RP1362 rev

Public Disclosure Authorized World Bank Financed Ma'anshan Cihu River Basin Improvement Project

Ma'anshan Cihu River Basin Improvement Project Resettlement Action Plan

Public Disclosure Authorized

Public Disclosure Authorized

Management Office of the World Bank Financed Ma'anshan Cihu River Basin Improvement Project

December 2012 Public Disclosure Authorized

Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project Foreword I. Purpose of preparing this resettlement action plan 1 The resettlement action plan (RAP) is prepared in accordance with the applicable laws of the People’s Republic of China and local regulations and a series of provisions in the Bank Operational Policy OP4.12 on Involuntary Resettlement for the purpose of “developing an action plan for resettlement and restoration for the people affected by the project, so that they benefit from the project, their standard of living is improved or at least restored after the completion of the project”.

II. Definitions of terms Displaced persons 2 Based on the criteria for eligibility for compensation, “Displaced Persons” may be classified in one of the following three groups: a) those who have formal legal rights to land (including customary and traditional rights recognized under the laws of the country); b) those who do not have formal legal rights to land at the time the census begins but have a claim to such land or assets—provided that such claims are recognized under the laws of the country or become recognized through a process identified in the Resettlement Plan; and c) those who have no recognizable legal right or claim to the land they are occupying. 3 Persons covered under paragraphs 2(a) and (b) are provided compensation for the land they lose, and other assistance. Persons covered under paragraph 2(c) are provided resettlement assistance in lieu of compensation for the land they occupy, and other assistance, as necessary, to achieve the objective set out in this policy, if they occupy the project areas prior to a cut-off date1 established by the borrower and acceptable to the World Bank. Persons who encroach on the area after the cut-off date are not entitled to compensation or any other form of resettlement assistance. All persons included in paragraph 2(a), (b), or (c) are provided compensation for loss of assets other than land.

Compensation and resettlement measures 4 To address the following impacts of the involuntary taking of land: (i) displacement or loss of shelter; (ii) lost of assets or access to assets; or (iii) loss of income sources or means of livelihood, whether or not the APs must move to another location, a Resettlement Plan or a resettlement Policy Framework shall be prepared to cover the following: (a) The Resettlement Plan or resettlement Policy Framework includes measures to ensure that the displaced persons are: (i) informed about their options and rights pertaining to resettlement; (ii) consulted on, offered choices among, and provided with technically and economically feasible resettlement alternatives; and (iii) provided prompt and effective compensation at full replacement cost2, for losses of assets attributable directly to the project. (b) If the impacts include physical displacement, the Resettlement Plan or resettlement Policy Framework includes measures to ensure that the displaced persons are: (i) provided assistance (such as moving allowances) during displacement; and (ii) provided with residential housing, or housing sites, or, as required, agricultural sites for which a combination of productive potential, locational advantages, and other factors is at least equivalent to the advantages of the old site.

1 Normally, this cut-off date is the date the census begins. The cut-off date could also be the date the project areas was delineated, prior to the census, provided that there has been an effective public dissemination of information on the area delineated, and systematic and continuous dissemination subsequent to the delineation to prevent further population influx. 2 "Replacement cost" is the method of valuation of assets that helps determine the amount sufficient to replace lost assets and cover transaction costs. In applying this method of valuation, depreciation of structures and assets should not be taken into account. 1 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project (c) Where necessary to achieve the objective of the policy, the Resettlement Plan or resettlement Policy Framework also includes measures to ensure that displaced persons are: (i) offered support after displacement, for a transition period, based on a reasonable estimate of the time likely to be needed to restore their livelihood and standards of living; (ii) provided with development assistance in addition to compensation measures described in paragraph 4(a)(iii), such as land preparation, credit facilities, training, or job opportunities. 5 Cut-off date: means the date of publication of the announcement of land acquisition and property demolition in this project. After this date, the displaced persons shall not build, rebuild or expand their properties; shall not change the uses of their properties and land; shall not lease their land, lease, sell or purchase their properties; and any person that moves in after this date shall not qualify as a displaced person.

2 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project Contents

1 OVERVIEW OF THE PROJECT ...... 1

1.1 INTRODUCTION ...... 1 1.2 ESTIMATED BENEFITS ...... 1 1.3 PROGRESS OF PROJECT PREPARATION AND RESETTLEMENT ...... 1 1.4 KEY RESETTLEMENT IMPACTS ...... 1 1.5 MEASURES TO REDUCE RESETTLEMENT ...... 2 1.6 IDENTIFICATION OF RELATED PROJECTS ...... 2 2 IMPACTS OF THE PROJECT ...... 3

2.1 PROJECT IMPACT SURVEY ...... 3 2.2 AFFECTED AREA ...... 3 2.3 IMPACTS OF THE PROJECT ...... 4 2.3.1 Affected Population ...... 4 2.3.2 Permanent Acquisition of Collective Land ...... 4 2.3.3 Permanent Occupation of State-owned Land ...... 5 2.3.4 Temporary Land Occupation ...... 6 2.3.5 Young Crops and Attachments ...... 6 2.3.6 Vulnerable Groups ...... 6 2.4 GENDER ANALYSIS ...... 6 2.4.1 Analysis of women in Project Area ...... 6 2.4.2 Analysis of resettlement impacts on women ...... 7 3 SOCIOECONOMIC PROFILE OF THE PROJECT AREA ...... 9

3.1 SOCIOECONOMIC PROFILE OF THE AFFECTED PROVINCE, MUNICIPALITY AND DISTRICTS ...... 9 3.2 SOCIOECONOMIC PROFILE OF THE AFFECTED TOWNSHIPS ...... 10 3.3 SOCIOECONOMIC PROFILE OF THE AFFECTED VILLAGES ...... 11 3.4 SOCIOECONOMIC PROFILE OF THE AHS ...... 12 3.4.1 Ethnic and Gender Analysis ...... 12 3.4.2 Age Structure ...... 12 3.4.3 Educational Level ...... 13 3.4.4 Productive Resources ...... 13 3.4.5 Living Environment ...... 14 3.4.6 Annual Household Income and Expenditure ...... 14 4 LEGAL AND POLICY FRAMEWORK ...... 15

4.1 POLICY FRAMEWORK...... 15 4.2 KEY PROVISIONS OF LAWS AND POLICIES ON RESETTLEMENT ...... 16 4.3 KEY DIFFERENCES BETWEEN BANK POLICIES AND PRC LAWS ...... 25 4.4 RESETTLEMENT POLICIES OF THE PROJECT ...... 26 4.4.1 Policy on Compensation for Collective Land Acquisition and Labor Resettlement ...... 26 4.4.2 Policy on Permanent Occupation of State-owned Land ...... 27 4.4.3 Compensation Policy for Vulnerable Groups ...... 27 4.4.4 Supporting Measures for Women ...... 27 4.4.5 Compensation Policy for Young Crops and Ground Attachments ...... 27 5 COMPENSATION RATES ...... 28

5.1 COMPENSATION RATES FOR ACQUISITION OF RURAL COLLECTIVE LAND ...... 28 5.2 COMPENSATION RATES FOR PERMANENT OCCUPATION OF STATE-OWNED LAND ...... 28

1 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project 5.3 COMPENSATION RATES FOR YOUNG CROPS AND GROUND ATTACHMENTS ...... 28 5.4 OTHER COSTS ...... 29 6 PRODUCTION AND LIVELIHOOD RESTORATION PROGRAMS FOR APS ...... 30

6.1 OBJECTIVE OF RESETTLEMENT ...... 30 6.2 PRINCIPLES FOR RESETTLEMENT ...... 30 6.3 PERMANENT ACQUISITION OF COLLECTIVE LAND ...... 30 6.3.1 Impact Analysis ...... 30 6.3.2 Resettlement Program ...... 34 6.3.3 Resettlement and Restoration Programs of Key Affected Villages ...... 36 6.4 RESTORATION PROGRAM FOR AFFECTED VULNERABLE GROUPS ...... 38 6.5 PROTECTION OF WOMEN’S RIGHTS AND INTERESTS ...... 38 6.6 RESTORATION PROGRAM FOR GROUND ATTACHMENTS ...... 39 7 ORGANIZATIONAL STRUCTURE ...... 40

7.1 ORGANIZATIONAL STRUCTURE ...... 40 7.1.1 Organizational Setup ...... 40 7.1.2 Main Responsibilities ...... 40 7.2 STAFFING ...... 42 7.3 MEASURES TO STRENGTHEN INSTITUTIONAL CAPACITY ...... 42 8 RESETTLEMENT BUDGET AND FUNDING SOURCES ...... 43

8.1 BUDGET ...... 43 8.2 ANNUAL INVESTMENT PLAN ...... 43 8.3 RESETTLEMENT FUNDING SOURCES ...... 43 8.4 MANAGEMENT AND DISBURSEMENT OF RESETTLEMENT FUNDS ...... 46 8.4.1 Fund Flow ...... 46 8.4.2 Management and Disbursement ...... 47 9 PUBLIC PARTICIPATION AND CONSULTATION, AND GRIEVANCE REDRESS ...... 48

9.1 PUBLIC PARTICIPATION STRATEGY...... 48 9.2 PUBLIC PARTICIPATION PROCESS AND POLICY DISCLOSURE ...... 48 9.3 APPEAL HANDLING PROCEDURE ...... 49 10 IMPLEMENTATION SCHEDULE ...... 51

10.1 PRINCIPLES FOR PROGRESS COORDINATION BETWEEN RESETTLEMENT AND PROJECT CONSTRUCTION .... 51 10.2 SCHEDULE FOR KEY RESETTLEMENT TASKS ...... 51 10.2.1 Principles for Schedule Preparation ...... 51 10.2.2 Resettlement Schedule ...... 51 11 MONITORING AND EVALUATION ARRANGEMENTS ...... 53

11.1 INTERNAL MONITORING ...... 53 11.1.1 Implementation Procedure ...... 53 11.1.2 Scope of Monitoring ...... 53 11.1.3 Internal Monitoring Reporting ...... 53 11.2 INDEPENDENT EXTERNAL MONITORING ...... 53 11.2.1 Independent Monitoring Agency ...... 53 11.2.2 Monitoring Indicators ...... 54 11.2.3 Post-evaluation ...... 54 12 ENTITLEMENT MATRIX ...... 56

APPENDIXES ...... 58

2 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project APPENDIX 1 DUE DILIGENCE REPORT OF THE PROJECT ...... 58

3 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project List of Tables

TABLE 1-1 SUMMARY OF CONSTRUCTION AND RESETTLEMENT IMPACTS ...... 1 TABLE 1-2 SUMMARY OF KEY RESETTLEMENT IMPACTS ...... 2 TABLE 2-1 SURVEY METHODS AND KEY FINDINGS ...... 3 TABLE 2-2 SUMMARY OF THE PROJECT AREA ...... 3 TABLE 2-3 SUMMARY OF THE AFFECTED POPULATION ...... 4 TABLE 2-4 SUMMARY OF PERMANENTLY ACQUIRED COLLECTIVE LAND ...... 4 TABLE 2-5 SUMMARY OF PERMANENTLY OCCUPIED STATE-OWNED LAND ...... 5 TABLE 2-6 SUMMARY OF AFFECTED ATTACHMENTS ...... 6 TABLE 2-7 SUMMARY OF AFFECTED VULNERABLE GROUPS ...... 6 TABLE 2-8 ANALYSIS OF WOMEN IN PROJECT AREA ...... 7 TABLE 2-9 ANALYSIS OF RESETTLEMENT IMPACTS ON WOMEN ...... 7 TABLE 3-1 KEY ECONOMIC INDICATORS OF THE AFFECTED PROVINCE, MUNICIPALITY AND DISTRICTS ...... 10 TABLE 3-2 KEY ECONOMIC INDICATORS OF THE AFFECTED TOWNSHIPS ...... 11 TABLE 3-3 KEY ECONOMIC INDICATORS OF THE AFFECTED VILLAGES ...... 12 TABLE 3-4 STATISTICS OF THE AFFECTED POPULATION ...... 12 TABLE 3-5 HOUSING CONDITIONS OF THE AHS ...... 14 TABLE 3-6 ANNUAL INCOME AND EXPENDITURE OF THE AHS ...... 14 TABLE 4-1 SUMMARY OF APPLICABLE POLICIES ...... 15 TABLE 5-1 COMPOSITE LOCATION-BASED LAND PRICES FOR LA ...... 28 TABLE 5-2 COMPENSATION RATES FOR GROUND ATTACHMENTS ...... 28 TABLE 5-3 RATES OF OTHER COSTS ...... 29 TABLE 6-1 SUMMARY OF LA IMPACTS ...... 31 TABLE 6-2 CLASSIFICATION OF AFFECTED VILLAGES ...... 31 TABLE 6-3 SUMMARY OF ACQUIRED CULTIVATED LAND ...... 32 TABLE 6-4 RESETTLEMENT PROGRAM FOR COLLECTIVE LA ...... 35 TABLE 6-5 CONTRIBUTION AND BENEFIT RATES OF ENDOWMENT INSURANCE FOR LEFS ...... 35 TABLE 6-6 INCOME RESTORATION PROGRAM FOR CROP CULTIVATION OF SONGMUSHAN GROUP ...... 36 TABLE 6-5 EXPECTED INCOME RESTORATION OF SONGMUSHAN GROUP ...... 37 TABLE 6-6 INCOME RESTORATION PROGRAM FOR CROP CULTIVATION OF XIAXI AND ZHONGXI GROUPS ...... 37 TABLE 6-7 EXPECTED INCOME RESTORATION OF XIAXI AND ZHONGXI GROUPS ...... 38 TABLE 6-10 POSSIBLE RISKS FOR WOMEN AND PROPOSED MITIGATION MEASURES ...... 38 TABLE 7-1 FULL-TIME STAFF OF RESETTLEMENT AGENCIES...... 42 TABLE 7-2 OVERALL RESETTLEMENT TRAINING PROGRAM ...... 42 TABLE 8-1 ANNUAL INVESTMENT PLAN ...... 43 TABLE 8-2 RESETTLEMENT BUDGET ...... 44 TABLE 9-1 PUBLIC PARTICIPATION PROCESS OF THE APS ...... 48 TABLE 9-2 POLICY DISCLOSURE PROCESS ...... 48 TABLE 10-1 RESETTLEMENT SCHEDULE ...... 51

List of Figures

FIGURE 3-1 AGE STRUCTURE OF SAMPLE POPULATION ...... 13 FIGURE 3-2 EDUCATIONAL LEVEL DISTRIBUTION OF SAMPLE POPULATION ...... 13 FIGURE 7-1 RESETTLEMENT ORGANIZATIONAL STRUCTURE ...... 40 FIGURE 8-1 FUND FLOWCHART ...... 46 FIGURE 9-1 GRIEVANCE REDRESS FLOWCHART ...... 49

1 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project

ABBREVIATIONS

AH - Affected Household AP - Affected Person DMS - Detailed Measurement Survey FGD - Focus Group Discussion HD - House Demolition LA - Land Acquisition MPMO - Ma’anshan Project Management Office MWRB Ma’anshan Water Resources Bureau M&E - Monitoring and Evaluation PRC - People’s Republic of China RAP - Resettlement Action Plan RIB - Resettlement Information Booklet

Units

Currency unit = Yuan (RMB) 1.00 yuan = $0.15 1 hectare = 15 mu

I Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project 1 Overview of the Project

1.1 Introduction

The Cihu River is the longest branch of the Yangtze River in Ma’anshan Municipality, running through the whole east part of the municipality from south to north. With the implementation of the municipal strategy of “eastward and southward expansion”, the Cihu River has become a river running through the urban area, performing such important functions as flood drainage, landscaping and sightseening. However, the Cihu River has potential risks such as insufficient height of flood banks, dike seepage and leakage, poor ecology, and serious soil erosion, and cannot meet the requirements for river facilities, flood discharge capacity, water quality and natural ecology. For this purpose, the Ma’anshan Municipal Government proposed the Ma'anshan Cihu River Basin Improvement Project (hereinafter, the “Project”), and issued the Notice of the Ma’anshan Municipal Government on Issuing the Integrated Ecological Improvement Plan of the Cihu River Basin (MMG [2008] No.48) in 2008. The Cihu River originates from the Laomai Hill in the southeast hilly area and goes into the Yangtze River on the north piedmont of the Cimu Mountain, running through Xiangshan Town, Huoli Town and Cihu Xiang from east to northwest, with a full length of 26.1km and a basin area of 124.8 km2. The water level of the Cihu River system is controlled by the Yangtze River, and reverse flow into the Cihu River may occur in the flood season, threatening farmland, enterprises and urban areas on both sides of the Cihu River directly. In order to control pollutants in the Cihu River system, construct necessary infrastructure, improve the water quality of the Cihu River to further meet irrigation and landscaping requirements, restore the storage function of the Cihu River, and inhibit ecological damages on both sides effectively, the Ma’anshan Municipal Government applied for a loan for the Project with the World Bank. The Project consists of the following components: A. River rehabilitation (1) Upper Cihu River rehabilitation The upper Cihu River is from the source to East Ring Road (Mawu Expressway), about 13.1km, in which the segment in the planned downtown area is from Provincial Highway 313 to East Ring Road (Mawu Expressway), about 6.0km long. Most of the upper Cihu River is not embanked. (2) Lower Cihu River rehabilitation The lower Cihu River is from Linli Road to the river entrance, about 6.24km, in which the entrance-Tianran River segment is about 5.35km long and the Tianran River-Linli Road segment about 0.89km long. Most of the lower Cihu River area is a built-up area, and the bank line is mostly straight and does not need much adjustment. B. Branch water system rehabilitation Within the urban planning area, the branch water systems of the Cihu River include the Jiandanzha, Zhaoming, Xiaonanwei, Zhendong, Linli, Fengshou, Fengqiao, Nantang, Xiaohezha, Yangqiao, Xitang and Xiaohecha zones, with a total catchment area of 38.52km2. These natural urban water systems are an integral part of the urban storm drainage system together with storm pipes and storm drainage pumping stations. In recent years, with the acceleration of urbanization, the branch water systems have been occupied and filled seriously, reducing their peak clipping and storage function, resulting in unsmooth drainage and water logging. Therefore, the rehabilitation of the branch water systems is significant for reducing the scale of flood drainage pumping stations, saving capital investment and operating costs, and maintaining the urban ecological environment. This component includes dredging, obstacle removal and slope protection. B.1 Lijianwan River rehabilitation The Lijianwan River is the boundary river between Anhui and Jiangsu Provinces, and a branch of the Cihu River, and Cihu Hi-tech Development Zone is on the left side, with a left bank length of 1,772m, a bank top level of 9.61-10.38m and a bank top width of 1.6-4.5m. The left bank of the Lijianwan River (in Anhui Province) is thin and steep, and has not been designed and constructed systematically, while the right bank (in Jiangsu Province) has been improved. The left bank must be reinforced in the foundation because seepage and landslides are likely to occur. C. Construction of flood control pumping stations The Cihu River segment may be divided into 13 drainage zones with a flood drainage pumping station each. The low-lying land on both sides of the Cihu River is mostly farmland, and will be urbanized gradually; most of the existing drainage systems feature confluence of storm water and

1 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project sewage, and only a few feature separation of storm water and sewage. Currently, storm water and sewage in this area is drained through the Cihu River into the Yangtze River naturally or through pumping. In the Project, 5 flood control pumping stations in 5 drainage zones will be constructed, which are the Tongyi 2 pumping station in the Nantang zone, Jiandanzha pumping station in the Jiandanzha zone, Zhaoming pumping station in the Zhaoming zone, Xiaonanwei pumping station in the Xiaonanwei zone and the Tailai pumping station in the Zhendong zone. In which the Tongyi 2 pumping station is being constructed. The Project will be implemented by the Ma’anshan Water Resources Bureau (MWRB). See

2 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project Table 1-1.

1 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project

Table 1-1 Summary of Construction and Resettlement Impacts Implementing Component Scope of construction Geographic coverage Key resettlement impacts agency Mawu Expressway—Provincial Highway 313 segment channel, River Upper river rehabilitation Acquiring 445 mu of collective land 13,100m long, 20m wide MWRB rehabilitation Lower river rehabilitation Linli Road—River mouth channel, 6,300m long, 20m wide Acquiring 266.85 mu of collective land Tianmen Avenue—Xiaonanwei pumping station, about 1,086m Dianye Road stream Occupying 16.65 mu of state-owned land permanently long East stream of the Ningwu Railway Tianmen Avenue—Tianran River, about 1,642m long Acquiring 30 mu of collective land permanently North stream of the North Tianran Tianmen Avenue—Tailai pumping station, about 1,233m long Acquiring 85.9 mu of collective land permanently River Nantang River Tianmen Avenue—Cihu Street, about 1,304m long Acquiring 28.68 mu of collective land permanently Cross stream in Xindu Community Jiankang New Town—Caicun Ditch, about 1,169m long Occupying 9.10 mu of state-owned land permanently Wangbaitan water system Jiangdong Avenue—Cihu River, about 820m long Occupying 9.21 mu of state-owned land permanently Yangqiao stream water system Mapu Road—Wangbaitan, about 1,448m long Occupying 30.20 mu of state-owned land permanently Xitang water system Maxiang Railway—Cihu River, about 1,094m long Occupying 38.73 mu of state-owned land permanently Xiaohecha west stream Maxiang Railway—Cihu River, about 240m Occupying 4.5 mu of state-owned land permanently Xiaohecha central stream Huayuan Road—Cihu River, about 1,230m long Occupying 3.77 mu of state-owned land permanently 2 branches of the Xiaohecha east Yushan Road—Cihu River, about 1,600m long Occupying 24 mu of state-owned land permanently stream Branch water Acquiring 6 mu of collective land and 6 mu of state-owned land Qiaoshan ditch Geyang Road—Cihu River, about 664m long system permanently MWRB rehabilitation Geyang water system East Ring Road—Cihu River, about 539m long Acquiring 11.92 mu of collective land permanently Wudangang east stream Xiushan Road—Shanghu River, about 1,980m long Acquiring 60.54 mu of collective land permanently Acquiring 40.2 mu of collective land and 40.2 mu of state-owned Wudangang west stream Xiushan West 2nd Road—Shanghu River, about 2,120m long land permanently North stream on right bank of Taodian Road—Shanghu River, about 990m long Acquiring 26.64 mu of collective land permanently Shanghu River Tuanqishan Road—Fengshou pumping station, about 3,670m Acquiring 68.96 mu of collective land and 137.91 mu of Shanghu River long state-owned land permanently Fengshou south stream Mapu Road—Fengqiao pumping station, about 900m long Acquiring 12.85 mu of collective land permanently Qianjin stream East Ring Road—Fengqiao pumping station, about 1,410m long Acquiring 54.95 mu of collective land permanently Jiandan River Shengdiegeban Road—Lijianwan River, about 1,210m long Occupying 11.78 mu of state-owned land permanently Occupying 24.3 mu of state-owned land and 38.25 mu of Lakes and ponds Lakeshore in Anhui Province, about 3,320m long collective land permanently Yaochang pond Lakeshore, about 1,770m long Occupying 16.5 mu of state-owned land permanently Reinforcement of left bank of the About 1,700m long Occupying 63.75 mu of state-owned land permanently Lijianwan River

1 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project Implementing Component Scope of construction Geographic coverage Key resettlement impacts agency Nantang zone(Tongyi pumping Cihu Xiang Occupying 4.5 mu of state-owned land station 2) Sulfuric acid plant zone (Jiandanzha Cihu Hi-tech Development Zone Occupying 7.8 mu of state-owned construction land Construction of pumping station) flood control Zhaoming zone (Zhaoming pumping Zhaoming Community Occupying 4.7 mu of state-owned construction land MWRB pumping station) stations Xiaonanwei zone (Xiaonanwei Shuyi Village, Cihu Xiang Acquiring 4.1 mu of collective land pumping station) Zhendong zone (Tailai pumping Tailai Village, Cihu Xiang Acquiring 4.1 mu of collective land station)

2 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project

1.2 Estimated Benefits

(1) The Project will improve the flood protection standard of the Cihu River basin, reduce flood damages, and protect people’s lives and properties. (2) The Project will improve the ecological environment of the project area, and the urban appearance and image of Ma’anshan Municipality, create a beautiful living environment for residents, promote the development of tourism and other industries, and protect residents from river pollution. (3) The Project will promote the appreciation of nearby land resources, increase local and state fiscal revenue, and create job opportunities, thereby maintaining social stability. (4) The Project will alleviate flood drainage problems of the Cihu River basin effectively, improve the investment environment and promote urban economic development. Therefore, the Project aims to build Ma’anshan Municipality into a civil, hygienic city featuring beautiful landscape, flourishing economy, stable society and convenient life, and will have significant social and economic benefits.

1.3 Progress of Project Preparation and Resettlement

In order to drive project construction and implementation, and demonstrate the necessity and feasibility of the Project, the Management Office of the World Bank Financed Ma'anshan Cihu River Basin Improvement Project (hereinafter, MPMO) appointed Central and Southern China Municipal Engineering Design and Research Institute to prepare the Feasibility Study Report of the Project in September 2011. The first draft of the report was completed in June 2012. During June-July 2012, the survey team of Hohai University conducted a sampling socioeconomic survey and a detailed measurement survey (DMS) on the project area according to the Feasibility Study Report, covering household population, impacts of land acquisition (LA), household economic status, and expected resettlement modes. During the survey, the survey team also listened to opinions of the village committees and villagers on LA, house demolition (HD) and resettlement, and conducted extensive consultation. In July 2012, the RAP of the Project was completed on the basis of the feasibility study and survey data, and public consultation. This RAP analyzes and evaluates the resettlement impacts and risks of the Project, and proposes preliminary remedies. In August 2012, a supplementary survey was conducted on the project area based on the updated Feasibility Study Report, and this RAP was updated accordingly.

1.4 Key Resettlement Impacts

The Project affects 552 households with 1,714 persons in 10 villages with 34 groups in one Xiang and two sub-districts (Cihu Xiang, Huoli Sub-district, Cihu Sub-district) in 3 districts of Ma’anshan Municipality (Huashan District, Jinjiazhuang District3 and Cihu Hi-tech Development Zone). The resettlement impacts of the Project are collective land acquisition and state-owned land occupation, and no HD is involved. 1,253.89 mu of collective land will be acquired, all being cultivated land, and 535 mu of state-owned land occupied permanently for the Project. All temporarily occupied land is within the boundary line on both sides of the Cihu River. See

3 Jinjiazhuang District was integrated into Huashan District on September 30, 2012, which is adjustment of administrative scope. The adjustment will not be of influence on the basic socioeconomic situation of affected towns and villages. Therefore, Jinjiazhuang District was kept for the analysis as the surveys were conducted on this basis 1 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project Table 1-2. The persons with locations affected by the Project are detailed in Table 2-4.

Table 1-2 Summary of Key Resettlement Impacts Project River rehabilitation Construction Branch water of flood Item Unit Subtotal Upper river Lower river system control rehabilitation rehabilitation rehabilitation pumping stations Permanent acquisition of mu 445 266.85 533.84 8.2 1253.89 collective land Permanent occupation of mu 0 150.35 367.65 17 535 state-owned land Affected town num. 1 1 2 1 2 Affected village num. 3 3 7 2 10 Affected village group num. 11 3 21 34 Directly affected Household 140 35 377 0 552 population Population 434 116 1164 0 1714

1.5 Measures to Reduce Resettlement

At the project planning and design stages, the design agency and the project owner took the following effective measures to reduce the local socioeconomic impacts of the Project, and avoid LA and HD:  Avoiding or minimizing occupation of existing and planned residential areas  Avoiding or minimizing occupation of high-quality farmland  Gaining access to the proposed construction sites through existing state and local roads  Avoiding or minimizing occupation of environmentally sensitive areas  Selecting a resettlement community in line with the local development plan

At the design stage, the project design was optimized through the field investigation of the project area in order to minimize the Project’s negative impacts and resettlement. For example, it was formerly planned to broaden the right bank between pile numbers 3+860 to 4+190 in the lower Cihu River, with a newly built bank length of 330m. In this option, rural residential houses with a total area of 3,000 m2, urban residential houses with a total area of 2,173 m2 and non-residential houses with a total area of 3,449 m2 were to be demolished. Through option comparison and optimization, this option was abandoned and the above resettlement impacts avoided.

1.6 Identification of Related Projects

Related project refers to a project that is directly associated with the Project in function or benefit, namely an extended project constructed using funds other than Bank lending within the range of the Project during the preparation and implementation of the Project. During project design, the owner attached great importance to the identification of related projects. The PMO, the owners of the subprojects and the design agency conducted a correlation analysis of all components. The Middle Cihu River (East Ring Road-Linli Road) Improvement Project covers the segment from Linli Road to East Ring Road, with a total rehabilitation length of 6.7km and a total bank length of 13.15km (6.793km on the left and 6.357km on the right), and includes 3 components – flood protection and drainage, water quality improvement, and ecological landscaping. This project is on the same river as the Project and is closely related to the Project. MPMO has conducted a due diligence investigation on resettlement of the Project and prepared a

2 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project report accordingly. See Appendix 1.

3 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project 2 Impacts of the Project

2.1 Project Impact Survey

During May-June 2012, Central and Southern China Municipal Engineering Design and Research Institute conducted a feasibility study on the Project according to the project design. The survey team of Hohai University a sampling socioeconomic survey on the townships and villages/communities affected by LA and resettlement with the assistance of MPMO and the design agency during May-September 2012, and consulted relevant government agencies, village officials and some APs about resettlement and compensation policies, and possible resettlement programs. With the assistance of MPMO, the survey team held 38 FGDs, conducted a socioeconomic survey on 112 households with 343 persons, with a sampling rate of 20.29%, and conducted key informant interviews with 25 persons during the survey. See Table 2-1.

Table 2-1 Survey Methods and Key Findings Venue & No. Method Period Organized by Key findings / purpose frequency 38 FGDs in MPMO, survey 1) The APs support the Project and thinks that it is affected village team of Hohai good to environmental improvement; 2) LA has slight groups in Huoli University impacts, and the APs are willing to assist in LA and Jun. – Sub-district and project implementation; 3) After LA, they prefer cash 1 FGD Sep. Cihu Xiang compensation, 4) After receiving compensation for 2012 LA, they will participate in endowment insurance for LEFs, and expect priority in training and project employment. 25 officials in MPMO, survey 1) They generally think the Project will further Key Jun. – Huoli team of Hohai promote village development; 2) Compensation fees 2 informant Aug. Sub-district and University for LA were paid timely. interview 2012 Cihu Xiang May – Affected MPMO, survey To get a preliminary understanding of the Project’s 3 FGD Aug. villages and team of Hohai impacts 2012 AHs University 112 households MPMO, survey 1) To learn the basic financial information of the AHs; Sampling with 343 team of Hohai 2) The project area is close to the urban area, where May – socio- persons University crop cultivation is not a main income source and 4 Aug. economic most laborers work outside; 3) Some relatively 2012 survey remote villages also have high income due to modern agriculture.

2.2 Affected Area

The Project affects 552 households with 1,714 persons in 10 villages with 34 groups in one Xiang and two sub-districts (Cihu Xiang, Huoli Sub-district, Cihu Sub-district) in 3 districts of Ma’anshan Municipality (Huashan District, Jinjiazhuang District and Cihu Hi-tech Development Zone). See Table 2-2. Table 2-2 Summary of the Project Area Township/ Component Affected district / zone Village/ community sub-district Huoli Upper river Huoli Huashan District Qianjin rehabilitation Sub-district Suli River Linli rehabilitation Lower river Jinjiazhuang District Cihu Xiang Tailai rehabilitation Shuyi Cihu Hi-tech Development Zone / /

4 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project Township/ Component Affected district / zone Village/ community sub-district Shanghu Linli Jinjiazhuang District Cihu Xiang Tongyi Tailai Branch water system Caicun rehabilitation Huoli Qianjin Huashan District Sub-district Fengshou Cihu Hi-tech Development Zone / / Tailai Construction of flood control Jinjiazhuang District Cihu Xiang Shuyi pumping stations Cihu Hi-tech Development Zone / /

2.3 Impacts of the Project

According to the DMS, the main types of impact of the Project include: (1) collective land acquisition; (2) occupation of state-owned land; and (3) ground attachments, etc.

2.3.1 Affected Population

According to the recommended option, the Project will affect 10 villages with 34 groups in one Xiang and two sub-districts (Cihu Xiang, Huoli Sub-district, Cihu Sub-district) in 3 districts of Ma’anshan Municipality (Huashan District, Jinjiazhuang District and Cihu Hi-tech Development Zone), affecting 552 households with 1,714 persons permanently (directly), all affected by collective land acquisition. See Table 2-3. Table 2-3 Summary of the Affected Population Project Branch water Construction of Type Unit Upper river Lower river system flood control Subtotal rehabilitation rehabilitation rehabilitation pumping stations Affected town num. 1 1 2 1 2 Affected num. 3 3 7 2 10 village Affected num. 11 3 21 0 34 village group Directly Household 140 35 377 0 552 affected LA Population 434 116 1164 0 1714 population

2.3.2 Permanent Acquisition of Collective Land

Collective land acquisition will be caused by the river rehabilitation component. 1,253.89 mu of collective land will be acquired permanently for the Project, all being cultivated land, affecting 552 households with 1,714 persons in total. See Table 2-4. The name lists of all households to be affected by the land acquisition were recorded in t the related villages’ files. Table 2-4 Summary of Permanently Acquired Collective Land Directly affected LA (mu) Township/ population No. Component Village Village group sub-district Cultivated Households Population land Dongmeng 30 10 32 Upper river Huoli 1 Huoli Shitang 51 16 49 rehabilitation Sub-district Fengzhuang 99 32 97

5 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project Directly affected LA (mu) Township/ population No. Component Village Village group sub-district Cultivated Households Population land Xiaxi 56.25 14 44 Zhongxi 56.25 14 43 Sunqiandui 6 2 7 Qianjin Donghewan 5.5 2 6 Dongmiantou 7.5 4 11 Sucun 38 14 42 Suli Daicun 38 14 44 Licun 57.5 18 59 Subtotal 445 140 434 Linli Songmushan 66.75 9 31 Lower river 2 Cihu Xiang Tailai Village collective 108.75 0 0 rehabilitation Shuyi Group 13 91.35 26 85 Subtotal 266.85 35 116 Jilai 15 12 38 Qianjilai 15 13 39 Tailai Xiaohuangzhou 42.95 35 108 Xinjian 42.95 36 109 Tongyi Shadi 28.68 30 98 Yangqiao 61.45 55 167 Caicun Guangming 2 4 12 Caicun 7.96 18 53 Cihu Xiang Daijiazhuang 2 2 5 Linli Branch water Xiao Yingwu 6.66 4 10 3 system Qianshanghu 47.51 25 75 rehabilitation Wangjiadian 23.9 13 40 Xinzhuang 23.9 12 41 Shanghu Houshanghu 23.9 13 43 Yangshang 17.25 9 30 Yange 17.23 10 32 Fengqiao 30.27 16 51 Fengshou Sucun 40.2 23 68 Huoli Town Liqiao 17.23 10 30 Zhongdong 12.85 7 22 Qianjin Zhongxi 54.95 30 93 Subtotal 533.84 377 1164 Construction of Shuyi Village collective 4.1 0 0 4 flood control Cihu Xiang Tailai Village collective 4.1 pumping stations 0 0 Subtotal 8.2 0 0 Total 1253.89 552 1714 Percent 100 / /

2.3.3 Permanent Occupation of State-owned Land

535 mu of state-owned land will be occupied permanently, all being unoccupied land along rivers or water systems, in which 150.35 mu will be occupied for the lower river rehabilitation subcomponent, 367.65 mu for the branch water system rehabilitation component, and 17 mu for the pumping station construction component, and no one will be affected. See Table 2-5. Table 2-5 Summary of Permanently Occupied State-owned Land No. Component Occupied state-owned land (mu) 1 Lower river rehabilitation 150.35 2 Branch water system rehabilitation 367.65 3 Construction of flood control pumping stations 17.0

6 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project Total 535.0

2.3.4 Temporary Land Occupation

The range of temporary land occupation is within the boundary line on both sides of the Cihu River, and involves neither LA nor HD, so there will be no temporarily affected population.

2.3.5 Young Crops and Attachments

The Project will affect some young crops and attachments, including scattered trees (<10cm, 10-20cm, 20-30cm, 30-40cm and >=40cm), waste pools, greenhouses, etc.. See Table 2-6. Table 2-6 Summary of Affected Attachments Type Spec. / variety Unit Qty. Remarks Vegetables Special vegetables mu 15 Young crops Food and oil crops Paddy rice, wheat, etc. mu 619.6 Diameter, measured 1m <10cm / 30 above ground Scattered 10-20cm / 35 Ordinary trees trees 20-30cm / 40 30-40cm / 45 >=40cm / 40 Standard waste pools / / 5 Bridges, Steel frame, incl. film mu 8 canals, etc. Greenhouses Bamboo frame, incl. film mu 7

2.3.6 Vulnerable Groups

The affected population includes 27 vulnerable households with 32 persons (1.87% of the affected population), including 14 households with 19 persons covered by minimum living security (MLS), and 13 five-guarantee households with 13 persons. See Table 2-7. Table 2-7 Summary of Affected Vulnerable Groups MLS households Five-guarantee households District Township Village Households Population Households Population Fengshou 1 2 1 1 Huashan Suli 2 2 2 2 Huoli Sub-district District Huoli 1 2 1 1 Qianjin 2 3 1 1 Tailai 1 2 1 1 Shanghu 1 1 2 2 Jinjiazhuang Shuyi 2 2 1 1 Cihu Xiang District Tongyi 1 1 2 2 Caicun 2 3 1 1 Linli 1 1 1 1 Total 14 19 13 13

2.4 Gender Analysis

2.4.1 Analysis of women in Project Area

In the population affected by the Project, there are 849 women, accounting for 49.52%. According to the survey, the affected women enjoy the same rights as men, including land contracting, education receiving, family planning and election. Most of the female labor respondents think that they have the same autonomy in production and management as men, and may elect to get employed or do small business independently. Women do more housework, child care, household sideline operations (e.g., household stockbreeding) and handicraft jobs. The average working hours of women are 1.2 times

7 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project those of men. Women are more advantaged in social services, apparel processing and like industries, but disadvantaged in the building and transport industries. Boys and girls have equal opportunities in education, and parents are always willing to support their children’s education. See Table 2-8 for an analysis of women in project area. Table 2-8 Analysis of women in project area 1. Legal rights According to laws of the PRC, women have equal legal rights with men, though some women are of women not fully aware of this. Women of the project area have relatively good social status. All key matters of a family are 2. Social determined by the couple through discussion. Men are the backbone of families, and attend the status of important meetings of the village. However, women can influence men when they make decisions women at meetings. Women have the same title as men. Like other parts of China, in the project area, when a daughter is married, her land will remain in her mother’s family and she can only share the land owned by 3. Title to land her husband’s family since the household contract responsibility system was put into practice in and properties 1982. However, if a second round of land contracting has been carried out at the affected village (around 1999), this situation has been corrected. If LA, HD or resettlement is involved, women will have equal rights to compensation. 4. Right to collective Women have equal rights. properties There is no restriction on gender role. However, women do housework and appropriate farm work 5. Living and mainly in Chinese rural areas, while men mostly do farm work or work outside. Generally, the gender role working hours of women are 1.2 times those of men. In addition, many young women also work outside. 6. Contribution Women’s income is from farming and household sideline operations mainly, accounting for about to household 10% of household income. income 7. Family Women have an equal voice in decision-making; when men are away for work, women make status decisions themselves in many aspects. 8. Educational Boys and girls enjoy equal opportunities in receiving education, and as long as children study hard, level their parents would do their best to support their school education. Women’s health condition is quite good and there is no significant difference in nutrition level 9. Health compared to men; however, medical expenses are rising and have become a significant burden for some households, and women may suffer more. 10. Village Women are represented in all village committees. In addition, women have a good informal and network in the village and the village group. Women may participate in the election of the village government committee, and have the right to elect and be elected; local governments attach great importance agencies to women’s development, especially in poverty reduction. Overall Women enjoy a good status in the project area, and there is no restriction on gender role; though evaluation women seldom participate in the decision-making of public affairs of the village collective, they can and key risks express their views in many ways (e.g., through male members of their families).

2.4.2 Analysis of resettlement impacts on women

The main impact of the Project on women is the reduction of income due to the acquisition of cultivated land, while per capita cultivation and stockbreeding income is 1,080.3 yuan, accounting for 9.65% of household income. According to the survey, women have the same concerns as those of men: (a) Compensation rates should comply strictly with the state laws and policies; and (b) Compensation fees should be disbursed directly to the AHs. Women have the following needs that are different from those of men: (a) Women expect both cash compensation and land reallocation; (b) Women want skills training in crop cultivation, stockbreeding and handicrafts; and (c) Women also expect to participate in village-level management.

Table 2-9 analysis of resettlement impacts on women

8 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project Gender issue Impact of the Project 1. Land, properties and Men and women have equal rights to compensation for LA, HD and resettlement; right to compensation the Project will not have any significantly adverse impact on women. All AHs will lose part of land only, and compensation fees will be used at the AHs’ 2. Production and income discretion. In addition to cash compensation, the AHs will be assisted in restoring restoration after LA income through auxiliary measures (priority in employment during construction, skills training and subsequent support, etc.) Through the LA announcement, RIB and consultation meetings, resettlement 3. Public participation and impacts and policies are transparent; women can participate in the above activities consultation actively. A special survey on women was conducted, and their opinions incorporated in the RAP. 4. Grievance redress Women enjoy equal rights. Resettlement funds will be audited, and the external M&E agency will pay particular 5. M&E attention to women.

9 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project 3 Socioeconomic Profile of the Project Area

3.1 Socioeconomic Profile of the Affected Province, Municipality and Districts

 Anhui Province Anhui Province is located in eastern China and is a coastward inland province, between east longitude 114°54′-119°37′ and north latitude 29°41′-34°38′, stretching 450km from east to west and 570km from south to north, with a land area of 139,600 km2, accounting for 1.45% of China’s territory. Anhui crosses the middle and lower Yangtze and Huaihe Rivers, bordering Jiangsu and Zhejiang on the east, Jiangxi on the south, Hubei and Henan on the west, and Shandong on the north. Anhui is located between the warm temperate zone and subtropical zone, featuring moderate air temperature, ample sunshine, significant monsoons and distinctive seasons. According to the 2011 Statistical Bulletin on National Economic and Social Development of Anhui Province, Anhui’s registered population was 68.759 million and resident population of 59.68 million in 2011. In 2011, Anhui’s GDP was 1.51103 trillion yuan, an increase of 13.5% from the previous year; the added value of primary industries was 202.03 billion yuan, up 4%, that of secondary industries 822.64 billion yuan, up 17.9%, and that of tertiary industries 486.36 billion yuan, up 10.5%; social labor productivity was 36,986 yuan per capita, a year-on-year increase of 6,234 yuan, Per capita GDP 25,340 yuan (equivalent to US$3,923), a year-on-year increase of 4,452 yuan, urban residents’ per capita disposable income 18,606 yuan and urbanization rate 44.8%.  Ma’anshan Municipality Ma’anshan Municipality is located in eastern China, south of the lower Yangtze River and eastern Anhui, between north latitude 31°46'42''-31°17'26'' and east longitude 118°21'38''-118°52'44'', bordering Lishui and Gaochun Counties in Jiangsu Province on the east, the provincial capital Hefei on the west, and Wuhu Municipality on the south. Ma’anshan boasts an advantaged geographic location and convenient traffic, 30km away from the urban area of Wuhu Municipality, 45km away from the urban center of Nanjing Municipality, only 30km away from the Nanjing Lukou Airport, and less than 300km away from Shanghai Municipality. The Ma’anshan Port is a natural deep-water port and one of the top 10 ports on the Yangtze River. Ma’anshan has a large number of heavy industrial enterprises, including steelmaking, automobile, chemical and hi-tech enterprises, and is home to Masteel, the third largest steelworks of China. According to the 2011 Statistical Bulletin on National Economic and Social Development of Ma’anshan Municipality, at the end of 2011, the municipality’s registered population was 2,286,100, agricultural population 1,470,800 and nonagricultural population 815,300. In 2011, the municipality’s GDP was 114.418 billion yuan, a year-on-year increase of 12.1%, in which the added value of primary industries was 6.69 billion yuan, up 4.1%, that of secondary industries 77.904 billion yuan, up 14.3% and that of tertiary industries 29.824 billion yuan, up 8.7%, urban residents’ per capita disposable income was 27,329 yuan, ranking first in the province and a year-on-year increase of 18.0%, and farmers’ per capita annual net income 9,505 yuan, ranking first in the province and a year-on-year increase of 18.5%.  Huashan District Huashan District is located in eastern Ma’anshan, being the main urban area, and a clustering zone of service and emerging industries of Ma’anshan, with a land area of 123 km2 and a resident population of 255,000. The district is superiorly located, bordering Jiangning District, Nanjing Municipality on the east, half an hour’s drive to the urban center of Nanjing Municipality and 3 hours’ drive from Shanghai. The district governs 5 sub-districts and has a population of 234,000. In 2011, the district’s fiscal revenue was 1.47 billion yuan, a year-on-year increase of 46.2% or 460 million yuan, fixed assets investment 13.1 billion yuan, a year-on-year increase of 28.5%. farmers’ per capita annual net income 11500 yuan, a year-on-year increase of 14.59%; urban residents’ per capita disposable income 32000 yuan, a year-on-year increase of 19.12%.  Jinjiazhuang District Jinjiazhuang District is located in northwestern Ma’anshan, bordering Nanjing Municipality on the northeast and the Yangtze River on the west. The lush and towering Ma’an Mountain is located, which is where Ma’anshan Municipality got its name. The district governs one Xiang, 4 sub-districts, 13 villages and 24 communities, with a land area of 53 km2 and a resident population of 110,000. The district boasts convenient traffic and is run through by Nanjing-Ma’anshan Expressway, National

10 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project Highway 205, Jiangdong Avenue and Shanghai-Tongling Railway. It is 20km away from the Nanjing Lukou Airport. The district has a population of 123,600, including a nonagricultural population of 104,200, and a cultivated area of 225 hectares. In 2011, the district’s gross industrial output value was 13.73 billion yuan, up 13.5%, fiscal revenue 1.47 billion yuan, up 46.5%, fixed assets investment 12.2 billion yuan, up 23.1%, and actually utilized domestic capital 5.6 billion yuan and actually utilized foreign capital US$52.67 million, up 17.9% and 10.1% respectively. In 2011, 50 livelihood improvement projects were implemented in the district at a total investment of 630 million yuan. The district’s farmers’ per capita annual net income was 11,800 yuan and urban residents’ per capita disposable income 20,400 yuan, up 12.4% and 15.2% respectively.  Cihu Hi-tech Development Zone Cihu Hi-tech Development Zone was founded in May 2002, with a planned area of 11.2 km2. It is located in northwestern Ma’anshan Municipality, bordering Jiangsu Province on the north, and in the vicinity of the Jiangning and Binjiang Development Zones in Nanjing. It is run through by National Highway 205, Nanjing-Tongling Railway and Nanjing-Ma’anshan Expressway. The district has a Yangtze River bank line of 4.2km, where 10,000-tonnage vessels can navigate all the year round. One 5,000-ton special jetty for hazardous goods and four 5,000-ton public jetties have been completed. The development zone has a population of 90,350, including a nonagricultural population of 88,280. In 2011, the development zone’s GDP was 4.08 billion yuan, in which the output value of secondary industries was 3.93 billion yuan, accounting for 96.39%, and that of tertiary industries 150 million yuan, accounting for 3.7%, and per capita GDP was as high as 45,157.7 yuan. See Table 3-1. Table 3-1 Key Economic Indicators of the Affected Province, Municipality and Districts Anhui Ma’anshan Huashan Jinjiazhuang Cihu Hi-tech Indicator Province Municipality District District Development Zone Total population (0,000) 6862 228.3 23.4 12.36 9.035 Men (0,000) 3024.6 116.43 11.93 6.36 4.501 Population Women (0,000) 2925.5 111.86 11.46 6 4.534 Nonagricultural population 2559.1 81.37 22.68 10.42 8.828 (0,000) Cultivated area (ha) 395000 49335 1786.7 225 / Agriculture Grain output (0,000 tons) 3135.5 32.15 0.1 / GDP (00 million yuan) 15110.3 1144.18 171.42 199.56 40.8 Output value (00 Primary 2020.3 66.9 1.12 0.55 / million yuan) industries Percent (%) 13.4 5.84 0.65 0.2 / Output value (00 Output Secondary 8226.4 779.04 73.68 159.36 39.3 million yuan) value industries Percent (%) 54.4 68.08 42.98 79.9 96.39 Output value (00 Tertiary 4863.6 298.24 96.62 39.65 1.5 million yuan) industries Percent (%) 32.2 26.06 56.36 19.9 3.7 Per capita GDP (yuan) 25340 50183 73256 16146 451577 Urban residents’ per capita 18606.13 27329.4 31941 21433.3 / disposable income (yuan) income Farmers’ per capita annual 6232 9332 11972 12369.2 / net income (yuan) Source: 2011 Statistical Bulletins of Anhui Province and Ma’anshan Municipality

3.2 Socioeconomic Profile of the Affected Townships

 Cihu Xiang Cihu Xiang is located in the north of the urban area of Ma’anshan, and the border between Anhui and Jiangsu Provinces. The Xiang governs 11 villages, and has a land area of 26 km2, an agricultural population of 15,000 and a floating population of over 20,000. The Xiang has two industrial parks, a Yangtze River jetty, and the largest thermal power plant in eastern China, and enjoys convenient water, land and air traffic.

11 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project The Xiang is located in outskirts and is being urbanized rapidly. There are many logistics enterprises here. The Xiang governs offers free employment and business startup training to promote the transfer of rural labor, involving 252 and 57 trainees respectively, covering casting, sewing and sales skills.  Huoli Sub-district Huoli Sub-district is located in eastern Ma’anshan, bordering Jiangning District, Nanjing Municipality, only 25km away from the Nanjing Lukou Airport. The sub-district governs 13 villages, 4 communities and one forest farm, with a registered population of 42,000. The sub-district has a land area of 88.66 km2, including a water surface area of 6,600 mu, a forest area of 42,000 mu and a cultivated area of 1,787 hectares (0.87 mu per capita). In recent years, characteristic agriculture has developed rapidly in the sub-district, including paddy rice, wheat, greenhouse vegetables, flowers, nursery stock, strawberry, high-grade fruit, tealeaf, etc. There are many major stockbreeders in the sub-district. See Table 3-2. Table 3-2 Key Economic Indicators of the Affected Townships Per capita Per capita annual Township/ Nonagricultural Cultivated No. Households Population cultivated net income sub-district population area (mu) area (mu) (yuan) 1 Cihu Xiang 10705 28667 12349 5200 0.18 12369 Huoli 2 16524 40541 13573 1787 0.87 10275 Sub-district Source: Statistical stations of affected townships

3.3 Socioeconomic Profile of the Affected Villages

The affected villages in Cihu Xiang are Linli, Tailai, Shanghu, Shuyi, Tongyi and Caicun Villages. Linli Village—This village has 4 village groups, 814 households with 2,315 persons, a labor force of 1,595, and 2,550 mu of cultivated land, all being irrigated land. Tailai Village—This village has 4 village groups, 397 households with 1,499 persons, a labor force of 968 and 8,830.5 mu of cultivated land, which is used to grow greenhouse vegetables, including tomato, pepper and other short-season vegetables for supply to the urban area. The average annual income of laborers is 20,000-30,000 yuan. This village offers skills training, covering crop cultivation, vegetable cultivation and casting skills. There are some private enterprises related to casting, electric installation and metallurgy. Shanghu Village—This village has 542 households with 1,636 persons and a labor force of 1,084. Farmers’ per capita annual net income is 10,000 yuan, in which agricultural income accounts for 95%. Shuyi Village—This village has 12 village groups, 719 households with 1,842 persons, a labor force of 1,039 and 5,476 mu of cultivated land. Villagers are engaged mainly in greenhouse vegetable cultivation, especially short-season vegetables, with per capita annual income of 11,000 yuan. Caicun Village—This village has 3 village groups, 886 households with 2,710 persons, a labor force of 1,951 and 615 mu of cultivated land. Villagers mostly work outside, and those farming locally are old people and women mainly. Farmers’ per capita annual net income is 10,000 yuan. Tongyi Village—This village has one village group (Shadi), 504 households with 1,206 persons, a labor force of 654 and 34.7 mu of cultivated land. Farmers’ per capita annual net income is 11,924 yuan. The affected villages in Huoli Sub-district are Huoli, Suli, Qianjin and Fengshou Villages. Huoli Village—This village has 5 village groups and a population of 3,200. Most of the cultivated land is irrigated land, used to grow paddy rice, wheat, vegetables and fruit, but is limited for this village’s population. Suli Village—This village has 4 village groups and 240 households with 1,712 persons. Villagers cultivate and sell nursery stock mainly. Grape cultivation is a traditional industry of this village and has a history of over 10 years. 700-800 mu of grape is cultivated in this village, with a per mu output of 1,750 kilograms. Qianjin Village—This village is located in the east suburb, with a registered agricultural population of 756 households with 2,178 persons, 12 village groups (including 3 newly built residential communities) and a land area of 1,900 mu. In 2010, gross industrial output value was 98 million yuan, collective economic income 3.9 million yuan and farmers per capita annual net income 9,100 yuan.

12 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project Fengshou Village—This village is located in the east suburb and enjoys an advantaged geographic location, 4km away from the urban area. This village has a land area of 4 km2, including 2,200 mu of cultivated land and 1,800 mu of woodland, and governs 13 groups and 1,354 households with 4,241 persons. Some villagers are engaged in the breeding of freshwater fish and other aquatic products, and earn considerable income. See Table 3-3. Table 3-3 Key Economic Indicators of the Affected Villages Per capita Farmers’ per capita Township/ # of Labor Cultivated No. Village Population cultivated annual net income sub-district households force area (mu) area (mu) (yuan) 1 Linli 814 2315 1595 2550 0.97 13254 2 Tailai 397 1499 856 602 0.4 12366 3 Shanghu 542 1636 1086 1038.42 0.63 10000 Cihu Xiang 4 Caicun 886 2710 1951 615 0.23 10000 5 Tongyi 504 1206 654 34.7 0.029 11924 6 Shuyi 719 1842 1039 5746.5 3.11 11352 7 Huoli 1153 3372 1349 3780 1.12 10341 8 Huoli Suli 668 1712 685 1830 1.07 11326 9 Sub-district Qianjin 743 2227 891 1200 0.54 10364 10 Fengshou 1354 3741 1496 2200 0.59 10275 Source: 2011 agricultural and economic statistical reports and village interviews

3.4 Socioeconomic Profile of the AHs

In order to learn the basic information of the APs, the survey team conducted a sampling survey on the AHs during July-August 2012. Among the 552 households with 1,714 persons affected by the Project, 112 households with 343 persons were sampled, with a sampling rate of 20.29%. See Table 3-4. Table 3-4 Statistics of the Affected Population Men Women Total Item Number % Number % Number % Age ≤6 years 11 3.21% 7 2.04% 18 5.25% 7-14 years 13 3.79% 8 2.33% 21 6.12% 15-64 years 135 39.36% 128 37.32% 263 76.68% ≥65 years 22 6.41% 19 5.54% 41 11.95% Subtotal 181 52.77% 162 47.23% 343 100.00% Educational level Primary school or below 8 2.33% 8 2.33% 16 4.66% Junior high school 56 16.33% 34 9.91% 90 26.24% Senior high school 99 28.86% 58 16.91% 157 45.77% Secondary technical school 41 11.95% 28 8.16% 69 20.12% Junior college or above 7 2.04% 4 1.17% 11 3.21% Subtotal 211 61.52% 132 38.48% 343 100.00% Labor force 113 54.33% 95 45.67% 208 100.00%

3.4.1 Ethnic and Gender Analysis

Among the 343 sample persons, total labor force is 208 and average population per household is 3.06. There are 162 women, accounting for 47.23% of the sample population; women are engaged in farming, housework and services mainly.

3.4.2 Age Structure

Among the 343 sample persons, 18 are aged 0-6 years (preschool children), accounting for 5.25%;

13 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project 21 aged 7-14 years (compulsory education age), accounting for 6.12%; 263 aged 15-64 years (young and middle-aged adults), accounting for 76.68%; and 41 aged 15-64 years (old age), accounting for 11.95%. See Figure 3-1.

18, 5.2% 41, 12.0% 21, 6.1%

aged 0-6 years aged 7-14 years aged 15-64 years aged 15-64 years

263, 76.7%

Figure 3-1 Age Structure of Sample Population

3.4.3 Educational Level

Among the 343 sample persons, 16 have received primary school or below education, accounting for 4%; 90 have received junior high school education, accounting for 27%; 157 have received senior high school education, accounting for 46%, 69 have secondary technical school education, accounting for 20%; and 11 have received junior college or above education, accounting for 4%. See Figure 3-2.

11, 3.2% 16, 4.7%

69, 20.1% primary school or below 90, 26.2% junior high school

senior high school

secondary technical school junior college or above 157, 45.8%

Figure 3-2 Educational Level Distribution of Sample Population

3.4.4 Productive Resources

The 112 sample households have a total cultivated area of 294.98 mu, 0.86 mu per capita and 2.63 mu per household, used to grow paddy rice and wheat mainly, and short-season vegetables partly.

14 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project 3.4.5 Living Environment

Among the 112 sample households, the average distance from the county town is 1.21 kilometers, that from the nearest school 1.44 kilometers, that from the nearest hospital 1.54 kilometers and that from the nearest station 1.73 kilometers. See Table 3-5. Table 3-5 Housing Conditions of the AHs Living environment Average distance Distance from county town (Km) 1.21 Distance from the nearest school (Km) 1.44 Distance from the nearest hospital (Km) 1.54 Distance from the nearest station (Km) 1.73

3.4.6 Annual Household Income and Expenditure

1) Household income The per capita annual income of the sample households is 11,303 yuan, in which wage income is 7,515 yuan, accounting for 66.5%, household operating income 2,847 yuan, accounting for 25.2%, transfer income 639 yuan, accounting for 5.7%, and property income 302 yuan, accounting for 2.7%. 2) Household expenditure The per capita gross expenditure of the sample households is 9,020 yuan, in which productive expenditure is 1,647 yuan, accounting for 18.3%, nonproductive expenditure 6,209 yuan, accounting for 68.8%, purchase costs of productive fixed assets 163 yuan, accounting for 1.8%, and property and transfer expenses 943 yuan, accounting for 10.5%. See Table 3-6. Table 3-6 Annual Income and Expenditure of the AHs Item Per capita (yuan) Percent (%) Wage income 7515 66.5% Annual Family operating income 2847 25.2% household Property income 302 2.7% income Transfer income 639 5.7% Total 11303 100.0% Productive expenditure 1647 18.3% Purchase of productive fixed assets 163 1.8% Annual Tax payment 58 0.6% household Nonproductive expenditure 6209 68.8% expenditure Property and transfer expenses 943 10.5% Total 9020 100.0% Net income 9656 /

15 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project 4 Legal and Policy Framework

In order to implement the LA and resettlement work of the project effectively, protect the lawful rights and interests of the APs and entities, and facilitate project implementation, the resettlement policy framework of the WE Project and the Hongshui River Project has been formulated in accordance with the laws and regulations of the People’s Republic of China (PRC), the Anhui Provincial Government and the Ma’anshan Municipal Government on LA, as well as the Bank’s policy on involuntary resettlement (OP4.12). The resettlement work of the Project will be conducted in strict conformity with the policies in the RAP, and any change during implementation should be approved by the Bank.

4.1 Policy Framework

See Table 4-1. Table 4-1 Summary of Applicable Policies Level Policy document Effective date Land Administration Law of the PRC 2004-8-28 Regulations on the Implementation of the Land Administration Law of the PRC (Decree No.256 of 1998-12-27 the State Council) Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land 2004-10-21 Administration (SC [2004] No.28) Interim Regulations of the PRC on Farmland Occupation Tax 2008-1-1 Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition (MLR 2004-11-3 State [2004] No.238) Notice of the State Council on Intensifying Land Control (SC [2006] No.31) 2006-8-31 Measures for Announcement of Land Acquisition 2002-1-1 Notice of the Ministry of Land and Resources on Providing Compensation for Land Acquisition 2001-11-16 Practically (MLR [2001] No.358) Notice of the Ministry of Land and Resources on Further Improving Land Acquisition Management 2010-6-26 Notice on Issuing the Measures for the Appraisal of Acquired Houses on State-owned Land (HC 2011-6-3 [2011] No.77) Measures of Anhui Province for the Implementation of the Land Administration Law of the PRC 2000-9-22 Notice on Regulating Compensation and Resettlement for Land Acquisition, and Settling Disputes 2007-2-15 Anhui arising from Compensation for Land Acquisition Properly (ALRD [2007] No.54) Uniform AAOV Rates and Compensation Rates for Land Acquisition of Anhui Province (APG

2010-1-1 [2009] No.132) Notice of the Anhui Provincial Government on Adjusting the Compensation Rates for Land 2012-5-15 Acquisition of Anhui Province (APG [2012] No.67) Compensation and Resettlement Measures for Land Acquisition of Ma’anshan Municipality 2009-1-1 (Decree No.43 of the Ma’anshan Municipal Government) Notice on Issuing the Compensation Rates for Land Acquisition of Ma’anshan Municipality 2009-1-1 (MMGS [2008] No.78) Notice on Issuing the Rules for the Implementation of the Compensation and Resettlement

Ma’anshan 2009-1-1 Measures for Land Acquisition of Ma'anshan Municipality (MMGO [2008] No.37) Notice on Issuing the Supplementary Provisions on Compensation and Resettlement for Land 2012-4-1 Acquisition of Ma’anshan Municipality

Interim Measures for Basic Endowment Insurance for Land-expropriated Farmers of Ma’anshan 2005-5-1 Municipality Notice on Issuing the Measures for the Implementation of Urban and Rural Medical Assistance of 2012-1-1 Ma’anshan Municipality in 2012 (MCAB [2012] No.50) Notice of the Ma’anshan Municipal Government on Adjusting and Increasing the Social 2011-12-18 Assistance Standards for Urban and Rural Residents in Difficulty (MMGS [2011] No.98) World Operational Policy OP4.12 on Involuntary Resettlement and appendixes 2002-1-1 Bank Bank Procedure BP4.12 on Involuntary Resettlement and appendixes 2002-1-1

16 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project 4.2 Key Provisions of Laws and Policies on Resettlement

 Key provisions of the Land Administration Law of the PRC Article 8 Land in urban districts shall be owned by the State. Land in the rural areas and suburban areas, except otherwise provided for by the State, shall be collectively owned by farmers including land for building houses, land and hills allowed to be retained by farmers. Article 10 In lands collectively owned by farmers those have been allocated to villagers for collective ownership according to law shall be operated and managed by village collective economic organizations or villagers' committee and those have allocated to two or more farmers collective economic organizations of a village, shall be operated and managed jointly by the collective economic organizations of the village or villagers' groups; and those have allocated to township (town) farmer collectives shall be operated and managed by the rural collective economic organizations of the township (town). Article 45 The acquisition of the following land shall be approved by the State Council: (1) Basic farmland; (2) Land exceeding 35 hectares outside the basic farmland; (3) Other land exceeding 70 hectares. Article 47 In acquiring land, compensation should be made according to the original purposes of the land acquired. Compensation fees for land acquired include land compensation fees, resettlement fees and compensation for attachments to or green crops on the land. The land compensation fees shall be 6-10 times the average output value of the three years preceding the acquisition of the cultivated land. The resettlement fee shall be calculated according to the number of agricultural population to be resettled. The number of agricultural population to be resettled shall be calculated by dividing the amount of cultivated land acquired by the per capital land occupied of the unit whose land is acquired. The resettlement fees for each agricultural person to be resettled shall be 4-6 times the average annual output value of the three years preceding the acquisition of the cultivated land. But the maximum resettlement fee per hectare of land acquired shall not exceed 15 times of the average annual output value of the three years prior to the acquisition. In special circumstances, the State Council may raise the standards for land compensation and resettlement fees for land acquired according to the social and economic development level. Article 48 After the plan for land compensation and resettlement fees is finalized, related local people's governments shall make an announcement and hear the opinions of the rural collective economic organizations and farmers whose land has been acquired. Article 49 Rural collective economic organizations shall make public to its members the receipts and expenditures of the land compensation fees for land acquired and accept their supervision. It is forbidden to embezzle or divert the land compensation fees and other related expenses. Article 50 Local people's governments at all levels shall support rural collective economic organizations and farmers in their efforts toward development and operations or in starting up enterprises. Article 54 A paid leasing should be go through in use of land owned by the State by a construction unit. But the following land may be obtained through government allocation with the approval of the people's governments at and above the county level according to law: (1) Land for use by government organs and for military use; (2) Land for building urban infrastructure and for public welfare undertakings; (3) Land for building energy, communications and water conservancy and other infrastructure projects supported by the State; (4) Other land as provided for by the law and administrative decrees. Article 57 In the case of temporary using State-owned land or land owned by farmer collectives by construction projects or geological survey teams, approval should be obtained from the land administrative departments of local people's governments at and above the county level. Whereas the land to be temporarily used is within the urban planned areas, the consent of the urban planning departments should be obtained before being submitted for approval. Land users should sign contracts for temporary use of land with related land administrative departments or rural collective organizations or villagers committees depending on the ownership of the land and pay land compensation fees for the temporary use of the land according to the standard specified in the contracts.

17 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project Users who use the land temporarily should use the land according to the purposes agreed upon in the contract for the temporary use of land and should not build permanent structures. The term for the temporary use of land shall not usually exceed two years. Article 62 One rural household can own one piece of land for building house, with the area not exceeding the standards provided for by provinces, autonomous regions and municipalities. Construction of rural houses should conform to the general plans for the utilization of land of townships (towns) and the original land occupied by houses and open spaces of villages should be used as much as possible for building houses. The use of land for building houses should be examined by the township (town) people's governments and approved by the county people's governments. Whereas occupation of agricultural land is involved the examination and approval procedure provided for in Article 44 of this law is required. The application for housing land after selling or leasing houses shall not be approved.  Key provisions of the Regulations on the Implementation of the Land Administration Law of the PRC Article 25 Municipal, county people's government of the locality whose land has been acquired shall, upon approval of the land acquisition plan according to law, organize its implementation, and make an announcement in the village(township), hamlet whose land has been acquired on the approval organ of the land acquisition, number of the approval document, use, scope and area of the acquired land as well as the rates for compensation of land acquisition, measures for the resettlement of agricultural personnel and duration for processing land acquisition compensation. Persons of ownership and persons of use right of the acquired land should, within the duration prescribed in the announcement, go to the competent department of people's government designated in the announcement to go through the registration for land acquisition compensation on the strength of land ownership certificates. The competent departments of municipal, county people's governments shall, on the basis of the approved land acquisition plan and in conjunction with the departments concerned, draw up land acquisition compensation and resettlement plan, make an announcement thereof in the village (township), hamlet wherein the acquired land is located to solicit the views of the rural collective economic organizations and peasants on the acquired land. The competent departments of land administration of municipal, county people's governments shall, upon approval of the land acquisition compensation and resettlement plan submitted to the municipal, county people's governments, organize its implementation. Where a dispute arises over the compensation rates, coordination shall be carried out by local people's government above the county level; where coordination has failed, arbitration shall be resorted to by the people's government that approved the land acquisition. Land acquisition compensation and resettlement dispute shall not affect the implementation of the land acquisition plan. Payment of various expenses for land acquisition should be effected in full within 3 months starting from the date of approval of the land acquisition and resettlement plan. Article 26 Land compensation fee goes to the rural collective economic organization; compensation fee for ground appendices and young crops shall be for the owner(s) of ground appendices and young crops. Funds earmarked for land acquisition resettlement subsidy must be used for the designated purpose and shall not be diverted to any other purpose. For persons required to be resettled by the rural collective economic organization, payment of the resettlement subsidy shall be made to the rural collective economic organization to be administered and used by the rural collective economic organization; where resettlement is to be arranged by other units, the resettlement subsidy shall be paid to the resettlement units; where no unified resettlement is required, the resettlement subsidy shall be given to the individuals to be resettled or used for the payment of insurance premium for the resettled persons on gaining the consent of the resettled persons. Municipal, county and village (township) people's governments should strengthen supervision over the use of resettlement subsidy.  Key provisions of the Decision of the State Council on Deepening the Reform and Rigidly Enforcing Land Administration III. Improving compensation and resettlement systems for land acquisition Article 12 Improving measures of compensation for land acquisition. County-level and above local people’s governments shall take practical measures so that the standard of living of farmers affected by

18 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project land acquisition is not reduced by land acquisition. Land compensation, resettlement subsidy and compensation for ground annexes and crops shall be paid in full and timely pursuant to law. If the land compensation and resettlement subsidy pursuant to the prevailing laws and regulations are insufficient to maintain the former standard of living of the farmers affected by land acquisition or to pay the social security expenses of farmers who lose all land due to land acquisition, the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government shall approve an increased resettlement subsidy. If the sum of the land compensation and the resettlement subsidy attains the statutory upper limit and is still insufficient to maintain the former standard of living of the farmers affected by land acquisition, local people’s governments may pay a subsidy from the income from compensated use of state land. The people’s governments of provinces, autonomous regions and municipalities directly under the Central Government shall fix and publish the uniform annual output value standards or composite land prices for land acquisition of all cities and counties, so that the same price applies to the same kind of land. For key construction projects of the state, land acquisition expenses must be listed in the budgetary estimate in full. Compensation rates and resettlement measures for large and medium-sized water resources and hydropower projects shall be otherwise stipulated by the State Council. Article 13 Resettling land-expropriated farmers properly. County-level and above local people’s governments shall take specific measures to guarantee long-term livelihoods of farmers affected by land acquisition. For projects with a stable income, farmers may become a shareholder using the right to use of land used for construction approved pursuant to law. Within the urban planning area, local people’s governments shall bring farmers who lose all land due to land acquisition into the urban employment system, and establish a social security system; out of the urban planning area, in acquiring land collectively owned by farmers, local people’s governments shall reserve necessary cultivated land or arrange appropriate jobs for farmers affected by land acquisition within the same administrative area; farmers without land who do not have the basic living and production conditions shall be subject to non-local resettlement. The labor and social security authorities shall propose guidelines for the employment training and social security systems for farmers affected by land acquisition as soon as possible. Article 14 Improving land acquisition procedures. During land acquisition, the ownership of collective land of farmers and the right to contracted management of farmers’ land shall be maintained. Before land acquisition is submitted for approval pursuant to law, the use, location, compensation standard and resettlement mode of the land to be acquired shall be notified to farmers affected by land acquisition; the survey results of the present situation of the land to be acquired shall be confirmed by rural collective economic organizations and farmers to be affected by land acquisition; if necessary, the land and resources authorities shall organize a hearing in accordance with the applicable provisions. The materials for notification to and confirmation by the farmers affected by land acquisition shall be taken as requisite materials for approval for land acquisition. Accelerate the establishment and improvement of the coordination and judgment mechanism for disputes over compensation and resettlement for land acquisition to protect the lawful rights and interests of farmers affected by land acquisition and land users. Approved matters of land acquisition shall be disclosed unless in special cases. Article 15 Strengthening Supervision over the implementation of land acquisition. If the compensation and resettlement for land acquisition has not been implemented, the acquired land shall not be used forcibly. The People’s governments of provinces, autonomous regions and municipalities directly under the Central Government shall formulate the procedures for the distribution of the land compensation within rural collective economic organizations on the principle that the land compensation is used for rural households affected by land acquisition mainly. Rural collective economic organizations affected by land acquisition shall disclose the receipt, disbursement and allocation of land compensation fees to their members and accept supervision. The agricultural and civil affairs authorities shall strengthen the supervision over the allocation and use of land compensation fees within rural collective economic organizations.  Key provisions of the Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition Article 1 “About compensation rates for land acquisition” (2) Fixation of uniform annual output value multiples. The uniform multiple of annual output value for land compensation fees and resettlement subsidy shall be fixed within the statutory range so

19 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project that land-expropriated farmers’ standard of living is not reduced; if compensation fees for land acquisition calculated from the statutory uniform multiple of annual output value are insufficient for land-expropriated farmers to maintain their former standard of living or insufficient to cover their social security costs, the multiple shall be increased appropriately with the approval of the province-level people’s government; if an aggregate multiple of 30 for land compensation fees and resettlement subsidy is still insufficient for land-expropriated farmers to maintain their former standard of living, the local people’s government shall allocate a certain proportion from the income from the compensated use of state-owned land for subsidization. For basic farmland occupied with lawful approval, the highest compensation rate announced by the local people’s government shall apply. (3) Fixation of composite land prices for land acquisition areas. Where conditions permit, the province-level land and resources authority may fix composite land prices for land acquisition for different counties and cities in the province together with other competent authorities, and report such prices to the province-level people’s government for approval, disclosure and implementation. Such prices shall be fixed in consideration of land type, output value, geographic location, farmland rating, per capita cultivated area, land supply-demand relationship, local economic level and minimum living security level of urban residents, etc. Article 2 “About means of resettlement for land-expropriated farmers”: (5) Agricultural resettlement. When rural collective land out of urban planning areas is acquired, land-expropriated farmers shall be first provided with necessary cultivated land using mobile collective land, contracted land turned over by contractors and cultivated land arising from land development so that they continue to pursue agricultural production. (6) Reemployment resettlement. Conditions shall be created actively to provide free labor skills training to land-expropriated farmers and place them to corresponding jobs. Under equal conditions, land users shall first employ land-expropriated farmers. When rural collective land within urban planning areas is acquired, land-expropriated farmers shall be included in the urban employment system and a social security system established for them. (7) Dividend distribution resettlement. When any land with long-term stable income is to be used for a project, the affected rural collective economic organization may become a project shareholder with compensation fees for land acquisition or rights to use construction land in consultation with the land user. The rural collective economic organization and rural households will receive dividends as agreed. (8) Non-local resettlement. If basic production and living conditions are not available locally to land-expropriated farmers, non-local resettlement may be practiced under the leadership of the government in consultation with the rural collective economic organization and rural households. Article 2 “About land acquisition procedures”: (9) Notification of land acquisition. Before land acquisition is submitted for approval, the local land and resources authority shall notify the affected rural collective economic organization and rural households of the use, location, compensation rate and resettlement mode of the land to be acquired in writing. After that, any ground attachment or young crop built or grown by the affected rural collective economic organization and rural households thereon shall not be compensated for. (10) Verification of survey results. The local land and resources authority shall investigate the ownership, type and size of the land to be acquired, and the ownership, types and quantities of ground attachments, and the investigation results shall be confirmed together with the affected rural collective economic organization, rural households and proprietors of ground attachments. (11) Hearing on land acquisition. Before land acquisition is submitted for approval, the local land and resources authority shall notify the affected rural collective economic organization and rural households of the right of application for hearing on the compensation rate and the mode of resettlement. In case of application for hearing, hearing shall be organized pursuant to the applicable procedures and requirements.  Notice of the Ministry of Land and Resources on Further Improving Land Acquisition Management (1) Apply uniform AAOV rates and location-based composite land prices for land acquisition in all aspects. Fixing uniform AAOV rates and location-based composite land prices for land acquisition are an important measure for improving land acquisition compensation mechanism and realizing equal price for equal land, and also an essential requirement for increasing compensation rates for land acquisition, and protecting farmers’ rights and interests. These rates shall be complied with strictly for rural collective land acquired for all types of construction. For any new construction project, strict control

20 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project shall be exercised upon land use pre-examination to ensure that land acquisition compensation fees are calculated according to the published uniform AAOV rates and location-based composite land prices for land acquisition, and are included in the budgetary estimates in full. If the construction land is located in an area with the same AAOV or location-based composite land price, the level compensation for land acquisition shall be largely consistent, so as to realize equal compensation for equal land. (2) Explore and improve depository systems for land acquisition compensation fees. In order to prevent the default of land acquisition compensation fees, and ensure that compensation fees are made available timely and fully, all localities shall explore and improve depository systems for land acquisition compensation fees. When organizing land approval, a municipality or county shall estimate land acquisition compensation fees according to the size and compensation rate of land acquisition, and the land use applicant shall deposit land acquisition compensation fees in advance; for urban construction land and land for any construction project selected separately in the mode of transfer, the local government shall deposit land acquisition compensation fees in advance. After the land use has been approved according to law, the deposited land acquisition compensation fees shall be settled timely. (3) Distribute land acquisition compensation fees rationally. After uniform AAOV rates and location-based composite land prices for land acquisition are practiced, province-level land and resources departments shall establish sound measures for the distribution of land acquisition compensation fees together with the departments concerned, and submit them to province-level governments for approval provided compensation fees for land acquisition should be used mainly on land-expropriated farmers. Upon land acquisition, municipal and county land and resources departments shall pay compensation and resettlement fees timely and fully according to determined compensation and resettlement programs for land acquisition; fees payable to land-expropriated farmers shall be paid directly to individual farmers, and the withholding or embezzlement of compensation and resettlement fees for land acquisition shall be prevented or corrected timely. (4) Give priority to agricultural resettlement. All localities shall adopt effective resettlement modes suited to local conditions. In rural areas where cultivated land has been added through land management or much mobile land is reserved by rural collective economic organizations, priority shall be given to the mode of agricultural resettlement upon land acquisition, where newly added cultivated land or mobile land shall be allocated to land-expropriated farmers so that they are able to maintain basic production conditions and income sources. (5) Regulate resettlement on reserved land. Where land acquisition is conducted within the range of urban construction land identified in a master plan for land utilization, the resettlement mode on reserved land may be adopted based on local conditions. However, guidance and management shall be strengthened. Reserved land shall be provided in the range of urban construction land and converted into state-owned land; where farmland conversion is involved, it shall be included in annual land utilization plans to prevent expanding the size of urban construction land due to resettlement on reserved land; reserved land development shall comply with the urban construction plan and pertinent provisions. In areas where resettlement on reserved land is practiced, local governments shall develop strict administrative measures to ensure that reserved land is arranged normatively and orderly, and developed and utilized scientifically and rationally. (6) Ensure social security funds for land-expropriated farmers are available. Including land-expropriated farmers in the social security system is an effective way of solving the long-term livelihood problem of land-expropriated farmers. Land and resources departments at all levels shall promote the building of the social security system for land-expropriated farmers together with the departments concerned under the leadership of local governments. Presently, the key to the social security for land-expropriated farmers is to secure social security funds. All localities are encouraged to expand sources of social security funds from land users in conjunction with compensation and resettlement for land acquisition. During land use examination and approval, all localities shall control the availability of social security funds for land-expropriated farmers.  Relevant provisions of the Measures of Anhui Province for the Implementation of the Land Administration Law of the PRC Article 25 If any organization or individual needs to use land for construction, it shall go through land use approval formalities according to law. Article 27 If any construction project is to occupy state-owned unused land identified in the master land utilization plan, except otherwise approved by the State Council, such project shall be reported to the provincial people’s government for approval if the occupied area exceeds 4 ha or the municipal or

21 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project county people’s government for approval if the occupied area does not exceed 4 ha. Article 33 Land acquisition shall be handled as follows: (1) Drafting a land acquisition plan and submitting it for approval. The land administrative authorities of a municipal or county people’s government shall draft a plan for use of farmland for other purposes, a farmland replenishment plan, a land acquisition plan and a land supply plan to the municipal or county people’s government for approval, and escalate them to people’s governments with approval authority for approval. In case of acquisition of woodland, the consent of the woodland administrative authorities shall be obtained in advance. (2) Announcement of land acquisition plan. After the land acquisition plan has been approved according to law, the municipal or county people’s government shall disclose the approval authority, approval document number, acquired land’s use, range and area, land compensation rates, resettlement measures of agricultural population and deadline of land compensation in the affected township and village. (3) Compensation registration. The owner and user of the acquired land shall go through the land compensation registration formalities carrying the certificate of land ownership or any other valid certificate with the competent authority for land administration of the municipal or county people’s government within 15 days of announcement. (4) Announcement of land compensation and resettlement program. The competent authority for land administration of the municipal or county people’s government shall draft a land compensation and resettlement program together with other competent authorities according to the approved land acquisition plan, and publish it in the affected township and village to collect comments from the affected rural collective economic organization and farmers for a period of 15 days; after the land compensation and resettlement program has been approved by the municipal or county people’s government, it shall be implemented by the competent authority for land administration of the municipal or county people’s government. If there is any dispute over the compensation rates, such dispute shall be mediated by the county level or above people’s government; failing this, such dispute shall be arbitrated by the people’s government approving land use. (5) Handover of the acquired land. All land acquisition costs shall be paid in full within 3 months of approval of the land compensation and resettlement program. The owner and user of the acquired land shall hand over the acquired land within 30 days of payment. In case of acquisition of farmer contracted land, the land contract change formalities shall be settled according to law…… Article 34 Land compensation standards for acquisition of land other than arable land: (1) For fishponds, etc., 6 times the annual average output value of the preceding 3 years; (2) For orchards, etc., 7 times the annual average output value of the preceding 3 years; in case of no harvest, 6 times the annual average output value of similar land of the preceding 3 years; (3) For reclaimed land which has been cultivated for less than 3 years, 3-4 times the annual average output value of the arable land of the same village (group) of the preceding 3 years; for reclaimed land which has been cultivated for 3 years or more, the same as arable land; (4) Land used for construction collectively owned by farmers, 4-5 times the annual average output value of the arable land of the same village (group) of the preceding 3 years; (5) For other land, 2-3 times the annual average output value of the arable land of the same village (group) of the preceding 3 years. The compensation standards for woodland shall be governed by the applicable laws and regulations. Article 35 Resettlement subsidy standard for every farmer to be resettled: (1) For acquisition of farmland, 3-4 times the annual average output value of the preceding 3 years; (2) For land used for construction collectively owned by farmers, 2-3 times the annual average output value of the arable land of the same village (group) of the preceding 3 years; For barren hills and slopes, no resettlement subsidy is paid. Article 36 If the farmers to be resettled are unable to maintain their former standard of living, with the approval of the provincial people’s government, the resettlement subsidy may be increased. However, the sum of the land compensation and the resettlement subsidy shall not exceed 30 times the annual average output value of the preceding 3 years of the acquired arable land. Depending on social and economic development, the provincial people’s government may increase land compensation and resettlement subsidy rates for land other than farmland in special circumstances. ……

22 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project Article 37 Compensation rates for young crops and attachments on the acquired land: (1) Young crops on the acquired farmland shall be compensated for at the output value of the current season; perennial crops shall be compensated for at annual output value; no compensation shall be granted if there is no young crop. (2) No compensation shall be granted if fish fries have been bred for 2 years or more; the compensation shall be 3-4 times breeding costs if fish fries have been bred for less than 2 years. (3) Timber forests, shelter forests and special-purpose forests with an average trunk diameter of over 20cm shall be compensated for at 10%-20% of the value of the actual volume; those with an average trunk diameter of 5-20cm shall be compensated for at 60%-80% of the value of the actual volume. (4) Nursery stocks, economic forests and firewood forests shall be compensated for at twice the annual average output value of the past 3 years; those without output value yet shall be compensated for at twice the actual investment in forestation. Sapling forests and new forests shall be compensated for at twice the actual investment. (5) The compensation rates for houses and other attachments shall be stipulated by the provincial people’s government. Article 38 Where state-owned farming, forestry, stockbreeding or fishery land is approved for nonagricultural construction, such land shall be compensated for by reference to Article 47 of the Land Administration Law and Articles 34 and 37 of these Measures. Article 42 After the farmland of a rural collective economic organization has been acquired and all its members have been turned into urban residents, the remaining land shall be owned by the state and used by the former rural collective economic organization; when such land is occupied by any construction project, the former rural collective economic organization shall be compensated according to the measures and criteria for land acquisition. Article 43 One rural household can have one housing site only. The housing site area for residential house construction by rural residents shall be as follows: (1) Not more than 160 m2 per household for suburbs, rural towns and markets; (2) Not more than 220 m2 per household for the Huaibei Plain; and (3) Not more than 160 m2 per household for mountain and hilly areas; not more than 300 m2 per household if barren mountain or land is used for residential house construction. Article 44 A rural resident who meets one of the following conditions may apply for the use of housing site: (4) Its former housing site has been acquired according to law;……  Relevant provisions of the Notice of the Anhui Provincial Government on Adjusting the Compensation Rates for Land Acquisition of Anhui Province 1. From May 15, 2012, the new compensation rates shall apply to land compensation fees and resettlement subsidies for collective land in our province. If the construction land is within an area of the same AAOV rate or composite location-based land price, the compensation rate shall be consistent. The compensation rates for land acquisition for large and medium-sized water resources and hydropower projects shall be based on the pertinent provisions of the State Council. Municipal and county governments may increase compensation rates for special types of land based on local conditions. 2. Where land of a state-owned farm (forest farm, pasture or fishing ground), the local composite location-based land price of the affected Xiang (town/sub-district) shall apply; if such farm (forest farm, pasture or fishing ground) crosses different areas, the highest land price shall apply. 3. Municipal and county governments shall ensure smooth transition between the old and new compensation rates, strengthen policy publicity and explanation, and solve issues arising from implementation properly. If land acquisition has been approved, and the compensation and resettlement program has been announced by the municipal or county government before the application of the new rates, the announced rate shall apply. 4. The compensation rates for land acquisition of different municipalities and counties shall be fixed by the provincial government in a unified manner, and subject to adjustment every two years. Each municipal government shall develop compensation rates for houses, other attachments and young crops on acquired land based on local conditions, and submit to the provincial department of land and resources for reference before implementation.

23 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project  Relevant provisions of the Compensation and Resettlement Measures for Land Acquisition of Ma’anshan Municipality Article 13 Acquired land shall be compensated for at composite location-based land price. The composite location-based land price consists of land compensation fees and a resettlement subsidy, in which land compensation fees account for 40%, and the resettlement subsidy (including the basic endowment insurance fund for LEFs) accounts for 60%. Article 14 Land compensation fees shall be paid and used as follows: If the acquired land is owned by village collective economic organization, a special financial account shall be established, to be managed by the township government and the sub-district office, and used by the owner. If such land is owned by a village group, 70% of land compensation fees shall be distributed to the resettled persons by the collective economic organization for their production and living expenses, and the remaining 30% included in the public accumulation fund of the village collective economic organization, to be used and managed under the supervision of the district government (Administrative Committee of Cihu Hi-tech Development Zone). Article 15 The agricultural population to be resettled shall be determined by dividing the amount of cultivated area to be acquired by the per capita cultivated area of the affected organization before land acquisition. The population of the affected organization shall be its registered agricultural population eligible for resettlement before the date of the land acquisition announcement, and the cultivated area of the affected organization before land acquisition shall be based on the survey results of the land and resources department. Cultivated land refers to vegetable plots, irrigated land, non-irrigated land, and land for cash crops. Intensive breeding fishponds (including fry ponds) are counted as cultivated land. Article 18 Upon land acquisition, the balance of resettlement subsidies after the payment of the following costs shall be contributed by district government into the municipal special account of the basic endowment insurance fund for LEFs: (1) Any LEF under 16 years shall be paid a support subsidy of 12,000 yuan at a time; (2) Any LEF having attained 16 years shall be paid a self-employment subsidy of 15,000 yuan at a time; (3) Any LEF without a regular job or stable income, LEF under 16 years and not to be resettled, or college or high school student shall be paid a living subsidy of 8,000 yuan at a time.  Relevant provisions of the Rules for the Implementation of the Compensation and Resettlement Measures for Land Acquisition of Ma’anshan Municipality VII. Compensation and resettlement for land acquisition 14. Compensation fees for land acquisition Compensation fees for land acquisition include land compensation fees, support subsidies, self-employment subsidies, young crop compensation fees, living subsidies for college or high school students, and living subsidies for resettled persons under 16 years. 15. Distribution and calculation of land compensation fees According to Article 14 above, each eligible member of the affected collective economic organization shall receive consistent land compensation fees. In practice, 28% of the composite location-based land price for land acquisition shall be calculated assuming that all land of the village group is acquired as a basis of compensation. If the compensation rate at 28% of the composite location-based land price is insufficient to pay land compensation fees, the balance shall be disbursed from 30% of land compensation fees reserved by the village collective (namely 12% of the composite location-based land price) and contingencies for land acquisition. If this is still insufficient, the balance shall be paid by the land user. If land compensation fees have any balance based on 28% of the composite location-based land price, such balance shall be distributed evenly among the affected population. 16. Determination of population to be resettled and distribution of resettlement subsidies (1) Determination of population to be resettled Population to be resettled = acquired cultivated area (mu) ÷ per capita cultivated area at land acquisition announcement (mu) (cultivated area of the affected village collective economic organization before land acquisition ÷ number of eligible members of the collective economic organization at land acquisition announcement) The calculated population shall be rounded up or down. (2) Persons to be resettled shall be identified as follows:

24 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project ① If all contracted land of a household is acquired, all members of such household shall be resettled; ② If the contracted land of a household is partly acquired but per capita cultivated area is less than 0.3 mu or over 70% of such household’s contracted land is acquired, and such household is willing to give up the remaining contracted land to the collective economic organization for reallocation, all members of such household shall be resettled. The list of persons to be resettled shall be first proposed by the village committee, disclosed in the affected village group for not less than 5 days, reviewed and submitted to higher authorities by the township government and the sub-district office within 3 working days, reexamined by the district government within 4 working days, and then submitted to the municipal land acquisition and house demolition office for reference, which shall give feedback within 5 working days. For registered persons to be resettled, the public security, and labor and social security departments shall go through the household registration conversion and endowment insurance formalities timely. (3) Distribution of resettlement subsidies If 60% of the composite location-based land price is insufficient to pay support subsidies, self-employment subsidies, living subsidies for college or high school students, and living subsidies for resettled persons under 16 years, the balance shall be paid by the land user. If resettlement subsidies have any balance based on 60% of the composite location-based land price, such balance shall be fully turned over to the municipal special account of the basic endowment insurance fund for LEFs. 17. Payment of costs The land user shall pay land acquisition costs to the special account designated by the district government according to the approved Announcement of Compensation and Resettlement program for Land Acquisition, to be distributed to the affected villages by the district land acquisition and house demolition office. VIII. Collection and payment of the basic endowment insurance fund for LEFs 19. Collection of the basic endowment insurance fund for LEFs Upon land acquisition, compensation fees for land acquisition calculated from acquired land area and composite location-based land price shall be first used to pay support subsidies, self-employment subsidies, living subsidies for college or high school students, and living subsidies for resettled persons under 16 years, and the balance of resettlement subsidies shall be paid by the district government into the municipal special account of the basic endowment insurance fund for LEFs after approval by the municipal government. In practice, the district government shall establish a special account of compensation fees for land acquisition, and village groups shall keep accounts separately to realize an overall balance of distribution and withdrawal of compensation fees among the affected village groups. The municipal finance, and labor and social security departments shall check accounts on the basic endowment insurance fund for LEFs with each district government at each year end to ensure full contribution. 20. Payment of basic pension for LEFs Each LEF having attained 60 years for men or 55 years for women included in the basic endowment insurance system for LEFs shall be paid a pension of 180 yuan per capita per month. IX. Participation of LEFs in employment training and medical insurance 21. Unemployed LEFs may be registered for unemployment at the district public employment service agency and receive an employment service card as a basis of entitlement to free job referral and a one-time vocational training subsidy. Funds for employment support and free employment services for LEFs shall be disbursed from reemployment funds. 22. If an LEF participates in medical insurance for urban residents voluntarily after conversion into urban status, he/she shall get registered at the community committee for this purpose.  Relevant provisions of the Interim Measures for Basic Endowment Insurance for Land-expropriated Farmers of Ma’anshan Municipality Article 2 A basic endowment insurance fund for LEFs shall be established, consisting of a pooling fund and an individual account fund, and included in the special financial account, to be used specially for basic endowment insurance for LEFs. Article 3 The pooling fund shall be from the following sources: (1) Fees collected on acquired land: 30 yuan/m2 for administratively allocated land, 20 yuan/m2 for transferred land (10 yuan/m2 for industrial land);

25 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project (2) 15% of compensation fees for acquired land (50% of the amount retained by the collective); (3) 20% of use fees of additional construction land retained at the municipal level; (4) 50% of the development and construction land for newly acquired vegetable plots; and (5) Other funds available The pooling fund shall be collected by the municipal and district land and resources bureaus at the above proportions. Article 4 The amount contributed voluntarily by an LEF and interests thereon shall form the individual account fund. Individual contribution level may be 6,000 yuan or 9,000 yuan, at the option of LEFs. Article 7 Any LEF participating in basic endowment insurance shall receive a basic pension from the next month of attaining 60 years for men or 55 years for women. If any LEF has attained or exceeded the above age before the effective date of these Measures, basic pensions shall be paid from the month in which these Measures come into effect. If any LEF has attained or exceeded the above age upon land acquisition in the future, basic pensions shall be paid from the month following the receipt of the Registration Certificate of Basic Endowment Insurance for LEFs of Ma’anshan Municipality.  Bank policy on involuntary resettlement 10. The implementation of resettlement activities is linked to the implementation of the investment component of the project to ensure that displacement or restriction of access does not occur before necessary measures for resettlement are in place. For impacts covered in para. 3(a) of this policy, these measures include provision of compensation and of other assistance required for relocation, prior to displacement, and preparation and provision of resettlement sites with adequate facilities, where required. In particular, taking of land and related assets may take place only after compensation has been paid and, where applicable, resettlement sites and moving allowances have been provided to the displaced persons. For impacts covered in para. 3(b) of this policy, the measures to assist the displaced persons are implemented in accordance with the plan of action as part of the project. 11. Preference should be given to land-based resettlement strategies for displaced persons whose livelihoods are land-based. These strategies may include resettlement on public land, or on private land acquired or purchased for resettlement. Whenever replacement land is offered, resettlers are provided with land for which a combination of productive potential, locational advantages, and other factors is at least equivalent to the advantages of the land taken. If land is not the preferred option of the displaced persons, the provision of land would adversely affect the sustainability of a park or protected area,16 or sufficient land is not available at a reasonable price, non-land-based options built around opportunities for employment or self-employment should be provided in addition to cash compensation for land and other assets lost. The lack of adequate land must be demonstrated and documented to the satisfaction of the Bank. 15. Criteria for Eligibility. Displaced persons may be classified in one of the following three groups: (a) those who have formal legal rights to land (including customary and traditional rights recognized under the laws of the country); (b) those who do not have formal legal rights to land at the time the census begins but have a claim to such land or assets—provided that such claims are recognized under the laws of the country or become recognized through a process identified in the resettlement plan; and (c) those who have no recognizable legal right or claim to the land they are occupying.

4.3 Key Differences between Bank Policies and PRC Laws

Compensation and resettlement of vulnerable groups  Difference: Bank policies require that special compensation is granted to all vulnerable groups, especially seriously affected households faced with impoverishment. Chinese provisions do not require social analysis, and compensation is based only on the  Solution: Special funds are available to assist the vulnerable groups, who will be identified during the DMS. Consultation and disclosure  Difference: Bank policies require APs are fully informed and consulted as soon as possible. Although there are measures for announcement of land acquisition in China, the period of announcement is usually short, so that APs are often unable to participate effectively.

26 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project  Solution: Consultation has begun at the early stage (before and during the technical assistance). The PMO agrees to disclose the RAP and provide the RIB to APs as required by the Bank. Legal title  Difference: Bank policies require all demolished houses, whether lawful or not, should be compensated for. According to Chinese laws, no compensation should be provided for the acquisition of illegally owned land and houses.  Solution: For an Bank financed project, all APs, whether lawful or not (before the cut-off date), whether having legal title or not, will be provided with compensation or assistance. Resettlement monitoring, evaluation and reporting  Difference: Bank requires that internal and external resettlement monitoring be conducted. However, there is no such requirement in Chinese laws, expect for reservoir projects.  Solution: Internal and external resettlement monitoring mechanisms have been established for all Bank financed projects, and this has been included in the RAP.

4.4 Resettlement Policies of the Project

The resettlement policies applicable to the Project have been developed in accordance with the policies of the PRC, the Anhui Provincial Government, the Ma’anshan Municipal Government and the Bank on resettlement. The criteria for entitlement and property appraisal, and compensation rates specified in these policies should not be altered without the approval of the Bank. According to the existing design, the main impacts of the Project are land acquisition and occupation, to which the following policies apply:

4.4.1 Policy on Compensation for Collective Land Acquisition and Labor Resettlement

In the Project, compensation for acquisition of collective land and labor resettlement shall be based on the following principles: (1) Acquired land shall be compensated for at composite location-based land price. The composite location-based land price consists of land compensation fees and a resettlement subsidy, in which land compensation fees account for 40%, and the resettlement subsidy (including the basic endowment insurance fund for LEFs) accounts for 60%. (2) Land compensation fees shall be paid and used as follows: If the acquired land is owned by village collective economic organization, a special financial account shall be established, to be managed by the township government and the sub-district office, and used by the owner. If such land is owned by a village group, 70% of land compensation fees shall be distributed to the resettled persons by the collective economic organization for their production and living expenses, and the remaining 30% included in the public accumulation fund of the village collective economic organization, to be used and managed under the supervision of the district government (Administrative Committee of Cihu Hi-tech Development Zone). (3) Payment and usage of resettlement subsidies Upon land acquisition, resettlement subsidies shall be paid and used as follows: 1) Any LEF under 16 years shall be paid a support subsidy of 12,000 yuan at a time; 2) Any LEF having attained 16 years shall be paid a self-employment subsidy of 15,000 yuan at a time; 3) Any LEF without a regular job or stable income, LEF under 16 years and not to be resettled, or college or high school student shall be paid a living subsidy of 8,000 yuan at a time. 4) The balance of resettlement subsidies after above payments shall contribute into the municipal special account of the basic endowment insurance fund for LEFs. (4) Labor resettlement policy The agricultural population to be resettled shall be determined by dividing the amount of cultivated area to be acquired4 by the per capita cultivated area of the affected organization before land

4 Cultivated land refers to vegetable plots, irrigated land, non-irrigated land, and land for cash crops. Intensive breeding fishponds (including fry ponds) are counted as cultivated land. 27 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project acquisition. The population of the affected organization shall be its registered agricultural population eligible for resettlement before the date of the land acquisition announcement, and the cultivated area of the affected organization before land acquisition shall be based on the survey results of the land and resources department. For the agricultural population approved for resettlement, the public security department shall go through the household registration conversion formalities timely to include them in the basic endowment insurance system for LEFs, urban employment service system and medical insurance system for urban residents. If the per capita income of a household is less than the MLS standard for urban residents, the MLS system for urban residents shall apply.

4.4.2 Policy on Permanent Occupation of State-owned Land

A certain land use cost should be paid for the state-owned construction land occupied for the Project. According to benchmark land prices promulgated by the Ma’anshan Municipal Government, the compensation rate for the project area is 225,300 yuan/mu.

4.4.3 Compensation Policy for Vulnerable Groups

In addition to the above compensation policies for LA, affected vulnerable groups are also entitled to the following preferential policies:

 Laborers in vulnerable households will be provided with occupational training, and employment information and guidance in order to increase their job opportunities.  During project construction, laborers in vulnerable households will have priority in being employed for unskilled jobs.  The agency responsible for relocation shall do its best to aid and support the relocation of households falling into vulnerable groups.

4.4.4 Supporting Measures for Women

In addition to the above compensation policies for LA, women are also entitled to the following special supporting policies: (1) Women will have priority in employment, and at least 30% of them will receive unskilled jobs; (2) Women will have priority in receiving free skills training for not less than 5,000 men-times (50%); (3) Women will receive relevant information during resettlement, and are able to participate in resettlement consultation; a special FGD for women will be held to introduce resettlement policies and improve their awareness;

4.4.5 Compensation Policy for Young Crops and Ground Attachments

Young crops and ground attachments affected by the Project will be compensated for as follows: (1) Compensation for young crops and trees Young crop compensation fees will be the output value of young crops per harvest multiplied by the actual cultivated area at LA. For scattered rare or ornamental trees that can be transplanted, a transplantation subsidy will be paid; those that cannot be transplanted shall be compensated for as appropriate. Scattered trees shall be compensated for based on actual value. (2) Compensation for ground attachments Farmland irrigation and electromechanical drainage facilities that need to be reconstructed will be reconstructed by the land user; for electricity, broadcast and communication facilities, and other attachments that can be moved, a moving subsidy shall be paid; attachments that do not have to be reconstructed or cannot be moved shall be compensated for at replacement cost.

28 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project 5 Compensation Rates

The compensation rates for different impacts of the project have been fixed according to the above legal framework, and by reference to the policies of the PRC, the Anhui Provincial Government, the Ma’anshan Municipal Government and the World Bank on resettlement.

5.1 Compensation Rates for Acquisition of Rural Collective Land

The compensation rates for the collective land acquired for the Project have been determined in accordance with the Land Administration Law of the PRC, Guidelines on Improving Compensation and Resettlement Systems for Land Acquisition, Measures of Anhui Province for the Implementation of the Land Administration Law of the PRC, and the Notice of the Anhui Provincial Government on Adjusting the Compensation Rates for Land Acquisition of Anhui Province (APG [2012] No.67). See Table 5-1. Table 5-1 Composite Location-based Land Prices for LA Compensation rate for LA (yuan/mu) Municipality District Township Village Land compensation Resettlement Composite rate fees subsidy Huoli 49000 19600 29400 Huashan Huoli Qianjin 55000 22000 33000 District Sub-district Suli 49000 19600 29400

Ma’anshan Fengshou 55000 22000 33000 Linli 60000 24000 36000 Tailai 60000 24000 36000 Jinjiazhuang Shuyi 60000 24000 36000 Cihu Xiang District Caicun 60000 24000 36000 Tongyi 60000 24000 36000 Shanghu 55000 22000 33000

5.2 Compensation Rates for Permanent Occupation of State-owned Land

According to the Updated Benchmark Land Prices of Urban Land of Ma’anshan Municipality, the project area belongs to a Level-4 industrial land, with a compensation rate of 225,300 yuan/mu.

5.3 Compensation Rates for Young Crops and Ground Attachments

Affected special facilities will be compensated for or rebuilt as required according to the former function, size and standard, and those that cannot be rebuilt will be compensated for at replacement cost. Ground attachments affected by the Project will be compensated for directly at replacement cost. See Table 5-2 Compensation Rates for Ground Attachments

Compensation rate Type Spec. / variety Unit (yuan/unit) Vegetables Special vegetables mu 1400 Young crops Food and oil crops Paddy rice, wheat, etc. mu 1200 <10cm / 20 10-20cm / 50 Scattered Ordinary trees 20-30cm / 80 trees 30-40cm / 150 >=40cm / 200 Standard waste pools / / 600 Bridges, Steel frame, incl. film mu 4000 canals, etc. Greenhouses Bamboo frame, incl. film mu 2000 . 29 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project Table 5-2 Compensation Rates for Ground Attachments Compensation rate Type Spec. / variety Unit (yuan/unit) Vegetables Special vegetables mu 1400 Young crops Food and oil crops Paddy rice, wheat, etc. mu 1200 <10cm / 20 10-20cm / 50 Scattered Ordinary trees 20-30cm / 80 trees 30-40cm / 150 >=40cm / 200 Standard waste pools / / 600 Bridges, Steel frame, incl. film mu 4000 canals, etc. Greenhouses Bamboo frame, incl. film mu 2000

5.4 Other Costs

See Table 5-3. Table 5-3 Rates of Other Costs No. Item Rate Basis Finance Rural [2008] 1 Farmland occupation tax 25000 yuan/mu No.367 2 Water resources fund 500 yuan/mu APG [2000] No.3 3 Farmland reclamation costs 9 yuan/m2 4 LA management costs 4% of total LA costs 5 Land surveying costs 40 yuan/mu 6 Administrative costs 5% of total LA costs 7 Skills training costs 1% of total LA costs 8 External M&E costs 0.5% of total LA costs 9 Additional farmland quota costs 40,000 yuan/mu 10 Use fees of additional construction land 6 yuan/m2 10% of the sum of basic LA costs, 11 Contingencies design costs, LA management costs, training costs, and M&E costs

30 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project 6 Production and Livelihood Restoration Programs for APs

The resettlement objective of the Project is to ensure that the APs can receive full compensation for their losses, reasonable resettlement and satisfactory restoration, enable them to share the benefits of the project and assist them in temporary difficulties, so that their income level and standard of living, and the affected enterprises’ production capacity and profitability are improved or at least restored, in real terms, to pre-displacement levels or to levels prevailing prior to the beginning of project implementation, whichever is higher. According to the applicable policies and the consultation with the APs, MPMO has developed compensation and resettlement programs for the APs.

6.1 Objective of Resettlement

To ensure that the APs can receive full compensation for their losses, reasonable resettlement and satisfactory restoration, enable them to share the benefits of the Project and assist them in temporary difficulties, so that their income level and standard of living, and the affected enterprises’ production capacity and profitability are improved or at least restored, in real terms, to pre-displacement levels or to levels prevailing prior to the beginning of project implementation, whichever is higher.

6.2 Principles for Resettlement

1. Principle of minimizing resettlement Since the Project is in a belt form, the design route may be modified appropriately to minimize the resettlement impacts of the Project. 2. Principle of equivalent compensation To ensure that APs’ standard of living is not reduced due to project implementation, the principle of equivalent compensation will apply, which has two aspects: compensating for properties at replacement cost and for other losses on an equivalent basis. 3. Principle of key concern 1) The Project will pay attention to vulnerable groups (old people not living together with adult children, widows, single-parent families, the disabled, chronic patients and the poor). During relocation, they will be offered preferential policies in housing and employment, etc. After relocation, they will be visited regularly and assisted in special difficulties until handover to local civil affairs authorities. 2) Developmental relocation will be planned and local government forces utilized to give employment training to APs and create job opportunities for them so that they can adapt to the environment of the resettlement site and become self-reliant economically, and the responsibility of resettlement is transferred from the resettlement agencies to APs themselves. 3) The Project will pursue maximum resettlement cost-effectiveness, endeavor to improve the resettlement capacity of the resettlement agencies, regulate resettlement behavior and establish a sound internal control mechanism to prevent the waste and retention of funds, make good use of resettlement funds and attain the best resettlement effects. 6.3 Permanent Acquisition of Collective Land 6.3.1 Impact Analysis

1,253.89 mu of collective land will be acquired for the Project, all being cultivated land and excluding basic farmland, in which 116.95 mu is collectively owned and the remaining 1,136.94 mu contracted by households, affecting 552 households with 1,714 persons in 34 groups of one township in one district. According to the socioeconomic survey, a comparative analysis has been made on the cultivated areas of the 34 affected village groups before and after LA. 13 groups have a land loss rate of less than 10%, 10 groups have a land loss rate of 10%-20%, and 11 groups have a land loss rate of 20% or more. In terms of income losses, 22 village groups have an income loss rate of less than 10%, 11 have an income loss rate of 10-20%, and one has an income loss rate of 20% or more. See Table 6-1 for LA impacts and Table 6-3 for detailed impacts.

31 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project Table 6-1 Summary of LA Impacts Number of village groups Land loss rate LA Income loss <10% 13 22 10%-20% 10 11 >=20% 11 1 Subtotal 34 34

Among the village groups with a land loss rate of over 10%, agriculture is no longer a main income source, crops on land are for self-consumption mainly, and local laborers earn income by outside employment mainly. LA will not affect local villagers’ income greatly. The survey team has learned that villagers generally expect sufficient, reasonable cash compensation and proper training so that they will have more opportunities to work in town. It can be seen that although 11 village groups have a land loss rate of 20% or more, only one group has an income loss rate of 20% or more, because some of the 10 villages affected by the Project are located in the outskirts, and there is a small amount of remaining cultivated land due to past urbanization or village-to-community conversion activities, so that the Project has little impact on the AHs’ actual income. For example, in Group 13 of Shuyi Village and Shadi Group of Tongyi Village where land loss rate is high, the survey team has learned from interviews that these two groups have limited cultivated land due to past LA activities. Since they are close to the urban area, crop cultivation is no longer a main income source, local laborers mostly work outside, and those farming at home are almost all old people and women, who cultivate crops for self-consumption mainly. Therefore, LA will not affect the income of local villagers greatly and they generally support LA. However, villagers expect reasonable cash compensation. Among the 10 affected villages, 5 villages have been converted into communities due to limited land, and the other 5 villages are expected to be urbanized in the near future though they still have some land. See Table 6-2.

Table 6-2 Classification of Affected Villages Type Village Remarks Tongyi There is almost no cultivated land. Shuyi Inclusion into the urban area (close to the urban area, Suli turned from villages into communities) Tailai Caicun Linli Shanghu Villages with relatively more land (far away from the Huoli urban area) Qianjin Fengshou

According to the socioeconomic survey and the public participation analysis, since the affected villages in the outskirts close to the urban area rely on agricultural production to a low extent and have limited land, most of the AHs choose cash compensation without land reallocation. Since the affected villages far away from the urban area still have some land, the AHs may choose either cash compensation or land reallocation as they wish.

32 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project Table 6-3 Summary of Acquired Cultivated Land

Per capita cultivated cultivated Per capita

Before LA After LA LA (mu) after area Land loss rate Income loss (yuan)

Affected population Affected

Per capita income income Per capita

Average loss per per loss Average

Household ratio Household

Population ratio Population

Per capita loss Per capita

# of households

Cultivated area Cultivated area Cultivated

loss rate

cultivated area cultivated

LA ratio

Annual loss Annual

households

household

Population

Per capita Per capita

Affected Affected

(mu) (mu) (mu) District Township Village Village group (%) (%)

11

7

(%)

(%)

9

8

10

6

5

Songmushan 180 460 450.8 0.98 9 31 66.75 0.83 5 6.74 14.81 100125 11125 3230 21.07 Linli Daijiazhuang 175 447 425.5 0.95 2 5 2 0.95 1.14 1.12 0.47 3000 1500 600 3.91 Xiao Yingwu 120 385 375.6 0.98 4 10 6.66 0.96 3.33 2.6 1.77 9990 2498 999 6.52 Jilai 99 370 150.5 0.41 12 38 15 0.37 12.12 10.27 9.97 22500 1875 592 3.86 Qianjilai 100 378 153 0.4 13 39 15 0.37 13 10.32 9.8 22500 1731 577 3.76 Tailai Xiaohuangzhou 95 370 150 0.41 35 108 42.95 0.29 36.84 29.19 28.63 64425 1841 597 3.89 Xinjian 103 381 148.5 0.39 36 109 42.95 0.28 34.95 28.61 28.92 64425 1790 591 4.78 Tongyi Shadi 504 1206 34.7 0.03 30 98 28.68 0.005 5.95 8.13 82.65 43020 1434 439 3.55 Yangqiao 300 920 217 0.24 55 167 61.45 0.169 18.33 18.15 28.32 92175 1676 552 4.46 Jinjiazhuang Cihu Xiang Caicun Guangming 291 887 193 0.22 4 12 2 0.215 1.37 1.35 1.04 3000 750 250 2.02 District Caicun 295 903 205 0.23 18 53 7.96 0.218 6.1 5.87 3.88 11940 663 225 1.82

Shuyi 7 Grou 8 5 9 16 10 18 11 1.1 12 2 13 8 14 91.3 15 0.5 16 47.2 17 51.8 49.92 137025 5270 1612 15.51 p 13 5 4 3 1 6 5 5 6 7 3 Qianshanghu 83 245 183.9 0.58 25 75 47.51 0.56 30.12 30.61 25.83 71265 2851 950 9.5 Houshanghu 89 269 187.2 0.83 13 43 23.9 0.61 14.61 15.99 12.77 35850 2758 834 8.34 Shanghu Xinzhuang 86 265 167.06 1.14 12 41 23.9 0.54 13.95 15.47 14.31 35850 2988 874 8.74 Yangshang 81 243 145.27 0.6 9 30 17.25 0.53 11.11 12.35 11.87 25875 2875 863 8.63 Yange 79 249 141.3 0.57 10 32 17.23 0.5 12.66 12.85 12.19 25845 2585 808 8.08

5 Household ratio = number of affected households / total number of households 6 Population ratio = affected population / total affected 7 LA ratio = amount of land acquired / total amount of cultivated land X 100 8 Annual loss = AAOV × amount of cultivated land acquired (AAOV = 1,500 yuan/mu in the project area) 9 Average loss per household = total amount of annual loss / number of AHs 10 Average loss per capita = total amount of annual loss / number of APs 11 Per capita loss rate = per capita loss / per capita annual net income of farmers X 100 (per capita annual net income of farmers ranges from 10,000 yuan to 15,329 yuan in the project area) 33 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project

Per capita cultivated cultivated Per capita

Before LA After LA LA (mu) after area Land loss rate Income loss (yuan)

Affected population Affected

Per capita income income Per capita

Average loss per per loss Average

Household ratio Household

Population ratio Population

Per capita loss Per capita

# of households

Cultivated area Cultivated area Cultivated

loss rate

cultivated area cultivated

LA ratio

Annual loss Annual

households

household

Population

Per capita Per capita

Affected Affected

(mu) (mu) (mu) District Township Village Village group (%) (%)

11

7

(%)

(%)

9

8

10

6

5

Wangjiadian 124 365 213.69 0.59 13 40 23.9 0.52 10.48 10.96 11.18 35850 2758 896 8.96 Dongmeng 150 495 459.08 0.93 10 32 30 0.87 6.67 6.46 6.53 45000 4500 1406 13.68 Shitang 230 736 760 1.03 16 49 51 0.96 6.96 6.66 6.71 76500 4781 1561 15.19 Huoli Fengzhuang 135 486 438 0.9 32 97 99 0.7 23.7 19.96 22.6 148499 4641 1531 14.89 Xiaxi 78 273 315 1.15 14 44 56.25 0.95 17.95 16.12 17.86 84375 6027 1918 18.65 Zhongxi 119 405 440 1.09 14 43 56.25 0.95 11.76 10.62 12.78 84375 6027 1962 19.09 Sunqiandui 71 181 292 1.61 2 7 6 1.58 2.82 3.87 2.05 9000 4500 1286 11.4 Donghewan 74 143 305 2.13 2 6 5.5 2.09 2.7 4.2 1.8 8250 4125 1375 13.27 Huashan Huoli Qianjin Dongmiantou 61 162 310 1.91 4 11 7.5 1.87 6.56 6.79 2.42 11250 2813 1023 9.3 District Sub-district Zhongdong 65 175 333.5 1.91 7 22 12.85 1.83 10.77 12.57 3.85 19275 2754 876 7.97 Zhongxi 68 179 342.1 1.91 30 93 54.95 1.6 44.12 51.96 16.06 82425 2748 886 8.06 Sucun 65 130 130 1 14 42 38 0.71 21.54 32.31 29.23 57000 4071 1357 13.21 Suli Daicun 70 170 170 1 14 44 38 0.78 20 25.88 22.35 57000 4071 1295 12.61 Licun 70 160 160 1 18 59 57.5 0.64 25.71 36.88 35.94 86250 4792 1462 14.23 Fengqiao 113 312 183 0.59 16 51 30.27 0.49 14.16 16.35 16.54 45405 2838 890 8.66 Fengshou Sucun 114 315 186 0.59 23 68 40.2 0.46 20.18 21.59 21.61 60300 2622 887 8.63 Liqiao 116 322 191 0.59 10 30 17.23 0.54 8.62 9.32 9.02 25845 2585 862 8.38 Total 4458 13151 8739.7 552 1714 1136.94

34 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project

17.1.1 Resettlement Program

The project design has been demonstrated strictly to minimize resettlement impacts. During June-September 2012, the survey team conducted FGDs at all affected villages to discuss resettlement programs, and proposed the two modes of direct cash compensation and social security. 1) Notes (1) Determination of population to be resettled Population to be resettled = acquired cultivated area (mu) ÷ per capita cultivated area at LA announcement12 (mu) (2) Distribution and calculation of land compensation fees If the acquired land is owned by a village group, 70% of land compensation fees shall be distributed to the resettled persons by the collective economic organization for their production and living expenses, and each eligible member of the affected collective economic organization shall receive consistent land compensation fees. In practice, 1) 28% of the composite location-based land price for LA shall be calculated assuming that all land of the village group is acquired as a basis of compensation; 2) If the compensation rate at 28% of the composite location-based land price is insufficient to pay land compensation fees, the balance shall be disbursed from 30% of land compensation fees reserved by the village collective (namely 12% of the composite location-based land price) and contingencies for LA; 3) If this is still insufficient, the balance shall be paid by the land user; 4) If land compensation fees have any balance based on 28% of the composite location-based land price, such balance shall be distributed evenly among the affected population. (3) Distribution of resettlement subsidies Resettlement subsidies shall be used for support subsidies, self-employment subsidies, living subsidies for college or high school students, and basic endowment insurance for LEFs as follows: 1) If 60% of the composite location-based land price is insufficient to pay support subsidies, self-employment subsidies, living subsidies for college or high school students, and living subsidies for resettled persons under 16 years, the balance shall be paid by the land user; 2) If resettlement subsidies have any balance based on 60% of the composite location-based land price, such balance shall be fully turned over to the municipal special account of the basic endowment insurance fund for LEFs. (4) Collection and payment of the basic endowment insurance fund for LEFs The affected district government shall make contribution to the municipal special account of the basic endowment insurance fund for LEFs after the compensation and resettlement program for LA has been approved by the Ma’anshan Municipal Government as follows: The district government shall establish a special account of compensation fees for LA, and village groups shall keep accounts separately to realize an overall balance of distribution and withdrawal of compensation fees among the affected village groups. The municipal finance, and labor and social security departments shall check accounts on the basic endowment insurance fund for LEFs with each district government at each year end to ensure full contribution. Each LEF having attained 60 years for men or 55 years for women included in the basic endowment insurance system for LEFs shall be paid a pension of 240 yuan per capita per month. (5) Participation of LEFs in employment training and medical insurance Unemployed LEFs may be registered for unemployment at the district public employment service agency and receive an employment service card as a basis of entitlement to free job referral and a one-time vocational training subsidy. Funds for employment support and free employment services for LEFs shall be disbursed from reemployment funds. If an LEF participates in medical insurance for urban residents voluntarily after conversion into urban status, he/she shall get registered at the community committee for this purpose. 2) Overall resettlement program According to FGDs and interviews with APs, the two types of affected villages have different

12Per capita cultivated area at LA announcement = total cultivated area of the affected rural collective economic organization before LA ÷ total number of members eligible for resettlement at LA announcement 35 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project resettlement modes. Since the affected villages in the outskirts close to the urban area rely on agricultural production to a low extent and have limited land, most of the AHs choose cash compensation without land reallocation. Since the affected villages far away from the urban area still have some land, the AHs may choose either cash compensation or land reallocation as they wish. AHs with remaining land will continue to grow cash crops on land or work outside to earn stable income. Therefore, the livelihood restoration measures of the Project mainly include: 1) The AHs use remaining land for cash crop cultivation or work outside after receiving compensation, and use compensation for sideline operations or small commodity marketing; 2) Eligible LEFs will be included in basic endowment insurance for LEFs; 3) Affected laborers will receive free skills training and employment information. See Table 6-4. Table 6-4 Resettlement Program for Collective LA Resettlement mode Affected population Agricultural resettlement on remaining land or Endowment insurance for LEFs nonagricultural resettlement 1714 1714 1714

a) Direct cash compensation and agricultural resettlement on remaining land The villages affected by the Project are located beside the Cihu River. Before LA under the Project, all affected village groups had developed practices on the distribution of compensation fees for LA, and will continue to apply to the Project. The Project will affect the village groups to low extents, and all village groups have remaining land for agricultural production. b) Basic endowment insurance for LEFs According to the Interim Measures for Basic Endowment Insurance for Land-expropriated Farmers of Ma’anshan Municipality, all LEFs within the municipal jurisdiction who have not participated in urban basic insurance shall be included in basic endowment insurance for LEFs. The basic endowment insurance fund for LEFs consists of a pooling fund and an individual account fund, and included in the special financial account, to be used specially for basic endowment insurance for LEFs. The pooling fund shall be from the following sources: (1) Fees collected on acquired land: 30 yuan/m2 for administratively allocated land, 20 yuan/m2 for transferred land (10 yuan/m2 for industrial land); (2) 15% of compensation fees for acquired land (50% of the amount retained by the collective); (3) 20% of use fees of additional construction land retained at the municipal level; (4) 50% of the development and construction land for newly acquired vegetable plots; and (5) Other funds available. The pooling fund shall be collected by the municipal and district land and resources bureaus at the above proportions. The amount contributed voluntarily by an LEF and interests thereon shall form the individual account fund. Individual contribution level may be 6,000 yuan or 9,000 yuan, at the option of LEFs. Individual contribution shall be declared by the individual with the municipal social insurance agency and paid at a time. Any LEF participating in basic endowment insurance shall receive a basic pension from the next month of attaining 60 years for men or 55 years for women as follows: If an LEF makes no individual contribution, he/she shall be paid a basic pension of 240 yuan; if individual contribution is 6,000 yuan, each LEF will be paid 300 yuan per month, including a basic pension of 240 yuan and an individual account pension of 60 yuan; if individual contribution is 9,000 yuan, each LEF will be paid 335 yuan per month, including a basic pension of 240 yuan and an individual account pension of 95 yuan. Basic pensions shall be disbursed from the pooling fund and individual account pensions from the individual account fund. After the individual account fund is used out, pensions shall be disbursed from the pooling fund. After an LEF dies, the balance of the individual account shall be paid to the legal heir or designated beneficiary at a time. See Table 6-5. Table 6-5 Contribution and Benefit Rates of Endowment Insurance for LEFs Pension rate (yuan/month) No. Type Basic pension Individual account pension Total 1 No individual contribution 240 0 240 2 Individual contribution 6,000 yuan 240 60 300

36 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project Pension rate (yuan/month) No. Type Basic pension Individual account pension Total 3 Individual contribution 9,000 yuan 240 95 335

Through analysis, a person affected by LA will receive at least 12,000 yuan per capita in compensation, which is higher than the highest contribution rate of 9,000 yuan for endowment insurance for LEFs. In addition, even if an AH and its affected village makes no contribution, each eligible LEF will also receive a pension of 240 yuan per month. Therefore, compensation fees for LA are sufficient for endowment insurance. In addition, most LEFs, especially old people, are willing to participate in endowment insurance.

17.1.2 Resettlement and Restoration Programs of Key Affected Villages

In this RAP, restoration programs have been developed for village groups with high income loss rates and with a certain amount of cultivated land. According to the LA impact analysis, Songmushan Group of Linli Village, and Xiaxi and Zhongxi Groups of Huoli Village will have relatively high income loss rates of 21.07%, 18.65% and 19.09% respectively. In order that the APs in these village groups receive sufficient opportunities to increase or at least restore their production level and living standard as soon as possible, not only the acquired land will be compensated for, realistic resettlement programs have been developed based on local conditions through adequate consultation.

6.3.3.1 Songmushan Group

Songmushan Group is affiliated to Linli Village, and have 180 households with 460 persons, a cultivated area of 450.8 mu and per capita income of 15,329 yuan, which is above average in Cihu Xiang. Farmers earn income from outside employment and other nonagricultural sources mainly. 66.75 mu of cultivated land of this group will be acquired for the Project, and its per capita cultivated area is 0.98 mu and 0.83 mu before and after LA respectively, affecting 9 households with 31 persons, all being Han people. Through survey and consultation, the possible income restoration measures for this group are as follows: (a) Crop restructuring: According to the survey, this group will have 384.05 mu of remaining cultivated land after LA. Based on land quality and the expectation of the APs, the traditional crops of paddy rice and wheat will be replaced by vegetables and flowers of higher economic value. Planned development area is 100 mu, including 50 mu of old greenhouse improvement and an additional greenhouse area of 50 mu. Net of costs, additional net income per mu will be 5,300 yuan, expected additional gross income will be 530,000 yuan, benefiting 250 persons of this group with additional per capita income of 2,120 yuan. See Table 6-6. Table 6-6 Income Restoration Program for Crop Cultivation of Songmushan Group Investment income Income Net income Net No. restoration Unit Qty. Unit price Investment Beneficiary Additional per unit income measure (yuan/mu) (yuan) population income (yuan) (yuan) (yuan) Crop 1 mu 100 4800 480000 5300 530000 250 2120 restructuring Subtotal / 480000 / 530000 / /

It is estimated that as a result of the Project, the annual income of this group will be reduced by 100,125 yuan, and through the above measure, the AHs can increase their income by 65,72013 yuan. Therefore, the living standard of the APs will be restored to some extent. See Table 6-7.

13 This measure will increase per capita income by 2,120 yuan and affect 31 persons of this group, so total additional income is 65,720 yuan. 37 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project (b) This group has planned to develop large-scale slim duck cultivation. There are 2 duck farms, raising 2,000-3,000 ducks in total. The government grants a subsidy of 50,000-100,000 yuan to major stockbreeding households per annum, and provides relevant employment training and marketing assistance. The village plans to expand the scale of stockbreeding to over 10,000 ducks, which will increase total income by 300,000 yuan, benefiting 100 persons with additional per capita income of 3,000 yuan. For the 31 persons affected by the Project, total income will be increased by 93,000 yuan. The village committee expects to promote the employment of more rural surplus labor, increase the APs’ income and promote their self-development in this way. Table 6-7 Expected Income Restoration of Songmushan Group Additional income from Additional income from Reduced annual restoration measures restoration measures Difference Group income (yuan/year) (yuan/year) (B) (yuan/year) (C) (B+C-A)(yuan) (A) Large-scale Crop restructuring stockbreeding Songmushan 100125 65720 93000 58595

In addition, in order to reduce the risk of income restoration, the PMO will provide skills training on crop restructuring and market information to the APs, and vocational skills training (e.g., apparel processing) and employment assistance to those interested in working in town. Through the above measures, the income of the APs is expected to be restored and improved by the end of 2014.

6.3.3.2 Xiaxi and Zhongxi Groups

Xiaxi and Zhongxi Groups are affiliated to Huoli Village, Xiaxi Group has 78 households with 273 persons, a cultivated area of 315 mu and per capita income of 10,280 yuan, which is medium in Cihu Xiang; farmers earn income from outside employment mainly. Zhongxi Group has 119 households with 405 persons, a cultivated area of 440 mu and per capita income of 10,280 yuan, similar to that of Xiaxi Group; farmers also earn income from outside employment mainly. 56.25 mu of cultivated land of the two groups will be acquired for the Project. The per capita cultivated area of Xiaxi Group is 1.15 mu and 0.95 mu before and after LA respectively, affecting 14 households with 44 persons, all being Han people. The per capita cultivated area of Zhongxi Group is 1.09 mu and 0.95 mu before and after LA respectively, affecting 14 households with 43 persons, all being Han people. Since the two village groups are similar, the same resettlement measures will be applied to them. Through survey and consultation, the possible income restoration measures for the two groups are as follows: (a) Crop restructuring: According to the survey, Xiaxi Group will have 258.75 mu of remaining cultivated land and Zhongxi Group will have 383.75 mu after LA. Based on land quality and the expectation of the APs, the traditional crops of paddy rice and wheat will be replaced by artificial fungi of higher economic value. Planned development area is 60 mu. Net of costs, additional net income per mu will be 4,000 yuan, expected additional gross income will be 240,000 yuan, benefiting 95 persons with additional per capita income of 2,526 yuan. See Table 6-8. Table 6-8 Income Restoration Program for Crop Cultivation of Xiaxi and Zhongxi Groups Investment income Income Net income Net No. restoration Unit Qty. Unit price Investment Beneficiary Additional per unit income measure (yuan/mu) (yuan) population income (yuan) (yuan) (yuan) Crop 1 mu 60 2500 150000 4000 240000 95 2526 restructuring Subtotal / 150000 / 240000 / /

It is estimated that as a result of the Project, the annual income of the two groups will be reduced by 84,374.58 yuan, and through the above measure, the AHs can increase their income by 111,144 yuan and 108,618 yuan respectively. Therefore, the living standard of the APs will be restored or improved. See Table 6-9.

38 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project Table 6-9 Expected Income Restoration of Xiaxi and Zhongxi Groups Additional income from restoration measures Reduced annual income Difference Group (yuan/year) (B) (yuan/year) (A) (B-A)(yuan) Crop restructuring Xiaxi 84374.58 111144 26769.42 Zhongxi 84374.58 108618 24243.42

(b) The two groups have planned to develop large-scale live pig cultivation. There are 2 pig farms, raising 100-500 pigs in total. The government grants a subsidy of 100,000-200,000 yuan to major stockbreeding households per annum, and provides relevant employment training and marketing assistance. The village plans to expand the scale of stockbreeding to over 1,000 pigs, which will increase total income by 50,000 yuan, benefiting 126 persons with additional per capita income of 50,000 yuan. For the 126 persons affected by the Project, total income will be increased by 396.83 yuan. The village committee expects to promote the employment of more rural surplus labor, increase the APs’ income and promote their self-development in this way. In addition, in order to reduce the risk of income restoration, the PMO will provide skills training on crop restructuring and market information to the APs, and vocational skills training (e.g., apparel processing) and employment assistance to those interested in working in town. Through the above measures, the income of the APs is expected to be restored and improved by the end of 2014. 17.2 Restoration Program for Affected Vulnerable Groups In the affected population of the Project, 27 households with 32 persons fall into vulnerable groups, in which 14 households with 19 persons receive MLS, and there are 13 five-guarantee households with 13 persons.  MLS households 1) Two laborers of every affected household will receive livelihood training and priority in employment (working outside, working in project construction, etc.); 2) They will receive a government subsidy.  Five-guarantee households 1) The village collective will subsidize five-guarantee households every month; 2) The village committee may arrange five-guarantee households to enter an old people’s home on voluntary basis. 17.3 Protection of Women’s Rights and Interests Women will participate fully in resettlement activities through information disclosure and meetings of the village collective; they will have the same rights as men in receiving compensation, being employed for the project and attending training. In addition, the following measures will be taken to ensure women’s rights and interests: (1) During project construction, a certain number of women (at least 20% of unskilled jobs) will obtain unskilled job opportunities. In addition, women will receive equal pay for equal work like men; (2) Skills training will be first made available to affected female laborers to ensure that their economic status will not be lowered; (3) Affected women will receive relevant information during resettlement and participate in public consultation and resettlement. The compensation agreement may be signed by women. See Table 6-10 for the possible risks for women and proposed mitigation measures. Table 6-10 Possible risks for women and proposed mitigation measures Gender issue Concern/risk Mitigation measures Women are deprived of land or 1. Land, properties and (1) Cash compensation or improvement of the properties or have no right to right to compensation quality of remaining land, and crop restructuring compensation. Women are affected even more (1) Women will receive compensation for LA; (2) 2. Production and income seriously, and receive less At least 50% of attendees of skills training should restoration after LA assistance. be women; (3) Women will receive at least 30%

39 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project Gender issue Concern/risk Mitigation measures of unskilled jobs at the construction stage. 3. Public participation and No source of information or no Holding a separate women’s meeting consultation participation in decision-making No means or capacity of The PMO will address women’s concerns and 4. Grievance redress grievance redress take remedial measures. Women’s needs are not fully All APs, especially women, are encouraged to 5. M&E understood or impacts on them participate in M&E. not considered.

17.4 Restoration Program for Ground Attachments After proprietors of affected ground attachments have been compensated by the project owner, they will be rebuilt by proprietors. In addition, restoration measures for demolished facilities must be planned and arranged in advance and suited to local conditions, so that such measures are safe, efficient, timely and accurate, and their adverse impact on nearby residents is minimized.

40 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project 18 Organizational Structure 18.1 Organizational Structure 18.1.1 Organizational Setup

In order to ensure successful resettlement as desired, a systematic organizational structure must be established during project implementation in order to plan, coordinate and monitor resettlement activities. Since resettlement is a very comprehensive task that requires the assistance and cooperation of different departments, the departments concerned will participate in and support resettlement implementation. Each affected township or village has one or two chief leaders responsible for resettlement.  MPMO  MWRB (project owner)  District LA and HD offices  Affected township governments and village (community) committees)  Design agency  External M&E agency

Project Leading Group

Municipal Land MPMO and House Acquisition Affairs Administration Design External Project owner agency M&E agency

Resettlement implementing agencies (district LA and HD offices), and townships

State-own LA Attachments Infrastructure AHs ed land

Figure 18-1 Resettlement Organizational Structure 18.1.2 Main Responsibilities

 MPMO Responsible mainly for organizing the resettlement of the project, formulating policies on resettlement activities of the project, and coordinating relations among the resettlement agencies at all levels  MWRB MWRB is the owner of the Project and has an environmental resettlement department with a full-time workforce of 2-3, responsible mainly for handling day-to-day affairs in resettlement planning and implementation, and exercising the management, planning, implementation, coordination, supervision and monitoring functions of resettlement as the project management agency. ①Formulating the LA and resettlement policies for the Project; ②Entrusting the design agency to define the project area, conduct DMS and save such data; ③Applying for the license for planning of land use and the license for land used for construction;

41 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project ④Giving operational training to the key resettlement officials of the PMO; ⑤Organizing and coordinating the preparation of the RAP; ⑥Responsible for the management and disbursement of the resettlement funds, and supervising the use thereof; ⑦Directing, coordinating and supervising resettlement activities and their progress; ⑧Directing and assisting in the disposition of complaints; ⑨Taking charge of and inspecting internal monitoring, and preparing LA and resettlement progress reports; ⑩Selecting the external M&E agency and assisting in external monitoring activities  District LA and HD offices The LA and HD office of a district is headed by the leader responsible of the district, and composed of key officials of the land and resources, public security, and civil affairs bureaus, and the affected townships. Their main responsibilities are: ①Participating in the survey of the project, and assisting in the preparation of the RAP; ②Organizing public participation, and communicating the resettlement policies; ③Implementing, inspecting, monitoring and recording all resettlement activities within the township; ④Responsible for the disbursement and management of land compensation fees; ⑤Supervision land acquisition, occupation and restoration; ⑥Reporting LA and resettlement information to the district/county resettlement office; ⑦Coordinating and handling conflicts and issues arising from its work.  Affected township governments and village (community) committees) The resettlement working team of a township or village (community) is composed of its key officials. Its main responsibilities are: ①Participating in the socioeconomic survey and DMS of the project; ②Organizing public consultation, and communicating the policies on LA and HD; ③Organizing the implementation of agricultural and nonagricultural resettlement activities; ④Reporting the APs’ opinions and suggestions to the competent authorities; ⑤Providing assistance to displaced households with difficulties  Design agency ①Reducing resettlement impacts through design optimization ②Defining the range of LA and HD  External M&E agency MPMO will employ a qualified M&E agency as the external resettlement monitoring agency. Its main responsibilities are: ①Observing all aspects of resettlement planning and implementation as an independent M&E agency, monitoring and evaluating the resettlement results and the social adaptability of the APs, and submitting resettlement M&E reports to MPMO and the Bank; and ②Providing technical advice to MPMO and the project owner in data collection and processing The key person responsible for land acquisition implementation and contact are shown in Table 1. Table 18-1 key person responsible for land acquisition implementation unit name telephone number PLG He Xianwen 8355629 MPMO Tang Kerui 8355652 Ma'anshan Water Resource Bureau Lu Yanjun 8367751 land acquisition and house demolition office of Zhang Yi 2323090 Ma'anshan Administration Committee of Cihu Hi-tech Yu Lingyun 3503157 Development Zone Huashan District Government Liang Hui 2820452 Cihu Town Hu Wangyou 3500154 Holi Street Zhu Chuanchao 2781060

42 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project

18.2 Staffing In order to ensure the successful implementation of the resettlement work, and strengthen communication, MPMO and other resettlement implementing agencies have been provided with full-time staff. See Table 18-2. Table 18-2 Full-time Staff of Resettlement Agencies Resettlement agency Workforce Composition Project Leading Group 2 Government officials MPMO 2 Civil servants, engineers MWRB 3-5 Civil servants, engineers District LA and HD offices 4-5 Civil servants, engineers Design agency 2 Senior engineers, engineers

18.3 Measures to Strengthen Institutional Capacity However, since this is the first Bank-financed project in Ma’anshan, though the relevant staff has experience in participating in similar domestically financed projects, they are still inexperienced in the implementation of the Bank’s policy on involuntary resettlement. Therefore, MPMO has developed a detailed training program for the relevant staff in order to ensure successful resettlement implementation. See Error! Reference source not found..  Before the implementation of the RAP, the LA, HD and resettlement staff will be trained on the Bank’s operational guidelines on resettlement, regulations on LA and HD, resettlement implementation management, etc. in order to improve the professional proficiency and practical abilities.  During the resettlement stage, the backbone resettlement staff will be organized to learn and investigate domestic Bank financed projects, and attend resettlement policy training and other specialized training courses.

Table 18-3 Overall Resettlement Training Program No. Scope of training Trainees Time Location Budget (0,000 yuan) Resettlement learning tour of Backbone 1 One session At home 10 Bank projects resettlement staff Resettlement operational Backbone 2 Once a year At home 5 training resettlement staff Resettlement operational 3 Resettlement staff Once a year At home 5 training, especially M&E

In addition, the following measures will be taken to improve institutional capacity:  Provide adequate financial and technical support to improve working efficiency.  Reward and punishment measures for the LA, HD and resettlement staff will be established and improved to motivate the staff.  Establish a resettlement information management system and strengthen information feedback to ensure a smooth information flow, and leave major issues to the Project Leading Group.  Strengthen the reporting system and internal monitoring, and solve issues timely.  Strengthen external M&E; the external M&E agency should point out existing issues and propose solutions timely.

43 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project 19 Resettlement Budget and Funding Sources 19.1 Budget All costs incurred during LA and resettlement will be included in the general budget. The resettlement costs of the Project include compensation fees for permanent and temporary land occupation, HD and ground attachments, and relevant taxes, etc. The total investment in resettlement of the Project is 331,883,170 yuan, accounting for 22.9% of total costs, in which costs for acquisition of rural collective land are 68,906,450 yuan (20.76%), costs for occupation of state-owned land 120,535,500 yuan (36.32%), compensation fees for demolition of attachments 51,030 yuan (0.02%), and taxes and other costs 141,010,920 yuan (42.49%). See . Annual Investment Plan An annual investment plan has been prepared according to the progress of LA and HD of the Project, as shown in Table 19-1. Table 19-1 Annual Investment Plan Unit: 0,000 yuan Year 2012 2013 2014 Total Costs 6637.663 16594.16 9956.495 33188.317 Percent 20% 50% 30.00% 100.00%

19.2 Resettlement Funding Sources The funding sources of the Project are as follows: (1) Bank loan of US$100 million (equivalent to 640 million yuan, at an exchange rate of 1:6.4, actually being 638.4 million yuan net of advanced LA costs); (2) Domestic counterpart funds of 662.99 million yuan from local finance, accounting for 50.88% of the Project’s gross investment.

44 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project Table 19-2. 19.3 Annual Investment Plan An annual investment plan has been prepared according to the progress of LA and HD of the Project, as shown in Table 19-1. Table 19-1 Annual Investment Plan Unit: 0,000 yuan Year 2012 2013 2014 Total Costs 6637.663 16594.16 9956.495 33188.317 Percent 20% 50% 30.00% 100.00%

19.4 Resettlement Funding Sources The funding sources of the Project are as follows: (1) Bank loan of US$100 million (equivalent to 640 million yuan, at an exchange rate of 1:6.4, actually being 638.4 million yuan net of advanced LA costs); (2) Domestic counterpart funds of 662.99 million yuan from local finance, accounting for 50.88% of the Project’s gross investment.

45 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project Table 19-2 Resettlement Budget Costs (0,000 yuan) Construction of flood control pumping No Upper river rehabilitation Lower river rehabilitation Branch water system rehabilitation Item stations Percent . Total Standard Standard Qty Standar Standard Standard (%) Qty. Amount Qty. Amount Qty. Qty. Amount Standard Qty. Amount 1 2 . d 1 2 3107.167 1 Acquisition of rural collective land 2240.85 1630.4535 6890.645 20.76% 4 3107.167 1.1 Cultivated land 2240.85 1630.4535 50.102 6890.645 20.76% 4 309.1 Land compensation fees 19600 426 22000 19 876.76 24000 266.85 640.44 24000 224.65 22000 1219.378 24000 8.2 19.68 2756.258 8.30% 9 309.1 Resettlement subsidy 29400 426 33000 19 1315.14 36000 266.85 960.66 36000 224.65 33000 1829.067 36000 8.2 29.52 4134.387 12.46% 9 Young crop compensation fees 1100 445 48.95 1100 266.85 29.3535 1100 533.84 58.7224 1100 8.2 0.902 137.9279 8283.154 2 Occupation of state-owned land 225300 150.35 3387.3855 225300 367.65 225300 17 383.01 12053.55 36.32% 5 3 Ground attachments 0.1715 4.7838 0.1199 0.0278 5.103 0.02% Trees, <10cm 2 9 0.0018 2 8 0.0016 2 10 0.002 2 3 0.0006 0.006 0.00% Trees, 10-20cm 5 8 0.004 5 12 0.006 5 10 0.005 5 5 0.0025 0.0175 0.00% Trees, 20-30cm 8 9 0.0072 8 14 0.0112 8 13 0.0104 8 4 0.0032 0.032 0.00% Trees, 30-40cm 15 11 0.0165 15 14 0.021 15 11 0.0165 15 9 0.0135 0.0675 0.00% Trees, >=40cm 20 11 0.022 20 12 0.024 20 13 0.026 20 4 0.008 0.08 0.00% Standard waste pools 600 2 0.12 600 2 0.12 600 1 0.06 0.3 0.00% Steel frame, incl. film 4000 8 3.2 3.2 0.01% Bamboo frame, incl. film 2000 7 1.4 1.4 0.00% 2241.021 11390.44 19087.225 Subtotal of Items 1-3 5022.6228 433.1398 57.51% 5 2 9 4 Farmland occupation tax 25000 445 1112.500 25000 266.85 667.125 25000 533.84 1334.6 25000 8.2 20.5 3134.725 9.45% 5 Water resources fund 500 445 22.250 500 266.85 13.3425 500 533.84 26.692 500 8.2 0.41 62.695 0.19% 6 Farmland reclamation costs 6000.03 445 267.001 6000.03 266.85 160.111 6000.03 533.84 320.306 6000.03 8.2 4.920 752.338 2.27% 2241.021 5022.622 200.90491 11390.441 455.6176 7 LA management costs 4% 89.641 4% 4% 4% 433.1398 17.325592 763.489 2.30% 5 8 2 8 7 8 Land surveying costs 40 445 1.780 40 266.85 1.0674 40 533.84 2.13536 40 8.2 0.0328 5.016 0.02% 2241.021 5022.622 11390.441 569.5220 9 Administrative costs 5% 112.051 5% 251.13114 5% 5% 433.1398 21.65699 954.361 2.88% 5 8 8 9 10 Skills training costs 1% 2241.021 22.410 1% 5022.622 50.226228 1% 11390.441 113.9044 1% 433.1398 4.331398 190.872 0.58%

46 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project Costs (0,000 yuan) Construction of flood control pumping No Upper river rehabilitation Lower river rehabilitation Branch water system rehabilitation Item stations Percent . Total Standard Standard Qty Standar Standard Standard (%) Qty. Amount Qty. Amount Qty. Qty. Amount Standard Qty. Amount 1 2 . d 1 2 5 8 8 2 2241.021 5022.622 11390.441 56.95220 11 External M&E costs 0.50% 11.205 0.50% 25.113114 0.50% 0.50% 433.1398 2.165699 95.436 0.29% 5 8 8 9 12 Additional farmland quota costs 40000 445 1780.000 40000 268.85 1075.4 40000 533.84 2135.36 40000 8.2 32.8 5023.560 15.14% Use fees of additional construction 107.54053 13 4000.02 445 178.001 4000.02 268.85 4000.02 533.84 213.537 4000.02 8.2 3.280 502.359 1.51% land 77 2241.021 5022.622 11390.441 14 Contingencies 10% 224.102 10% 502.26228 10% 1846.563 10% 433.1398 43.31398 2616.242 7.88% 5 8 8 3054.2239 7075.189 Subtotal of Items 4-14 3820.942 150.7365 14101.092 42.49% 1 6 8076.8467 18465.63 Total 6061.963 583.8763 33188.317 100.00% 1 1

47 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project 19.5 Management and Disbursement of Resettlement Funds 19.5.1 Fund Flow

Resettlement funds will be disbursed on the following principle: All costs related to LA will be included in the general budget and disbursed by MPMO as per compensation rates. Compensation fees will be disbursed by the project owner directly to the functional departments of the affected district governments through a special account, and then distributed to the affected village groups and households for independent distribution before LA. Land compensation fees and resettlement subsidies will be used in consultation with the APs, young crop compensation fees will be paid directly to the APs, and compensation fees for infrastructure and attachments will be paid to relevant entities or individuals. In order to ensure that the resettlement funds are in place timely and fully, and to ensure the restoration of the production, livelihoods and income level of the affected rural households, the following measures will be taken: 1) All costs related to resettlement will be included in the general budget of the Project. 2) Land compensation fees and resettlement subsidies will be fully paid before LA to ensure that all APs are resettled properly. 4) Financial and supervisory agencies will be established at different levels to ensure that all funds are fully and timely available. 5) The finance and audit departments of the Ma’anshan Municipal Government have the power to monitor and audit the use of resettlement funds. 6) The external M&E agency will perform follow-up monitoring on the use of compensation fees by the AHs during external monitoring. See Figure 19-1 .

Local counterpart funds

MPMO

MWRB

Land and resources Bank or credit Township/ bureau, and District cooperative sub-district

LA and HD offices office

community Villagecommittee/

proprietors A

APs ttachment ttachment

Figure 19-1 Fund Flowchart

48 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project 19.5.2 Management and Disbursement

To ensure that the resettlement funds are in place timely and fully, and to ensure the restoration of the production, livelihoods and income level of the affected rural households, the following measures will be taken:  All costs related to resettlement will be included in the general budget of the Project;  Land compensation fees and resettlement subsidies will be fully paid before LA to ensure that all APs are resettled properly.  Financial and supervisory agencies will be established at different levels to ensure that all funds are fully and timely available.  The budget is an estimate of the resettlement costs. Due to practical variations in the project area, practical impacts of DMS (Detailed Measurement Survey), modifications to compensation, inflation and other factors, the actual costs may be increased, but MMPO will ensure the disbursement of compensation fees. The budget has taken contingencies into account, and will be used and modified as necessary.

49 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project 20 Public Participation and Consultation, and Grievance Redress 20.1 Public Participation Strategy According to the policies and regulations of the state, Anhui Province, Ma’anshan Municipality and the affected districts on LA and resettlement, the participation of and consultation with the APs will be attached great importance to at the resettlement policy-making, planning and implementation stages in order to maintain the lawful rights and interests of the APs and affected entities, reduce grievances and disputes, and realize the resettlement objective properly by developing sound policies and implementation rules on relocation and resettlement, preparing an effective resettlement plan, and organizing implementation properly. During the feasibility study stage, MPMO consulted residents affected by LA, government agencies and affected townships about advice and opinions on resettlement many times. Disclosure of the RAP: By the end of November 2012, the RAP will be disclosed at MPMO and the project owner, and also published on the website of the Ma’anshan Municipal Government; an announcement will be published on major local newspapers for disclosure to APs and NGOs. Resettlement information booklet (RIB): Key information in the RAP will be compiled into an RIB, which will be distributed to APs after assessment and before relocation. Such brochure will cover project overview, project impacts, compensation policies, implementing agencies and appeal channel, etc. 20.2 Public Participation Process and Policy Disclosure In order to handle issues and requirements proposed by the AHs about LA and resettlement timely and properly, the APs should be further consulted so that all issues can be solved before the RAP is implemented. The resettlement implementing agencies will arrange public participation meetings rationally, so that every affected household has an opportunity to consult with the resettlement implementing agencies about the compensation agreement before signing it. The public participation process and plan are shown in Table 20-1; the policy disclosure process is shown in Table 20-2. Table 20-1 Public Participation Process of the APs Time Location Participants Topics Conclusion/plan offices within Design agency, EIA Need for the Project, the project agency, NRCR, consultation of programs, Oct. 2011 – area MPMO environmental impact Aug. 2012 survey and public participation offices within Design agency, APs, Socioeconomic survey, ①Compensation and resettlement the project heads of DMS, consultation on policies: as per state and local area implementing resettlement policies, policies; ②Resettlement programs: Dec. 2011 – agencies, etc.; land investigation of APs expect to be compensated at Mar. 2012 and resources bureau resettlement programs the latest provincial standard; and other ③APs support the Subproject on government agencies the basis of reasonable compensation. Municipal MPMO, HD offices, Optimization of development & MWRB, etc. compensation and Jul. 2012 reform resettlement policies and commission resettlement programs affected MPMO, leaders of discussions and xpressed their supports for the groups affected villages, APs consultions on options Project and agreed the July 2012 and NRCR for compensation and resettlement policies and hoped resettlement, the compensation could be paid in resettlement policies time and adequately. Range of LA MPMO, APs, NRCR Individual issues of Supplementary consultation on Jul. 2012 resettlement policies and individual issues upon finalization plan of the RAP

Table 20-2 Policy Disclosure Process

50 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project Language and method of Document Date of publication Place of publication disclosure Chinese, municipal Community or village Introduction of related projects End of Nov. 2012 government website committee General introduction to LA and Chinese, municipal Community or village End of Nov. 2012 resettlement information government website committee Municipal LA and resettlement Chinese, municipal Community or village End of Dec. 2012 policies government website committee Community or village Notice to disclose the RAP Chinese Early Dec. 2012 committee Community or village RIB Chinese, handed to APs After Bank approval committee Resettlement Report Chinese and English After Bank approval Library

20.3 Appeal Handling Procedure Since the resettlement work is conducted with the participation of the APs, no substantial dispute will arise. However, to ensure that the APs have a channel to file an appeal on any issue concerning land acquisition and resettlement, a five-stage grievance redress mechanism has been established in the RAP: Stage 1: If any AP is dissatisfied with the RAP, he/she can report this to the village committee or town resettlement office orally or in writing. In case of an oral appeal, the village committee or sub-district resettlement office shall handle such appeal and keep written records. Such appeal should be solved within two weeks. Contact: Hu Wangyou of Cihu Town with telephone number 3500154, and Zhu Chuanchao of Holi Street with telephone number 2781060 Stage 2: If the AP is dissatisfied with the disposition of Stage 1, he/she may file an appeal to MWRB after receiving such disposition, which shall make a disposition within 7 days. Contact: Lu Yanjun of MWRP with telephone number 8367751. Stage 3: If the AP is still dissatisfied with the disposition of Stage 2, he/she may file an appeal to MPMO after receiving such disposition, which shall make a disposition within two weeks. Contact: Tang Kerui of MPMO with telephone number 8355652. Stage 4: If the AP is still dissatisfied with the disposition of Stage 3, he/she may escalate the appeal to the competent administrative organs in accordance with the Administrative Procedure Law of the PRC after receiving such disposition for arbitration. Stage 5: If the AP is still dissatisfied with the arbitration award, he/she may file a suit in a civil court in accordance with the Civil Procedure Law of the PRC after receiving the arbitration award.

Village committee Township government

MWRB

MPMO

Administrative ruling / local court

Figure 20-1 Grievance Redress Flowchart

The APs may file an appeal about any aspect of resettlement, including compensation rates, etc. The above appeal channel will be notified to the APs at a meeting or otherwise, so that the APs are fully aware of their right of appeal. Mass media will be utilized for publicity, and opinions and advice about resettlement will be compiled into messages for study and disposition by the resettlement agencies. All

51 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project agencies will accept grievances and appeals from the APs for free, and costs so reasonably incurred will be disbursed from contingency costs.

52 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project 21 Implementation Schedule 21.1 Principles for Progress Coordination between Resettlement and Project Construction According to the project schedule, the Project will be completed from June 2013 to April 2017 in stages. The LA and resettlement schedule links up the construction schedules of the components. The main tasks of LA and resettlement will begin in March 2013 and end in June 2015. The basic principles of scheduling are as follows:  LA and HD shall be completed one month before the beginning of land use; the beginning time shall be determined based on the need for LA, HD and resettlement.  Sufficient time must be allowed for LA, HD and resettlement before commencement of construction.

21.2 Schedule for Key Resettlement Tasks 21.2.1 Principles for Schedule Preparation

 The range of LA and HD shall be determined based on the design drawings of the individual works, which shall be completed before the DMS of LA and HD.  Physical quantities affected by LA shall be surveyed by MPMO, the project owner, district LA and HD offices, other competent authorities and proprietors according to the boundary map of LA and HD before the execution of the compensation and resettlement agreement.  MPMO, the project owner, and district LA and HD offices shall hold a mobilization meeting with displaced households and entities to disclose policies and resettlement measures on LA, HD, compensation and resettlement before the execution of the compensation and resettlement agreement. The LA and HD announcement will be published formally after the mobilization meeting.  The demolisher and the APs shall enter into the compensation and resettlement agreement after the DMS and the publication of the LA and HD announcement.  Infrastructure will be constructed in advance and then demolished.  Resettlement costs shall be settled after the execution of the agreement and before relocation.  The resettlement work shall be inspected so that it is satisfactory to the displaced households and entities.

21.2.2 Resettlement Schedule

The general resettlement schedule of the Project has been drafted according to the progress of preparation and implementation activities of LA, HD and resettlement. The specific period of implementation may be adjusted due to any deviation from the general schedule. See Table 21-1.

Table 21-1 Resettlement Schedule Cihu Hi-tech Stage Task Jinjiazhuang District Huashan District Development Zone Determination of range of LA and Apr. – May 2012 Apr. – Jun. 2012 Apr. – Jun. 2012 HD Physical quantity survey of LA and

Preparation Jul. 2012 Jul. 2012 Jul. 2012 HD Preliminary socioeconomic survey Jul. 2012 Jul. 2012 Jul. 2012 Consultation of resettlement Jul. – Aug. 2012 Jul. – Aug. 2012 Jul. – Aug. 2012

programs Preparation of the RAP Aug. – Sep. 2012 Aug. – Sep. 2012 Aug. – Sep. 2012 Disclosure of the RAP Dec. 2012 Dec. 2012 Dec. 2012 Approval of the RAP Feb. 2013 Feb. 2013 Feb. 2013

Implement

ation Approval of acquisition of rural Mar. 2013 Mar. 2013 Mar. 2013 collective land Holding a LA and HD mobilization May 2013 May 2013 May 2013

53 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project Cihu Hi-tech Stage Task Jinjiazhuang District Huashan District Development Zone meeting to disclose policies Issuing the LA and HD Jun. 2013 Jun. 2013 Jun. 2013 announcement Negotiating and signing compensation and resettlement Jun. – Dec. 2013 Jun. – Dec. 2013 Jun. – Dec. 2013 agreement Handover of land for construction Jul. 2013 Jul. 2013 Jul. 2013 Income restoration of APs Jun. 2013 – Jan. 2016 Jun. 2013 – Jan. 2016 Jun. 2013 – Jan. 2016 Aug. 2013 – Feb. Aug. 2013 – Feb. Aug. 2013 – Feb. M&E M&E 2017 2017 2017

54 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project 22 Monitoring and Evaluation Arrangements

In order to ensure the successful implementation of the RAP and resettle the APs properly, periodic M&E of LA, HD and resettlement activities will be conducted in accordance with the World Bank Operational Policy OP4.12 Involuntary Resettlement and the Operational Guide to the Monitoring and Evaluation of Resettlement of World Bank Financed Projects in China. Monitoring is divided into internal monitoring of resettlement agencies and external independent monitoring.

22.1 Internal Monitoring

Internal monitoring shall be implemented by MPMO with the assistance of the project owner, district LA and HD offices, affected townships/sub-districts and village committees, etc. MPMO will establish a database of LA, HD and resettlement, and use it to prepare the RAP, monitor all displaced households and entities, and conduct internal supervision and inspection of the whole process of resettlement.

22.1.1 Implementation Procedure

During implementation, MPMO will establish a corresponding resettlement database, collect and record information on the resettlement of APs from the monitoring sample, and report update activity records and implementation progress to the superior levels of the resettlement organization timely to maintain continuous monitoring.

22.1.2 Scope of Monitoring

 Land approval  Compensation fees and disbursement  Production and livelihood restoration measures of APs  Restoration of special facilities  Schedule of the above activities  Staffing, training, working schedule and efficiency of the resettlement organization  Registration and handling of grievances and appeals of APs

22.1.3 Internal Monitoring Reporting

The project owner, and district LA and HD offices will prepare a report on the progress of LA, HD and resettlement of the Project every 6 months, and submit it to MPMO, which will in turn submit it to the Bank.

22.2 Independent External Monitoring

22.2.1 Independent Monitoring Agency

1. Preparing the Terms of Reference of M&E 2. Developing software for the resettlement M&E information system 3. Preparing a survey outline, survey form and record card of affected residents 4. Design of sampling survey plan and sample size 5. Baseline survey A baseline survey required for the independent M&E of the households affected by LA in the Project to acquire baseline data on the standard of living (livelihood, production and income levels) of the monitored AHs. 6. Establishing an M&E information system

55 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project An M&E information system will be established, where a database will be established for different types of M&E data, in order to provide computer aid for analysis and follow-up monitoring. 7. M&E survey (1) Capacity evaluation of resettlement implementing agencies: to investigate the working capacity and efficiency of the resettlement implementing agencies (2) Monitoring of resettlement progress, compensation rates and payment to typical displaced households: to monitor the disbursement of compensation fees, income restoration and resettlement quality of residents; restoration measures for vulnerable groups; compensation for and restoration of temporarily occupied land (3) Public participation and consultation: to monitor public participation activities during the preparation and implementation of the RAP, and the effectiveness of participation (4) Appeals: to monitor the registration and disposition of appeals of the APs 8. Compiling monitoring data, and establishing a database 9. Comparative analysis 10. Preparing M&E reports according to the monitoring plan The external M&E agency should prepare terms of references, a survey outline and a questionnaire, establish a monitoring system and select monitoring sites before the beginning of resettlement, and submit an external M&E report to the Bank semiannually.  In September 2013, the independent resettlement M&E team will be established and the terms of reference prepared;  n October 2013, preparations will be made for independent resettlement M&E, including preparing the survey outline and questionnaire, establishing a monitoring system, defining tasks and selecting monitoring sites;  In December 2013, the M&E Report No.1 (baseline survey report) will be submitted;  In June 2014, the 2nd round of monitoring will be conducted and the M&E Report No.2 submitted;  In December 2014, the 3rd round of monitoring will be conducted and the M&E Report No.3 submitted;  In June 2015, the 4th round of monitoring will be conducted and the M&E Report No.4 submitted;  In December 2015, the 5th round of monitoring will be conducted and the M&E Report No.5 submitted;  In June 2016, the 6th round of monitoring will be conducted and the M&E Report No.6 submitted;  In December 2016, the post-evaluation report will be submitted.

22.2.2 Monitoring Indicators

 Socioeconomic indicators: per capita income, GDP and employment rate;  Institutional indicators: staffing, staff competencies, rules and regulations, equipment, completion rate of transactions;  APs: availability of compensation fees, mode of production resettlement, rate of change of income, employment rate, satisfaction with resettlement;  Infrastructure: availability of compensation fees and functional recovery ratio  Temporary land occupation: availability of restoration fees, progress of land restoration

22.2.3 Post-evaluation

After project implementation, the resettlement activities will be subject to post-evaluation using the

56 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project theory and methodology for post-evaluation on the basis of M&E. Successful experience and lessons of land-expropriated farmers will be evaluated to provide experience that can be drawn on for future resettlement. Post-evaluation will be conducted by an external independent M&E agency appointed by MPMO. The post-evaluation agency will prepare terms of reference for post-evaluation to establish a system of evaluation indicators, conduct socioeconomic analysis and survey, and prepare the “Resettlement Post-evaluation Report” for submission to the Bank.

57 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project

23 Entitlement Matrix

Type Impact Compensation and resettlement policy Compensation rate (1) The composite location-based land price consists of land compensation fees and a resettlement subsidy, in which land compensation fees account for 40%, and the resettlement subsidy (including the basic endowment insurance fund for LEFs) accounts for 60%. (2) The agricultural population to be resettled is equal to the amount of acquired cultivated Compensation rate for LA: 49,000-60,000 Permanent 1,253.89 mu of collective land will land14 divided by the per capita cultivated area of the affected entity before LA. The total yuan; acquisition of be acquired, affecting 552 population of the affected entity is the resident agricultural population eligible for resettlement Compensation rate for young crops: 1,200 collective land households with 1,714 persons before the date of the LA announcement. For registered persons to be resettled, the public yuan/mu security, and labor and social security departments shall go through the household registration conversion and endowment insurance formalities timely. If the per capita income of an AH is less than the urban MLS standard, the urban MLS system will apply. According to the Updated Benchmark Land 535 mu of state-owned land will be Permanent A certain land use cost should be paid for the state-owned construction land occupied for the Prices of Urban Land of Ma’anshan occupied permanently, all being occupation of Project, based on the benchmark land price for the project area promulgated by the Ma’anshan Municipality, the project area belongs to a unoccupied land along rivers or state-owned land Municipal Government. Level-4 industrial land, with a compensation water systems. rate of 225,300 yuan/mu. All temporarily occupied land is All temporarily occupied land is within the Temporary land within the boundary line on both / boundary line, and no additional LA is occupation sides of the Cihu River. required. Affected special facilities will be compensated for or rebuilt as required according to the former function, size and standard, and those that cannot be rebuilt will be compensated for at Scattered trees, waste pools, See Section 5.3 for specific compensation Ground attachments replacement cost. greenhouses, etc. rates. Ground attachments affected by the Project will be compensated for directly at replacement cost. 27 vulnerable HHs with 32 Laborers in vulnerable households will be provided with occupational training, and employment persons, including 14 MLS HHs information and guidance in order to increase their job opportunities. During project Vulnerable groups / with 19 persons, and 13 construction, laborers in vulnerable households will have priority in being employed for five-guarantee HHs with 13 unskilled jobs. The government will provide living subsidies.

14 Cultivated land refers to vegetable plots, irrigated land, non-irrigated land, and land for cash crops. Intensive breeding fishponds (including fry ponds) are counted as cultivated land.

58 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project

Type Impact Compensation and resettlement policy Compensation rate persons All costs and management fees involved in such appeal should be exempted, and reasonable Appeals / / costs so incurred will be disbursed from contingencies.

59 Resettlement Action Plan of the Ma’anshan Cihu River Basin Improvement Project Appendixes

Appendix 1 Due Diligence Report of the Project

Appendix Minutes of Participation and Consultation

Time July 17, 2012 Place conference room of MPMO Organizer MPMO participant MPMO, Hohai University and DI Topic working mechanism, project preparation progress and resettlement action plan preparation Main contents and 1) The weekly meeting mechanism will be established, and the list of findings collected material shall be updated in regular. 2) The preparation progress is delayed a little bit and need to be speed up. 3) Hohai University made a brief introduction on RAP preparation and the needs of MPMO support, and discussed the project contents.

Time July 20, 2012 Place Land resource bureau of Ma’anshan Organizer MPMO participant MPMO, Hohai University Topic Consultation of land acquisition policies and practice Main contents and 1) to learn about the policies and compensation rates for land acquisition findings of Ma’anshan 2) to learn about the taxes and duties for land acquisition 3) to learn about the practice and lessons of previous land acquisition activities

Time July 24, 2012 Place Cihu Town government Organizer MPMO, Hohai University participant MPMO, Hohai University, leader of Cihu Town, 11 representative of APs including 5 women Topic APs’ participation Main contents and Currently, Cihu town has 2414 vegetable greenhouses. The annual net findings income from vegetable greenhouse is about CNY 20000 per mu. Many of labors of APs go outside for working. The males are working on the sectors of construction and decoration, and the females are mainly for catering sector. 2) The main concerns of APs are compensations could be paid adequately and timely. They hope to get the job opportunities to be created by the project.

60