Social Safeguard Due Diligence Report

Project Number: 51401-001 May 2020

PRC: Shaanxi Green Intelligent Transport and Logistics Management Demonstration Project

Ankang Waterless Port Rail-Road-Air Multimodal Logistics Subproject

Prepared by Ankang Hengkou Demonstration Zone Investment & Development Corporation for the Asian Development Bank.

TA 9613-PRC: SHAANXI GREEN INTELLIGENT TRANSPORT AND LOGISTICS MANAGEMENT DEMONSTRATION PROJECT

Ankang Waterless Port Rail-Road-Air Multimodal Logistics Subproject

Due Diligence Report

Ankang Hengkou Demonstration Zone Investment & DEVT CORP. May, 2020

CURRENCY EQUIVALENTS (As of 1 April 2020) Currency unit – yuan (CNY) CNY1.00 = $0.141 $ 1.00 = CNY 7.0771

ABBREVIATION AAOV Average Annual Output Value AH Affected Household AP Affected Person DDR Due Diligence Review FSR Feasibility Study Report GRM Grievance Redress Mechanism HH Household LAR Land Acquisition and Resettlement M&E Monitoring and Evaluation PMO Municipal Project Management Office NGO Non-Government Organization PAP Project Affected Persons PDRC Provincial Development and Reform Commission PCG Project Coordinating Group PIE Project Implementing Entity PMO Project Management Office PRC People’s Republic of China RP Resettlement Plan RIB Resettlement Information Booklet SPS Safeguard Policy Statement

NOTES (i) The fiscal year of the Government of the People’s Republic of China and its agencies ends on 31 December. (ii) In this report, " $ " refers to US dollars and “¥” refers to CNY or Yuan (iii) 1 hectare=15 mu

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

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

Contents

1 PROJECT CONTEXT ...... 1

1.1 PROJECT OVERVIEW ...... 1

1.2 THE SOCIO-ECONOMIC SITUATION OF THE PROJECT AREA ...... 1

2 INVESTIGATION ON THE SITUATION OF CONSTRUCTION FIELD ...... 2

2.1 PURPOSE OF THIS DUE DILIGENCE ...... 2

2.2 METHODOLOGY ...... 2

2.3 STATUS OF THE PLANNED LAND ...... 2

2.4 RESETTLEMENT DUE DILIGENCE REVIEW OF THE PROPOSED PROJECT SITES ...... 3 2.4.1 Impacts ...... 3 2.4.2 Land acquisition process ...... 4 2.4.3 Resettlement measures for land-expropriated farmers ...... 7

2.5 INFORMATION DISCLOSURE AND GRIEVANCE REDRESS MECHANISM ...... 8

2.5 INVESTIGATION ON THE AFFECTED VILLAGES AND TOWNS ...... 9 2.5.1 Socio-economic Situation of the Affected Villages and Towns ...... 9 2.5.2 Sampling survey of socio-economic conditions of households affected by land acquisition . 11

2.6 PUBLIC CONSULTATION ...... 12

3 CONCLUSIONS AND CORRECTIVE ACTION PLANS ...... 16

3.1 CONCLUSIONS...... 16

3.2 CORRECTIVE ACTION PLAN ...... 16

ANNEX 1: THE LAND APPROVAL ...... 18

ANNEX 2: RECEIPTS OF COMPENSATION ...... 21

ANNEX 3: LAND ACQUISITION AGREEMENT ...... 22

ANNEX 4: CONSULTATION MEETING BEFORE LAND ACQUISITION ...... 25

ANNEX 5: SOCIAL INSURANCE FUND COMMITMENT LETTER ...... 26

1 Project Context

1.1 Project Overview

1. The project implementation entity of Ankang Waterless Port Rail-Road-Air Multimodal Logistics subproject is Ankang Hengkou Demonstration Zone Investment & DEVT CORP (hereinafter referred to as Hengkou PMO). Among the 800 mu total area, the area of the railway goods yard is 500 mu, and the area of storage and agricultural trade center is 300 mu.

2. Component 1: The railway goods yard area is divided into three functional areas: Railway Goods Yard (hereinafter referred to as Railway Goods), Qinglan Iron and Steel Logistics Park (hereinafter referred to as Qinglan), and Dry Port Logistics Park. The railway goods yard area includes storage yard, container bulky goods work zone, packed goods zone and goods in bulk work zone. And there are other auxiliary projects, such as greening, road and plaza projects.

3. Component 2: The construction for storage and agricultural trade center includes cold storage, free warehouse, collecting and distribution center, comprehensive service building, apartment units for the non-married workers, power station and auxiliary station.

1.2 The Socio-economic Situation of the Project Area

4. The location of the project construction site is in Hengkou Town, Hanbin District, Ankang City, Shaanxi Province. Ankang City is located in the southeast of Shaanxi Province, where is adjacent to the Qingling Mountains in the north, and next to Ba Mountain in the south. The Hanjiang River cross through it from west to east and the basin valley is in the center place. It administers one district, nine counties, and 161 towns with a total land area of 23,529km 2. Hanbin District is the center of Ankang City, Shaanxi Province in politics, economy, culture and traffic information, sitting in the interior of Ankang City where is at the upstream of Hanjiang River. The total area of it is 3,652m2, administering 30 towns, four offices, 876 administrative villages and 69 neighborhood committees. The Table 1 shows the local economic data. Because the statistical bulletin for national economic and social development of Ankang City and Hanbin District in 2019 has not been published, the economic data in Table 1 is the data in 2018.

Table 1-1: The Socio-economic Situation of Ankang City and Hanbin District in 2018 SN. Project Unit Ankang City Hanbin District 1 National Territorial Area km2 23,529 3,652 1.1 Agricultural Acreage thousand mu 5,486.5 1,412.9 1.2 Per Capita Agricultural Acreage Mu/person 2.9 2.6 2 Total Population thousand people 3,037 1,012

2.1 Male Population thousand people 1,624 535

2.2 Female Population thousand people 1,413 477 3 GDP CNY million 113,377 34,236 3.1 Primary Industry CNY million 12,325 3,133 3.2 Secondary Industry CNY million 6,208 15,536 3.3 Tertiary Industry CNY million 38,372 15,567 3.4 Per Capita GDP CNY/Person 42,544 38,812 4 Per Capita Urban Disposable Income CNY/Person 24,977 25,318 5 Rural Per Capita Disposable Income CNY/Person 9,504 9,455 2

2 Investigation on the Situation of Construction Field

2.1 Purpose of this Due Diligence

5. The purpose of the due diligence review for the land acquisition is to assess if the prior land acquisition and resettlement of the affected people are in compliance with the laws and regulations of the State, Shaanxi Province and Ankang City, and whether they conform to the social safeguard policies of ADB, and to review the resettlement process, resettlement cost management, income restoration and satisfaction of APs, female APs’ participation and if their rights were protected during the process of land acquisition, the situation of vulnerable groups and supporting policies; public participation, information disclosure and capacity building, GRM status; identify outstanding issues arising from resettlement, and propose feasible suggestions.

2.2 Methodology

6. The information used in this report is from 3 sources: a) Literature review: collecting and compiling subproject information and survey data from local authorities and subproject agencies ➢ Collected literatures: subproject approval document, land use right certificate, land acquisition policy, agreements, compensation record and related supporting measures related to resettlement, etc. ➢ Public participation information related to resettlement, land acquisition notice etc. b) Information and data have been further verified through fieldwork and direct communication with stakeholders. c) Sampling survey, including the source of livelihood of affected people in the project area, the changes of APs’ production and living standards, etc.

2.3 Status of the planned land

7. Component 1: Railway goods yard component. A total of 500 mu will be assigned for the project. The 330 mu state-owned land in the 500-mu land of railway goods yard belonging to China Railway Xi'an Group Co., Ltd. The official approval reply for the conversion farmland to state-owned land was completed in September, 20161. The remaining 170 mu of land has been acquired in 2019 and already being state-owned land, which is confirmed by the local natural resources bureau and PIU as in Figure 1. The "bidding, auction, and listing" procedure for these 170 mu state-owned land will be completed in December 2020. The compensation for 170 mu land, 13 million yuan, has been paid off to APs in Sep 2019. Ankang subproject was proposed to ADB for financing in the last week of November 2019. So land acquisition and compensation was conducted not for ADB financing.

1 To construct the second line of Yangpin- Ankang railway, Ministry of Land Resource approved the application to convert (7248.0045 mu) 483.2003 ha farmland into construction land on 29 September 2016, and the proposed 300 mu was included. 3

Introduction of the land for the Ankang Waterless Port Rail-Road-Air Multimodal Logistics Subproject

According to the FSR, 500 mu land is required for the railway goods yard component. Among them, 330 mu was acquired in 2016 and converted to state- owned land and belongs to to China Railway Xi'an Group Co., Ltd., and the remaining 170 mu was acquired in 2019 and it’s state-owned land.

Hengkou demonstration area natural resources bureau Ankang Hengkou Demonstration Zone Investment & DEVT CORP

24 March 2020

Figure 1: Land Description Letter for Railway Freight Yard Area

8. Component 2: Storage and agricultural trade centre component. The 300 mu proposed for the project is originally within the scope of the 750.50 mu of the Hengkou Industry Park Phase II. Land acquisition and conversion of collective land to state-owned construction land of the 755.50 mu for Hengkou Industry Park Phase II was approved in December 2015 by the Shaanxi Provincial Government. The development of the Hengkou Industry Park Phase II is a government project. Land acquisition was not done in anticipation of any ADB-financing.

9. Of the 170 households affected within the 300 mu allocated for the project, only 35 households have been compensated in August-September 2018 for the 25.627 mu amounting to 1.92 million yuan. According to the confirmation from local government and PIE, the remaining 274.373 mu where 135 households are affected will be paid by December 2020. The compensation amount is 18 million yuan.

2.4 Resettlement Due Diligence Review Of The Proposed Project Sites

10. In December 2019, the Resettlement Due Diligence Review was conducted for the 2 components. The due diligence review methods including interviewing, consulting meeting and questionnaire survey.

2.4.1 Impacts

11. According to the field survey, 300 mu of land for the storage and agricultural trade logistics center component belonged to Anmin Village, Hengkou Town. Land acquisition in Anmin Village affected 170 households, 644 APs, including 306 female Aps.

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12. The 500 mu of land for the railway freight yard component included 226 mu of paddy fields in Santiaoling Village, 58 mu of paddy fields in Dongba Community, and 216 mu of paddy fields in Gaojian Village. The land acquisition in Santiaoling Village affected 132 households, the land acquisition in Gaojian Village affected 131 households, and affected 77 households in Dongba community. Of these, 851 were women and there were no ethnic minorities. Details shown in Table 2-1.

13. No house demolition impacts were induced, which is confirmed by the PIU.

Table 2-1: Collective Land Acquisition Impacts Component Land acquisition Present impact Affected Land Land acquisition Affected Affected Of which villages time (mu) households people women nature paddy fields storage and agricultural trade Anmmin Collective June 2018 300 170 644 306 centre

Subtotal 300 170 644 306 Railway goods yard Santiaoling 110 62 211 100 component Collective 2018~2019

Gaojian 60 49 175 79 Subtotal 170 111 386 179 Dongba 58 77 256 123 community State- 2015~September Santiaoling owned 2016 116 70 237 108

Gaojian 156 82 291 135 Subtotal 330 229 784 366 Total of Railway goods yard component 500 340 1170 545 Total 800 510 1814 851

2.4.2 Land acquisition process

Railway goods yard component.

14. The 330 mu of land belonging to the China Railway Xi'an Bureau, which is part of the land used for the second line of Yangpin- Ankang railway (Hanbin Section) project. This land was reported to the Shaanxi Provincial Government for approval in December 2015, and was acquired as state-owned land in September 2016. The land approval and one report and four plans were presented as annex 1. According to the statistical data of the finance department of Hengkou Demonstration Zone, the land used for the second-line project of Yang'an involving Hengkou 5 completed the land acquisition compensation payment in September 2016, with a total payment of CNY 27.46 million. There is no remaining issue.

15. For the remaining 170 mu land, CNY 13 million compensation based on table 2 was paid to the Santiaoling and Gaojian Village by September 2019. All payments were made to the affected 111 households in accordance with Notice of Unified Annual Output and Compensation for Land Acquisition in Shaanxi Province (2018, effective on 1 January 2019), and that there is no remaining issue. Related receipts of compensation are presented in annex 2.

Storage and agricultural trade center component

16. Land Reserve Centre of Hengkou Demonstration Area signed land acquisition agreement with Anmin village on January 4, 2018. The agreement is presented as Annex 3.

17. The compensation standard for land acquisition is implemented in accordance with Ankang’s local land acquisition policy and Notice of Unified Annual Output and Compensation for Land Acquisition in Shaanxi Province (2018, effective on 1 January 2019)2. The compensation rate for paddy land is CNY 60,000 per mu, and ground attachments shall be implemented in accordance with the provisions of the document.

Table 3: Compensation rates for land acquisition Unit Compensation (land compensation fee + resettlement subsidy) Green crops Cat. Paddy filed Yuan/mu 60,000 800 (dry land) 1,000 (paddy land) AAOV 1641 Times of AAOV 36.56

17. The compensation progress is listed in table 4, which is confirmed by the PIU and natural resources bureau.

Table 4: Progress of Compensation payment Component Land acquisition Present Affected Land acquisition impact Compensation Payment Land villages time (mu) (yuan) time nature paddy fields Land 1.92 million for 25.627 acquisition of mu of Anmin have the 300 mu been paid to the Aug-Sep Anmmin Collective June 2018 300 land for the affected 35 HHs, and 2018 storage and payment of remaining 1.8 million yuan for

2 PRC’s revised land law requires to update the compensation each 3 years, so this policy will be effective from 2019 to 2021.

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Component Land acquisition Present Affected Land acquisition impact Compensation Payment Land villages time (mu) (yuan) time nature paddy fields agricultural 274.373 mu is trade center pending for the remaining 135 HHs.

Subtotal 300 Railway goods yard Santiaoling 110 component Collective 2018~2019 13 million yuan Jan-Sep 2019 Gaojian 60 Subtotal 170 Dongba 58 community State- 2015~September Santiaoling owned 2016 116 27.46 million yuan 2016

Gaojian 156 Subtotal 330 Total of Railway goods yard component 500 Total 800

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2.4.3 Resettlement measures for land-expropriated farmers

1. Endowment insurance for landless farmers

18. According to the provisions of Shaanxi Human Resources and Social Security Bureau [2011] No. 149 and Hanbin Governmental Office issued [2016] No. 94, the management committee of Ankang Hengkou Demonstration Zone paid social insurance for the land- expropriated farmers of the affected households within the project land. The commitment letter of social insurance is listed in appendix 5.

19. For eligible land-expropriated farmers, when they participate in basic pension insurance for enterprise employees as flexible employees, they will be given a subsidy of 1,200 yuan per year; For basic endowment insurance, when the man older than 60 years old and the female older than 55 years old, an additional 100 yuan / month old-age pension will be issued to them on the basis of the endowment insurance payment. Implementation of endowment insurance will be monitored by external monitor and presented in the semi-annual monitoring report.

2. Employment, training

20. In 2019, free employment and training activities were launched in the Hengkou Demonstration Area. The two activities attracted 60 interested households to participate and 45 were hired. Details shown in following table.

Table 2-2: Employment and Resettlement

Training theme / The number The Host Serial Sources of Time Place employment Organizer of number training number funds placement participants of female funds theme Office of the Office of the Leading Leading Group Group for the for the Ambeis Promotion of Promotion of Plush toy 5 May i plush the Plush Toy the Plush Toy 1 making 50 41 thousan 2019 toy Project in the Project in the factory training Hengkou d Hengkou Demonstratio Demonstration n Area (pilot Area (pilot site) site) Office of the Office of the Leading Leading Group Group for the for the Ambeis Promotion of Promotion of Octob i plush Plush Toy the Plush Toy 10 the Plush Toy 2 er Talent 103 76 thousan toy Project in the Project in the 2019 Exchange d factory Hengkou Hengkou Demonstratio Demonstration n Area (pilot Area (pilot site) site)

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Figure 2: Employment and training activities site

21. The following proposed livelihood restoration activities will continue to be implemented by local government during project implementation:

1）Training arrangements

22. Trainings are held every March and September each year which is free for all affected households. These trainings are mainly on agricultural technical, vocational training and technical training (e.g. domestic work, handicrafts production, etc.). The program targets an estimated number of trainees is over 400, of whom 240 are women every year.

2）Employment arrangements

23. Job fairs: There are 2 large and medium-sized job fairs to be held every year. Many local enterprises, including Anbeth Plush Toy Co., Ltd, Mengge Toy Co., Ltd, Hengan Toy Factory, Huian Toy Factory and other local enterprises will participate it. It is expected more than 130 APs can be employed. Among which, more than 80 are females and about 10 are venerable groups.

3) Employment opportunities provided to the APs generated by this project

24. A total of 48 non-technical working opportunities are planned to provide to APs, including 2 doorman, 20 handymen, 2 warehouse keepers, 4 cooks (women), and 20 cleaners (women).

4) Special measures for vulnerable groups

25. During implementation of income restoration, if any vulnerable groups are identified by village committees and local government agencies, special supporting measures will be provided to them, which include: • Priority access to non-technical working opportunities for affected vulnerable groups. • Priority access to vulnerable groups at the job fairs. • If the vulnerable groups are eligible for local minimum living guarantee system, PIE will assist them to submit the application to the local government.

2.5 Information Disclosure and Grievance Redress Mechanism

26. According to national laws and local government regulations, before land acquisition, the relevant departments of Hengkou Demonstration Zone issued a notice of land acquisition. During 9

December 2018, the management committee of the Hengkou Demonstration Zone and the affected village committees held a villagers' congress, and the village, group, and villager representatives agreed to the land acquisition compensation and resettlement plan on the advance notice. After that, the management committee of Hengkou Demonstration Zone and the affected village groups measured the land together and signed a compensation agreement for land acquisition after consulting with the affected people. The photo of the consultation is at Annex 4.

27. Hengkou Demonstration Zone confirmed the land acquisition notice have been issued before land acquisition. During land acquisition, the staff of the acquisition agency informed the affected households of the way to appeal. Affected persons can appeal through the internet, phone or petition department or other ways.

28. According to the introduction from the relevant departments of the Management Committee of Hengkou Demonstration Zone, the main complains up to now mainly is compensation haven’t been paid to the APs.

2.5 Investigation on the Affected Villages and Towns

2.5.1 Socio-economic Situation of the Affected Villages and Towns

29. Anmin Village, Santiaoling Village, Dongba Community, and Gaojian Village of Hengkou Town are affected by the project. According to the investigation, the female population of the seven villages accounts for 44.0%, the labor force accounts for 64.5%, the per capita cultivated land is 0.45 mu. The income resource of the villagers is mainly from industry avocation and the income from agriculture is relatively less.

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Table 2-3 Statistical survey of the socio-economic situation of the village

Poor households Low-income family Per capita Cultivated Total Total Female Labor net area households population population force Total Total Female Total Total Female income Village / households population population households population population Community of farmers CNY per mu Household Person Person Person Household Person Person Household Person Person year

Gaojian 75 334 1196 616 705 11 30 14 7 14 6 13000

Santiaoling 1570 520 1849 739 1294 23 65 30 10 26 13 11000

Anmin 780 386 1308 635 892 12 25 9 14 34 16 12274 Dongba 387 549 1869 747 1121 24 74 35 8 16 8 15817 Total 2812 1789 6222 2737 4012 70 194 88 39 90 43 13099

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2.5.2 Sampling survey of socio-economic conditions of households affected by land acquisition

30. In March 2020, a sampling survey was conducted on the affected households in 4 villages (Gaojian, Santiaoling, Anmin, Dongba) affected by both components. Due to the COVID-19 situation at the time of survey, sampling surveys can only be carried out on a small scale, so sampling rate is only 10%. The total sample size was 50 households with 187 persons, including 92 females. This is the income and expenditure of 50 affected households before and after acquisition.

Table 2-4:Statistics of household income and expenditure of sample households in 2018 before the acquisition Household income (CNY per Per capita income (CNY Category Proportion year) per year) Ⅰ. Annual income of family Plantation income 8.4% 3628 970 Farming income 0.3% 140 37 Industry and sideline income 81.7% 35300 9439 Other income 9.6% 4150 1110 Subtotal 100.0% 43218 11556 Expenditure of family (CNY / Per capita expenditure Ⅱ .Annual expenditure of family year) (CNY / year) Production cost 4.7% 1610 430 Life consumption 70.2% 24250 6484 Other 25.1% 8680 2321 Subtotal 100.0% 34540 9235

Table 2-5: Statistics of Household Income and Expenditure of Sample Households in 2019 after acquisition

Category Proportion Household income (CNY Per capita income (CNY per per year) year)

Ⅰ. Annual income of family

Plantation income 6.6% 2980 797 Farming income 0.3% 140 37

Industry and sideline income 82.6% 37120 9925 Other income 10.4% 4690 1254 Subtotal 100.0% 44930 12013 Expenditure of family (CNY Per capita expenditure (CNY / Ⅱ. Annual expenditure of family / year) year) Production cost 3.4% 1240 332 Life consumption 72.0% 25940 6936 Others 24.6% 8864 2370 Subtotal 100.0% 36044 9637

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31. According to the statistics in the table above, the average household income in 2019 after the acquisition is CNY 44,930 per household, which is CNY 1,712 per household higher than that in 2018 before the acquisition. Although the income of the plantation industry decreased by CNY 648 per household, the income from industry and sideline industries and other incomes increased by CNY 1,820 per household and CNY 540 per household respectively. The rise of industry and sideline industries is related to the increase in employment and business opportunities. Other income increases are mainly reflected in property income.

32. The household expenditure in 2019 after the acquisition is CNY 36,044 per household, which increases CNY 1,504 than that in 2018 before the acquisition. The life consumption of family has increased a lot due to the price increase in 2019, which is about CNY 1,690 per household.

33. The small proportion of land loss and the rapid development of Hengkou Demonstration Zone have increased employment and business opportunities, so the overall income of affected households increased slightly in 2019. On February 22, 2019, the Hengkou Demonstration Zone held the 2019 Spring Action for Employment of land-loss farmers. More than 50 foreign and local companies participated in the recruitment, providing more than 2,000 jobs opportunities. More than 200 farmers have signed employment intentions with employers. More than 200 farmers signed employment intentions with employers.

Figure 3: Job Fair

2.6 Public consultation

34. In December 2019 and March 2020, a public consultation activity was conducted in Hengkou Town in which the project is located. The number of consultations participants was 40, including 15 women and 4 poor households. The main consultation results are as follows: 1. All the villagers participating in the consultation are clear about the compensation standards for land acquisition. 2.The villagers participating in the consultation did not complain about the resettlement work, and generally believed that the resettlement compensation and resettlement were implemented according to policies. 13

3. The compensation shall be paid in a timely way. 4. Some villagers hope to get some job opportunities during the construction and operation of the project. PMO staff responded: during the construction and operation of the project, the construction unit or project management unit will publicly release some recruitment notices, and villagers who are interested can pay attention to these notices.

During the resettlement process, the impact survey results are confirmed with the APs and the resettlement policy was explained to the APs. Please see the picture below.

Figure 4: Impact confirmation with APs

35. And during the participation meeting, Hengkou Natural Resources Bureau agreed to pay off the remaining 18 million yuan by the end of 2020.

2. Questionnaire survey on satisfaction of affected households

36. In March 2020, due to the COVID-19 situation, investigators could use the WeChat mini- program "Investigate Star" to design an online questionnaire when they could not convene a people in the affected villages to make questionnaire survey, sending questionnaire links to village cadres on WeChat. Then village cadres sent them to the affected households to fill. A total of 100 questionnaires were collected through the Internet. The results of the questionnaire are as follows:

Table 2-6: Statistical results of the public attitude survey Opinion selection ratio (%) Questions Opinion options 1 2 3 4

1.1 For Land acquisition 1.Satisfied 2. Relatively satisfied 3. No opinion policy and compensation 54 44 2 0 4. Dissatisfied standards: 1.2 Distribution of compensation for land 1.Satisfied 2. Relatively satisfied 3. No opinion 53 43 4 0 4. Dissatisfied acquisition: 1.3 Measures to support / recover livelihoods and 1.Satisfied 2. Relatively satisfied 3. No opinion 57 40 3 0 income after land 4. Dissatisfied acquisition： 1.4 For current production 1.Satisfied 2. Relatively satisfied 3. No opinion 53 40 7 0 and life： 4. Dissatisfied 2 、 Do you know this 1.Yes 2.No 100 0 \ \ project？

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Opinion selection ratio (%) Questions Opinion options 1 2 3 4 2.1 If so, how did you know about this project？ 1. Media 2. Announcement 3. Staff propaganda 12 2 80 6 4.Discussion 、 3 What do you think is the 1. Lack of investment 2. Lagging infrastructure main problem of local construction 3. Lack of natural resources 4. 80 15 5 0 economic development? Others

4 、 What is your attitude towards the project 1. Support 2. Oppose 3. It doesn't matter 98 0 2 construction? \

、 5 Do you think this project is 1. It is beneficial 2. It has a certain promotion 74 25 1 0 conducive to promoting local effect 3. It has no effect 4. It is not favorable economic development? 6 、 Do you think the 1. improve 2. have a certain promotion effect 3. construction of this project will 39 60 1 0 affect family living standards? no effect 4. decrease

、 7 In your opinion, the impact 1. Promoting effect 2. Some effect 3. No effect 4. of this project on local poverty 92 7 1 0 Unfavorable alleviation work is: 8、In your opinion, the impact 1. Improve 2. Somewhat works 3. No effect 4. of project construction on 96 4 0 0 local logistics and Deteriorating the environment transportation is: 9 、 Do you think that the employment rate of this 1. Increase 2. A little effect 3. No effect 4. 62 27 1 0 project for local residents will Decrease be: 10 、 After the project is implemented, are you or your 1. willing 2. unwilling 3. depending on the family willing to participate in 96 0 4 \ situation the project construction activities? Noise, water quality, air pollution 47 \ \ \ Poor management causes safety incidents 22 \ \ \ 11、What do you think are the Decline in living standards 5 \ \ \ potential social stability risk Conflict of interest between migrants and local factors after the project 6 \ \ \ implementation (optional residents three) Social policy is unreasonable 12 \ \ \ Disturbing people 31 \ \ \ Affect traffic 15 \ \ \

31. According to the above statistical results, for the links in the process of land acquisition, the respondents considered that they were satisfied and relatively satisfied accounted for more than 90%. There were no dissatisfied affected households, and individual affected households held an indifferent attitude.

32. There are 98% of the affected households support the construction of the project, and 2% of the affected households are indifferent. There are no objections to the construction of this project. 15

37. The opinions and suggestions of the respondents include: the project will be implemented as soon as possible, providing priority employment opportunities for local villagers, and paying attention to environmental protection, standardize construction, and so on.

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3 Conclusions and Corrective Action Plans

3.1 Conclusions

38. Component 1: For the 500 mu state-owned land required for railway goods yard component, collective land acquisition was conducted which was not in anticipation of ADB financing. Compensation has been paid and there is no remaining issue, which is confirmed by the natural resources bureau and PIE.

39. Component 2: For the 300 mu for storage and agricultural trade center component, compensation for 25.627 mu was paid to 35 HHs of Anmin Village in Aug-Sep 2018, and the remaining CNY 18 million compensation has not been paid to the 135 HHs. Some households who have not yet availed of any livelihood government programs, and if there is delay in providing compensation and other income restoration measures, this may affect their livelihood. The 300 mu proposed land for the project is originally within the scope of the 750.50 mu of the Hengkou Industry Park Phase II. Land acquisition and conversion of collective land to state-owned construction land of the 755.50 mu was approved in December 2015 by the Shaanxi Provincial Government. The development of the Hengkou Industry Park Phase II is a government project. Land acquisition was not done in anticipation of any ADB-financing.

3.2 Corrective Action Plan

40. A corrective action plan (CAP) with time-bound actions and budget provisions is prepared and endorsed by the local PIE. The PMO/PIE will submit semi-annual monitoring reports to ADB every July (Jan-Jul monitoring period) and January (June-December monitoring period).

41. It was further agreed that an external monitor will be engaged by the provincial PMO to monitor and verify the corrective actions and submit semi-annual monitoring reports to PIE and ADB every July (Jan-Jul monitoring period) and January (June-December monitoring period). A resettlement completion report will also be prepared by the external monitoring agency which is expected to be submitted within 6 months upon completion of resettlement and livelihood activities.

17 sn Outstanding Corrective Action Timeframe Budget Implementation Reporting Issues unit 1 Pending CNY 18 million yuan By Dec According to Hengkou Natural Semi-annual compensation for 274.373 mu land 2020 the Resources Bureau resettlement payment for the acquisition agreement monitoring remaining 175 compensation for report to be AHs storage and submitted to agricultural trade ADB center need to be External paid to the village monitoring agency Semi-annual committee/APs (175 to verify and External households). monitor monitoring implementation report

2 Implement Continue 2020 to Project Provincial PMO Semi-annual livelihood implementing the Dec. 2021 budget (Foreign capital resettlement activities of APs livelihood program for utilization center of monitoring AHs and include Shanxi Provincial report to be those who have not Transportation submitted to yet availed of any Department) ADB livelihood government External programs. monitoring agency Semi-annual to verify and External monitor monitoring implementation report and assess outcome of livelihood program 3 Address any project-level GRM By 2020 Government Provincial PMO Semi-annual concerns or will be established budget (Foreign capital resettlement complaints utilization center of monitoring raised by AHs Shanxi Provincial report to be Transportation submitted to Department) ADB

External monitoring agency Semi-annual to assess External effectiveness of monitoring GRM process report 4 Pending Copy of Land use By Not China Railway Copy to be documentation right certificate to be December applicable Xi'an Group Co., submitted to shared to ADB 2020 Ltd. ADB project team Hengkou Industry Park

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Annex 1: The land approval 1. The railway goods yard area

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2. Storage and agricultural trade center

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Annex 2: Receipts of Compensation

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Annex 3: Land Acquisition Agreement

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Annex 4: Consultation meeting before land acquisition

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Annex 5: Social Insurance Fund Commitment Letter