49021-002: Heilongjiang Green Urban

Resettlement Due Diligence Report

April 2021

People’s Republic of China: Heilongjiang Green Urban and Economic Revitalization Project

Prepared by Heilongjiang Provincial Government for the Asian Development Bank. This is an updated version of the draft originally posted in May 2017 available on https://www.adb.org/projects/documents/prc-49021-002-rp-1

CURRENCY EQUIVALENTS (as of 24 February 2021)

Currency unit – CNY CNY1.00 = $0.1448 $1.00 = CNY6.905

ABBREVIATIONS ADB – Asian Development Bank AP – affected persons CNY – Chinese Yuan LA – Land acquisition RP – Resettlement plan

NOTE{S} (i) In this report, "$" refers to United States dollars.

This resettlement due diligence report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section of this website.

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.

A. Introduction

This Resettlement Due Diligence (RDDR), prepared by Jiguan Industrial Park Service Centre as the implementing unit, is about Jixi (Jiguan) District Industrial Park WWTP Construction Subproject (JX-JG-W2), according to the detail design and detailed measurement survey. The RDDR should be read in conjunction with the agreed Resettlement Plan in May 2017, the website is: https://www.adb.org/zh/projects/documents/prc-49021-002-rp-1.

The contract includes (1) new construction of a WWTP with capacity of 10,000 m3 per day, and (2) greening in the WWTP.

The land acquisition, house demolition and compensation involved in this contract were mobilized from April 2019 and completed by end of March 2021. The contract needs actual permanent acquisition area of 48.3073 mu of rural collective farmland, and actual demolition area of rural residential houses of 6,276.755 m2, which affected 9 households with 36 persons. All of them were affected by both land acquisition and house demolition. The land acquisition, house demolition and compensation had been fully implemented in accordance with the Resettlement Plan of this project (May 2017). This report is about due diligence of the resettlement implementation.

The Project Office of Jiguan Industrial Park Service Center, with the assistance of resettlement specialists from the project management consulting company for the project, met with the House Acquisition Office of Jiguan District Government’s Acquisition Brigade, Hongxing Township Government, and Dongtai Village Committee to understand the negotiation process of land acquisition and house demolition, impact scopes, and resettlement measures and compensation policies, grievance redress mechanism, and land acquisition and house demolition results; interviewed with all 9 affected households (AHs), reviewed their compensation agreements signed, learned about the land acquisition, house demolition and compensation process, and determined the resettlement measures for AHs and compensation received. On the basis of these field visits, consultations with the relevant government agencies and interviews with the affected households, this resettlement due diligence report (DDR) has been prepared in March – April 2021.

B. Resettlement impacts identified at the feasibility stage

The 2017 Resettlement Plan (RP) estimated impacts of permanent land acquisition and house demolition of the Jixi (Jiguan) District Industrial Park WWTP Construction Subproject as following.

"The right-way of the wastewater treatment plant (WWTP) covers an area of 3,2351.0259 m2, and the surrounding wall covers an area of 31,450 m2. The land belongs to Group 1 of Dongtai Village, Hongxing Township, Jiguan District. The relevant facilities are all newly-built buildings. According to the preliminary survey conducted, the WWTP needs permanent acquisition of 84.53 mu of collective land in Dongtai Village, which will affect 5 households with 31 persons, and house demolition of 1,354.5 m2, which will affect 13 households with 79 persons.

All sewer lines will be laid directly, and will temporarily affect during construction 49.79 mu of collective non-irrigated farmland land in Dongtai Village, affecting 13 households with 52 persons. There is no HD.”

C. Actual completion of resettlement impact scope

1. Actual Impact Scope of Land Acquisition and House Demolition

The construction content of the Jixi (Jiguan) District Industrial Park WWTP Construction Subproject after the detail design includes: (1) a WWTP with a design capacity of 10,000 cubic meters per day; and (2) greening within the WWTP. The detailed design determines a total land area of 3.2349 hectares (or 48.5235 mu) that need to be acquired for the contract, which is the entire land area of the A-05 plot. Among them, the original new sewage collection pipeline network in the feasibility study report will be implemented by other contracts (some pipe installation has been completed, as presented in C. 3 section for details), and had been dropped out of this contract and the ADB project. The land for greening in the plant is included in the land of the WWTP, not involving new land occupation.

Based on the detailed design and detailed measurement survey (DMS), the subproject involved the permanent land acquisition (PLA) of 48.5235 mu, including cultivated land of 44.3073 mu and collective road land of 4.2162 mu; and house demolition (HD) of 6,276.755 m2, including houses with registration of 858.32 m2 and houses without registration of 5,418.44 m2. Both the PLA area and HD area are the same to those identified in the DMS. The resettlement impacts are compared between feasibility study and detailed design stages, which is presented in Table 1.

Table 1: Comparison of Resettlement Impact Scope in FSR and Detail Design Stages

Detail Actually Village Impact RP Note Design Completed The land plot for the WWTP was not changed in both FSR and detail design stages, so the change in area may be due to calculation error in the RP when PLA Area Dry land 84.53 48.52 48.5235 converted the area from 32,351.0259 m2 to mu as measure unit, and wrote 48.53 (mu) mu as 84.53 mu. The actual affected area includes cultivated land of 44.3073 mu and collective road land of 4.2162 mu. After detail design, 4 more AHs were identified compared with that in RP. Actual AH (HH) 5 9 9 AHs are the same to that in DMS

Dongtai After detail design, one more affected person was identified compared with that in AP (person) 31 32 36 Village of RP. Actual APs are 4 persons more than that in DMS 2 Hongxing After detail design, 4,931.26 m house area was identified compared with that in Township RP. Most of them are structures without registration. Based on detail survey, HD Area (m2) 1,345.50 6,276.76 6,276.76 6,276.76 m2 include 858.32 m2 house with registration and 5,418.44 m2 without registration. AH (HH) 13 9 9 After detail design, 4 less AHs but 47 APs were identified compared with that in AP (person) 79 32 36 RP. All 9 AHs were affected by both PLA and HD. TLO (mu) 49.79 0 -49.79 After detail design, pipeline installation was moved out of the contract AH (HH) 13 0 -13 AP (person) 52 0 -52 The MLS household that was assessed vulnerable during the RP, was no longer Vulnerable AH 1 0 -1 vulnerable based on the DMS.

PLA= permanent land acquisition, AH=affected household, AP=affected person, HD= house demolition, TLO=temporary land occupation

2. Location of the land for WWTP

The land plot required for construction of this subproject is shown in Figure 1. The WWTP is located in Dongtai Village of Hongxing Township, on the north side of Lexin Street in Jixi (Jiguan) Industrial Park. The status before and after the house demolition on this plot are shown in the photos below.

Figure 1: Land A-05 Plot for the Subproject and Location of the WWTP

Status of the Land for WWTP 1 before Status of the Land for WWTP 2 before House Demolition House Demolition

Current Status of the Land for WWTP 1 Current Status of the Land for WWTP 2 after House Demolition after House Demolition

3. Wastewater Collection Pipelines

The subproject originally planned to lay a total of 17.14 km of wastewater collection pipelines, involving TLO of 49.79 mu, affecting 13 households. According to the " Feasibility Study Report on Jixi (Jiguan) Industrial Park WWTP and Supporting Wastewater Pipe Network Project" (April 2017), the subproject originally planned to build a WWTP with a capacity of 20,000 ton/day and install wastewater collection pipeline of 8.48 km (not 17.14 km as mentioned in the Resettlement Plan). Later, taking into account the actual amount of wastewater produced by enterprises in the industrial park and the development of the park, the capacity of 20,000 ton/day was reduced to 10,000 ton/day. At the same time, the length of wastewater collection pipelines was reduced to 2,222 m, including 1,492 m under Lexin Street and 730 m under Qingpi Road. The construction of the main wastewater collection pipelines in the park should be constructed at the same time as the road construction. Therefore, the pipeline construction was removed from the ADB loaned project, and the government funds were used for the pipeline construction. In sum, the construction of the wastewater collection pipelines was not included in the preliminary design of the subproject approved by the Jixi Development and Reform Commission in April 2020.

The wastewater collection pipelines are all laid under the newly built roads in the park, so they were laid together with the road construction, which includes 1,492 m pipelines of Lexin Street and 730 m pipelines of Qingpi Road. The pipelines under Lexin Street connected to the WWTP along Lexin Street on the south of the WWTP. In May 2018, the Jiguan District Government began to build Lexin Street, and the construction was completed in October 2019, and the 1,492 m wastewater collection pipelines under the road was also completed. In May 2016, the Jiguan District Government began to construct Qingpi Road, and the construction was completed in October 2016, and the 730 m pipelines under the road was also completed.

On March 2-3, 2021, the Project Office of Jiguan Industrial Park Service Center met with House Acquisition Office of Jiguan District Government’s Acquisition Brigade, Hongxing Township Government, and Dongtai Village Committee and learned that the land for construction of Lexin Street and Qingpi Road originally belonged to the collective land of Dongtai Village (Group 1 and Group 2) in Hongxing Township. Lexin Street and Qingpi Road are two roads of Jixi (Jiguan) Industrial Park. The land acquisition was implemented in 2015 (Qingpi Road), and May 2018 to November 2019 (Lexin Street). A total of 29 households with 97 people were affected by the PLA of the two roads. The compensation standard for land acquisition is 83,337.5 yuan/mu, and all compensation was paid to the AHs. Before the PLA, the land was mainly planted with corn and soybeans. The two roads didn’t involve any HD. According to the interview with Dongtai Village Committee, it is learned that the compensation has been paid to the affected households in full before in 2016 and 2019, respectively. AHs are satisfied with the compensation standards. AHs still have land to cultivate and have not made any complaints or appeals about the land acquisition. During the due diligence, no outstanding issues requiring special attention were found, and there was no need to plan and implement corrective actions.

Because the AHs live close to the urban area, only 5 km, working in the city or going out for non-agricultural work is the main source of family income, accounting for more than 90% of the total family income. Therefore, the PLA has little impact on their family income, and at the same time, they all participated in the rural endowment insurance. After they received the compensation for PLA, they mainly used it to improve their lives, migrant work, or savings for future life.

Because the pipeline installation was included in road construction contracts of Lexin Street and Qingpi Road, the TLO originally planned for the subproject no longer exists. Qingpi Road was completed in October 2016, and Lexin Street was completed and opened to traffic in November 2019.

D. Resettlement Implementation Process

The Jixi Government started to develop the Jixi (Jiguan) Industrial Park in May 2012. The construction site is in Hongxing Township, Jiguan District, which involves collective PLA and HD in Hongxing Township. The actual time for PLA and HD is gradually carried out in accordance with the park infrastructure construction plan and the enterprise introduction plan. Extensive public participation had been carried out since the early development of the park.

In March 2011, the Jixi Government, through the Hongxing Township Government, preached to residents of Dongtai Village and Hongxing Village involved in the park construction the importance of the park construction to the industrial transformation, social and economic development of Jixi City, the park development plan, and basic policies of PLA and HD, to enable residents to understand the future development and the impact of PLA and HD, and plan their own life paths and methods early.

The park management committee began the preparation for construction of the WWTP in May 2016. After the construction site of the plant was determined, the consultation with the Hongxing Township Government and Dongtai Village Committee on the PLA and HD was conducted. The Hongxing Government and the Dongtai Village Committee expressed their strong support for construction of the WWTP. In January 2017, the park management committee began to prepare the feasibility study report (FSR) of the WWTP, and completed the first draft of the FSR in April 2017. During the preparation of the FSR and the preparation of the ADB project, the park management committee and Dongtai Village Committee negotiated with the AHs on compensation and resettlement due to PLA and HD, and explained the governmental compensation policy. All 9 AHs participating in the consultations expressed their understanding and support for the construction of the project. In December 2018, Jixi City Urban and Rural Planning Bureau officially announced the land use plan for construction of the WWTP.

Photo 1：Announcement on Planned Land Photo 2：Scope of the Land Use for Use for WWTP WWTP

According to the detailed design of this subproject, a DMS of the impact scope of PLA and HD was conducted by Jiguan district government in November 2019. The detailed 7

measurement survey was organized by the Jiguan District Government, led by the Jiguan Industrial Park Service Center, and coordinated by the Jiguan Branch of Jixi City Natural Resources and Planning Bureau, Jiguan District Housing Acquisition Office, and Dongtai Village of Hongxing Township, Jiguan District, and affected households participated. A total of 25 persons of all 9 AHs and staff from relevant government departments participated in the DMS.

Before the survey began, the land acquisition agency organized relevant government department personnel, third-party experts, representatives of affected households, and lawyers and professional measurement surveyors to hold a forum to discuss individual and collective interests of the villagers, related legal issues, work plans of involved staff, specific measurement work processes, and solutions to work problems. The representatives of all 9 AHs participated in the discussion. Affected households were mainly concerned about the accuracy of land measurement, clarification of land boundaries occupied by each household, accuracy of building area measurement and rationality of house structure appraisal. In addition, the Jiguan District Government once again informed the village committee and all AHs of the grievance redress mechanism for land acquisition and house demolition. In November 2019, the land acquisition brigade of Jiguan District Government and the House Acquisition Office of Jiguan District Government’s Acquisition Brigade discussed the detailed measurement survey (DMS) plan for land acquisition and house demolition with Hongxing Township Government and Dongtai Village Committee in an office building of Hongxing Township Government. In the same month, Dongtai Village Committee notified all AHs of the DMS plan. In June 2020, before starting the DMS, the House Acquisition Office convened the AHs and relevant departments to discuss the DMS plan in Dongtai Village Committee Office. In the same month, under the auspices of the House Acquisition Office, the DMS of land acquisition and house demolition was conducted.

Photo 3：Under DMS Photo 4：AHs Participated in the DMS

From April 2019 to August 2020, the Jiguan District Government, together with the villagers’ committee of Dongtai Village of Hongxing Township, Jiguan District, and representatives of affected households discussed land acquisition and house demolition policies, compensation standards, resettlement measures, land acquisition and house demolition implementation plans, and project construction contents, etc., held many consultation meetings or discussion to listen to opinions of various stakeholders. All 9 affected households had attended the consultation meeting. On March 23, 2020, the Municipal Nature and Resource Bureau visited to Dongtai Village Committee to investigate and understand implementation of the "Land Acquisition Plan for the Third Phase of Urban Construction in Jiguan District, Jixi City in 2015", due to the publicity and interpretation of the policies were conducted well by the district house acquisition office, Hongxing Township Government, and Dongtai Village Committee, all 9 AHs have no complaints. On March 30, Dongtai Village Committee confirmed the "Boundary Site Results Table" (coordinates) prepared by Jixi City Land and Resources Survey and Planning Institute. On August 11, 2020, the village committee held a special meeting in the conference room of Dongtai Village, and passed relevant land compensation and land loss insurance issues. The participants in the meeting included members of the village party organization and village committee, representatives of some villagers and representatives of AHs. The villagers committee and representatives of the affected households understand the construction content of the subproject and expressed support 9

for the construction to improve the quality of life of urban residents. Representatives of affected households discussed the compensation policies and standards, and agreed to the policies formulated by the government and the compensation standards of the Resettlement Plan formulated by the subproject. For the resettlement measures of the demolished households, all agreed to monetary compensation. At that time, one AH asked for an excessive compensation of 3 million yuan, which was far higher than the assessed price of 1.59 million yuan. Later, after further negotiation, the compensation was reassessed, and a new compensation of 1.84 million yuan was reached. The AH agreed to the government's compensation standard and compensation agreement, and received the compensation in February 2021.

Photo 5: Discussion Meeting of AHs Photo 6: Discussion Meeting of AHs Held Held by Dongtai Village Committee by Dongtai Village Committee

In July 2020, the Jiguan Industrial Park Service Center signed a land acquisition compensation agreement with the village committee of Dongtai Village of Hongxing Township, as shown in Annex 1. AHs were compensated according to acquired land area and compensation standards. In August 2020, the village committee of Dongtai Village began to sign the agreement with affected households for the house demolition compensation agreements, see Annex 2 and 3. After signing the agreement, the affected households received compensation in September 2020. By January 2021, all 9 AHs signed house demolition compensation agreements, and received the compensation. All 9 AHs chosen monetary resettlement, to use the compensation to buy apartments in the urban area of Jixi City. The resettlement communities in the urban area are equipped with complete living facilities, including water supply, electricity supply, heating supply and drainage system, as well as shopping market, public bus, hospital and school, etc.

During the entire land acquisition and house demolition process, no complaints occurred, and most of the affected people were satisfied with the compensation standards. Only 1 AH hoped to get more compensation. After further negotiations with the village

committee and the Jiguan District Housing Acquisition Office, the AH agreed to the governmental compensation standards and signed the compensation agreement, received the compensation, and has bought new apartment and settled in urban area.

E. Basic Family Conditions of Affected Households

In March 2021, the Project Department of Jiguan Industrial Park Service Center visited to the 9 AHs (a total of 36 affected people) in Dongtai Village, Hongxing Township. They were affected by both PLA and HD. Before the PLA, in addition to contracted farmland, AHs also had collective wasteland reclaimed by themselves. However, in recent years, since most of the labours of the AHs go out to work, non-agricultural income becomes their main income. In addition, local farmers knew about construction plan of the industrial park for a long time, and knew that the cultivated land would be acquired, and their input in agricultural production and operation decreased year by year. Therefore, the family's existing cultivated land mainly grew some vegetables and corn for their family life. The income of the 9 AHs from agriculture accounted for less than 10% of the total household income. With the continuous expansion of land acquisition in the industrial park, the area of arable land for local farmers is becoming less and less. After the PLA of this subproject was completed, 3 affected households have no arable land. None of the households have been identified as vulnerable households. The basic situation of affected households is shown in Table 2 below.

Table 2: Basic Situation of Affected Households

HH PLA Area Family Income Agricultural Farmland by HD Area Name Age Population in 2019 Income Area after 2 Subproject (m ) (person) (10,000 (yuan) PLA (mu) (mu) yuan)

Han xx 46 7 12 1,800 1.425 0 372.55

Li xx 50 5 8 6,400 3.8475 2.9 187.44 Zhang xx 55 3 30 9,000 9.4 4 583.28 Liu x 62 2 20 7,000 7.3485 4 162.75 Wang xx 55 3 5 4,000 2.6828 2 15.6 Han xx 38 2 10 9,500 6.468 2 3495.6 Yang xx 70 5 5 4,500 7.5 5 171.5 Zhang xx 38 3 5 2,500 2.376 0 363.67 Wang x 48 6 12 7,200 3.2595 0 924.365 Total 36 44.3073 19.9 6,276.755 F. Compensation standards and resettlement

Land Acquisition:

The compensation standards for land acquisition and house demolition of this subproject are in accordance with the "Notice of Jixi Municipal People's Government on Announcement of Comprehensive Land Prices for Land Acquisition in Jixi City after the Implementation of Adjustments" (Jizhengfa [2015] No. 47), "Jixi Municipal People's Government Notice on Adjustments and Guidance for Farmers' Pension Insurance Payment Amount” (Jizhenggui [2018] No. 14), and meets the compensation standard in the Resettlement Plan. The comparison of actual compensation standards with those in the RP is presented in Table 3 below.

Table 3: Comparison of Actual Compensation Standards with Those in the RP

Item Unit RP Actual remark To Village To Village LA To AH Total To AH Total Group Group Contracted 36,666 58,33 83,33 25,666.8 11,000.05 25,001.5 Land .85 6 7.5 36,666 23,33 83,33 Non-contracted Yuan/ 0 36,666.85 60,002.5 Land .85 5 7.5 mu 36,666 83,33 Road Land 0 36,666.85 0 83,337.5 .85 7.5 Young Crop 2,200 0 2,200 0 0 0

Brick Brick Simpl HD Brick wood Simple Brick wood concrete tile e yuan/ 240 260 280 2,400 1,800 NA registered m2 Compensation Non-regist / / / 1,200 900 NA ered

The land acquisition compensation is based on the comprehensive land price of the region area, regardless of land type. The comprehensive land price of the area in the RP is 36,666.85 yuan/mu, and the actual compensation is 83,337.5 yuan/mu, which is 2.27 times of that in the RP1. The land acquisition compensation process was first to disburse the compensation to the Group 2 of Dongtai Village. The Group 2 of Dongtai Village distributed directly 53,336 yuan/mu (70% of the comprehensive land price of the area) for the contracted land and 23,335 yuan/mu (28% of the comprehensive land price of the area) for the non-contracted land (self-reclaimed, not included in the contracted land) to the AHs. The compensation for all the road land owned by the group collective was paid

1 The agreed compensation for land included compensation of young crops which was calculated at 2,200 yuan/mu. The agreed compensation works out to at least 2 times more than what was worked out in the RP after discounting for the young crops compensation. 12

to the Group 2 of Dongtai Village as the collective fund, which use is determined by the residents of the village group.

Since the compensation is based on the comprehensive land price of the region area, and the actual compensation standard is much higher than the original planned compensation standard, the young crop compensation (2,200 yuan/mu) is included in the actual comprehensive land price of the area and is not compensated separately. In addition to the compensation for young crops of the AHs in the RP, the compensation for other than the contracted land is paid to the village collective, because this part of the land is of unused land that the village collective has not allocated. However, in fact, for these land reclaimed by the villagers themselves, the land compensation is also given to more than 10 times the compensation rate for young crops. Therefore, these changes have been agreed by all AHs.

House Demolition:

The RP provided compensation standards for HD, mainly based on different house structures. In the actual demolition process, the HD compensation standard is based on the market evaluation price, including losses of all attachments. The compensation based on the market evaluation can purchase apartments with the same structure and construction area in the same location. Therefore, the actual compensation standard is much higher than the standard set out in the RP. For example, for brick-wood structures, the compensation standard in the RP is 260 yuan/m2, while the actual compensation standard for houses with registration is 1,800 yuan/m2. While there is a difference in compensation standards between houses with and without registration, the compensation standard for houses without registration is not only higher than the compensation standard for houses with registration in the RP, but also higher than the market assessed price, which is in line with ADB's full replacement price requirements. Therefore, all AHs have signed a HD compensation agreement, and after receiving compensation, they have all purchased apartments in the urban area.

In addition, the AHs also were paid a moving subsidy of 1,000 yuan/HH, which is much higher than the local average moving fee of 300-400 yuan/time; an award of 4,000 yuan/HH; and compensation for various attachments, such as fences/walls, gates, storage rooms, and wells , and the young crops in the yard.

Resettlement:

For persons affected by the PLA, in addition to compensation for land requisition, according to the actual degree of land loss (the total loss of contracted land is greater

than 80%), farmers’ pension insurance was also provided at 71,511 yuan/person. The subproject provided for a total of 12 eligible persons with the pension insurance fund based on the cultivated land area acquired by the subproject. All three AHs who have completely lost their land have availed the farmer’s pension insurance.

Since Dongtai Village is close to the urban area, since long ago, most of the labourers have worked in urban areas, or gone to other provinces and cities to work, engaged in construction, transportation, self-operated shops, household or community cleaning, etc. The contracted land mainly planted corn or vegetables, mostly for the family’s own consumption, and the average agricultural income is less than 10% of the family’s total income.

From March to May 2019, a total of 9 labourers from 9 AHs participated in the employment training for rural labourers organized by the Jiguan District Employment Bureau, including training in catering, housekeeping services, and industrial enterprise skills.

Therefore, the construction of the subproject has no major impact on livelihoods of the 9 AHs. These families used the compensation money to purchase houses in the urban area, which improved their living conditions and made it easier for their children to go to school in the city; at the same time, it was more convenient for them to continue to work in the urban area or to go out to work. Although they are willing to let their children enjoy education in unban areas, and are willing to work in urban to increase their income, they do not want to change the status of rural residents and are still willing to retain their rural registration (Hukou in Chinese).

Resettlement Cost:

The original planned budget for the PLA, HD and resettlement totalled 9,183,800 yuan, of which the basic cost was 7,985,900 yuan, and the actual PLA, HD and resettlement costs totalled 1,787,93,300 yuan, of which the basic cost was 17,021,150 yuan. The comparison of costs in the RP and actual costs is shown in Table 4 below. Due to the increased compensation standard for the PLA and HD, the actual basic resettlement cost is much higher than the planned budget. Consultations carried out during the due diligence confirmed that the compensation and other measures specified in the budget have already been completed.

Table 4: Resettlement Cost

RP (Cost in Actual (Cost in ‘000 No. Item ‘000 yuan) yuan) 1 Basic cost 798.59 1702.115006 1.1 PLA compensation 309.94 404.382718 1.2 Rural HD compensation 269.1 1224.046688 1.3 Moving allowance 2.6 0.9 1.4 TLO compensation 36.51 0 1.5 Young crop compensation 8.56 0 1.6 Land reclamation cost 14.09 21.33 Compensation for use of 1.7 157.79 51.4556 additional construction land Supporting fund for vulnerable 2 7.99 0 groups 3 Land management cost 31.94 0 4 Pension insurance 0 85.8132 5 Contingencies 79.86 0 6 Total 918.38 1787.928206

G. Conclusion

By the end of March 2021, the land acquisition, house demolition and resettlement involved in this subproject were completed, and the compensation had been paid to all 9 AHs. All AHs have chosen monetary resettlement. After received the compensation, all of them purchased apartments in the urban area, and settled by themselves.

The household incomes of the AHs are mainly from work out of farm, rather than agricultural production. During the PLA and HD, labourers of the AHs received skill and technical training, and continue working in the urban area or going to other provinces and cities.

As of the end of March 2021, no APs have raised dissatisfaction or complaints about the PLA, HD and resettlement. During the due diligence, no outstanding issues requiring special attention were found, and there was no need to plan and implement corrective actions.

Annexes:

Annex 1: Land Acquisition Compensation and Resettlement Agreement for WWTP Project

Translation of Annex 1:

Land Acquisition Compensation and Resettlement Agreement for WWTP Project Construction

Unit Whose Land To Be Acquired: Dongtai Villagers’ Committee of Hongxing Township of Jiguan District (as Party A in the agreement)

Account No. of Unit Whose Land To Be Acquired: 23xx……

Unit Who Acquire Land: Jiguan Industrial Park Service Center (as Party B in the agreement)

Witness Unit: Hongxing Township People’s Government of Jiguan District (As Party C in the agreement)

Due to the construction of Jiguan Industrial Park (Wastewater Treatment Plant) Project, the Party A’s land is to be acquired. Based on principles of voluntary, fair and just, the three parties reached the agreement on land compensation and endowment insurance for persons who lost land:

A. Compensation Standards and Compensation Amount

1. In accordance with the "Notice of Jixi Municipal People's Government on Announcement of Comprehensive Land Prices for Land Acquisition in Jixi City after the Implementation of Adjustments" (Jizhengfa [2015] No. 47), "Jixi Municipal People's Government Notice on Adjustments and Guidance for Farmers' Pension Insurance Payment Amount” (Jizhenggui [2018] No. 14), the payment amount of endowment insurance for farmers who lost land is adjusted from CNY59,150/person to 71,511/person. The standard shall be implemented for farmland acquisition and land acquisition involved the endowment insurance for farmers who lost land in 2018.

2. This land acquisition of a total of 48.5235 mu of Group 2 of Dongtai Village is compensated in CNY83,337.5 yuan/mu (125 yuan/m²×666.7 m²/mu), total compensation amount: CNY4,043,827.18. The amount of the farmers’ endowment insurance is: 11 persons×71,511 yuan/person=CNY786,621, and the total amount paid to Group 2 of Dongtai Village is CNY4,830,448.18.

3. The WWTP project is in a total of CNY4,830,448.18, that is four million eight hundred thirty thousand and four hundred forty eight point one eight.

B. Right and Duty

1. After Party A receive the land compensation, Party A can’t interfere Party B or other units conducting development and construction on the land. Otherwise, any direct or indirect loss caused by construction stoppage, over schedule, shall be paid by Party B.

2. After the agreement is signed, in case of Party B repented, Party B can’t request the compensation from Party A. In case of Party A repented, Party A shall return the double received compensation.

C. Endowment Insurance For Farmers Who Lost Land

Party B shall confirm the number of farmers who participate in endowment insurance as farmers who lost land according to calculation of endowment insurance quota based on the number of mu land acquired, and pay the endowment insurance according to the latest relevant national policies and regulations within one year after all affected households sign the land acquisition compensation agreement.

D. Payment Method

After field survey and confirmation of the land by the three parties, Party B will pay the resettlement fee to the bank account designated by Party A.

E. The Agreement is made in four copies; Party A, Party B and Party C hold one copy each, and Hongxing Township Operation Management Service Center record one copy. The agreement become effective once both Parties sign it.

F. Other issues not covered in the agreement, the three parties will consult supplementary agreement, and have equal legal effectiveness.

G. For any disputes from the three parties, the arbitration is conducted in Jixi Arbitration Committee.

Signed and sealed by Dongtai Villagers’ Committee of Hongxing Township of Jiguan District

Signed and sealed by Jiguan Industrial Park Service Center

Signed and sealed by Hongxing Township People’s Government of Jiguan District

Annex 2: House Demolition Compensation and Resettlement Agreement (2 copies)

Transport of Annex 2:

(Copy 1)

House Acquisition Compensation and Resettlement Agreement

Person Who Acquire House: (Party A in the agreement)

Person Whose House Is Acquired: Contact Phone No.: (Party B in the agreement)

Based on approval by relevant department, Party A will construct the Industrial Part WWTP in Group 2 of Dongtai Village of Hongxing Township of Jiguan District. According to the State Council “Regulations on House Acquisition and Compensation on National Land”, Party A and Party B made following agreement on issues related to the house acquisition compensation and resettlement:

A. Monetary Compensation

Basic House Conditions and Compensation Standards

House with Usage Structure Area Unit Amount House Structure Area Unit Amount Registration Price without Price Registration Brick-wood 80.4; 1200 224,928 16.32; 90.72 Attachment Colour steel shed 514.08m2 X 500 yuan/m2 = 257,040.00yuan … Colour steel house 409m2 233,920.00yuan … … Total compensation (CNY): 806,460.50

B. After signed the agreement, Party B ensures completion of the house demolition on day—month—year. Otherwise, this Agreement has no effectiveness. Party A ensures to pay the compensation fee to Party B on day—month—year. Otherwise, Party A takes relevant legal responsibilities.

C. Property Right Replacement

House House House Unit price Floor cost No. of Unit Floor No. of location area Usage Building apartment

Calculation method Total compensation (CNY):

D. Party A must pay the compensation fee to Party B according to agreed time. If Party B choice the property right replacement, it should calculate the difference. The monetary compensation fee can be used as deduction of that Party B should pay (Party A will give Party B receipt). For the remaining difference that Party B should pay, Party B should pay it one time when the new building is delivered.

E. Acceptation time of Resettlement building that Party A construct estimates in ---month---year. When the building is delayed, Party A need to pay transition fee continually. If Party B’s transition period is over --- months, Party A shall pay the transition fee in double.

F. Once Party B receive moving into the resettlement building, Party A will not pay the transition fee. Party B must complete house registration procedures. Over two months not complete the procedures, Party A has right to arrange the signed apartment, and Party B shall pay any loss due to the delay to Party A.

G. After the resettlement house construction completion, the construction area of the resettlement house that Party B will move into will be determined by actual measurement of the house property right management. Party A and Party B shall follow this agreement to settle payment, return over part and pay lack part. If the real area of the resettlement house is larger than the area agreed house area, Party B needs to pay for the over-area according to evaluated price by an evaluation agency. If the real area of the resettlement house is smaller than the area agreed house area, Party A needs to pay compensation for the lack-area to Party B according to evaluated price by an evaluation agency. For any special issues, both parties will make other agreements.

H. This agreement is made three copies. Party A, Party B and the unit responsible for the acquisition holds one copy each. For any issues not including in the agreement, appendixes can be added, or follow relevant laws and regulations.

Party A (signed and seal)

Party B (signed and seal)

Date: 2020.8.25

(Copy 2)

House Acquisition Compensation and Resettlement Agreement

Person Who Acquire House: (Party A in the agreement)

Person Whose House Is Acquired: Contact Phone No.: (Party B in the agreement)

I. Monetary Compensation

Basic House Conditions and Compensation Standards

House with Usage Structur Are Unit Amount House Structure Area Unit Amount Registratio e a Pric without Pric n e Registratio e Residentia Brick-tile 192 2400 460,80 n Brick-woo 180.5 1200 216,66 l 0 d 5 0 Attachment Young crop 76 m2 X 45 yuan/m2 = 3,420yuan … Well 1 set X 400 yuan/set = 400 yuan … … Total compensation (CNY): 824,403.50

J. After signed the agreement, Party B ensures completion of the house demolition on day—month—year. Otherwise, this Agreement has no effectiveness. Party A ensures to pay the compensation fee to Party B on day—month—year. Otherwise, Party A takes relevant legal responsibilities.

K. Property Right Replacement

House House House Unit price Floor cost No. of Unit Floor No. of location area Usage Building apartment

Calculation method Total compensation (CNY):

L. Party A must pay the compensation fee to Party B according to agreed time. If Party B choice the property right replacement, it should calculate the difference. The monetary compensation fee can be used as deduction of that Party B should pay

(Party A will give Party B receipt). For the remaining difference that Party B should pay, Party B should pay it one time when the new building is delivered.

M. Acceptation time of Resettlement building that Party A construct estimates in ---month---year. When the building is delayed, Party A need to pay transition fee continually. If Party B’s transition period is over --- months, Party A shall pay the transition fee in double.

N. Once Party B receive moving into the resettlement building, Party A will not pay the transition fee. Party B must complete house registration procedures. Over two months not complete the procedures, Party A has right to arrange the signed apartment, and Party B shall pay any loss due to the delay to Party A.

O. After the resettlement house construction completion, the construction area of the resettlement house that Party B will move into will be determined by actual measurement of the house property right management. Party A and Party B shall follow this agreement to settle payment, return over part and pay lack part. If the real area of the resettlement house is larger than the area agreed house area, Party B needs to pay for the over-area according to evaluated price by an evaluation agency. If the real area of the resettlement house is smaller than the area agreed house area, Party A needs to pay compensation for the lack-area to Party B according to evaluated price by an evaluation agency. For any special issues, both parties will make other agreements.

P. This agreement is made three copies. Party A, Party B and the unit responsible for the acquisition holds one copy each. For any issues not including in the agreement, appendixes can be added, or follow relevant laws and regulations.

Party A (signed and seal)

Party B (signed and seal)

Date: 2020.8.19

Annex 3: Record of Disbursement of Land Compensation for WWTP

Translation of Annex 3:

Dongtai Village WWTP Land Acquisition Compensation Disbursement

Record Table

No. Name ID Area with WWTP Compensation WWTP Compensation Total (CNY) Account TL. Signed No. registratio Acquir (CNY58336/mu) Acquir (CNY23335/mu) No. No by n ed for registration ed for (finger Area land Area un-registration print) witho land ut registr ation 1 Zhao XX 23xx 4.00 7.3485 233,344.00 3.3485 78,137.25 311,481.25 43xx… 13xx … … Total 4.00 7.3485 233,344.00 3.3485 78,137.25 311,481.25

(Sealed by) Dongtai Village Finance Supervision Committee

Annex 4: Approval of Land Acquisition for WWTP

Translation of Annex 4:

Construction Land Approval Document

HeiZhengTu (07) [2021] No.051

Notice on Review and Agreement to the 3rd Land Acquisition Implementation Scheme for Rural Land Transferred to Urban Construction Land of Jiguan District of Jixi City in 2015

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Agreed to the 3rd Land Acquisition Implementation Scheme for Rural Land Transferred to Urban Construction Land of Jiguan District in 2015. A total of 3.2349 ha rural land is acquired as urban construction land.

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