Council's Decision on Deepening Reform and Managing Land Strictly (Guo Fa [2004] No.28) (effective from October 21, 2004)  Circular of the State Council on Intensifying the Land Control (No. 31 [2006] of the State Council)  Guidelines on Improving the System of Land Acquisition Compensation and Resettlement (Guo Tu Zi Fa [2004] No.238) (effective from November 3, 2004)  Regulations on Land Requisition Compensation and Resettlement for Construction of Large and Medium-sized Water Conserancy and Hydropower Projects (effective in 2006)  Specifications on land requisition and resettlement design for construction of water resources and hydropower project (SL 290—2003) Relevant Policies of Shandong Province  The Implementation Regulations of Shandong Province for the PRC Land Administration Law (effective from August 22, 1999)  Circular of Shandong Provincial Government Concerning the Adjustment of the Annual Output Value and Compensation Standard of Acquired Land (Lu Zheng Ban Fa [2004] No. 51)  Circular of Shandong Provincial Government Concerning the Approval of the Associated Auxicillaries Compensation Standard on Acquired Land in Jinan and 2 other Cities (Lu Jia Fei Fa [2008] No.178)

4.2 Objectives and Principles of Resettlement 26. The primary objective of the LAR program is to ensure that the APs will improve their standards of living, or at least will not be made worse off because of the Project. The principles of the compensation and entitlements established for the Project are as follows: (i) Compensation and entitlements provided must be adequate to allow APs to at least maintain their pre project standard of living, with the prospect of improvement; (ii) Compensation and entitlements provided are based on market value or replacement value and must be adequate; (iii) Land temporarily occupied and the period of disruption are to be kept to a minimum; (iv) Compensation should not be paid to those people who occupy land or construct structures and auxiliaries in the project area after cut-off date determined by the local government; (v) Adequate compensation should be provided to the APs timely; (vi) All the APs will be adequately informed about eligibility, compensation rates and standards, livelihood and income restoration plans and project timing; and (vii) Close monitoring and timely actions will be carried out to identify and resolve any problems.

4.3 Eligibility of Compensation

27. The Project APs who are entitled to receive compensation from the Project refer to the

persons affected by the involuntary taking of land resulting in: (i) house demolition; (ii) temporary loss of land or access to land; (iii) loss of income sources or means of livelihood, whether or not the affected persons must move to another location; and (iv) loss of ground attachments and standing crops.

28. All landowners and users in the Project areas affected by land acquisition and resettlement as a consequence of the Project will be eligible for fair compensation and rehabilitation according to the type of loss and quantities as well as the cut-off date determined by the government within the completion date of the construction map and investigation; or due to the temporary impact during the construction phase. The newly cultivated land and newly built houses shall not be compensated after the cut-off date.

4.4 Entitlement 29. For the losses associated with land acquisition of the Project, the entitlement matrix has been prepared as a guide to compensation payment, which is presented in Table 4-1. The compensation fees for land occupation and resettlement will be directly paid to the land owners or users at all levels before implementation of land occupation.

Table 4-1 Entitlement Matrix Affected Affected Responsible Policy of Land Acquisition and Compensation Standard type object Agency Resettlement Item Rate 1. The compensation for all the Residetial Houses houses shall be paid according to Brick-concrete : CNY 630/m2 replacement value, and no depreciation is deducted. The Infrstructure Subsidy materials available from old houses Land levelling, water and belong to the relocatees, and they power supply: also can use them to build new CNY1500/person houses. Relocation Subsidy 2. The resettlement organ will help the resettlers move to their new houses, and each person shall get 1500 yuan Houses in HRPCMO, Residential as compensation for infrastructure brich-concrete Nanhua house such as drinking and lighting facilities. 405 m2 Village 3. Moving and transfer allowance will be paid at CNY 280/person. 4. Compensation fee for houses shall Relocation Fee: be paid to the resettlers before the CNY280/person construction of new house. 5. APs have already been allocated house plot in the same village. In addition, the affected household was allowed to build houses for fish farming purpose somewhere else around the water surface. Young Arbor Young poplar tree CNY 4 trees: 1,800; Trees each timber trees: Timber CNY 60 2,200; young each In the project compensation fee or Ground fruit trees: Young CNY50 HRPCMO replanting cost for the scattered trees Attachments 420; fruit trees each shall be paid directly to owners Fruit Trees in harvest: 400; Harvest CNY tombs: 40; 400 each enclosing wall: Tomb CNY 600 each 440m Enclosing CNY 100/m Wall 1. The temporary land occupation will Dryland, last for no more than one year and orchard Compensation compensation will be based on one and CNY1,200/mu/yr year output value shrubland Dryland: 22.2 2. The temporarily used land will be Borrow-area: mu; orchard: Temporary HRPCMO, restored after occupation by CNY 12.6 mu and land use County LAB contractor and the land restoration will 3,300/mu/yr shrubland : 33.8 be inspected and accepted by both of Land mu affected people and County LAB. The Resroration Other Land: land restoration cost will be paid to CNY contractor who responsible for land 1,000/mu/yr restoration activities. All the special facilities affected by the 380v electrical HRPCMO 10KV line: CNY80,000/km project shall be relocated and rebuilt poles: 24; 10kv and relevant Specialities according to the actual conditions power line: 1.05 special 380v Electrial pole: CNY 1500 affected by the project, original km department each standard, scale and function.

4.5 Compensation Standards

4.5.1 Compensation Standards for Temporary Land Use

30. The temporary use of land will be compensated bsed on the actural occupation period. According to the “Notice on the Adjustment of Land occupying Annual production And Compensation Standard, which is forwarded by General Office of Shandong Provincial People’s Government, and issued by Shandong Province People's government Office” Luzhengbanfa [2004] No.51, project influenced area, Sishui County, belongs to the fourth-class areas. The Annual Average Output Value (AAOV) of the fourth-class area is 1,200 Yuan per mu. In the project, all land will be used temporarily for less than one year, so the compensation rate will be the annual output value, i.e. CNY 1,200/mu.

31. In addition, the land will be restored to its original use after the completion of the engineering works. The restoration of borrow-area include earth refilling for plowland with consideration of surface soil collection and earth transportation of distance. The depth of borrow-pit is no more than 1m. The earth for refilling is 666.7m3/mu. The cofferdam earth can be used for refilling after the demolishment of the cofferdam Earth price is CNY 5/m3 with transportation distance of 150m. The land restoration rate of borrow-area is CNY 3,300/mu. For the land used for other purpose, including temporary road, stockyard, construction camp and spoil area, the restoration rate is CNY 1,000/mu with consideration of surface soil collection of 0.3 m, earth transportation distance of 100m and earth unit parice of CNY 5/m3.

4.5.2 Compensation Rate for Resendential and Associated Structures

32. Compensation rate for residential and associated structures is decided based on “Circular of Shandong Provincial Government Concerning the Approval of the Associated Auxicillaries Compensation Standard on Acquired Land in Jinan and 2 other Cities (Lu Jia Fei Fa [2008] No.178)” and the result of field survey. In addition, the relocation fee will be paid based on the rate in similar project. The relocation subsidy is CNY 280 per capita. The affected household has already been allocated a housing plot in the same village and the infrastructure subsidy is CNY 1,500 per household. Table 4-2 presents the details.

Table 4-2 Compensation Rate and Relocation Subsidy for House Demolition Items Unit Compensation Rate (CNY) Brick-Concrete Houses m2 630 Relocation Subsidy person 280 Infrastructure Subsidy household 1,500

4.5.3 Compensation Standards for Attachments 33. Affected ground attachments and infrastructure will be compensated for based on replacement cost. For details see Error! Reference source not found.. Table 4-3 Compensation Standards for Attachments Item Unit Compensation Rate (CNY) Enclosing Wall m 100 380V Electric Pole No. 1,500 10kv Power Line km 80,000 Young Trees No. 4 Mature Timber No. 60 Young Fruit Trees No. 50 Fruit Trees in Harvest Phase No. 400 Tomb No. 600

5. REHABILITATION MEASURES 5.1 Objectives of Resettlement 34. The objective of resettlement is to compile a resettlement and rehabilitation action plan for APs to ensure their living standard can be improved or at least recovered to the former level after project construction.

5.2 Rehabilitation Plan for House Demolition 35. One household of Nanhua village will be relocated due to the construction of aqueduct. The affected house was built within reservoir engineering management scope for fish farming purpose. The affected household has been allocated a housing plot in the same village. Meanwhile, the affected household was allowed to build houses for the fishing farming purpose somewhere else around the water surface. All compensation on house and associated structures will be paid directly to affected household. Meanwhile, the relocation subsidy will be paid at the rate of CNY 280/person. Cost for restoration of water and power supply and land leveling is calculated and will be paid to affected household at the rate of CNY 1,500 per household. After consultation with the affected household, he will build the house and water and power facilities themselves.

5.3 Rehabilitation of Temporary Land Use Temporary land use for Borrow Area

36. The borrow area will use 14.3 mu dryland for strengthening of the dam and spillway. The depth of borrow-pit will not be more than 1 m. Before construction activities, the surface fertile soil of 30 cm will be collected. After completion of construction, the cofferdam will be demolished and the earth will be used for refilling of plowland. The land will be leveled and the top soil will be revovered. The reclaimation rate is CNY 3,300/mu. All land will be restored to its original purpose by contractor and be inspected and accepted by both of Sishui County LAB of affected people.

Temporary Land Use for Construction Arrangement

37. 54.3 mu land will be used for construction arrangement, including construction camps , temporary road, stockyard and temporary road. Before construction activities, the surface fertile soil of 30 cm will be collected. During the construction period, the land may be hardened. After the completion, the land will be plowed and loosened and the top soil will be revovered. The reclaimation rate is CNY 1,000/mu. All land will be restored to its original purpose by contractor and be inspected and accepted by both of Sishui County LAB of affected people.

5.4 Job Opportunities from the Project

38. About 120~150 temporary unskilled job opportunities will be created during the project construction stage. In the project construction stage, the main unskilled job opportunities include manual laborers for foundry worker, excavation, material handling, greening etc.

39. According to the survey, since the affected villages are located near the construction site, they may have more spare time due to the temporary land use of their farmland. They hope to join the project construction. HRPCMO will arrange the jobs and training for them as a priority.

5.5 Income Restoration Plan of Women 40. In the stage of RP preparation, the affected women were organized to actively participate

in the survey of project impacts so as to understand their ideas on income restoration. As a result, women hold a positive attitude toward project construction by thinking that the project will help improve the environment and improve the flood control.

41. Women will fully participate in the compensation activities through the information disclosure and village meetings; they have equal entitlement with men in receiving compensation and employment. In addition, the following measures will be taken to improve women’s income:

(1) During the project construction, HRPCMO has ensured that the affected women will be given priority in unskilled jobs, including food and cleaning service. As per labor laws, women will get equal pay to men for the same work.

(2) Technical training program including livestock techniques and new agricultural planting skills etc. will be provided for the affected female laborers to ensure their income would be restored or improved after temporary land loss.

5.6 Training for the Affected Persons 42. To ensure the income of the APs will be restored in a sustainable way, SWRD will cooopearte with Sishui Animal Husbandry Bureau and Agricultral Bureau to provide free skill training programs regularly. The skill training programs include animal raising techniques, and introduction of high-yielding and efficiency cropping pattern and planting structure improvement model, etc. to support the future agricultural development of affected people when land will be returned to them. The training plan is shown in Table 0-1.

Table 0-1 Schedule of Training for APs No. Time Place Manner Recipients Contents Workshop, High-Yielding and Efficiency 1 Jan. 2010 Town APs Lecture CroppingPpattern Workshop, 2 March 2010 Town APs Animal raising Lecture, 3 Other irregular technical trainings APs Not determined yet

6. COST ESTIMATE 6.1 Resettlement Cost 43. The estimated cost of land acquisition is CNY1,072,696 in 2009 prices, including contingency. In terms of the categories of resettlement impacts, compensation of temporary land use and land restoration is CNY 183,810, accounting for 17.11% of the total resettlement cost; compensation for residential structures and reloction subsidy is CNY 258,330, accounting for 24.16%; compensation for attachments and special facilities is CNY508,200, accounting for 47.32%. Table 6-1 provides the cost estimation of LAR.

Table 6-1 Budget of Land Acquisition and Resettlement No. Items Unit Rate(CNY) Quantity Budget(CNY) 1 Land Compensation 1.1 Temporary Land Occupation mu 1,200 68.6 82,320 1.2 Land Restoration Cost mu Borrow Area mu 3,300 14.3 47,190 Other Land mu 1,000 54.3 54,300 2 Residential Structures Brick-concrete Houses m2 630 405 255,150 3 Relocation Subsidy Relocation Fee Person 280 6 1,680 Infrastructure Subsidy Household 1,500 1 1,500 4 Ground Auxcillaries Enclosing wall m 100 440 44,000 Young Trees No. 4 1,800 7,200 Mature Timber No. 60 2,200 132,000 Young Fruit Trees No. 50 420 21,000 Fruit Trees in Harvest Season No. 400 400 160,000 Tomb No. 600 40 24,000 5 Restroration of Special Facilities 380V Electrical Pole No. 1500 24 36,000 10 kv Power Line km 80,000 1.05 84,000 Subtotal ( 1-5) 950,340 6 Other Costs Design and Reserch Cost 3.00% 950,340 28,510 Impelmentation Management 3.00% 950,340 28,510 Technical Training 0.50% 950,340 4,752 Monitoring 1% 950,340 9,503 Sub-total (1-6) 7 Contigencies Basic Contigencies 5% 1,021,615 51,081 Total 1,072,696

6.2 Management and Disbursement of Resettlement Funds 44. Sishui County Water Resources Bureau will provide the entire fund for resettlement

activities and ensure that land acquisition and resettlement budgets are delivered on time for timely implementation of the RP. All LAR costs will be paid in the first year (i.e., 2010). Land compensation and resettlement subsidy will be disbursed after full consultation with the APs. Compensation for attachments and infrastructure will be paid to the affected unit or individuals directly.

45. In order to ensure the funds for land acquisition and resettlement are paid to the APs in full and in a timely manner in line with the compensation policies and standards of the resettlement plan, a strict fund appropriation plan has been established, the principles of which are as follows:  All the costs related to resettlement are covered in the general budget of this project.  The land compensation and resettlement subsidy must be paid in full before the land occupation;  To ensure the land compensation and resettlement will be implemented successfully, financial and supervisory agencies will be set up to make all funds are disbursed in a timely manner.  The budget is based on the resettlement cost estimate. The resettlement costs may increase due to changes in the actual resettlement impacts and other factors such as inflation. As the actual changes occur in the project, Sishui PMO guarantees the payment of compensation based on the detailed measurement survey (DMS) of the actual impacts. Meanwhile, the resettlement budget includes a contingency cost and will be modified based on the actual needs.

7. POST-RESETTLEMENT PROGRAM FOR RESETTLERS IN RESERVOIR AREA 7.1 Background 46. Since the founding of new China, a number of large and medium-sized reservoirs have been constructed and brought into huge benefits in flood control, power generation, irrigation and water supply and ecological aspects. A large mumber of resettlers of large and medium-sized reservoirs made major contributions to effectively promote the national economy and social development. But due to the low support level and insufficient direct benefit to resettlers, at present their production and living conditions are still generally poorer. In order to help them to improve production and living conditions, the country has established the reservoir area construction fund, the maintenance of post-resettlement support fund, and try to solve the remaining resettlement issues in reservoir area. To help the resettlers in reservoir shaking off the poverty and promote the economic and social development in the new period, the central government of PRC issued the “Suggestions on Perfecting Post-resettlement Support Policies for Large and Medium-sized Reservoirs Resettlers” in 2006 (Guofa [2006]No.17).

47. Based on the document of central government and corresponding Provincial document(Luzhengfa [2006]No.84), in 2007 Sishui County Government formulated the Post-resettlement Plan for the period of 2006-2010. Resettlers of Huacun Reservoir Area are the targeting group of the plan.

48. 4,158 people were relocated due to the construction of Huacun Reservoir in 1959. 3808 people in 6 villages moved as whole villages, including Donghua, Xihua, Nanhua, Beihua, Dongzaoshan and Baijiawang Village of Dahuanggou Township. The other 350 people moved into 17 villages of 3 townships, including Dahuanggou, Xingcun and Quanlin Townships. Based on the “ Rural Resettlers Registration and Ratification Method of Large and Medium-sized Reservoirs in Shandong province”, 4,158 people were identified as the support target of Huacun Reservoir.

7.2 Post-resettlement Support Approaches 49. Based on the “ Management Method of Post-resettlement Suport Fund of Large and Medium-sized Reservoirs in Shandong Province”, the support fund can be paid directly to resettlers or be used in actual development programs. In Sishui county, after full consulatation with affected people, all support fund has been paid to resettlers directly at the annual rate of CNY 600/person. The support will last for 4 and a half years in the duration of 2006-2010. The total cash payment will be CNY 11.23 million for resettlers of Huacun reservoir area. In addition to the cash payment, some other development programs has been planned and implemented since 2006. The details of such programs and implementation status of Huacun Reservoir Area is presented in Table 7-1. It is planned that 5 development programs have been or will be implemented in reservoir area villages from 2006 to 2010, including water resources facilities and farmland improvement, transportation works, education and entertainment facilities, clinic and health care and broadcasting and cable TV installation. It is ecpected through the improvement of infrastructures the living condition of people in Huacun Reservoir Area will be better-off.

Table 7-1 Post-resettlement Support Program of Huancun Reservoir Beneficiaries Investment Programs Contents of Resettlers 4 Progress(%) (No.) (CNY 10 ) Well drilling, pipeline installation, Water Resources Facilities and irrigation equipment, water 4,02 Farmland Improvement storage pond, terrace plowing, 1 472.6 0 etc. 2,46 Transportation Village-village road 6 109.0 0

1,04 Education and Entertainment Facilities Cultrual and amusement building 1 30.0 0 Village clinics and medical 2,23 Clinic and Health Care appliance 4 29.0 0 2,08 Broadcasting and Cable TV Installation of cable and receivers 6 24.0 0

7.3 Post-resettlement Support Budget in Reservoir Area 50. In Sishui county, after full consultation with affected people, all support funds are being paid to resettlers directly at the annual rate of CNY 600/person. The support will last for 4 and a half year in the duration of 2006-2010. The total cash payment will be CNY 11.23 million for resettlers of Huacun reservoir area. In addition to the cash payment, some other development programs has been planned and implemented since 2006.The total budget of the programs is CNY 6.65 million. The cost of all post-resettlement support programs was from the increase in power price of state grid. Due to the economic recession in 2008 and 2009, the power price failed to reach the expected level which lead to limited fund source available for post-resettlement program. It is expected the situation will be a favorable turn with the economic recovery. Table 7-2 presents the details of the budget of the programs. Table 7-2 Investment of Post-resettlement Support Programs and Implementation of Huacun Reservoir Area Budget Budget Beneficiaries of Progress Programs Township Disbursed (CNY10,000) Resettlers (No.) （%） (CNY 10,000) Water Resources Facilities and Xingcun 19.0 43 0 0 Farmland Improvement Huanggou 453.6 3,978 0 0 Transportaion （Road） Huanggou 109.0 2,466 0 0 Education and entertaiment Huanggou 30.0 1,041 0 0 Facilities Clinic and Health Service Huanggou 29.0 2,234 0 0 Broadcast and Cable TV Huanggou 24.0 2,086 0 0 Total 664.6 0 0

8. Implementation Schedule

51. The resettlement is scheduled to begin in January 2010 and complete in November 2010, reflecting the linkage and consistency between the time schedule of LAR and civil works construction tasks. Civil works will not begin before compensation for the APs are paid in full, which is in accordance with the recently promulgated State Council Decree #31. All compensation for residential structures and ground attachments will be paid before construction. Table 8-1 provides the resettlement activities and supervision milestone.

Table 8-1 Resettlement Activities Milestone Responsibilities Progress No. Compensation Task Targets Deadline Agencies Status 1. Information Disclosure 1.1 -Resettlement Plan 42 households with 146 HRPCMO 2009.12 Completed persons in Nanhua, Dongchen and Baijiawang Village 1.2 -Publish Compensation Plan ADB 2010.01 Planned on ADB website 2. Approval of RP & Budget SCG 2009.12 Completed 3 Compensation Agreement 3.1 -Temporary Land 41 AHs HRPCMO, County LAB 2010.03- Planned Compensation 2011.03 3.2 -Household Relocation 1 AH HRPCMO 2010.03 Planned 4 Monitoring and Evaluation 4.1 -Baseline Survey (additional) 3 villages HRPCMO 2010.01 Planned 4.2 -Establish Internal M&E As per RP SCWRD, HRPCMO 2009.09 Completed mechanism 4.3 -Sign contract with External SPMO, HRPCMO 2010.01 Planned M&E agency 4.4 - Internal Reporting Quarterly Report HRPCMO, SCWRD, 2010.06 Planned SPMO 4.5 - External M&E Report Semi-annual Report in IMA 2010.07, Planned 2010; two annual 2010.12, evaluation reports 2011, 2012 4.6 -Resettlement Completion 1 Report HRPCMO, SCWRD, 2011.12 Planned Report SPMO 5 Consultation documentation HRPCMO /VC Ongoing 8 Grievance and appeal files HRPCMO /VC Ongoing 9 Resettlement compensation payment 9.1 - Paid to affected people “ “ “ HRPCMO 2010.03- Planned 2011.03 10 Post Resettlement Support 10.1 - Household subsidies Cash payments SCWRD, SPMO Up to 2010 10.2 - Rehabilitation Programs 5 programs SCWRD, SPMO 2011.12

9. Public Participation and Grievance Redress 9.1 Public Participation 52. The RP was prepared with full public participation and full information sharing with APs. The HRPCMO has informed the resettlement policies to all the APs via socio-economic survey, social impact survey and other communication and consultation channels. HRPCMO also has consulted with various affected persons through consultation meetings. Through wide consultation, coordination and communication, related local government, affected villages and APs can fully understand the resettlement impacts, resettlement policies and formulate feasible income restoration measures.

53. HRPCMO contacted the affected village committee in August 2009, and discussed the Project and compensation costs, compensation policies, entitlement, and impacts of the Project on the village and APs. HRPCMO will sign the compensation agreement with APs in January 2010. The RP approved by SCG has been redistributed to village committee in December 2009 to any one wishing to consult the document at the affected village. Copies of the short RP will be kept in the Project office and affected VC. At the same time this short RP will be posted on the ADB’s website in January 2010. The public consultation activities and schedule is presented in Table 8-1.

Table 9-1 Public Consultation Activities and Schedule Organizations Objectives Task Date Participant Involved 1. Inform and discuss Release of location and August HRPCMO, VC and Representatives of issues related with LA; area of LA, compensation 2009 VillagerRrepresentatives each organization Obtain suggestion or standards, and advices resettlement, etc. 2. Survey on affected Field survey of affected, September HRPCMO and VC Representatives of physical index, and physical index, and 2009 each organization preparation of RP socioeconomic status of affected households 3. Compensation Agreement of March HRPCMO , Sishui LAB Representatives of agreement signed with complementation 2010 ~ and affected People each organization Affected People standards, and grievance March appeal procedures 2011 4. RP disclosure on ADB Release of draft RP January ADB website 2010 5. Recheck of Physical Check of faults, verification Febrary HRPCMO and VC Representatives of indicators and release of of affected quantity or 2010 each organization Final RP extent 6. Implementation of Final Verification and March 2010 HRPCMO , Sishui LAB Representatives of RP implementation of Final RP ~March 2011 and affected People each organization 7.Monitoring and Survey on the January 2010 HRPCMO,VC, and IMA Socioeconomic Evaluation of RP rehabilitation of APs after sample survey resettlement implementation 9.2 Grievance Procedure 54. During the preparation and implementation of the RP, public participation is encouraged, and thus there should not be any major issues or grievances. However, some unforeseen issues may occur during such process. In order to settle such issues effectively and make the construction and land acquisition implement successfully, an effective and transparent channel for lodging complaints and grievances has been established. The basic stages for grievance redress are: Stage 1: The APs submit an oral or written petition/complaint to the village committee. For an oral complaint, the village committee must make written records properly and give a clear

reply within 2 weeks. Stage 2: If the complainant is not satisfied with the reply in Stage 1, he can appeal to the township government/sub-district office after receiving the reply in Stage 1 and the township government/sub-district office will deal with the complaint within 2 weeks. Stage 3: If the affected person is still not satisfied with the reply of township government/sub-district office, he can appeal to Sishui Land Resources Bureau and Sishui Land Resources Bureau must give a reply within 30 days. Stage 4: If the affected person is still not satisfied with the reply of Sishui Land Resources Bureau, he can appeal to SPMO after receiving the reply of Stage 3. They also have the right to appeal to the civil court within 3 months of receiving the reply. 55. Besides the established channel above, the external monitor can also receive grievances from APs and the APs can even submit directly to ADB2. The appeal process, institutions, sites, leaders, and telephone numbers for redress of grievances will be publicized to APs via meetings, notices and the information handbook. In this way, the APs will fully realize their rights of appeal. Meanwhile, the system of information dissemination will be strengthened through use of the media, and all APs feedback will be compiled and distributed to all involved organizations.

56. Relevant institutions shall accept the complaints and grievances lodged by the APs free of charge. The reasonable costs incurred shall be covered by the contingency of the project. During the whole process of project construction, these grievance procedures remain valid so that the APs may deal with relevant issues.

2 ADB has an Accountability Mechanism to ensure policy compliance. APs are required to seek grievance resolution using the above procedures, but if they still believe that their concerns have not been resolved in accordance with this RP or ADB's Involuntary Resettlement Policy (1995), they may submit a complaint to ADB. The procedures are provided on ADB's website: http://www.adb.org/Accountability-Mechanism/default.asp

10. Institutional Arrangement

10.1 Responsible Institutions for Resettlement Implementation 57. The departments responsible for planning, implementation, management, and monitoring of the resettlement activities of the Sishui Huancun Resevoir ADB Loan project are:  Huacun Reservoir Project Construction Management Office of Sishui Water Resources Department  Huacun Reservoir Management Offcie  Sishui Land Resources Bureau  Sub-district offices/ township governments  Villagers committees/ affected communities  Design Institute. 58. Sishui Water Resources Department is in charge of resettlement investigation, development of the RP and implementation of land acquisition.

59. Huacun Reservoir Project Construction Management Office of Sishui Water Resources Department is the specific implementing agency, which is responsible for the socio-economic investigation, coordinating with Sishui Land Resources Bureau, governments and the affected village committees, and implementing the work of land acquisition and resettlement.

60. Sishui Land and Resources Bureau is responsible for directing the implementation of resettlement, organizing and coordinating.

61. Sub-district offices/ township governments are responsible for the project impact investigation, and assisting the Sishui Land and Resources Bureau to sign relocation agreements with land departments and the APs in order to implement land occupation and resettlement successfully.

62. Affected village committees/ communities are responsible for providing the land contract, assisting or participating in the various surveys and the work of land acquisition; community mobilization activities for publicity, and undertaking the verification of the measurement, valuation and finalization of demolition agreements after APs negotiations together with the relevant technical personnel.

63. Design institute is responsible for the design of the project and defining the scope of affected land, buildings and assets.

The staffing of institutional arrangement for LAR is presented in Table 10-1

Table 10-1 Staffing of Institutional Arrangement for LAR Staff (No.) Name of Institution Personnel Composition Male Female Huacun Reservoir Project Construction 3 Officials Mangament Offcie Huacun Reservoir Managment Office 2 1 Technicians Dahuanggou Township 1 Official Sishui County LAB 1 Officials Huacun villages committee 3 1 Cadres and representatives of APs

TOTAL 10 2

10.2 Training Plan for Resettlement Management Staff 64. A system for staff training and human resource development will be established at all levels of resettlement management institutions. The training plan is organized by SPMO, and the form of training will include specialist lectures, technical training seminars, inspection of other similar projects and site training, etc. The training plan is shown in Table 10-2, while the training contents will include: resettlement principles and policies, planning and management of projects with resettlement, resettlement planning and design, resettlement progress management, resettlement financial management, resettlement quality control, management information system, resettlement monitoring assessment.

Table 10-2 Schedule for Resettlement Implementation Training Training Time Location Recipients Training content methods Centralized Resettlement Feb. 2010 Jinan City Resettlement business training course work staff Learn from Key personnel of The implementation site visit of the Jun. 2010 Domestic demonstration the office ADB project Resettlement Discuss the resettlement experience Oct. 2010 Jinan City Seminars work staff and the problems

11. MONITORING AND EVALUATION

65. In order to ensure the successful implementation of the RP and accomplish the objectives to achieve appropriate resettlement, monitoring and evaluation should be carried out for the implementation of resettlement in accordance with the requirement of the ADB resettlement policies. The monitoring include both internal and external.

66. HRPCMO will be responsible to supervision resettlement activities and report progress. During resettlement implementation, key activities or issues, when relevant, will be included in the Quarterly Progress Reports that are to be submitted to ADB.

67. The independent monitoring and evaluation is done by an independent monitoring agency (IMA). The IMA will carry out regular monitoring and evaluation to the resettlement activities.

68. The IMA, approved by ADB and SPMO, will undertake the independent monitoring of the Project in respects of: (i) extent of consultation undertaken with APs; (ii) compensation disbursement to the APs and affected village or group; (iii) production and livelihood rehabilitation measures for the APs; (iv) schedule of above LAR activities; (v) compliance with the policies and regulations of the resettlement plan; (vi) participation and consultation during the project implementation; (vii) grievances, problem resolution and follow-up; (viii) staffing, training, schedule and work efficiency of the resettlement officers. The IMA, being independent of the project, will inspect the whole implementation from an overall and long-term point of view. The IMA will put forward proposals to HRPCMO, FCPMO and HPMO in time so that the problems taking place in the implementation of the resettlement can be solved as soon as possible. The terms of reference for external monitoring and evaluation is presented in Appendix 2.

69. The major external monitoring and evaluation indicators are as follows:

(1) M&E on Progress of Land Acquisition Implementation: i) progress of land acquisition; ii) progress of temporary land occupation; and iii) progress of project impacts;

(2) M&E on Fund Disbursement and Usage: i) Fund disbursement; and ii) Fund usage (planning and actual fund usage).

(3) M&E on Rehabilitation of APs’ Production and Livelihood: i) Production and living conditions of the APs before land acquisition; ii) Production and living conditions of the APs after land acquisition; iii) Analysis and evaluation of employment and living condition before and after the resettlement; and iv) Grievance mechanism and problem resolution.

(4) M&E on capabilities of resettlement institution, public participation, grievance and appeal procedures.

Appendix 1 Applicable Laws and Regulations The Applicable Provisions in Land Administration Law of the People’s Republic of China

Article 57 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 shall be subject to approval by the land administration department of a people’s government at or above the county level. However, if the land to be temporarily used is located in the area covered by city planning, the matter shall be subject to agreement by the city 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. The temporary land user shall use the land for purposes stipulated in the contract for temporary use of the land and may not build permanent structures on it. Generally, the period for temporary use of land shall not exceed two years

The Implementation Regulations of Shandong Province for the PRC Land Administration Law

Article 27 Ground attachments and young crop compensation rate for acquired land should be as follows: (1) Young crop compensation is calculated at output value of one crop rotation; (2) As for the tree on acquired land, transplant should be organized if possible; the labor cost for the transplanter and loss of sapling should be compensated for. If trees are impossible to transplant, compensation should be pay after evaluation. (3) The attachments on acquired land shall be compensated for by converting into money according relevant regulation, or by reconstructing the same quality and same quantity as the former. (4) Trees and green seeding planted during land acquisition period will not be compensated for, so are the constructions building during land acquisition period. Constructions and other establishments built on illegal-occupied land will not be compensated for. Article 39 Compensation rate for temporary land occupation should be as follows: (1) When construction land within urban planning district is occupied temporarily, compensation should be calculated at the price of land use right in corresponding period. When construction land out of urban planning district is occupied temporarily, compensation should be calculated according to local temporary occupation compensation rate for common farmland. Ground attachments destroyed should be compensated for appropriately according to the actual condition. (2) Temporary farmland occupation should be compensated for according to AAOV for the three years preceding such acquisition; ground attachments destroyed should be compensated for appropriately according to the actual condition. (3) Temporary unused land occupation should be compensated for at 30% of the compensation rate for common farmland. The temporarily occupied farmland should revert by the construction entity within one year

after expiry of temporary occupation.

Circular of Shandong Provincial Government Concerning the Adjustment of the Annual Output Value and Compensation Standard of Acquired Land (Lu Zheng Ban Fa [2004] No. 51)

Define the lowest standard of AAOV. According to the socio-economic condition of different places, the AAOV is divided into 4 types in Shandong Province in reference to the compensation for newly added construction land use. The detail standards are as follows: the first district is 1,800 Yuan/mu, the second district is 1,600 Yuan/mu, the third district is 1,400 Yuan/mu, and the fourth district is 1,200 Yuan/mu. The lowest AAOV is 1,000 Yuan/mu out of the urban planning area in the whole province. According to the socio-economic condition and difference of corps, municipal government can be compile specific, implementing standards on the basic of the lowest AAOV. And the modified standards should be submitted to Price-Fixing Bureau, Financial Bureau, and Land Resources Department of Shandong Province.

Appendix 2 Terms of Reference for External Monitoring

A Objectives of resettlement monitoring and evaluation In accordance with the requirements of ADB’s resettlement policies, it is to undertake external monitoring and evaluation for resettlement of Risk Mitigation of Endangered Reservoir Project in Shandong Province. Through monitoring the progress, funds mobilization and management of land acquisition, demolition and resettlement, it is to analyze and compare the changes and restoration of the production and livelihoods of the affected people, and thus to provide with follow-up evaluation in this connection. In addition to the regular reports (twice a year in resettlement implementation period) respectively submitted to ADB, SPMO and relevant competent authorities. This process shall also provide information and suggestions to all departments for reference in policy making. Through external monitoring and evaluation, ADB and the project administrative agencies may have full understanding of the conditions and existing problems of land acquisition, demolition and resettlement, such as timely implementation of the resettlement plan, full achievement of the expected targets as well as the suggestions for improvement etc. B Major contents of resettlement monitoring and evaluation (1) Baseline Survey should include: (i) family information; (ii) household annual income and expenditure; (iii) affected land production and income loss; and (iv) affected informal land production and income loss. (2)Monitoring and evaluation of the progress of land acquisition include: (i) progress of land acquisition; (ii) progress of temporary land occupation; and (iii) progress of house demolition and reconstruction. (3) Monitoring and evaluation of funds mobilization and utilization include: (i) situation of in-place funds; and (ii) utilization of funds (planned and actual). (4) Monitoring and evaluation of living standards of relocated of people include: (i) production and living conditions before displacement; (ii) production and living conditions after displacement; and (iii) comparative analysis and evaluation of the employment and living conditions before and after displacement. (5) Evaluation of the capacity of resettlement institutions and the situation of public participation and complaints handling. C External Monitoring Agency The external monitoring agency in this project will be undertaken by an external institution entrusted by SPMO and accredited by ADB. D Organization and work division for resettlement monitoring and evaluation  SPMO entrusts external institutions take charge of the investigation, date collection, computing and analysis about the monitoring and evaluation work, and review the research results;  The external monitoring institutes compose the Monitoring and Evaluation Group of the Risk Mitigation of Endangered Reservoir Project, the tasks of which conclude monitoring and evaluating the resettlement according to the Involuntary Resettlement Policy of ADB; designing an outline of the monitoring and evaluation work; setting the monitoring spot; monitoring field investigation and internal analysis; and preparing monitoring and evaluation reports;  SPMO provides convenience on personal and traffic to Independent Resettlement Monitoring and Evaluation Institution during on-the-spot monitoring and investigation. E. Methods of resettlement monitoring and evaluation.

 Monitoring and evaluation shall adopt the combined methods of site survey, computational analysis and expert review;  The method of point-area method shall be adopted in the survey. The progress, funds, organizations and management of resettlement implementation shall be fully explored; the progress, funds, organizations and management of the resettlement implementation shall be fully explored. While sample survey shall be conducted for the APs.  The random sampling method shall be adopted in the sampling survey, while the typical samples shall be followed up for survey. (Samples are taken and categorized among all the affected households involved in the socio-economic surveys at the project preparatory stages. It is primarily decided that 10-15 households affected by land acquisition and 20-30 households affected by informal farmland occupation are sampled. All of the vulnerable groups if any are surveyed as sample families). The methods of tabular format survey, interview discussion, archives consultation etc. shall be adopted in the full-coverage survey.  In addition to the written materials, other materials such as photos, recordings, videos and articles in-kind shall be also collected. F M&E Report for resettlement external monitoring According to the requirements of ADB and the project schedule, the external monitoring and evaluation agency would submit the monitoring report and the evaluation report to ADB and SPMO twice a year during resettlement implementation and will then submit annual evaluation reports for two years to ensure resettlement was completed successfully.