51401-002: Shaanxi Green Intelligent Transport and Logistics

Home , Baota District

Social Safeguard Due Diligence Report

Project Number: 51401-001 May 2020

PRC: Shaanxi Green Intelligent Transport and Logistics Management Demonstration Project

Yan'an Green Urban District Demonstration Subproject

Prepared by Yan’an New District Municipal Public Utilities Co., Ltd. for the Asian Development Bank.

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

Yan'an Green Urban District Demonstration Subproject

Resettlement Due Diligence Report

Yan’an New District Municipal Public Utilities Co., Ltd.

May 2020

CURRENCY EQUIVALENTS (As of 1 April 2020)

Currency unit – Yuan (CNY) CNY 1.00 = $0.141 $ 1.00 = CNY 7.0771

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

NOTES

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

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

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

CONTENTS

1 PROJECT BACKGROUND ...... 1

1.1 PROJECT OVERVIEW ...... 1 1.2 CONSTRUCTION CONTENT ...... 1 1.3 SOCIO-ECONOMIC SITUATION IN THE PROJECT AREA ...... 1

2 PROJECT LAND SURVEY ...... 3

2.1 PURPOSE OF RESETTLEMENT DUE DILIGENCE ...... 3 2.2 METHODOLOGY ...... 3 2.3 STATUS OF PROPOSED LAND...... 3 2.4 FIELD SURVEY PROCESS ...... 3 2.4.1 Impact...... 4 2.4.2 Land acquisition process ...... 6 2.4.3 Compensation for resettlement ...... 6 2.4.4 Resettlement measures for land-expropriated farmers ...... 6 2.5 INFORMATION DISCLOSURE AND APPEAL MECHANISM ...... 7 2.6 SURVEYS OF AFFECTED VILLAGES AND TOWNS...... 7 2.6.1 Survey of social and economic conditions of affected villages and towns ...... 7 2.6.2 Public consultation ...... 9 2.6.3 Questionnaire survey on satisfaction of affected households ...... 9

3 CONCLUSIONS ...... 12

APPENDIX 1 LAND APPROVAL ...... 13

APPENDIX 2 DECREE OF LAND ACQUISITION COMPENSATION POLICY ...... 19

APPENDIX 3 THE FIRST BATCH OF LAND ACQUISITION NOTICE IN 2017 ...... 24

1 Project background

1.1 Project Overview

1. With the rapid development of the national economy in recent years, people's living standards have improved significantly, and people's demand for "clothing, food, housing, and transportation" has increased significantly, which has greatly driven the corresponding development of industries. In terms of housing, with the rapid expansion of China's real estate market, the home building materials industry has also experienced unprecedented development, and the storage of home building materials has also become a major problem that needs to be solved urgently; In terms of food, China's current consumption of food such as grains, oils, fruits and vegetables is huge, and the demand for its storage space is also huge, which has brought unprecedented opportunities to the development of warehouse logistics.

2. Vigorously developing the construction of logistics parks is a requirement of the "Thirteenth Five-Year Plan" of Shaanxi Province; it is an important part of integrated freight system and modern logistics information platform of Shaanxi province; it is also an important part of economic and social development, modern logistics industry, and the orderly operation of road cargo transportation functional facilities of Yan’an city ,which has certain public welfare property.

1.2 Construction Content

3. Yan’an New District Municipal Public Utilities Co., Ltd is the project implementation entity for the Yan'an Green Urban District Demonstration subproject.

4. The planned land area of Yan’an green urban district demonstration subproject is 255,516.25 m2 (383.27 mu), and the total construction area is 314,172.45 m2. Of which：

5. (1) The total planned land area of the Daming Palace Water Conservancy and Logistics component is 57,184.45 m2 (85.78 mu). The construction content includes building materials storage, cold storage, underground garages, and comprehensive buildings.

6. (2) The planned total land area of the Hetaoshuta Logistics Park component is 151,325.6 m2 (226.98 mu). The construction content includes building materials storage, grain, oil and foodstuffs and daily necessities storage, cold storage and integrated service buildings.

7. (3) The planned total land area of the logistics area of the Type B bonded area component is 47,006.2 m2 (70.51 mu). The construction content includes single-layer bonded warehouse logistics, multi-layer bonded warehouse logistics, cold chain storage center, rough processing room, comprehensive service center, customs office building. And underground warehouses.

1.3 Socio-economic situation in the project area 8. The construction site of this project is located in Baota District, Yan’an city, Shaanxi Province. The superior authority is the Management Committee of Yan’an New District. 1

9. Yan'an City is located in the northern part of Shaanxi Province, in the middle reaches of the Yellow River, between 35 ° 21 ′ ~ 37 ° 31 ′ north latitude and 107 ° 41 ′ ~ 110 ° 31 ′ east

1 Yan'an New District Management Committee is an agency of Xi'an City and performs management and development functions. Baota District is an administrative division. 2

longitude, where is in the mid-south region of the Loess Plateau, and is 371 km away from Xi'an in the north. It has jurisdiction over 2 districts, 11 counties, 16 subdistrict offices, 84 towns, and 12 townships.

10. Yan'an New District is located in the north of Qingliang Mountain, surrounded by mountains, facing the Yanhe River, overlooking the pagoda, with a controlled area of 38 km 2 and a planned construction area of 25 km2. The plan adheres to worldwide vision, international standards, local characteristics, and high point positioning. Main functions are public services, financial commerce, education and scientific research, and high-tech industries.

11. Baota District is located in the northern part of Shaanxi Province, and is known as "the main area of the Qin land" and "key place of fort ". It has jurisdiction over 9 towns, 4 townships, 5 urban street offices, 320 administrative villages, and 50 urban and rural communities.

Table 1: Social and economic situation of the project area (2019) Serial Project Unit Yan’an Baota District number 1 National Land area km2 36712 3556 1.1 Cultivated area ,000 mu 5555.6 635.3 2 Total population ,000 people 2340.9 471.8 2.1 Male population ,000 people 1215,3 238.3 2.2 Female population ,000 people 1125.6 233.5 3 GDP CNY hundred million 155891 32895 3.1 Primary industry CNY million 13807 1643 3.2 Secondary industry CNY million 92597 11702 3.3 Tertiary Industry CNY million 49488 19550 3.4 GDP per capita CNY per capita 68940 88586 per capita disposable income 4 CNY per capita 32226 37301 of urban residents per capita disposable income 5 CNY per capita 10786 10658 of rural residents

2 Project Land Survey

2.1 Purpose of Resettlement Due Diligence

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

2.2 Methodology

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

2.3 Status of proposed land

14. The land to be allocated to this subproject is 383.27 mu of state-owned land in the Yan'an New District. The land acquisition was completed in 2014 ~ 2017 and have been converted to state-owned land. Approval of land acquisition and conversion of collective land to state-owned construction land is presented in Appendix 1.

15. At present, the PMO has submitted the pre-examination form of the state-owned land “biding, auction, and listing” for all required land to local natural resources bureau, but affected by COVID-19, it is expected to begin the “biding, auction, and listing” procedure in June 2020 and the certificate of state-owned land use will be issued to the PIU by local government in September 2020.

2.4 Field survey process

16. In December 2019, the resettlement DDR team visited the proposed sites, interviewed the APs and held a consulting meeting with the APs.

2.4.1 Impact

1. Impact of land acquisition

17. According to the field investigation, among the 383.27 mu land, 87.83 mu was acquired from Qiaogou Community (Jinta Village) in Qiaogou Subdistrict of Baota District, 68.34 Mu was acquired from Shilipu Village (Gaojiagou Village), and 226.99 mu was acquired from Nianzhuang Village (Hetaoshuta Village) in Liqu Town2. Among them, there are 134.64 mu of forest land, 34.14 mu of garden land, 85.32 mu of grassland, and 129.06 mu of unused land. The acquired land was hillside or barren slope. The forest land was natural forest or ecological forest. Wild walnut trees were scattered on the garden land. No cultivated land was acquired. Land acquisition didn’t affect the local farmer’s income, and the AHs got additional cash benefits.

Figure 1:-Project Sites

18. Demolition of residential houses is not involved. The impact of land acquisition is shown in the table below:

2 Jinta Village was merged into Qiaogou Community, Gaojiagou Village was merged into Shilipu Village, Hetaoshuta Village was merged into Nianzhuang Village. 5

Table 2: Statistics on the impact of collective land acquisition Affected land acquisition (mu) situati on of handli Land Pre Curre ng acqui sen nt Affe Affect Affe Fe State- sition t Land Subpro cted For ed cted mal owne appr Unu Lan use jects Villa est- Gar Gras Sub house peo e d oval sed- d right ge lan den sland total holds ple Aps Land and land typ owne d Use time e r Right Certifi cates Stat The e- PIU is 78. 19.9 103. own expec 2014 0 4.9 5 15 6 64 6 5 ed ted to Nia tran get n sfer the New zhu Stat state- Distri ang e- owne ct 34. 33.3 123. own d land 2017 56 0 5 15 6 Bure Yan'an 14 5 49 ed use au of Green tran right Yan'a Urban sfer Septe n District Stat mber Natur demon Villag e- 2020 al stration Shili 65.3 47.5 87.8 e own 2015 0 0 \ \ Reso pu 6 8 3 collec ed urces tive tran Bure sfer au Stat Villag e- Qia 25.1 43.3 68.4 e own ogo 2015 0 0 \ \ 1 4 5 collec ed u tive tran sfer 134 34. 85.3 129. 383. Total 5 15 6 .64 14 2 17 27

2.4.2 Land acquisition process

19. The compensation standard for land requisition is based on the notice issued by the People's Government of Yan'an City on the “Implementation Plan for the Acquisition and Resettlement of Houses in the Renovation Project of Shanty District in Yan'an New District and Luyi Area Reconstruction Project” (Yan Zheng Han [2014] No. 76) The provisions in the document are implemented. Terrace land: CNY 20,000 to 30,000 per mu（ Forest-land, Garden and Grassland）, and hillside land (Unused land):: CNY 10,000 to 15,000 per mu.

20. The forest land is all natural forest or ecological forest land. The grasslands are natural grasslands. The compensation of unused land was conducted according to the standard of hillside land. Compensation was made on the basis of terrace except for unused land. Ground attachments such as trees, seedlings or nurseries are compensated according to Yan Zheng Han [2014] No. 76 document.

21. One or two months before the implementation of land acquisition, the relevant government departments, Xiaoli Village and Xigaomiao Village Committees held village meeting. All farmer representatives (50% are the female) attended the meeting. The theme is to discuss the land acquisition compensation rate and how to allocate the compensation. The representatives of the 3 villages agreed to the land acquisition framework. Then, the relevant government departments issued a land acquisition announcement in the affected villages, and the government's land acquisition department signed a land acquisition agreement with the village committee. The compensation was paid to the Aps and the collective committees.

2.4.3 Compensation for resettlement

22. The 6th batch of land acquisition of Yan’an New Zone in 2014 involved 103.5 mu of land in Nianzhuang Village, and compensation for land acquisition was completed in 2014. The second batch of land acquisition of Yan’an New Zone in 2015 involved 156.17 mu of land in Qiaogou Community and Shilipu Village. Compensation for the land acquisition was completed in 2015. The first batch of land acquisition of Yan’an New Zone in 2017, the land acquisition compensation for the 123.49 mu of land in Nianzhuang Village involved was completed in 2017.

2.4.4 Resettlement measures for land-expropriated farmers

23. Before land acquisition, the main income source of affected households is the non- agricultural jobs and sideline industries. Yan'an New District has developed rapidly in recent years, increasing employment opportunities. During the survey, it’s introduced all APs are working in the enterprises nearby. The average salary of them is about 3,500 yuan per month, which is higher than before. 24. Accompany with the development of urbanization, all APs have been included into the endowment insurance system.

25. And along with the development of urbanization, more and more farmers’ land have been acquired in Baota District. To help the land-loss farmers reemployed and resolve their livelihood, Baota Districted conducted "employment trainee" project and "entrepreneurship leadership plan" for all land-loss farmers at free, fully implement the support policy, and consider the employment and entrepreneurship of landloss farmers and strengthen the labor transfer and the development of public welfare posts, and gradually expand the coverage and application of "one post with two 7

assists". In 2019, more than 4,500 land-loss farmers were employed in cities and towns, and the registered unemployment rate in cities and towns was less than 3.9%.

Figure 2: Nanny Skills Training Course for Land-expropriated Farmers conducted in 2018

2.5 Information disclosure and appeal mechanism

26. According to national laws and local government regulations, before the land acquisition, a land acquisition announcement was issued. For the land acquisition notice, please refer to Annex 3.

27. According to the results of interviews with representatives of the affected households and the records of the relevant departments of the Yan'an New District Management Committee, no appeals occurred during land acquisition.

2.6 Surveys of affected villages and towns

2.6.1 Survey of social and economic conditions of affected villages and towns

28. According to the investigation, the female population of the three affected villages accounts for 49.3%, the labor force accounts for 54.4%, the per capita cultivated land is 0.62 mu. The income resource of the farmers is mainly from industry avocation and the income from agriculture is relatively less.

Table 3: Statistical survey of the socio-economic situation of the village in 2019 Affe Poor households Low-income family Per cte cap d ita Fem dist Culti Total Total La Fem Fem net ale Total Total Total Total rict vate hous popu bor ale ale inc popu hous popu hous popu Villag d ehold latio for popu popu om latio ehold latio ehold latio e / area s n ce latio latio e of n s n s n Com n n far munit me y rs CN Per Y Hous Pers Pers Hous Pers Pers Hous Pers Pers mu so per ehold on on ehold on on ehold on on n yea r Bao Nianz 58 101 ta huan 780 364 1041 505 0 0 0 2 5 3 2 60 g Qiaog ou 22 1350 4050 1993 122 com 230 32 30 85 45 5 14 6 0 0 3 45 munit 3 y Shilip 85 116 280 554 2134 1085 3 7 3 1 2 1 u 9 55 23 1441 4367 2152 121 Total 1290 76 33 92 48 8 21 10 8 5 3 66 4 9

2.6.2 Public consultation

29. In December 2019, a public consultation activity was conducted in Shilipu Village Qiaogou Community and Nianzhuang Village. The number of participants was 30, including 11 women. The main consultation results are as follows: 1. Through interviews with farmers to verify the land status before acquisition. 2. The farmers participated in the consultation did not complain about the resettlement work, and verified that the resettlement compensation and resettlement were implemented according to policies. 3. The farmers participated in the consultation confirmed that land acquisition announcement and related policies were disclosed in the village. 4. Some farmers have proposed that after the project is implemented, job opportunities can be provided to local people. The PMO responded that during the construction and operation of the project, job opportunities will be generated, including cleaning, warehouse management, doorman, as well as technicians such as plumbers and electricians and so on. Information of job opportunities will be disclosed.

Figure 3: Site survey and interview

2.6.3 Questionnaire survey on satisfaction of affected households

30. In March 2020, due to the impact of the COVID-19, investigators could use the WeChat mini-program "Investigate Star" to design an online questionnaire when they could not convene a people in the affected villages to make questionnaire survey. Onlien questionnaire links were sent to village leaders on WeChat APP, then village leaders sent them to the affected households to fill in. A total of 46 questionnaires were collected through the Internet. The results of the questionnaire are as follows:

Table 4: Statistical results of the public attitude survey Opinion selection ratio (%) Questions Opinion options 1 2 3 4 1.1 For Land acquisition 1.Satisfied 2. Relatively satisfied 3. No policy and compensation 47.8 52.2 0 0 opinion 4. Dissatisfied standards: 1.2 Distribution of 1.Satisfied 2. Relatively satisfied 3. No compensation for land 54.3 25.7 0 0 opinion 4. Dissatisfied acquisition:

Opinion selection ratio (%) Questions Opinion options 1 2 3 4 1.3 Measures to support / recover livelihoods and 1.Satisfied 2. Relatively satisfied 3. No 50.0 47.8 2.2 0 income after land opinion 4. Dissatisfied acquisition： 1.4 For current production 1.Satisfied 2. Relatively satisfied 3. No 52.2 45.7 2.2 0 and life： opinion 4. Dissatisfied 2 、 Do you know this 1.Yes 2.No 95.7 4.4 \ \ project？ 2.1 If so, how did you know about this project？ 1. Media 2. Announcement 3. Staff 6.5 0 78.3 15.2 propaganda 4.Discussion 3 、 What do you think is 1. Lack of investment 2. Lagging the main problem of local infrastructure construction 3. Lack of natural 43.6 4.3 4.3 47.8 economic development? resources 4. Others

4 、 What is your attitude towards the project 1. Support 2. Oppose 3. It doesn't matter 100 0 0 construction? \

5 、 Do you think this project is conducive to 1. It is beneficial 2. It has a certain promotion 84.8 15.2 0 0 promoting local economic effect 3. It has no effect 4. It is not favorable development? 6 、 Do you think the construction of this project 1. improve 2. have a certain promotion effect will affect family living 76.1 19.6 4.3 0 3. no effect 4. decrease standards?

7 、 In your opinion, the impact of this project on 1. Promoting effect 2. Some effect 3. No 93.5 6.5 0 0 local poverty alleviation effect 4. Unfavorable work is: 8 、 In your opinion, the impact of project 1. Improve 2. Somewhat works 3. No effect 93.5 4.3 2.2 0 construction on local 4. Deteriorating the environment logistics and transportation is: 9、Do you think that the employment rate of this 1. Increase 2. A little effect 3. No effect 4. 97.8 2.2 0 0 project for local residents Decrease will be: 10 、 After the project is implemented, are you or 1. willing 2. unwilling 3. depending on the 95.8 0 4.2 \ your family willing to situation participate in the project construction activities? 11、What do you think are Noise, water quality, air pollution 65.2 \ \ \ the potential social stability Poor management causes safety incidents 8.7 \ \ \ risk factors after the project Decline in living standards 0 \ \ \ 11

Opinion selection ratio (%) Questions Opinion options 1 2 3 4 implementation (optional Conflict of interest between migrants and 15.22 \ \ \ three) local residents Social policy is unreasonable 0 \ \ \ Disturbing people 10.9 \ \ \ Affect traffic 0 \ \ \

31. According to the above statistical results, for the links in the process of land acquisition, 100% of the interviewees think that they are satisfied or relatively satisfied, and there are no dissatisfied affected households.

32. There are 46 interviewees supported the construction of the project; 39 interviewees thought the project was conducive to local economic development; 30 interviewees thought that the project construction could improve family living standards.

33. The opinions and suggestions of the interviewees include: Implement the project as soon as possible, provide local farmers with priority employment opportunities, and pay attention to environmental protection and construction so as not to affect daily life.

3 Conclusions

34. The land has been acquired since 2014 to 2017 which is not anticipation of ADB financing. Approval of conversion of collective land to state-owned land has been approved by the provincial government. No farmland was acquired and land acquisition brought direct cash income to local farmers. The land acquisition and compensation payment were implemented in accordance with the resettlement policies of Shaanxi Province and Yan’an city and have fully consulted with APs. All compensations have been paid in full amount and in timely manner to the affected people. There are no pending land acquisition and compensation issues. The APs are satisfied with the resettlement policies.

35. The state-owned land use right certificate has not been obtained. It is expected that the land will be auctioned in June 2020 through the bidding and auction procedures, and the state- owned land use right transfer contract will be signed in July 2020, and the state-owned land use right certificate will be issued by local government to the PIU in September 2020.

Appendix 1: Land approval

1. Approval for the agricultural land conversion and requisition in Nianzhuang (Hetaoshuta county)

2. Approval for the agricultural land conversion and acquisition in Shilipu (Gaojiagou) and Qiaogou communities (Jinta county)

Appendix 2: Decree of Land acquisition compensation policy

Appendix 3: The first batch of land acquisition notice in 2017