47071-002: Fujian Farmland Sustainable Utilization And

External Social Monitoring Report

# 2 Semiannual Report January 2020

People’s Republic of China: Fujian Farmland Sustainable Utilization and Demonstration Project

Prepared by Sichuan Fontal Strategic Consulting Co., Ltd. for the Fujian Provincial Government and the Asian Development Bank.

NOTE

(i) In this report, "$" refers to United States dollars.

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

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

Loan No.: 3450-PRC

Fujian Farmland Sustainable Utilization and Demonstration Project

External Social Monitoring Report No. 2

Sichuan Fontal Strategic Consulting Co., Ltd. January 2020

ABBREVIATIONS

ADB - Asian Development Bank AP - Affected Person FGD - Focus Group Discussion GAP - Gender Action Plan IA - Implementing Agency M&E - Monitoring and Evaluation NCB - National Competitive Bidding PMO - Project Management Office RP - Resettlement Plan SDAP - Social Development Action Plan

Units

Currency unit = Yuan (RMB) RMB1.00 = US$0.15 1 hectare = 15 mu

1 Project Overview 1.1 Project Introduction

1 The Fujian Farmland Sustainable Utilization and Demonstration Project (hereinafter, the “Project”) formerly involved 13 counties (cities, districts) in 5 municipalities, namely Wuyishan City and Guangze County in Nanping Municipality, Datian, Youxi and Ninghua Counties in Sanming Municipality, Yongding and Xinluo Districts in Longyan Municipality, Pinghe and Zhangpu Counties in Zhangzhou Municipality, and Jiaocheng District, Zherong County, Dongqiao District and Fu’an District in Ningde Municipality, with a total construction area of 269,000 mu, including the improvement of 204,000 mu of slope farmland, including tea garden, oil tea garden, grapefruit garden, etc., and the improvement of 65,000 mu of low farmland, involving paddy rice, vegetables, pasture, pearl barley, lotus seed, etc. The Project has a gross investment of 1.242 billion yuan (equivalent to $190 million), including an ADB loan of $100 million, and a construction period of 5 years, from May 2017 to May 2022. See more details of outputs and construction contents in the 1st external monitoring report.

1.2 Scope of Construction and Changes

2 During the first round of M&E, some implementing agencies (IAs) had completed construction or quitted to implement relevant subprojects due to changes in construction conditions in the long preparation period. By the date of the previous M&E report, 10 subprojects1 were dropped out from the Project, with a total amount of $23.3 million. Their withdrawal has been approved by ADB.

3 During this round of M&E, the IAs and construction scope of the Project further changed due to a mid-term adjustment, including: 1) Guangze County Zhengyuan Eco-food Co., Ltd. was dropped out from the Project; 2) Two companies in Longyan Municipality have cancelled some components (see Footnotes 2 and 3). See Table 1-1 for the latest construction scope of the Project.

Table 1-1 Construction Scope of the Project County / No. IA city / Scope of construction district 5,000 mu paddy field in Wuyishan—water and ecological Wuyishan Zhuzi Eco- Wuyishan 1 revetment infrastructure improvement, 5,000 mu paddy field— agriculture Co., Ltd. City traffic 60,000 mu low-yield tea garden and 40,000 mu low-yield oil tea garden improvement—farmland protection and ecological Datian County Golden conservation, 18,000 mu low-yield paddy field improvement— Datian 2 Phoenix Agricultural farmland protection and ecological conservation, 4,700 mu low County Development Co., Ltd. irrigated land leveling, improvement of 4,285 mu tea garden terrace and other infrastructure, and organizational capacity building Ninghua County State- Improving 1,010 mu oil tea garden, mainly including oil tea Ninghua 3 owned Eco-forest Farm garden improvement and infrastructure construction County Co., Ltd. Longyan Longyu Improving 5,565 mu oil tea garden, 608 mu vegetable base / Yongding 4 Ecological Industry nursery, mainly including lowland and water infrastructure District Development Co., Ltd.2 improvement, seedling supply, and pest control equipment

1 The withdrew IAs include Yangzhong Town Xingkaicheng Urban Construction Co., Ltd. ($4.5 million), Youxi County Shenlang Edible Oil Co., Ltd. ($3.6 million), Ninghua County Ninghua High-tech Food Co., Ltd. ($1 million), Fujian Chunhui Tea Co., Ltd. ($1.2 million), Fujian Cuiyun Tea Co., Ltd. ($1.3 million), Ninghua County Jinxi Tea Co., Ltd. ($1.2 million), Ninghua County Houde Eco-agriculture Co., Ltd. ($1.3 million), Fujian Hongsheng G ardening Co., Ltd. ($3.6 million), Fujian Jianye Agriculture & Forestry Investment Co., Ltd. ($3.6 million) and Ningde Qilongxiang Agriculture Co., Ltd. ($2 million). 2 Longyan Longyu Ecological Industry Development Co., Ltd. applied for the cancellation of the following in

1 Longyan Green Land 4,000 mu paddy field—water infrastructure improvement and Xinluo 5 Eco-agriculture 2,000 mu paddy field protection District Development Co., Ltd.3 Improving 12,691 mu grapefruit garden, 6,328 mu oil tea garden Fujian Xinghe and 10,079 mu tea garden (including 6,651 mu organic tea Investment & Pinghe 6 garden and 3,428 mu green tea garden), mainly including land Development Group County leveling, field roads, agriculture protection, farmland irrigation, Co., Ltd. sustainable cultivation, etc., and organizational capacity building 4,460 mu oil tea field facility improvement, water facility Fujian Luyin Agriculture Jiaocheng 7 improvement, shelter forest and ecological conservation, Co., Ltd. District seedling supply, and pest control equipment 1) Construction of 500 mu fine tea variety breeding base; 2) replanting of 1,000 mu tea garden; 3) construction of composite ecological tea garden; 4) tea garden pipe irrigation and water- Fujian Farms Fu’an fertilizer integration technique extension; 5) construction and 8 Agribusiness Tea Co. District application of remote pest monitoring, diagnosis and early Ltd. warning service platform of tea garden; 6) reconstruction and expansion of tea quality test station; 7) farm product and tea quality tracing system; 8) skill training Source: fieldwork / IAs

4 Since two companies in Longyan Municipality have applied for cancellation of some components, the remaining 8 IAs covered 71 villages in 18 townships in 6 counties (cities, districts) in four municipalities by the date of this report. These 71 villages have a resident population of 118,242, including 58,044 females and a poor population of 1,948. Compared to the previous report, two villages in two townships in Guangze County and 4 villages in Xinluo District, Longyan Municipality are no longer covered. See Appendix 1 for the remaining beneficiary area of the Project.

1.3 Project Implementation Progress 5 The 8 IAs have 50 contracts (including construction and procurement) in total. By the date of this report, procurement for 28 contracts had completed, including 23 subject to national competitive bidding (NCB) and 5 subject to shopping.

6 By the date of this report, 8 contracts had been completed their implementation (5 of Fujian Luyin Agriculture Co., Ltd., two of Datian County Golden Phoenix Agricultural Development Co., Ltd. and one of Fujian Xinghe Investment & Development Group Co., Ltd.), 12 were ongoin( Two of Datian County Golden Phoenix Agricultural Development Co., Ltd., two of Longyan Longyu Ecological Industry Development Co., Ltd., 3 of Fujian Xinghe Investment & Development Group Co., Ltd., two of Wuyishan Zhuzi Eco-agriculture Co., Ltd., two of Ninghua County State-owned Eco- forest Farm Co., Ltd., and one of Fujian Farms Agribusiness Tea Co. Ltd.), 8 were ready to be implemented (3 of Datian County Golden Phoenix Agricultural Development Co., Ltd., two of Longyan Green Land Eco-agriculture Development Co., Ltd., and one of Fujian Farms Agribusiness Tea Co. Ltd.., and two of Fujian Xinghe Investment & Development Group Co., Ltd.). See Table 1-2, in which the contracts not ready for bidding are not listed.

7 See Appendix 2 for detailed progress and construction site photos.

H2 2019: 6 contracts, including 3,592 mu tea garden—slope land and water infrastructure improvement, seedling supply, 8,395 mu paddy field—lowland renovation, water infrastructure, farmland protection, 4,140 mu pasture—lowland leveling, soil monitoring, and farm product quality testing, totaling $7.36 million. 3 Longyan Green Land Eco-agriculture Development Co., Ltd. applied for the cancellation of the following in H2 2019: 9 contracts, including water infrastructure improvement (including 2,690 mu pearl barley garden, 1,820 mu low-yield oil tea garden, 1,200 mu low-yield tea garden and 2,064 mu vegetable garden), lowland improvement, terrace improvement, farmland protection, farm product quality testing, oil tea seedling supply, and farmland ecological conservation (shelter forest), totaling $7.4464 million.

2 Table 1-2 Implementation Progress of Contract Packages Bidding Implementation No. Owner Contract Package Contract No. mode Progress Longyan Green 4,000 mu paddy field—water FJ-XLLD- CW- Bidding completed, to be NCB Land Eco- infrastructure improvement, 01-01 implemented 1 agriculture FJ-XLLD- CW- Bidding completed, to be Development 2,000 mu paddy field protection NCB 06-01 implemented Co., Ltd. Low-yield oil tea garden and low- FJ-DT-CW-01- yield farmland improvement in NCB Ongoing 01 Qianping Xiang Low-yield oil tea garden and low- FJ-DT-CW-01- yield farmland improvement in NCB Ongoing 02 Qianping Xiang Datian County Tea garden and low-yield farmland Golden Phoenix improvement in Jiyang Xiang FJ-DT-CW-04 NCB Completed 2 Agricultural (Jizhong area) Development Low-yield farmland improvement in FJ-DT-CW-03- Bidding completed, to be Co., Ltd. NCB Taoyuan Town 01 implemented Tea garden and low-yield farmland FJ-DT-CW-05- NCB Ongoing improvement in Jiyang Xiang 01 Datian Subproject: supply of FJ-DT-GS-04- 100,000 tea seedlings and 20,000 NCB Completed 01 shelter forest seedlings Luyin Subproject: 4,460 mu oil tea FJ-JCLY-CW- NCB Completed field facility improvement 01 Luyin Subproject: 4,460 mu oil tea FJ-JCLY-CW- NCB Completed water facility improvement 02 Luyin Subproject: 4,460 mu oil tea Fujian Luyin FJ-JCLY-GS- garden—shelter forest and Shopping Completed 3 Agriculture Co., 01 ecological conservation Ltd. Luyin Subproject: 4,460 mu oil tea FJ-JCLY-GS- Shopping Completed garden—pest control equipment 03 Luyin Subproject: 4,460 mu oil tea FJ-JCLY-GS- garden—supply of 90,000 oil tea NCB Completed 02 seedlings Longyan Longyu Yongding Subproject: 5,565 mu oil FJ-YDLY-CW- Ecological tea garden—lowland and water NCB Ongoing 04 4 Industry infrastructure improvement Development Yongding Subproject: 5,565 mu oil FJ-YDLY-GS- Shopping Ongoing Co., Ltd. tea garden—seedling supply 03 5,000 mu paddy field in Wuyishan—water and ecological FJ-WYS-CW- NCB Completed by 88% Wuyishan Zhuzi revetment infrastructure 01 5 Eco-agriculture improvement Co., Ltd. 5,000 mu paddy field—traffic and FJ-WYS-CW- ecological revetment infrastructure NCB Completed by 88% 02 improvement Ninghua State-owned Farm: 844 mu low-yield oil tea garden improvement, land consolidation FJ-NHLC-CW- Ninghua County and cultivation, irrigation and NCB Completed by 60% 06 State-owned drainage improvement, field road 6 Eco-forest Farm and protection works in Zhongsha Co., Ltd. Xiang Ninghua State-owned Farm: 166 FJ-NHLC-CW- mu low-yield oil tea garden Shopping Completed by 80% 07 improvement, land consolidation

3 and cultivation, irrigation and drainage improvement, field road and protection works in Zhongsha Xiang in Jicun Xiang 3,800 mu tea garden Bidding completed, FJ-FANK- CW- improvement—land leveling and NCB construction expected to 01-01 Fujian Farms infrastructure construction begin in February Agribusiness Tea 7 Co. Ltd. Bid to open in January 500 mu digital (smart) eco-tea FJ-FANK-GS- 2020, procurement NCB garden demonstration 02 expected to begin in March Pinghe Subproject: integrated pest FJ-PH-GS-03 NCB Procurement underway control Pinghe Subproject: farm product quality and soil testing—soil testing FJ-PH-GS-04 NCB Completed equipment purchase Contract signed in Pinghe Subproject: oil tea garden FJ-PH-CW-01- November 2019, construction in Qiling Xiang— NCB 01 roadbed leveling tractor and operation roads underway Contract signed in Fujian Xinghe Pinghe Subproject: 5,966 mu green November 2019, tractor Investment & FJ-PH-CW-01- 8 oil tea garden construction in Qiling NCB and operation roads Development 02 Xiang—infrastructure under construction, Group Co., Ltd. completed by 50% Pinghe Subproject: 1,880 mu Budget being reviewed, organic tea garden construction in FJ-PH-CW-03 NCB bidding expected in Jiufeng Town February Pinghe Subproject: 1,506 green tea Bid to open in January garden construction in Jiufeng FJ-PH-CW-04 NCB 2020 Town Pinghe Subproject: 5,050 mu green FJ-PH-CW-05- grapefruit garden construction in NCB Ongoing 01 Banzai Town—infrastructure Source: fieldwork / 2019 procurement plan

1.4 Profiles of External Social Monitoring in this Round 8 According to the safeguard requirements of ADB loan project, Sichuan Fontal Strategic Consulting Co., Ltd. had been recruited by PMO as the external monitoring agency. The scope of monitoring includes the RF, RAP (if any prepared), SDAP, GAP, CPP ,GRM and the implementation of the LURT and land cooperation contracts signed between PIUs and villages/farmers.

9 According to the TORs and the Resettlement Framework (RF), Social Development Action Plan (SDAP) prepared at the preparation stage, the external monitor conducted a second round of M&E on social safeguards and social dimensions with the assistance of the provincial PMO, municipal / county PMOs, IAs, and township governments during January 5-10, 2020. The methods used included literature review, FGD, key informant interview, and door-to-door survey.

10 The IAs approved by ADB for the mid-term adjustment have got new components that meet the project requirements. ADB, the Fujian Provincial Department of Agriculture and Rural Affairs, and the IAs are further screening and confirming the new components. Social safeguard documents will be prepared separately for these new components, and submitted to ADB for review. Therefore, this report covers the components under the 8 existing IAs.

11 Although the number of IAs has decreased and the scope of construction, project area and beneficiary population changed, the remaining IAs will still implement the remaining subprojects in accordance with the RF, SDAP and GAP. This round of social M&E focused on:

1) Change in the scope of construction of each subproject, and its affected area and population; 2) Cumulative progress of each subproject; 3) Field survey and land examination on all ongoing construction contracts, and review on land use right transfer (LURT) and cooperation contracts of the 4 IAs involve LURT and land cooperation; 4) SDAP and GAP implementation progress; 5) Sampling survey on benefits for different groups; 6) Information disclosure and grievance redress; and 7) Key issues, recommendations and subsequent work plan.

12 In this round of M&E, the task force monitored social development and resettlement/LURT activities comprehensively. It not only learned local socioeconomic profile from local agencies, but also conducted a sampling survey on the APs. See Appendix 3 for fieldwork photos.

5 2 Social Safeguards Categories and Impacts Screening 2.1 Impacts Screening on Involuntary Resettlement 13 By the date of this report, the task force had conducted a field survey and resettlement impact identification on the 14 construction contracts with bidding completed. The remaining 14 procurement contracts (non-construction contracts) do not involve any impacts of land use. The 14 ongoing construction contracts do not involve any additional LA and/or HD impacts during implementation stage. A component screening form has been submitted for each ongoing subproject to the provincial PMO. See Table 2-1 for resettlement impacts screening and Appendix 4 for component screening forms4.

14 To avoid disputes arising from land occupation for road construction or irrigation facility reconstruction, each local PMO will hold a meeting before construction to solve any relevant issue and develop mitigation measures. For the ongoing construction contracts, the local PMOs have conducted land consultation to varying degrees. In this round of M&E, Longyan Longyu Ecological Industry Development Co., Ltd., Fujian Xinghe Investment & Development Group Co., Ltd., Wuyishan Zhuzi Eco-agriculture Co., Ltd. and Fujian Farms Agribusiness Tea Co. Ltd. held over 10 such special meetings before construction, with over 200 participants in total, including 103 women (51%) and 10 poor residents (5%). See Appendix 5 for relevant minutes.

Table 2-1 Summary of Resettlement Impacts Screening Contract Involving No. Owner Contract Progress Type No. LA/HD? Bidding FJ-XLLD- 4,000 mu paddy field—water completed, to Longyan Green CW-01- Construction No infrastructure improvement be Land Eco- 01 implemented 1 agriculture Bidding Development Co., FJ-XLLD- completed, to Ltd. 2,000 mu paddy field protection CW-06- Construction No be 01 implemented Datian County Low-yield oil tea garden and low- FJ-DT- Golden Phoenix yield farmland improvement in Ongoing Construction No CW-01 2 Agricultural Qianping Xiang Development Co., Tea garden and low-yield farmland FJ-DT- Ongoing Construction No Ltd. improvement in Jiyang Xiang CW-05 Luyin Subproject: 4,460 mu oil tea FJ-JCLY- Fujian Luyin Completed Construction No field facility improvement CW-01 3 Agriculture Co., Luyin Subproject: 4,460 mu oil tea FJ-JCLY- Ltd. Completed Construction No water facility improvement CW-02 Longyan Longyu Ecological Yongding Subproject: 5,565 mu oil FJ- 4 Industry tea garden—lowland and water YDLY- Ongoing Construction No Development Co., infrastructure improvement CW-04 Ltd. 5,000 mu paddy field in Wuyishan—water and ecological FJ-WYS- Ongoing Construction No Wuyishan Zhuzi revetment infrastructure CW-01 5 Eco-agriculture improvement Co., Ltd. 5,000 mu paddy field—traffic and FJ-WYS- ecological revetment infrastructure Ongoing Construction No CW-02 improvement

4 In the first round of M&E, a screening table of the 5 subprojects that had broken ground was provided (including FJ-XLLD-CW-01, FJ-XLLD-CW-05, FJ-JCLY-CW-01, FJ-JCLY-CW-01, FJ-YDLY-CW-04 and FJ- YDLY-CW-04).

6 Ninghua State-owned Farm: 844 mu low-yield oil tea garden improvement, land consolidation FJ- and cultivation, irrigation and NHLC- Ongoing Construction No drainage improvement, field road CW-06 Ninghua County and protection works in Zhongsha State-owned Eco- Xiang 6 forest Farm Co., Ninghua State-owned Farm: 166 Ltd. mu low-yield oil tea garden improvement, land consolidation FJ- and cultivation, irrigation and NHLC- Ongoing Construction No drainage improvement, field road CW-07 and protection works in Zhongsha Xiang in Jicun Xiang Pinghe Subproject: oil tea garden FJ-PH- Fujian Xinghe construction in Qiling Xiang—tractor CW-01- Ongoing Construction No Investment & and operation roads 01 7 Development Pinghe Subproject: 5,050 mu green FJ-PH- Group Co., Ltd. grapefruit garden construction in CW-05- Ongoing Construction No Banzai Town—infrastructure 01 Fujian Farms FJ- Bidding 3,800 mu tea garden Agribusiness Tea FANK- completed, to 8 improvement—land leveling and Construction No Co. Ltd. CW-01- be infrastructure construction 01 implemented

15 The task force has learned that most components involve the reconstruction of existing roads, flood canals, etc., and do not involve permanent land use. However, some components will inevitably involve temporary land use during construction. Based on key informant interviews (contractor managers, village heads, etc.), since all components are public welfare works highly expected by local residents, unused land in villages is usually available for temporary use. See Appendix 6 for survey records on temporary land use. 2.2 Screening on Indigenous People (IP) 16 Although there are some individual ethnic minority residents in project area, there are no ethnic minority gathering communities in project areas. Therefore, it can be confirmed that the project does not trigger the indigenous people policy of ADB during implementation stage.

7 3 Implementation Monitoring on LURT/Land Cooperation 3.1 Profiles on LURT and Land Cooperation 17 According to the land utilization manner under the Project, a total of 86866.49 mu of land was expected to be used, including 67288 mu of public welfare land, 10,068 mu of land transfer land, 4,210 mu of land cooperation land, and State-owned land (land use rights belong to enterprises, do not need to pay land rent, etc.) of 5,300 mu The latest land use status of each sub-project is detailed in Table 3-1. Table 3-1 Land Use Statistics during Project Implementation Contracts of Contracts of Public State- Collectively Land Benefi Benefic welfare owned -owned LURT cial ial NO PIU Cooperation Area Land Area Land Area House Popula Area(m Land(mu) (mu) (mu) Quantity Area(mu) Quantity holds tion u) Ninghua State-owned 1 Ecological Forestry Co., 0 844 166 0 0 2 1010 71 306 Ltd Fujian Farms 2 Agribusiness Tea Co. 0 5,300 3,200 0 0 3 3,200 1,255 5,020 Ltd. Fujian Lvyin Agriculture 3 0 0 4460 52 4,460 0 0 510 1,897 Co., Ltd Wuyishan Zhuzi Eco- 4 agriculture Development 15,000 0 15,000 0 0 0 0 1,853 7412 Co., Ltd. Longyu Ecological 5 Industry Development 0 0 5608 2 5,608 0 0 127 483 Co., Ltd. Longyan Greenland 6 Eco-agricultural 21,782 0 21782 0 0 0 0 7,952 27,109 Development Co., Ltd Datian Golden Phoenix 7 Agricultural 10,000 0 10000 0 0 0 0 1,500 6,800 Development Co., Ltd. Fujian Xinghe Investment and 8 20,506 11237.33 9269.16 0 0 0 0 6,323 25,903 Development Group Co., Ltd. Total 67,288 17,381 69,485.16 54 10,068 5 4,210 19,591 74,930

18 According to land utilization manners of the Project, 4 IAs use 67,288 mu land for public welfare without any needs of land contract. The remaining 4 IAs have entered into 59 land contracts in total, in which 58 contracts were reviewed in the first round of M&E, indicating that these contracts comply with the ADB policy, and applicable PRC laws and regulations. These 4 IAs totally use 19,578 mu land and brought direct benefits to 7,706 people of 1,963 families. See details in Table 3-2.

Table 3-2 Land Cooperation/Transfer Used by 4 IAs Involving Land Contracts State- owned Collectively- Number of Cooperation Beneficial S/N Name of PIU City/County/District Crops Land owned Land Beneficial Mechanism Population Area Area (mu) Households (mu) Ninghua State- owned Eco- Land 1 Ninghua Oil-tea 844 166 71 306 forestry Co., cooperation Ltd.

8 Longyan Longyu Eco- 2 industrial Yongding Oil-tea 0 5608 Land transfer 127 483 Development Co., Ltd. Fujian Luyin 3 Agriculture Jiaocheng Oil-tea 0 4460 Land transfer 510 1897 Co., Ltd. Fujian Farms Land 4 Agribusiness Fu’an Oil-tea 5300 3200 1255 5020 cooperation Tea Co. Ltd. Total 6144 13434 0 1963 7706

3.2 Implementation Monitoring on LURT 19 According to the latest monitoring, there are 54 LURT contracts signed under this project, among which 52 agreements were signed directly with the villagers and 2 agreements were signed directly with village committee, involving a total land area of 10,068 mu of Collectively-owned Land; See Table 3-2 Table 3-2: Contracts of LURT during project implementation State-owned Land Collectively-owned Land Contracts of LURT PIU Area Area Remarks (mu) (mu) quantity area (mu) Fujian Luyin 0 4460 52 4460 signed with Villagers Agriculture Co., Ltd.. Longyu Ecological Industry signed with Village 0 5608 2 5608 Development Co., committee Ltd. Total 0 10068 54 10068

20 In the first round of M&E, it is confirmed that 53 of the LURT contracts under the project are in accordance with PRC laws and regulations, as well as ADB’s relevant policies. The implementation of these LURT contracts are going well, and land rentals had been fully paid to involved village committees and villagers in a timely manner.

21 In this round of M&E, Longyan Longyu Ecological Industry Development Co., Ltd. newly entered into a land transfer contract with the Shanxia Village Committee in August 2019.

22 The on-site survey of external monitor shows that the Shanxia Village Committee entered into a land transfer contract for 600 mu (which affected 87HHs) with Longyan Longyu Ecological Industry Development Co., Ltd. External monitoring team conducted a questionnaire survey on 31 households involved in land transfer (the total is 87HHs,sampling rate: 35.6%).According to the review: 1）The 600 mu of wasteland is almost uncultivated. 2 ） This LURT contracts involving collective owned land, during the negotiation village committees conducted farmer representative meetings to discuss and agree the contracts and they include the minutes of meetings and decisions. Signatures were confirmed by 28 farmer representatives. 3）The transferred land will not change in ownership and nature, and will be used for vegetable cultivation / as a nursery, which is favored by local residents. 4) authorization letters were provided to the village committee from 87 farmer households involved in LURT in Aug 2019.This contract was entered into directly with the Shanxia Village Committee. 4 consultation meetings on the proposed transfer were held in 2018-2019, with 112 participants in total, in which over 40% were women. This contract has a lease term of 10 years, and the land will be developed in 3 stages, where the rental rate of Stage 1 is 260 yuan/mu/year, and rental will be paid twice a year. The rental is based on market price and has been received fully by the 87 AHs.

9 5）Longyu Company will involve the AHs in cultivation and project management. Vegetable cultivation in Stage 1 will generate about 5,000 jobs, with daily pays of 160-300 yuan. In case of labor shortage, 30% of laborers will be recruited from nearby villages. This will bring long-term employment and stable income to local residents, who therefore expect the subproject can be implemented as soon as possible. 6）According to the sampling survey on 31 AHs (36%), an average household has 4.82 mu of land and a transferred land area of 1.72 mu. Such land is wasteland and generates almost no income. After LURT, vegetable cultivation and nursery development will increase land output greatly. 7）Longyan Longyu Ecological Industry Development Co., Ltd. had paid the Stage 1 rental of 81,120 yuan to the AHs. The sample households confirm that the rental is based on market price and has been received fully.

23 See Appendix 7 for Land transfer contract / village representative’s authorization letter/ Land transfer payment voucher.

3.3 Implementation Monitoring on Land Cooperation 24 According to the latest monitoring, there are 55 land cooperation contracts signed under this project, among which 2 agreements were signed directly with the enterprise and 3 agreements were signed directly with farmer’s cooperative, involving a total land area of 4210 mu of Collectively-owned Land; See Table 3-3.

25 According to latest monitoring, there were no change on Land Cooperation and land use. it is confirmed that all the 5 land cooperation in the project are in accordance with PRC laws and regulations, as well as ADB’s relevant policies. The implementation of land cooperation contracts is smooth so far, and cooperation mechanisms remain unchanged.

Table 3-3 Land Area of LC during project implementation State-owned Land Collectively-owned Contracts of Land PIU Area Land Area Cooperation Remarks (mu) (mu) quantity area (mu) Ninghua State- Signed with owned Eco- 844 166 2 1010 enterprises forestry Co., Ltd. Fujian Farms Signed with Agribusiness Tea 5300 3200 3 3200 Farmers’ Co. Ltd. cooperative Total 6144 3366 5 4210 Note: (1)166 mu of collective land comes from the land transfer contracted by the cooperative enterprise with the village committee in Ninghua; (2) The use right of the 5,300 mu of state-owned land of the Fujian Farms Agribusiness Tea Co. Ltd. is owned by the company itself.

26 There are 5 land cooperation agreements (see Table 3-3), for which land use right will not be changed and the land will still be collective owned and contracted to farmer households. The land cooperation agreements are compliant with relevant regulations. The principle of benefit sharing between enterprises and Farmer’s cooperative was followed as well. In addition to land cooperation, farmers can also benefit from the collectives and/or farmer’s cooperatives, and enjoy the opportunities to participate in these subprojects for earning more incomes. see Interview Minutes with Farmers’ Cooperatives in appendix 10.

5 This data is consistent with NO. 1 external monitoring report. The reason for inconsistent with No.2 internal monitoring report due to:1)Guangze County Zhengyuan Eco-food Co., Ltd. was dropped out from the Project 2) Fujian Luyin Agriculture Co., Ltd. did not sign land cooperation agreements.

10 Table 3-4: Land Cooperation Mechanism S/N IAs Cooperation mechanism (company/farmer cooperative/) Ninghua State-owned Eco- 1 80%:20% (annually) (benefit sharing) forestry Co., Ltd. Fujian Farms Agribusiness Tea 2 Total products sales 50%:50% (monthly) Co. Ltd.

11 4 Implementation Monitoring on Gender and Social Development Plans

27 In this round of M&E, the IAs conducted planned activities under the SDAP and GAP prepared earlier in order to minimize the Project’s negative social impacts, especially impacts on vulnerable groups (including the poor, women, old people and the disabled). The progress is as follows: 1) The Fujian Provincial PMO has established a systematic organizational structure to plan, coordinate, implement and monitor social development and land use related activities. Each of the 8 IAs has appointed 1-2 members to implement the RF, LURT framework, SDAP and GAP. The provincial PMO has organized site visits, and project management training and exchanges, including 9 times of training from April 2018 to December 2019. 2) The AIs have offered extensive skill training to villagers: From July to December 2019, training on cultivation skills, startup, seedling care, etc. was offered to 3,418 persons in total, including 1,297 women (38%) and 400 poor residents (12%). Since project inception, skill training has been offered to 4,448 persons in total, including 1,795 women (40%) and 471 poor residents (11%). Some IAs have offered training to non-AHs. From July to December 2019, agricultural skill training was offered 18 times to 1,064 persons in total, including 194 women and 77 poor residents. 3) Construction has created considerable employment and procurement opportunities: From July to December 2019, the Project generated about 6,157 jobs, including 19 permanent and 6,138 temporary ones, including 4,229 women and 673 poor residents. Since project inception, the Project generated about 6397 jobs, including 99 permanent and 6298 temporary ones, including 4324 women and 725 poor residents. 4) 9 contractors have participated in project construction, with a total procurement amount of over 20 million yuan to date. No labor dispute or appeal has occurred to date. 5) For the 9 ongoing contracts, the IAs have disclosed construction information by means of publicity meeting, announcement, etc. By the date of this report, there was no documented pending appeal, and all feedback on temporary construction impacts had been handled properly. 6) The type of land cooperation has been made clear before contract signing, and contracts are entered into by IAs and AHs voluntarily through consultation. To avoid any dispute arising from land occupation for road construction or irrigation facility reconstruction, the local PMOs have held over 10 such special meetings before construction, with over 200 participants in total, including 103 women (51%) and 10 poor residents (5%). 7) The PPMO has appointed social and environmental experts for internal monitoring. The internal monitoring report was submitted in February 2019, and the draft No.2 external M&E report was submitted at the end of January 2020. Sichuan Fontal Strategic Consulting Co., Ltd. will monitor and evaluate RF, SDAP and GAP implementation, and submit M&E reports to the provincial PMO and ADB semiannually as the external M&E agency. See Table 4-1 for details. 28 In this round of M&E, the PMOs and IAs also conducted planned activities under the GAP prepared earlier in order to mainstream social gender and to address gender related issues during implementation stage, including: i) providing sufficient project management staff and implementation consultants to monitor the GAP effectively; ii) enabling women to participate all project activities effectively, including training and employment; iii) fulfilling the employment target for women at the construction stage where possible; and iv) ensuring that men and women receive equal remuneration and working conditions. See Table 4-2 for more details.

12 Table 4-1 Implementation Status of Social Development Action Plan Progress in this Cumulative Progress Item Proposed action Target group Monitoring indicator monitoring period (Jul (as of Dec 2019) to Dec 2019) A. Measures to Strengthen Project Management Offer project management Project management The PMO has organized training to the provincial, city 50 men-days of project training was offered in 9 times of training from and county PMOs, and management training November 2019, with 60 April 2018 to December township and village staff. Provincial, city participants. See 2019. 7 times of project and county Train the county PMO staff on 200 men-days of SDAP and Appendix 8. management training, 2 IA staff training PMOs, township the SAP and GAP. GAP training times of social and and village 20 persons responsible for gender-related training. officials SAP and GAP implementation with more than 200 Photos and record forms of participants trainees The provincial, city and county Each of the 8 IAs has 16 people form IAs has PMOs appoint staff to be appointed 1-2 members appointed to implement responsible for GAP, SAP and 20 persons responsible to implement the SAP the SAP and GAP. RAP implementation and and GAP. These monitoring. members are stable. The PPMO has Up to now, 3 of internal Ensuring the appointed social and monitoring report has implementation of IAs and local environmental experts been submitted and 2 of the GAP, SAP, farmers for internal monitoring. external monitoring RAP and EMP Monitoring reports on all social The internal monitoring report has been safeguard measures report was submitted in submitted. February 2019, and the No.2 external M&E report will be submitted at the end of July2019. Project information The county PMOs and Number of participants and For the 9 ongoing As of Dec 2019, there disclosure township governments hold time contracts, the IAs have have been 746

13 meetings to agree on the disclosed construction participants, including project site, range, and starting information by means of 288 women (38.6%) and and ending times. publicity meeting, 51 poor residents (6.8%). announcement, etc. Photos and minutes see From July to December Appendix 9. All affected 2019, 254 persons villages and Photos and minutes attended consultation persons and information disclosure meetings in total, including 89 women and 23 poor residents. B. Measures to Mitigate Project Potential Negative Impact The county PMOs should By the date of this there was no schedule construction properly report, there was no documented pending to reduce impacts on local documented pending appeal farmers. appeal, and all Number of appeals about feedback on temporary Reducing project All affected construction impacts received construction impacts impacts on local villages and had been handled agriculture persons properly. See Appendix 6. Construct waste collection No environmental No environmental appeal Satisfaction of locals with stations to avoid pollution. appeal has occurred to has occurred to date. environmental management date. The county PMOs will hold a Number of participants, time, Over 10 such special There were total 14 meeting before construction to minutes and photos meetings have been special meetings have Avoiding disputes solve any relevant issue and held before been held ,with over 300 arising from land County PMOs, Effect of appeal mechanism develop mitigation measures. construction, with over participants in total, occupation for road all affected 200 participants in total, including 153 women construction or villages and Number of disputes, including 103 women and 37 poor residents irrigation facility households dispositions and monitoring (51%) and 10 poor reconstruction report residents (5%). See Appendix 5. Avoiding conflicts Introduce project details to There is no non-AHs There is no non-AHs Number of extra households with nearby villages non-AHs, and encourage them Non-AHs, non- participating in the participating in the and cooperatives participating and households to accept the cooperation IAs, affected Project through Project through in the Project through (out of the project mode, and participate in the villages and IAs cooperation with any IA cooperation with any IA cooperation area) Project. yet. However, some IAs yet.

14 Provide the same training and Frequency of training, and have offered training to technical support to them. results of such support non-AHs. From July to December 2019, Since project inception, agricultural skill training skill training has been was offered 18 times to offered to 4,448 persons 1,064 persons in total, in total, including 1,795 Benefits for non-AHs (case including 194 women women (40%) and 471 analysis) and 77 poor residents. poor residents (11%). Benefits of such cooperation for non- AHs will be covered in the next report. Explain the cooperation mode The type of cooperation The county PMOs and in advance, such as land input has been made clear shanxia village Number of participants, photos or farm product ordering, and before contract signing, committees participate in and records enter into cooperation and contracts are contract signing, external contracts. entered into by IAs and monitoring team conduct The county PMOs and village AHs voluntarily through due diligence on land committees participate in Satisfaction of local farmers consultation. See use. see Appendix 7 All affected Reducing contract signing, and conduct with such cooperation Appendix 6. villages and cooperation risks due diligence on land use. households The external M&E agency Sichuan Fontal It is confirmed that all the reviews cooperation contracts, Strategic Consulting 5 land cooperation and reflects this in the social Co., Ltd. reviewed agreement in the project safeguard report. contracts and reported are in accordance with relevant information in PRC laws and the No.1 external M&E regulations, as well as report. ADB’s relevant policies. C. Measures to Enhance Project Benefits Support 73 local farmers’ There are 11 farmers’ There are 30 farmers’ cooperatives to promote their cooperatives under the cooperatives under the development. Project, which need Project, detailed files Supporting local 73 cooperatives and details further confirmation. have been established farmers’ Project area (name, foundation time, Detailed files have been for them. cooperatives location, nature, scale, etc.) established for them, and relevant training offered. See Appendix 10.

15 Offer 62,990 men-days of From July to December Since project inception, training to farmers, in which 2019, training on skill training has been 50% are women and 10% poor cultivation skills, startup, offered to 4,448 persons residents (5 years). seedling care, etc. was in total, including 1,795 Strengthening skill Local women Number of trainees, training offered to 3,418 persons women (40%) and 471 training and and poor materials, semiannual reports, in total, including 1,297 poor residents (11%). guidance residents training program and data women (38%) and 400 poor residents (12%).See Appendix 11. Employ local laborers to From July to December Since project inception, participate in project 2019, the Project the Project generated construction. generated about 6,157 about 6397 jobs, including Number of laborers employed jobs, including 19 99 permanent and 6298 and income change arising permanent and 6,138 temporary ones, including from employment temporary ones, 4324women and 725 poor including 4,229 women residents. and 673 poor residents. Attracting local APs, including laborers to women and participate in Contractors provide See Appendix 12. poor residents project construction information on casual labor Records and photos demand and requirements. The county labor and social No labor dispute or No labor dispute or security bureaus review appeal has occurred to appeal has occurred to employment contracts, and date. date. Number of labor disputes and villages recommend villagers appeals during construction for construction (including women and poor residents) to increase their income. Encouraging Hold a seminar to learn local Local residents have Since project inception, women and poor residents’ opinions on and expressed opinions on there have been 746 Number of participants, residents to expectations for the Project, in and expectations for the participants, including 288 photos, records and minutes participate in the which at least 50% are women Project. See Appendix women (38.6%) and 51 Project and 10% poor residents. 13. poor residents (6.8%).

16 Give priority to women (not From July to December less than 35%) and poor 2019, 254 persons residents (not less than 10%) attended consultation and Proportion of women attending when recruiting casual laborers nformation disclosure meetings (if they are willing). meetings in total, ncluding 89 women and 23 poor residents Women’s federations, poverty APs, including 471 poor residents Proportion of poor residents reduction offices organize women and attended meetings. attending meetings women and poor residents to poor residents attend training to improve their 6,157 jobs have been 6,397 jobs have been Total number of jobs offered capacity (not specified for the offered in total offered in total Project) Number of jobs offered to 4,229jobs have been 4,324 jobs have been

women offered to women. offered to women. 673 jobs have been 725 jobs have been Number of jobs offered to poor offered to poor offered to poor residents. residents residents From July to December Since project inception, 2019, training on skill training has been cultivation skills, startup, offered to 4,448 persons Frequency of training offered seedling care, etc. was in total, including 1,795 by local women’s federations, offered to 3,418 persons women (40%) and 471 and number of women trained in total, including 1,297 poor residents (11%). women (38%) and 400 poor residents (12%).

The IAs will generate full-time The IAs have offered The IAs have offered 6298 Temporary jobs offered by IAs and part-time jobs, which will 200 temporary jobs. temporary jobs. be first made available to The IAs have offered 19 The IAs have offered 99 Permanent jobs offered by IAs women (not less than 35%) APs, including permanent jobs. permanent jobs. Jobs offered by IAs and poor residents (not less women and Number of jobs offered to 115 jobs have been 1324 jobs have been to local residents than 10%). poor residents women offered to women. offered to women. 60 jobs have been 725 jobs have been Number of jobs offered to poor offered to poor offered to poor residents. residents residents. Utilizing local IAs, affected Number of local enterprises 8 contractors have 9 contractors have building materials villages participating in construction participated in project participated in project

17 and transport Quantities of local building construction, with a total construction, with a total resources Utilize local building materials materials purchased procurement amount of procurement amount of and transport resources where Costs of local transport over 17.8 million yuan over 20 million yuan to possible. resources utilized to date. date. Income and opportunities D. Monitoring and Evaluation Conduct internal monitoring on Quality of monitoring reports The internal monitoring There were 3 of internal SDAP and GAP report was submitted in monitoring reports and 2 M&E on SAP and implementation semiannually, SDAP and GAP February 2019, and the external monitoring GAP and external M&E annually. monitoring Submission schedule of No.2 external M&E reports has been implementation reports monitoring reports report will be submitted submitted at the end of January 2020. Source: fieldwork / IA

18 Table 7-1 Summary of GAP Activities and Progress Progress in this monitoring period Cumulative Progress (as of Dec Output Action Target (Jul to Dec 2019) 2019) Hold a consultation meeting The participation rate of From July to December 2019, 254 Since project inception, there have and an information women is not less than 50% persons attended consultation and been 746 participants, including 288 disclosure meeting in the (currently: 30%), and that of information disclosure meetings in women (38.6%) and 51 poor residents project area before poor residents not less than total, including 89 women and 23 (6.8%). implementation to introduce 10%. poor residents the Project, and learn local residents’ opinions, attitudes Output 1: and expectations. Fertile Give priority to women and Not less than 35% of casual From July to December 2019, the Since project inception, the Project Farmland poor residents when laborers employed (58,200 in Project generated about 6,157 jobs, generated about 6397 jobs, including Creation recruiting casual laborer at total) are women, and not less including 19 permanent and 6,138 99 permanent and 6298 temporary the implementation and than 10% poor residents. temporary ones, including 4,229 ones, including 4324women and 725 operation stages. women and 673 poor residents. poor residents.

Land contracts are signed by At least 75% of such contracts In this round of M&E, Longyu entered couples. are signed by couples (to be into a new land transfer contract with verified during the first year Shanxia Village. Over 40% of transfer M&E survey). contracts were signed by couples. Offer training to the Training for female From July to December 2019, Each IA has at least one female management staff for 1,520 management staff is not less special training has been offered for member responsible for social and Output 2: men-days in total. than 532 men-days (35%). not less than 300 men-days. gender monitoring. Special training Sustainabl has been offered for not less than 550 e men-days. Cultivation The IAs give priority to Not less than 35% of casual From July to December 2019, training Since project inception, skill training and women when recruiting local laborers employed (3,200 in on cultivation skills, startup, seedling has been offered to 4,448 persons in Farming employees. total) are women, and not less care, etc. was offered to 3,418 total, including 1,795 women (40%) Practices than 10% poor residents. persons in total, including 1,297 and 471 poor residents (11%). women (38%) and 400 poor residents (12%). Output 3: Each county PMO appoints The county PMOs appoint at Except the provincial PMO, 8 IAs has Except the provincial PMO, 9 IAs has Institutiona one female member least 13 female members. at least one female member at least one female member l Capacity responsible for social and responsible for social and gender responsible for social and gender Building gender issues. monitoring, totaling 8. monitoring, totaling 10.

19 A certain proportion of Training for women is not less From July to December 2019, training Since project inception, the 8 IAs have 62,990 men-days of training than 31,495 men-days (50%), on cultivation skills, startup, seedling offered skill training to 4,448 persons for farmers is available to and that for poor residents not care, etc. was offered to 3,418 in total, including 1,795 women (40%) women and poor residents. less than 6,300 men-days persons in total, including 1,297 and 471 poor residents (11%). (10%). women (38%) and 400 poor residents (12%). Offer gender development Number of trainees The 8 IAs have assigned 20 persons The 9 IAs have assigned 23persons to training to the provincial and to attend relevant training in total. attend relevant training in total. county PMOs, and IAs. Offer training on At least 7,500 men-days, in From July to December 2019, training Since project inception, skill training management, maintenance, which not less than 30% of on management, maintenance. was has been offered to 1530 persons in etc. to IAs, cooperatives, participants are women offered to500 persons in total, total, including 680 women (44%) and water users association, etc. including 320 women (64%) and 170 296 poor residents (19%). poor residents (34%). The provincial PMO appoints Professionals are appointed to The 8 IAs have assigned about 20 9 PIUs under the project have an external M&E agency to collect relevant information members to collect relevant assigned 1-2 special personnel to take monitor SAP and GAP and data. information and data in total. charge of relevant information and implementation. data on social / gender development on the project. The estimated number of participants is 23. Source: fieldwork / IA

20 5. Monitoring Conclusions and Follow-up Actions in Next Steps 5.1 Social Safeguards Screening and Monitoring

29 To date, 11 subprojects are to withdraw from the Project, and there are only 8 remaining IAs. By the date of this report, procurement under 28 contracts had begun, including 23 ones subject to NCB and 5 subject to shopping.

30 Until now, this project does not involve any impacts of land acquisition and resettlement (LAR). So ADB’s Involuntary Policy is not triggered, yet no RP need to be prepared.

31 After investigation during implementation stage, it was confirmed that all subprojects will not involve impacts related to ethnic minorities. Although there are some individual ethnic minority residents in the project area, there are no ethnic minority gathering communities in project areas. Therefore, it is confirmed that the project does not trigger the indigenous people policy of ADB.

5.2 Land Use Rights Transfer (LURT) and Land Cooperation Implementation and Monitoring

32 In term of LURT, according to the latest monitoring, there are 54 LURT contracts , among which 2 signed with village committees and 52 signed directly with farmers under this project, which involving a total land area of 10,068 mu of Collectively-owned Land;

33 According to the latest monitoring, there are 5 land cooperation contracts signed under this project, among which 2 agreements were signed directly with the enterprise and 3 agreements were signed directly with farmer’s cooperative , involving a total land area of 4210 mu of Collectively- owned Land

34 It is confirmed that all the LURT and land cooperation contracts under the project are be implemented in accordance with PRC laws and regulations, as well as ADB’s relevant policies. The LURT and land cooperation contracts are all well implemented so far, and land rentals and/or benefits have been paid timely and fully following these contracts.

5.3 Implementation Progress of Gender and Social Development Plans

35 GAP and SDAP are under implementation in 8 remaining subprojects. The SDAP and GAP are being implemented orderly. Since project inception, 746 persons have been involved in participation activities, 4,448 persons have received agricultural skill training, and 6,397 persons have been employed in total. Local women and poor residents participate in and benefit from the Project equally, and the respondents in the sampling survey are highly satisfied. 5.4 Development of Farmers’ Cooperatives

36 Up to now, about 11 cooperatives are under operation in implementation in 8 remaining subprojects, The implementation of the Project will help these farmers’ cooperatives improve technical facilities or improve the land quality so that to help involved local farmers to develop production and get expected social and economic benefits.

37 In addition to financial supports to farmers’ cooperatives, technical training and guidance were also provided 3,418 persons in total, including 1,297 women (38%) and 400 poor residents (40%12%). Under the organization of PPMO, social experts will provide training on relevant knowledge to farmers’ cooperatives and households involved in LURT/land cooperation according to the needs of the CPMOs and PIUs.

21 5.5 Information Disclosure and Grievance Redress

38 According to the survey, most of the 8 IAs consulted with local governments and residents on construction scope, program, etc. at the preparation stage, and prepared minutes. For any ongoing contract, its construction scope and period, environmental requirements, and grievance redress procedure have been disclosed.

39 At the preparation and implementation stages, all IAs have conducted extensive consultation with the AHs, including discussion, land lease meeting, project publicity, etc. From July to December 2019, 254 persons attended consultation and information disclosure meetings in total, including 89 women and 23 poor residents. Since project inception, there have been 746 participants, including 288 women (38.6%) and 51 poor residents (6.8%). 1) Farmer consulting meetings have been held regularly to learn their needs and issues, and provide reasonable assistance timely. To avoid any dispute arising from land occupation for road construction or irrigation facility reconstruction, the local PMOs have held over 10 such special meetings before construction, with over 200 participants in total, including 103 women (51%) and 10 poor residents (5%). See Appendix 5. 2) A village discussion meeting is held or project information disclosed before implementation, including project site, scope, starting and ending times, grievance redress mechanism, etc. See Appendix 5. 3) A consultation meeting is held with farmers on land cooperation or transfer, and minutes prepared and signed by representatives. See Appendix 7 for the land transfer contract between Longyan Longyu Ecological Industry Development Co., Ltd. and the Shanxia Village Committee. 4) At the implementation stage, extensive training is offered on agricultural and other skills. Since project inception, skill training has been offered to 4,448 persons in total, including 1,795 women (40%) and 471 poor residents (11%). Some IAs have offered training to non-AHs. From July to December 2019, agricultural skill training was offered 18 times to 1,064 persons in total, including 194 women and 77 poor residents. See Appendix 12.

40 A grievance redress mechanism (GRM) has been established and well operated, the APs are highly aware of the Project. There was no complaints and appeals received and redressed

5.6 Main Issues and Recommendations:  RF: 41 Even the Project is expected to have no significant resettlement impacts, the Asian Development Bank (ADB) has classified the project as category B for involuntary resettlement.

42 But the project will further screen all sub-project during their detailed design to identify potential IR impacts, to determine whether the Project will involve any land acquisition or resettlement, in order to address any potential land acquisition impacts during project implementation.

43 Based on above, it is recommended that: 1) the 8 remaining IAs should submitted the land use Screening Forms to PMOs when they finish project detailed design; 1) Before the project carried out, IAs should make a full discussion with the construction unit and try to avoid any temporary land use in the construction process as far as possible; 2) If some sub-projects involved any involuntary resettlement impacts, IAs should submitted land use Screening Forms to PMO, PMO and IAs need confirm whether any further actions are required (i.e., need to prepare a RP) or not (i.e., no IR impacts or risks); and 3) Provide training on relevant knowledge to farmer’s cooperatives and local farmers involved in LURT/land cooperation according to their needs.

 SDAP & GAP: 44 The SDAP and GAP aim to ensure the maximization of social positive impacts and minimization of social negative impacts of the project, including to promote the gender mainstreaming in project

22 life circle. In this round of M&E,11 sub-projects were dropped out from the Project, so there is only 8 remaining IAs. Some IAs also ask for cancel some components; meanwhile, due to the long preparation time and project adjustment, the progress of the implementation for each sub-project is not same , some have completed the construction, but some sub-projects have not yet begun.

45 Based on above, it is recommended that: 1)Due to the significant changes of construction content and scope of the project, the monitoring indicators of the social development Action plan (SDAP) and Gender Action plan (GAP) will need to be updated by PMO, and approved by the ADB as soon as possible; 2)Formulate a reasonable implementation schedule and monitoring templates, PMOs and all remaining IAs will need to work closely together to strictly carry out the relevant activities of SDAP and GAP as soon as possible; and 3)Provide training to staff of PMOs, PIUs and other concerned agencies on ADB’s requirements on social safeguards and social dimensions during project implementation.

 CPP: 46 At the preparation and implementation stages, all IAs have conducted extensive consultation with the AHs, including discussion, land lease meeting, project publicity, etc. From July to December 2019, 254 persons attended consultation and information disclosure meetings in total, including 89 women and 23 poor residents. Since project inception, there have been 746 participants, including 288 women (38.6%) and 51 poor residents (6.8%).

47 Based on above, it is concluded and recommended that: 1) consultation meetings were carried out at different times and locations, not only to introduce specific plan contents, but also to encourage villagers to voice their own opinions and suggestions, and their concerns; and 2) In addition, more consultation activities are or will be held during detailed design and project implementation with a focus on female, poor, and other vulnerable groups.

 GRM: 48 So far, the project sets up a transparent and efficient grievance redress mechanism (GRM) to settle disputes, the GRM is being well operated, the APs are highly aware of the Project. There was no complaints and appeals received and redressed. 1) PPMO and CPMOs, IAs, contractors should responsible for the fair, transparent and effective operation of GRM together; 2) Establish a simple registry system to document and track grievances received (including forms to record complaints and how they have been resolved); 3) Each construction site providing the public with updated project information, the GRM process, and contact names and details for GRM entry points. Prior to project construction, the CPMO will notify all relevant agencies about the project and GRM so that if these agencies receive complaints, they know to contact the PMO and follow up as necessary. 4) Report on progress of the GRM in semi-annual social monitoring and progress reports to ADB.

5.7 Next External M&E Monitoring 49 Next external M&E report will be submitted in the end of July ,2020, in which the external monitor will pay attention to the following aspects: 1) Changes to the scope of construction, and implementation progress; 2) Further defining the project area and beneficiary population, and learning the socioeconomic profile and cultivation of the project area; 3) Check If any new contract involves LA and/or HD, and triggers the RF; 4) Land transfer and cooperation implementation status, and benefits for cooperatives, village committees and villagers; 5) SDAP and GAP implementation status, especially how women and poor residents participate in the Project, and if they benefit equally; and 6) Information disclosure, public participation and grievance redress.

23 Appendixes Appendix 1 Beneficiary Area of the Project

Summary of Beneficiary Area of the Project

County / city / No. IA Tonwship Village Beneficiaries district

Wuyishan Zhuzi Eco- Xingxian, Wengdun, Wuyi, Wufu, 1 Wuyishan City Wufu Town 7412 agriculture Co., Ltd. Xiwei, Tianwei, Maochang, Dajiang

Jiyang, Jizhong, Panlin, Gaosheng, Jiyang Xiang Yankeng, Daru, Daqian, Sanzha, Deren, Guoqing, Fanglin, Shangfeng Shipai, Laocuo, Shangpo, Mashan, Gaishan, Gongqiao, Shikeng, Shipai Town Changxi, Xiaohu, Taoshan, Taokeng, Datian County Golden Aojiang, Sanfang, Xiayang, Longkeng, 2 Phoenix Agricultural Datian County Jingcheng 6800 Development Co., Ltd. engcuo, Taoxin, Guangtang, Taolin, Taoyuan Qiaoshan, Taoyuan, Xi’an, Shangju, Town Qiancuo, Qiancun, Dongfeng Farm, Yangkeng, Doingban, Yulan Qianping, Liming, Fujing, Jikeng, Qianping Huanglong, Shanchuan, Huping, Xiang Shangdi, Xiakeng, Xiadi, Beikeng Jicun Xiang Wuceng Ninghua County State-owned 3 Ninghua County Zhongsha 306 Eco-forest Farm Co., Ltd. Hewu, Lianshe Xiang Longyan Longyu Ecological Yongding Hukeng 4 Industry Development Co., Shanxia 483 District Town Ltd. Longyan Green Land Eco- Shizhong 5 agriculture Development Co., Xinluo District Zhongxin, Zhongxi 27109 Town Ltd.

Banzai Town Dongkeng

Daxi Town Dasong, Daqin

Fujian Xinghe Investment & Qiling Xiang Guizhu, Xinnan 6 Pinghe County 25903 Development Group Co., Ltd. Jiufeng Sankeng, Meishan Town

Xiaoxi Town Chankeng, Lianguang, Xilin, Xinqiao

Fujian Luyin Agriculture Co., Jiaocheng Linyangtou, Wushan, Hongmenli, 7 Badu Town 1897 Ltd. District Handan

Shekou Tanyang Town Fujian Farms Agribusiness Songluo 8 Fu’an District Wangjia 5020 Tea Co. Ltd. Xiang . Chengyang Yangmian Town Total 74930 Source: fieldwork / IAs

Appendix 2 Detailed Description of the Latest Progress of the IAs

Longyan Green Land Eco-agriculture Development Co., Ltd.: As of September 26, 2019, two procurement contracts had been completed, where bidding for 2,000 mu paddy field protection and 4,000 mu paddy field—water infrastructure improvement had begun.

Road and flood canal to be constructed in Shizhong Town, Xinluo District, Longyan Municipality

Longyan Longyu Ecological Industry Development Co., Ltd.: Bidding and procurement for Yongding Subproject: 5,565 mu oil tea garden—lowland and water infrastructure improvement, and Yongding Subproject: 5,565 mu oil tea garden—seedling supply have been completed. The preparatory work for Yongding Subproject: 5,565 mu oil tea garden—lowland and water infrastructure improvement, the leveling of the 600 mu oil tea garden, and the construction of a 4km production road have been completed. Water infrastructure and tractor road construction, and land leveling are underway. Organic fertilizer procurement for the 5,565 mu oil tea garden has been completed using the IA’s own funds, and 36,000 oil tea seedlings have been cultivated (about 400 mu).

36,000 seedlings cultivated in the oil tea garden of the Yongding Subproject

Fujian Xinghe Investment & Development Group Co., Ltd.: 1) Farm product quality and soil testing equipment has been purchased for procurement contracts FJ-PH-GS-03 (integrated pest control) and FJ-PH-GS-04 (farm product quality and soil testing—soil testing equipment purchase) since September 2019. 2) Construction preparation is underway for construction contracts FJ-PH- CW-01-01 (Pinghe Subproject: oil tea garden construction in Qiling Xiang—tractor and operation roads) and FJ-PH-GS-04 (Pinghe Subproject: 5,050 mu green grapefruit garden construction in Banzai Town—infrastructure). 3) Budget review is underway for construction contracts FJ-PH-CW- 03 (Pinghe Subproject: 1,880 mu organic tea garden construction in Jiufeng Town) and FJ-PH-CW- 04 (Pinghe Subproject: 1,506 green tea garden construction in Jiufeng Town). 4) Budgets are being prepared for construction contracts FJ-PH-CW-01-02 (Pinghe Subproject: 5,966 mu green oil tea garden construction in Qiling Xiang—infrastructure) and FJ-PH-CW-02 (Pinghe Subproject: 5,182 mu green grapefruit garden and 89 mu green tea garden in Qiling Xiang).

Largely completed road in Dongkeng Village, Banzai Town under the Pinghe Subproject

Wuyishan Zhuzi Eco-agriculture Co., Ltd.: 1) The construction contract of 5,000 mu paddy field—water and ecological revetment infrastructure improvement was signed in June 2019, and it is under construction; field branch roads of 10,690m and ecological revetments of 28,66m have been completed, including the Dajiang branch road (4,737m), Wengdun branch road (874.5m), Dong’an branch road (1,572.5m), Yanglong branch road (380m), Xiwei branch road (947m), Tianwei branch road (666m), Zhangbian branch road (1,424m), Xingxian revetment (1,380m), and Zhangbian revetment (1,486m), with a total investment of 14.09 million yuan. 2) The construction contract of 5,000 mu paddy field—Wanmu lotus pond field was signed in June 2019; it broke ground in December, and had been completed by 60% by the end of December. 3) Bidding for 5,000 mu paddy field—traffic and ecological revetment infrastructure improvement is underway.

Largely completed road and canal in Wufu Town

Ninghua County State-owned Eco-forest Farm Co., Ltd.: 1) FJ-NHLC-CW-06 broke ground in October 2019, and is expected to be completed by 60% by early December 2019 and 100% by early March 2020. 2) FJ-NHLC-CW-07 broke ground in October 2019, and is expected to be completed by 70% by early December 2019 and 100% by late February 2020.

Roads under construction

Datian County Golden Phoenix Agricultural Development Co., Ltd.: 1) The seedling procurement contract FJ-DT-GS-04-01 has been completed; 2) FJ-DT-CW-01-01 (low-yield oil tea garden improvement in Qianping Xiang) is under construction. 3) FJ-DT-CW-01-02 (low-yield oil tea garden improvement in Qianping Xiang) has been completed by 80%, and construction in Huanglongqiao has not begun. 4) Tea garden and low-yield farmland improvement in Jiyang Xiang (Jizhong area) has been completed; 5) low-yield farmland improvement in Taoyuan Town (Xi’an area) has not broken ground. 6) Bidding for tea garden and low-yield farmland improvement in Wushan Xiang (Keshan area) has been completed, and construction has not begun. 7) Tea garden and low-yield farmland improvement in Jiyang Xiang (Shangfeng area) will be bid for in January 2020.

Tractor road and irrigation canal reconstructed in Jiyang Village, Datian County

Fujian Farms Agribusiness Tea Co. Ltd.: 1) FJ-FANK-CW-01-01 (replanting 1,000 mu tea garden and 3,800 mu tea garden road infrastructure construction) broke ground in December 2019, with a construction period of 12 months; 2) Bidding for FJ-FANK-GS-02 ( 500 mu digital (smart) eco-tea garden demonstration) has been completed, and construction is about to begin.

Fujian Luyin Agriculture Co., Ltd.: Construction and procurement for the 5 contracts of field facility improvement, water facility improvement, seedling procurement, shelter forest and ecological conservation, and pest control equipment of Luyin Subproject: 4,460 mu oil tea garden have been completed.

Appendix 3 Fieldwork Records of the Second Round of M&E Longyan Green Land Eco-agriculture Development Co., Ltd.

Longyan Longyu Ecological Industry Development Co., Ltd.

1) Visiting the IA to learn the latest progress and changes; 2) visiting the construction site to ensure that neither LA nor HD is involved; 3) visiting the affected village to learn project preparation, SUDP and GAP implementation, benefits for the APs, and their opinions and suggestions on the Project; 4) reviewing the new land transfer contract, and conducting a sampling survey on the AHs; 5) investigating project benefits for different types of APs; 6) visiting the construction agency to learn procurement, employment, temporary land use and community relationship

Datian County Golden Phoenix Agricultural Development Co., Ltd.:

1) Visiting the IA to learn the latest progress and changes; 2) visiting the construction site to ensure that neither LA nor HD is involved; 3) visiting the affected village to learn project preparation, SUDP and GAP implementation, benefits for the APs, and their opinions and suggestions on the Project; 4) visiting the construction agency to learn procurement, employment, temporary land use and community relationship.

28 Wuyishan Zhuzi Eco-agriculture Co., Ltd.:

1) Visiting the IA to learn the latest progress and changes; 2) visiting the construction site to ensure that neither LA nor HD is involved; 3) visiting the affected village to learn project preparation, SUDP and GAP implementation, benefits for the APs, and their opinions and suggestions on the Project; 4) investigating project benefits for different types of APs; 5) visiting the construction agency to learn procurement, employment, temporary land use and community relationship.

Fujian Xinghe Investment & Development Group Co., Ltd.:

1) Visiting the IA to learn the latest progress and changes; 2) visiting the construction site to ensure that neither LA nor HD is involved; 3) visiting the affected village to learn project preparation, SUDP and GAP implementation, benefits for the APs, and their opinions and suggestions on the Project; 4) investigating project benefits for different types of APs; 5) visiting the construction agency to learn procurement, employment, temporary land use and community relationship.

Ninghua County State-owned Eco-forest Farm Co., Ltd.

1) Visiting the IA to learn the latest progress and changes; 2) visiting the construction site to ensure that neither LA nor HD is involved; 3) visiting the affected village to learn project preparation, SUDP and GAP implementation, benefits for the APs, and their opinions and suggestions on the Project; 4) investigating project benefits for different types of APs; 5) visiting the construction agency to learn procurement, employment, temporary land use and community relationship.

29 Fujian Farms Agribusiness Tea Co. Ltd.

Fujian Luyin Agriculture Co., Ltd.

1) Visiting the IA to learn the latest progress and changes; 2) visiting the affected village to learn project preparation, SUDP and GAP implementation, benefits for the APs, and their opinions and suggestions on the Project; 3) investigating employment and project benefits in detail

Appendix 4 Component Screening Forms  Ninghua State-owned Farm: 844 mu low-yield oil tea garden improvement, land consolidation and cultivation, irrigation and drainage improvement, field road and protection works in Zhongsha Xiang, and Ninghua State-owned Farm: 166 mu low-yield oil tea garden improvement, land consolidation and cultivation, irrigation and drainage improvement, field road and protection works in Zhongsha Xiang in Jicun Xiang

 Fujian Nongken Subproject: 3,800 mu tea garden improvement—land leveling and infrastructure construction

 Wuyishan: 5,000 mu paddy field in Wuyishan—water and ecological revetment infrastructure improvement, and 5,000 mu paddy field—traffic and ecological revetment infrastructure improvement

 Yongding Subproject: 5,565 mu oil tea garden—lowland and water infrastructure improvement

 Pinghe Subproject: 5,050 mu green grapefruit garden construction in Banzai Town— infrastructure, and Pinghe Subproject: oil tea garden construction in Qiling Xiang—tractor and operation roads

 Luyin Subproject: 4,460 mu oil tea garden—water facility improvement, and Luyin Subproject: 4,460 mu oil tea garden—field facility improvement

Appendix 5 Minutes of Land Consultation Meetings

Minutes of Land Consultation Meetings Participants Affected No. IA Time Mode Venue Poor Key points village Participants Women residents Ninghua Explaining County State- Wuceng Village the 1 owned Eco- 2019.7 FGD 45 31 0 Village committee subproject forest Farm and land use Co., Ltd. Explaining Wuyishan Zhuzi Xingxian Village Village the 2 Eco-agriculture Village, 2019.8 37 29 0 meeting committee subproject Co., Ltd. Wufu Town and land use Datian County Jizhong Explaining Golden Phoenix Village, Village the 3 Agricultural 2019.8 Interview 28 16 2 Jiyang committee subproject Development Xiang and land use Co., Ltd. Longyan Longyu Shanxia Discussing Ecological Village, Village Village 4 2019.7 28 6 8 farmland Industry Hukeng congress committee lease Development Town Co., Ltd. Meeting Wangjia room of 2019.8 FGD 8 3 0 Disclosing Fujian Farms Village Gaoban tea the affected Agribusiness garden 5 area, and Tea Co. Ltd. Meeting explaining Tanyang room of 2020.8 FGD 14 0 0 land use Village Tanyang tea garden Fujian Xinghe Dongkeng Explaining Investment & Village, On-site Grapefruit the 7 2019.11 40 18 0 Development Banzai meeting garden subproject Group Co., Ltd. Town and land use

Minutes of Land Consultation Meeting between Longyan Longyu Ecological Industry Development Co., Ltd. and the Shanxia Village Committee

Appendix 6 Survey on Temporary Land Use Among the ongoing construction contracts, only the tractor road constructed by Pinghe CountyFujian Xinghe Investment & Development Group Co., Ltd. in Dongkeng Village, Banzai Town involves the temporary use of about 1.5 mu of land. Interview of Fujian Xinghe Investment & Development Group Co., Ltd., and Dongkeng Village, Banzai Town on construction land and temporary land use Head of Dongkeng Village, Manager Zeng of the contractor, Mr. Lai of the owner During the construction of the 5,050 mu green grapefruit garden in Banzai Town under the Pinghe Subproject, about 1.5 mu of land will be occupied temporarily for a mixing station and a stockyard. The contractor has conducted consultation with about 40 persons, including village officials and villagers. Villagers strongly expect the road to be completed as soon as possible to alleviate their traffic burden (especially the grapefruit harvesting time, when grapefruits were transported by manpower and motorcycle in the past). The results are as follows: 1) The existing opera stage will be used for the mixing station and the stockyard to avoid the waste of land; 2) This land will be offered to the contractor for free and restored after completion. Although the road will be constructed on the existing roadbed, some scattered land will be used permanently as passing bays (usually 1-3 m2 per piece), but this will not affect grapefruit cultivation. Therefore, such land will be donated voluntarily and gratuitously by farmers through consultation. No appeal has occurred to date. Relevant consultation records and photos are as follows:

Pinghe Subproject Pinghe Subproject: 5,050 mu green grapefruit garden in Banzai Town Issues solved through consultation: 1. On-site consultation with village representatives on roadbed occupation by farmers on the 09# tractor road

1) Construction width affected by longan cultivation at k0+63 on the 09# tractor road

2) Consultation on drain basin excavated without authorization at k0+105 on the 09# tractor road

3) Consultation on cultivation on roadbed within k0+95-k0105 on the 09# tractor road

4) Consultation on water retaining wall built on roadbed within k0+256~k0+358 on the 09# tractor road 2. Consultation on roadbed collapse of the 01# operation road

3. Consultation on solution for pesticide tank built on roadbed

4. Consultation on roadbed occupied for cultivation within k0+52~k0+103 on the 02# operation road

Appendix 8 Capacity Building of IAs

During November 7-8, 2019, a training course on project implementation and financial management, and one on social and gender development, land examination, and farmer organization management were offered, involving 60 persons from municipal and county agriculture and rural affairs, and IAs.

All the 8 IAs have appointed members to be responsible specifically for SAP and GAP implementation. They will participate in the whole project implementation process, and promote and record relevant activities to ensure that the Project complies with the ADB policy, and applicable PRC laws and regulations. These members remain unchanged as compared to the previous report.

Summary of Environmental / Social and Gender Development Directors Member Agency Position Gender E-mail Tel Wu Social and Provincial PMO Male [email protected] 591-87800337 Xionghai Environmental Director Environmental / Social Tang Wuyishan Zhuzi Eco-agriculture and Gender Male [email protected] 15859188255 Zhongwei Co., Ltd. Development Director Datian County Golden Phoenix Environmental / Social Yan Agricultural Development Co., and Gender Male [email protected] 13860523334 Jianxue Ltd. Development Director Wang Ninghua County State-owned Social and Gender Male [email protected] 13507552023 Xingtuan Eco-forest Farm Co., Ltd. Development Director Ninghua County State-owned Nie Caikui Environmental Director Male [email protected] 13806966008 Eco-forest Farm Co., Ltd.

39 Longyan Longyu Ecological Qiu Zuxian Environmental Director Male [email protected] 18760003956 Industry Development Co., Ltd. Wang Longyan Longyu Ecological Social and Gender Female [email protected] 15206079658 Xiaojing Industry Development Co., Ltd. Development Director Longyan Green Land Eco- Xie Teng agriculture Development Co., Environmental Director Male [email protected] 18760103030 Ltd. Longyan Green Land Eco- Lan Social and Gender agriculture Development Co., Female [email protected] 15280807871 Fanglan Development Director Ltd. Zhuang Fujian Xinghe Investment & Environmental Director Male [email protected] 13859251517 Bingbin Development Group Co., Ltd. Huang Fujian Xinghe Investment & Social and Gender Male [email protected] 13850581929 Zhenliang Development Group Co., Ltd. Development Director Environmental / Social Zhang Fujian Luyin Agriculture Co., Ltd. and Gender Female [email protected] 15959305778 Xiufeng Development Director Fujian Farms Agribusiness Tea Environmental / Social Lin Jianhua Co. Ltd. and Gender Male [email protected] 13950567783 Development Director

Appendix 7 Due Diligence on Land Transfer, Land Transfer Contract, and Payment Vouchers of Land Rental Interview minutes on the land transfer contract between Longyan Longyu Ecological Industry Development Co., Ltd. and Shanxia Village Wang Xiaojing / Secretary Lin of Shanxia Village Longyan Longyu Ecological Industry Development Co., Ltd. newly entered into a land transfer contract with the Shanxia Village Committee in August 2019. The task force reviewed this contract on the following principles: 1) If the contract is fair and transparent, and follows a consistent and fair procedure, and if the residents involved will receive equivalent or better income, and an equivalent or better living standard; 2) If effective, free and bona fide consultation is conducted with villagers / farmers so that they make an information decision on land use; 3) If the contract is entered into voluntarily, and if villagers / farmers fully understand and agree with its terms and conditions; 4) If villagers / farmers and other land users will not be affected adversely after land use, including any confirmed, fully corrected and documented slight document; 5) If the sum paid under the contract is based on market price and reflects fair compensation (at replacement cost); and 6) If the contract and relevant records are kept in writing, and reviewed by a third party to comply with the ADB policy, and applicable PRC laws and regulations. According to the review: 1) The 600 mu of wasteland is almost uncultivated； 2）This LURT contracts involving collective owned land, during the negotiation village committees conducted farmer representative meetings to discuss and agree the contracts and they include the minutes of meetings and decisions.Signatures were confirmed by 28 farmer representatives 3) The transferred land will not change in ownership and nature, and will be used for vegetable cultivation / as a nursery, which is favored by local residents. 4) This contract is entered into directly with the Shanxia Village Committee. 4 consultation meetings on the proposed transfer were held in 2018-2019, with 112 participants in total, in which over 40% were women. This contract has a lease term of 10 years, and the land will be developed in 3 stages, where the rental rate of Stage 1 is 260 yuan/mu/year, and rental will be paid twice a year. The rental is based on market price and has been received fully by the 87 AHs. 5) Longyu will involve the AHs in cultivation and project management. Vegetable cultivation in Stage 1 will generate about 5,000 jobs, with daily pays of 160-300 yuan. In case of labor shortage, 30% of laborers will be recruited from nearby villages. This will bring long-term employment and stable income to local residents, who therefore expect the Project to be implemented as soon as possible. 6) According to the sampling survey on 31 AHs (36%), an average household has 4.82 mu of

40 land and a transferred land area of 1.72 mu. Such land is wasteland and generates almost no income. After transfer, vegetable cultivation and nursery development will increase land output greatly. 7) Longyan Longyu Ecological Industry Development Co., Ltd. had paid the Stage 1 rental of 81,120 yuan to the AHs. The sample households confirm that the rental is based on market price and has been received fully.

Fig. Contract of LURT in Longyan

Fig. village representative’s authorization letter of LURT Fig. Payment Vouchers of LURT

Fig. authorization letters of LURT

Appendix 9 Information Disclosure Records The IAs and contractors knew through training that they needed to hold a meeting in each village before construction to disclose the project site, range, and starting and ending times. For the 9 construction contracts that broke ground in this period, the IAs disclosed construction information by means of publicity meeting, announcement, etc. Relevant information disclosure and public participation activities are summarized as follows:

Summary of Information Disclosure and Public Participation Activities Participants residents P W articipa P omen nts No. IA Affected village Mode Venue oor Key points

Ninghua County State- Lianshe and Announce Bulletin 1 owned Eco-forest Farm 45 21 3 Project introduction Wuceng Villages ment, board, site Co., Ltd. village Wuyishan Zhuzi Eco- Village Project preparation 2 Wufu Town congress 23 11 2 agriculture Co., Ltd. committee meeting Datian County Golden Huanglong Village 3 Phoenix Agricultural Village, Qianping FGD 22 13 2 Project introduction committee Development Co., Ltd. Xiang Longyan Longyu Shanxia Village, Village Village Discussing farmland 4 Ecological Industry 28 6 8 Hukeng Town congress committee lease Development Co., Ltd. Meeting room of Disclosing the project Wangjia Village 8 3 0 Fujian Farms Gaoban tea area Agribusiness Tea Co. garden 5 FGD Ltd. Meeting room of Disclosing the project Tanyang Village 14 0 0 Tanyang area tea garden Village Longyan Green Land Zhongxin Village 56 18 5 Project publicity committee 6 Eco-agriculture Village Development Co., Ltd. Zhongxi Village 48 15 3 Voting on major matters Village committee Fujian Xinghe congress Investment & Village Mobilization and 7 Dongkeng Village 10 2 0 Development Group Co., committee information disclosure Ltd. Total 254 89 23 Source: statistical from July 2019 to January 2020 Note: Fujian Luyin Agriculture Co., Ltd. completed all construction and procurement tasks in the previous period, so it carried out no information disclosure or public participation activity in the second half year.

Information Disclosure by Fujian Luyin Agriculture Co., Ltd. before Construction

Information Disclosure by Ninghua County State-owned Eco-forest Farm Co., Ltd. before Construction

Fujian Xinghe Investment & Development Group Co., Ltd.

Appendix 10 Interview Minutes with Farmers’ Cooperatives Interview 1 Time: January 7, 2020, 10: 00 am Venue: tea garden office of Fujian Farms Agribusiness Tea Co. Ltd. Interviewer: Li Chenyang, Chen Xiongfei Interviewee: Li Yanzhong, head of Lingtouyang Farmers’ Specialized Cooperative in Tanyang Village

Our cooperative was founded in 2014, and has 50 members, mostly from Tanyang Village. Equity participation with land is practiced, and dividends are distributed at the year end. Our cooperative has 1,000 mu of tea, with an output of about 250 kg/mu.Fujian Farms Agribusiness Tea Co. Ltd.. is our main sales channel. Fujian Nongken Tea Co., Ltd. cooperates with us through the ordering of semi-finished products, raw materials and services. In our cooperation with Fujian Farms Agribusiness Tea Co. Ltd.our income is from the sale of semi- finished products and raw materials. Fujian Farms Agribusiness Tea Co. Ltd provides us with all- round technical support from tea cultivation to tea processing. At least 4 major training courses were organized in 2019, and there are frequent small technical guidance sessions. Our cooperative has signed formal contracts with members, who receive income for supplying raw materials and dividends at the year end. 30% of our employees are women. This proportion is higher during tea picking. We expect Fujian Farms Agribusiness Tea Co. Ltd. to offer more support to increase our income. When farmers can earn money locally, they don’t have to work outside.

Interview 2 Time: January 10, 2020, 10:00 am Venue: construction site office in Xinxian Village Interviewee: Lian Lilai, head of Hanshan Farmers’ Specialized Cooperative in Wufu Town

44 Q: Can you introduce your cooperative briefly? A: Our cooperative was founded in 2011, and had 300-400 member households at most. Currently, our cooperative has over 60 member households, and over 300 non-member households that participate in our activities. Our cooperative has a whole piece of land of over 300 mu, and over 1,000 mu of scattered land. Our main product is white lotus (lotus seeds). We purchase products from member households for unified sale under our brand.

Q: What about your business? A: Our cooperative operates fairly well. Our product was formerly sold in Wuyishan and other parts of Fujian Province. Due to competition from nearby townships, we are developing other markets and sales channels. The income per mu of white lotus is 4,500-6,000 yuan, while that of paddy rice is just 1,500-1,600 yuan.

Q: What are the benefits of the Project for you? A: The Project has great benefits for us. For example, the flood canal in the Project will improve drainage and promote lotus cultivation greatly. For another example, the drainage of cold water in fields is essential to lotus cultivation, and the ecological revetment in the Project is well designed to facilitate drainage.

Q: Does the Project have any negative impact on you? A: It involves neither land occupation nor farmland damage. It is completely beneficial to us.

Q: Did you conduct information disclosure or public participation? What about the effect? A: Information disclosure was conducted, so that we are clear about the Project’s scope and impacts. Our member households were present during construction, and would give minor suggestions, such as where to a drainpipe and where to open an outlet. The contractor accepted these suggestions, and our member households were satisfied.

Q: Has there been any agricultural skill training in the project area? How effective is it? A: The agriculture and technology bureaus have organized many training courses for free. There is an open agricultural platform, on which we can communicate training needs with teachers of agricultural schools and colleges in and out of our province. Our management staff can offer technical guidance to villagers after receiving training. There are 1-2 intensive training courses per annum, and minor training courses every month. There is also free training on cooperative management organized by the agriculture bureau.

Q: How do women participate in cooperative activities? A: They participate fairly well. Major family matters are decided by couples, who also work together.

Q: Is there any poor household in the project area? What are the assistance measures for them? A: There are 11 poor households among our members. We can provide jobs to them. Since many poor residents have physical problems and can hardly do heavy physical labor, we would assign easy tasks to them, such as peeling lotus seeds. In 2019, any poor resident who worked for us received 3,900 yuan.

Q: Do you have any other suggestion for the Project? A: No. I expect the Project to be completed as soon as possible to help us improve our industry.

Appendix 11 Local Agricultural Skill Training Records

From July to December 2019, training on cultivation skills, startup, seedling care, etc. was offered to 3,418 persons in total, including 1,297 women (38%) and 400 poor residents (40%12%). Since project inception, skill training has been offered to 4,448 persons in total, including 1,795 women (40%) and 471 poor residents (11%), as detailed below:

45 Local Training Activities Participants residents P W articipa

County P omen Township / nts IA / city / Time Agency Participants oor Topic village district

Jicun Xiang /

Ninghua Ninghua Migrant County Wuceng, 2019,7-11 Eco-forest Farm 550 359 50 Oil tea cultivation County State- workers Lianshe owned Eco- Jicun Xiang / forest Farm County forestry Managers, Oil tea and medicinal Wuceng, 2019.04-11 485 292 30 Co., Ltd. bureau farmers plant cultivation Lianshe

Jiaocheng District Jiaocheng Fujian Luyin Head of Construction care, 2019.7 Agriculture Co., Badu base, 15 6 `0 hoeing, etc. Ltd. workers Fujian Luyin Head of Agriculture Co., Badu Town Luxin Farmers’ Badu base, Seedling cultivation, and Ltd. 2019.8 Specialized workers, 24 9 2 care before and after Cooperative supervising cultivation agency Longyan Yongding Yongding

Longyu District Longyan Forestry Ecological Hukeng Town 2019.12 Research Farmers 50 46 33 Oil tea cultivation Industry Institute Development Co., Ltd. Longyan Green Shizhong Town 19.9.9 Green Land Farmers 96 36 20 Vocational skills District Land Eco- Xinluo Shizhong Town 19.10.14 Green Land Farmers 110 25 20 Agricultural skills agriculture Shizhong Town 19.11.13 Green Land Women 150 150 40 Infant care

Development Poor Incentive poverty Shizhong Town 19.12.15 Green Land 50 15 50 Co., Ltd. residents alleviation Safe pesticide Guangping Town 2019.6.31 Farmers 63 6 2 application for tea Guangping Town 2019.7.5 Farmers 54 12 3 Tea pest control Gongqiao Village 2019.7.11 Farmers 61 7 7 Green plum fertilization Green plum pesticide Gongqiao Village 2019.7.12 Farmers 61 8 5 application Guangping Town 2019.7.20 Farmers 64 8 4 Paddy rice fertilization Paddy rice pesticide Guangping Town 2019.7.21 Farmers 45 5 6 application

Datian County Datian Pingshan Xiang 2019.7.29 Farmers 66 10 2 Oil tea cultivation Datian County Pingshan Xiang 2019.7.30 Datian County Farmers 65 11 2 Oil tea processing Golden Golden Phoenix Phoenix Selenium-rich oil tea Pingshan Xiang 2019.8.9 Agricultural Farmers 43 4 7 Agricultural cultivation Development Development Selenium-rich oil tea Pingshan Xiang 2019.8.10 Co., Ltd. Farmers 86 11 6 Co., Ltd. processing Selenium-rich vegetable Pingshan Xiang 2019.8.17 Farmers 49 11 2 cultivation Selenium-rich vegetable Pingshan Xiang 2019.8.19 Farmers 51 5 6 processing Selenium-rich vegetable Pingshan Xiang 2019.8.25 Farmers 51 5 7 soil fertility improvement Selenium-rich vegetable Pingshan Xiang 2019.8.26 Farmers 56 14 5 green control Greenhouse vegetable Chengguan 2019.9.3 Farmers 56 14 4 cultivation

46 Greenhouse vegetable Chengguan 2019.9.4 Farmers 56 14 4 marketing Greenhouse fruit Wuling Xiang 2019.9.18 Farmers 58 15 2 cultivation Greenhouse fruit Wuling Xiang 2019.9.19 Farmers 59 14 4 marketing Greenhouse fruit Wuling Xiang 2019.9.18 Farmers 59 14 5 cultivation Greenhouse fruit green Wuling Xiang 2019.9.19 Farmers 59 14 3 control Gongqiao Village 2019.10.9 Farmers 59 13 2 Green plum cultivation Gongqiao Village 2019.10.10 Farmers 51 5 3 Green plum processing Guangping Town 2019.10.21 Farmers 52 5 5 Passion fruit cultivation Passion fruit green Guangping Town 2019.10.22 Farmers 55 5 6 control Passion fruit output Guangping Town 2019.10.23 Farmers 52 5 7 boosting Passion fruit fertility Guangping Town 2019.10.24 Farmers 56 14 5 improvement Ginger harvesting and Pingshan Xiang 2019.12.17 Farmers 57 14 6 storage Pingshan Xiang 2019.12.18 Farmers 61 7 8 Ginger marketing Pingshan Xiang 2019.11.15 Farmers 66 10 7 Ginger cultivation Pingshan Xiang 2019.11.16 Farmers 64 8 8 Ginger impurity removal Tea garden / Tanyang tea Tanyang Village 7/1/2019 cooperative 14 0 0 Tending garden staff Tea garden / Autumn tea production Wangjia Village 7/19/2019 Nongken Group cooperative 20 5 0 management staff Luojiang Sub- Fu’an District Tea Fujian Farms 2019/10/26 Farmers 29 25 5 Tea cultivation skills district Bureau Agribusiness Fu’an District Tea Tea Co. Ltd Xiaoliu Village 2019/10/26 Farmers 28 21 7 Tea cultivation skills Bureau Tea garden / New tea variety Fu’an District 11/29/2019 Nongken Group cooperative 44 16 0 cultivation staff Tea garden / Wangjia Village 12/17/2019 Nongken Group cooperative 18 4 0 Tea marketing staff

Appendix 12 Employment Statistics of Contractors From July to December 2019, the Project generated about 6,157 jobs, including 19 permanent and 6,138 temporary ones, including 4,229 women and 673 poor residents. Since project inception, 6,397 jobs have been offered in total, including 4,324 women and 725 poor residents. Temporary laborers will receive a pay of 150-200 yuan per day. Men and women will receive equal pay for equal work. See the table below.

Statistics of Employment under the Project Average Number of Number of Poor Average District / Women daily pay No. IA permanent temporary residents daily pay county employed of women jobs jobs employed (yuan) (yuan) Ninghua County State-owned Ninghua 4020 2412 150 150 1 Eco-forest Farm Co., Ltd. County 1800 1300 580 150 150 Wuyishan Zhuzi Eco- Wuyishan 2 50 27 2 150 150 agriculture Co., Ltd. City

47 Longyan Longyu Ecological Yongding 3 Industry Development Co., 100 400 80 120 120 District Ltd. Datian County Golden Phoenix 0 68 42 6 160 145 Datian 4 Agricultural Development Co., County 0 77 39 5 160 145 Ltd. Fujian Xinghe Investment & Pinghe 5 14 20 6 0 400 400 Development Group Co., Ltd. County Fujian Farms Agribusiness Fu’an 6 5 3 3 0 180 180 Tea Co. Ltd District Total 19 6138 4229 673 1470 1440

Employees under the Project

Appendix 13 Interview Minutes with Other Beneficiaries Time: January 7, 2020, 4:00 pm Venue: oil tea garden of Fujian Luyin Agriculture Co., Ltd. (Badu base) FGD participants: Lei Yongsheng, Lei Shide, Lan Yalei (female), Lei Guiyi (female), Lei Shenggong, Lan Aizhu (female), Lei Lanyi (female), Lan Dehong (female) Interviewer: Li Chenyang, Chen Xiongfei Recorder: Li Chenyang

Q: What are the benefits of oil tea cultivation of Fujian Luyin Agriculture Co., Ltd. for you? A: The greatest benefit is that we can find a job locally, with a daily pay of 150 yuan. Over 10 workers are working here, all doing farm work. In the busy season, there are at most tens of workers here, mostly villagers from nearby villages. It is not easy to find a job here. It is good to increase income by working here without working outside.

Q: What is the proportion of female workers? Does the Project have any special benefit? Woman representative A: About half of the workers here are women, who are equally paid. Many men are working outside, and those staying are mostly women. Agricultural income is low, and there are many difficulties for us to work outside. Therefore, it is good to us to do such a job here.

Q: Many facilities are improved under the Project, such as tractor roads and water facilities. What are the benefits of these works?

48 A: The greatest benefit is from the tractor road. This place is far away from our homes, and it takes a long time to come here on foot. Therefore, we have to get up early in the morning to work here. After the tractor road is improved, it will save over 0.5 hour. A: In addition, the tractor road is not only used for this oil tea field, but can also be used by passers-by. A: There is a pond in the front. It is not only used for oil tea trees, but can also be used to irrigate our own farmland. The pond is valuable for this mountain area.

Q: Does the farm offer skill training to you? How effective is it? A: A training course was offered before the beginning of work, and there is much guidance at ordinary times. We think the training is effective, especially for those dealing with oil tea cultivation.

Q: Do you have any appeal? Who can you resort to? A: We have no appeal about the Project. As we just said, the Project provides jobs to us, and improves our roads and irrigation facilities, so we all support it. If we have any trouble at work or life, we would resort to Mr. Ye, who is kind and responsible.

Key informant interview: Time: January 8, 2020, 2:00 pm Venue: Wuceng Village Committee, Jicun Xiang, Ninghua County Interviewer: Li Chenyang Interviewee: Wu Ruiyu, Secretary of Wuceng Village

150 mu of land in our village has been transferred, and a land transfer contract was signed with the forest farm in 2012. 80% of the rental is paid to the group (16 yuan/mu), and 20% to the village. Rental is paid once every 3 years at a time. A road upgrading work under the Project passes through our village. This road is good to us in that it passes through our main water supply system, and benefits villagers of 3 villages greatly. Our village has a registered population of 1,856 and a resident population of over 1,100. This road involves extensive farmland. It was formerly rugged. After its improvement, villagers of 4 groups can go farming conveniently. This road has no negative impact, and villagers support it strongly. Oil tea cultivation will be extended later. The forest farm and the government have organized many agricultural skill training courses, including oil tea cultivation and pest control. Agricultural skill extension will have a strong demonstration effect, and attract many farmers to deal with more profitable oil tea cultivation. Oil tea cultivation area will surely increase in the next few years, because bamboos on woodland have deteriorated. Through oil tea cultivation, farmers will have much more income, and enjoy many other benefits, such as countryside revitalization and employment promotion. Rural population is declining because rural areas are short of projects and jobs. Oil tea cultivation will create many jobs. When farmers stay here, some social problems will be alleviated, such as left-behind children and rural old age support. We hope to introduce skills to retain more laborers. Currently, women participate in project activities fairly well. Those staying in the village are mostly village officials, women and old people. The 150 mu of transferred land involves 9-10 poor households, all of which are no longer poor households now. They receive MLS benefits from the government, and some of their members do temporary jobs under the Project, such as hoeing and fertilization. There has been no appeal about the Project, because it has great benefits for us, and is extensively supported. Villagers would file appeals with village groups, and such appeals would be handled actively.

Time: January 10, 2020, 9:30 am Venue: Xingxian Village Committee

Participants: Zhang Zidong (village secretary)

49 Liu Yayan (village CPC branch member) Ye Shengrui (village CPC branch member) Wang Gaolin (village committee member) Wang Biqin (village committee member)

What are the local benefits of the Project? In our village, the Project mainly involves infrastructure construction, which is highly beneficial to agricultural production and tourism, including field roads, ecological embankments and flood canals.

What local jobs has the Project created? How are women employed? The Project creates jobs during construction, which are available to villagers, including many women. In addition, high-value white lotus cultivation after project completion will also create many jobs, and many women will deal with cultivation and picking.

What about land use? The Project involves no additional land use, because roads are improved on existing roads.

Does the Project have any negative impact on you? No. Improving local infrastructure is beneficial to every villager, and is supported by all villagers. The contractor also operates normatively, and communicates with us actively and timely.

Was there any information disclosure or public participation activity? There is a bulletin board on the construction site. The contractor communicated with us before construction. If temporary road blocking was involved, it would communicate the time and range of blocking with us.

Was there any appeal during construction? As we just said, there has been almost no appeal due to adequate communication. There are some minor complaints, such as lack of support for temporary road blocking. However, villagers would support it through careful explanation.

Do you have any opinion on or expectation for the Project? No. We expect the Project to be constructed faster to benefit us.

Appendix 14 grievance redress mechanism (GRM) in this project

A grievance redress mechanism (GRM) has been established to prevent and address community concerns, reduce risks, and assist the project to maximize environmental and social benefits.Project agencies (i.e. those directly involved in the project) comprise the PPMO and CPMOs, PIUs, contractors, and village committees. The PPMO is the lead agency responsible for overall management, implementation, and reporting of the GRM. The PPMO social officer coordinates the GRM and will: (i) establish a simple registry system to document and track grievances received (including forms to record complaints and how they have been resolved); and (ii) report on progress of the GRM in semi-annual social monitoring and progress reports to ADB.Project.The flow chart of grievance Redress Mechanism for Social and Environmental Issues as follows:

AP = affected person, EPB = environmental protection bureau, PMO = project management office; PIU = project implementing unit.

Figure 8-1: Project Grievance Redress Mechanism for Social and Environmental Issues

Since information disclosure and public participation activities were conducted extensive at the preparation stage, the APs are highly aware of the Project. No complaints or appeals related to land use, SDAP and GAP to date.